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EDA Agenda - 09/10/2025AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, September 10, 2025 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Clint Berglof, Councilmember Tracy Hinz and Mayor Lloyd Hilgart Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Tyler Bevier, Anne Mueller 1. General Business A. Call to Order B. Roll Call 7:00 a.m. C. Consideration of Additional Agenda Items 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving July 9, 2025 Regular Meeting Minutes 3. Public Hearing N/A 4. Regular Agenda A. Consideration of authorizing a License Agreement with Thousand Hills Market, LLC dba Farm & Floral Market for use of the vacant EDA owned site located at 201 Broadway East (PID #155010067010) in connection with Red Truck Pizza (Food Truck) activities B. Consideration of allocating additional dollars in the amount of $179,800 into the Façade Improvement Forgivable Loan Program fund 5. Other Business A. Consideration of Economic Development Manager’s Report 6. Adjournment User: Printed:08/14/2025 - 8:59AM julie.cheney@monticellomn.gov Transactions by Account Batch:00202.08.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-430400 KUTAK ROCK LLP GENERAL EDA LEGAL 130425 299.0008/12/2025 213-46301-430400 KUTAK ROCK LLP BLOCK 34 LEGAL FEES 130425 878.0008/12/2025 1,177.00Vendor Subtotal: 213-46522-431990 NORTHLAND SECURITIES INC 2024 PREP TIF 1-22 OSA REPORTING FORM 130434 1,250.0008/12/2025 1,250.00Vendor Subtotal: 213-46524-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: 213-46529-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: 213-46530-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: 213-46540-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: 213-46541-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: AP-Transactions by Account (08/14/2025 - 8:59 AM)Page 1 Account Number Vendor AmountGL DateDescription Check No PO No 213-46545-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9308/12/2025 44.93Vendor Subtotal: 213-46546-435100 ECM PUBLISHERS INC TIF REPORTING AD IN PAPER 0 44.9208/12/2025 44.92Vendor Subtotal: Subtotal for Fund: 213 2,741.50 Report Total: 2,741.50 AP-Transactions by Account (08/14/2025 - 8:59 AM)Page 2 User: Printed:09/02/2025 - 12:43PM julie.cheney@monticellomn.gov Transactions by Account Batch:00203.08.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-430400 CAMPBELL KNUTSON PA JEFFERSON COMMONS LOT SALE - MS DAYCARE 0 630.0008/26/2025 630.00Vendor Subtotal: 213-46540-465110 GCRE - RIVERTOWN TIF 1-40 PAY AS YOU GO 1ST 1/2 130493 37,762.6508/26/2025 37,762.65Vendor Subtotal: Subtotal for Fund: 213 38,392.65 Report Total: 38,392.65 AP-Transactions by Account (09/02/2025 - 12:43 PM)Page 1 User: Printed:08/14/2025 - 8:58AM julie.cheney@monticellomn.gov Transactions by Account Batch:00201.08.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-433100 US BANK CORPORATE PMT SYSTEMEDAM - Block 52 Webinar Registrations (5) 0 100.0008/15/2025 100.00Vendor Subtotal: 213-46301-434990 US BANK CORPORATE PMT SYSTEMCMMA - Silver Sponsorship 2025 Mfg Tour 0 850.0008/15/2025 850.00Vendor Subtotal: 213-46301-438200 CITY OF MONTICELLO 216 Pine St (EDA - old Finders Keepers consignmt by old DMV) 0 53.8208/15/2025 213-46301-438200 CITY OF MONTICELLO 130 Broadway E. (EDA strmwtr - formerly the Zoo) 7/3/2019 new fee 0 31.5008/15/2025 85.32Vendor Subtotal: 213-46301-443990 US BANK CORPORATE PMT SYSTEMDOMINOS - Pizza - EDA Workshop 0 29.8108/15/2025 29.81Vendor Subtotal: Subtotal for Fund: 213 1,065.13 Report Total: 1,065.13 AP-Transactions by Account (08/14/2025 - 8:58 AM)Page 1 User: Printed:09/02/2025 - 12:42PM julie.cheney@monticellomn.gov Transactions by Account Batch:00204.08.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-431991 DEMVI LLC Parking Lot Maintenance - August 2025 0 213.8608/31/2025 213.86Vendor Subtotal: 213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St 0 18.2308/31/2025 18.23Vendor Subtotal: 213-46301-438100 XCEL ENERGY 101 E 3rd St (216 Pine St) - formerly Finders Keepers 0 20.8408/31/2025 20.84Vendor Subtotal: Subtotal for Fund: 213 252.93 Report Total: 252.93 AP-Transactions by Account (09/02/2025 - 12:42 PM)Page 1 The preceding list of bills payable totaling $42,452.21 was approved for payment. Date: 9/10/25 Approved by:__________________________________________ Hali Sittig - Treasurer MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 9, 2025 – 6:00 p.m. Academy Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Rick Barger, Mayor Lloyd Hilgart, Councilmember Tracy Hinz Commissioners Absent: Treasurer Hali Sittig Staff Present: Executive Director Jim Thares, Community Development Director Angela Schumann, Tyler Bevier, Anne Mueller 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority to order at 6:12 p.m. B. Roll Call 6:12 p.m. Mr. Johnson called the roll. 2. Approval of Agenda None 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Workshop Meeting Minutes – June 11, 2025 C. Consideration of Approving Regular Meeting Minutes – June 11, 2025 RICK BARGER MOVED TO APPROVE THE CONSENT AGENDA. CLINT BERGLOF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. 4. Public Hearing None 5. Regular Agenda A. Consideration of direction related to Farm & Floral Market's requested use of vacant EDA owned Cedar Fair Property for Food Truck (food and beverage) sales Executive Director Jim Thares briefed the EDA about the Business Retention and Expansion (BR&E) tour of Farm & Floral on June 18 which involved a discussion about potential use of the EDA Cedar Fair for Food Truck sales. Mr. Thares said the family- owned and operated business is already using the site for the Food Truck and parking without EDA authorization. Jim showed a concept plan for the proposal and stated it would be best to formalize such an arrangement. Matt and Maci Maier also indicated DR A F T EDA Regular Meeting Minutes – 07/09/2025 an interest in possibly having larger food truck fairs or events with music at this location. Mr. Thares mentioned maintenance of the property would be required and incorporated into a lease agreement. The idea of a nominal monthly fee was discussed as well as grounds upkeep. Mr. Thares recently had conversation with a potential developer buyer who showed interest in the site and cancelled a meeting. Jim Thares noted the visibility of the site amid the downtown corridor and that it will eventually be redeveloped. Lloyd Hilgart spoke to notice timeframe to vacate the property, if for a potential buyer and the documentation at little to no cost for implementation. Factoring the planning process, Mr. Hilgart estimated the duration likely would take at least six months to do anything at the site. He suggested sixty to ninety days if offer to purchase is sufficient notice. JON MORPHEW MOVED TO AUTHORIZE THE EDA ATTORNEY TO DRAFT A LEASE AGREEMENT BETWEEN FARM & FLORAL MARKET, 108 CEDAR STREET, AND THE EDA RELATED TO USE OF THE CEDAR FAIR PROPERTY AS A FOOD TRUCK SALES LOCATION FOR CONSIDERATION AT A FUTURE MEETING. LLOYD HILGART SECONDED THE MOTION. Discussion - Lloyd Hilgert said he personally did not favor housing on the site unless it is a very compelling proposal. Steve Johnson asked if the applicants were present and if they had spoken to their ideas with neighbors. Jim Thares stated no application has been received in this stage of concept. Mr. Johnson spoke to proper noticing to neighboring parcels, especially due to extra noise and activities the site may present. Lloyd Hilgert asked if land use approval is required by Council or Planning Commission. Angela Schumann stated that food truck licenses are issued by City Clerk. Special event permits may require Council review per the nature of the special event since it may require City resources including traffic control and administrative notification if live music is involved. Jon Morphew referenced Rotary’s former annual special event as a similar situation. Steve Johnson asked about the curb cuts along Highway 75 and access via Cedar Street. Jim Thares suggested asking City Engineer Matt Leonard to weigh in at a future meeting to discuss the City’s perspective on infrastructure. Mr. Johnson noted potential traffic congestion and asked who might address the maintenance and cleanup issues on the north side of the property. Jim Thares said the EDA would include site cleanup as a lease term. Steve Johnson said he would prefer a 30-day termination timeframe to be included in a lease versus a longer cancellation notice. Steve Johnson felt that a singular food truck parked on Cedar Street or if on the land itself would be okay though he suggested more thought and review. Lloyd Hilgert suggested a similar parking setup like the liquor store DR A F T EDA Regular Meeting Minutes – 07/09/2025 holds on a weekly basis. Jon Morphew spoke to a 30-day termination notice of a sale, regardless of sale at present time or in the future; and suggested for the EDA attorney to draft a lease agreement for consideration while not specifically agreeing to anything at the property at this time. Lloyd Hilgert spoke in favor of the EDA structuring the site usage and possibly allowing the Farm & Floral food truck to be used and stored on the north edge of the property. At the same time, staff and the EDA should continue vetting future business expansion proposals. Currently, the owners are baking off-site at the Community Center to meet demand with intent to bring all operations back to the Farm & Floral location to potentially visit cooperative initiatives within the community. Jim Thares said a list of activities and maintenance tasks would be drafted into a lease document for EDA members to review at a future meeting. Lloyd Hilgert asked if the parcel should be allowed to be used without a lease. Mr. Thares said he believed it would be helpful to have a written agreement. Lloyd Hilgert noted that current parking spaces are on gravel on this site while the on-street public parking is for business patrons. He believes enacting an agreement may solidify the need to address parking designation and signage to deter parking on the grass and maintenance measures. Steve Johnson asked about the attorney fees to draft the document. Jim Thares said staff suggests the applicant pay for EDA attorney fees. Mr. Johnson added an enacted agreement is not to discourage activities at the site, but for all parties to be aware of the intents and legalities for the land not owned by the user. MOTION REVISED TO INCLUDE SUBJECT TO NEGOTIATION BY STAFF, TERMS TO BE NEGOTIATED SUBJECT TO STAFF APPROVAL CARRIED UNANIMOUSLY, 5-0. B. Consideration of EDA Resolution No. 2025-05 authorizing a First Amendment to Lease Agreement with Civil Engineering Site Design for Continued Use of 118 East Broadway Jim Thares spoke about the first amendment to Lease Agreement for the 118 East Broadway building which expired on June 27, 2025. The intent is to allow the former owner to stay at this location. Mr. Thares pointed out the new lease format through the Amendment is offering 30-day successive renewable lease periods, with a 120-day termination notice. An escrow deposit amount was also included to allow the tenant to deposit funds to cover the property taxes. Lloyd Hilgert spoke in favor of a month-to-month lease with 120-day notice. He noted that not a lot of activity is happening at this time and if a development proposal comes forward, it will potentially take a year to go through all the approval steps. TRACY HINZ MOVED TO ADOPT EDA RESOLUTION 2025-05 AUTHORIZING A FIRST AMENDMENT TO LEASE AGREEMENT WITH CIVIL ENGINEERING SITE DESIGN (SCOTT DR A F T EDA Regular Meeting Minutes – 07/09/2025 DAHLKE) FOR 118 EAST BROADWAY. CLINT BERGLOF SECONDED THE MOTION. Discussion – Tracy Hinz asked for clarification about the business subsidy public hearing. Jim Thares offered information about the statutory requirements as related to the terms of the drafted lease. Jon Morphew asked if the portion the EDA paid as part of the purchase price of the property allowing the applicant to occupy the space rent-free, and whether it was factored into the purchase agreement. Steve Johnson added if in a worst-case scenario, it could be brought forward to public hearing to authorize subsidy. Jim Thares said the EDA can plan on revisiting this discussion in 12 months. MOTION CARRIED UNANIMOUSLY, 5-0. C. Consideration of recommendation related to proposed Affordable Housing Trust Fund Ordinance and specific language related to percent of multi-family affordable standards Jim Thares provided an overview of the Affordable Housing Trust Fund (AHTF) and the recent joint City Council and Planning Commission workshop. He noted a consideration is to discuss ensuring housing aid remains available. He stated that newly drafted City ordinance will be considered by City Council before the end of the month. Mr. Thares explained the three-year timeframe for using the funds from the State. He pointed out the absence of projects at the present time and believes that the formation of an Affordable Housing Trust Fund will ensure that funds remain accessible for the desired uses by the City and the EDA. Angela Schumann also pointed out the reporting requirements per the State housing agencies with a timeline for required spending. Steve Johnson asked if the funding might be used for renovation or as described housing single or multi-family. Angela Schumann spoke about the EDA’s need to suggest a defined minimum percentage of low- and moderate-income beneficiaries in multi-family proposals. Jim Thares said the percentage of benefit could be like the Affordable Housing TIF Statute; either 20 percent or up to 40 percent. Jim Thares noted that the plan is to bring back a resolution to the EDA after the City Council approves the Ordinance, wherein the EDA will acknowledge acceptance of its role through the Housing and Redevelopment Authority (HRA) to administer the Affordable Housing Trust Fund programs. Steve Johnson suggested a future meeting be held to work on the various program ideas and the eligibility requirements. Rick Barger asked about timelines to identify projects. Angela Schumann responded with comments about the MN Housing Finance Agency reporting role on an annual basis. DR A F T EDA Regular Meeting Minutes – 07/09/2025 TRACY HINZ MOVED TO RECOMMEND APPROVAL OF THE PROPOSED HOUSING TRUST FUND ORDINANCE WITH SPECIFIC MULTIFAMILY AFFORDABILITY STANDARDS AS DETERMINED BY THE EDA. CLINT BERGLOF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. Angela Schumann and Lloyd Hilgert exited at 7:13 p.m. to attend the Monticello Orderly Annexation Authority (MOAA) meeting at 7:30 p.m. 6. Other Business A. Economic Development Manager’s Report Mr. Thares provided an overview of the agenda item to the EDA and the public. No action was taken on the item. 7. Adjourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 7:33 P.M. DR A F T EDA Agenda: 9/10/25 4A. Consideration of authorizing a license agreement with Thousand Hills Market, LLC dba Farm & Floral Market, for use of the vacant EDA owned site located at 201 Broadway East (PID #155010067010) in connection with Red Truck Pizza (Food Truck) activities Prepared by: Economic Development Manager Meeting Date: 9/10/25 ☒ Regular Agenda Item ☐ Consent Agenda Item Reviewed by: Community Development Director, Finance Director, Community & Economic Development Coordinator Approved by: City Administrator ACTION REQUESTED Motion to authorize a license agreement with Thousand Hills Market, LLC, dba Farm & Floral Market, for use of the vacant EDA owned site located at 201 Broadway East (PID #155010067010) in connection with Red Truck Pizza (Food Truck) activities. REFERENCE AND BACKGROUND The EDA is asked to consider authorizing a license agreement with Thousand Hills Market, LLC, dba Farm & Floral Market, for use of the vacant EDA owned site located at 201 Broadway East (PID #155010067010) in connection with Red Truck Pizza (food and beverage sales) for seasonal food truck activities. The Farm & Floral Market is located at 108 Cedar Street, just north of the EDA property. During the mid-June Business Retention & Expansion (BR&E) visit to Farm & Floral Market, owners Matt and Maci Maier asked if it would be possible to use the EDA-owned site at the corner of Broadway and Cedar for the purpose of hosting Red Truck Pizza and possibly additional food trucks. Currently, the license agreement is limited to Red Truck Pizza use only. The EDA Attorney has advised that additional license agreements with other individual food trucks would be required for any other additional users. Food truck uses are allowed through a mobile food unit permit issued by the City. Parking is available along Cedar Street on both sides of the street in front of the EDA owned parcel and extending the north past the Farm & Floral Market store. Staff are planning to work with Farm & Formal Market on the parking arrangements due to the deteriorated paving conditions and limitations on the EDA parcel and access considerations at the corner site. The Red Truck Pizza vehicle will be parked at the western end of the 201 Broadway parcel. The Maiers also propose to place several picnic tables near the Red Truck Pizza vehicle to allow patrons an opportunity to sit and eat the food at the site. Garbage cans will also be placed on EDA Agenda: 9/10/25 the site as well. Although this area of Broadway can be congested in the late afternoon, the traffic control lights at River and Pine Street (MNTH #25) will serve as an additional viable exit route. As a notation, food truck licensure in Monticello is limited to 21 days total per year. The Maiers indicated that if the trial food truck use for this season goes well, they would also be interested in using the site again in 2026, possibly expanding the weekly event to include music. That level of activity would likely fall under the City’s special event permit ordinance. A concept layout of the proposed use by Farm & Floral Market is attached to this report. Again, additional food tracks on the site would require other license agreements with the EDA and food truck licensure through the City Clerk’s office. Insurance for site use for Farm & Floral Market’s use of the site for its food truck is a requirement under the terms of the license agreement. In addition, Farm & Floral Market will be responsible for site maintenance including, lawn mowing, removal of garbage and debris and general upkeep for the duration of the license agreement. An escrow deposit of $700 is also required by Farm & Floral Market in the event the City public works staff must perform the identified maintenance tasks The EDA has recently confirmed that the subject parcel is a priority development site among its various land holdings. If a promising redevelopment proposal materializes, the license agreement can be terminated with 60 days’ notice. I. Budget Impact: The budget impact from the consideration of the license agreement is minimal. The estimated cost related to consultation with the City Attorney and drafting of the license agreement document is approximately $1,070 +/-. The legal fees will be invoiced to the Farm & Floral Market as they are the direct beneficiary of the license agreement. II. Staff Workload Impact: City staff involved in this consideration include the Community Development Director, Economic Development Manager, EDA attorney and City attorney. Work tasks include discussions with the Farm & Floral Market owners, drafting the license agreement document and report preparation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: The 2017 Downtown Small Area Plan is an adopted appendix of the 2040 Vision + Plan. The Small Area Plan “envisions a Downtown that is lively throughout the day and into the evening, 12 months of the year. A downtown that serves many purposes for many people – including dining, recreation, celebrating, gathering, shopping and living.” The small investment proposed for the temporary license would support increased vitality in this area of Downtown consistent with plan goals. EDA Agenda: 9/10/25 STAFF RECOMMENDATION Staff recommend that the EDA authorize the license agreement with Thousand Hills Market, LLC allowing use of the EDA owned Cedar Fair parcel for the Red Truck Pizza food and beverage sales activities. While the subject parcel is very visible and eventual development is likely, staff support allowing the interim use for food and beverage sales on a trial basis. SUPPORTING DATA A. License Agreement w Site Map – Food Truck Layout B. Email – Maci Maier, Farm & Floral Market 1 236931v1 LICENSE AGREEMENT (201 Broadway East) THIS LICENSE AGREEMENT ("Agreement") is dated as of the ____ day of _____, 2025 (“Effective Date”) between the City of Monticello Economic Development Authority, Minnesota, a public body corporate and politic organized under the laws of the State of Minnesota, whose address is 505 Walnut Street, Monticello, MN 55362 ("EDA"), and Thousand Hills Market, LLC, a Minnesota limited liability company, with its office at 12925 Prosperity Avenue, Becker, MN 55308 ("Licensee"). The EDA and Licensee are referred to collectively herein as the "Parties" and each individually as a "Party." RECITALS A. The EDA is the owner of certain undeveloped real property located at 201 Broadway East, Monticello, Minnesota 55362 (the "Property"). B. Licensee operates a food truck called Red Truck Pizza (“Food Truck”) from which they sell pizza and related food items. C. Licensee desires to enter upon the Property for the sole purpose of operating its Food Truck. D. The EDA will permit the Licensee to use the Property in accordance with the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing Recitals and the respective covenants, promises, and obligations of the Parties contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: AGREEMENT 1. GRANT OF LICENSE. a. The EDA hereby grants to the Licensee a limited and non-exclusive license to enter into and upon the Property (the "License") solely and exclusively for vehicular access and operation of Licensee’s Food Truck in compliance with the terms and conditions of this Agreement. No other activities shall be conducted on the Property pursuant to this Agreement. b. Licensee acknowledges and agrees that this Agreement creates a limited license only and that Licensee does not, and shall not claim any title, interest, or estate of any kind or extent whatsoever, including, but not limited to any fee, leasehold, or easement interest in the Property by virtue of this License or Licensee's use of the Property in accordance herewith. 2 236931v1 c. Licensee shall be entitled to use the Property for the Food Truck, tables and parking in the locations designated in Exhibit A attached hereto. d. Licensee and Licensee’s agents, employees, contractors, and other authorized parties will have the right to enter upon and use the License Area for Food Truck operation purposes, including all customary uses that may arise out of or be necessitated by that use. The EDA reserves the right to use the Property for all purposes that do not reasonably interfere the Licensee’s rights under this Agreement, including but not limited to issuance of licenses to others for use of the Property. Licensee may not pave, tar, asphalt, grade, place rock, or fill on any part of the Property, remove any vegetation, or construct any improvements with the Property without the EDA’s prior written authorization, which the EDA may authorize in its sole discretion. e. Licensee’s use of the Property is limited to 21 days per year. Licensee shall notify the City’s Community and Economic Development Coordinator at 9:30 a.m. of each day that the Licensee intends to operate a Food Truck on the Property, which notice must be provided at least 3 days prior to the day of use of the Property. If the Licensee does not use the Property on any day that it schedules with the City, Licensee must notify the City’s Community and Economic Development Coordinator at Tyler.Bevier@MonticelloMN.gov by noon of the day of nonuse. 2. TERM AND TERMINATION. a. This term (“Term”) of this Agreement shall commence on the Effective Date and shall terminate one year following the Effective Date. Thereafter, the Agreement shall automatically renew on an annual basis until terminated by either Party as provided in this Agreement. b. The EDA may further terminate this Agreement for any reason and without cause upon seven (7) calendar day written notice to the Licensee. Upon the expiration or termination of this Agreement, the Licensee shall restore the Property to a condition that is at least as good as the condition as of the Effective Date. 3. LICENSE FEE; SECURITY DEPOSIT; EXPENSES AND TAXES. a. The Licensee shall pay licensee fee of One and 00/100 Dollar ($1.00) to the EDA upon execution of this Agreement for the use of the Property. Payment of the access fee shall be made payable to and delivered to the EDA's Community and Economic Development Director at the following address: 505 Walnut Street, Suite 1, Monticello, MN 55362. Payment must include reference to the street address of the Property. b. Licensee shall provide a security deposit with the EDA upon commencement of this Agreement in the amount of Seven Hundred and No/100 Dollars ($700.00) (“Security Deposit”). The Security Deposit shall be held by the EDA as security of the faithful performance by the Licensee of all the terms and conditions of this Agreement to be kept and performed by Licensee. If Licensee defaults with respect to any provision of this Agreement, the EDA may 3 236931v1 use any part of the Security Deposit for the payment of any sum in default, or for the payment of any amount which the EDA may spend or become obligated to spend by reason of Licensee’s default, or to compensate the EDA for any other loss or damage which t he EDA may suffer by reason of Licensee’s default. If any portion is so used, Licensee shall within five (5) days after written demand therefor, deposit with the EDA an amount sufficient to restore the Security Deposit to its original amount, and Licensee’s failure to do so shall be a material breach of this Agreement. The EDA shall not be required to keep the Security Deposit separate from its general funds, and Licensee shall not be entitled to interest on such deposit. If Licensee shall fully and faithfully perform every provision of this Agreement to be performed by it, the Security Deposit or any balance thereof shall be returned to Licensee at such time after termination of this Agreement when the EDA shall have determined that all of Licensee’s obl igations under the Agreement have been fulfilled. c. Licensee shall be solely responsible to report, collect, remit or pay, as may be applicable, any taxes, fees or assessments of any kind arising out of or related to the Permitted Activities. 4. RESTRICTIONS ON USE OF LICENSE. a. Licensee shall not use, bring or permit any hazardous substances, as that term is defined in any local, state or federal law or regulation (“Hazardous Substances”), on to the Property. Licensee shall defend, indemnify and hold harmless the EDA and the City from and against any and all claims, demands, actions, suits, judgments, losses, damages, expenses, penalties, fines, sanctions, court costs, litigation costs, and reasonable attorneys’ fees arising out of or related to Licensee’s possession or use of any such Hazardous Substances on or at the Property. If the Licensee encounters any Hazardous Substances on or at the Property, it shall immediately cease all activities of any kind on the Property and provide verbal and written notice of such conditions to the EDA. Thereafter, the Licensee shall not have access to the Property unless and until the EDA provides written notice granting Licensee such right of access. b. No temporary or portable restroom facilities shall be placed or located on the Property at any time. c. Alcohol service or consumption of any kind on the Property is strictly prohibited. d. Licensee shall be responsible for keeping the Property in good condition on days it operates a Food Truck on the Property at its sole expense. Licensee shall maintain the Property free of trash and other debris. All trash and debris must be removed from the Property on days the Property is used by the Licensee for operations of its Food Truck. e. Licensee shall remove all personal property located on the Property at the end of each day that Licensee uses the Property for operations of its Food Truck. 4 236931v1 f. Licensee shall be responsible for maintenance of the Property including lawn mowing, weed removal, tree trimming and removal of branches and brush as well as removal of chairs, tables associated with the Food Truck usage. The Property must be neat and clean after the conclusion of each day after Foot Truck usage. h. Licensee must comply with all laws, rules, orders, ordinances, regulations and requirements of federal, state, county and municipal authorities pertaining to Licensee’s use of the Property, including compliance with City Code Sections 112.25- 112.29 related to food trucks. i. Licensee shall secure all permits, approvals and licenses required in connection with the Licensee’s use of the Property for its Food Truck operations and shall comply with all laws applicable to such use including, but not limited to, any laws, standards, regulations, and permit requirements relating to environmental pollution or contamination or to occupational health and safety. Further, Licensee acknowledges and agrees that Licensee’s use of the Property for its Food Truck operations shall comply with the code and ordinances of the City of Monticello. j. Licensee must obtain all necessary permits and licenses for operation of the Food Truck on the Property and remain in compliance with all such permits and licenses granted. 5. ENVIRONMENTAL CONTAMINATION. Licensee shall be responsible for any and all spills, release, discharges, or leaks of (or from) environmental pollutants or hazardous substances or materials which the Licensee, its agents, employees, contractors, or invitees has brought or caused to be brought onto the Property; and promptly clean up, without cost to the EDA, such spills releases, discharges, or leaks to the EDA’s satisfaction and in compliance with all applicable federal, state or local statutes, rules or ordinances. Licensee shall indemnify, defend and hold the EDA and its officers, employees, agents and representatives harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses (including without limitation, diminution in value of the Property, attorneys’ fees, consultant fees, and expert fees) that arise during or after the term of this Agreement as a result of contamination by Hazardous Materials. This indemnification of the EDA by Licensee includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by an federal, state, or local governmental agency or political subdivision because of Hazardous Materials present in the soil or groundwater on or under the Property. Without limiting the foregoing, if the presence of any Hazardous Materials on the Property caused or permitted by the acts or omissions of the Licensee or its agents, employees, contractors or invitees results in any contamination of the Property during the term of this Agreement, Licensee shall promptly take all actions at it sole expense as necessary to return the Property to the condition existing prior to the release of any such Hazardous Materials to the Property, provided that EDA’s approval of such actions shall first be obtained. The foregoing indemnity shall survive the expiration or earlier termination of this Agreement an is in addition to all other indemnification obligations provided by Licensee under the terms of this Agreement. 5 236931v1 6. LIENS. Licensee shall not permit any lien or encumbrance upon the Property resulting from its activities thereon. Licensee shall cause the Property to be released from any such lien or encumbrance, whether by posting a bond or other action satisfactory to the EDA, within thirty (30) days of written notice from the EDA. Licensee shall defend, indemnify and hold harmless the EDA from and against any claims, demands, actions, suits, judgments, losses, damages, expenses, penalties, fines, sanctions, court costs, litigation costs, and reasonable attorneys' fees arising out of or related to any such lien or encumbrance. 7. ACCESS TO PROPERTY FOR INSPECTION. Licensee shall permit governmental authorities with jurisdiction over the Licensee’s use of the Property for its Food Truck operations and employees and representatives to enter the Property for the purpose of inspecting or monitoring Licensee’s use of the Property. Licensee shall permit the agents and representatives of any insurance companies that are insuring the Property, the Licensee’s Food Truck operations, Licensee’s access to the Property for the purpose of inspecting or monitoring Licensee’s use of the Property for its Food Truck operations. 8. INDEMNITY AND RELEASE. a. Licensee shall, to the fullest extent of the law, defend, indemnify and hold harmless the EDA, the City of Monticello ("City"), and their respective representatives, officials, employees, agents, attorneys, successors, designees and assigns (collectively the "Indemnitees" and each an "lndemnitee") from and against any and all claims, demands, actions, suits, judgments, losses, damages, expenses, penalties, fines, sanctions, court costs, litigation costs, and reasonable attorneys' fees (collectively, the "Claims") asserted against or incurred by any Indemnitee for injuries to persons and/or entities (including, without limitation, loss of life), for damage, destruction or theft of property, or for any other losses or liabilities that may be sustained directly or indirectly due to the condition of the Property or the activities, operations or use of the Property by Licensee and its successors, invitees, agents, employees, or anyone for whose acts any of the foregoing may be liable, and all those claiming by or through them, and/or for any breach of Licensee's covenants or obligations under this Agreement. b. Licensee hereby and forever releases, waives, discharges and covenants not to sue any Indemnitee from and for all liability, claims, demands, losses and damages on account of injury, including death or damage to property, caused or alleged to be caused in whole or in part by any Indemnitee arising from or related to the entry upon and use of the Property by the Licensee and its successors, invitees, agents, and employees. 9. CONDITION OF PROPERTY; ASSUMPTION OF RISK. Licensee acknowledges that it (a) has physically inspected the Property, and (b) accepts the Property with full knowledge of the condition thereof, without any representations or warranties of any kind from the EDA. Licensee is also fully aware of the risks of using the Property and knowingly assumes the risk of harm (e.g., injury to or death of persons and damage to or destruction of 6 236931v1 property) that may occur while on and about the Property. 10. INSURANCE. Licensee shall at its sole cost and expense obtain and keep in force, during the Term of this Agreement, (i) a commercial general liability insurance policy in an amount not less than Two Million and 00/100 Dollars ($2,000,000.00 per person per occurrence and Five Million and 00/100 Dollars ($5,000,000.00) in the aggregate for bodily injury, including death, and Two Million and 00/100 Dollars ($2,000,000.00) per person per occurrence and Five Million and 00/100 Dollars ($5,000,000.00) in the aggregate for property damage, such policy to include express coverage for the liabilities assumed by Licensee under this Agreement; (ii) commercial automobile liability insurance with a combined single limit of at least Two Million and 00/100 Dollars ($2,000,000.00) per accident; and (iii) worker's compensation insurance in conformity with applicable laws. The commercial general liability and auto policies shall contain an endorsement naming the EDA and City as additional insureds as to the actions and omissions committed by Licensee, its officers, employees, agents, and invitees for which the EDA could be held responsible. Prior to entering on the Property, the Licensee shall furnish certificates of insurance evidencing compliance with this Section, with coverage effective as of the date the Licensee commences use of the Property, and a provision requiring written notice to the EDA of cancellation or change in the policy. The Licensee hereby waives all rights of subrogation against the EDA and City. Each policy of insurance required of the Licensee herein shall include a written waiver of subrogation in favor of the EDA and City, such insurance shall be primary, and any policy of insurance carried by the EDA or City shall be secondary and noncontributory. 11. DEFAULT; ENFORCEMENT OF AGREEMENT. In the event of a breach or a threatened breach by Licensee of its obligations under this Agreement, and after the EDA's delivery of three (3) calendar day prior written notice of said breach or threatened breach (or without any notice in the event of an emergency where public health or safety is endangered), the EDA may immediately terminate this Agreement and revoke the License granted herein. Upon such termination, Licensee shall immediately surrender and vacate the Property, and Licensee shall be responsible for all costs and expense to restore the Property to a condition that is at least as good as the condition on the Effective Date of this Agreement. Licensee further acknowledges and agrees that no remedy conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, and thus the EDA shall be entitled forthwith to full and adequate other relief under both law and equity to enforce Licensee's obligations hereunder, including, but not limited to an action for money damages. If Licensee defaults under any of the provisions of this Agreement and the EDA employs attorneys or incurs other expenses for the collection of amounts due hereunder or the enforcement of performance of any obligation or agreement on the part of Licensee, Licensee will on demand pay to the EDA the reasonable fee of such attorneys and such other expenses so incurred. 12. TITLE TO PROPERTY; ENVIRONMENTAL CONDITIONS. The EDA makes no representations or warranties whatsoever regarding its title to the Property or the environmental conditions of the Property. Licensee agrees to accept the condition of the 7 236931v1 Property as-is. 13. PROPERTY ACCESS. Licensee shall not have access to the Property until the Effective Date and execution and delivery by both Parties of this Agreement and upon (i) EDA's receipt and acceptance of Licensee's proof of insurance and (ii) payment by Licensee to the EDA of the Security Deposit. 14, TRANSFER/ASSIGNMENT. Licensee shall not transfer or assign any of its rights hereunder without the prior written consent of the EDA. Any such transfer or assignment made without the prior written consent of the EDA shall be null and void and of no force or effect and shall entitle the EDA to terminate this Agreement. 15. GOVERNING LAW, JURISDICTION AND VENUE. This Agreement shall be construed and interpreted in accordance with the laws of the State of Minnesota without regard to its conflict and choice of law rules. Any litigation arising out of this Agreement shall be venued in Wright County, State of Minnesota. Licensee hereby consents to personal jurisdiction and venue in the foregoing court. 16. INCORPORATION OF RECITALS AND EXHIBITS; ENTIRE AGREEMENT. The Recitals and Exhibits to this Agreement are fully incorporated into the terms of the Agreement. This Agreement is the full, complete, and entire agreement of the Parties with respect to the subjects hereof, and any and all prior writings, representations, and negotiations with respect to those subjects are superseded by this Agreement. 17. HEADINGS. The headings used in this Agreement are provided solely as a convenient means of reference. They are not intended to, and do not, limit or expand the purpose or effect of the paragraphs to which they are appended. The headings shall not be used to construe or interpret this Agreement. 18. SURVIVAL. The terms and conditions of Sections l(b), 3, 5, 6, 8, 9, 10, 11, 12, 14, 15 and 21 shall survive the expiration or termination of this Agreement or the License. 19. COUNTERPARTS. This Agreement may be executed in counterparts, each of which constitutes an original, but all of which when taken together shall constitute one and the same agreement. 21. ELECTRONIC SIGNATURES. The Parties agree that the electronic signature of a Party to this Agreement shall be as valid as an original signature of such Party and shall be effective to bind such Party to this Agreement. The Parties further agree that any document (including this Agreement and any attachments or exhibits to this Agreement) containing, or to which there is affixed, an electronic signature shall be deemed (i) to be "written" or "in writing," (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary 8 236931v1 course of business and an original written record when printed from electronic files. For purposes hereof, "electronic signature" also means a manually signed original signature that is then transmitted by any electronic means, including without limitation a faxed version of an original signature or an electronically scanned and transmitted version (e.g., via PDF) of an original signature. Any Party's failure to produce the original signature of any electronically transmitted signature shall not affect the enforceability of this Agreement. 21. LIMITED REMEDIES AGAINST EDA. In the event that the EDA fails to perform any of its obligations under this Agreement, the sole remedy of the Licensee is to bring an action for specific performance, and in no event does the Licensee have any claim for direct, consequential and/or incidental damages under this Agreement or by law or equity. 22. NOTICES. Except as otherwise provided in this Agreement, all notices herein provided to be given, or that may be given by either Party to the other, shall be deemed to have been fully given when served personally on EDA or Licensee, or when made in writing and deposited in the United States Mail, certified and postage prepaid, and addressed as follows: If to the EDA: With a copy to: The City of Monticello Economic Development Authority 505 Walnut Street Suite 1 Monticello, MN 55362 Attn: Jim Thares Campbell Knutson Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Attn: Soren Mattick 9 236931v3 If to the Licensee: Thousand Hills Market, LLC 12925 Prosperity Avenue, Becker, MN 55308 The address to which the notice shall be mailed may be changed by written notice given by either Party to the other. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set forth below. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Date:___________________, 20__ By: _ Its: Chair By: _ Its: Executive Director Dated: _, 20___ THOUSAND HILLS MARKET, LLC By: _ Printed Name: _ Its: _ 09/10/2025 1 4B. Consideration of additional funding in the amount of $179,800 being allocated to Façade Improvement Forgivable Loan Program Prepared by: Economic Development Manager Meeting Date: 9/10/2025 ☒ Regular Agenda Item Reviewed by: Community Development Director Approved by: Community Development Director ACTIONS REQUESTED 1. Motion to authorize additional funding in the amount of $179,800 to be allocated to the Façade Improvement Forgivable Loan Program. REFERENCE AND BACKGROUND The EDA is asked to consider adding funding to the Downtown Façade Improvement Forgivable Loan Program in the amount of $179,800 to meet the demand from pending applications. The proposed funding increase will accommodate the two recent façade funding submittals, provided the EDA approves the applications for the funding. The current program balance is $21,409.07. The two applicants are each seeking $100,000 in funding. The additional recommended allocation would increase the façade funding to $201,209.07. EDA General Fund is the source of the proposed allocation to the Façade Improvement Fund. The EDA should also be aware that if additional funding proposals which are received soon, additional allocations to the program may be required in the coming months. A quick summary of the projects and funding commitments from the program’s inception to date is as follows:  Agosto Law Building – 142 W. Broadway - $50,000 – Completed Fall 2020  Bliss Salon – 109 Walnut - $48,422 – Completed Summer 2024  Lucille Murray Dance Studio – 155 W. Broadway - $100,000 – Completed Summer 2025  Monticello Family Dentistry – 201 W. Broadway - $12,513 – Completed Spring 2025  Nordic Taphouse – 106 Walnut - $111,000 – Completed Summer 2025 Total façade funding commitments to date: $321,935 I. Budget Impact: The General Fund budget impact related to the proposed additional funding allocation to the Façade Forgivable Loan Program is $179,800. The EDA has discretion to move unallocated funds from the Sub Fund as well if it deems it necessary to carry out its other priority objectives. 09/10/2025 2 II. Staff Workload Impact: City staff involved in the façade improvement funding consideration consists of the Community Development Director, Finance Director and Economic Development Manager. III. Comprehensive Plan Impact: Maintaining a vibrant and economically healthy core downtown area is noted as a goal in the Comprehensive Plan. The Small Area Plan, adopted in late 2017, also identifies the need for a Façade Improvement Funding program as a key tool to support widespread downtown revitalization efforts. STAFF RECOMMENDATION Staff recommend the EDA allocate an additional $179,800 into the Façade Improvement Forgivable Loan Program to accommodate recent façade funding requests. If the EDA approves of the allocation recommendation, the additional funding will increase the Sub-Fund balance to $201,209.07. SUPPORTING DATA A. EDA General Fund Budget Report (June 30, 2025) CITY OF MONTICELLO Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program June 30, 2025 - Unaudited TIF 6 (d)TIF 19 (d)TIF 20 (d)TIF 22 (d)TIF 24 TIF 29 TIF 30 TIF 34 (d)TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA SCDP ASSETS Cash and investments 1,762,690$ 830,811$ -$ 95,444$ 37,719$ -$ 34,358$ 151,358$ 102,356$ 92,690$ -$ 63,008$ 69,581$ -$ -$ 111,291$ 32,379$ -$ 3,383,685$ 903,437 Receivables Delinquent taxes 3,465 - - - - - - - - - - - - - - - - - 3,465 - Accounts 10,926 - - - - - - - - - - - - - - - - - 10,926 1,918 Intrafund receivable 109,779 - - 687,248 - - - - - - - - - - - - - (797,027) - - Notes receivable 127,246 439,445 - - - - - - - - - - - - - - - - 566,691 80,195 Land held for resale 2,759,929 - - - - - 163,200 - - - - - - - - - - - 2,923,129 - TOTAL ASSETS 4,774,035$ 1,270,256$ -$ 782,692$ 37,719$ -$ 197,558$ 151,358$ 102,356$ 92,690$ -$ 63,008$ 69,581$ -$ -$ 111,291$ 32,379$ (797,027)$ 6,887,896$ 985,550$ LIABILITIES Accounts and contracts payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 127,246$ -$ -$ -$ 127,246$ -$ Intrafund payable - - 58,563 - - - - - - 49,331 - - 687,248 431 431 431 592 (797,027) - - Unearned revenue - - - - - - 163,200 - - - - - - - - - - (163,200) - - Escrow deposits 38,746 - - - - - - - - - - - - - - - - - 38,746 - Total liabilities 38,746 - 58,563 - - - 163,200 - - 49,331 - - 687,248 431 127,677 431 592 (960,227) 165,992 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 3,465 - - - - - - - - - - - - - - - - - 3,465 - FUND BALANCES Restricted 121,740 1,270,256 - 782,692 37,719 - 34,358 151,358 102,356 43,359 - 63,008 (617,667) (431) (127,677) 110,860 31,787 163,200 2,166,918 985,550 Assigned Economic Development 4,588,594 - (58,563) - - - - - - - - - - - - - - - 4,530,031 - Façade Grant 21,490 - - - - - - - - - - - - - - - - - 21,490 - Total fund balance 4,731,824 1,270,256 (58,563) 782,692 37,719 - 34,358 151,358 102,356 43,359 - 63,008 (617,667) (431) (127,677) 110,860 31,787 163,200 6,718,439 985,550 TOTAL LIABILITIES, AND FUND BALANCES 4,774,035$ 1,270,256$ -$ 782,692$ 37,719$ -$ 197,558$ 151,358$ 102,356$ 92,690$ -$ 63,008$ 69,581$ -$ -$ 111,291$ 32,379$ (797,027)$ 6,887,896$ 985,550$ 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 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended June 30, 2025 - 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 Revenues Property taxes 252,763$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 252,763$ -$ Tax increments - - - - - - 4,674 35,594 25,996 10,433 - 41,959 36,651 - - 111,291 29,674 - 296,272 - Charges for services 3,072 - - - - - - - - - - - - - - - - - 3,072 - Interest on loans - 12,458 - - - - - - - - - - - - - - - - 12,458 1,397 Total revenues 255,835 12,458 - - - - 4,674 35,594 25,996 10,433 - 41,959 36,651 - - 111,291 29,674 - 564,565 1,397 Expenditures: Current Salary and wages 74,424 - - - - - - - - - - - - - - - - - 74,424 - Benefits 24,963 - - - - - - - - - - - - - - - - - 24,963 - Supplies 106 - - - - - - - - - - - - - - - - - 106 - Professional services - legal 5,568 - - - - - - - - - - - - - - - - - 5,568 - Professional services - other 30,958 - - - - - - - - - - - - - - - - - 30,958 - LPV Insurance 1,371 - - - - - - - - - - - - - - - - - 1,371 - Legal and general publications 187 - - - - - - - - - - - - - - - 443 - 630 - Property taxes 3,573 - - - - - - - - - - - - - - - - - 3,573 - Marketing 5,000 - - - - - - - - - - - - - - - - - 5,000 - Dues and membership 6,999 - - - - - - - - - - - - - - - - - 6,999 - Utilities 2,722 - - - - - - - - - - - - - - - - - 2,722 - IT services 1,728 - - - - - - - - - - - - - - - - - 1,728 - Travel and conferences 2,455 - - - - - - - - - - - - - - - - - 2,455 - Qualifying TIF expenditures - - - 17,157 - 104,142 218,761 - - - 77,340 - - - - - - - 417,400 - Other expenditures 62,354 - - - - - - - - - - - - - - - - - 62,354 - Total expenditures 222,408 - - 17,157 - 104,142 218,761 - - - 77,340 - - - - - 443 - 640,251 - Net change in fund balances 33,427 12,458 - (17,157) - (104,142) (214,087) 35,594 25,996 10,433 (77,340) 41,959 36,651 - - 111,291 29,231 - (75,686) 1,397 Fund balance at beginning of year 4,698,397 1,257,798 (58,563) 799,849 37,719 104,142 248,445 115,764 76,360 32,926 77,340 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 6,794,125 984,153 Fund balance at end of year 4,731,824$ 1,270,256$ (58,563)$ 782,692$ 37,719$ -$ 34,358$ 151,358$ 102,356$ 43,359$ -$ 63,008$ (617,667)$ (431)$ (127,677)$ 110,860$ 31,787$ 163,200$ 6,718,439$ 985,550$ 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 EDA Agenda: 9/10/2025 5. Economic Development Manager’s Report Prepared by: Economic Development Manager Meeting Date: 9/10/2025 ☒ Other Business Reviewed by: N/A Approved by: N/A REFERENCE AND BACKGROUND 1. Nordic Façade Improvement Project: The façade improvement project is essentially complete. The remaining funding disbursement in the amount of $11,604.47 will occur in mid-September. Nordic held soft opening on the evening of August 14, 2025. Several photos of views from the deck are attached. See Exhibit A-1 and A-2. 2. Business Retention & Expansion Efforts: The Industrial and Economic Development Committee (IEDC) and EDA have completed 9 BR&E visits to date. A summary of the BR&E visits with Willows Landing and Pezo Solutions is included as Exhibits B and C. The goal is to conduct a total of 12 BR&E visits in 2025. The purpose of the visits is to demonstrate support for local business investment and gather feedback on assistance and/or other tools to further encourage business development and retention in the community. More visits will be scheduled in September and October. 3. Downtown Rounds - September 18, 2025, 8:00 a.m. at Nordic Taphouse: Staff will hand deliver the invitations to the local businesses in early September. 4. Initiative Foundation Promise Act Funding Available Now: See Exhibit D. 5. Wright County-Sherburne County Enterprise Academy Starts on September 11, 2025, at MCC: See Exhibit E. EDA Agenda: 9/10/2025 6. Fairfield By Marriott Hotel Development: Progress on the hotel and restaurant development continues. See recent photos of the walls being framed and wall sheeting being applied. Completion of the restaurant portion of the development is expected in mid-November. The hotel component has a projected completion date of mid-June 2026. See Exhibit F. 7. Sales Tax Collections Update: The attached spreadsheet shows sales tax collections and projection comparison information (the sales tax records are always a one-month lag; as a reminder, 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). See Exhibit G-1 and G-2. 8. Planning Commission Meeting Agenda – September 2, 2025: See attached Exhibit H. 9. Prospect List – September 5, 2025: Please see Exhibit I. NORDIC OPENING WILLOWS LANDING DATE OF VISIT: August 26, 2025 ABOUT THE BUSINESS Willows Landing is a senior living facility that provides a continuum of care from independent living to assisted living to memory care services. WHAT WE LEARNED With 92 units in total, Willows Landing reported having one of the highest occupancy rates to date, with over 94% occupancy, leaving only five units available. The facility offers a mix of 2-bedroom, 1-bedroom, and studio units, with remaining vacancies being studios. There is a waiting list for the 14-bed memory care unit, both internally and externally. Future expansion plans may include additional memory care units on the ground level. Amenities include meal plans for three daily meals, Wi-Fi, cable TV, housekeeping, and laundry services. Transportation is provided for appointments within a 5- mile radius and scenic tour outings for residents. Willows Landing employs 67 staff members in nursing, dining, events, maintenance, and administrative roles. BUSINESS RETENTION & EXPANSION VISIT PEZO SOLUTIONS DATE OF VISIT: September 4, 2025 ABOUT THE BUSINESS Pezo Solutions specializes in offering product design and development, fabrication, prototypes and fixtures for all sizes of companies that produce plastic and metal parts.They have a growing niche in early-stage medical device prototyping solutions, and sell both standard and custom plastic injection molding machines. WHAT WE LEARNED Pezo Solutions was started in 2018 and has experienced steady growth in its initial seven years. Pezo Solutions has grown from 4 employees to 16 employees locally in Monticello with more growth expected in the future. They currently own and rent space at 108 Dundas Road (Spaeth Mini Business Park). The company employs people with backgrounds in mechanical engineering, machining and assembly for roles related to product and machine (3- D printers) design, as well as fabrication and assembly tasks. Pezo Solutions’ customers include large firms with familiar names in the medical products industry as well as smaller companies. Pezo Solutions recent performance and positive future outlook has the leadership exploring early steps to find more space in Monticello to accommodate its future growth. BUSINESS RETENTION & EXPANSION VISIT LOCATION: 108 Dundas Rd Building F2 From: Sent: To: Subject: Zach Tabatt, Initiative Foundation <info-ifound.org@shared1.ccsend.com> Monday, August 18, 2025 2:47 PM Jim Thares PROMISE Act Grant Application Now Open Apply for Small Business PROMISE Act Grant Thanks to the PROMISE Act funded by the Minnesota Legislature, one-time grants ranging from $10,000 to $50,000 will be awarded to Central Minnesota businesses to invest in existing operations or planned growth. The program aims to assist businesses that may have missed out on state relief during the pandemic. The application is now open and closes at noon on Sep. 15. This program is not first-come, first-served; apply anytime before the deadline. Applicants will be able to access free technical support in preparing for and applying to this program. Awards will be announced and delivered by the end of 2025. We expect this program to be in high demand, with most-if not all-grants going to businesses that meet the highest priority 1 Privacy - Terms View this page in Somali View this page in Spanish What You Will Learn Enterprise Academy is the single-largest early-stage entrepreneur training program in Central Minnesota. At the heart of the program is a 12-week business course that provides training and individualized advising to help underserved entrepreneurs start and grow small businesses. The expertly taught classes lead students through basic business principles and helps them start—and ultimately nish—a business plan. Graduates receive B U S I N E S S S E R V I C E SBUSINESS S E R V I C E S Enterprise AcademyEnterprise Academy ongoing technical support and can also apply for market-rate microloans through the Initiative Foundation. Meet Enterprise Academy Graduates Entrepreneur Training Aspiring entrepreneurs learn from business experts as they create their own individual business plan. Classes are once per week for 12 weeks and feature instruction in basic business principles and assistance in creating a business plan. Business Services & Support Expert consultants provide one-on-one business support services in areas such as recordkeeping, accounting, marketing and branding, web development, social media marketing and legal aspects of business. These services are available to qualifying existing businesses for a reduced fee. Small Business Lending The Enterprise Academy is supported by a lending program and provides access to microloans for businesses owners who may not be able to access traditional sources of capital, including culturally tailored lending. Direct loans are available for up to $50,000 for successful graduates of our Enterprise Academy program or to our business services and technical assistance clients who create a realistic business plan. Enterprise Academy borrowers may also gain access to larger loans through our traditional gap lending program, which requires a lead lender such as a bank or credit union. Description Taken Date Uploaded By 09/05/2025 at 08:00 am Sean Skinner Upload Date File Name 09/05/2025 at 08:01 am 72D0D57D-23C9-407E-8AF7-381… Album Photos From Daily Log Description Taken Date Uploaded By 09/05/2025 at 07:58 am Sean Skinner Upload Date File Name 09/05/2025 at 08:01 am 1202781A-33E6-4B68-B37F-03CB… Album Photos From Daily Log Description Taken Date Uploaded By 09/05/2025 at 07:56 am Sean Skinner Upload Date File Name 09/05/2025 at 08:01 am 813269AD-D499-4801-8BE9-0CC… Album Photos From Daily Log Description Taken Date Uploaded By 09/04/2025 at 06:33 am Sean Skinner Upload Date File Name 09/04/2025 at 06:33 am 7DB6275D-8197-496C-BC3B-D1E… Album Photos From Daily Log C.I. Construction, LLC Printed on Fri Sep 5, 2025 at 11:14 am CDT Job #: 3875-23 Monticello Hospitality Group, LLC. 90 Chelsea Rd Monticello, Minnesota 55362 Page 1 of 2 Description Taken Date Uploaded By 09/04/2025 at 06:29 am Sean Skinner Upload Date File Name 09/04/2025 at 06:31 am DF6D9F2F-EB32-4F7C-9EA8-6658… Album Photos From Daily Log Description Taken Date Uploaded By 09/04/2025 at 06:25 am Sean Skinner Upload Date File Name 09/04/2025 at 06:30 am F73E10EC-59EF-4706-BFC5-A238… Album Photos From Daily Log Description Taken Date Uploaded By 09/03/2025 at 04:00 pm Melani Thompson Upload Date File Name 09/03/2025 at 04:30 pm Update_2025-09-03.jpg Album Sensera Project Updates Description Taken Date Uploaded By 09/03/2025 at 06:38 am Sean Skinner Upload Date File Name 09/03/2025 at 06:39 am 2996FBE0-5FEB-4D65-85B1-4C5… Album Photos From Daily Log C.I. Construction, LLC Printed on Fri Sep 5, 2025 at 11:14 am CDT Job #: 3875-23 Monticello Hospitality Group, LLC. 90 Chelsea Rd Monticello, Minnesota 55362 Page 2 of 2 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 204,919.19$ (1,844.27)$ 203,074.92 TOTAL 380,168.55 (16,116.45) - (3,421.51) 360,630.59 Please note: This report contains current fiscal year information only. City of Monticello 8/29/2025 © 2012 Regents of the University of Minnesota. All rights reserved. Monticello LOST Analysis ERIC KING EXTENSION EDUCATOR UNIVERSITY OF MINNESOTA © 2012 Regents of the University of Minnesota. All rights reserved. Data Method Highlights © 2012 Regents of the University of Minnesota. All rights reserved. Potential Sales vs. Actual Sales Defensible numbers •Err on side of conservatively estimating non-residents Traffic pattern assumptions © 2012 Regents of the University of Minnesota. All rights reserved. POTENTIAL SALES Calculated using: Per capita sales in MN Population of Monticello Index of Income How are you doing? Compare Actual vs. Potential Identify opportunities or gaps © 2012 Regents of the University of Minnesota. All rights reserved. Context: On the map © 2012 Regents of the University of Minnesota. All rights reserved. 2020 DATA FROM MN REVENUE –$172 million (2011) to $306 million (2020) $- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Taxable Sales © 2012 Regents of the University of Minnesota. All rights reserved. -41%-37% -30%-25%-23% -9%-5%0% 8%11%14%16% 23% 44%46% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Change in Sales from 2019 to 2020 © 2012 Regents of the University of Minnesota. All rights reserved. +234.2% -22.2% -11.1% +236.0% +45.1% +66.8% +110.9% +118.5% -91.8% +543.9% +165.1% -28.3% -35.5% +149.2% +66.0% -47.8% +134.4% -200%-100%0%100%200%300%400%500%600% Vehicles & Parts Furniture Stores Electronics Building Materials Food, Groceries Health, Personal Stores Gas/Convenience Stores Clothing Leisure Goods General Merchandise Stores Miscellaneous Retail Amusement & Recreation Accommodations Eating & Drinking Places Repair, Maintenance Personal Services, Laundry Total Taxable Retail & Service* Percentage Above or Below Expected Sales, 2020 © 2012 Regents of the University of Minnesota. All rights reserved. HIGHLIGHTS Major categories Building Materials General Merchandise Eating and Drinking Places $1,400,000 tax proceeds (2020) $30.41 per resident 31.4% Monticello vs. 68.6% Non-residents © 2012 Regents of the University of Minnesota. All rights reserved. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Values Forecast Lower Confidence Bound Upper Confidence Bound © 2012 Regents of the University of Minnesota. All rights reserved. Thank You Eric King Extension Educator kingx953@umn.edu 612-310-7952 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 20,000 to 25,000 sq. ft.12 7 $3,100,000 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 = 04 YTD = 21 PROSPECT LIST 09/05/2025