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EDA Agenda - 11/12/20251 AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 12, 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 1. General Business A. Call to Order B. Roll Call 6:00 p.m. C. Consideration of Additional Agenda Items 2. Approval of Agenda Approval of Agenda – EDA members or the Executive Director may add items to the agenda for discussion purposes or approval. The EDA may or may not take official action on items added to the agenda 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving August 13, 2025, Workshop Meeting Minutes C. Consideration of Approving September 10, 2025, Regular Meeting Minutes 4. Public Hearing N/A 5. Regular Agenda A. Consideration of Resolution No. 2025-10 authorizing an amendment to Affordable Housing TIF District 1-42 Amended and Restated Purchase and Development Contract between the EDA and CHC Monticello II, LLC, designating up to 9 of 22 twin home units in the development project as intended for age 55 + households B. Consideration of Resolution No. 2025-11 authorizing an amendment to Affordable Housing TIF District 1-43 Purchase and Development Contract between the EDA and ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP Academy Room - Monticello Community Center 5:00 p.m. Downtown Visioning & Planning – Block 34 / Cedar Fair Small Area Study Update Discussion – Andrew Dresdner and Mike Thompson, Bolton & Menk EDA Regular Meeting Agenda – November 12, 2025 2 CHC Monticello, LLC allowing up to 9 of 60 units in the development project to be rented without age restrictions (to under 55 + households) and adjusting the start and endpoint timeline of the TIF District by one calendar year 6. Other Business A. Consideration of Economic Development Manager’s Report 7. Adjournment Announce that the meeting is now closed; the meeting MUST be adjourned prior to starting the Closed Meeting Closed Meeting - Consideration of Recessing to Closed Session to Develop or Consider Offers or Counteroffers for the Purchase or Sale of Real or Personal Property Pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3) PID: 155-010-035070 (0.14 acres / 5,927.74 sq. ft.) Address: 108 Broadway W User: Printed:10/21/2025 - 1:28PM julie.cheney@monticellomn.gov Transactions by Account Batch:00202.10.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-430400 KUTAK ROCK LLP GENERAL EDA LEGAL 130709 1,480.0010/14/2025 1,480.00Vendor Subtotal: 213-46301-443990 WRIGHT COUNTY ECONOMIC DEVELOPMENT PARTNERSHIPSUPPLIES FOR ENTERPRISE ACADEMY 130739 250.0010/14/2025 250.00Vendor Subtotal: Subtotal for Fund: 213 1,730.00 Report Total: 1,730.00 AP-Transactions by Account (10/21/2025 - 1:28 PM)Page 1 User: Printed:11/03/2025 - 8:58AM julie.cheney@monticellomn.gov Transactions by Account Batch:00204.10.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-00000-103010 NATIONAL BANK OF COMMERCEFACADE LOAN STELLAR PROP/Liq Lounge 130789 100,000.0010/28/2025 100,000.00Vendor Subtotal: 213-46301-430400 CAMPBELL KNUTSON PA GENERAL LEGAL EDA - SEPT 2025 0 105.0010/28/2025 105.00Vendor Subtotal: 213-46301-433100 TYLER BEVIER MILEAGE TO EDAM TRAINING 0 163.8010/28/2025 163.80Vendor Subtotal: 213-46301-435100 ECM PUBLISHERS INC EDA 10/8/25 PH STELLAR PROP_124 BROADWAY 0 166.5010/28/2025 166.50Vendor Subtotal: Subtotal for Fund: 213 100,435.30 Report Total: 100,435.30 AP-Transactions by Account (11/03/2025 - 8:58 AM)Page 1 User: Printed:10/21/2025 - 1:27PM julie.cheney@monticellomn.gov Transactions by Account Batch:00201.10.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-433100 US BANK CORPORATE PMT SYSTEMTHE SUITES HOTEL AT WATERFRONT PLAZA - Lodging MN Econ Dev Foundation Conference (TB) 0 558.1610/15/2025 558.16Vendor Subtotal: 213-46301-438200 CITY OF MONTICELLO 216 Pine St (EDA - old Finders Keepers consignmt by old DMV) 0 53.8210/15/2025 213-46301-438200 CITY OF MONTICELLO 130 Broadway E. (EDA strmwtr - formerly the Zoo) 7/3/2019 new fee 0 31.5010/15/2025 85.32Vendor Subtotal: 213-46301-443990 US BANK CORPORATE PMT SYSTEMMONTICELLO CHAMBER OF COMMERCE - Chamber Lunch (JT) 0 20.0010/15/2025 213-46301-443990 US BANK CORPORATE PMT SYSTEMWALMART - Food Special Mtg - EDA Workshop 0 41.6710/15/2025 61.67Vendor Subtotal: Subtotal for Fund: 213 705.15 Report Total: 705.15 AP-Transactions by Account (10/21/2025 - 1:27 PM)Page 1 User: Printed:11/03/2025 - 1:40PM julie.cheney@monticellomn.gov Transactions by Account Batch:00205.10.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-431991 DEMVI LLC Parking Lot Maintenance - Oct 2025 0 213.8610/31/2025 213.86Vendor Subtotal: 213-46301-435100 ECM PUBLISHERS INC Duplicate ACH Pmt 0 166.5010/31/2025 166.50Vendor Subtotal: 213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St 0 18.3310/31/2025 18.33Vendor Subtotal: 213-46301-438100 XCEL ENERGY 101 E 3rd St (216 Pine St) - formerly Finders Keepers 0 20.2710/31/2025 20.27Vendor Subtotal: Subtotal for Fund: 213 418.96 Report Total: 418.96 AP-Transactions by Account (11/03/2025 - 1:40 PM)Page 1 The preceding list of bills payable totaling $103,289.11 was approved for payment. Date: 11/12/25 Approved by:__________________________________________ Hali Sittig - Treasurer AGENDA WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, August 13, 2025 – 4:15 p.m. Academy Room, Monticello Community Center Commissioners: President Steve Johnson, Treasurer Hali Sittig, Rick Barger, Clint Berglof, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Absent: Vice President Jon Morphew Staff: Executive Director Jim Thares, Bob Ferguson 1.Call to Order President Steve Johnson called the workshop meeting of the Monticello Economic Development Authority to order at 4:22 p.m. 2.Roll Call Mr. Johnson called the roll. 3.GMEF Loan Pre-Application Review – Best of Mexico (BOM) Executive Director Jim Thares introduced the loan applicant, Jose De Leon, Best of Mexico. He gave a summary of the business description-model, preparation of compacted spice recipe “BOM” (bomb) balls, used as a flavorful crock-pot seasoning additive. Mr. De Leon told the EDA about the BOM history and its intentions to expand. They have operated out of the Monticello Community Center kitchen for a couple of years to satisfy product demand. They continue to grow and need more food prep capacity. They would also like to establish a small restaurant with the production facility. They recently made an offer for 154 Broadway, the location of the former Cornerstone Café. They are waiting to hear back from the sellers. Mr. De Leon noted again that his best scenario would be to have a full-commercial kitchen to serve as a three-in-one facility: to prepare and serve prepared dishes, and retail to sell the spice product. He noted the success BOM had from its food truck starting in June this year. They serve twice a month at the municipal liquor store lot in the City and word-of- mouth promotions. Mr. De Leon described his manufacturing process for production and certification required for commercial use. It does not require a full commercial kitchen. Mr. Johnson asked Mr. De Leon if he had a business plan. Mr. De Leon said he did not have a business plan for this funding request. He said he would be able to send follow up email for further review if that is required. Mr. Johnson asked if there would be owner equity as part of the real estate purchase funding structure. DR A F T EDA Workshop Meeting Minutes – August 13, 2025 2 Mr. De Leon indicated that he has reserved some of his equity dollars to match bank financing of real estate and feels that additional funds are needed to solidify his finances for this phase of growth. He would use GMEF funding to add equipment and as working capital. He feels this is an exploratory step. Ms. Sittig asked Mr. De Leon if he was holding a full-time career in addition to making and selling the BOMs and asked if the business might become a full-time endeavor. He confirmed that he was a full-time warehouse manager and is confident in his leadership to establish his business as his sole source of income in the future. Mr. Johnson asked Mr. De Leon what he needed the $150,000 loan for specifically. He responded that he needs additional down-payment funding to purchase the former Cornerstone building. He added that based on the BOM’s recent revenues, the monthly payments are comfortably covered as per the company’s projections. He explained that it is difficult working with banks to leverage the operational two-year requirement while being in operation for only one year with profits. He added that another lender may be more willing to cooperate if the EDA is interested in filling the Gap dollars for this project. Ms. Sittig noted that everything that he has is going into the business and keeps it fully operational. She asked to describe how his investments into it have been monetized. Mr. De Leon mentioned that the food truck is nearing $120,000 in sales and revenue from the BOM spice ball is near $120,000 in revenue in a year’s time with expectations of $180,000 in 2026. He also noted costs per unit as being minimal with a sales price of $9.00 for a 300 percent markup. They plan to sell online in the coming months as well. He noted that the expansion into a building would create four or five jobs as well. He said he has not yet taken a salary-distribution as earnings are immediately reinvested in the business (ingredients and production). He hopes to do so in the future though. The goal is to rise above the current $11,000 sales per month and that is achievable. He stated that approval of the GMEF funding would open better opportunities for lender financing. Mr. Thares noted that there are likely other funding partnerships that can be investigated as well like the Initiative Foundation. Mr. Johnson explained the approval process involving the EDA limit of 33 percent of the funding needed for a project. Mr. De Leon said his main goal is to find a place to manufacture the spice product that will meet commercial building code and according to the State Health and Agricultural guidelines. He is willing to look at all options. Mr. Johnson suggested that Mr. De Leon build up more equity over the next year or two to allow more chances for financing success. If in the event of not purchasing a building, the GMEF loan would not be applicable, said Mayor Hilgart. Mr. Thares confirmed the loan program guidelines allow dollars to be funded for asset purchases or for operating capital needs. DR A F T EDA Workshop Meeting Minutes – August 13, 2025 3 Ms. Hinz asked if Mr. De Leon sold his products at the Monticello Farmers Market. She suggested that the product might be well received within the community. Mr. De Leon noted the various community markets and swap meets attended on a weekly basis from St. Cloud to the Twin Cities and spoke with high regard to the quality of his product and the success with BOM sales increasing due to more customer exposure. Mr. De Leon thanked the EDA and staff for their insight and time to review his proposal. He said he may return with more structured financing information later in his expansion effort. 4. GMEF Loan Pre-Application Review – Master Craft Outdoors Mr. Thares introduced the applicant Tim Flanders and Jarred Merchant, loan officer, Sherburne State Bank. Mr. Flanders provided background information about his business and his goal of moving operations to a Monticello location. Tim Flanders explained that the current operating facility is in Otsego. He also has space at Affordable Storage in Monticello with intent of moving all operations to the new location on Fallon Avenue in the future. Mr. Flanders described the project as a total cost of $1,450,000. He will be contributing 10 percent of the equity, and the bank will finance 80 percent. He is seeking to fill the gap of 10 percent which will be used for building construction. He is planning to construct a 7,600 sq. ft. steel building (metal siding) and use about 20 percent of it. The other 80 percent will be comprised of several rental bays. He said there is a strong demand for small light industrial rental space with outside storage options. He also noted that he already purchased the lot some time ago for $230,000. He put $60,000 down on the purchase. He has already gained equity with a recent appraisal of $315,000. He has an additional $60,000 in equity dollars to finance the building construction. He is seeking $150,000 from the EDA. Mr. Merchant noted the economic impacts for the City of Monticello in having the landscape operations moved here offer small bay rental space to lease to small businesses. He said that the rental spaces will allow the owner to use that income from renters as security for the debt financing. Mr. Flanders said he believes he will have success leasing out the four spaces (1,520 sq. ft.) and repeated that there is known market demand for this product. Mr. Merchant noted the comparative Spaeth Industrial Park development site while nearly full is not as desirable due to delivery access complications and parking restrictions. He said they have investigated financing options like the Initiative Foundation and the SBA 504 programs. The amount of multi-tenant space is over the allowed limit for SBA 504 loans. Mr. Barger asked what the goal was in already purchasing the site. Mr. Flanders noted that the initial intent was to occupy the entire building until researching the costs and learning that they are too high for his business to shoulder on its own. DR A F T EDA Workshop Meeting Minutes – August 13, 2025 4 Mr. Barger asked if all operations are intended to relocate and to move into the one stall the applicant intends to occupy. Mr. Flanders confirmed this as correct and said he will keep his Otsego property only for storage space including as well as the Affordable Storage location. Mr. Flanders said it is best to mitigate the number of vehicles allowed and outdoor storage at the Monticello property. He has wall racking that can accommodate a significant amount of equipment in his space EDA members noted current interest rates and all information to consider a twenty-year term loan with a 10-year balloon. Mr. Merchant explained how rates reset for maturity every five years per the current market rate for commercial bank loans. Mr. Flanders spoke to the nature of the landscaping business and despite the economy, the retention strategies have been successful and business is growing. He agreed to work further with his commercial real estate firm and come back with firm numbers for EDA’s review. Mr. Thares also noted the job creation aspect requirements of the request to create and maintain four fte jobs. Mr. Merchant said he would provide Mr. Flanders with a revised financing breakdown with a refined quote and appraisal numbers as well as the demand for build and lease rate. This will help determine the true down-payment amount required for the continued application review. Mayor Hilgart mentioned construction of rental properties and owner subletting to which Mr. Ferguson said any subletter must follow the conditions set forth within the planned unit development, all users are subject to the requirements. 5. HRA Levy and EDA General Fund Budget Overview Discussion Mr. Thares introduced the agenda item, also on the regular meeting agenda following workshop, and walked through the details of the proposed 2026 EDA revenues and expenditures budgets. He provided other project updates and referenced the City compensation study components as factors that need to be added to the budget information for final consideration by the City Council in December. As a related update, he also noted that Big Bore Restaurant notified him that they are moving with their project without EDA SCDP Funding. This is due to a need to quickly finalize all SBA 504 funding which has extensive review with an end goal of having all financing approvals before September 26, 2025, which is the proposed closing date for the former McDonald’s property on 7th Street East. Mr. Thares explained the line for travel/training expense is allotted for staff training and further education. The dues and membership budget satisfies memberships and/or contributions for programs such as the Initiative Foundation, and the partnership with the DR A F T EDA Workshop Meeting Minutes – August 13, 2025 5 Wright County Economic Development Partnership (WCEDP), and the Central Minnesota Manufacturers Association (CMMA). Mr. Johnson also suggested that the EDA may want to pay for Mr. Thares’s annual Rotary membership rather than him paying out of pocket. He noted that valuable networking lunches occur weekly through Rotary membership. They essentially function on the same level as any other ED-related outreach opportunity. Other members agreed that the annual $1,200 dues should be paid for by the EDA and will be incorporated into the 2026 budget. 6.Historic Plaque Signs Format and Color Discussion Mr. Thares reminded the members of the walking tour and discussions regarding the most desired palate for the historic plaque signs which are provided through the downtown façade improvement loan program. The color selections included blue, bronze, and black and white. Staff are recommending the bronze palate be selected to match the City color theme with allowance for the Agosto Law to convert their existing sign from blue to bronze. Mr. Thares suggested the black and white option might be an elected color palate for specialized instances and that the members may want to offer affirmation or direction at this time. Mr. Barger supports the bronze as being the primary and black and white as a secondary option if the bronze does not match the applicable building façade. Several members agreed with that concept as well. 7.Rustech Brewing – Equipment Auction Status Update Mr. Thares shared that Rustech Brewing has filed for Chapter 13 bankruptcy by means of a notice received and the equipment valued $10-15k belongs to the EDA through a Uniform Commercial Code lien filling. Members felt that a less than desirable scenario would be to sell the equipment at auction. Mr. Thares will speak to legal counsel to determine the best option for sales to avoid rental storage fees against the City since the owner has now relinquished the equipment to the EDA. 8. Adjournment The workshop was adjourned by consensus at 5:59 p.m.DRAFT MINUTES 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, Mayor Lloyd Hilgart Staff: Executive Director Jim Thares, Angela Schumann, Bob Ferguson 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority to order at 6:09 p.m. B. Roll Call 6:09 p.m. Mr. Johnson called the roll. C. Consideration of Additional Agenda Items None 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes – July 9, 2025 HALI SITTIG MOVED TO APPROVE THE CONSENT AGENDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 3. Public Hearing None 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 Executive Director Jim Thares provided background information about the proposed license agreement with Farm & Floral Market for the proposed usage of the west end of the Cedar Fair site for its weekly food truck sales activities. The discussion with Farm & Floral Market occurred as part of the mid-June 2025 Business Retention & Expansion (BR&E) visit. A workshop discussion in July provided direction to staff to pursue the license agreement for trial basis usage of the vacant EDA site. The agreement allows renewal if both parties agree that all is working well. City staff are to be sent a notice each week that they plan to use the site for the food truck activities. The parking is limited to the street for this usage as the former Fair Garden Center parking lot is primarily loose gravel and is not an acceptable parking surface. The food truck and picnic tables and garbage cans are allowed on the EDA owned site as per the license DR A F T EDA Regular Meeting Minutes – September 10, 2025 2 agreement. Mr. Thares further noted the license converts to a month-to-month after one year. No rent is collected though a $700 escrow deposit is required in the event of default or damage to the EDA site or if City staff are needed to clean the property at any point during the license agreement time frame. The agreement can be cancelled with 30 days’ notice if a compelling development proposal for the arises. Farm & Floral Market is also required to provide evidence of insurance for the site as well. LLOYD HILGART MOVED 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. RICK BARGER SECONDED THE MOTION. Matt Maier, owner of Thousand Hills Market dba Farm & Floral, thanked the EDA and described the nature of the proposed usage of the site and his vision for future expansion of Farm & Floral Market’s retail operations and perhaps a food hall as well. The Red Truck Pizza which uses wood pellets for fuel to bake pizza has been warmly received in the community. He deeply appreciates that reception. He is supportive of the EDA’s effort to revitalize the downtown and create warm and inviting spaces and support businesses in this area. Mayor Hilgart said if a food hall idea comes to fruition, his desire is to create a zoning district for social gathering, much like the City of Shakopee just approved. He also noted the quality of food the applicant is providing to the public. Mr. Maier stated he supports the idea of social district and noted the resurgence in downtown Anoka due to its legislatively approved social district. Mr. Thares said most activities will take place on the westerly parcel (PID #155010067010). An original idea proposed was for the expansion of the food truck sales activities involving the parcel to the east (PID #155010067060). If the concept where multiple food trucks are opened, each separate food truck would then need to have a license agreement authorized by the EDA. If it was just the Red Truck Pizza food truck though with more than just food sales, for instance, music and yard games, etc. then a Special Event Permit would need to be authorized by the City Council. For clarity, Mr. Barger said the agreement states the address, not parcel number, for the subject property and interprets this as both PIDs included as one lot. Mr. Thares confirmed that it is correct. Mr. Maier also concurred with that understanding. Mr. Johnson asked the applicant if he had spoken to the property owners to the north of the subject parcel regarding potential special events to notify them of potential noise concerns. Mr. Maier said he has not yet and is willing to adhere to City ordinance. Mr. Morphew asked if any complaints or objections have been received for using the DR A F T EDA Regular Meeting Minutes – September 10, 2025 3 food truck, which Mr. Maier said he had not and that all feedback has been positive thus far. Mr. Thares noted for clarity that this current version of the license document notes a 7- day cancellation notice. He asked the EDA for feedback on that term. Mayor Hilgart said he was in favor of 30-days’ notice unless an egregious event or situation were presented. Mr. Maier noted that the cold-storage truck parked on the EDA property is temporary. It will be stored in another location for the winter months. Mr. Johnson asked if the applicant shall continue to allow off-street parking on the property. Mr. Maier said the street does not have a curb and the property has gravel; customers are naturally drawn to drive up on the existing approach. Mr. Thares said staff will work with the business to keep the on-site parking to a minimum and seek clarifying signage to placements for appropriate parking locations. Mr. Maier said he will fully cooperate regarding parking needs though he has not yet been told that parking on the site is not permitted. Mr. Morphew asked if parking was central to consideration. He reminded members of the matter for discussion is for consideration of the license agreement for use of food truck and City parking is another matter. Ms. Hinz suggested allowing the user the opportunity to utilize the site and see what challenges or needs arise or if they become true issues. Mr. Johnson noted potential traffic issues on County Road 75 affecting. Mr. Maier said that the traffic is already backing up on CR 75. It is an existing problem beyond his control and noted the complexities with his retail store’s proximity to Broadway. LLOYD HILGART AMENDED THE MOTION TO INCLUDE A 30-DAY NOTICE AND TIMEFRAME FOR TERMINATION. CLINT BERGLOF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. B. Consideration of allocating additional dollars in the amount of $179,800 into the Façade Improvement Forgivable Loan Program fund Mr. Thares described the two recent façade applications received, each asking for $100,000; combined a total of $200,000. He said it would be important to allocate sufficient funding into the Façade Improvement Forgivable Loan Program. The current program balance is $21,409.07; the additional recommended allocation would increase the sub-fund balance to $201,209.07. Mr. Thares provided a summary of the downtown projects and funding commitments to date, totaling $321,935 in funding allotted. TRACY HINZ MOVED TO AUTHORIZE ADDITIONAL FUNDING IN THE AMOUNT OF DR A F T EDA Regular Meeting Minutes – September 10, 2025 4 $179,800 TO BE ALLOCATED TO THE FAÇADE IMPROVEMENT FORGIVABLE LOAN PROGRAM. HALI SITTIG SECONDED THE MOTION. Mr. Thares noted the funding is coming from the cash investments line-item into the façade “grant”, which should be noted as the façade loan program. Mr. Thares said both applicants are for property in Block 35. One has been received and will be reviewed at an upcoming EDA meeting. The second one is a potential application. MOTION CARRIED UNANIMOUSLY, 7-0. 5. Economic Development Manager’s Report Mr. Thares reported on the upcoming Let’s Chalk festival taking place over the weekend of September 20-21. He reminded members of the EDA sponsorship and the booth-table to share EDA development information with the public. He invited the members to attend if their schedules permit. Mr. Thares updated the members about the complete Nordic Taphouse façade improvement. He attended Nordic’s soft opening on August 14 and shared photos of the facility. Mayor Hilgart added the mural art painting project is starting today on the north side of the building. Mr. Thares said the EDA and IEDC have participated in nine business retention and expansion (BR&E) visits to date in 2025. Recent visits were with Willows Landing and Pezo Solutions. Mr. Thares spoke on the Initiative Foundation Promise Act funding and noted the kick-off of the Enterprise Academy program starting September 11 through December 4. He shared pictures of the Fairfield Marriott Hotel Development project as well as the Sales Tax collections and the PC Agenda for September. Finally, he reviewed the prospects list. Mayor Hilgart mentioned the Cedar Fair site and asked that more discussion occur about potential development use of the property. He does envision housing and feels it should be something special. He asked that this be a future workshop topic. Mr. Thares said staff would like to present Block 34 concept and direction discussion back to the EDA and it could be linked to the Cedar Fair property due to proximity. The Downtown plans suggest residential development for the Cedar Fair site though more things are changing constantly, and more information may provide new ideas for development of that specific site. 6. Adjourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. MEETING ADJOURNED AT 7:21 P.M. DR A F T EDA Agenda: 11/12/2025 5A. Consideration of Resolution No. 2025-10 authorizing an amendment to Affordable Housing TIF District 1-42 Development Contract related to age designated units Prepared by: Economic Development Manager Meeting Date: 11/12/2025 ☒ 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 adopt Resolution No. 2025-10 authorizing first amendment to Affordable Housing TIF District 1-42 Development Contract designating up to 9 of the 22 housing units as available only for age 55 + households. REFERENCE AND BACKGROUND The EDA is asked to authorize the proposed minor amendment to the Affordable Housing TIF District 1-42 Development Contract wherein up to 9 of 22 twin home units are to be designated as available for rent to age 55 + households. The General Occupancy units included in the Restated and Amended Purchase and Development Contract (TIF 1-42) are proposed to be designated into Affordable Housing TIF District 1-43, through a similar proposed amendment, resulting in up to 9 of 60 units in the first phase development as being available to non- restricted age (all ages) households. While the EDA is asked to act on each TIF District amendment request individually, the proposed amendments are linked and intended to have a collaborative impact on leasing results through the age designation changes. EDA discussion of the proposed concept amendment in for TIF District 1-42 occurred during two recent EDA meetings, October 8, 2025, and October 22, 2025. This request originated by the developer, CHC Monticello II, LLC (also developer of TIF District 1-43 project) to try to provide flexibility in matching up inquiries by various age households for housing units in the two phases of twin homes. According to the developer, there are inquiries for general occupancy income eligible units for the first phase 60 units and there are senior (age 55+) households interested in renting in the phase two project (22 units). If the EDA approves the proposed amendment for TIF District 1-42 as well as TIF District 1-43, all requirements for the total number of affordable units would be retained within the two specific districts and in total across the development. TIF District 1-42 would require 9 of the 22 EDA Agenda: 11/12/2025 units to be rented to low- and moderate-income households while TIF District 1-43 mandates that 24 of 60 units are to be rented to low- and moderate-income households. Again, the EDA attorney has advised that if the EDA determines it wants to move forward with the minor amendments to both TIF District 1-42 and 1-43 that no public hearing is required. The First Amendment document and the EDA Resolution are attached to this report. I. Budget Impact: The estimated budget impact of the proposed TIF District 1-42 and 1-43 modifications are modest at $1,300 +/- which will be paid using the small percentage of increment the EDA is allowed to retain for administrative costs related to the TIF Districts. II. Staff Workload Impact: City staff involved in the work tasks related to the TIF District amendment for both 1-42 and 1-43 includes the Community Development Director, Finance Director, and Economic Development Manager. Consultants involved in this effort include Northland Securities staff and the EDA attorney. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION City staff recommend that the EDA adopt the Resolution approving the minor First Amendment to the Restated and Amended Purchase and TIF 1-42 Development Contract allowing up to 9 of the 22 units to be rented to senior (age 55 +) households. Approving the amendment will provide the developer, CHC Monticello II, LLC, with the necessary flexibility to more easily match rental inquiries to various unit age designations in both twin home development phases (TIF-142 and TIF 1-43). SUPPORTING DATA A. EDA Resolution 2025-10 B. First Amendment – Restated Purchase and Amended Development Contract with CHC Monticello II, LLC C. Map - TIF District 1-42 Affordable Housing Development D. Map - TIF District 1-43 Affordable Housing Development E. Map showing potential shift of age designated units in each TIF District 4938-3713-5479.2 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2025-10 RESOLUTION APPROVING A FIRST AMENDMENT TO AMENDED AND RESTATED PURCHASE AND DEVELOPMENT CONTRACT (TIF 1-42) WHEREAS, the City of Monticello Economic Development Authority (the “Authority”) Authority and the City of Monticello, Minnesota (the “City”) have previously approved a Tax Increment Financing Plan (the “TIF Plan”) for Tax Increment Financing District No. 1-42 (the “TIF District”) located within the Central Monticello Redevelopment Project Area No. 1 (the “Redevelopment Project”), pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1081, and Sections 469.174 to 469.1794, all inclusive and as amended (collectively, the “Act”); and WHEREAS, on September 19, 2024, the Authority and CHC Monticello Townhomes II LLC, a Minnesota limited liability company (the “Developer”) entered into an Amended and Restated Purchase and Development Contract (the “Original Agreement”) whereby the Developer agreed to provide certain tax increment financing assistance to the Developer for the construction of 22 townhome units on property within the City, a portion of which are affordable (the “Minimum Improvements”); and WHEREAS, the Developer has requested that the Original Agreement be amended by the First Amendment to Amended and Restated Purchase and Development Contract (the “Amendment”) to provide the Developer with additional flexibility in renting units at the Minimum Improvements and in a neighboring rental housing development owned by an affiliate of the Developer. NOW THEREFORE, BE IT RESOLVED BY the Board of Commissioners (“Board”) of the City of Monticello Economic Development Authority (the “Authority”) as follows: (a) The Board approves the Amendment in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation, and all other documents, exhibits, certifications, or consents referenced in or attached to the Amendment and any amendments to documents previously executed by the Authority or any other documents required to effectuate the transaction contemplated therein (the “Amendment Documents”). (b) The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Amendment Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Amendment Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Amendment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Amendment Documents shall not be effective until the date of execution thereof as provided herein. 4938-3713-5479.2 2 (c) In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Amendment Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Amendment Documents. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on November 12, 2025. __________________________________ President ATTEST: __________________________________ Secretary 1 4917-9791-7303.2 FIRST AMENDMENT TO AMENDED AND RESTATED PURCHASE AND DEVELOPMENT CONTRACT THIS FIRST AMENDMENT TO AMENDED AND RESTATED PURCHASE AND DEVELOPMENT CONTRACT (the “First Amendment”), made as of the ___ day of __________, 2025, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision under the laws of the State of Minnesota (the “Authority”), and CHC MONTICELLO TOWNHOMES II LLC, a Minnesota limited liability company (the “Developer”). WITNESSETH: WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello (the “HRA”) has undertaken a program to promote economic development and job opportunities and to promote the redevelopment of land which is underutilized within the City of Monticello, Minnesota (the “City”), and in this connection created the Central Monticello Redevelopment Project No. 1 (the “Redevelopment Project”) pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the “HRA Act”), and adopted a redevelopment plan for the Redevelopment Project (the “Redevelopment Plan”); and WHEREAS, the Authority was established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081, as amended (the “EDA Act” and, together with the HRA Act, the “Act”), and was authorized to transact business and exercise its powers by a resolution of the City Council of the City, which also transferred the control and responsibility for the Redevelopment Project from the HRA to the Authority; and WHEREAS, the Authority and City approved a Tax Increment Financing Plan and two separate Modifications to the Tax Increment Financing Plan (collectively, the “TIF Plan”) for Tax Increment Financing (Housing) District No. 1-42 (the “TIF District”), a housing district within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”); and WHEREAS, the Authority and the Developer entered into an Amended and Restated Purchase and Development Contract, dated September 19, 2024 (the “Original Agreement”), recorded on _____________, 2024, with the Wright County Recorder as Document #_________ , whereby the Authority conveyed certain property described in Schedule A (the “Development Property”) to the Developer and the Developer agreed to construct approximately 22 townhome units thereon in exchange for the receipt of tax increment financing assistance from the Authority; and WHEREAS, the parties desire to execute and deliver this First Amendment to amend the Original Agreement to provide more flexibility for the Developer to rent the units within the development contemplated within the Agreement; and NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2 4917-9791-7303.2 1. Amendment to Article I. The definition of Minimum Improvements is hereby deleted and replaced in its entirety with the definition set forth below. “Minimum Improvements” means the construction by the Developer on the Development Property of approximately 22 rental townhome units. All or a portion of 9 of the rental townhome units shall be rented to residents age 55 or older proportionate to the number of units in the Authority’s TIF District 1-43 that are not restricted to 55+ residents. 2. Senior Units. The following paragraph (d) is added to Section 4.6 of the Original Agreement: (d) The Developer agrees 9 townhome rental units shall be rented to residents ages 55 or older. All or a portion of 9 of the rental townhome units shall be rented to residents age 55 or older proportionate to the number of units in the Authority’s TIF District 1-43 that are not restricted to 55+ residents. For example, if 8 units in TIF District 1-43 are not 55+ restricted, then 8 units within the Minimum Improvements shall be rented to residents age 55+ residents. Upon request of the Authority, the Developer shall provide evidence of compliance with this requirement. 3. Definitions. Any capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Original Agreement. Any references to the “Agreement” or “this Agreement” in the Original Agreement shall refer to the Original Agreement, as amended and supplemented by this First Amendment, and as may be further amended and supplemented. 4. Confirmation of Original Agreement. Except as specifically amended by this First Amendment, the Original Agreement is hereby ratified and confirmed and remains in full force and effect. 5. Miscellaneous. Except as amended by this First Amendment, the Original Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority and the City for all out-of-pocket costs incurred by the Authority and the City in connection with negotiating, drafting and approval of this First Amendment. Drafted by: Kutak Rock LLP (GAF) 60 South 6th St Suite 3400 Minneapolis, MN 55402 S-1 4917-9791-7303.2 IN WITNESS WHEREOF, the Authority has caused this First Amendment to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this First Amendment to be duly executed in its name and behalf on or as of the date first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By_________________________________ Its President By_________________________________ Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2025, by ___________________ and ___________________, the President and Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public S-1 4917-9791-7303.2 CHC MONTICELLO TOWNHOMES II LLC, a Minnesota limited liability company By: Community Housing Corporation of America, Inc. Its: sole member By ________________________________________ Wes Butler Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2025 by Wes Butler, the Executive Director of Community Housing Corporation of America, Inc., a Delaware nonprofit corporation, the sole member of CHC Monticello Townhomes II LLC, a Minnesota limited liability company, on behalf of the company. Notary Public A-1 4917-9791-7303.2 SCHEDULE A Development Property The real property in the City of Monticello, County of Wright, State of Minnesota, legally described as follows: Lots 1-23, Block 1, Country Club Manor Fourth Addition TIF 1-4222 Units: Twin Homes EDA Agenda: 11/12/2025 5B. Consideration of Resolution No. 2025-11 authorizing an amendment to Affordable Housing TIF District 1-43 Development Contract allowing general occupancy units and adjusting the TIF District timeline by one calendar year Prepared by: Economic Development Manager Meeting Date: 11/12/2025 ☒ 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 adopt Resolution No. 2025-11 authorizing first amendment to Affordable Housing TIF District 1-43 Development Contract allowing up to 9 of the 60 units to be general occupancy units and adjusting the TIF District timeline by one calendar year REFERENCE AND BACKGROUND The EDA is asked to approve the minor First Amendment to the Affordable Housing TIF District 1-43 Purchase and Development Contract allowing up to 9 of the 60 units to be rented to non- restricted age households (all ages). The amendment concept was reviewed and discussed at the recent October 8, 2025, and October 22 regular EDA meetings. CHC Monticello, LLC, the twin home project developer, requested consideration of the TIF amendment to allow it more flexibility to match rental inquiries of various ages to the available units. It shared that it has leased 50 units to senior (age 55 +) households. The developer further indicates that numerous recent applications for the remaining 10 units have been submitted by households of all ages. The proposed amendment as well as a proposed companion TIF District 1-42 Amendment (item 5A) would help them in renting out the remaining 10 units. While the EDA is asked to act on each TIF District amendment request individually, the proposed amendments are linked and intended to have a collaborative impact on leasing results through the age designation changes. A second component of the proposed amendment adjusts the timeline of the TIF District by one full calendar year to accommodate for Wright County’s error resulting in missed increment payments to the EDA-City in 2025. This aspect of the amendment sets the TIF District starting point timeline as 2026 and identifies the endpoint (decertification) as 2051 (a 25-year time frame which is typical of affordable housing TIF Districts). This aspect of the amendment is not optional and requires affirmative EDA action to formalize it. EDA Agenda: 11/12/2025 Again, all requirements for the total number of affordable units in the two TIF Districts are not impacted by the proposed amendments. The original number of affordable units remains the same in TIF District 1-42 which is required to have 9 of 20 units rented to low- and moderate- income households and likewise in TIF District 1-43 which mandates 24 of 60 units to be rented to low- and moderate- income households. Again, the EDA attorney has advised that both proposed TIF District 1-42 and 1-43 amendments are minor in nature that no public hearing is required. The first amendment document and the EDA resolution are attached to this staff report. I. Budget Impact: The estimated budget impact of the proposed TIF District 1-42 and 1-43 modifications are modest at $1,350 +/- which will be paid using the small percentage of increment the EDA is allowed to retain for administrative costs related to the TIF Districts. II. Staff Workload Impact: City staff involved in the work tasks related to the TIF District amendment for both 1-42 and 1-43 includes the Community Development Director, Finance Director, and Economic Development Manager. Consultants involved in this effort include Northland Securities staff and the EDA attorney. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION City staff recommend that the EDA approve the minor First Amendment to Purchase and TIF District 1-43 Development Contract with CHC Monticello, LLC allowing up to 9 of 60 units to be rented to non-restricted age (all ages) households and to also adjust the start and endpoint timeline for the TIF District due to administrative errors by Wright County resulting in delayed increment payments to the EDA-City. The change in the age designation for up to 9 units will provide the developer with more flexibility to match rental inquiries from households of various ages with available units. SUPPORTING DATA A. EDA Resolution 2025-11 B. First Amendment – Purchase and Development Contract with CHC Monticello, LLC C. Map - TIF District 1-42 Affordable Housing Development D. Map - TIF District 1-43 Affordable Housing Development E. Map showing potential shift of age designated units in each TIF District A-1 4915-2843-3783.1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2025-11 RESOLUTION APPROVING A FIRST AMENDMENT TO PURCHASE AND DEVELOPMENT CONTRACT (TIF 1-43) WHEREAS, the City of Monticello Economic Development Authority (the “Authority”) Authority and the City of Monticello, Minnesota (the “City”) have previously approved a Tax Increment Financing Plan (the “TIF Plan”) for Tax Increment Financing District No. 1-43 (the “TIF District”) located within the Central Monticello Redevelopment Project Area No. 1 (the “Redevelopment Project”), pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1081, and Sections 469.174 to 469.1794, all inclusive and as amended (collectively, the “Act”); and WHEREAS, the Authority and Headwaters Development LLC, a Minnesota limited liability company (“Headwaters”), entered into that certain Purchase and Development Contract, dated as of November 30, 2022, which was assigned by Headwaters to the Developer, pursuant to that certain Assignment and Assumption of Development Contracts dated as of November 30, 2022, by and among Headwaters, the Authority, the City, and CHC Monticello Townhomes LLC, a Minnesota limited liability company (the “Developer”) (collectively, the “Original Agreement”); and WHEREAS, pursuant to the Original Agreement, the Developer agreed to construct approximately 60 rental housing units with attached two-car garages on property within the City, a portion of which are affordable (the “Minimum Improvements”); and WHEREAS, Wright County (the “County”), as a result of an error or mistake, incorrectly certified the TIF District resulting in a delay in the full receipt of tax increment from the TIF District; and WHEREAS, pursuant to Minnesota Statutes, Section 469.133, as amended, the County has agreed to extend the duration of the TIF District for one year to correct the error; and WHEREAS, the parties desire to execute and deliver this First Amendment Purchase and Development Contract (the “Amendment”) to amend the Original Agreement to reflect the extension of the TIF District and to provide more flexibility for the Developer with additional flexibility in renting units; and NOW THEREFORE, BE IT RESOLVED BY the Board of Commissioners (“Board”) of the City of Monticello Economic Development Authority (the “Authority”) as follows: (a) The Authority is hereby authorized to enter into the Amendment, together with any related documents necessary in connection therewith, and all other documents, exhibits, certifications, or consents referenced in or attached to the Amendment or necessary to effectuate the transaction described therein including but not limited to the TIF Note and all documents required by the Developer’s lender (the “Amendment Documents”). (b) The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Amendment 4915-2843-3783.1 Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Amendment Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Amendment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Amendment Documents shall not be effective until the date of execution thereof as provided herein. (c) In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Amendment Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Amendment Documents. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority on November 12, 2025. __________________________________ President ATTEST: __________________________________ Secretary 1 4896-4833-6759.2 FIRST AMENDMENT TO PURCHASE AND DEVELOPMENT CONTRACT THIS FIRST AMENDMENT TO PURCHASE AND DEVELOPMENT CONTRACT (the “First Amendment”), made as of the ___ day of __________, 2025, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision under the laws of the State of Minnesota (the “Authority”), and CHC MONTICELLO TOWNHOMES LLC, a Minnesota limited liability company (the “Developer”). WITNESSETH: WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello (the “HRA”) has undertaken a program to promote economic development and job opportunities and to promote the redevelopment of land which is underutilized within the City of Monticello, Minnesota (the “City”), and in this connection created the Central Monticello Redevelopment Project No. 1 (the “Redevelopment Project”) pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the “HRA Act”), and adopted a redevelopment plan for the Redevelopment Project (the “Redevelopment Plan”); and WHEREAS, the Authority was established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081, as amended (the “EDA Act” and, together with the HRA Act, the “Act”), and was authorized to transact business and exercise its powers by a resolution of the City Council of the City, which also transferred the control and responsibility for the Redevelopment Project from the HRA to the Authority; and WHEREAS, the Authority and City approved a Tax Increment Financing Plan and two separate Modifications to the Tax Increment Financing Plan (collectively, the “TIF Plan”) for Tax Increment Financing (Housing) District No. 1-43 (the “TIF District”), a housing district within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”); and WHEREAS, the Authority and Headwaters Development LLC, a Minnesota limited liability company (“Headwaters”) entered into that certain Purchase and Development Contract, dated as of November 30, 2022, recorded on December 5, 2022 with the Wright County Recorder as Document #A1522155, which was assigned by Headwaters to the Developer, pursuant to that certain Assignment and Assumption of Development Contracts dated as of November 30, 2022, by and among Headwaters, the Authority, the City, and the Developer, recorded on December 5, 2022, with the Wright County Recorder as Document #A1522163 (collectively, the “Original Agreement”); and WHEREAS, pursuant to the Original Agreement, the Developer agreed to construct approximately 60 rental housing units for seniors with attached two-car garages on the certain property described in Exhibit A attached hereto (the “Development Property”); and WHEREAS, Wright County (the “County”), as a result of an error or mistake, incorrectly certified the TIF District resulting in a delay in the full receipt of tax increment from the TIF District; and 2 4896-4833-6759.2 WHEREAS, pursuant to Minnesota Statutes, Section 469.133, as amended, the County has agreed to extend the duration of the TIF District for one year to correct the error; and WHEREAS, the parties desire to execute and deliver this First Amendment to amend the Original Agreement to reflect the extension of the TIF District and to provide more flexibility for the Developer to rent the units within the development contemplated within the Original Agreement; and NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 3 4896-4833-6759.2 1. Amendment to Article I. The definition of Minimum Improvements and Payment Date are hereby replaced in their entirety with the definitions set forth below. “Minimum Improvements” means the construction by the Developer on the Development Property of approximately 60 rental housing units with attached two-car garages. The Developer agrees 51 rental units shall be rented to residents ages 55 or older. All of a portion of the remaining 9 units may be rented without the 55+ age restriction, provided an equal number of units in the Authority’s TIF District 1-42 are reserved for 55+ households. “Payment Date” means August 1 of the year commencing on August 1, 2026 and each February 1 and August 1 thereafter until the Termination Date. 2. Senior Units. The following paragraph (d) is added to Section 4.6 of the Original Agreement: (d) The Developer agrees 51 townhome rental units shall be rented to residents ages 55 or older. All of a portion of the remaining 9 units may be rented without the 55+ age restriction, provided an equal number of units in the Authority’s TIF District 1-42 are reserved for 55+ households. For example, if 8 units in TIF District 1-42 are 55+ restricted, then 8 units within the Minimum Improvements shall be rented to residents without age restrictions. Upon request of the Authority, the Developer shall provide evidence of compliance with this requirement. 3. TIF Note. The TIF Note attached to Schedule F of the Original Agreement shall be deleted and replaced with the TIF Note attached hereto as Exhibit B. 4. Definitions. Any capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Original Agreement. Any references to the “Agreement” or “this Agreement” in the Original Agreement shall refer to the Original Agreement, as amended and supplemented by this First Amendment, and as may be further amended and supplemented. 5. Confirmation of Original Agreement. Except as specifically amended by this First Amendment, the Original Agreement is hereby ratified and confirmed and remains in full force and effect. 6. Miscellaneous. Except as amended by this First Amendment, the Original Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority and the City for all out-of-pocket costs incurred by the Authority and the City in connection with negotiating, drafting and approval of this First Amendment. Drafted by: Kutak Rock LLP (GAF) 60 South 6th St Suite 3400 4 4896-4833-6759.2 Minneapolis, MN 55402 S-1 4896-4833-6759.2 IN WITNESS WHEREOF, the Authority has caused this First Amendment to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this First Amendment to be duly executed in its name and behalf on or as of the date first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By_________________________________ Its President By_________________________________ Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2025, by ___________________ and ___________________, the President and Executive Director of the City of Monticello Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public S-1 4896-4833-6759.2 CHC MONTICELLO TOWNHOMES LLC, a Minnesota limited liability company By: Community Housing Corporation of America, Inc. Its: sole member By ________________________________________ Wes Butler Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2025 by Wes Butler, the Executive Director of Community Housing Corporation of America, Inc., a Delaware nonprofit corporation, the sole member of CHC Monticello Townhomes LLC, a Minnesota limited liability company, on behalf of the company. Notary Public S-1 4896-4833-6759.2 Agreed and Consented to by: BREMER BANK, NATIONAL ASSOCIATION By ________________________________________ Its ____________________________________ STATE OF MINNESOTA ) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2025 by _________________, the ________________ of Bremer Bank, National Association, a national banking association, on behalf of the bank. Notary Public A-1 4896-4833-6759.2 SCHEDULE A Development Property The real property in the City of Monticello, County of Wright, State of Minnesota, legally described as follows: Lots 1-21, Block 1, Country Club Manor Second Addition Lots 1-11, Block 2, Country Club Manor Second Addition Lots 1-11, Block 3, Country Club Manor Second Addition Lots 1-21, Block 4, Country Club Manor Second Addition Outlot B, Country Club Manor Second Addition Outlot C, Country Club Manor Second Addition B-1 4896-4833-6759.2 EXHIBIT B FORM OF TIF NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $_____________ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20__ (HEADWATERS VILLAS PROJECT) Date Rate of Original Issue [lesser of 4.50% or Developer’s actual financing rate] ___________, 20__ The City of Monticello Economic Development Authority (the “Authority”) for value received, certifies that it is indebted and hereby promises to pay to CHC Monticello Townhomes LLC, a Minnesota limited liability company, or registered assigns (the “Owner”), the principal sum of $__________ and to pay interest thereon at the rate of _____________ percent (___%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Development Contract, dated as of November 30, 2022, between the Authority and Headwaters Development LLC (“Headwaters”), which was assigned by Headwaters to the Developer, pursuant to that certain Assignment and Assumption of Development Contracts, dated as of November 30, 2022, by and among Headwaters, the Authority, the City of Monticello, and the Developer, and as amended by the First Amendment to Purchase and Development Contract, dated as of November __, 2025 (collectively, the “Agreement”). 1. Payments. Principal and interest (the “Payments”) shall be paid on August 1, 2026 and each February 1 and August 1 thereafter (“Payment Dates”) to and including February 1, 2042 (the “Maturity Date”) in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. TIF Note Available Tax Increment will not include any Tax Increment (as defined the Agreement) if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon sixty (60) days written notice to the Authority. Payments on this TIF Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. The Note shall bear simple non-compounding interest. B-2 4896-4833-6759.2 3. TIF Note Available Tax Increment. (a) Payments on this TIF Note are payable on each Payment Date solely from and in the amount of TIF Note Available Tax Increment, which shall mean, on each Payment Date, seventy-nine and four-tenths percent (79.4%) of the Tax Increment attributable to the Minimum Improvements and Development Property that is actually paid to the Authority by Wright County in the six (6) months preceding the Payment Date. (b) The Authority shall have no obligation to pay principal of and interest on this TIF Note on each Payment Date from any source other than TIF Note Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this TIF Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of TIF Note Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on the Maturity Date. 4. Default. The Authority’s payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this TIF Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this TIF Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this TIF Note, the Authority shall have no further obligation under this TIF Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this TIF Note and the interest thereon, and said provisions are hereby incorporated into this TIF Note as though set out in full herein. 5. Prepayment. The principal sum and all accrued interest payable under this TIF 6. Nature of Obligation. This TIF Note is one of an issue in the total principal amount of $_________, issued to aid in financing certain public development costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, as amended, and Section 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the Authority on June 8, 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This TIF Note is a limited obligation of the Authority which is payable solely from TIF Note Available Tax Increment pledged to the payment hereof under the Resolution. This TIF Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City of Monticello, Minnesota (the “City”). Neither the State of Minnesota, the City, the Authority nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF Note or other costs incident hereto except out of TIF Note Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota , the City, the Authority, or any political subdivision thereof is pledged to the payment of the principal of or interest on this TIF Note or other costs incident hereto. THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE TIF NOTE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. B-3 4896-4833-6759.2 7. Registration and Transfer. This TIF Note is issuable only as a fully registered TIF Note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this TIF Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Executive Director, by the Owner hereof in person or by such Owner’s attorney duly authorized in writing, upon surrender of this TIF Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new TIF Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates, within 15 days after the delivery by the Owner of its request and approval of such request by the Authority if required under the Agreement. Except as otherwise provided in the Agreement, this TIF Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer and the Authority is provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth (15th) day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this TIF Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the City of Monticello Economic Development Authority have caused this TIF Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Executive Director President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within TIF Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner Signature of Executive Director _________, 20__ _____________________ Federal Tax I.D No_____________ N79°54'18"E 1 3 8 . 8 8 S48 ° 5 9 ' 5 1 " W 1 1 8 . 0 0 S3 1 ° 4 3 ' 5 6 " W 1 4 6 . 8 8 N1 8 ° 4 5 ' 0 8 " E 1 6 4 . 5 6 R=552.67 Δ=47°50'43"L=461.51 S 4 1 ° 0 0 ' 0 9 " E 5 4 2 . 2 8 R = 1 0 0 . 0 0 Δ =92°40'25" L=161.7 5 S2 5 ° 0 1 ' 4 2 " W 1 5 2 . 0 0 S2 5 ° 0 1 ' 4 2 " W 1 2 2 . 2 6 S2 5 ° 0 1 ' 4 2 " W 1 2 2 . 2 7 208.25 R=522.67 Δ=20°37'17"L=188.11 171.05 R=582.67 Δ=47°50'43"L=486.56 5 4 2 . 2 8 5 4 2 . 2 8 R = 5 2 2.6 7 Δ = 2 0°3 8'3 5" L =188.31 S51 ° 4 0 ' 1 6 " W 47.9 1 N51 ° 4 0 ' 1 6 " E 48.8 5 N51 ° 4 0 ' 1 6 " E 48.7 9 S 0 9 ° 0 1 ' 1 5 " E 4 2 . 1 9 S 4 1 ° 0 0 ' 0 9 " E 5 0 . 3 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 8 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 N45 ° 3 3 ' 3 7 " E 7 2 . 0 0 N 4 4 ° 2 6 ' 2 3 " W 6 1 . 0 0 S45 ° 3 3 ' 3 7 " W 7 2 . 0 0 S 4 4 ° 2 6 ' 2 3 " E 6 1 . 0 0 S45 ° 3 3 ' 3 7 " W 7 2 . 0 0 N35 ° 5 4 ' 2 8 " E 7 2 . 0 0 S 5 4 ° 0 5 ' 3 2 " E 6 1 . 0 0 S35 ° 5 4 ' 2 8 " W 7 2 . 0 0 S35 ° 5 4 ' 2 8 " W 7 2 . 0 0 N 5 4 ° 0 5 ' 3 2 " W 6 1 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 S 4 1 ° 0 0 ' 0 9 " E 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N 4 1 ° 0 0 ' 0 9 " W 6 1 . 0 0 S48 ° 5 9 ' 5 1 " W 7 2 . 0 0 N44 ° 3 8 ' 5 7 " E 7 2 . 0 0 S 4 5 ° 2 1 ' 0 3 " E 6 1 . 0 0 S44 ° 3 8 ' 5 7 " W 7 2 . 0 0 N 4 5 ° 2 1 ' 0 3 " W 6 1 . 0 0 S44 ° 3 8 ' 5 7 " W 7 2 . 0 0 N38 ° 0 3 ' 1 8 " E 7 2 . 0 0 S 5 1 ° 5 6 ' 4 2 " E 6 1 . 0 0 S38 ° 0 3 ' 1 8 " W 7 2 . 0 0 N 5 1 ° 5 6 ' 4 2 " W 6 1 . 0 0 S38 ° 0 3 ' 1 8 " W 7 2 . 0 0 N3 1 ° 4 3 ' 5 6 " E 7 2 . 0 0 S5 8 ° 1 6 ' 0 4 " E 6 1 . 0 0 S3 1 ° 4 3 ' 5 6 " W 7 2 . 0 0 N 5 8 ° 1 6 ' 0 4 " W 6 1 . 0 0 S3 1 ° 4 3 ' 5 6 " W 7 2 . 0 0 N48 ° 5 9 ' 5 1 " E 7 2 . 0 0 N1 8 ° 4 5 ' 0 8 " E 7 2 . 0 0 S71° 1 4 ' 5 2 " E 6 1 . 0 0 S1 8 ° 4 5 ' 0 8 " W 7 2 . 0 0 N71° 1 4 ' 5 2 " W 6 1 . 0 0 S1 8 ° 4 5 ' 0 8 " W 7 2 . 0 0 N1 2 ° 0 8 ' 0 2 " E 7 2 . 0 0 S77°51' 5 8 " E 6 1 . 0 0 S1 2 ° 0 8 ' 0 2 " W 7 2 . 0 0 N77°51' 5 8 " W 6 1 . 0 0 S1 2 ° 0 8 ' 0 2 " W 7 2 . 0 0 N0 5 ° 3 4 ' 5 3 " E 7 2 . 0 0 S84°25'07"E 61. 0 0 S0 5 ° 3 4 ' 5 3 " W 7 2 . 0 0 N84°25'07"W 61 . 0 0 S0 5 ° 3 4 ' 5 3 " W 7 2 . 0 0 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 N88°50'52"W 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 S0 1 ° 1 3 ' 2 8 " W 1 1 7 . 9 9 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 N88°50'52"W 61.00 N1 4 ° 2 0 ' 4 3 " E 7 2 . 0 0 S75°3 9 ' 1 7 " E 6 1 . 0 0 S1 4 ° 2 0 ' 4 3 " W 7 1 . 9 9 S75°3 8 ' 2 6 " E 6 1 . 0 0 S1 4 ° 2 0 ' 4 3 " W 7 2 . 0 0 N0 4 ° 4 2 ' 0 7 " E 7 2 . 0 0 S85°17'53"E 61.00 S0 4 ° 4 2 ' 0 7 " W 7 2 . 0 0 S85°17'53"E 61.00 S0 4 ° 4 2 ' 0 7 " W 7 2 . 0 0 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 S88°50'52"E 61.00 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 S0 1 ° 0 9 ' 0 8 " W 7 2 . 0 0 N0 1 ° 0 9 ' 0 8 " E 7 2 . 0 0 S88°50'52"E 61.00 N0 1 ° 1 3 ' 2 8 " E 1 1 7 . 6 2 30.5030.50 30.50 30.5030.5030.50 30.50 30.50 30.50 30.50 30.50 30.5030.5030.50 30.50 30.50 30.50 30.50 30.50 30.50 30.5 0 30.5 0 30.50 30.50 30.50 30.50 30.50 30.50 30.50 30.50 30.5030.5030.5030.5030.5030.50 30.50 30.50 30.5 0 30.5 0 30 . 5 0 30 . 5 0 30 . 5 0 30 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 3 0 . 5 0 Δ=5°56'24" L=60.41 384.9718.85 N 2 1 ° 0 1 ' 0 1 " W 6 0 . 0 0 3 9 6 . 7 2 2 8 5 . 7 8 N 4 1 ° 0 0 ' 0 9 " W 1 2 6 6 . 1 1 R = 3 7 1 9 . 7 2 Δ = 6 ° 3 4 '2 5 " L= 4 2 6.7 7 N88°50'52"W 1035.79 S88°50'52"E 322.43 R =400.67 Δ=47°50'43" L=334.58 S 4 1 ° 0 0 ' 0 9 " E 6 1 7 . 4 2 S88°50'52"E 220.47 631.96 Δ=19°37'44"L=137.26 Δ = 1 9 ° 3 7'4 3" L = 13 7.26 Δ = 2 3 ° 5 6'0 8" L = 2 3 0.88 Δ=23°54'35"L=230.63 Δ = 2 0°5 1'3 8" L = 212.14 Δ=21°02'41"L=214.01 Δ = 5 ° 1 8 ' 2 0 " L = 3 4 4 . 4 5 Δ = 1° 1 6'0 5 " L = 8 2.3 2 Δ = 9 2 ° 4 0 ' 2 5" L=113.22 Δ = 9 2 ° 40'25" L=210.27 C 1 44.93 5 2 . 6 8 C 2 C 3 C4 C5 L 1 L 2 L 3 L 5 L 6 L 7 L 8 L 9 L 1 1 L12 L13 L14 L15 L16 L1 7 L1 8 L19L20 L21 L22 L2 3 L24 L 2 5 L 2 6 L 2 7 L 2 8 L 2 9 L 3 1 L 3 2 L 3 3 L34 94.07228.36 126.13 4 8 9 . 6 0 Δ = 5 9 ° 0 1 ' 4 5 " L =13 3.93 Δ=33°38'4 0" L =76 .3 4 3 0 . 5 0 L 4 3 2 . 3 9 2 7 . 6 1 N86°54'46"E 60.00 C6 Δ =2 6 8 °1 9 '1 5 " L =280.98 R =6 0.0 0 Δ=287°55'47" L = 3 0 1 . 5 2 L 1 0 L 3 0 PARCEL LINE DATA LINE NO. L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 L11 L12 L13 L14 L15 L16 L17 L18 L19 L20 LENGTH 7.49 10.17 10.17 10.17 10.17 10.16 10.17 10.17 10.41 10.40 44.24 44.08 22.54 14.81 10.17 10.17 24.48 23.73 10.17 14.45 BEARING S41° 00' 09"E S40° 58' 52"E S41° 00' 09"E S41° 00' 09"E S41° 00' 09"E S41° 00' 09"E S41° 00' 09"E S41° 00' 09"E S35° 16' 01"E S49° 41' 27"E S22° 36' 13"E N72° 27' 16"E S80° 37' 54"E N87° 24' 26"E S88° 50' 52"E S88° 50' 53"E N25° 15' 35"E S5° 50' 55"W N88° 50' 52"W S89° 59' 09"W L21 L22 L23 L24 L25 L26 L27 L28 L29 L30 L31 L32 L33 L34 16.45 16.56 25.22 25.31 16.13 16.42 14.64 10.17 10.17 10.17 10.17 10.17 10.17 23.55 N81° 01' 22"W N74° 35' 07"W N7° 07' 30"E N43° 19' 01"E N55° 02' 56"W N48° 16' 52"W S39° 25' 30"E S41° 00' 09"E S41° 00' 09"E S41° 00' 15"E S41° 00' 09"E S41° 00' 03"E S41° 00' 15"E N67° 22' 09"E 0 50'100' COUNTRY CLUB MANOR SECOND ADDITION = DENOTES CAST IRON MONUMENT = DENOTES FOUND IRON MONUMENT = DENOTES 1/2 INCH DIAMETER BY 18 INCH LONG IRON PIPE MONUMENT SET AND MARKED RLS# 45352 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1098 7654321 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 SHEET 2 OF 2 ORIENTATION OF THIS BEARING SYSTEM IS BASED ON NORTH LINE OF THE NORTHWEST QUARTER OF SECTION 10, TOWNSHIP 121 NORTH, RANGE 25 WEST, HAVING AN ASSUMED BEARING OF SOUTH 89°10'28" WEST OUTLOT C OUTLOT B OUTLOT A BLOCK 5 21 11 11 21 B L O C K 1 B L O C K 4 BLOCK 2 BLOCK 3 30 30 30 30 30 30 DESIGN TREE ENGINEERING AND LAND SURVEYING PARCEL CURVE DATA CURVE NO. ARC LENGTH RADIUS DELTA C1 301.41 482.77 35°46'18" C2 30.02 482.77 3°33'46" C3 22.53 482.77 2°40'25" C4 30.03 400.67 4°17'39" C5 30.03 400.67 4°17'38" C6 20.53 60.00 19°36'32" T E E B O X T R A I L TE E B O X D R I V E 1 1 INCH = 100 FEET 1/2" REBAR 1/2" PIPE CAP #7439 CAP #15233 CAP #15233 TIF 1-4360 Units EDA Agenda: 11/12/2025 6. Economic Development Manager’s Report Prepared by: Economic Development Manager Meeting Date: 11/12/2025 ☒ Other Business Reviewed by: N/A Approved by: N/A REFERENCE AND BACKGROUND 1. Business Retention & Expansion Efforts: The Industrial and Economic Development Committee (IEDC) and EDA have completed 10 BR&E visits to date. A recent visit was with Pedego Electric Bikes, 321 Walnut Street, on October 30, 2025. Please see Exhibit A for a summary of the Pedego Electric Bike BR&E visit. 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. Staff will try to schedule a couple more visits in November. 2. Downtown Rounds – November 20, 2025, 8:00 a.m. at Coco Maas, 242 West Broadway: Staff held the relaunch of the Downtown Rounds on September 18, 2025, at Nordic Tap House. Outreach efforts included 40 hand-delivered flyers and a mailing to all property owners in the downtown area. The downtown area includes businesses from the river on the north to 6th street on the south, to Cedar Street on the east, to Locust on the west. Four businesses were in attendance, and staff continue to engage with property owners for the next downtown rounds meeting in November. 3. Planning Commission Meeting Agendas – November 2, 2025: See attached Exhibit B. 4. Local Sales Tax – August 2025 – See attached Exhibit C. EDA Agenda: 11/12/2025 5. Prospect List – November 7, 2025: Please see Exhibit D. PEDEGO ELECTRIC BIKES ABOUT THE BUSINESS Pedego Electric Bikes has been serving the Monticello community for more than 5 years, opening in 2019 with more than 60 bikes for sale and rental to the public. Repair and warranty services are also provided to the public. WHAT WE LEARNED The owners previously lived in Brooklyn for 35 years before moving the business to Monticello as a retirement business. The typical client of the bike shop is in their 50s to 70s, buying bikes averaging $2,500. The typical electric bike is built in Vietnam, China, or Amsterdam, and can travel 35 to 40 miles on a single charge. The business faces challenges, including a market shift towards online sales rather than in-store, a challenging sales environment for e-bikes, and winter maintenance of city infrastructure for cyclists. BUSINESS RETENTION & EXPANSION VISIT LOCATION: 321 Walnut St DATE OF VISIT: October 30, 2025 AGENDA REGULAR MEETING – PLANNING COMMISSION MONDAY, NOVEMBER 3, 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 • Special Meeting – August 19, 2025 • Regular Meeting - September 2, 2025 • Joint City Council & Planning Commission Workshop - September 24, 2025 To be approved by the City Council • Joint City Council & Planning Commission Workshop - October 7, 2025 Approved by the City Council on October 27, 2025 • Regular Meeting - October 7, 2025 F. Citizen Comment 2. Public Hearings None 3. Regular Agenda A. Consideration of an update on the Monticello Industrial Alternative Urban Areawide Review PLANNING COMMISSION WORKSHOP Monticello Community Center 5:00 p.m. Discussion on Amendments to 2040 Vision + Plan and Zoning Ordinance for single-family housing goals 7:00 p.m. JOINT CITY COUNCIL & PLANNING COMMISSION - Data Center Land Use & Ordinance Discussion Planning Commission Regular Meeting Agenda – 11/03/2025 2 B. Consideration to take from the table the proposed amendments to Monticello City Code, Title XV, Land Usage, Chapter 153: Zoning Ordinance to define and regulate data center and technology campus land uses within the City and to call for a public hearing on the ordinance on December 2, 2025 4. Other Business A. Community Development Director’s Report 5. Adjournment AGENDA MONTICELLO PLANNING COMMISSION WORKSHOP Monday, November 3, 2025 – 5:00 p.m. 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, Bob Ferguson, Tyler Bevier 1. General Business A. Call to Order B. Roll Call C. Discussion on Amendments to 2040 Vision + Plan and Zoning Ordinance for single-family housing goals 2. Adjournment AGENDA WORKSHOP – JOINT CITY COUNCIL & PLANNING COMMISSION Monday, November 3, 2025 – 7:00 p.m. Mississippi Room, Monticello Community Center City Councilmembers: Mayor Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz, Lee Martie Commissioners: Chair Andrew Tapper, Vice-Chair Melissa Robeck, Rick Kothenbeutel, Teri Lehner, Rob Stark Staff: Rachel Leonard, Angela Schumann, Matt Leonard, Bob Ferguson, Tyler Bevier 1. General Business A. Call to Order B. Roll Call C. Review and discussion on draft amendment to City Code, Title XV, Land Usage, Chapter 153: Zoning Ordinance to define and regulate data center and technology campus land uses within the City 2. Adjournment Collection Month Amount Collected Admin Fees Admin Start Up Fees Total Received May-25 175,249.36$ (1,577.24)$ (16,116.45)$ 157,555.67$ Jun-25 204,919.19$ (1,844.27)$ 203,074.92$ Jul-25 203,551.14$ (1,831.96)$ 201,719.18$ Aug-25 217,249.10$ (1,955.24)$ 215,293.86$ Sep-25 -$ Oct-25 -$ Nov-25 -$ Dec-25 -$ Jan-26 -$ Feb-26 -$ Mar-26 -$ Apr-26 -$ May-26 -$ Jun-26 -$ 800,968.79$ (7,208.71)$ (16,116.45)$ 777,643.63$ Monticello Local Option Sales Tax 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 Puased 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 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 7,000 sq. ft. +/-0 25 $2,300,000 Identified Site 5/30/2024 Project EP-BDDC LACW Data Center - Hyper Scale New Construction 2,150,000 sq. ft. +/-0 190 $3,000,000,000 Identified Site 7/30/2024 Project EPG 40x2-50 Industrial New Construction 40,000 sq. ft. 0 40 $4,000,000 Active Search 9/2/2024 Project Scannell Data Ctr Data Center Enterprise New Construction 1,200,000 sq. ft. +/-0 135 $2,000,000,000 Identified Site 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 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 9/4/2025 Project Starfish Industrial New Construction 70,000 sq. ft. to 92,000 sq. ft. $8,500,000 Active Search 9/26/2025 Project EX Lobster Industrial New Construction 20,000 to 22,000 sq. ft.??$5,800,000 Active Search 10/24/2025 Project 43100-2KJ Industrial New Construction 1,275,000 sq. ft.1,350 $1,900,000,000 Active Search Contacts: M = 03 YTD = 25 PROSPECT LIST 11/07/2025