EDA Meeting Minutes - 01/14/2026 (Workshop)MINUTES
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, January 14, 2026 — 4:45 p.m.
Academy 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, Tyler Bevier
Guests: Mike Munson
1. Call to Order
President Steve Johnson called the workshop meeting of the Monticello Economic
Development Authority to order at 4:45 p.m.
2. Roll Call
Mr. Johnson called the roll.
3. GMEF Loan Pre-App Review — Kid's Haven Day Care — Missy Sjolin
Mr. Thares reintroduced the loan applicant to the EDA and staff, having met with the
members nearly two years prior; spoke to the City -owned site and proposal for $6.9 million
daycare center development and request for $250,000 loan toward equipment and the
building. He indicated the printed business plan is for review purposes only for discussion;
full pre -application materials have been received.
Missy Sjolin, Director and co-owner of Kid's Haven LLC, explained the history to establish
early childhood education and care in Buffalo, the thirty-four year legacy created for
additional branch expansions in Waverly and Monticello, and the need and value of the
program to suffice a deficit of 600 childcare spots in Wright County. She explained how the
shortage affects overall strains for available childcare within the community and of the
economic impacts for a facility in Monticello. She provided a project overview on the
proposal for 27,000 square foot early child education and care facility essential to
maintaining the workforce for Monticello citizens and employees.
Ms. Sjolin explained the requested $250,000 loan will suffice a one-time capital expense,
possible land accusation, furnishings, and outdoor play equipment, while leveraging quality
care and affordable tuition costs. Ms. Sjolin said to have worked with Old National Bank on
lending options. She explained the proposal meets the EDA criteria for workforce creation
for 70 jobs, retention for and after development, and goal of 50 fully staffed positions within
six months after business opening, prospects are standing by.
Ms. Sjolin explained the pipeline program for early childhood education in line with State
standards and opportunities for employee continued education. She explained how the
tuition rates and fee schedule are affected by maintaining total project loans not to exceed
$5 million —the EDA's contribution will assist in keeping rates affordable overall.
EDA Workshop Minutes —January 14, 2026
Ms. Sjolin said to have obtained a group of general contractors bidding for the project but
has not selected one to contract with yet. She explained that if the bids come back higher
than $5 million, the bank is willing to offer additional lending funds and stressed on
maintaining tuition fees at current and reason for the $5 million goal.
When asked how the square footage was calculated, Ms. Sjolin briefly explained the State
standards for class sizes per student and space required; explained sustainability availability
per 150 enrolled including gym and kitchen facilities for common use.
When a member referenced the Wright County childcare deficit and demand for placement,
Ms. Sjolin said to have considered a larger facility depending on approved financials; said
enrollment numbers are anticipated at 316 children for the Monticello facility.
Mr. Johnson asked if the building and equipment will be owned by one entity and
referenced lease payments; asked for occupancy and revenue "break even" points.
Ms. Sjolin explained the 50/50 owner partnership and occupancy would provide debt
payment; said the financial plan is included in the handout and noted at least 150 kids
needed at minimum to sustain and become profitable.
Mr. Thares asked if the 150 needed was firm based on varying schedules for enrollment.
Ms. Sjolin explained the daily, weekly, and flexible rate structure varies and averaged the
weekly rate at $140 based on licensure for 372 with 600 enrolled.
Ms. Sjolin said to have $3.5 million in equity from the current Buffalo building after building
debts area paid with intent for 10% down -payment per combined 504 and SBA loan
agreement.
Mr. Thares estimated an equity down -payment between $700,000-750,000 and no greater
than $800,000 per the 50/40/10 formula.
Ms. Sjolin said to have the capability for up to $1.4 million down or 20% down.
Members and Mr. Thares conversed over the applicant's potential lending options by Old
National Bank to subsidize the $250,000 for equipment under the GMEF loan; spoke to the
nature for public funding for public use.
Ms. Sjolin said to anticipate ground -breaking for the project in Spring 2026. Staff confirmed
all application components are aligned for swift planning amid development considerations.
Members agreed the pre -application meets all requirements and fits the EDA criteria and to
allow the lending bank to prepare the underwriting documents.
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EDA Workshop Minutes — January 14, 2026
Ms. Schumann and Mr. Thares discussed the land use components of the subject property
relating to easements and access as they relate to the City -owned properties within
proximity of the area to be platted.
4. Peter Stalland Proposal for materials Industrial Development in Otter Creek Business Park
OCBP
Mr. Thares introduced the applicant to the EDA; explained the approach to pursue new
industrial building development within the approx. 52.50 acres remaining in the Otter Creek
Business Park (OCBP); he explained a new industrial building of 75,000 square feet with an
investment of approximately $8,850,000 +/- would add real estate value to the property tax
rolls reflecting the total investment, despite no identified building occupant -tenant as of this
date.
Peter Stalland, a Twin Cities metro developer and former modular home manufacturing firm
owner, provided history and spoke of current developments in greater Minnesota and New
Mexico. Mr. Stalland said he developed and sold the Savannah Vista project to another and
is familiar with Monticello projects; he requested City assistance with tenant placement for
financial underwriting, emphasized the deal needs to work with the bank, the tenant, and
his own devices. He said to have spoken with Mr. Thares regarding TIF financing and
explained his investments, risks, and shared partnership with EDA to locate and produce a
user. Mr. Stalland spoke to the history of working with another predominant developer to
produce a product worth over $100 million. He suggested to offer his development services
to facilitate subordinate financing, spoke to working with the brokerage community to best
identify potential tenants.
Ms. Hinz posed the question — Why does the applicant want to do this and why now? Mr.
Stalland said timing and finances were in his favor.
Mr. Thares clarified that staff is unaware of any immediate development activities other
than land sale of a small sliver of land; he explained other developments have taken a
similar approach with expansion and the "nudge" to the subject; he said the presentation is
for introduction and concept.
Mr. Morphew suggested the financial incentives and successes of the applicant may help
spur development.
Mr. Johnson spoke to recognize the calculated risks by Mr. Stalland and for the value of the
risks to be taken from the EDA's standpoint for land investment.
Mr. Stalland spoke with confidence to his capabilities, if presented with a malleable piece of
property by the City and EDA.
Conversations continued regarding reviewal for TIF of the industrial building, its use, and
operations considered upon proposal. Mr. Thares spoke of a future closed meeting for
decision on what the EDA desires and calculated sales of the subject parcel.
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EDA Workshop Minutes —January 14, 2026
Mr. Johnson asked if the EDA wished to proceed and if so, with directives to follow within a
closed session; board members and the applicant agreed to proceed to pursue potential
users.
Mr. Stalland spoke of making a deal with good sense and financing with the right group or
company. When asked what makes a "right" opportunity, Mr. Stalland said good people, by
his determination, with proven track record and history for successful operations. He spoke
to establishing and running large-scale manufacturing and management businesses as a
thermometer for success. Equity of at least 15-20% was another factor for selecting the right
user, Mr. Stalland said, to place as little of his own equity into a project as possible.
Mr. Stalland explained capital economics driven by financial strength, history, and product;
said the equity investment is placed amid an approved TIF, the tenant, and himself as
property owner, noted to dealing with tenants who do not wish to own property.
Mayor Hilgart said essentially every manufacturing proposal must be subject to TIF,
regardless of who the building owner may be, suggested that the applicant is looking for a
pledge of EDA support for potential TIF and/or applicable GMEF loan.
Mr. Johnson spoke of the "Minnesota Miracle"; suggested the TIF by means to reduce the
applicant's up -front capital investment costs and to subsidize commercial taxation.
Mr. Stalland spoke of the difficulties to forecast what may come; he pledged his dedication
to working with the Monticello EDA to produce an ideal manufacturer or distribution user.
5. Adiournment
The workshop was adjourned at 6:03 p.m.
Recorded by: Anne Mueller P\'
Approved: February 11, 2026
ATTEST:
Jim TAares, .executive Director of the Monticello EDA
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