IEDC Agenda - 11/05/2025AGENDA
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Wednesday, November 5, 2025 - 7:00 a.m.
Monticello Community Center | Academy Room
Members: Chairperson Jarred Merchant, Vice Chairperson Mike Huey, City Council Member
Charlotte Gabler, Luke Dahlheimer, Joe Elam, Shawn Hafen, Aaron Holthaus, Liz Kokesh,
Sarah Kortmansky, Sonja McElroy, Eric Olson, Joni Pawelk, Cory Ritter, Rob Stark, Andrew
Tapper, Darek Vetsch, Tony Velishek, Greg Schultz
Liaisons: City Administrator Rachel Leonard, Tyler Bevier, Missy Meidinger, Deb Meyer, Angela
Schumann, Jim Thares, Dave Tombers, Tim Zipoy
1. General Business
A. Call to Order
B. Roll Call
C. Approval of October 7, 2025, Special Meeting Minutes
D. Consideration of Additional Agenda Items
2. Regular Agenda
A. Table Topic – Data Center Planned Unit Development (DCPUD) Ordinance Review
B. Data Center Economic Impact Overview – Amanda Taylor and Morgan Hill, Greater MSP
3. Liaison Updates
A. Wright County Economic Development Partnership (WCEDP)
B. Chamber of Commerce
C. Economic Development
• Sales Tax Update
• BR&E Visits Update
• Project Updates
• Prospect List
• November 3, 2025, Planning Commission Agendas
D. City Council Update
4. Next Regular Meeting Reminder – Date: Tuesday, January 6, 2026
5. Adjournment (8:15 a.m.)
1
SPECIAL MEETING - MINUTES
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, October 7, 2025, at 7:00 a.m.
Monticello Community Center
Members: Chairperson Jarred Merchant, Luke Dahlheimer, Joe Elam, Charlotte
Gabler, Aaron Holthaus, Liz Kokesh, Sonja McElroy, Eric Olson, Joni Pawelk,
Greg Schultz, Andrew Tapper, Tony Velishek, Darek Vetsch
Members Absent: Vice Chairperson Mike Huey, Shawn Hafen, Sarah Kortmansky, Cory Ritter,
Rob Stark
Liaisons: Deb Meyer
Liaisons Absent: Missy Meidinger, Dave Tombers, Tim Zipoy
Staff: Jim Thares, Rachel Leonard, Bob Ferguson, Tyler Bevier
1. General Business
A. Call to Order
Chairperson Jarred Merchant called the special meeting of the Monticello IEDC
to order at 7:04 a.m.
B. Roll Call
Mr. Merchant did not call the roll.
C. Consideration of Adding Items to the Agenda
None
2. Regular Agenda
A. Monticello Public School District #882 Operating Levy Referendum Overview:
Needs and Impacts – Superintendent Eric Olson and High School Principal Lori
Hanson
Superintendent Olson thanked the IEDC members for opportunity to speak at
the special meeting and share information about the levy on referendum
election ballot for Monticello Schools coming up on November 4, 2025. He also
introduced Lori Hanson, Principal, Monticello High School.
Ms. Hanson reviewed high school programs and academic curriculum with a
focus on pathways exposing students to careers as well as college-ready
opportunities. She noted the strong recent efforts to connect with local
businesses to create internships and offer experiences for students to allow
them to fully consider occupations and real-world needs.
Mr. Olson pointed out the revival of the agricultural program after decades in
hiatus. He said STEM (Science Technology Engineering & Math) classes are
offered for all grades. This expose students to potential career interests. He
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IEDC Meeting Minutes – September 3, 2025
2
said the Monticello STEM program is possibly the only one in the state that is
structured to reach all grade levels.
Ms. Hanson also said that the high school functions on a financially responsible
budget while staying innovative to the needs of the students’ futures. Mr. Olson
described the challenges with lots of educational options being available in the
community. As a result of the moderate population growth in the district,
enrollment is the same as it was 23 years ago. This impacts revenues from the
State as it is per pupil based. At the same time, costs have continually increased.
County Commissioner Vetsch pointed out potential negative impacts from union
negotiations on the budget.
Mr. Olson provided information to the IEDC members showing the statewide
funding ranking of the school district. It is currently 283rd out of 331.
Mr. Olson noted the history of creating valued programs and summed up the
potential negative impacts if the referendum fails. Monticello would likely drop
to the bottom position of 331 in the State. If the levy is approved, then
Monticello will rise to approximately 240 +/-. He said the goal is to sustain
unique and valuable education programs.
Mr. Olson reviewed why some students leave Monticello for the St. Michael
district. Of the 120 +/- students who leave the district each year, they primarily
based on convenience factors; their parents probably commute to work in the
Metro area communities.
Mr. Olson believes that significant growth is coming and forecasts that
enrollment will increase in about five years based on housing development
figures provided by the City. Mr. Olson said a failed operating levy now will
create a transition period to potentially lose additional students to other
districts. It would trigger a cycle of further retrenchment in academic programs
and extracurricular activities, thus causing more students to leave the district.
City Administrator Rachel Leonard pointed out that what the residents can
control is how they vote. She said that when school districts thrive, the City
thrives.
Mr. Olson noted that $2M has already been cut from the budget and another
$2M is slated to be cut in 2026 regardless of vote outcome. If the levy passes,
the budget would be back to sustainable levels for about a five-year period. He
noted that the school district’s recent grant fund successes have helped keep the
financial picture manageable until this point in time. If the levy does not pass,
the district is facing more cuts totaling $5M from next year’s budget plus
releasing between 39 to 50 staff.
Mr. Vetsch indicated he supported the levy increase and the need for
transparency for all entities and decision-makers.
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IEDC Meeting Minutes – September 3, 2025
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Mr. Thares shared that he heard a similar presentation by the school leadership
at the Rotary Club meeting. He highlighted some of the programs and activities
that may be cut and pointed out that the likely increase in sports program fees
for participants would be much greater than the amount of the potential
property tax increase.
Mr. Olson closed with saying a passed levy would benefit everyone, including
businesses. He feels that it would result in some unfortunate negative impacts
due to the budget and staff cuts.
B. 2025 Manufacturers Breakfast Event (Oct 10, 2025) Planning and Information
Update
Mr. Thares said the Manufacturer’s Appreciation Breakfast event is taking place
on Friday October 10, 2025, at 7:00 a.m. He encouraged members to sign up if
they have not already. He also asked members to make calls to local businesses
and colleagues to encourage them to attend the event which honors the local
industries.
3. Liaison Updates
A. Economic Development
Mr. Thares presented information about the following City economic
development updates:
• Sales Tax Collections Update Actual-Projections
• Business Retention and Expansion (BR&E) Visit - Pezzo Solutions
• Stoneybrook Residential Subdivision Update
• Project Update
• Prospect List
• October 7, 2025 Planning Commission Agenda
B. Chamber of Commerce
Cory Ritter reported on upcoming events and programs offered and hosted by
the Monticello Chambers.
C. City Council Update
City Administrator Rachel Leonard talked about the progress on the data center
zoning ordinance. It was tabled by Planning Commission to allow more
discussion. She noted that the City does not currently have a zoning ordinance
in place, so no data center land use applications are being accepted at this time.
Ms. Leonard also said at the September 22, 2025, Council meeting, the
preliminary 2026 CY property tax levy was adopted. The percentage of the tax
levy increase matches the City’s property valuation growth over the past year.
The final levy consideration by the City Council will occur on December 8, 2025,
as part of a Public Hearing process.
Next Regular Meeting Reminder – Date: Wednesday, November 5, 2025
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Industrial Economic Development Agenda: 11/5/2025
2A. Table Topic – Data Center Ordinance Overview and Economic Impacts Overview
Prepared by:
Administrative Assistant
Meeting Date:
11/5/2025
☒ Regular Agenda Item
Reviewed by:
N/A
Approved by:
Community Development Director
REFERENCE AND BACKGROUND
City staff will provide an overview of the DCPUD (Data Center Planned Unit Development)
Ordinance and review processes and take questions from IEDC members. Additional
information about the economic impacts from typical hyperscale and enterprise data centers in
the Midwestern part of the USA will be reviewed by staff from Greater MSP, a Twin Cities based
regional economic development organization.
Again, while two data center developers have previously submitted concept proposals for
sizeable data center developments, which were reviewed in joint City Council and Planning
Commission meetings, there have been no formal land use applications for development.
At this date, City leadership and staff are carefully working through drafting and reviewing a
proposed City Ordinance that would create development and performance standards for data
center developments. That process has several steps remaining before final consideration by
the City Council.
SUPPORTING DATA:
N/A
Data Centers: Zoning Ordinance
IEDC
November 5, 2025
•Why is the City developing an ordinance to regulate data centers?
•City has adopted 2040 Plan Amendments to consider data center/technology
campus uses within the Light Industrial Park (LIP) designation
•Economic development while managing impact
•Series of considerations for allowing the land use
•Ordinance regulations are recommended as the use is not currently allowed
REVIEW
•Data Center PUD review process unique to this specific use type
•Allow data center or data center campus, but only within a DCPUD
•Not subject to the current PUD ordinance process; provides adapted
process and submittals specific to use and its impacts
•Requires each project to be reviewed individually for rezoning to DCPUD
•Addresses the complexity and variety of the use
•More focus on the mitigation of potential impacts to surrounding land
use through required minimum Performance Standards
•Less focus on internal site planning in application submittal
requirements and review
FRAMEWORK
•DCPUD ordinance language prepared following initial planning workshops
•Planning Commission Workshop
•Joint Planning Commission and City Council Workshop
•Public hearing on draft ordinance in August & September
•General use concerns
•Power
•Municipal utilities
•Transportation and traffic
•Enforcement
•Planning Commission tabled action on the ordinance in September for
additional review and consideration of comments
FRAMEWORK
•Minimum Performance Standards
•Lighting/Noise
•Setbacks
•Density of Development
•Screening
•Four joint workshops with Planning Commission and Council
•Review of public hearing comments and related code sections
•Review of DCPUD review process and submittal requirements
•Review of draft revised ordinance
FRAMEWORK
CURRENT DRAFT ORDINANCE
Page References: 2, 6, 7, 8, 9, 10, 11
•Requires specific findings for rezoning
related to water supply
•Requires utility supply and demand
study
•Requires site improvement agreement
OTHER JURISDICTIONS/REGULATION
•MN Department of Natural Resources
for water appropriations and permits –
See also HF 16 (2025)
•Environmental review as required by law
(AUAR, etc.)
Water Consumption
COMMENTS/QUESTIONS
•Amount of water used
•Ability to re-use water (closed
system) versus waste
•Adequacy of source water
•Impact to surrounding private wells
•Ability and remaining capacity to
serve to other parts of community
PROPOSED PROCESS
* Process information and submittals are draft for discussion and subject to City Attorney comment
NEXT STEPS
•Revision of ordinance is on-going based on comments and feedback
•Review by City Attorney
•Public Q & A Sessions on the ordinance in November
•Planning Commission public hearing on December 2, 2025
Monticello IEDC
Amanda Taylor | Vice President, Business InvestmentMorgan Hill | Director, Business Investment
One Region. One Team.
Sectors | who
The GREATER MSP Partnership accelerates
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Value | whyMission | what
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that grow &
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CONFIDENTIAL 3
BUSINESSES UNIVERSITIES FOUNDATIONSLOCAL GOV’TS
4
Focus Industries
We are Playing to Win in Some of the World's Fastest Growing Sectors
Digital TechMed & Health Tech Clean & Green Tech
Semiconductors &
Microelectronics
Data Centers
AI & Cybersecurity
Hypersonics
FinTech
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Bio-manufacturing
Hydrogen Hub
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Protein Sustainability
Clean Energy
5
Meta invests $800M in Rosemount
IEDC Agenda 11/05/25
3C. Economic Development Updates
Prepared by:
Economic Development Director
Meeting Date:
11/5/2025
☒ Liaison Updates
Reviewed by:
N/A
Approved by:
N/A
REFERENCE AND BACKGROUND
The Economic Development Update includes an overview of various information by Jim Thares,
Economic Development Manager. IEDC members are encouraged to ask questions as so
inclined. Attachments include the Sales Tax Collections Update for August 2025. As a reminder,
the tax collections began April 1, 2025; funds were voter approved with a goal of $15M over a
20-year time frame (70 percent non-resident funded) to support capital investments at the
Bertram Chain of Lake Regional Park recreational facilities, BR&E visits updates, Project Updates
and Projects-Prospects List. The Planning Commission Workshop and Regular Meeting Agendas
for the November 3, 2025, meeting are also included.
A. Sales Tax Collections Report
B. BR&E Visits Updates
C. Project Updates
D. Prospect List
E. Planning Commission Mtg Agendas (2 Workshops and Regular) – November 3, 2025
Collection
Month
Amount
Collected Admin Fees
Admin Start
Up Fees Total Received
May-25 175,249.36$ (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
IEDC Agenda:11/05/25
1
3C. Project Update
Big River Commercial Development - Chelsea Road:
Construction of a 15,136 sq. ft. Les Schwab Tire Center is rapidly progressing. A Valvoline Oil
facility (2,673 sq. ft.) is also under construction. Both of those projects are in the Big River
Commercial Development near the Chipotle Restaurant along Chelsea Road. The Big River
Development has numerous pad ready sites in the 10-acre development project.
Fairfield By Marriott Hotel:
Construction of the 98-room hotel development project is progressing. The four-story hotel
walls are currently being framed with wall sheeting be applied. The Boulder Tap House
Restaurant will be an attached facility and is expected to be completed in April 2026. The hotel
will be opening in late July 2026. The hotel will also have small conference rooms to
accommodate meetings and events in its facilities. The cost of the entire project is
approximately $21,500,000. A total of 45 to 50 jobs will be created through this development.
The City and County both provided financial assistance through Tax Abatement. This was the
City’s first use of this financial assistance tool in support of a non-infrastructure development
project. The combined assistance from the City and County will total $742,655 over a 10-year
time frame.
Minnesota Sports Cards - Retail:
Construction of the Minnesota Sports Cards retail center (4,409 sq. ft. building) on a 1.09-acre
site located just east of the former McDonald’s fast-food restaurant (located along the freeway
in front of Home Depot) has begun.
Big Bore Restaurant (formerly the McDonald’s Restaurant on East 7th Street):
The extensive remodeling of the former McDonald’s restaurant is also underway. The Big Bore
Restaurant, featuring convenient pick up and drive through options, and is planning to be open
in March or April 2026.
Discount Tire:
A proposed Discount Tire sales and service store is working its way through the final permit
review steps. This facility is proposed for a 2.04-acre parcel located at 1300 7th Street East.
IEDC Agenda:11/05/25
2
Wendy’s Restaurant:
The Wendys developer, HAZY, is seeking to extend its entitlements performance timeline to
allow it to start construction of the restaurant in the spring of 2026. The location of the
proposed 2,300 sq. ft. restaurant development is at 261 Highland Way near Home Depot.
Block 52 Mixed Use Building:
City staff are in discussions with a prospective tenant who may be seeking an equipment loan
through the SCDP Gap Funding program.
Recently Completed Multi-Family Rental Development Updates:
Savanna Vista MF Apartment Lease Up = 185 out of 200 now leased (7.5 percent
vacancy) – first phase open 14 months; 2nd phase opened in November 2024 (two
buildings at 100 units each)
Block 52 MF Apartment Lease Up = 100 percent occupied (87 units) – open 22 months
ago
CHC Twin homes – Phase 1 Lease Up = 51 out of 60 units now leased – opened February
2024 (21 months). Phase 2 Development – Work is currently ongoing to have all 22
modular pre-built units moved onto the site by the end of 2025. Footing and
foundations are being actively worked on at this time. The EDA is considering
amendments to the TIF Development Agreements allowing a swap of age designated
units between the two development phases (TIF Dist. 1-42 and 1-43). This
consideration is scheduled for November 12, 2025.
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 2834-120-2k Industrial New Construction 1,265,000 sq. ft.1,350 $1,900,000,000 Active Search
Contacts: M
= 03 YTD =
25
PROSPECT LIST 10/17/2025
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