IEDC Agenda 08-04-2015
AGENDA
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, August 4th, 2015 - 7 a.m.
Boom Island Room, Monticello Community Center
________________________________________________________________________________
Members: Pat Thompson, Joni Pawelk, Wayne Elam, Luke Dahlheimer, Bill Tapper, Dick Van
Allen, Zona Gutzwiller, Jim Johnson, Don Roberts, Mary Barger, Tim O’Connor, Steve
Johnson, Tim Laitinen
Liaisons: Jeff O’Neill, Angela Schumann, Mayor Brian Stumpf, Lloyd Hilgart, Marcy Anderson
1. Call to Order.
2. Approve Minutes:
a. June 2nd, 2015
3. Consideration of adding items to the agenda.
4. Reports:
a. Economic Development Report
b. City Council
c. Chamber of Commerce and Industry
d. TAC
5. Consideration of recommendation regarding IEDC vacancies.
6. Monticello School District Career Day
7. Table Topic – City of Monticello Economic Development Incentive Programs
8. Adjournment (8:00am)
IEDC–June2,2015Page 1 of 2
MINUTES
INDUSTRIAL&ECONOMICDEVELOPMENTCOMMITTEE(IEDC)
RegularMeeting,Tuesday,June2,2015–7:00a.m.
BoomIslandRoom,MonticelloCommunityCenter
MembersPresent:PatThompson,JoniPawelk,WayneElam,LukeDahlheimer,BillTapper,
ZonaGutzwiller,SteveJohnson,TimLaitinen
MembersAbsent:DickVanAllen,JimJohnson,MaryBarger,DonRoberts,TaraThurber,
TimO’Connor
OtherAttendees:JeffO’Neill,AngelaSchumann,LloydHilgart,ScottJohnson&Sean
Lawler,XcelEnergy,DuaneNorthhagen,WCEDP
1.CalltoOrder.
Themeetingwascalledtoorderat7:00a.m.
2.ApproveMinutes:
STEVEJOHNSONMOVEDTOAPPROVETHEMINUTESOFTHEREGULAR
IEDCMEETINGONMAY5,2015.MOTIONSECONDEDBYBILLTAPPER.
MOTIONCARRIEDUNANIMOUSLY,8-0.
3.Considerationofaddingitemstotheagenda.
JulyMeeting:CancelJulyMeeting
BILLTAPPERMOVEDTOCANCELTHEJULYMEETING.MOTION
SECONDEDBYLUKEDAHLHEIMER.MOTIONCARRIED
UNANIMOUSLY,8-0.
4.Reports:
a.EconomicDevelopmentReport:TheEconomicDevelopmentReportwasincludedinthe
agendapacketforreviewbytheIEDC.Topicscoveredinthereportincluded:
1)EDAAnnualWorkPlan
2)EconomicDevelopmentPosition
3)EDA/HRALevy
4)Block34Update
5)SolarEnergyUpdate:TheIEDCreviewedadraftletterpreparedbythe
CityofMonticelloascommentsinregardtothecommunitysolargarden
programtothePublicUtilitiesCommission.Ahearinghasbeen
scheduledforJune25th ontheissue.Asummaryofthehearingwillbe
emailedtotheIEDC.
IEDC–June2,2015Page 2 of 2
6)TACUpdate:JeffO’Neillindicatedthatthereiscurrentlynoprogresson
theI-94Coalitionforfundingatthistime.
7)PlanningCommissionAgenda
b.CityCouncil:StaffandCouncilrepresentativesprovidedprojectandissueupdatesand
respondedtoquestions.
c.ChamberofCommerce&Industry:MarcyAndersonprovidedabriefChamberupdate
notingthatthe20th AnnualWalk&RollpathwaycelebrationwillbeheldonSaturday,June
13th from9am-1pm.ThedowntownblockpartywillbeheldonJuly8th,from4:30-9pmon
WalnutStreetbetweenCornerstoneCaféandStateFarmInsurance.Therewillbekids
games,familyactivities,food,music,andmore.
d.TAC:Staffprovidedastatusupdateaboutongoingandupcomingtransportationissuesand
projectsincludingtheapprovedalignmentfortheFallonAvenueoverpassproject.
5.ConsiderationtoappointanIEDCmemberasaliaisontoChamberdiscussionsfor
temporarysignordinance.
StaffwillbeworkingwithChamberrepresentativesoverthenextmonth(s)tohelp
developfeedbackandinformationrelatedtotemporarysignordinances.TheIEDCis
askedtoappointaliaisontothesediscussionsforpurposesofprovidingaconduit
betweenthetwogroupsandtothePlanningCommission.Theconsensusistoappoint
IEDCCommissionerSteveJohnsonastheliaisontotheChamberforthediscussions.
6.JuneTableTopic–XcelEnergyPowerlineUpgradesandSubstations.
ScottJohnsonandSeanLawlerofXcelEnergyexplainedtheplanforthesubstationand
thepowerlineupgrades.ThesubstationwillbeintheOtterCreekCrossingindustrial
parkarea.Theareaaroundthesubstationwillbelandscapedandtheexpected
completionisinDecember2015.
5.Adjournment
DICKVANALLENMOVEDTOADJOURNTHEMEETING.MOTION
SECONDEDBYBILLTAPPER.MOTIONCARRIEDUNANIMOUSLY,8-0.
Recorder:BethGreen
AdministrativeAssistant
Approved:
Attest:
AngelaSchumann,CommunityDevelopmentDirector
IEDCAgenda:08/04/15
1
4.EconomicDevelopmentReport (JO/AS)
EconomicDevelopmentAuthorityUpdate
EconomicDevelopmentPosition
TheEDAwillbeaskedtoconsiderarecommendationregardingre-establishmentofan
EconomicDevelopmentpositionatitsregularAugustmeeting.Thetimingofthis
recommendationcoincideswiththebudgetdiscussionsoftheCityCouncil.
EDA/HRALevy
OnJuly22nd,theEDAheldasecondworksessiontoreviewinformationonEDAandHRA
levies.TheEDAdirectedstafftopreparebackgroundinformationonthelevyforan
upcomingAugustworkshopwiththeCityCouncil.Specifically,theEDArequested
informationonthefollowingcoreareas:
1.Budgetexamplesforpriorityprojectsorredevelopmentareas
2.GeneraloperatingbudgetexpensesoftheEDA,including20116proposed
3.AvailableexistingfinancialresourcesoftheEDA
4.Levyamounts/limitsandbudget/taximpact
5.Accountabilityandmeasurementmetrics
TheEDAindicatedtheirintentwastohavearecommendationonanHRAorEDAlevyresult
fromtheAugustjointCouncil/EDAmeeting.AnHRAorEDAlevymustbeapprovedbythe
CityCouncilbySeptember15th,2015.
SolarEnergyUpdate
AstheIEDCisaware,theCityadoptedaninterimordinanceplacingamoratoriumon
principalusesolarenergysystemswithintheCityofMonticelloinNovemberof2014.Atthe
timethemoratoriumwasadopted,solarenergysystemswereconsideredpermittedaccessory
usesinallzoningdistrictswithinthecity.Principalusesolarenergysystemswereconsidered
tobeprohibiteduseswithinthecity.
Sinceshortlyafterthemoratorium’sadoption,thePlanningCommissionhasbeeninthe
processofanalyzingtheissue,includingexistingordinanceandproposedordinancelanguage
forsolarenergysystems.AseriesofpublichearingsbeforethePlanningCommissionhave
beenheldregardingsolarenergysystemordinanceamendments.
Asaresultofthisanalysis,duringitsJuly2015regularmeeting,thePlanningCommission
recommendedtotheCityCouncilaseriesofamendmentstotheMonticelloZoning
Ordinancewhichwouldcontinuetoallowsolarenergysystemsasanaccessoryuseby
conditionalusepermitinalldistricts,includingcommercialandindustrialzoningdistricts.
TheordinanceamendmentsrecommendedbytheCommissionalsoincludedordinance
languagewhichwouldallowforprincipalusesolarenergysystemsthroughPlannedUnit
Development,whichrequiresarezoningactionbytheCity.Itshouldbenotedthatanaction
torezonetoPUDprovidesforasignificantamountofdiscretionbytheCityinits
IEDCAgenda:08/04/15
2
consideration.Further,theamendmentsincludedrevisionstotheordinancedefinitions
languageforsolarenergysystemsandutilitiestoprovideclarityinusedesignation.
BackgroundinformationfromPlanningCommissionitemsisavailableonthe Planning
CommissionagendapageoftheCity’swebsite.Theitemhasbeenconsideredbythe
PlanningCommissioneverymonthsinceJanuaryof2015,withtheexceptionofMay,2015.
ItisanticipatedthattheordinanceamendmentswillgoforwardtotheCityCouncilonAugust
24th,2015.CommentsoftheIEDCcanbeprovidedtotheCouncilifdesired.
WrightCountyOrdinance
TheWrightCountyPlanningCommissionhasmadearecommendationtotheCountyBoard
tomoveforwardontheproposedsolarordinanceamendment.TheCountyBoardaddressed
theitemonJuly14th,requestingminormodifications.Theitemwillcomebackbeforethe
boardonJuly28th.TheagendaitemreviewedonJuly14th canbeviewedatthe CountyBoard
agendapage forthatdate.
TheMonticelloOrderlyAnnexationboardwillneedtodeterminewhethertoadopttheWright
CountyordinancesabovefortheMOAAarea.
Block34Update
TheEDAandCityCouncilcontinuetoreceiveupdatesontheprogressofenvironmental
analysisonBlock34.Atthistime,theCity’sconsultingengineer,WSB&Associates,
continuestoworkwiththeMPCAandMnDOTtoproviderequiredinformationrelatingto
movingforwardwiththeTH25/CSAH75project.
TACUpdate
1.FallonAvenue
Thereisnoupdateonthisprojectatthistimebeyondwhathasalreadybeenprovidedtothe
IEDCpreviously.
2.TH25Extension
Moreinformationonthison-goingprojectcanbefoundat:
http://www.dot.state.mn.us/d3/monti/
MnDOTrepresentativeshaveindicatedthatsidewalkconstructionassociatedwiththeproject
willoccurandbecompletedwithinthenexttwo-threeweeks.MnDOTwillalsobesending
outapressreleaseregardingtheprojectwithinthenextfewweeks.IEDCmembersare
encouragedtosignupforMnDOT’semailinformationtoreceivethisrelease.
IEDCAgenda:08/04/15
3
3.TH25/CSAH75Project
OnJuly27th,2015,theCityCouncilapprovedaCooperativeConstructionAgreementwith
MnDOTandacceptedtheCorridorInvestmentManagement(CIMS)grantof$616,000,and
approvedanagencyagreementwithMnDOTrelatingtofederalaidfortheTH25/CSAH75
IntersectionImprovement.Aschedule,includingtimelineforpropertyownermeetings,is
includedwiththisreport.Moreinformationontheaboveitemscanbefoundonthe Council
agendapage.
AugustPlanningCommissionAgenda
August’sPlanningCommissionagendaisattachedfortheIEDC’sreference.TheIEDCwill
notethattheCityhasreceivedanapplicationfromQuarryCommunityChurchtorezone3939
ChelseaRoadfromB-3(HighwayBusiness)toB-2(LimitedBusiness)ortoconsideratext
amendmenttoallowaPlaceofPublicAssemblyinaB-3District.
Staffreportsforitemsarepostedtothe PlanningCommission’s2015Agenda page.
TH25/CSAH75PreliminarySchedule–PresentedtoCityCouncilJuly27th,2015
95%plansubmittalforMnDOTreviewandcomment03/16/15
IEDCAgenda:08/04/15
4
MnDOTpreliminarycommentsreceived04/09/15
MnDOTrequestforPhase2EnvironmentalInvestigationatSEcornerofintersection05/01/15
Contaminationreleasedetectedat100WBroadway05/06/15
EDAauthorizedPhase2EnvironmentalInvestigationatSEcornerofintersection05/13/15
100%plansubmittaltoMnDOT 05/15/15
EnvironmentalBoringsComplete06/02/15
Preliminarytestresults/environmentalreportsubmittaltoMPCA06/19/15
MPCAboringrequestat216PineStreet(Finder’sKeeper’sproperty)06/22/15
Environmentalreports(RAP/CCP)submittaltoMnDOT/07/17/15
MnDOTFinalPlanapproval07/17/15
MnDOTFinalPlansignaturesobtainedtoadvertiseproject07/22/15
ProjectAdvertisementDates07/23/1507/30/15
AnticipatedProjectOpenHouse/AdjacentPropertyOwnerMeetingsAug/Sep15
AnticipatedProjectBidOpening08/18/15
AnticipatedProjectAward
08/24/15
(contingentonMnDOTApproval)
or 09/14/15
AnticipatedConstructionDurationforSubstantialCompletion09/15/15to11/15/15
FinalCompletionofTrafficSignal12/15/15
1
CITY OF MONTICELLO, MINNESOTA
WRIGHT COUNTY
ORDINANCE NO. 620 (Previously numbered 613)
AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE,
KNOWN AS THE ZONING ORDINANCE, ADDRESSING THE FOLLOWING:
REVISE CHAPTER 5, TABLE 5-1, USES BY DISTRICT RELATING TO
UTILITIES-MAJOR
REVISE CHAPTER 5, TABLE 5-4, ACCESSORY USES BY DISTRICT
REVISE CHAPTER 5, SECTION 2(D)(9) RELATING TO UTILITIES
REVISE CHAPTER 5, SECTION 3(D)(29) RELATING TO SOLAR ENERGY
SYSTEMS AS ACCESSORY USES
REVISE CHAPTER 8, SECTION 4, DEFINITIONS RELATING TO
ESSENTIAL SERVICES, SOLAR ENERGY SYSTEMS, AND UTILITIES
The City Council of the City of Monticello hereby ordains:
Section 1. Chapter 5, Table 5-1, Civic and Institutional Uses is hereby amended as follows:
Utilities (major) shall be a Conditional Use (C) in the B-2, I-1, and I-2 Districts. In all other
Districts, Utilities (major) shall be deleted as an allowable use.
Section 2. Chapter 5, Table 5-4, Solar Energy System, is hereby amended as follows:
Solar Energy System shall be a Permitted Accessory Use (P) in all zoning districts, with
Additional Requirements found in 5.3(D)(29)(a) and 5.3(D)(29)(b)
Section 3. Chapter 5, Section 2(D)(9) is hereby amended to read as follows:
(9) Utilities (major)
(a) An electrical power facility, substation, or transmission station as a principal use of
property shall be set back at least 100 feet from all lot lines. Service or storage yards shall
be prohibited.
(b) All commercial WECS systems shall adhere to the requirements of Section 4.12 in
this ordinance.
(c) All Solar Energy Systems shall be allowed only as Accessory Uses, subject to the
conditions listed in Chapter 5.3(D)(29)(a) and 5.3(D)(29)(b) as applicable.
2
Section 4. Chapter 5, Section 3(D)(29) is hereby amended to read as follows:
(29) Solar Energy Systems
(a) Solar Energy Systems
(i) All solar energy systems shall be operable and maintained in good repair.
(ii) Solar energy systems shall meet all required setbacks and height requirements
of the underlying zoning district.
(iii) Solar energy systems shall be an integral part of the structure to which they
are attached.
(iv) As a means of evidencing existing solar access conditions prior to installation,
the owner of a solar energy system may file notarized photographs of the
subject area with the Community Development Department prior to
installation of said system.
(v) Solar energy systems shall be allowed on roofs of principal and accessory
buildings, provided other requirements of this section are met.
(vi) Solar energy systems shall be designed to minimize glare with adequate
screening and/or coatings, as appropriate.
(vii) Solar energy systems shall be located in such a way as to be screened from
visibility of the public right of way, or shall be integrated into the architecture
of the structure so as to be visually inconspicuous.
(viii) Ground-mounted solar energy systems shall be located only in the rear yard of
residential property, and shall not occupy an area more than 20% of the size of
the perimeter foundation of the principal building.
(b) Solar Energy Systems in Business (B) and Industrial (I) districts and the CCD
District.
(i) Solar Energy Systems in the B, I, and CCD Districts shall comply with the
provisions of Section 5.3(D)(29)(a) (i) through (vi).
(ii) Roof-mounted Solar Energy Systems in these districts shall be allowed as
permitted accessory uses on principal and accessory buildings, provided such
systems do not extend more than six (6) feet above the height of the roof
where they are mounted.
(iii) Ground mounted Solar Energy Systems in these districts shall be allowed by
Conditional Use Permit, and together with accessory buildings, shall not
exceed an area of any parcel greater than that allowed for accessory buildings
in the applicable zone.
(iv) Ground mounted Solar Energy Systems in these districts shall be allowed only
when the property owner can show that roof-mounted systems are not feasible
due to building structural issues.
Section 5. Chapter 8, Section 4 (Definitions) is hereby amended to include the following terms
as defined, or redefined:
ESSENTIAL SERVICES: Public or private utility systems for gas, electricity, steam,
sewer and water; voice, television, and digital communications systems; and waste
disposal and recycling services. These services include underground, surface, and
overhead systems and all accessories thereto such as poles, towers, wires, mains, drains,
vaults, culverts, laterals, sewers, pipes, catch basins, water storage tanks, conduits, cables,
3
fire alarm boxes, police call boxes, traffic signals, pumps, lift stations, hydrants, and
other similar features necessary for the function of the essential service. Wireless radio
frequency reception and transmission antennas and support structures shall not be
considered an essential service. Essential Services do not include buildings or uses that
include human occupancy or activity beyond occasional service or maintenance.
SOLAR ENERGY SYSTEM: A set of devices whose primary purpose is to collect solar
energy and convert and store it for useful purposes including heating and cooling
buildings or other energy-using processes, or to produce generated power by means of
any combination of collecting, transferring, or converting solar-generated energy. Solar
Energy Systems are allowed only as accessory structures in any zoning district other than
Planned Unit Development Districts, subject to the requirements of Chapter 5.3 of this
Ordinance.
UTILITIES – MAJOR: Major utilities shall include the following:
(A) Public infrastructure services providing regional or community-wide service that
have regular employees on site during common working hours, and entail the
construction of new buildings or structures such as waste treatment plants, potable water
treatment plants, and solid waste facilities, and electrical substations.
(B) Commercial wind energy conversion systems (public or private).
(C) Electrical substations.
This Ordinance shall take effect and be in full force from and after its passage by the City
Council.
__________________________________
Clint Herbst, Mayor
ATTEST:
___________________________________
Jeff O’Neill, Administrator
AYES:
NAYS:
AGENDA
REGULARMEETING-MONTICELLOPLANNINGCOMMISSION
Tuesday,August4th,2015-6:00p.m.
MississippiRoom,MonticelloCommunityCenter
Commissioners:BradFyle,LindaBuchmann,SamMurdoff,JohnFalenschek,Marc
Simpson
CouncilLiaison:CharlotteGabler
Staff:AngelaSchumann,SteveGrittman(NAC)
1.GeneralBusiness
A.CalltoOrder
B.Considerationofapprovingminutes
a.RegularMeetingMinutes–July7th,2015(tobeprovided)
C.CitizenComments
D.Considerationofaddingitemstotheagenda
2.PublicHearings
A.ContinuedPublicHearing-ConsiderationofarequestforAmendmenttothe
MonticelloZoningOrdinanceChapter3,Section4(F)-SingleandTwo-Family
Residential,Chapter4,Section11-BuildingMaterials,Chapter5,Section2(C)-
StandardsforResidentialUsesandChapter8,Section4-Definitions,for
ordinanceregulatingminimumresidentialstandardsintheR-2District.
Applicant:CityofMonticello
B.PublicHearing–ConsiderationofaMapAmendmentforRezoningfromB-3
(HighwayBusiness)DistricttoB-2(LimitedBusiness)District,andZoningText
AmendmentwithintheB-3(HighwayBusiness)DistricttoallowPlacesofPublic
Assemblyasapermittedorconditionaluse.
Applicant:QuarryCommunityChurch
3.RegularAgenda
A.ConsiderationofcallingforapublichearingforSection4.3–Fences&Walls
asrelatedtofencematerialsandappearance.
B.ConsiderationofareportregardingTemporarySigns,Chapter4,Section5of
theMonticelloZoningOrdinance.
4.AddedItems
5.Adjournment
IEDC Agenda – 08/04/15
5. Consideration of recommendation regarding IEDC vacancy. (AS)
A. REFERENCE AND BACKGROUND:
The IEDC is asked to provide direction regarding two vacant positions in the IEDC
membership.
First, Tara Thurber of All Elements has resigned her position as the Chamber’s voting
representative to the IEDC due to other commitments. Chamber Executive Marcy
Anderson has indicated that the Chamber Board will be recommending a replacement
representative at their next regular board meeting on August 11th. The IEDC will then be
asked to recommend that designee in September, with formal ratification consideration to
follow by the City Council. The IEDC will have 17 voting members with the
appointment of the new Chamber representative.
Secondly, the IEDC has one additional vacant position open. According to ordinance and
guidelines, the IEDC membership is to consist of 16-18 members. In April of this year,
the IEDC directed the position to remain open after interviews at that time.
Current IEDC roster:
IEDC: 1 Bill Tapper 3 yr 2017
(3-year staggered terms) 2 Jim Johnson 3 yr 2017
3 Tim O'Connor 3 yr 2017
4 Mary Barger 3 yr 2015
5 Dick Van Allen 3 yr 2015
6 Luke Dahlheimer 3 yr 2015
7 Joni Pawelk 3 yr 2016
8 Zona Gutzwiller 3 yr 2016
9 Wayne Elam 3 yr 2016
10 Don Roberts 3 yr 2016
11 Pat Thompson 3 yr 2016
12 Steve Johnson 3 yr 2016
13 Tim Laitinen 3 yr 2015 appointed 3/9/15
14 Brian Stumpf Council liaison
15 Lloyd Hilgart Council liaison
16 VACANT
17 VACANT – CHAMBER
REPRESENTATIVE
(voting) Chamber Rep
appointed 2/9/15
18 Chamber Director ex-officio
Staff has received some interest from a member of the industrial community in
membership on the IEDC. The IEDC is therefore asked to consider whether it wishes to
direct posting of the vacancy. The posting would remain open until one week prior to the
IEDC Agenda – 08/04/15
next regular IEDC meeting, at which time interviews would be arranged on a timeline to
allow for recommendation at regular September IEDC meeting. A recommendation of
the IEDC to appoint would then be forwarded to the City Council.
The IEDC has in the past arranged for a sub-committee to interview candidates.
B. ALTERNATIVE ACTIONS:
1. Motion to post the vacant seat on the IEDC with an application deadline of
Friday, August 21st, 2015 and to appoint members _____________ ,
__________________ and _______________ to the interview sub-committee.
2. Motion of other.
C. STAFF RECOMMENDATION:
Staff defers to the committee on the matter of recommendation for appointment.
D. SUPPORTING DATA:
A. IEDC Organizational and Membership Guidelines
2015IDCORG&GUIDELINES
MONTICELLOINDUSTRIAL&ECONOMICDEVELOPMENTCOMMITTEE
ORGANIZATIONALANDMEMBERSHIPGUIDELINES
I.MeetingTimeandPlace:RegularmeetingsareheldthefirstTuesdayofeachmonthat7:00
a.m.intheMonticelloCityHall,BridgeRoom.Specialmeetingsmaybecalledby
theChairpersonandExecutiveDirector.
II.Objective:AswrittenandadoptedbytheAnnualIndustrialDevelopmentCommitteeAction
Statement.
III.CommitteeSize:Whilethereisnosetordefinitesizeestablished,itisgenerallyunderstood
thatthecommitteewillnotexceed16-18members.
IV.Make-upoftheCommittee:Committeemembersmusteitherworkorresideinthe
communityofgreaterMonticello.Individualswhoareinvolvedinanoccupationor
professionthatprovidesservicestothecommunityofMonticellobutisnotheadquartered
withinthecommunitymayalsoserveasmembersofthecommittee.
StandingCommitteeMembers:TheCityCouncilshallappointtheMayorandaCouncil
MembertotheIDCasnon-votingmembers.TheBoardofDirectorsoftheChamberof
Commerce&IndustryshallappointavotingmembertotheIEDC.Thesemembersshallbe
consideredinCommitteeSize.
CityStaffMembers:Non-voting.
AdministratoroftheCityofMonticello.
EconomicDevelopmentDirectoroftheCityofMonticello
CommunityDevelopmentCoordinatoroftheCityofMonticello.
V.Officers:TheChairperson,theViceChairperson,andtheSecretaryshallbeelectedannually
attheJanuarymeeting.Lengthofofficetermshallnotexceedthreeconsecutiveyears.
MinutesofeachmeetingaretheresponsibilityoftheSecretary.Committeecorrespondence
aretheresponsibilityoftheEconomicDevelopmentDirector.
VI.LengthofMembershipTerm:Membersshallserveforthreeyeartermsonathreeyear
rotatingbasissothatapproximatelyone-thirdofthemembershipexpireseachyear.
Individualswishingtocontinueservingonthecommitteemaysoindicatepriortothe
expirationoftheirterm.Anymemberwishingtorelinquishhis/herpositionontheIndustrial
DevelopmentCommitteemaydosobysubmittingaletterofresignation.
2015IDCORG&GUDELINES
IEDCORGANIZATIONAL/MEMBERSHIPGUIDELINES
PAGE2
VII.FillingaVacantPosition:AlistofpotentialcommitteemembersshallbekeptbytheExecutive
Director.TheIndustrialDevelopmentCommitteemustconfirmallnewmembersbyamajority
vote.
VIII.MembershipAttendance:Inordertomakeapositivecontributiontothecommittee,each
memberisexpectedtoattendatleast75%ofthemeetingsinanygivenyear.Ayearisdefined
asbeginningonthe1stofJanuaryandendingthe31thofDecember.
Amended:01/06/15
IEDC Agenda – 08/04/15
6. Consideration of recommendation regarding IEDC vacancy. (AS)
A. REFERENCE AND BACKGROUND:
Monticello School District Superintendent Jim Johnson will provide an update and
information on participation in the 2015 Career Day activities.
IEDC members are provided with this information in support of IEDC’s action plan
activities.
B. ALTERNATIVE ACTIONS:
None.
C. STAFF RECOMMENDATION:
None.
D. SUPPORTING DATA:
A. IEDC 2015 Work Plan
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE
2015 ACTION STATEMENT
Mission Statement: The Monticello IEDC will advocate industrial and economic growth within
the City of Monticello by promoting awareness and communication efforts on behalf of the
business community.
Objective:
The IEDC is dedicated to being pro-active in following the guidelines established in the
Monticello Comprehensive Plan. It is the intention of the IEDC to work within the areas
identified below as supporting actions and objectives:
Land Use:
a. Continue to provide recommendations in an advisory capacity on land use matters
relating to industrial and economic development.
b. Encourage the development of planning process for identification of a third
Monticello 1-94 interchange and guidance of surrounding land use (Northwest
Planning Area), including industrial land uses.
The IEDC will provide support through TAC liaison on planning initiatives.
c. Support community quality of life initiatives which enhance Monticello’s
comprehensive plan objectives for high quality development across the land use
spectrum, including residential, commercial, industrial and civic uses.
Support the marketing and development of high-end and step-up residential
housing choices.
Encourage continued planning for athletic complex at the Bertram Chain of lakes
to further recreation and tourism related business development.
Transportation:
a. Continue to lead the City in moving forward key transportation projects which
support economic development by participating in the Transportation Advisory
Committee.
The IEDC member representatives to TAC will provide a report on projects,
including:
o TH 25/CSAH 75
o Fallon Avenue
o Second River Crossing
o West Interchange
The IEDC to provide recommendations to TAC as necessary
The IEDC’s TAC representative will attend I-94 Coalition meetings and
provide updates to the IEDC and TAC on I-94 initiatives.
Economic Development:
a. Recognize the contributions of Monticello manufacturers through organization of and
participation in industry-related events.
Host an annual Industry of the Year event to showcase an industry of
excellence.
o The IEDC will seek to build event attendance, increase sponsorships
and engage speakers relevant to the manufacturing community.
The IEDC will participate in Minnesota Manufacturing Week events and
activities.
b. Encourage business retention within Monticello.
IEDC will send letters of welcome to new and expanding businesses.
Market Matching will report on retention efforts through Greater MSP and
its own Monticello visits.
The IEDC will initiate and plan monthly Breakfast w/Mayor &
Administrator events.
o The IEDC will arrange monthly breakfasts with the Mayor to include
business profile (product/service focus and reach; employment;
growth, little known interesting company facts) for use in
communications/media release and as Industry of Year candidate
nomination background
c. Support the recruitment of business which further the goals and objectives for the
community as guided by the Comprehensive Plan.
Recommend actions as related to Market Matching efforts in conjunction
with monthly Market Matching reports.
Send IEDC letters of introduction to prospects as determined by Market
Matching/staff.
d. Promote communications & engagement with Monticello businesses and
prospects.
Provide resources and information on relevant opportunities and programs
to the IEDC membership through monthly Table Topics.
o STEM program at MHS
o Market Matching efforts update
o reSTOREing Downtown update
o FiberNet Monticello
o DEED program roundtable
o City incentive programs
o Xcel Energy – Solar, Substation, Powerline Project
o Other as recommended by IEDC members
Inform members and prospects through communication resources including
the Economic Development Website and e-news.
e. Enhance Workforce Development through partnerships with local educators,
businesses, organizations and agencies.
Explore career day opportunities and partnerships with local schools
Provide information on workforce training opportunities (technical schools,
workforce center, local manufacturers) via e-news.
Support or sponsor Monticello School District science fair.
IEDC Agenda – 08/04/15
7. Table Topic – City of Monticello Economic Development Incentive Programs. (AS)
A. REFERENCE AND BACKGROUND:
City staff will provide a brief presentation on City of Monticello Economic Development
Incentive Programs, including on overview of when and how these programs are made
available to both new and existing businesses.
B. ALTERNATIVE ACTIONS:
None.
C. STAFF RECOMMENDATION:
None.
D. SUPPORTING DATA:
A. City of Monticello Business Subsidy Policy
B. Tax Increment Financing Basics – Minnesota House of Representatives
C. Greater Monticello Enterprise Fund Guidelines
CITY OF MONTICELLO
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
BUSINESS SUBSIDY CRITERIA
I. Purpose
This document includes the criteria to be considered by the City of Monticello (“City”)
and the City of Monticello Economic Development Authority (“EDA”) to evaluate the
granting of business subsidies. The intent of the City and EDA in adopting these criteria
is to comply with Minnesota Statutes, Sec. 116J.993-116J.994 (the “Act”). The City and
EDA hereby adopt the definitions contained in the Act for application in the criteria.
II. Types of Business Subsidies
The EDA shall have the authority to administer the following programs for the granting
of business subsidies:
1. Tax Increment Financing (TIF)
2. Greater Monticello Enterprise Fund (GMEF)
3. Small Cities Economic Development Set Aside Fund (ED)
The EDA has separately developed guidelines for each of these types of subsidies (the
“Guidelines”). To the extent that the Guidelines contain more specific policies for each
type of subsidy, those Guidelines control. Notwithstanding anything to the contrary
herein, the City (and EDA, subject to City approval) reserve the right to grant any type of
business subsidy authorized by law, without limitation.
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III. Goals and Objectives/Public Purpose
It is the City’s and EDA’s intent to support and comply with the goals and objectives
stated in the City of Monticello’s Comprehensive Plan in granting business subsidies, and
with the public purpose requirements of the Act. The following goals and objectives are
general guidelines to assist in determining the granting of a Business Subsidy. The City
and EDA recognize that every proposal is unique and nothing in these criteria or in the
Business Subsidy policy shall be deemed to be an entitlement.
a. Attracting New Businesses & Expanding Tax Base
1. Increase in tax base. (Cannot be the only criteria.)
2. Promote and enhance industrial and commercial diversity
b. Attracting New Jobs & Job Retention
1. Jobs and Wages. It is the City’s and EDA’s goal that the subsidy recipient will
create the maximum number of livable wage jobs possible. (The business
subsidy agreement must include numbers and wages to be achieved within two
years of the benefit date.)
2. Jobs and wages in this context may include jobs to be retained but only if job
loss is “imminent and demonstrable”.
c. Business Retention: Promote and maintain industrial and commercial
diversity.
d. Enhancing Downtown: Promote revitalization and redevelopment
e. Facilitating Redevelopment: Promote redevelopment objectives and removal
of blight, including pollution cleanup.
f. Housing: Diversify the housing stock available within the community.
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IV. Subsidy Agreement.
In the implementation of any subsidy granted by City or EDA, the parties will be required
to enter into a formal agreement which identifies the amount and nature of the subsidy
and articulates the goals and objectives which are intended to be implemented. In
addition, the agreement must establish the number of full-time or part-time jobs and the
wages for those jobs which are to be established (or retained) within two years of the
benefit date. The agreement must also contain a penalty for failure to meet those goals.
Finally, the agreement will require that the recipient continue operations at the site for at
least five years.
V. Compliance and Reporting Requirements.
It will be necessary for both the recipient and the City or EDA to comply with the
reporting and monitoring requirements of the statute.
VI. History.
Public Hearing held by the EDA on March 11, 2009 approved on March 11, 2009.
Public Hearing held by the City Council on March 23, 2009, approved on March 23,
2009.
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GREATER MONTICELLO ENTERPRISE FUND
GUIDELINES
1. PURPOSE
The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic development
by supplementing conventional financing sources available to existing and new businesses. This
program is administered by the City of Monticello Economic Development Authority (EDA) and
participating lending institution(s). GMEF Loans are made to businesses to help them meet a portion of
their financing needs. The loans are meant to be a secondary source of financing, provide gaps in private
financing, and assist in securing other grants. All loans must meet four or more of the criteria
established in the Definition of Public Purpose section.
2. ORGANIZATION
The Greater Monticello Enterprise Fund is administered by the EDA. It is the responsibility of the EDA
to assure that loans meet the public purpose standard and comply with all other GMEF policies as
defined in this document.
3. GMEF GUIDELINE MODIFICATION
At a minimum, the EDA shall review the guidelines on an annual basis. Changes to the GMEF
guidelines require approval by the City Council.
4. DEFINITION OF PUBLIC PURPOSE
GMEF Loans must meet at least one (1) of the following public purposes (if the EDA finds that the
public purpose described in b. is met, the EDA must find that the GMEF Loan meets at least one additional
public purpose):
a. To provide loans for credit-worthy businesses which create new jobs.
1. One job is equivalent to a total of 37.5 hours per week.
2. At least 90% of the jobs created must pay at least 160% of the federal minimum wage,
exclusive of benefits, for individuals over the age of 20 during the term of assistance. Annual
written reports are required until repayment of the assistance. Failure to meet the job and
wage level goals requires partial or full repayment of the assistance with interest.
b. To provide loans for credit-worthy businesses that would increase the community tax base.
c. To provide loans to credit-worthy industrial or commercial businesses (new or existing) that would
allow the ability to improve or expand their operation. Factors including but not limited to the
following will be taken into account:
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1. Type and size of the business
2. Product or service involved
3. Present availability of the product or service within the City of Monticello
4. Compatibility of the proposed business as it relates to the comprehensive plan and existing
zoning policies,
5. Potential for adverse environmental effects of the business, if any.
d. In the event job creation is not a viable option, credit-worthy businesses have the ability to demonstrate
public purpose by means of job retention.
5. GREATER MONTICELLO ENTERPRISE FUND POLICIES
a. Business Eligibility:
1. Industrial and commercial businesses.
2. Businesses currently located or to be located within the City of Monticello.
3. Credit-worth y existing businesses.
4. Start-up businesses with worthy business plan and/or pro forma in a form acceptable to the
EDA (historically non credit-worthy businesses will be denied).
b. Acceptable Private Financing Methods:
1. Companion Direct Loan: The GMEF is subordinate to the primary lender.
2. Participation Loan: The GMEF participates in a portion of the loan.
3. Guarantee Loans: The GMEF guarantees a portion of the bank loan.
a. Interest rate cap is subject to EDA approval
c. Use of Proceeds:
1. Real property acquisition, development, & rehabilitation improvement costs including but
not limited to the following:
a. Land Acquisition
b. Engineer/Design Inspection Fees
c. Building Permit Fees
d. Architect Fees
e. Building Materials
f. Soil Borings
g. Construction Labor
h. Appraisal Fees
i. Landscaping
j. Legal Fees
k. Grading
l. Environmental Study
m. Curbing/Parking Lot
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n. Recording Fees
o. Title Insurance
2. Machinery and equipment:
a. Personal property used as an integral part of the manufacturing or commercial
business, with a useful life of at least three years. Acquisition costs would include freight
and sales taxes paid. As a general rule, office equipment would not qualify.
d. Terms and conditions:
1. Loan Size: Minimum of $25,000 and maximum not to exceed 50% of the remaining GMEF
balance
2. Leveraging: Minimum 60% private/public Non-GMEF, Maximum 30% GMEF, Minimum
10% equity.
3. Loan Term: Personal property term not to exceed life of equipment (generally 5-7 years).
Real estate property maximum of 5-year maturity amortized up to 30 years. Balloon payment
at 5 years.
4. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street
Journal on date of EDA loan approval, with a minimum interest rate of 1.0%.
5. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be
documented and no duplication of fees between the lending institution and the GMEF. Loan
fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee
or portion of loan fee. Fee to be paid by applicant to the EDA within 5 working days after
City Council approval of GMEF loan. The fee is non-refundable.
e. Pre-payment Policy:
No penalty for pre-payment
f. Deferral of Payments:
1. Extending a balloon payment will require a verification letter from two lending institutions
stating the inability to refinance and is subject to approval by the EDA.
2. Monthly payments may be deferred for a determined period of time upon approval by the
EDA.
g. Late Payment Policy:
1. Failure to pay principal or interest when due may result in the loan being immediately called.
In addition to any other amounts due on any loan, and without waiving any right of the
Economic Development Authority under any applicable documents, a late fee of $250 will be
imposed on any borrower for any payment not received in full by the Authority within 30
calendar days of the date on which it is due. Furthermore, interest will continue to accrue on
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any amount due until the date on which it is paid to the Authority, and all such interest will
be due and payable at the same time as the amount on which it has accrued.
h. Assumability of Loan:
None
i. Business Equity Requirements:
Subject to type of loan. The EDA will determine appropriate and applicable business equity
requirements on a case by case analysis, utilizing normal lending guidelines.
j. Collateral:
1. Liens on real property in project (mortgage deed).
2. Liens on real property in business (mortgage deed).
3. Liens on real property held personally (subject to EDA approval, homestead exempt).
4. Machinery and equipment liens (except equipment exempt from bankruptcy).
5. Personal and/or corporate guarantees (requires unlimited personal guarantees).
k. Non-Performance:
An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180
days from date of City Council approval.
l. Non-Performance Extension:
1. The 180-day non-performance date can be extended up to an additional 120 days, upon approval
by the EDA.
2. A written request must be received 30 days prior to expiration of the 180-day non-performance
date.
m. Out of Pocket Fees:
Responsibility of the GMEF applicant.
n. Equal Opportunity:
The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants
shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal
characteristics
o. Participating Lending Institution(s):
1. Participating lending institution(s) shall be determined by the GMEF applicant.
2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the
policies of the GMEF as approved by the City Council.
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3. Participating lending institution(s) shall analyze the formal application and indicate to the EDA
the level at which the lending institution will participate in the finance package.
p. Loan Administration:
1. City Staff shall collect applicable GMEF payments.
2. City Staff shall assure City compliance with all applicable terms and conditions of the approved
loan.
3. All loan documents shall include the following:
a. Definition of loan default, agreements regarding notification of default
b. Copy of primary lenders documents
c. Provisions allowing the City to inquire on the status of the primary loan
6. LOAN APPLICATION PROCEDURES
The EDA desires to make the GMEF loan application process as simple as possible. However,
certain procedures must be followed prior to EDA consideration of a loan request. Information
regarding the program and procedures for obtaining a loan are as follows:
a. City Staff: City Staff shall carry out GMEF operating procedures as approved by the EDA
and City Council. Staff is responsible for assisting businesses in the loan application process
and will work closely with applicants in developing the necessary information.
b. Application Process:
1. Applicant shall complete a preliminary loan application. Staff will review application
for consistency with the policies set forth in the Greater Monticello Fund Guidelines.
2. If applicant gains initial support from lending institution and if the preliminary loan
application is approved, applicant is then asked to complete a formal application.
Formal application shall include a business plan which will include its management
structure, market analysis, and financial statement. Like documentation necessary for
obtaining the bank loan associated with the proposal is acceptable. Attached with
each formal application is a written release of information executed by the loan
applicant
3. If the preliminary loan application is not approved by staff, the applicant may request
that the EDA consider approval of the preliminary application at the next regularly
scheduled meeting of the EDA.
4. City staff shall analyze the formal application and financial statements contained
therein to determine if the proposed business and finance plan is viable. City staff
shall submit a written recommendation to the EDA. A decision regarding the
application shall be made by the EDA within 60 days of the submittal of a completed
formal application.
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5. The EDA shall have authority to approve or deny loans; however, within 21 days of
EDA action, the City Council may reverse a decision by the EDA, if it is determined
by the City Council that such loan was denied/approved in violation of GMEF
guidelines.
6. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare
all contracts, legal documents, and inter-creditor agreements. After such review is
complete, the City shall issue said loan.
7. REPORTING
City Staff shall submit to the EDA and City Council a semiannual report detailing the balance of the
Greater Monticello Enterprise Fund.
8. HISTORY
Public Hearing and Adoption the 31st day of August, 1999
Public Hearing and Adoption of Amendments the 8th day of November 2000
Public Hearing and Adoption of Amendments the 24th day of April 2001
Public Hearing and Adoption of Amendments the 13th day of December 2005
Public Hearing and Adoption the 23rd day of March, 2009
Adoption the 22nd day of April, 2013