EDA Agenda 02-09-2011EDA MEETING
Wednesday, February 9,2011
6:00 p.m.
Mississippi - 505 Walnut Street, Monticello, MN
5:30PM
SPECIAL MEETING TO INTERVIEW
EDA CANDIDATE FOR OPEN SEAT
Commissioners: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, Tracy Hinz, and Council
members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett
1. Call to Order
2. Approve Meeting Minutes:
a. January 12, 2010
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Annual Meeting
a. Elected officers
b. Review fund balances
c. Discuss 2011 priorities
6. Presentation by the I -94 Corridor Coalition
7. Request by J. Edwin Chadwick asking the EDA to purchase 13.6 acres of residentially
zoned property located adjacent to the Monticello Business Center
8. Marketing Update:
a. Conferences
b. Website
c. Concierge Team
9. Director Report
10. Adjournment
Proceed to closed meeting
EDA Minutes 1/12/11
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MEETING MINUTES
Wednesday, January 12, 2011- 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Bill Fair
and Council Member Tom Perrault
Commissioners Absent: Council Member Brian Stumpf, Tracy Hinz
Staff: Executive Director Megan Barnett- Livgard, Finance Director Tom Kelly, City Administrator Jeff
O'Neill
Other: John Chadwick
1. Call to Order
President Demeules called the meeting to order at 6 p.m.
2. Approve Meetine Minutes
BILL TAPPER MOVED TO APPROVE THE DECEMBER 15, 2010 EDA MINUTES. BILL
FAIR SECONDED THE MOTION. MOTION CARRIED 4 -0.
3. Consideration of additional agenda items
a) Consideration of withdrawing from the Wright County Economic Development Partnership
4. Approval of EDA Invoices
BILL TAPPER MOVED TO APPROVE THE DECEMBER INVOICES. TOM PERRAULT
SECONDED THE MOTION. MOTION CARRIED 4 -0.
5. Consideration of a Request by J. Edwin Chadwick asking the EDA to purchase 13.6 acres of
residentially zoned property located adjacent to the Monticello Business Center
Staff received a letter from John Chadwick asking the EDA if there is any interest in purchasing
property he owns located immediately adjacent to the Monticello Business Center. The subject
property is 13.6 acres in size and currently guided residential.
Mr. Chadwick is asking $250,000 for the subject property. It is his opinion the parcel is desirable to
1
EDA Minutes 1/12/11
the City due to its contiguous location to the Monticello Business Center. He suggested that a road
could be connected from 90`h Street to Dalton Way and that the property would add to the net
useable area to the adjacent wetland parcel. He requested the EDA purchase the property at full
asking price or he would be willing to work terms to include a $50,000 down payment and financing
on the balance over 5 years at a 5.5% interest rate.
Staff recommended the EDA decline to purchase the 13.6 acre parcel for the following reasons:
• The EDA owns approximately 50 acres of vacant industrial land and has ample small lot parcels
to offer potential industrial users. Staff would recommend utilizing purchasing dollars for larger
contiguous pieces in order to accommodate larger users.
• Neighboring residents may be uneasy with the City processing a Comprehensive Plan
Amendment and zoning the property from to I -1.
• While the City may have interest in connecting a road through the subject property, it is
reasonable to believe this can be achieved through the platting process whether the City or a
private developer owns the parcel.
• In light of the Embracing Downtown study, staff anticipates the EDA may desire to utilize
purchasing dollars towards potential redevelopment/revitalization in downtown in the next few
years.
• Purchase price is $250,000. The 2011 land value according to the County is $191,400.
• Purchasing dollars are limited and should be put towards key parcels that will have a greater
impact on potential development or redevelopment.
John Chadwick of 4477 Manitou Road in Excelsior provided some background related to the
property and spoke further about his request.
There were numerous questions about the amount of buildable land involved and the appropriate
zoning classification for the subject property. City Administrator Jeff O'Neill pointed out that the
property is a transitional area and that the zoning could have gone either way. Staff noted that John
Chadwick had requested that it be guided residential. It was also noted that there is a power line
easement on the property. There was discussion about whether or not purchase of this property
would provide reasonable value and flexibility for the future for the EDA. The cost of taxes and the
cost of holding the parcel at this time were also discussed briefly.
The EDA determined that it required more information to make a decision. They considered
authorizing a contract for an appraisal and an engineering report. Jeff O'Neill noted that it might be
useful to first review the previous analysis of this site.
BILL FAIR MOVED TO TABLE ACTION FOR FURTHER RESEARCH AND DISCUSSION.
BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 4 -0.
6. Consideration of items added to the agenda
a) Consideration of Withdrawing from the Wright County Economic Development Partnership
EDA Minutes 1/12/11
Megan Barnett - Livgard noted City participation in the Partnership has added little value to
the City's network or resources for the past two years and that it no longer seems to have
clear focus and leadership.
Staff believes the organization should have some regional marketing responsibility and
initiate projects that add economic value to the County at large. The Partnership has been
more focused on helping individual businesses. Membership has been declining, and
participation in events has declined.
The Partnership's current Executive Director, Noel Labine, will soon be leaving the
organization. It seems appropriate to step back and allow the organization to decide how it
would like to function and who they plan to serve. Staff recommended that the City choose
not to renew its membership fee of $2,715 for the year 2011 and to reevaluate the value of
participation in the Partnership in 2012.
There was limited discussion on the value of participating in the Partnership.
BILL FAIR MOVED THAT THE EDA WITHDRAW FROM THE WRIGHT COUNTY
ECONOMIC DEVELOPMENT PARTNERSHIP FOR 2011 AND REVIEW THE
DECISION IN 2012. MOTION WAS SECONDED BY TOM PERRAULT. MOTION
CARRIED 4 -0.
7. Marketing Update
Megan Barnett - Livgard stated that the EDA has a good proactive marketing plan in place
for this year. She noted that she'd met with Michelle Hartwig from Majirs Advertising
Design.
a. Conferences
Staff asked for input about attending conferences as a marketing strategy and
suggested that the EDA revisit the issue next month at the year -end review. There
was some discussion about the payback value of attending conferences. Bill Tapper
recommended that the EDA defer to staff judgment about the value of conferences.
Staff suggested partnering with Positively MN at conferences to incur considerably
less cost. In addition, it was noted that the EDA could use a better banner to display
during conferences.
b. Website
Staff suggested that it would be most useful to have a laptop to use to showcase the
EDA website.
EDA Minutes 1/12/11
C. Concierge Team
Staff noted that having a concierge team would build a strong proactive reputation
within the local business community and that this would lead to a reputation
beyond Monticello. Staff also indicated that all of the concierge pictures are back.
8. Director Report
Staff recommended attendance at the BR &E Community Commencement scheduled
during the upcoming Chamber lunch as well as the upcoming Embracing Downtown
meeting.
The IEDC adopted a resolution asking City Council to set a goal of adopting the
Transportation Plan in 2011 and moving forward key transportation projects such as Fallon
Avenue and a second river crossing study.
9. Adiournment
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:58 PM. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0.
Recorder: Kerry T. Burn: _
Approved: February 9, 2011
Attest:
Megan Barnett - Livgard, Executive Director
2
4. APPROVAL OF INVOICES:
a. MN Department of Economic Development $540
*annual membership fee to the Positively MN marketing partnership
b. MNCAR $225
*membership fee
c. Initiative Foundation $2,000
*Approved contribution for 2011
d. Chamber $2,00
Ice Fishing Tournament sponsorship
e. TIF Pay as you go notes
5a. NOMINATE PRESIDENT AND VICE PRESIDENT FOR 2011 TERM:
Reference and Background:
The Bylaws for the EDA states appointment of officers shall be elected at the Annual
Meeting.
Currently Bill Demeules is serving as President, Dan Frie was serving as Vice - president,
and Bill Tapper is serving as Treasurer. Dan Frie's term expired on December 31, 2010.
Alternate Actions:
1. Motion to elect: to serve as the 2011 President.
2. Motion to elect: to serve as the 2011 Vice - President.
3. Motion to elect: to serve as the 2011 Treasurer.
EDA Agenda: 2/9/2011
5b. Acceptance of EDA Fund Balance Report. (TK)
A. REFERENCE AND BACKGROUND:
Attached are the annual estimated fund balance report of all the tax increment districts within
the City and the balance of the general EDA fund. This report is the audited balances of the
districts and the EDA Fund. Staff is still in the process of closing out fiscal year 2010 and
still has adjustments to make for interest earning in 2010 and possible some small expenses
may still need to be recorded against 2010.
The report reflects the decertification of TIF District 1 -2, which all obligations were paid off
in 2010 and was by State Statute required to be decertified. Also District 1 -22 (Downtown)
provides the funding source for the 2004 Taxable TIF Bond. This bond fund had more cash
in it then will be needed to pay off the obligation. The 2004 Taxable TIF Bond was called in
August of 2010 with the funds on hand.
Finally, all the TIF Districts were set up as pay -as- you -go obligations, which if the district
does not generate enough increment to pay off the pay -as- you -go obligation the loss is to the
developer /property owner and not the EDA or City. The exceptions are Districts 1 -36
(Dahlheimer), 1 -37 (Karlburger Foods), and 1 -38 (Walker -In- Store) which were provided
upfront assistance in the form of reduced land acquisition costs in the EDA's Otter Creek
Business Park. For these Districts the EDA sold the land at a price below market value and as
increment comes in from the district we are paying the EDA back for this discounted land
price. However, with the increment generated from Districts 1 -36 and 1 -38 the EDA will not
recoup their land costs. This would mean the EDA sold the land at something less than $1.00
a square foot as originally planned.
B. ALTERNATIVE ACTIONS:
Accept the 2010 EDA Fund Balance Report.
2. Do not accept the 2010 EDA Fund Balance Report.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Staff for alternative 1.
D. SUPPORTING DATA:
2010 EDA Fund Balance Report.
2010
$36,751
Ori .developer agreement obligations
$0 $191,551 $0
Original bond debt
$0
Outstanding interfund loan balances as of 12/31/9<
$0
Outstanding developer agreement obligations 12/31$0
Outstanding bond debt 12/31/92
DIST #13
Loan/bond payments due in 1993
DIST 1-1
DIST #2
DIST #1 METCALF/
DIST #3 DIST #4
DIST #6
DIST #5 RAIN- DIST #7 DIST 98 DIST 99 DIST #10
#1
STANDARD pIST #15 DIST #18 DIST #19 DIST #20 DIST #21 DIST #22 DIST #22-1
DIST #11 DIST #12 (SHINGOBEE) DIST #14 CUSTOM DIST #16 DIST #17 RIVER MISS. PRAIRIE LAKE DOWNTOWN
dance (deficit) 1/1!10 (per ledger)
K -MART
$0
IXI CARSON
$0 $132,794
FSI IXI #2
$0 $0
CONST. 5 DANCE NAWCO NSP TAPPER -".T E
$305,904 $335,193 $0 $0 F
CUB
MARTIE AROPLAX 57170 SUBURBAN CANOPY POLYCAST FAYMAR MILL SHORES WEST TOOT. REDEV.
$0 $0 $0 $0 $0 $0 $0 $0 $34,683 $129,389 $0 $2,435,527 ($38,563)
R�,_
0/S interfund loan balances as of 12/31/10
$0
$0
$0 $0
aCE:
$75,000$945,000
Taxes
Delinquent Taxes
$37,619 $54,362 $75,145 $32,457 $21,945 $357,273
Homestead Credit
$256
Reimb.for legal fees
$2,146 $1,210
Property Rental
Loan Repayments -Principal
$0
Loan Repayments -Interest
Tax increments
$20,849
Tax increment - Deficiencies
Interest income
Bond/Loan Proceeds
$0
Sale of Land
$p
Application Fees Revenue
Escrow deposits - application fee
$321,792
Other Misc. Revenue
Adj.
Lo d payments due in 2011
- 1995 TIF Correction (trx in,debt serv)
Transfer in
- Land Sales
Transfer
in from debt service and other funds
TOTAL
$0 $0 $0 $0 $0 $0 $0 $0 $0
EXPENSES:
$0 $32,457 $24,091 $0 $358,483 $0
Adjustment
$0
$0
Transfer to other funds - HRA & Gen
$69,638
Salaries
Ea
Fringe benefits (PERA,FICA, Health)
537
Dues, memberships
$0
Legal publication
$30 $30 $30
Travel, Conferences, Schools
$30 $30 $113
Property taxes
$0
3
$0
$335 $335 $335
Prof. services --e gal
$61 $61 $8,439
Prof. services --construction
cervices--misc.,
$100,666
(Prof
$2,765
Int. expense --debt
$0 $0 $0
Princ,Nal expense --debt
$2,436
Contract 4 Deed - Principal
$10,731
Contract 4 Deed - Interest
13
Misc. other expense incl. Fiscal Agent Fees)
14
TIF loan (pay as you go)
$153
Transfer of Land Sales (To HRA General
44,193 13,108 $86,214
Decertification Reimbursement
Land acquisition
Trunk Fees
$0 $0 $0 $0 $0 $0
Transfer to other funds - Debt Service
$0 $0
Land Acquisition - TIF Surplus
$356,179
TOTALS
Fund
$0 $0 $170,669 $0 $0 $365 $365 $0 $0 $0 $0 $0 $0
Balancedeficit 12/31/10
Green = not in 213 expenses.
$0 $22,856 $127,114_ $0 $2,424,501 ($1'?4,777)
ADDITIONAL NOTES -
Original (interfund) Loans
$36,751
Ori .developer agreement obligations
$0 $191,551 $0
Original bond debt
$0
Outstanding interfund loan balances as of 12/31/9<
$0
Outstanding developer agreement obligations 12/31$0
Outstanding bond debt 12/31/92
$0
Loan/bond payments due in 1993
$0
Principal
$0
Interest
$0
# of years left to collect TIF
$0
Total amts to be received (based on 1992+A22 TIF
$0
$325,830
TIF 1-22;
ADDITIONAL NOTES:
Distric
Original (interfund) Loans
Orig. developer agreement obligations
$36,751
$32,000
$0 $191,551 $0
$0
$0
$23,000
$80,000
$80,000 $75,000
$65,000 $37,900
$140,142
Original bond debt
1
$260,000
$365,000
$350,000
$150,000
$155,000
$25,000
$140,000
$17,500 1
$165,000 $120,000
$311,000 $59,413 $50,000 $102,000
$325,830
$130,000
$500,000
0/S interfund loan balances as of 12/31/10
$0
$0
$75,000$945,000
0/Sdeveloper agrmntobligations12/31/10
$0
$0
$0
$0
$0 $0
$20,849
$0
Out,'--�din bond debt 12/31/10
$0
$0
$0
$p
$0 $0
$321,792
$7,098 $0
$973,535
Lo d payments due in 2011
$p
$0
Pri,
Interest
$0
$0
$0
$0
$0
$0
$0 1
$0
537
11,763
$$8,138
$0
# of ears left to collect TIF
0
0
0 0 2
$0
3
$0
$25,674
$0
$57,659
Total amts to be received (based on 2010 TIF)
$0
$0
$0 $0 $0
$0
0
$D
0 0
$0 $0
0 0 0
$0
0 0 0 0 0 0
13
14 0
14
0
$0 $0
$0 $0 $0 $0 $0 $0
$0
$0 $0
$0
$0
2010
Fund Balance deficit 1/1/10(per led er
DIST #27 DIST #28 DIST #29 DIST #30 DIST #31 DIST#32 DIST#33 DIST #34 DIST #35 DIST #36 DIST #37 DIST #38
DIST #23 GIST #22. DIST #22.3 DIST #22.4 DIST #22.5 DIST #22.7 DIST #22.8 COMPANIES DIST #24 DIST #25]:�L
SUNNY FRONT BLOCK 52 AMOCO BLK 52/ LANDMAR (MIDWEST ST. BLUE CHIP JJ Co./ IRTI FRONT CMHP UMC PROD. Tappers 1-94 LNDMRK DALHMR Kartsburger WALKER GMEF
FRESH STREET JOHNSON SO It GRAPHICS BENEDICTS DEV. Profile Pwdr PORCH STAMP Hoidin s INTERCHG SQUARE DISTRIB Foods
$0 $0 $0 $22,178 $0 $0 $0 $30,721 1 $0 $0 $0 $0 $45,412 $40,746 $28,860 $0 $0 $254,636 $11,791 $48,825 $103,309 51,553) $954,331
REVENUE:
Taxes
$26,163 $10,982 $79,407 $301,517 $68,185 $23,796 $12,604
Delinquent Taxes
Homestead Credit
$48,158 $3,819 $2,387
Reimb.for legal fees
Property Rental
$142,113
Loan Repayments -Principal
Loan Repayments -Interest
$24,510
Tax increments
$492,000
Tax increment - Deficiencies
$32,000
Interest income
$40,000
Bond/Loan Proceeds
Sale of Land
$100,000
Application Fees Revenue
Escrow deposits - application fee
Other Misc. Revenue
Adj. - 1995 TIF Correction (trx in,debt serv)
Transfer in - Land Sales
Transfer in from debt service and other funds
TOTAL
$0 $0 $0 $0 $0 $0 $0 $48,158 $0 $0 $0 $0 $29,982 $13,369 $79,407 $0 $0 $301,517 $0 $68,185 $23,796 $12,604 $24,510
EXPENSES:
Adjustment
$4,770,885
Transfer to other funds - HRA & Gen
Salaries
O/S interfund loan balances as of 12/31/10
Frincie benefits PERA,FICA, Health
$0
Dues, memberships
Legal publication
$31 $30 $31 $30 $30 $30 $30 $31 $30 $310
Travel, Conferences, Schools
Property taxes
Prof. services --legal
$60 $61 $60 $61 $61 $61 $1,918 $60 $61
Prof. services--engr
Prof. services -construction
$307,568
Prof. services-misc.,
$147,638
Marketing
$184,816
Interest expense --debt
$209,680
Pdnci al expense --debt
$0
Contract 4 Deed - Principal
$190,230
Contract 4 Deed - Interest
$86,234
Misc. other expense incl. Fiscal Agent Fees
TIF loan (pay as you o
$16,953 $67,579 $32,499 $107,463
Transfer of Land Sales To HRA General)$64,776
$23,796 $12,604
Decertification Reimbursement
Land acquisition
Trunk Fees
Transfer to other funds - Debt Service
$317,277
Land Acquisition - TIF Surplus
TOTALS
Fund Balance deficit 12/31/10
$0 $0
$0 $0
$0 $16,953 $0 $0 $0 $67,670 $0 $0 $0 $0 $32,590 $91
$0 ($39,131 $0 $0 $0 $11,209 $0 $0 $0 $0 $42,804 $54,024
$107,554 $0 $0
$713 $0 $0
$317,368
$238,785
$91 $66,724 $23,887 $12,695 $310
$11,700 $50,286 $103,218 $1,644$978,531
Green = not in 213 expenses.
rig. developer agreement obligations
Original bond debt
-Outstanding bond debt 12/31/92
Loan/bond pay ents due in 1993
FOM
# of years left to collect TI F
0IF F1111111.
�ub-Accts: ($163,908)
1-22 Net: $2,260,593
M-1 I I V IN- - I CJ.
Original interfund) Loans
$181,000
$40,000
$158,000
$439,224
$142,113
$152,460
Orig. developer areement obligations
$185,000
$492,000
$440,000
$32,000
$225,000
$40,000
$220,000
$395,000
$100,000
$170,000
Original bond debt
$4,770,885
O/S interfund loan balances as of 12/31/10
$0
$0
$156,138
$307,568
$89,218
$147,638
O/Sdeveloper a rmntobligations '2/31110
$184,816
$209,680
$0
$0
$0
$190,230
$86,234
$0
Outstanding bond debt 12/31/10
$3,816,062
Loan/bond payments due in 2011
$0
Principal
Interest
$11,279
$0 $0
i
$27,099
$16,243
$0
$0
$0
$0
$0
$0
$7,268
$13,662
$7,047
$3,903
$66,396
$5,070
$0
$0
$316,279
$0
$45,512
$19,264
$17,281
$5,523
$3,262
$9,342
# of ears left to collect TIF 0
01 01 01
01 01 01
16
0
0
0
19
19
2
0
12 23
5
6
7 0
Total amts to be received based on 2010 TIF) $0
$0 $0 $0
$0 $0 $0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0
$0
$0
$0 $0
2610
GENERAL
EDA
TOTALS
alance deficit 1/1/10(per ledger)
$2,563,879
1$7,393,706
R, .NUE:
1 $0
Taxes
$1,101,455
Delinquent Taxes
$0
Homestead Credit
$57,976
Reimb.for legal fees
$0
Property Rental
$p
Loan Repayments -Principal
$10,731
$10,731
Loan Repayments -Interest
$2,436
$26,946
Tax increments
$0
Tax increment - Deficiencies
$0
Interest income
$31,196
$31,196
Bond/Loan Proceeds
$0
Sale of Land
11
$0
Application Fees Revenue
$67,569
$67,569
Escrow deposits - application fee
$0
Other Misc. Revenue
Adj. -1995 TIF Correction (trx in,debt serv)
Transfer in - Land Sales
Transfer in from debt service and other funds
$34,107
$5,301
$34,107
$0
$p
$5,301
TOTAL
$151,340 $1,335,281
EXPENSES:
Adjustment
$0
Transfer to other funds - HRA & Gen
$69,638
Salaries
$18,798 $18,798
Fringe benefits PERA,FICA, Health
$6,874 $6,874
Dues, memberships
$7,906 $7,906
Legal publication
$846
Travel, Conferences, Schools
$2,248 $2,248
Property taxes
$1,860
Prof. services --legal
$5,015 $16,984
Prof. services --en r
$4,437 $4,437
Prof. services --construction
$0
Prof -ervices--misc.,
$5,483 $108,914
M$16,181
$16,181
In ex ense-debt
$2,436
Prinul al expense --debt
$10,731
Contract 4 Deed - Principal
$0
Contract 4 Deed - Interest
$0
Misc. other expense incl. Fiscal Agent Fees)
$2,129 $2,282
TIF loan (pay as you o)
$368,009
Transfer of Land Sales To HRA General
$101,176
Decertification Reimbursement
$0
Land acquisition
$0
Trunk Fees
$0
Transfer to other funds - Debt Service
$673,456
Land Acquisition - TIF Surplus
$0
TOTALS
$69,071 $1,412,776
Fund Balance deficit 12/31/10
$2,646,148 $7,316,211
vreen = not in 213 expenses.
ADDITIONAL NOTES:
Original interfund Loans
Orig. developer agreement obligations
Original bond debt
O/S interfund loan balances as of 12/31/10
O/S developer armnt obligations 12/31/10
Outp-^ding bond debt 12/31/10
LoE d payments due in 2011
EEL -
Interest Interest'
9 of years left to collect TIF 0
Total amts to be received based on 2010 TIF) $0
REQUEST BY J. EDWIN CHADWICK FOR THE EDA TO PURCHASE 13.6
ACRES OF RESIDENTIALLY ZONED PROPERTY LOCATED ADJACENT TO
MONTICELLO BUSINESS CENTER.
A. REFERENCE AND BACKGROUND:
The EDA reviewed a request by John Chadwick at their January 12, 2011 meeting
to consider purchasing 13.6 acres of property located adjacent to the Monticello
Industrial Park. The EDA directed staff to gather additional information regarding
buildable acreage and potential lot configuration.
Staff contacted WSB and NAC (the City's planning consulting firm) requesting
past lot layouts and background information on the subject property. Here is what
was obtained:
�i
*sketch layout showing how Mr. Chadwick's property could be incorporated into
the overall layout of Otter Creek industrial park.
IIA
IV, IIA
011A R
N
*sketch showing how Otter Creek could be subdivided (blue lines show potential
lots lines).
i 1, or.
I I
N.
�o
Power line easement �\ - - - -- ^^�•^^^
*plat shows the subject property contains a power line easement along the
northeastern boundary line.
Generally speaking, it appears from a quick glance the subject property could be
combined with a small fragment of Outlot B, Monticello Business Center to make a
fairly developable parcel. However, without having an engineering analysis
completed staff is not able to identify an exact lot configuration or buildable
acreage.
2
As previously stated, Mr. Chadwick is asking $250,000 for the subject property. It
is his opinion the parcel is desirable to the City due to its contiguous location to the
Monticello Business Center, a road could be connect from 90v' Street to Dalton
Way, adds to the net useable area to the adjacent wetland parcel, and price and
terms are favorable. Mr. Chadwick has submitted a letter with his request and
financing terms he would consider. In essence, he is stating the EDA could
purchase the property at full asking price or he would be willing to work terms that
would include a $50,000 down payment and financing on the balance over 5 years
at a 5.50% interest rate.
B. STAFF RECOMMENDATION:
The EDA asked Staff to obtain as much information as possible without spending
consultant dollars. City staff was able to obtain some additional information, but
not enough to really assist the EDA in determining buildable area and related
valuation of property. If the EDA desires to continue to consider purchasing the
subject property staff recommends engaging the services of an appraiser and
authorizing WSB to complete engineering calculations. WSB's calculations would
take into consideration road configuration, easements, and required buffer yards to
determine buildable area of the subject property.
Finance Director Kelly contacted the Wright County Assessor's office to inquire
about 2011 and 2012 estimated property valuations. The Assessor stated they
anticipate industrial land will continue to drop in valuation in 2012. The property is
currently valued by the County at $191,400.
In general terms, it would appear that purchasing the subject property would allow
for an additional 11 acres of industrial land to be developed. This could be retained
as a large parcel or split into a few smaller lots. The EDA will need to evaluate if
obtaining this parcel is worth purchasing and developing at a future date. Mr.
Chadwick is willing to negotiate a purchase price; however he has asked the EDA
to consider a price of $250,000. If the EDA desires to begin discussing a purchase
price a closed meeting notice has been publish.
As previously stated, staff does recommend a formal appraisal and engineering
calculations be completed if the EDA believes the subject property has high
priority features to continue to consider purchasing. Staff would anticipate
engineering and appraisal services would cost close to $10,000. These dollars
could be utilized from the EDA general fund.
3
C. ALTERNATIVE ACTION:
1. Motion directing staff to engage the services of a local appraiser to complete an
appraisal of the subject property and to engage the services of WSB to complete
engineering calculations to determine a reasonable layout and buildable area.
2. Motion to begin negotiating a purchase price in a closed meeting.
3. Motion to deny entering into a purchase agreement with Mr. Chadwick.
4. Motion to table action for further research based on discussion.
D. ATTACHMENTS:
1. None
El
Economic Development Director Updates:
IEDC:
At their February 1, 2011 meeting, the IEDC reviewed their accomplishments in 2010 and
discussed priorities for 2011. Please see attached.
City Council:
The City Council adopted the Transportation Plan at their January 24, 2010 meeting. The City
Council also authorized key studies to be initiated for Fallon Avenue and a second river
crossing.
Planning Commission:
The Planning Commission discussed potential revisions to the sign ordinance as it specifically
relates to temporary signs.
BR &E:
The Community Commencement meeting was well attended. Projects continue to move
forward and progress made. This year will continue to a year of implementing projects in the
four categories, which are: 1. Transportation 2. Downtown/River 3. Communication 4.
Business Roundtable
Inquiries:
Inquires have been fairly slow this past month. This is typical for the winter season. Staff is
happy to report that several Monticello businesses are looking to expand in the next year.
Marketing:
Staff will begin preparing a list of conferences / tradeshows to attend for the year. Concierge
PR pieces will start being distributed the week of February 21". The goal is to strengthen the
existing business community.
Business Communications & Retention Initiatives:
A Business Newsletter was mailed to each business in mid January.
Embracing Downtown:
The January 18, 2011 downtown meeting was well attended and great information was
relayed by the consulting team. The next step will include looking at several different design
scenarios.
Future Meeting Dates:
1. IEDC March 1, 2011
2. EDA March 8, 2011
2010 IEDC RECAP
Projects the iEUC
assisted, initiated, or accomplished in 2010
A. Zoning Code Rewrite (adopted January 24, 2011)
B. Business Expansion Incentive Program
C. Industry of the Year Award
D. Embracing Downtown Study
E. BR &E
1. Surveyed 60 businesses
2. Addressed all `red flags"
3. Established 4 priority projects
4. Implementing projects
F. Illicit Discharge, Detention, and Elimination Ordinance
G. Attempted to initiate a Leadership Training course in Monticello
H. Established IEDC in Chapter 2 of City Code
I. Transportation
1. Transportation Plan adopted January 24, 2011
2. CC authorized key projects /follow up steps
3.1-94 Corridor Coalition
J. Concierge Team
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE
2011 WORKPLAN
Mission Statement:
To increase the tax base and the number of liveable wage -level jobs in Monticello by promoting
industrial and economic growth and working to maintain a desirable business environment.
2011 Objectives:
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. Review Economic Development section of Comprehensive Plan
b. Evaluate need for future industrial land (zoned and owned)
c. Research potential to market Monticello to a medical niche
BR &E:
a. Transportation
1. Transportation Task Force?
2. I -94 Corridor Coalition
3. Potential 3'd interchange location
b. Concierge Team
1. Site visits
2. Site Review meetings
3. Print/web resource guide
4. Legislative tracking
5. Financing assistance
6. Clearly communicate available programs and opportunities
c. Downtown/River
1. Recreation on the river programs
2. Embracing Downtown project
d. Breakfast with Mayor /Administrator
1. Monthly appointments
Industry of the Year:
a. Annual banquet and award an Industry of the Year
Training / Leadership Courses for local Businesses:
a. Work with college to bring training/leadership classes to Monticello for local
businesses.
Quality of Life:
a. Continue to support and participate in the progress of the Bertram Chain of Lakes
project.
Monitor Progress:
a. Establish a monitoring process to begin documenting success of programs.