EDA Agenda 04-13-2011EDA MEETING
Wednesday, April 13, 2011
6:00 p.m.
Mississippi - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Bill Fair,
Matt Frie, and Council members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett
1. Call to Order
2. Approve Meeting Minutes:
a. March 9, 2011
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Consideration of authorizing Ehlers and Associates to complete an in depth review of TIF
District 1 -22 and complete records retention for districts 1 -23 — 1 -36
6. Discuss consideration by the City Council of an update relating to the Monticello Zoning
Code regulations for Adult- Oriented Land uses
7. Marketing Update
8. Director Report
9. Proceed to closed session to consider purchasing properties by the EDA
10. Consideration of accepting Mr. John Chadwick's counter offer for the purchase of his
13.6 acre parcel legally referred to as PID 15517100006
11. Adjourn
Economic Development Authority Minutes 03/09/11
MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, March 9, 2011- 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, Tracy Hinz, Matt Frie,
and Council Members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett- Livgard, Finance Director Tom Kelly
Call to Order
President Bill Demeules called the meeting to order at 6 p.m. and welcomed Matt Frie as the EDA's
newest member.
2. Approve Meeting Minutes
BRIAN STUMPF MOVED TO APPROVE THE FEBRUARY 9, 2011 MINUTES. MOTION
WAS SECONDED BY BILL TAPPER. MOTION CARRIED 7 -0.
3. Consideration of additional agenda items None
4. Approval of EDA Invoices None
5. Presentation by Ehlers and Associates
Bruce Kimmel, representing independent public finance advisors Ehlers and Associates, provided
an overview of Tax Increment Financing (TIF) in general and outlined Monticello's specific TIF
Districts.
He noted that TIF is a powerful economic development tool that allows the capture of incremental
new taxes from new development within a specific area for a specific amount of time without
requiring the approval of other jurisdictions. He explained how TIF is calculated and described
some of the benefits of timing development and pooling funds through the use of TIF Districts. He
presented a map of TIF District locations within the overall project area and briefly noted the status
of each district. Monticello has 13 active TIF Districts throughout the City: four redevelopment,
four housing, and four economic development districts and one renewal and renovation district.
There were many questions about TIF restrictions, obligations, risk, shortfall agreements, options
for repayment and utilization of increments. There was discussion about the "but for" criteria in
establishing TIF Districts and the importance of continued communication with developers.
Economic Development Authority Minutes 03/09/11
Staff commented on the value of the JOBS bill which gives more flexibility to use TIF funds and
speculated as to consequences of possible extension or expiration of the bill. TIF fund balances
would likely be utilized to potentially purchase property in the downtown area based on the
recommendations of the Embracing Downtown Monticello concept plan currently underway. TIF
Districts will continue to be monitored for potential opportunities and/or decertification.
6. Request by J. Edwin Chadwick asking the EDA to purchase 13.6 acres of residentially zoned
Property located adjacent to the Monticello Business Center
The EDA discussed this land acquisition request at their February meeting. After quite a bit of
discussion regarding the merits for purchasing the property a tie vote was cast and therefore no
action was taken. The EDA directed the item be placed on the March agenda when a new EDA
member would be present.
Staff recommended that the EDA discuss possible land acquisition related to the 13.6 acres of
residentially zoned property located adjacent to the Monticello Business Center in a closed meeting.
BILL FAIR MOVED TO PROCEED TO A CLOSED MEETING TO DISCUSS LAND
ACQUISITION ISSUES AFTER THE EDA MEETING. MOTION WAS SECONDED BY BILL
TAPPER. MOTION CARRIED 7 -0.
Discuss 2011 EDA Work Plan
Staff noted that the work plan is based upon emerging EDA priorities as well as those identified
within the Comprehensive Plan. The EDA was invited to provide input to further shape the work
plan into a useful guide for 2011.
Staff pointed out that some of the larger issues included in the work plan involve implementing the
Embracing. Downtown Monticello Project, supporting the work of the Transportation Advisory
Committee; and working with the IEDC to explore the development of a new industrial park in the
community.
The EDA noted the importance of providing both jobs and a skilled, local labor force within the
community. There was discussion about changing the focus from community colleges to technical
colleges in an effort to establish a training program to educate local workers in the skill areas that are
needed. Staff also pointed out that it would be an option to focus on attracting a certain tier of data
centers to Monticello.
There were questions about possible assistance for distressed housing. Staff noted that, at this time,
there are no major grants available for this purpose. She indicated, however, that the Building
Department actively tracks and follows up on foreclosures in the City.
Economic Development Authority Minutes 03/09/11
BILL TAPPER MOVED TO APPROVE THE PROPOSED 2011 EDA WORK PLAN WITH
MODIFICATIONS RELATED TO PROVIDING A SKILLED WORKFORCE, ATTRACTING
NEW BUSINESSES, AND REVISED WORDING FOR THE HRA. MOTION WAS SECONDED
BY BILL FAIR. MOTION CARRIED 7 -0.
Staff agreed to review the work plan periodically throughout the year.
8. Marketing Update
0
a. Conferences
It is anticipated that staff could attend additional conferences and tradeshows for
approximately the same budgeted cost ($11,000) as last year as a result of partnering
opportunities with Positively Minnesota. Monticello would likely partner for Medical
Design & Manufacturing and LifeScience Alley tradeshows and host its own booth at the
WindPower, the MNCAR, and the MN Real Estate Journal- Land Development
tradeshows. Staff also reported that it would be useful to again attend the out -of -state
CoreNet Global Summit and agreed to bring details back to the EDA about that tradeshow
later in the year.
b. Website No report
i 4 ,
W
C. Billboards
The City of Monticello has a rare opportunity to capitalize on billboard space on the
land it owns along I -94 and the Highway 25 intersection (east and west). The City
negotiated a lease agreement with Lamar Advertising that includes utilizing two of the
signs for three years of billboard space for the City at a significant reduction in cost.
The EDA would utilize their new marketing materials on the billboard twice a year. The
target audience would be business commuters from St. Cloud to Maple Grove (or the Twin
Cities) and CEO's traveling from the cities to Monticello and westerly.
BILL TAPPER MOVED TO APPROVE $11,000 OF EDA MARKETING DOLLARS
FOR TRADESHOWS /CONFERENCES AND $1,000 FOR BILLBOARDS FOR 2011.
MOTION WAS SECONDED BY BILL FAIR. MOTION CARRIED 7 -0.
Transportation Advisory Committee
a. Request a member to serve on committee
Staff briefly summarized the purpose of the Transportation Advisory Committee. Bill
Tapper agreed to serve as the EDA liaison on the Committee.
Economic Development Authority Minutes 03/09/11
10. Director Report
The Director Report was included as part of the agenda packet submitted to the EDA.
Staff briefly summarized the Adult Use zoning ordinance that the Planning Commission is
working to amend.
Bill Tapper noted that new business, All Elements, was reported to have been pleased with
its dealings with the City as it sought to establish its business in Monticello.
11. Adjournment
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:35 PM. MOTION WAS
SECONDED BY BRIAN STUMPF. MOTION CARRIED 7 -0.
Recorder: Kerry T. Burri _
Approved: April 13, 2011
Attest:
Megan Barnett - Livgard, Executive Director
4. APPROVAL OF INVOICES:
a. WSB & Associates $4,533.00
*2nd half of Shovel Ready Application survey/engineering requirements
b. I-94 Corridor Coalition $5,624.00
*I-94 Corridor Coalition 2011 membership
c. McComb Group $18,167.22
*Embracing Downtown Study ($111,360 has been spent on the project to date,
plus the $59,000 retainer)
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WSB
cQ A.ewclntes, Inc ,
EnOlneerin0 I Planning 1 Environmental I Censtruotion
City of Monticello
Attn: Megan Barnett
605 Walnut Street, Suite 1
Monticello, MN 56362-8831
February 24, 2011
Project No: 01494-390
Invoice No: 2"'
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Otter Creek Crossing ALTA Survey and Phase 1
701 Xenia Avenue South
Suite 300
Minneapolis, MN 66416
Tel: 763-541-4800
Fax: 783-54.1-1,700•- 1
7
Professional Services from January 01, 2491 to January 31, 2011 MAR — 3 2011
Professional Personnel
Project Management/Coordination
Bisson, Shlbani
Koenen., Jeremy
Environmental Documents
Bergen, Heather
Bisson, Shlbani
Moffatt, Andrea
Wallerstedt, Jamie
Whittington, Michael
Survey Drawing
Helder, Peter
Totals
Total Labor
Billing Limits
Total Billings
Limit
Comments:
Hours
Rate
Amount ry
.50
121.00
60.60
,50
B6,00
43,00
3.50
56.00
196.00
2.00
121.00
242,00
2.00
126.00
252.00
4,50
96.00
432.00
18.00
105.00
1,890.00
13.60
105.00
1,417.50
44.50
4,533.00
4,533.00
Current
Prior
To -Date
4,533.00
4,536.50
9,069.60
9,069.50
Total this Invoice $4,533.00
Approved by: QkL
Reviewed by: Bret Weiss
Project Manager: Shlbani Bisson
Minneapolis I St. Cloud
Equal Opportunity Employer
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I-94 Corridor Coalition
21370 John Milless Drive, PO Box 95, Rogers MN 55374 763.428.2921
INVOICEa,
March 1, 2011
Megan Barnett
City of Monticello EDA
505 Walnut Street
Monticello MN 55362
Coalition Membership $5624.00
Total Due: $5624.00
Method of Payment
Check (payable to 1-94 Corridor Coalition
Amount Enclosed: $
Mastercard Visa
Card Number:
tzn'
MAR — 7 2011
l. 't
,(,month/year)
Authorized Signature:
Thank you for your support of the 1-94 Corridor Coalition.
i
oio MCCQMB GROUP Ltd.
0011 RETA I L ECSO N S U LTANTS
March 4, 2011
Statement #3903
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STATEMENT --- RE:
Previous Balance
Payments Received
EMBRACING DOWNTOWN MONTICELLO STUDY
Professional Services
McComb Group, Ltd
Economic Development Services, Inc.
Architectural Consortium L.L.C.
Westwood Professional Services
Subtotal
Total This Statement
BALANCE DUE
Retainer Balance $ 59,000.00
Statements for each firm are attached.
$ 51,527.90
$ 51,527.90
$ 3,319.25
1,572.81
2,474.66
10,800.50
$ 18,167.22
$ 18,167.22
t-JD�� " � ,167.22
9 RL
MAR -8 2011 x
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339-7000 Fax: (612) 338-5572
00o MCCOMB GROUP, Ltd.
O
❑D❑ RETAAI L ECSON SULTANTS
March 4, 2011
Statement #3903A
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STA TEM NT -- RE:EMBP�ACDIG DOVv NTO`JJN-MONTICELLO STUDY
Previous Balance
Payments Received
Professional Services
James B. McComb
Linda Oie
Susan M. Nache
Subtotal
Expenses
Mileage
Computer
Report Production
Subtotal
$ 20,929.00
$ 20,929.00
6.50 hrs. @ $ 275
$ 1,787.50
9.00 hrs. @ $ 150
1,350.00
0.75 hrs. @ $ 100
75.00
$ 3,212.50
$ 46.00
49.50
0.25 hrs. @ $ 45 11.25
0 1 nK -rc
Total -This Statement $ 3,319.25
BALANCE DUE $ 3,319.25
Terms: Net ten days. Interest (at a rate of 1.5 percent per month) will be charged on all balances outstanding at the
end of the month.
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339-7000 Fax: (612) 338-5572
Ecomomic
Development
5ervicco
March 2, 2011
James B. McComb, President
McComb Group, Ltd.
222 South Ninth Street
Suite 380.
Minneapolis, MN 55402
Invoice
Embracing Downtown Monticello
Professional Services at $135/hour for January 2011
Alternatives (8.25 hr)
Project Management/team & staff coordination (2.75 hr)
Communication (.25 hr)
Expenses (106 miles@ $.51)
Total
Please make checks payable to Economic Development Services, Inc.
3109 West 50°i St, #204 Minneapolis, MN 55410
(612)925-2013 fax (612)925-2942
email; jking@econdevelop.com
$1,113.75
371.25
33.75
54.06
$1,572.81
Z
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D "U,
'March 4., 2011
McComb Group Ltd..
222,SouthNinth Street, Suite 380
Minneapolis, MN 55402
-Attu: Jim McComb
Project: Downtown Monticello
Architectural Consortium LLC PioJect # 10-1068-01 Invoice 46
Billing Period; February I- March 3, 201.1
ARCHITECTURAL DESIGN SERVICES
Basic Seivices:
Team meeting to review plan options
Team meeting to review presentation
Meeting with staff
Site forces :diagram
Feedback meeting with staff
Atchitectural fees; $2,400.00
Reimbursable Expenses:
Copies $8.40
Sales tax, @7.75 % $.26
Mileage U&M
TOTAL DUE $ 2i4.74.66
Payment due within 30 days of receipt of invoice Thank You,
Payable to, Architectural Consortium L1.,C
90.1 North Third Street, Suite 220
Minneapolis, MN 55401
Attn: Kathy Anderson
l`O�^r Westwood Professional Services
INVOICE CE 7699 Anagram Drive
Eden Prairie, MN 55344
MAI
7-5150
W
TOLL 952-9388-937
FAX 952937-5822
TOLL fflEE 1-888-937-5150
EMAIL wps®wesiwoodpS.corn
Westwood www.weatwoodps.com
February 17, 2011
McComb Group, Ltd. Project No: 20101228.00
Attn: James B. McComb Invoice No: 1101235
222 South Ninth Street, Ste.#380
Minneapolis, MN 55439
Professional Services from January 01 2011 to January 29,_2011
Project McComb Group/Monticello/Downtown Revitalization Plan
For Professional Services provided per our. agreement.
Task 2020 Project Management & Coordination
Service Hours Rendered Amount
1.50 262.50
Total this Task $262.50
Task 2500 Transportation Data Collection
Task 2520 Traffic Issues Analysis
Task 2700 Alternative & Refined Plans
Service Hours Rendered Amount
1.50 262.50
Total this Task $262.50
Service Hours Rendered Amount
6.00 720.00
Total this Task $720.00
Service Hours Rendered Amount
59.50 8,657.50
ESTARLISHED IN 1972 ARIZONA COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will accrue at 1.25% per month on Invoices over 30 days
Task 2900 Client Meetings
Total this Task $8,657.50
Service Hours Rendered Am
4.00 100x
Total this Task $700.00-'
Task 9999 Reimbursable Expenses
Reimbursable Expenses
Reproductlons/Photos 198.00
1/2712011 Large Format Color Copies 198.00 198.00
Total Reimbursables
Total this Task $198.00
Total this Invoice $10,804.50
Thank You. /ay
ESTAWSI•IEU IN 1972 ARIZONA --.— O MINNESOTA KANSAS OREGON TEXAS Paget
interest will accrue at 125% per month on invoices over 30 days
5. CONSIDER AUTHORIZING EHLERS AND ASSOCIATES TO COMPLETE AN
IN DEPTH REVIEW OF TIF DISTRICT 1 -22 AND COMPLETE RECORDS
RETENTION FOR DISTRICTS 1 -23 —1 -36.
A. REFERENCE AND BACKGROUND:
District 1 -22:
TIE District 1 -22 is one of the City's largest and most cumbersome TIE districts.
As part of the 2009 TIE Management Plan completed by Northland Security, it was
identified that this district needs to be further analyzed and ultimately decertified.
The district has since passed its four and five year knock down rules, thus
significantly limiting the City's ability to utilize dollars within this district. It
should be noted that there is approximately a two million dollar fund balance in
district 1 -22. However, the district is still subject to outstanding obligations that
will need to be paid as part of a decertification strategy.
Due to the fact there is a substantial amount of potential "surplus" funds, staff
would like Ehlers to complete an in -depth review of the district to determine how
much surplus the EDA could pool and utilize for a project, what types of projects
would qualify, and what amount the EDA will need to decertify.
Ehlers and Associates is proposing to charge $195 per hour at a maximum fee of
$1,500 to complete the review and outline a definite strategy. Attached is a
proposal from Bruce Kimmel.
Records Retention:
In 2008, Ehlers completed a records retention project to organize a majority of the
City's TIF files. As part of the project, City Staff also went through and completed
organization of some of the TIF record books. However, staff time is very limited
and to date the records retention project has still not been completed. In order to
finalize the TIE records retention project staff is requesting Ehlers complete the last
six districts. Ehlers is proposing a maximum cost of $5,000. This fee can be
accounted as an administrative charge to one of the districts. The proposed cost of
the records retention project will not affect the EDA's budget. The project is
needed in order to get past staff and consulting files aligned to ensure we have all
proper documentation per district. Furthermore, it is critical to have TIE files in
compliance in the event the City would be subject to a State TIE audit.
B. STAFF RECOMMENDATION:
City staff recommends moving forward with both projects. The proposed $5,000
EDA 4.13.11
and $1,500 fees are very minimal compared to the expected results. Furthermore
the fees can be charged to applicable TIF districts as administrative fees and
therefore will not affect the EDA's general fund. City Staff would request Ehler's
complete district 1 -22 review in a two months time frame.
It is time for the EDA to clean up and decertify TIF 1 -22. The EDA and City would
greatly benefit from determining administrative pooled funds, identifying an
eligible project, paying off obligations, and then decertifying the remaining
balance. Decertifying will also assist in getting properties back onto the tax rolls for
2012. Ehler's proposal will assist the EDA in achieving these objectives and could
be a financial tool for future downtown redevelopment.
City staff plain and simply does not have time to finish the records retention project
that was started in 2008. There are many files that are duplicates and other
situations where documents are missing. Completing this project will greatly assist
future reference to the City's TIF districts and is key in keeping the files in
compliance with State regulations.
C. ALTERNATIVE ACTION:
1. Motion to approve authorizing Ehlers and Associates to complete an in depth
review and defined strategy for TIF District 1 -22 and complete record
retentions for districts 1 -23 through 1 -36.
2. Motion to deny moving forward with the in depth review of TIF District 1 -22.
3. Motion to deny moving forward with the record retention project for districts 1-
23 through 1 -36.
4. Motion to table for further action.
D. ATTACHMENTS:
1. Ehler's proposal
April 7, 2011
Ms. Megan Bamett- Livgard, Economic Development Director
City of Monticello and Monticello EDA
505 Walnut Street
Monticello MN 55362
Re: Proposal to Provide TIF Advisory Services
Dear Ms. Barnett:
On behalf of Ehlers, we are pleased to present this proposal to provide TIF advisory services to the City of
Monticello and the Monticello EDA. Specifically, this proposal is in response to your interest in potentially
hiring Ehlers to assist the City/HRA with two projects:
1. An updated analysis of TIF District 1 -22, culminating in a detailed District action plan; and
2. Completion of the TIF district and project record management project that we worked on in 2008.
TIF District I -22: In March 2010, Ehlers analyzed and summarized City/EDA options for the future use of its
Downtown Redevelopment TIF District 1 -22. The 2011 engagement will pick up where the 2010 analysis left
off, updating the financial information and revising the "general strategy" options in advance of the EDA's
completion of its Downtown Revitalization Study. Ehlers will then work with the EDA to develop a specific TIF
District 1 -22 action plan, informed by both the updated fiscal analysis and the policy objectives identified in the
Revitalization Study. The targeted outcome is a definitive, detailed plan, endorsed by the EDA and City Council
that uses District resources wisely and eliminates the need to revisit any further the District's status and options.
Ehlers proposes to invoice our time on an hourly basis, at our standard rate of $195 per hour, up to a maximum of
$1,500 for the TIF 1 -22 analysis / strategy update. Our costs after that update will depend on the Revitalization
Study outcomes and how the City and EDA want to incorporate them into the specific TIF 1 -22 action plan. The
$1,500 maximum is inclusive of all costs, and we will not incur any costs above the maximums stated above
without your written consent. Finally, the City/HRA has the ability to pay these (and any other TIF management
costs) from its existing TIF administrative funds.
TIFDistrict and Project Record Management: In December 2008, Ehlers completed a comprehensive
reorganization of the City's records relating to TIF Districts 1 -1 through 1 -22 and the development projects that
occurred within each district. This project included creating completely new district and project binders and
ensuring that the City possessed all documentation required for a TIF audit or other examination. The City would
now like Ehlers to overhaul its files relating to Districts 1 -23 through 1 -36. Based on the cost of the 2008 project,
and assuming efficiencies from having completed previously TIF file reorganizations, Ehlers proposes to invoice
our time on an hourly basis, at our standard rate of $195 per hour, up to a maximum of $5,000. The terms stated
for the TIF 1 -22 project apply here, as well.
Thank you for your consideration of our proposal. We hope to work with you on these important efforts.
Sincerely,
Bruce Kimmel
Financial Advisor
EHLERS
LEADERS IN PUBLIC FINANCE
Todd Hagen
Financial Advisor
www.ehlers- inc.com
Minnesota phone 651- 697 -8500 3060 Centre Pointe Drive
Offices also in Wisconsin and Itlinois fax 651- 697 -8555 Roseville, MN 55113-1122
toll free 800- 552 -1171
EDA Agenda: 04/13/11
6. Consideration of an update relating to the Monticello Zoning Code reputations for Adult -
Oriented Land Uses. (AS/NAC)
A. REFERENCE AND BACKGROUND:
A review of language pertaining to Adult- Oriented Land Uses was included within the base
project scope of the recent comprehensive amendment to the Monticello Zoning Ordinance.
In a long series of legal cases, adult entertainment and arts- related activities have come under
the protection of the "Free Speech" clause of the first amendment. For this reason, the City
has limited ability to regulate adult- oriented uses and must provide opportunity for their
location. As such, the purpose of the City's adult use regulations is to provide for the
establishment and operation of adult uses within the City while providing controls which limit
negative impacts upon residential and commercial areas.
In updating of the zoning code language for adult -uses, it was found that the City needed to
complete a more detailed inventory analysis related to land area available for adult uses. This
was due mainly to changes to the City's overall land area and boundaries, and the inability to
include Xcel Energy's large I -2 zoned area within the area available for adult uses. These
changes have raised the need to adjust zoning allowances and buffer distances to ensure that
the ordinance continues to meet legal standards in this area.
Consideration on how best to structure amendments to the zoning ordinance for Adult Uses
relative to the land use analysis is underway by the Planning Commission. It is important that
the City carefully construct its adult -use ordinance in order to minimize the potential for legal
challenge of the code, which could ultimately result in the complete negation of the zoning
ordinance.
While the City completes the Adult- Oriented Land Use regulation amendment process, the
City Attorney recommended an interim ordinance prohibiting the siting of new adult uses
within the community. A moratorium ordinance was enacted by the Council on February
101 2011 to allow adequate time for review and development of ordinance language.
The EDA should be aware of the legal basis for the Planning Commission and Council's
decision - making regarding adult uses as both the previous and current code allow adult -uses
within the industrial zoning districts. The location of adult -uses within industrial areas is
common throughout the country and is primarily due to the fact that industrial land areas
provide the largest contiguous amounts of land area that can be made available to these types
of uses, with the least intrusion by buffering from "sensitive areas" such as schools, religious
institutions, etc.
Generally, the ordinance changes being considered by the City will not alter or impact the
basic nature of industrial uses in the I -1 or I -2 areas. Rather, the code amendments will serve
to balance the need to provide available land for adult- oriented uses while mitigating their
impacts on surrounding land uses.
EDA Agenda: 04/13/11
On April 5th, the Planning Commission reviewed two primary ordinance amendment
alternatives relating to Adult- Oriented Uses.
The first option utilizes the traditional 5% threshold approach. Five percent is a de facto
percentage established as an appropriate level of available land area thorough a series of court
cases. This approach is likely the "safest" approach, in regard to being able to defend the
City's ordinance from a legal challenge. With a 275 foot buffer from sensitive uses, the
current land use pattern would yield 5.07% of the City's net usable land area to the potential
for adult uses.
To follow this approach, the City would need to make the following changes:
1. Amend the I -1, Light Industrial District to add adult- oriented uses as a permitted
use, with the same conditions in the I -2 district.
2. Amend the regulations to provide that no parcel with frontage on I -94 would be
eligible for an adult- oriented use. This amendment is intended to avoid the highest
profile properties advertising such activities to the passing public.
3. Change the regulations to provide for a buffer distance of 275 linear feet, reduced
from the current 700 feet.
4. Retain all other regulations as currently adopted.
This approach assumes that the City will not want adult- oriented uses abutting the freeway,
and calculates the opportunity area with this assumption. To accomplish this, an additional
restriction would need to be added to the I -1 District which specifically prohibits their
location on freeway- abutting parcels as a basic zoning restriction. To do this, the City would
need to restructure its current two industrial districts into three districts. In short, task 2 above
would be divided into the following subtasks:
a. Create a new "I -3, Freeway Industrial District" which mirrors the uses in the
original I -1, with no adult- oriented uses.
b. Rezone properties with freeway exposure to the I -3 District (which has the effect
of leaving them in the same position they are now).
This is the preferred approach of the City Attorney's office.
However, staff was concerned that the creation of a new base zoning district, changes to the
current base district, and rezoning of several parcels would be confusing to the property
owners, and cumbersome to administer. As a result, a second option was developed that
relies on the "number of eligible adult- oriented parcels" approach which has been upheld in
some of the cases cited by the Attorney.
The second approach essentially creates a buffer of variable distance by establishing an
ordinance that allows adult- oriented uses only on parcels that don't abut sensitive use parcels,
EDA Agenda: 04/13/11
overlaying portions of both the I -1 and I -2 Districts. Thus, the I -1 and I -2 Districts would
provide for the opportunity for adult- oriented use on parcels that do not share a common
property line with parcels zoned or used for residential, school, park, or have exposure to the
interstate freeway. The net result of this approach would be a percentage of about 4% of the
City's total area, and total number of as many as 45 separate parcels available.
The City Attorney's office endorses this approach as being consistent with cases where
restrictions have been successfully defended.
Steps to accomplish this approach include mapping a specific area, rather than just relying on
a buffer distance to define the potential area. Moreover, this approach would not change over
time — a benefit in that it is more predictable, but potentially negative if the City does not
monitor the introduction of new uses — such as a commercial daycare operation — into the
district.
To implement this approach, the Planning Commission would need to do the following:
1. Remove adult- oriented uses as a permitted use from the I -2 base district language.
2. Amend the current adult use regulations to stand alone as a separate overlay
zoning district, with the chosen overlay district title.
3. Map and adopt the overlay district for the designated area.
This approach ends up being least disruptive to current property owners. The permitted uses
of the base district do not change significantly, and nobody would need to have their property
rezoned to reflect district language changes.
The Planning Commission recommended the second alternative, the creation of a Special
Uses Overlay, to the City Council. The Planning Commission cited this approach as less
disruptive to existing property owners and the potential for ease of administration and
modification as the City grows. The Planning Commission's recommendation will go
forward to the City Council on April 25`h
To follow is additional general information for the EDA regarding Adult- Oriented Land Uses,
and the legal underpinnings of zoning related to these uses. The information has been
assembled from research prepared by Northwest Associated Consultants and Campbell
Knutson.
ALTERNATIVE ACTIONS:
No specific action is required by the EDA. The information is provided to for informational
purposes. Again, the ordinance changes being considered by the City will not alter or impact
the basic nature of industrial uses permitted in the I -1 or I -2 areas.
EDA Agenda: 04/13/11
QUESTION & ANSWER: ADULT USE ORDINANCE
Q.1. Why does the City have an ordinance that allows these uses?
A.I. In a long series of legal cases, entertainment and arts - related activities have come under
the protection of the "Free Speech" clause of the first amendment — perhaps more
descriptively thought of as "Free Expression ". As a form of expression with First
Amendment protection, the City has limited ability to regulate adult- oriented uses.
Q.2. Doesn't creating an ordinance allowing adult uses encourage their location in the
community?
A.2. Probably not. Purveyors of adult entertainment base their location decisions like any
other business. These types of uses are allowed by nature of their first amendment protection
— not having regulations would diminish the City's ability to manage where they go in the
community.
Q.3. Why don't we create an ordinance thatprohibits these uses?
A.3. The courts have made it clear that such ordinances are unconstitutional as an illegal
constraint on expression. If a City is found to have such an ordinance under a legal challenge,
a court would throw out the City's code, and the adult use would have free rein to locate
where they wish, without the City's ability to manage the impacts of the use.
Q.4. Can we create an ordinance that includes these uses as potentially allowed, but limits
their location in such a way that effectively zones them out of the City?
A.4. No. This would be called a "pretextual" ban — the City may regulate certain aspects of
these uses, but may NOT have an ordinance that effectively bans them under the guise of
"regulation ". A court would treat this type of ordinance the same as an outright prohibition.
Q.5. Well then, what kinds of regulations can we adopt?
A.5. In the area of speech regulation, the City typically has the ability create what are
commonly called "time, place, and manner" regulations. As a general rule, the City may not
discriminate by the content of the speech, nor may it discriminate by the identity of the
speaker. However, the City can place non - discriminatory restrictions based on location, or on
the style of delivery of a message, or on the duration or timing of a message in the protection
of public health, safety, and welfare. In addition, the City may prohibit "obscene" speech.
Thus, an adult use establishment which is otherwise properly located may be prohibited from
displaying messages that are judged to be obscene.
Q.6. What do you mean by `properly located "?
A.6. A number of US Supreme Court cases have addressed this issue. The most relevant is
City of Renton, WA v. Playtime Theatres, a case that arose in Renton, Washington over a
EDA Agenda: 04/13/11
challenge to the City's ordinance regulating the location of adult theatres. In Renton, the
Court majority established that the City's regulations were not regulating the content of the
speech, but rather, regulating the "secondary effects" of that speech which might be imposed
on the public, especially populations judged to be sensitive to these effects. Renton's
ordinance, and the court opinion validating it, established a number of standards for the
regulation of adult- oriented uses. Cities were granted the ability to regulate the location of
these establishments to mitigate the potential secondary effects of such uses.
Q. Z What kinds of regulations can the City adopt?
A.7. Essentially, the City can create restrictions by zoning district that limit the ability of the
establishments, or the patrons of the establishments, to have an impact on defined sensitive
populations. These usually take the form of defining the uses, specifying which zoning
district such uses can be located in, and then creating a buffer zone from sensitive land uses
that the City wishes to protect from the secondary effects of the establishment. It is critical to
note, however, that the zones and the buffers need to be placed in such a way that adult use
have a "reasonable" opportunity to locate in the community (see the comment on "pretextual"
prohibitions above).
Q.B. How much "opportunity" does our ordinance have to provide to avoid being
considered a `preteztual "prohibition? One lot? An entire shopping center?
A.B. Unfortunately, this is where the requirements are a little murky. The court's standard in
Renton was a "reasonable" opportunity, a preciously minimal guide. In Renton, Washington,
evidence was introduced that the ordinance regulating adult uses created an opportunity area
of 5% of the City. The courts found this area to be meet its' standard of reasonableness. In
the years since, many communities have confused the 5% threshold as some sort of silver
bullet standard. It is not. However, it is the only real guidance we have, so we think of it as a
good target to show evidence of reasonableness. Coming too far short of that threshold
should raise some questions about the effect of the ordinance in illegally regulating
expression.
Q.9. What are these sensitive uses we can protect?
A.9. Monticello's ordinance is typical, listing the following:
• Residentially zoned property.
• Agricultural land located in the neighboring township or in the City that is
guided for residential use.
• A licensed daycare center.
• A public or private educational facility (elementary, middle, junior high or senior
high school).
• A public library.
• A church.
• Amusement places such as roller rinks, dance hall and bowling alleys.
• Liquor sales (establishments)
EDA Agenda: 04/13/11
Q.10. How much buffer can we leave from these uses?
A.10. Monticello's current ordinance provides a 700 foot buffer. Others rely only on the
zoning district boundaries, and several ordinances use 100 feet or some increment as their
buffer zone. The balancing act is to provide some separation, while continuing to provide a
reasonable opportunity area.
Q.11. What if all of the land we provide is taken up by buildings and current uses?
A.11. The courts have been clear that it is not the City's responsibility to play realtor for the
adult use establishment — they must fend for themselves in the real estate market and if all
properly zoned and located parcels are full, that's the market working, not the ordinance, just
as it would be for any other business looking to locate in a particular zoning district.
Q.12. What do we need to do?
A.12. Because staff, including the City Attorney, believe that the Xcel Energy property is not
likely to be considered "eligible" due to Nuclear Regulatory Commission requirements, not to
mention its proximity to large areas of parkland, the remaining I -2 zoned land provides less
than 3 percent opportunity area, and just over 1 percent when the current 700 foot buffer is
applied. The challenge will be to find some combination of buffer distance and increase in
the area of properly zoned parcels to get to "reasonable" — in general, something closer to 5 %.
Economic Development Director Update:
IEDC:
The IEDC reviewed the adult uses item at their April meeting. They had no additional
comments.
Planning Commission:
The Community Development Director completed a detailed housing report that is attached to
this report for your information.
Work continues at a brisk pace on the Monticello Parks and Trails Plan & Resource update.
Below is a bullet point summary of progress.
• Park survey complete, results tabulated.
• Preliminary survey findings and draft park plan framework presented to Parks
Commission and MCC Advisory Board.
• Meeting with Monticello School District representatives set for early April.
• NAC in contact with local athletic associations regarding plan
• NAC will be meeting with Embracing Downtown Monticello engineering firm,
Westwood, to coordinate downtown trail and park planning efforts.
• NAC will incorporate the concept sketch for the Bertram Chain of Lakes recreation area
into the draft plan.
• Community meetings regarding the draft plan will be scheduled for April/May.
• The City has authorized WSB to begin working on the GIS base park and trail layers, and
the development of a new online mapping interface to integrate, park, trail, activity,
history and point of interest information.
• Database of parks, trails and park activities complete. Includes lengths, surfacing,
amenities and more. Provided to WSB for GIS layer and web mapping.
• Database of points of interest/historic sites created. Fact sheets on each in progress
(Senior Service Program employee Carole Larsen compiling and researching).
• Website application for parks /trail drafted. Parks, trail and activities tabs all complete in
draft form. URL set -up in progress.
BR &E:
The BR &E Leadership Team will be meeting on Wednesday, April 13`h to review the status
of established priority projects. The purpose of the meeting is to ensure that each project team
is making progress and achieving goals. Generally speaking the following goals have already
been accomplished:
1. Transportation: Transportation Plan adopted by City Council, subsequent studies
authorized for Fallon Avenue and a potential second river crossing. The City also
recently established a Transportation Advisory Committee (TAC).
2. Communication: Centralized website established, resources incorporated into
Chamber directory. Monthly site visits to local businesses.
3. Downtown/River: City Staff, local business leaders, and MCC staff are in the
process of establishing recreation programs on the river.
Inquiries:
Wright County Economic Development Partnership received an inquiry from a manufacturing
company looking to locate in Wright County. City Staff submitted viable options of both city
and privately owned parcels. The new Director is in the process of setting up a meeting to
review Wright County opportunities.
Industrial Marketing / Venues:
Information pertaining to opportunities and amenities in Monticello was direct mailed to
companies in St. Cloud. A follow up concierge piece was sent the week of April 4, 2011. Staff
will also work on establishing a commercial broker breakfast event in April. The idea is to
invite applicable brokers to make them aware of what Monticello has to offer potential clients.
Business Communications & Retention Initiatives:
The City hosted a State of the City event at the March 15`" Chamber Lunch. The event was
well attended. Staff provided detail information pertaining to transportation, FiberNet,
economic and community development, and Bertram Chain of Lakes. At the end of the
meeting staff distributed Concierge postcards to everyone in attendance. We are making every
effort to let the business community know that Monticello has many resources and we are
here to help them in any way possible.
The Chamber / Concierge Directory is anticipated to be delivered to the business community
in April.
Embracing Downtown:
On March 29, 2011 a downtown stakeholder meeting was held to unveil preliminary design
concepts for downtown Monticello. The meeting was well attended with nearly 40 business
and land owners present. The consulting team reviewed four preliminary design concepts.
After a formal presentation, attendees were split into four groups to further discuss each
concept. Overall, variations of the concepts were well received. Business owners had a lot of
questions pertaining to how the plans ultimately affect their business and location. Once a
final alternative plan has been selected the consulting team will complete a phasing and
financing plan to assist the City in turning a plan into reality over time.
Economic Development related articles:
Attached please find a copy of an article regarding MN's recession recovery published by
Positively MN.
Future Meeting Dates:
1. EDA: May 11, 2011
2. Embracing Downtown Community Meeting: April 18, 2011
EDA April 13, 2011
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Dave Senf
hiss* ,
NO Wnmsota M0 sac
l
Minnesota's economy is rebounding from the Great Recession at a fasterpace
than the rest of the country, but the recovery this time looks nothing like the
rebound after the 1990 -91 recession.
Trends published an article
several years ago — "Moving
on Up:'Ihe Great 1990s
Minnesota Expansion"— that
praised Minnesota's economic
performance during the 1990s.'
Re state economy got a head
start on the boom years by
rr ging to avoid the worst
of ._.e country's first jobless
recovery following the 1990-
91 recession. Minnesota's job
growth surged while the national
job market limped along for two
more years after the recession.
Minnesota employers increased
payroll numbers at roughly twice
the national rate between 1991
and 1993, hiring 4 percent of all
employees added to U.S. payrolls
during the firstjobless recovery.
2,800,000
2,400,000 --
a
900,000
1990 1991
As a result Minnesota's share
of the nation's wage and salary
employment shot up above 2
percent for the first time (see
Figure 1). Job growth in the state
continued to outpace national
job growth, albeit not by much,
through 1996, roughly tracked
national job growth for the rest
of the boom years and through
the 2001 recession, then slipped
behind the national pace in early
2003.
Minnesota workers benefited
from what was essentially an
18 -year economic expansion
that kicked off in 1984. Near
the end of the expansion,
labor shortages developed
and unemployment dropped
to record lows. Minnesota's
average annual unemployment
dipped below 4 percent for seven
straight years between 1995 and
2001, achieving a record -low 2.8
percent unemployment in 1998
and 1999.
`the state was a job seeker's
nirvana during the late
1990s, producing record
labor force participation and
employment -to- population
levels.lhe low jobless rate even
induced domestic migration
to Minnesota for the first time
in three decades as workers
relocated from other states to
take advantage of favorable job
opportunities.
Wages for Minnesota workers
increased faster than nationwide
1992 1993 1994 1995 1996 1997 1998 1999 201
Sourte_ Seas. 1,Mjasted employment from Current fmployment
FIGURE 1 1Wt'
206
2.04 z
-2.02 0
g200-
a
198 „
I: I Y4
11 2002 2003 i2004 2005 2006 2007 20082009 -2010
(CES) program, Minnesota Department of Emajoyment and Economic Deueloommt
MINNESOTA MIRACLE minnesota economic TRENDS march 2011
Dave Senf
FIGURE
Minnesota's Per Capita and
Median Household Income Rankings; 1929.2009
0 - -
-- 1 -
Per Capita Income Rank
-
®
5
• Median Household Rank !
o
o
o
10
� -
I
m
•
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• •s
•
•o
�.
m•os
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ss ®
m
N
20
25
0• •
m
• •
o
o
e
30
35
1919 1929 1939 1949 1959 1969 1979 1989 1999 2009
Source. Per copita income data fmmBureou offconomicAnalysis, U.S. Department ofCommerce.
-
Median householdmoomedatofromU.SCensus. - -
in response to the tight labor
market, driving Minnesota's
average annual wages and
salaries from 2 percent below
the national average in 1995 to
2 percent above by 2003.
The net result: By all broad
economic measures Minnesota's
economy outperformed the
national economy during the
1990s, boosting the state's
relative economic position to an
all -time high.
One decade, one mild recession
and one Great Recession later,
Minnesota's share of the national
economic pie has slipped a bit,
but the gains achieved during the
boom years haven't completely
faded. Minnesota is rebounding
faster than the rest of the country
from the Great Recession, and
may:
�F
its relative economic picture is
once again on the upswing.
The state lost a smaller share of
its payroll employment than the
rest of the country during the
Great Recession, with a peak -
to- trough decline of 5.8 percent
versus 6.1 percent nationally.
More importantly, the state has
been adding jobs at a much faster
pace than the country since job
growth resumed in late 2009.
Payroll totals in Minnesota
climbed 1.9 percent between
September 2009 and November
2010, or almost three times as
fast as the 0.7 percent increase
nationally.
There is still a long and
bumpy job recovery ahead for
Minnesota and the rest of the
minnesota economic TRENDS march 2011
country, but for now the state
is gaining ground relative to
the rest of the nation. Through
last November, Minnesota had
recaptured 33 percent of the jobs
lost during the Great Recession,
while nationally only 11 percent
of the jobs had been recovered.
Minnesota's relatively strong
job growth over the last year
has lifted its share of payroll
employment to near the record
level recorded during early
2003. Other broad economic
measures have stopped slipping
and will likely move upward
again if Minnesota's job growth
continues to run ahead of the
national pace.
During the boom years of the
1990s, Minnesota's per capita
personal income and median
household income rocketed
to the upper tier after having
hovered in the mid -teens during
the previous two decades (see
Figure 2).
Minnesota's per capita income
climbed to the eighth - highest by
2003 before starting to tail off as
state job growth lagged behind
the national rate. Over the last
few years, Alaska, California,
Illinois, Hawaii, Virginia,
Washington and Wyoming
have passed Minnesota, pushing
the state's standing down to
15th in 2009. Minnesota's per
capita income slipped from 9.4
to 5.6 percent higher than the
U.S. average between 2004 and
NO MINNESOTA MIRACLE
2009. The decline translates into
$1,500 per person in 2009.
U.S. census data on median
household income nationally
show a similar track for
Minnesota. The state's median
household income ranking
jumped from the mid -teens
in the early 1990s to second
place behind Maryland in
2000 before dropping to 11th
in 2009. Minnesota's median
household income was reported
by the census to be 29.2 percent
higher than the national median
household in 2000. Nine
years later the state's median
household income was only 12.7
percent higher than the national
than household.
The state's 2009 median
household income would have
been roughly $64,300 rather
than the actual $56,100 reported
for 2009 if Minnesota had held
on to the 29.2 percent advantage
enjoyed in 2000.
Minnesotan's relative income
slide between 2003 and 2009
occurred across all major
components of personal income
except for personal current
transfer receipts (see Figure 3).2
Personal current transfer receipts
are primarily government
payments, including Social
Security, Medicare and Medicaid
benefits, food stamps, veterans
benefits and unemployment
'ranee compensation.
_mesota's share of these
X10 MINNESOTA MIRACLE
sources of income declined
during the boom years but
climbed over the last decade.
Minnesota's share of the other
personal income components,
including the largest source
of income, wage and salary
disbursements, spiked during
the boom years before peaking
around 2003. Wages and salaries
then waned from 2005 to 2007
before flattening out during
the Great Recession. Most of
the state's relative loss in per
capita income can be traced to
lower shares of wage and salary
disbursements and dividends,
interest and rent income.
Minnesota's share of the national
wage and salary pie probably
got a tad bigger in 2010 because
the state added jobs at a faster
clip than many other parts
liavP CPnf
of the country. Unlike some
other states, Minnesota is not
experiencing a jobless recovery.
The employment rebound may
not be as robust as hoped for,
given the depth ofjob loss
during the Great Recession, but
job opportunities are improving
as layoffs gradually return to pre -
recession levels and hiring slowly
picks up.
Job creation over the last year
in Minnesota has been led by
the administrative and waste
services (temp help jobs),
accommodation and food
services, and health care and
social assistance sectors.
Manufacturing, private
educational services, retail and
information hiring have also
shown encouraging signs of life.
minnesota economic TRENDS march 2011
_
FIGURE 3 -
Minnesota's Share of
2
U.S. Personal Income Components, 1989.2010
[.E
.0
a
1.9
�-
E
1.8
wageand5alary - Personal Current
Income
17
Disbursements Transfer Receipts I
Personal Income 'Ilion Dividends, Interest $38.6 Billion Wa eandSala
$16.9 Billion
o
229.0 i ion and Rent Isupplements
a,
1.6
$40.2 Billion $29.8 Billion
a
d
iO
1.5
p
1.4
1.3
1.2
89 00 10 89 00 10 89 00 ` 10 89 ` 00 10 89 -00 10 89
" 00 10 -..':
- Source
Bureau Df &dnomirAnalysa, US DepartmentofCammerre Inromn data for2010ts thioughthethiidquarter
f heamountsshownaretheseasoriallyodJustedonnualestimatesfortheth udquarter201Q
minnesota economic TRENDS march 2011
Dave Senf
aux� FIGURE
The dismal housing market
Minnesota Job Growth After Recent Recessions
continues to be a major
dog 200910 0 200203 : 1991 -92
roadblock to a more robust
Localgovernment
job market, with construction
—,
and real estate jobs declining
State government
over the last year. Those sectors
-F=
added jobs during the previous
- Federal, civilian mm
recoveries.
Otherservices, except public
administration
Job growth over the last year
Accommodation and food services
looks a o
loo J
like t l more e job
growth experienced after
Arts, entertainment, and recreation
the 1990 -91 recession than
after the 2001 recession
- Healthcareandsdcialassistance
(see Figure 4). Minnesota's
Educational services o
payroll employment through
November 2010 was up 40,700
Administrative and waste services
jobs in the 14 months since
Management of companies and enterprises ��
bottoming out in September
2009. Fourteen months
Professional, scientific, and technical services m -
after the 1990 -91 recessions
50,100 jobs had been added to
Real estate and rental and leasing M11111M
Minnesota payrolls. Minnesota's
first and so far only jobless
Finance and insurance
recovery followed the 2001
Information mmmmumemo
recession, when just 1,700 jobs
�
had been added 14 months
Transportation and warehousing
and utilities °
after bottoming out.'
Retail trade MMMMOM
MM
While Minnesota has for now
Wholesaletrade
dodged another jobless recovery
Nondurable goods manufacturing, -
and is again gaining a larger
-,T..�
share of the nations economic
pie, the state's labor market has
Durable goads manufacturing
L'
just begun to climb out of the
Construction
deep job hole carved out by
the Great Recession. The state
N atural Resource s and Mining
needs three more years of job
- 15,000 10,000 -5,000 0 5,000 10,000 15,000
growth similar to last years
pace to fully regain the jobs lost
Source: SeasonolFcogiustedemploymenifromtheCurrentEmploymentSmistics (CES)program
in 2008 and 2009. n
Minnesota Department of Employment and Economk Development
I
i
ENDNOTES,
' Sent, Dave, 'Moving on Up: The Great 1990s Minnesota 0pansian ;'Minnesota Economic Trends, January 2004-
' More information on state personal income estimates by the Bureau of Economic Analysis can be found at http .11wwweea.gdvlregionallspil.
To smooth out the monthly swings in Cruiser Employment Statistics data, the three -month average surrounding the month when jobs bottomed out during the pac recessions are compared with the
three -month moving average 14 months after each recession .
minnesota economic TRENDS march 2011
NO MINNESOTA MIRACLE