EDA Agenda 09-11-2013EDA MEETING
Wednesday, September 11th, 2013
6:00 p.m.
Mississippi Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer
Tracy Hinz, Vice Treasurer Matt Frie, Rod Dragsten and Council members Tom Perrault and
Brian Stumpf
Staff: Executive Director Jeff O'Neill, Wayne Oberg, Angela Schumann
1. Call to Order.
2. Approve Meeting Minutes:
a. August 14th, 2013 - Meeting Minutes
3. Consideration of additional agenda items.
4. Consideration to approve payment of bills.
5. Consideration of action related to tenant relocation at 100 Broadway East.
6. Consideration of Director's Report.
7. Adjourn.
EDA Agenda: 9/11/13
4. Consideration of approving payment of bills (WO)
A. REFERENCE AND BACKGROUND:
Included are the previous month's invoices for approval of payment.
B. ALTERNATIVE ACTIONS:
Motion to approve payment of bills through August 2013 in the amount of
$900.41.
2. Motion to approve the registers with changes directed by the EDA.
C. STAFF RECOMMENDATION:
City staff recommends approval of payment for submitted invoices.
D. SUPPORTING DATA:
Invoices
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EDA Agenda: 09/11/13
5. Consideration of action related to tenant relocation at 100 Broadway St. (AS)
A. REFERENCE AND BACKGROUND:
The EDA acquired the properties located at 100 and 112 Broadway East in May of 2012.
The acquisition of the properties was intended to serve the redevelopment goals of the
City per the Embracing Downtown plan, as well as facilitate the construction of planned
intersection improvements at CSAH 75 and TH 25.
Since the acquisition, the EDA has been working with Wilson Development Services to
relocate the residential and commercial tenants located in the buildings. At the present
time, there is one remaining commercial tenant occupying a space at the 100 Broadway
East building. The tenant is currently working with a local real estate agent to relocate
within the community.
On June 4th, 2013, on behalf of the City of Monticello and the EDA, Campbell Knutson
sent the tenant a letter fulfilling the EDA's required obligations for 90 -day notice to
vacate and 30 -day lease termination to the tenant. The letter indicates that the tenant is
required to vacate the lease space no later than September 6th, 2013.
With no relocation having occurred by the required date, staff and Wilson Development
Services have arranged a meeting with the tenant and the representatives of a potential
relocation facility the week of 9/9, prior to the EDA meeting. All parties are hopeful that
the meeting will result in the development of a lease agreement for a new location for the
tenant.
Pending the outcome of that meeting, the EDA will be asked to take action relating to the
remaining tenant as outlined in the following two options:
1. Consideration to extend the tenant holdover lease agreement to November 15th,
2013.
Should the meeting result in agreement by all parties relating to a lease for relocation
of the tenant, the EDA is asked to consider extension of the current tenant holdover
lease agreement until November 15th, 2013. That time frame will allow the tenant to
remain at 100 Broadway East while build -out improvements are occurring at the
tenant's new location. This motion will be contingent on submission of a signed
lease agreement for the new location, acceptable to Wilson Development Services for
the purposes of relocation eligibility and expense, no later than September 30th, 2013.
If a signed lease agreement meeting the above terms is not received by September
30th, 2013, the EDA is asked to proceed with action consistent with number 2 below.
2. Consideration to proceed with action of unlawful detainer against Pie in the Sky,
LLC (Garry Eke2ren /Pizza Factory), tenant at 100 Broadway East.
EDA Agenda: 09/11/13
If the meeting does not produce favorable results for a lease agreement on a new lease
space, the EDA will be asked to consider action for unlawful detainer immediately,
which is legal action taken to require the tenant to vacate the 100 Broadway East
premises. Campbell Knutson will act as the EDA's representative in the matter, as
recommended by the EDA's regular counsel, Kennedy & Graven.
It should be noted that should the EDA take this course of action, the tenant is still
eligible for relocation expenses up to 18 months after vacation of the premises.
Both alternatives for action have been provided and detailed for EDA consideration. A
verbal report on the outcome of the meeting with the tenant and building representatives
at the September 11th meeting in order for the EDA to proceed to action.
Al. Budget Impact: The EDA will continue to incur costs related to relocation, trash
removal, building heat and electricity until the final relocation or vacancy of the
remaining tenant is completed. To -date the EDA's expenses for tenant relocation total
$290,902.00. To -date building maintenance expenses total $14,389.64. Expenses for
relocation services total $33,754.31 and taxes payable total $28,068.22. All expenses
have been coded to TIF 1 -22.
A2. Staff Workload Impact: Staff time has been and will continue to be spent assisting in
the relocation and redevelopment planning for this site.
B. ALTERNATIVE ACTIONS:
1. Motion to extend the tenant holdover lease agreement for Pie in the Sky, LLC (Garry
Ekegren/Pizza Factory) to November 15th, 2013, contingent on submission of a
signed lease agreement acceptable to Wilson Development Services by September
30th, 2013.
2. Motion to proceed with action of unlawful detainer against Pie in the Sky, LLC
(Garry Ekegren /Pizza Factory), tenant at 100 Broadway East as a result of
unacceptable or absent lease agreement by tenant on September 30th, 2013.
3. Motion proceed with action of unlawful detainer against Pie in the Sky, LLC (Garry
Ekegren/Pizza Factory), tenant at 100 Broadway East.
C. STAFF RECOMMENDATION:
Staff s recommendation will be based on the outcome of the meeting with the tenant and
building representatives.
D. SUPPORTING DATA:
Letter from Campbell Knutson
;1 1
June 4, 2013
VIA FIRST CLASS MAIL
AND CERTIFIED MAIL
Mr. Garry Ekegren
Pizza Factory
P.O. Box 812
Monticello, MN 55362
Re: 90 -Day Relocation Notice to Vacate
Notice of Lease Termination
Dear Mr. Ekegren:
We are the attorneys for the City of Monticello and the Monticello Economic
Development Authority ( "EDA ").
On April 13, 2012, you were mailed a "GENERAL INFORMATION
NOTICE and NOTICE OF RELOCATION ELIGIBILITY" from Dan Wilson at
Wilson Development Services on behalf of the EDA. This notice advises you that
you will be obligated to move upon receipt of a 90 -day notice. A copy of the letter is
attached for your reference.
You subsequently entered into a Tenant Holdover Lease Agreement with the
EDA dated December 7, 2012. The Lease provides that it may be terminated upon
either party giving a 30 -day written notice. The Lease also states that on May 13,
2013, a new lease shall be executed and apply.
The notices set forth below are substituted for all prior notices. Accordingly,
you are hereby notified as follows:
The Tenant Holdover Lease Agreement is hereby extended to Friday,
September 6, 2013.
2. You are hereby given the 90 -day notice to vacate referred to in the
April 13, 2012 General Information Notice and Notice of Relocation
Eligibility letter. You must vacate by September 6, 2013.
3. This letter also constitutes the 30 -day notice to vacate under the Tenant
Holdover Lease Agreement on the termination date of September 6,
2013.
Mr. Garry Ekegren
June 4, 2013
Page Two
In order for you to remain in the premises until September 6, 2013, you must abide by all
terms and conditions of the Tenant Holdover Lease Agreement, including the payment of monthly
rent. If you do not pay the rent and meet your other obligations under the lease, you will be
evicted.
If you have any questions about this letter, please contact me. I trust that you will work
diligently with Dan Wilson toward the finalization of your business relocation well before
September 6, 2013.
Very truly yours,
TMS:slc
Enclosure
cc: Ms. Angela Schumann
Mr. Dan Wilson
EDA Agenda: 09/11/13
6. Economic Development Director's Report (JO /AS)
Market Situation Analysis — Special Workshop
EDA is asked to attend a special joint session between the City Council and EDA for the
purpose of hearing the WSB Market Matching Situation Analysis. The work session is
tentatively scheduled for 5:30 PM on Monday, September 23rd
Block 34 Update
Staff had intended to have draft RFP's prepared for qualification and structural /environmental
analysis for 100 and 112 Broadway East ready for posting by September 1St. Time has not
allowed for the deadline due to the need for discussions with Ehlers on RFP requirements and
review, but it is hoped that the information will be posted no later than 9 /15th with a submittal
deadline of October 10th, 2013.
TAC
Next meeting of the TAC is on Thursday, September 12th at 7:30 AM. Agenda cover page
attached.
Industry of the Year Breakfast — October 23rd, 2013
EDA members can mark their calendar for Wednesday, October 23rd for the 2013 Industry of
the Year event. The event will be held at 7:00 AM in the Mississippi Room.
The IEDC has received two nominations for industry of the year. Nomination forms (and a
reminder) were emailed to all IEDC, EDA and Monticello manufacturers. At the present
time, the two nominees are completing surveys detailing more information about their
business. Tours of the nominated industries will also be scheduled, EDA members are
welcome to attend so please watch your email for the dates and times of the two tours.
The IEDC will vote by ballot for the 2013 Industry of the Year in October. Staff is working
on securing a featured speaker for the event and will provide more detail upon confirmation.
The Monticello Times has committed to sponsoring the 2013 event. The sponsorship was
been set at $250.
Union Crossings
The City has received a site plan and footings /foundation permit request from Ryan
Companies for a retail store at the existing Union Crossings project. In 2007, Ryan received
amended development stage PUD approval for additional "inline" retail development adjacent
to Home Depot. Ryan proceeded to construct the OfficeMax and PetSmart buildings as part
of that approval, but held off on the two other proposed retail spaces approved with that
EDA Agenda: 09/11/13
amendment. At this time, Ryan is seeking to move forward with construction of one of the
two remaining buildings spaces approved under the 2007 PUD amendment. Unless there are
substantive changes to the overall PUD, site plan and /or building aesthetics, the 2007
approval remains in effect and will not require Planning Commission or Council review. The
Marshall's retail building is expected to be under construction early this fall.
Runnings
The City has received confirmation from Commercial Realty Solutions that the property sale
on the former Kmart building will close. Runnings is expected to take possession of the
building in 2013, with a store opening in spring 2014.
Planning Commission Considerations /Council Action
The Planning Commission agenda for September is attached for the EDA's reference. More
information on each of the items can be found at the city website under "Planning
Commission ". In addition, the City Administrator/Executive Director of EDA will provide a
more detailed verbal report on the proposed City telecommunications tower and Council
action at the EDA meeting.
For October's Planning Commission meeting, the City has received a preliminary plat and
conditional use permit application for ALDI, proposed to be located north of Walmart on the
corner of School Boulevard and Cedar Street.
I -94 Chamber of Commerce Meeting
Commissioner Zelle provided a presentation on MNDoT projects and funding priorities
noting that the I -94 Corridor would be a good candidate for $300 million "Corridors for
Commerce" funding. He noted that the "Corridors for Commerce" program is a
"downpayment" on the total cost of important highway projects currently in the pipeline. He
went on to say that needs are great but revenue is sparse. Criteria for evaluating "Corridor for
Commerce" funding requests will be available soon. No promises made as related to I -94 in
the Monticello area. The meeting was well attended with a number of State legislators
present, including Marion O'Neill. Also attending were business representatives, County
Officials and City of Monticello, Saint Michael and Otsego City representatives.
2
REGULAR MEETING
MONTICELLO PLANNING COMMISSION
Tuesday, September 3rd, 2013
6:00 PM
Mississippi Room, Monticello Community Center
Commissioners: Chairman William Spartz, Sam Burvee, Brad Fyle,
Charlotte Gabler, Grant Sala
Council Liaison: Lloyd Hilgart
Staff: Angela Schumann, Ron Hackenmueller
1. Call to order
2. Consideration to approve Planning Commission minutes.
a. Regular Meeting of August 6th, 2013
3. Citizen Comments
4. Consideration of adding items to the agenda
5. Continued Public Hearing — Consideration of a request for Comprehensive Plan
Amendment for a change in land use designation from Places to Shop to Places to Live
and a request for rezoning from B -4 (Regional Business) District to R -4 (Medium -High
Density Residence) District. Applicant: IRET Properties
Recommended for denial based on a 2 -3 vote on a motion to approve. Will proceed to
the City Council on 9- 23 -13. To approve the Comprehensive Plan Amendment
requires a 213 majority of Council, or 4 of 5 members.
6. Public Hearing - Consideration of an amendment to Conditional Use Permit for Planned
Unit Development for the Monticello Big Lake Community Hospital District Campus
(CentraCare Health Monticello) for the relocation of an accessory use heliport. Applicant:
CentraCare Health System Monticello
Recommended for approval. Will proceed on the consent agenda to the City Council
on 9 -9 -13.
7. Public Hearing — Consideration of a zoning text amendment to Title 10, Monticello
Zoning Ordinance, Chapter 4, Section 13(E) adding Wireless Telecommunications
Service Antennae and Antenna Support Structures as accessory uses on publicly owned
property by Conditional Use Permit, a request for Conditional Use Permit for Antenna
Support Structure in a R -2 (Single and Two - Family Residential) District, and a request
for Conditional Use Permit for Co- location of a Wireless Telecommunication Service
Antenna. Applicant: City of Monticello and Verizon Wireless
Recommended for approval Will proceed to the 9 -9 -13 meeting of the City Council
8. Public Hearing — Consideration of a request for Amendment to CUP for Addition of
Equipment for Co- Location of Wireless Communication Antennae. Applicant: Faulk &
Foster for AT & T Mobility
Recommended for approval. Will proceed to the 9 -9 -13 meeting of the City Council
9. Public Hearing - Consideration of a request for amendment to the Official Zoning Map
for the City of Monticello for rezoning from R -2 (Single and Two - Family Residential) to
CCD (Central Community District), sub - district F -2 (Convenience and Services).
Applicant: City of Monticello
Recommended for approval Will proceed to the 9 -9 -13 meeting of the City Council
10. Upcoming Planning Commission Schedule
11. Community Development Director's Report
12. Adjourn.
AGENDA
MONTICELLO TRANSPORTATION ADVISORY COMMITTEE
Thursday, September 12, 2013
7:30 a.m.
Academy Room
Monticello Community Center
1. Call to Order
2. Approval of minutes of July 11, 2013 TAC Meeting
3. Consideration of adding items to the agenda
4. Fallon Avenue Overpass
a. Property appraisal review
5. Second River Crossing planning progress
a. Setting up meetings with agency staff
b. Schedule
6. TH 25 at CSAH 75
a. Revised layouts — with and without parking
b. Schedule
7. Other projects
a. West 7t' Street Extension
b. 4t' Street/Commercial, Truck Access to Highway 25 — Discuss merits of signal
lights.
c. Great River Trailways
d. TH 25 expansion to CR 106
e. I -94 — TH 25 to CSAH 18 (2014 construction)
8. Approve next meeting date and time (Thursday, November 14, 2013 @ 7:30 AM)
9. Adjournment