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EDA Agenda 07-08-2015EDA MEETING Wednesday, July 8th, 2015 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, James Davidson, Steve Johnson and Council members Tom Perrault and Lloyd Hilgart Staff: Executive Director Jeff O'Neill, Angela Schumann, Wayne Oberg 1. Call to Order. 2. Roll Call. 3. Approve Meeting Minut a. Regular Meeting b. Special Meeting c. Regular Meeting d. Regular Meeting e. Special Meeting Is: — June 10th, 2015 - May 26thth5 2015 — May 13th, 2015 — April 8th, 2015 - April 8th, 2015 4. Consideration of additional agenda items. 5. Consideration of approving payment of bills. 6. Consideration of Market Matching report. 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA -owned property at 100 East Broadway. 8. Consideration to approve contract for July 2015 — June 2016 month -to -month Market Matching Services. 9. Consideration to set a joint EDA /City Council work session for purposes of EDA/HRA Levy discussions. 10. Consideration of Director's Report. 11. Adjourn. MINUTES REGULAR MEETING – ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 10, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Others: Angela Schumann 1. Call to Order. Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call. 3. Approval of Minutes. BILL TAPPER MOVED TO TABLE APPROVAL OF THE MINUTES OF THE EDA MEETING. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7-0. 4. Consideration of additional agenda items. None. 5. Consideration of approving payment of bills. Invoices included in the agenda packet for review and consideration. Bill Tapper inquired as to the bills for Advanced Disposal and Xcel Energy. Angela Schumann said that she will check into the dates for both of those to make sure that we aren’t paying for services on buildings that are no longer there. BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH MAY 2015. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7-0. 6. Consideration to approve 90% payment to Veit & Company, Inc. for abatement and demolition services at 100 East Broadway. Angela Schumann stated that on March 11, 2015, the EDA approved the contract with Veit & Company for the abatement and demolition of 100 East Broadway. Veit’s original bid was $26,253 with an additional expense of $2,957 for the required trench box and sewer investigation which was approved by the EDA on May 13, 2015. The total approved project expense is $29,209.71. WSB & Associates has reviewed the contracted and completed work and is recommending payment of 90% of the total original bid, or $23,627.70, with final payment to be authorized by the EDA upon resolution of a parking lot issue which arose on the adjacent property during site restoration. Schumann noted there was some damage to the adjacent property by a piece of Veit’s equipment that had backed up onto the property. Veit will be meeting with the property owner on site next week to determine how to resolve the issue. TRACY HINZ MOVED TO APPROVE 90% PAYMENT OF THE ORIGINAL BID OF $26,253 OR $23,627.70 TO VEIT & COMPANY, INC. FOR ABATEMENT AND DEMOLTION SERVICES AT 100 EAST BROADWAY. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 7-0. 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA owned property at 100 East Broadway. Angela Schumann said the EDA is asked to consider approving $760 to support WSB’s coordination for the Petrofund reimbursement application required to address the contaminant release discovered with the demolition of the EDA-owned property at 100 East Broadway. While an expense was approved for the required environmental study and additional demolition services at the May 13, 2015 EDA meeting, this amount being requested was not included in the approval as it was unknown at that time if there was indeed a contaminant release. With the contaminant release now known, the required report is a Limited Site Investigation (LSI) document as required by the MPCA and not a Phase II Environmental (which was originally approved) in order to be eligible for Petrofund reimbursement. Testing results at the site were received on May 15, and indicated that the diesel range organics (DRO) of the sample taken was above the MPCA threshold, therefore constituting a contaminant release. The release was reported to the State and a Leak ID number has been assigned, which is a mandatory requirement. Tom Perrault noted that that in the letter from the MPCA it is indicated that a minimum of two written proposals are required to be considered for reimbursement of up to 90% of the cost of the LSI. However, at the time when the Phase II Environmental was authorized the EDA made the option to not go out for proposals due to the timeline of the project. WSB has been in contact with the PCA and they have indicated that the EDA can still apply for reimbursement for up to 80% of the eligible cost of the LSI with application submittal and reimbursement may or may not be approved. The estimated eligible costs are $8,000 and with an 80% reimbursement, the estimated Petrofund reimbursable amount that could be received is $6,400. The LSI includes additional testing MnDOT is requiring above what the MPCA would consider Petrofund reimbursable expenses. BILL TAPPER MOVED TO APPROVE AN EXPENSE OF $760 FOR COORDINATION OF LSI REIMBURSEMENT DOCUMENTS TO PETROFUND AS RELATED TO THE EDA-OWNED PROPERTY AT 100 EAST BROADWAY. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 7-0. 8. Consideration to approve a license agreement for parking at Cedar Street. Angela Schumann said that a temporary license to the City of Monticello for public parking purposes at the former Cedar Street Garden Center site, 201 East Broadway (EDA-owned property), is being requested. The adjacent property owners are experiencing a shortage of parking for customers and employees and, therefore, have been working with City staff to address the parking needs. A license agreement between the EDA and the City is sought in order to create a public parking option. Schumann explained that parking as a private principal use of property is not allowable under the zoning ordinance; however, public uses are allowed as principal uses of property and this would include public parking lots. Concerns were brought up by commissioners that this may be a one-sided benefit to businesses with the City incurring all of the expenses of maintaining the lot. Schumann explained that this parking lot being open to the public will also aid in the parking demand for the sliding hill at East Bridge Park as well as overflow parking during summer events in the parks along River Street. If approved, the City will be asked to authorize staff time and equipment for maintenance (snow removal, etc.) No repairs to the existing paved surface are planned under this agreement. Schumann said this license agreement is proposed as a temporary condition to allow the City Council and property owners to develop a long-term parking solution for this corridor. Staff is suggesting a termination date of the agreement on December 31, 2016. Bill Demueles asked about the potential for future developers to develop the property prior to the 2016 date. Schumann noted that language could be added to the agreement which would allow this. This will allow the time to develop alternatives and construct improvements associated with any approved option. LLOYD HILGART MOVED TO APPROVE A TEMPORARY LICENSE AGREEMENT FOR PUBLIC PARKING AS DESCRIBED FOR EDA-OWNED PROPERTY AT 201 EAST BROADWAY, WITH DIRECTION TO STAFF TO PREPARE A LICENSE AGREEMENT FOR EXECUTION BY THE EDA EXECUTIVE DIRECTOR AND PRESIDENT, WITH A TERMINATION DATE OF DECEMBER 31, 2016, OR WHEN DEVELOPMENT OCCURS, WHICHEVER IS SOONER. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED 6-0. OPPOSED 1, BILL TAPPER. 9. Consideration to approve an update to the March 2014 Hospitality Study as related to Embracing Downtown Plan. Angela Schumann noted that in December of 2013, the EDA authorized funding for a hospitality study at the request of the reSTOREing Downtown organization. The 2014 study evaluated the City’s position in the marketplace relative to the ability to support new hotel development. In particular, the EDA was interested in learning whether the downtown area might be a viable location for hotel development. Since the time of the study’s completion, the report document has been distributed by Market Matching, City staff, and a number of local realtors. Staff has been contacted by various parties interested in hotel development in the community and, as a result, staff believes the study has been successful in generating preliminary interest in the Monticello market for hotel development. It has been indicated to City staff that in some cases, hotel developers may not be able to complete their own market studies, but rather require independent market analysis for investor purposes. The EDA’s study may help remove that barrier. Therefore, staff contacted Hospitality Consulting Group (HCG) about updating their original study. The scope of the proposed 2015 update would provide information for gauging feasibility and financing for a new hotel development. Hospitality Consulting Group completed the 2014 study and has prepared a scope of work for an updated study which will look deeper in to the actual market feasibility for a hotel in Monticello as requested by City staff. Staff will work with HCG and hotel developers to provide the hotel schematic data for the report. Schumann said that she was careful to inform HCG that the City is not focused on any particular site or any particular developer but rather what the next step is for the downtown are, and if we want to attract it, what does it look like and what is its market feasibility. HCG has provided an estimate of $4,000 for the updated study. This expense is proposed to come from EDA’s General Sub-Fund which has a current balance in its Marketing line item of $16,350 as of the close of November 2013. Staff supports the completion of the update to the 2014 hospitality market analysis for the purpose of supporting further redevelopment activity consistent with the Embracing Downtown plan. BILL TAPPER MOVED TO RECOMMEND THE EDA CONTRACT WITH HOSPITALITY CONSULTING GROUP TO FUND AN UPDATED MARKET STUDY ANALYSIS FOR HOSPITALITY USES AS RELATED TO EMBRACING DOWNTOWN PLAN IN THE AMOUNT OF $4,000. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 6-0; ABSTAINED 1, STEVE JOHNSON VOTED TO ABSTAIN DUE TO A POTENTIAL CONFLICT OF INTEREST AS REFERENCED IN THE STATEMENT OF CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM DATED FEBRUARY 23, 2015 AS ENTERED IN TO THE RECORD OF THE EDA ON MARCH 11TH, 2015 AND AS DOCUMENTED IN THE APPROVED EDA MINUTES OF THE SAME. 10. Consideration of an update regarding 2015-2015 Market Matching Services. Angela Schumann said that the current contract for services with WSB Market Matching expires in July 2015. City staff has met with the Market Matching representative to provide notice that further discussions will need to occur with the EDA and City as related to a 2015-2016 contract. It was noted that if an economic development staff position were created, the contract would likely be modified accordingly. Schumann said that the EDA subcommittee met on May 21st to begin their discussion on an economic development staffing recommendation. If the EDA would prefer that staff request a contract for the 2015-2016 Market Matching services, staff will work with the Market Matching team to prepare the documentation for a July review. Should the EDA wish to work through the staff evaluation prior to a new Market Matching contract, the EDA will discontinue payment of $4,000 per month for services beginning in July 2015. Information on costs for a modified contract for services will be provided with a future recommendation on staffing and marketing services. Staff recommends proceeding with continued evaluation of economic development staffing prior to proceeding with a Market Matching contract extension. The City’s budgeting process will begin shortly, and as such, the EDA will need to prepare its staffing recommendation for Council review. The outcomes of Council’s decisions will also impact the EDA’s direction. Tracy Hinz asked about what tangible duties may not get done if the contract is not renewed for Market Matching services in July. Schumann noted that WSB puts together a monthly e-news for the economic development community and that would not be going out. Also, on a quarterly basis there are maps posted on the Building Business in Monticello website (industrial, commercial, and downtown maps) which illustrate all of the available properties and provides baseline information on those properties and a link to the realtor’s page or the property owner’s page. WSB reaches out to each one of those realtors or property owners to ensure their information is current; so that would not occur. If the City needs to update any of the sale sheets or any of the community profile documents that we’ve gotten, that would end unless we want to contract with WSB on an hourly basis until some type of contract could be developed. The content of the documents is the City’s; however, that information would have to be transferred and the City does not have the software to update those documents in their current form. Brian Bourassa from WSB & Associates thanked the EDA and the City for the opportunity and noted that it has been a very good working relationship between City staff, the EDA and WSB. Bourassa answered questions from the EDA Commissioners. Bill Tapper asked about the option of extending the contract on a month to month basis at the current contracted rate. Bourassa said that WSB would be willing to do that. Hinz said that she thinks that updating the documents is a vital piece of information that’s needed and noted that there may be specific tasks that the EDA may want to retain with WSB on an hourly basis. Bourassa said that Schumann has the hourly rate data for WSB and could go through that. Tom Perrault said he would like to see evidence of businesses coming to town because of these Market Matching services by WSB. Hinz asked to see a monthly invoice going forward that breaks down the deliverables. Staff will also request that the WSB staff member attend the EDA meeting monthly to provide updates. Beth Green BILL TAPPER MOVED TO EXTEND THE MARKET MATCHING CONTRACT WITH WSB & ASSOCIATES ON A MONTH TO MONTH BASIS AT THE CURRENT CONTRACT RATE UNTIL SUCH TIME A STAFF MEMBER IS HIRED AND SUFFICIENTLY TRAINED; AT WHICH TIME IT WILL BE DETERMINED WHAT SERVICES MAY BE RETAINED WITH WSB. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUSLY, 7-0. Schumann noted that staff will work with Market Matching to create the document that has been discussed and then forward to the EDA for review and comment at the July meeting. 11. Consideration of Director’s Report. The complete Director’s Report was included in the EDA agenda packet for review. Angela Schumann provided background information on the following topics of discussion with no action being taken at this time:  EDA Annual Work Plan  Economic Development Position  EDA/HRA Levy  Monarch Development Housing Proposal  Solar Energy Update  TAC Update 12. Adjourn. BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:45 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7-0. Recorded By: ______________________________________ Date Approved:_____________________________________ Attest:____________________________________________ MINUTES REGULAR MEETING — IECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 10, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Others: Jeff O'Neill, Wayne Oberg 1. Call to Order. Bill Demeules called the meeting to order at 6:00 p.nt. 2. Roll Call. 3. Approval of Minutes. BILL TAPPER MOVED TO TABLE APPROVAL OF THE MINUTES TO THE NEXT EDA MEETING. MOTION .SECONDED BY TOM P'ERRAULT. MTION CARRIED UNANIMOUSLY, 8-0. 4. Consideration of additional ala iMpIL None. '%-- 5. Consideration of approving payment bills. Invoices included in the agenda packet foriew and consideration. Bill Tapper iri-fed as tp the bills ,for Advanced Disposal and Xcel Energy. Angela Schumann said that she will check into the dates for both of those to make sure that we aren't paying for dices on buildings that are no longer there. BILL TAPPER MOV -D TO APPROVE THE PAYMENT OF BILLS THROUGH MAY 2015- MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 8-0. 6. Consideration to We ove 90% payment to Veit & Company, Inc for abatement and demolition services at 100 East Broadway. Angela Schumann stated that on March 11, 2015, the EDA approved the contract with Veit & Company for the abatement and demolition of 100 East Broadway. Veit's original bid was $26,253 with an additional expense of $2,957 for the required trench box and sewer investigation which was approved by the EDA on May 13, 2015. The total approved project expense is $29,209.71. WSB & Associates has reviewed the contracted and completed work and is recommending payment of 90% of the total original bid, or $23,627.70, with final payment to be authorized by the EDA upon resolution of a parking lot issue which arose on the adjacent property during site restoration. Schumann noted there was some damage to the adjacent property by a piece of Veit's equipment that had backed up onto the property. Veit will be meeting with the property owner on site next week to determine how to resolve the issue. TRACY HINZ MOVED TO APPROVE 90% PAYMENT OF THE ORIGINAL BID OF $26,253 OR $23,627.70 TO VEIT & COMPANY, INC. FOR ABATEMENT AND DEMOLTION SERVICES AT 100 EAST BROADWAY. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 8-0. 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA owned property at 100 East Broadway. Angela Schumann said the EDA is asked to consider approving $760 to support WSB's coordination for the Petrofund reimburserrent application required to address the contaminant release discovered with the' demolition of the EDA -owned property at 100 East Broadway. While an expense was.,oproved for the required environmental study and additional demolition services at the May 13, 2015 EDA meeting, this amount being requested was not included in the approval as. it was unknown at that time if there was indeed a contaminant release. With the contamit, release now known, the required report is a Limited Site Investigation (LSI) documapt as required by the MPCA and not a Phase II Environmental (which was originally approves) in order to be eligible for Petrofund reimbursement. Testing results at the site were received on May 15, and indicated that the diesel range organics (DRO) of the sample taken was above the MPCA threshold, therefore constituting a corrminant cretease. The release was reported to the State and a Leak ID number has been assigned, whieh i- a mandatory requirement. Tam Perrault paled that the in the letter ,rem the MPCA it is indicated that a minimum of two written proposals are required to be considered for reimbursement of up to 90% of the cost of the LSI. However, at the time when the Phase II Environmental was authorized the EDA made the option to not go out for proposals due to the timeline of the project. WVSB has been in contact with the PCA and they have indicated that the EDA can still apply for reimbursement for up to 80% of the eligible cost of the LSI with application submittal and reimbursement may or may not be approved. The estimated eligible costs are $,8,000 and with an 80% reimbursement, the estimated Petrofund reimbursable amount that could be received is $6,400. The LSI includes additional testing MnDOT is requiring above what the MPCA would consider Petrofund reimbursable expenses. BILL TAPPER MOVED TO APPROVE AN EXPENSE OF $760 FOR COORDINATION OF LSI REIMBURSEMENT DOCUMENTS TO PETROFUND AS RELATED TO THE EDA -OWNED PROPERTY AT 100 EAST BROADWAY. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 8-0. 8. Consideration to approve a license agreement for parking at Cedar Street Angela Schumann said that a temporary license to the City of Monticello for public parking purposes at the former Cedar Street Garden Center site, 201 East Broadway (EDA -owned property), is being requested. The adjacent property owners are experiencing a shortage of parking for customers and employees and, therefore, have been working with City staff to address the parking needs. A license agreement between the EDA and the City is sought in order to create a public parking option. Schumann explained that parking as a private principal use of property is not allowable under the zoning ordinance; however, public uses are allowed as cipal uses of property and this would include public parking lots. Concerns were brought up by commissioners that this xray be a one-sided benefit to businesses with the City incurring all of the expenses ofaintaining the lot. Schumann explained that this parking lot being open to the public will also aid in the parking demand for the sliding hill at East Brigge Park as well as overflow parking during summer events in the parks along River Street. If approved, the City will be asked to authorize staff time and equipment for maintenance (snow removal, e/tc.) No repairs to the existing paved surface are planned under this agreement. Schumann said this license agreenwgatis proposed -as a temporary condition to allow the City Council and property owners to clomp a long-term, parking solution for this corridor. Staff is suggesting a termination date of the agreement on December 31, 2016. Bill Demueles asked about the potential for Rare developers to develop the property prior to the 2016 date. Schumann noted that language could be added to the agreement which would allow this. This will allow the time to develop alternatives and construct improvements as,,�ciated with any approved option. LLOYD -H 1 DART MOVED TO APPROVE A TEMPORARY LICENSE AGREEMENT EOR PUBLIC PARKING AS DESCRIBED FOR EDA -OWNED `PROPERTY AT 2,01 EAST BROADWAY, WITH DIRECTION TO STAFF TO PREPARE A LICENJE AGREEMENT FOR EXECUTION BY THE EDA EXECUTIVE DIRECTOR ANDESIDENT, WITH A TERMINATION DATE OF DECEMBER 31, 2016,`' WHEN DEVELOPMENT OCCURS, WHICHEVER IS SOONER. IOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUL `Y, 7-0. OPPOSED: 1, BILL TAPPER. 9. Consideration to approve an update to the March 2014 Hospitality Study as related to Embracing Downtown Plan. Angela Schumann noted that in December of 2013, the EDA authorized funding for a hospitality study at the request of the reSTOREing Downtown organization. The 2014 study evaluated the City's position in the marketplace relative to the ability to support new hotel development. In particular, the EDA was interested in learning whether the downtown area might be a viable location for hotel development. Since the time of the study's completion, the report document has been distributed by Market Matching, City staff, and a number of local realtors. Staff has been contacted by various parties interested in hotel development in the community and, as a result, staff believes the study has been successful in generating preliminary interest in the Monticello market for hotel development. It has been indicated to City staff that in some cases, hotel developers may not be able to complete their own market studies, but rather require independent market analysis for investor purposes. The EDA's study may help remove that barrier. Therefore, staff contacted Hospitality Consulting Group (HCG) about updating their original study. The scope of the proposed 2015 update would provide information for gauging feasibility and financing for a new hotel development. Hospitality Consulting Group completed the 2014 study and has prepared a scope of work for an updated study which will look deeper in to the actual market feasibility for a hotel.in'Meonticelllo as requested by City staff. Staff will work with HCG and hotel developers to provide the hotel schematic data for the report. Schumann said that she did -inform HCG that the City 6 not focused on any particular site or any particular developer but rather what the next stip is for the downtown are, and if we want to attract it, what does it look like and what is its market feasibility. HCG has provided an estimate o=f'$4,000 for the updated study. This expense is proposed to come from EDA's General Sib -Fund wich has a current balance in its Marketing line item of $16,350 as of the close of�ovember 2043. Staff supports the completion of the update to the 264 4 hospitality market analysis for the purpose of supporting further redevelop,net activity consistent with the Embracing Downtown plan BILL TAPPER MOVED TO RECOMMEND THE EDA CONTRACT WITH WSPITALITY CONSULTING GROUP TO FUND AN UPDATED MAREKT STUDY ANALYSIS FOR 4JOSPITALITY USES AS RELATED TO EMBRACING DOWNTOWN PLAN IN THE AMOUNT OF $4,000. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7-0; ABSTAINED 1, STEVE JOHNSON (DUE TO 11-ENTIAL CONFLICT OF INTEREST). 10. Consideration . an , plate regarding 2015-2015 Market Matching Services Angela Schumann said that the current contract for services with WSB Market Matching expires in July 2015. City staff has met with the Market Matching representative to provide notice that further discussions will need to occur with the EDA and City as related to a 2015-2016 contract. It was noted that if an economic development staff position were created, the contract would likely be modified accordingly. Schumann said that the EDA subcommittee met on May 21St to begin their discussion on an economic development staffing recommendation. If the EDA would prefer that staff request a contract for the 2015-2016 Market Matching services, staff will work with the Market Matching team to prepare the documentation for a July review. Should the EDA wish to work through the staff evaluation prior to a new Market Matching contract, the EDA will discontinue payment of $4,000 per month for services beginning in July 2015. Information on costs for a modified contract for services will be provided with a future recommendation on staffing and marketing services. Staff recommends proceeding with continued evaluation of economic development staffing prior to proceeding with a Market Matching contract extension. The City's budgeting process will begin shortly, and as such, the EDA will need to prepare its staffing recommendation for Council reviow. The outcomes of Council's decisions will also impact the EDA's direction. Tracy Hinz asked about what tangible duties may not get done if the contract is not renewed for Market Matching services in July. Schumann noted that WSB puts together a monthly e -news for the economic development community and that would not be going out. Also, on a quarterly basis there are maps posted on the Building Business in Monticello website (industrial, commercial, and downwn maps) which illustrate all of the available properties and provides baseline information on those properties and a link to the realtor's page or the property pwner's gage. WSB rues out to each one of those realtors or property owners to ensure their, nformation is current; so that would not occur. If the City needs to update -any of the sale sheets or any of the community profile documents that we've gotten, that would end unless we want to contract with WSB on an hourly basis until some tyre of contract could be developed. The content of the documents is the City's,, however, information would have to be transferred and the City does not have the software to update those documents in their current form. Brian Bourassa from WSB & Associates thanked the EDA and the City for the opportunity and noted that it has been a very good working relationship between City staff, the EDA and WSB. Bourassa answered questions from the EDA Commissioners. Bill Tapper asked about the option of extending the contract on a month to month basis at the current contracted rate. Bourassa said that WSB would be willing to do that. Hinz said that she thinks that updating the documents is a vital piece of information that's needed and noted that there may be specific tasks that the EDA may want to retain with WSB on an hourly basis. Bourassa said that Schumann has the hourly rate data for WSB and could go through that. Tom Perrault said he would like to see evidence of businesses coming to town because of these Market Matching services by WSB. Hinz asked to see a monthly invoice going forward that breaks down the deliverables. Staff will also request that the WSB staff member attend the EDA meeting monthly to provide updates. BILL TAPPER MOVED TO EXTEND THE MARKET MATCHING CONTRACT WITH WSB & ASSOCIATES ON A MONTH TO MONTH BASIS AT THE CURRENT CONTRACT RATE UNTIL SUCH TIME A STAFF MEMBER IS HIRED AND SUFFICIENTLY TRAINED; AT WHICH TIME IT WILL BE DETERMINED WHAT SERVICES MAY BE RETAINED WITH WSB. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUSLY, 8-0. Schumann noted that staff will work with Market Matching to create the document that has been discussed and then forward to the EDA for review and comment at the July meeting. 11. Consideration of Director's Report. The complete Director's Report was included in the EDA agenda packet for review. Angela Schumann provided background information on the following topics of discussion with no action being taken at this time: • EDA Annual Work Plan • Economic Development Position • EDA/HRA Levy ' • Monarch Development Houng Proposal • Solar Energy Update • TAC Up 12. Adiourn. BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:45 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 8-0. Recorded By: Beth Green Date Approved: Attest: MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Tuesday, May 26, 2015 — 6:15 p.m. North Mississippi Room, Monticello Community Center Present: Bill Demeules,Tracy Hinz, Bill Tapper, Jim Davidson, Steve Johnson, Councilmembers Lloyd Hilgart and Tom Perrault Absent: None Others: Mayor Stumpf, Councilmembers Gabler and Posusta, Jeff O'Neill, Angela Schumann, Wayne Oberg, Tammy Omdahl (Northland Securities) 1. Call to Order President Bill Demeules called the Special Meeting of the Monticello Economic Development Authority (EDA) to order at 6:15 p.m. A roll call was taken and a quorum declared. It was noted that remaining members of the City Council were also present. 2. Purpose of Workshop: Discussion of a potential EDA and /or HRA levy for 2016 Angela Schumann explained that the EDA will be discussing the process for implementing an EDA and /or HRA levy for the 2016 budget process. EDA will be asked to consider recommending that the City Council authorize a letter of intent to be submitted to Wright County. Council has been invited to listen in as they will be considering action on this request during their regular meeting. 3. Review of potential EDA and /or HRA levy for 2016 and request to send a notification of intent letter to Wright County Angela Schumann talked about how an EDA and /or HRA levy fits in with the EDA Annual Work Plan and the goals that are identified in the Work Plan. As the EDA is looking at property acquisitions, relocations, and property redevelopment, they are facing limited financial resources to help in funding their goals. One tool that has been considered is to institute an EDA levy. If this would be pursued for 2016, it is necessary to submit a letter of intent to the County. The EDA has the authority by statute to establish an EDA levy; however, the process is handled through the City's budgeting process. In past years, the City has simply budgeted the requested EDA funding and transferred money to the EDA general fund. If a levy would be adopted, it is limited to a small percent of the taxable market value of the City; for 2015, the authorized amount would be approximately $274,000 and would be included in the City's overall levy limits. State statutes do not expressly limit the use of the proceeds, but implies a use for any activity that the EDA is authorized to carry out such as housing and redevelopment (under HRA act) and economic development. There is also an option to consider adopting an HRA levy rather than or in addition to an EDA levy. Since the Monticello EDA also functions as the city's HRA, they have the Monticello EDA Special Meeting Minutes — May 26, 2015 Page 1 authority to establish an HRA levy as authorized in the HRA Act, subject to consent of the City Council. The levy may not exceed a small percent of the taxable market value of the City; for example, the maximum for 2015 would be $280,011. Proceeds of an HRA levy may be used only for the purposes of the HRA Act, which broadly include redevelopment to correct or prevent blight, and development or assistance of housing for low or moderate income persons. An HRA levy is above and beyond any levy limits that apply to the city, this making this a reliable source of income independent of city revenues. Charlotte Gabler asked where this levy would show up for taxation purposes. Tammy Omdahl explained that the annual Truth in Taxation statement would show that listed as a "Special Levy" and further defined as HRA or EDA. On the tax statement, it would be listed under "Other Taxes." Angela Schumann explained that tonight's decision for the EDA is to recommend approval to the Council for submission of a letter to Wright County Auditor expressing the intent to pursue adoption of a levy for EDA and /or HRA. Brian Stumpf asked how that would impact the City's general tax levy; he understands that if the City adopted a total levy of $8 million with $250,000 for the EDA levy, the total taxation would be based on $8 million. Angela Schumann and Tammy explained that the EDA special levy would be part of the city's total levy, but show separately on the tax breakdown. Wayne Oberg and Tammy Omdahl discussed the differences between adoption of an HRA levy and an EDA levy. HRA levies are not subject to levy limitations, while an EDA levy would be. For an HRA levy, the EDA prepares an annual budget in accordance with the city's budget procedures and requests the City Council approve a levy based on this budget. City Council must review and adopt by resolution to consent to an HRA levy. An HRA levy is included in the city's preliminary levy certification and is collected and distributed by the County in the same manner as other city taxes. However, the distribution is kept in a separate fund and turned over to the EDA directly. For an EDA levy, the process is similar for adopting this levy. The levy should be considered part of the city's general levy, rather than a special levy independent of city revenues. Tammy Omdahl explained that a letter to the County is required this year because it is the initial request for establishing a special levy. In future years, a letter of intent is not needed. The EDA follows the normal levy processes for an EDA levy and /or an HRA levy. Angela Schumann clarified that a special levy would replace the general allocation that is currently budgeted for the EDA fund, with future discussion and decision by council on whether to levy an amount beyond that for economic development goals as identified in the work plan. Funds raised through a special levy could be used by the EDA under its powers according to authority in the state statutes. Angela Schumann indicated that it is likely that the EDA Annual Work Plan would need to more specifically define the uses for tax revenues raised by a special levy. Monticello EDA Special Meeting Minutes — May 26, 2015 Page 2 Brian Stumpf commented on the amount of property owned by the EDA that could generate funds if they were to be marketed. Bill Tapper spoke on the needs of EDA and the expenses that have been generated by some of the recent projects. He feels that a special levy would help guide the EDA in achievement of its goals, such as hiring an Economic Development Director. Charlotte Gabler asked what happens to funds remaining when a TIF district is decertified. Angela Schumann explained that the county settles those funds back to the taxing jurisdictions. The city's share goes back into the City's General Fund, not to the EDA. BILL TAPPER MOVED FOR ALTERNATIVE 91 TO APPROVE THE SUBMISSION OF A LETTER OF INTENT TO WRIGHT COUNTY FOR POSSIBLE ESTABLISHMENT OF AN EDA AND /OR HRA LEVY FOR 2016. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -1 WITH TOM PERRAULT VOTING IN OPPOSITION. Lloyd Hilgart asked for clarification on the differences between the two levies as far as flexibility of uses and an explanation of the rationale for the amount that would be sought for a levy in terms of a minimum or maximum. Tammy Omdahl noted that both an EDA levy and HRA levy are similar in respect to what the EDA can do with the funds. By utilizing both levies, it allows the EDA to maximize its bonding authority. Often times, an HRA levy is used to fund staffing for an Economic Development Director. Brian Stumpf asked if establishing a special levy allows the EDA to make purchases without approval of the City Council. Angela Schumann indicated that the EDA is already authorized to make land acquisitions outside of city council approval; however, the current practice is to include Council in EDA meetings so decisions are made in accordance with EDA and Council approvals. Jeff O'Neill asked Tammy Omdahl to comment on the EDA's inability to acquire federal and state grants based on the city's tax base. That was confirmed by Tammy Omdahl, that some of those funding sources would not be available to Monticello's EDA. 4. Adjournment BILL TAPPER MOVED TO ADJOURN THE EDA SPECIAL MEETING AT 6:47 P.M. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Catherine M. Shuman Approved: Attest: Executive Director Monticello EDA Special Meeting Minutes — May 26, 2015 Page 3 MINUTES REGULAR MEETING – ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 13, 2015, Mississippi Room, Monticello Community Center Present: Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: Bill Demueles Others: Jeff O’Neill, Wayne Oberg 1. Call to Order. Bill Tapper called the meeting to order at 6:00 p.m. 2. Roll Call. 3. Approval of Minutes. a. Special Meeting, April 8, 2015. Minutes not available. b. Regular Meeting, April 8, 2015. Minutes not available. JIM DAVIDSON MOVED TO TABLE APPROVAL OF THE MINUTES TO THE NEXT EDA MEETING. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 6-0. 4. Consideration of additional agenda items. None. 5. Consideration of approving payment of bills. Tom Perrault inquired about the invoice to Northland Securities. Tracy Hinz said that it appears it was for services totaling 4-hours to discuss specific EDA questions about the tax levy. Bill Tapper brought up concerns about high consulting fees and that we should be more careful about asking for opinions from consultants and maybe we don’t need them as much. Jeff O’Neill said that staff will be conscientious and do their best to pick and choose when they bring in consultants. TRACY HINZ MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH APRIL 2015. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 6-0. 6. Consideration to adopt Resolution EDA 2015-006 approving an Assignment and Assumption Agreement between Front Porch Associates, Ltd. and Michael Cyr as related to Tax Increment Financing District No. 1-29. Michael Cyr, developer of the Vine Place project, has requested the contract between Front Porch Associates, Ltd., the HRA and the City be assigned to himself as the business entity is being dissolved. Cyr has requested the EDA approve an assignment of the tax increment for TIF District 1-29 as the development project is now completed and the obligations have been fulfilled. Upon approval and execution of the assignment and assumption, Cyr will receive the available tax increment and will assume the continuing rights and obligations of the contract. City staff has concurred that the development improvements required by the contract have been completed and any private loans or mortgages associated with Front Porch Associates, Ltd. have been satisfied. LLOYD HILGART MOVED TO ADOPT RESOLUTION EDA 2015-006 APPROVING AN ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN FRONT PORCH ASSOCIATES, LTD. AND MICHAEL CYR AS RELATED TO TAX INCREMENT FINANCING DISTRICT NO. 1-29. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7-0. 7. Consideration to approve expense and authorize agreement related to additional demolition related costs and completion of a Phase II Environmental Site Assessment for the EDA-owned property at 100 East Broadway. MnDOT has requested that the City complete a Phase II ESA as part of MnDOT’s TH 25/CSAH 75 intersection project plan review. This request is related to the conveyance of land to MnDOT for the right turn lane from northbound TH 25 to eastbound CSAH 75. This conveyance will transfer property from the EDA to MnDOT for the right of way purposes. WSB & Associates, the City’s consulting engineer, has prepared a scope of work for the Phase II analysis. The scope includes a description of services, timeline for completion and cost estimate. Furthermore, there may be additional fees related to unknown conditions discovered with the demolition. Shibani Bisson, City Engineer, explained that on May 6, after the building was demolished and the footings were being removed, discolored soil and petroleum type odors were observed. A soil sample was sent out to a testing lab and those results will be back later in the week. Therefore, WSB is recommending moving forward with the Phase II ESA as was originally recommended with the Phase I report as was noted that the site was a previous fueling station. The fees were originally estimated at $12,500 (half for borings & testing and the other half for on-site observation and reporting). Since that original estimate, MnDOT has requested some additional tests which are directly related to the fact that there was a coal gasification plant at the old “zoo” building, three buildings down. MnDOT is requesting this as the property will be conveyed to them with the right of way (ROW). Furthermore, the City’s Water & Sewer Superintendent discovered an additional 4” PVC line under the sidewalk along TH 25 that connected to the known 6” service line that was to be extended to the site as part of the demolition contract. A trench box was delivered to the site to allow for safe exploration of the 4” line to determine where the service extends to within the site where it should be disconnected and capped. The total cost of the additional fees is $5,050 for a total of $17,550. Bisson explained that they are looking for an additional $3,856 over this amount to cover the additional testing and possible remediation costs. Some of these fees and expenses may be refundable through the PCA. Bisson included a soil boring location map in conjunction with the Phase II ESA which indicates three additional boring outside of Block 34. WSB is recommending taking all of the borings to get a good cross section and this is also a requirement by MnDOT. Tapper brought up concerns that some of the fees for the borings being required by MnDOT that aren’t on Block 34 shouldn’t be the responsibility of the EDA but rather should be charged back to the intersection improvement project. TRACY HINZ MOVED TO APPROVE THE EXPENSE OF $21,406 AND AUTHORIZE THE EDA DIRECTOR AND PRESIDENT TO ENTER INTO AN AGREEMENT RELATED TO COMPLETION OF A PHASE II ENVIRONMENTAL SITE ASSESSMENT FOR THE EDA-OWNED PROPERTY AT 100 EAST BROADWAY AS WELL AS THE THREE BORINGS OUTSIDE OF THE EDA PROPERTY. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 6-0. 8. Consideration of action relating to Transformation Home Loan. Jeff O’Neill provided information on an EDA Transformation Home Loan which is in default related to property at 312 East River Street in the amount of $9,581. The mortgage agreement (third mortgage) for the Transformation Home Loan with the property owner was entered in 2007, and the Transformation Home Loan allows for forgiveness of the loan if the property is not sold within five years of the closing date of the loan. The City Finance Department had been tracking the loan and noted in 2010 that the property at 312 East River Street had gone into foreclosure. At that time, the Finance Department and Economic Development Department decision was to wait for the title company to contact the EDA as part of the title search. The title company, however, did not contact the EDA and to date, no information has been provided. The property went to sheriff’s sale in 2010, and there was no document filed to satisfy the HRA mortgage or release it. The property was purchased in May of 2014 by a private party and is no longer bank-owned. With few options for recovery and the cost to pursue action likely larger than the loan amount, the EDA is asked to determine whether to take further action against the original property owner or to declare the amount unrecoverable and close out the loan. LLOYD HILGART MOVED TO DECLARE THE DEFAULTED LOAN AMOUNT UNRECOVERABLE AND CLOSE OUT THE TRANSFORMATION HOME LOAN RELATED TO THE PROPERTY AT 312 EAST RIVER STREET. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 6-0. 9. Consideration to adopt the 2015 EDA Work Plan. A draft 2015 EDA Work Plan was included in the EDA agenda packet for review. Jeff O’Neill noted that the plan is based on feedback received during the February, March and April EDA workshops regarding the development of the plan. Tracy Hinz said that her concern is that the work plan is listed as a single-year document and that it could possibly be on a two-year cycle. O’Neill said that while the work plan is prepared as a single-year document, it is understood that many of the goals will require more than one year to realize and some are on-going. The categories for the work plan are reflective of the Comprehensive Plan’s primary goals for economic development which are:  Attracting & Retaining Jobs  Expanding Tax Base  Enhancing Downtown  Facilitating Redevelopment TRACY HINZ MOVED TO APPROVE THE WORK PLAN AS PREPARED AND PRESENTED. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 6-0. OPPPOSED: 1, TOM PERRAULT . 10. Consideration to establish an EDA subcommittee for development of an Economic Development staff recommendation. Jeff O’Neill explained that a work group was requested by the EDA at its April workshop on the 2015 EDA Work Plan for the purpose of creating a subcommittee for the development of an Economic Development staff recommendation. The EDA is asked to appoint 2-3 members to the subcommittee. Other members to the subcommittee would include staff consisting of the City Administrator, Community Development Director, Finance Director, and possibly a City Council member. The subcommittee will review sample job descriptions, the functions of the economic development department (past/present/future), and the contract for Market Matching Beth Green services as part of developing a recommendation. The goal is to have a recommendation on staffing for the regular EDA meeting in June, which can then be refined and forwarded to the City Council for consideration and budgeting discussions. BILL TAPPER MOVED TO APPOINT EDA COMMISSIONERS JIM DAVIDSON AND LLOYD HILGART TO A SUBCOMMITTEE FOR DEVELOPMENT OF AN ECONOMIC DEVELOPMENT STAFFING RECOMMENDATION. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 6-0. 11. Consideration of Director’s Report. Jeff O’Neill provided a verbal Director’s Report at the EDA Meeting. Topics of discussion included the following:  New (Underground) Power Line Installation at Chelsea & Cedar – Xcel Energy o Approved by City Council  Solar Garden Project o Possible mitigation to provide for extension of sewer & water for future development growth  Legislative Discussions – Proposed Bill o Modification of the way energy producers are taxed based on an energy producing value o City Council supports the bill  Ruff Auto Site: o City Council asked to provide a letter of support o 40-45 Unit Development o Workforce Housing – Eligibility Requirements o If Council supports, project out one year  TAC Meeting o 7th Street Alignment o Roundabouts/Configuration 12. Adjourn. TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:30 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 6-0. Recorded By: ______________________________________ Date Approved:_____________________________________ Attest:____________________________________________ MINUTES REGULAR MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 13, 2015, Mississippi Room, Monticello Community Center Present: Bill Demueules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: Bill Demueles Others: Jeff O'Neill, Wayne Oberg 1. Call to Order. Vice Chair Bill Tapper called the meeting to order at 6:00 p.m. 2. Roll Call. 3. Approval of Minutes. a. Special Meeting, April 8, 2015. Minutes not available. b. Regular Meeting, April 8, 2015. Minutes not available. JIM DAVIDSON MOVED TO TABLE APPROVAL OF THE MINUTES TO THE NEXT EDA MEETING. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 6 -0. 4. Consideration of additional agenda items. None. 5. Consideration of approving payment of bills. Tom Perrault inquired about the invoice to Northland Securities. Tracy Hinz said that it appears it was for services totaling 4 -hours to discuss specific EDA questions about the tax levy. Bill Tapper brought up concerns about high consulting fees and that we should be more careful about asking for opinions from consultants and maybe we don't need them as much. Jeff O'Neill said that staff will be conscientious and do their best to pick and choose when they bring in consultants. TRACY HINZ MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH APRIL 2015. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 7 -0. 6. Consideration to adopt Resolution EDA 2015 -006 approving an Assignment and Assumption Agreement between Front Porch Associates, Ltd. and Michael Cyr as related to Tax Increment Financing District No. 1 -29. Michael Cyr, developer of the Vine Place project, has requested the contract between Front Porch Associates, Ltd., the HRA and the City be assigned to himself as the business entity is being dissolved. Cyr has requested the EDA approve an assignment of the tax increment for TIF District 1 -29 as the development project is now completed and the obligations have been fulfilled. Upon approval and execution of the assignment and assumption, Cyr will receive the available tax increment and will assume the continuing rights and obligations of the contract. City staff has concurred that the development improvements required by the contract have been completed and any private loans or mortgages associated with Front Porch Associates, Ltd. have been satisfied. LLOYD HILGART MOVED TO ADOPT RESOLUTION EDA 2015 -006 APPROVING AN ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN FRONT PORCH ASSOCIATES, LTD. AND MICHAEL CYR AS RELATED TO TAX INCREMENT FINANCING DISTRICT NO. 1 -29. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7 -0. 7. Consideration to approve expense and authorize agreement related to additional demolition related costs and completion of a Phase II Environmental Site Assessment for the EDA -owned property at 100 East Broadway. MnDOT has requested that the City complete a Phase II ESA as part of MnDOT's TH 25 /CSAH 75 intersection project plan review. This request is related to the conveyance of land to MnDOT for the right turn lane from northbound TH 25 to eastbound CSAH 75. This conveyance will transfer property from the EDA to MnDOT for the right of way purposes. WSB & Associates, the City's consulting engineer, has prepared a scope of work for the Phase II analysis. The scope includes a description of services, timeline for completion and cost estimate. Furthermore, there may be additional fees related to unknown conditions discovered with the demolition. Shibani Bisson, City Engineer, explained that on May 6, after the building was demolished and the footings were being removed, discolored soil and petroleum type odors were observed. A soil sample was sent out to a testing lab and those results will be back later in the week. Therefore, WSB is recommending moving forward with the Phase II ESA as was originally recommended with the Phase I report as was noted that the site was a previous fueling station. The fees were originally estimated at $12,500 (half for borings & testing and the other half for on -site observation and reporting). Since that original estimate, MnDOT has requested some additional tests which are directly related to the fact that there was a coal gasification plant at the old "Zoo" building, two buildings down. MnDOT is requesting this as the property will be conveyed to them with the row. Furthermore, the City's Water & Sewer Superintendent discovered an additional 4" PVC line under the sidewalk along TH 25 that connected to the known 6" service line that was to be extended to the site as part of the demolition contract. A trench box was delivered to the site to allow for safe exploration of the 4" line to determine where the service extends to within the site where it should be disconnected and capped. The total cost of the additional fees is $5,050 for a total of $17,550. Bisson explained that they are looking for an addition $3,856 over this amount go cover the additional testing and possible remediation costs. Some of these fees and expenses may be refundable through the PCA. Bisson included a soil boring location map in conjunction with the Phase II ESA which indicates three additional boring outside of Block 34. WSB is recommending taking all of the borings to get a good cross section and this is also a requirement by MnDOT. Tapper brought up concerns that some of the fees for the borings being required by MnDOT that aren't on Block 34 shouldn't be the responsibility of the EDA but rather should be charged back to the intersection improvement project. TRACY HINZ MOVED TO APPROVE THE EXPENSE OF $21,406 AND AUTHORIZE THE EDA DIRECTOR AND PRESIDENT TO ENTER INTO AN AGREEMENT RELATED TO COMPLETION OF A PHASE II ENVIRONMENTAL SITE ASSESSMENT FOR THE EDA -OWNED PROPERTY AT 100 EAST BROADWAY AS WELL AS THE THREE BORINGS OUTSIDE OF THE EDA PROPERTY. MOTION SECONDED BY LLOYD HILGART. 8. Consideration of action relating to Transformation Home Loan. Jeff O'Neill provided information on an EDA Transformation Home Loan which is in default related to property at 312 East River Street in the amount of $9,581. The mortgage agreement (third mortgage) for the Transformation Home Loan with the property owner was entered in 2007, and the Transformation Home Loan allows for forgiveness of the loan if the property is not sold within five years of the closing date of the loan. The City Finance Department had been tracking the loan and noted in 2010 that the property at 312 East River Street had gone into foreclosure. At that time, the Finance Department and Economic Development Department decision was to wait for the title company to contact the EDA as part of the title search. The title company, however, did not contact the EDA and to date, no information has been provided. The property went to sheriff s sale in 2010, and there was no document filed to satisfy the HRA mortgage or release it. The property was purchased in May of 2014 by a private party and is no longer bank- owned. With few options for recovery and the cost to pursue action likely larger than the loan amount, the EDA is asked to determine whether to take further action against the original property owner or to declare the amount unrecoverable and close out the loan. LLOYD HILGAART MOVED TO DECLARE THE DEFAULTED LOAN AMOUNT UNRECOVERABLE AND CLOSE OUT THE TRANSFORMATION HOME LOAN RELATED TO THE PROPERTY AT 312 EAST RIVER STREET. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 7 -0. 9. Consideration to adopt the 2015 EDA Work Plan. A draft 2015 EDA Work Plan was included in the EDA agenda packet for review. Jeff O'Neill noted that the plan is based on feedback received during the February, March and April EDA workshops regarding the development of the plan. Tracy Hinz said that her concern is that the work plan is listed as a single -year document and that it could possibly be on a two -year cycle. O'Neill said that while the work plan is prepared as a single -year document, it is understood that many of the goals will require more than one year to realize and some are on- going. The categories for the work plan are reflective of the Comprehensive Plan's primary goals for economic development which are: • Attracting & Retaining Jobs • Expanding Tax Base • Enhancing Downtown • Facilitating Redevelopment TRACY HINZ MOVED TO APPROVE THE WORK PLAN AS PREPARED AND PRESENTED. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 6 -0. OPPPOSED: 1, TOM PERRAULT . 10. Consideration to establish an EDA subcommittee for development of an Economic Development staff recommendation. Jeff O'Neill explained that a work group was requested by the EDA at its April workshop on the 2015 EDA Work Plan for the purpose of creating a subcommittee for the development of an Economic Development staff recommendation. The EDA is asked to appoint 2 -3 members to the subcommittee. Other members to the subcommittee would include staff consisting of the City Administrator, Community Development Director, Finance Director, and possibly a City Council member. The subcommittee will review sample job descriptions, the functions of the economic development department (past/present/future), and the contract for Market Matching services as part of developing a recommendation. The goal is to have a recommendation on staffing for the regular EDA meeting in June, which can then be refined and forwarded to the City Council for consideration and budgeting discussions. BILL TAPPER MOVED TO APPOINT EDA COMMISSIONERS JIM DAVIDSON AND LLOYD HILGART TO A SUBCOMMITTEE FOR DEVELOPMENT OF AN ECONOMIC DEVELOPMENT STAFFING RECOMMENDATION. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7 -0. 11. Consideration of Director's Report. Jeff O'Neill provided a verbal Director's Report at the EDA Meeting. Topics of discussion included the following: • New (Underground) Power Line Installation at Chelsea & Cedar — Xcel Energy o Approved by City Council • Solar Garden Project o Possible mitigation to provide for extension of sewer & water for future development growth • Legislative Discussions — Proposed Bill • Modification of the way energy producers are taxed based on an energy producing value • City Council supports the bill • Ruff Auto Site: o City Council asked to provide a letter of support 0 40 -45 Unit Development o Workforce Housing — Eligibility Requirements o If Council supports, project out one year • TAC Meeting • 7th Street Alignment • Roundabouts /Configuration 12. Adiourn. TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:30 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. Recorded By: Date Approved: Attest: Beth Green MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, April 8th, 2015 - Academy Room, Monticello Community Center Present:Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent:None Others:Jeff O’Neill, Angela Schumann 1.Call to Order Bill Demeules called the meeting to order at 4:30 p.m. 2.Purpose The purpose of the workshop is to develop the 2015 EDA Workplan goals and objectives. 3.Consideration of Workplan Goals and Objectives Angela Schumann summarized that the EDA had previously approved incorporating a mission statement and action statements #1, #2 and #4 into the proposed 2015 workplan during the March 11th workshop. She noted that, after some discussion, the EDA had tabled draft action statements #3 and #11. Schumann suggested that the commissioners had provided valuable input that helped to further refine the draft action statements. Schuman asked that the EDA consider incorporating the remaining action statements into a 2015-2016 Workplan. The EDA discussed the draft action statements and acted as follows: BILL TAPPER MOVED TO ADOPT REVISED ACTION STATEMENT #3, “CLEARLY UNDERSTAND ALLOWABLE USES OF POOLED HOUSING INCREMENT AS A FINANCIAL RESOURCE, INCLUDING AMOUNT OF EXCESS.” STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6-0. (Tracy Hinz did not vote.) Schumann agreed to revise draft action statement #5 to emphasize engaging as a partner in other redevelopment opportunities as they arise and to also actively encourage redevelopment in support of the vision of the Embracing Downtown Plan with a specific emphasis on the four corners of TH 25/CSAH 75 intersection. Schumann pointed out that including this statement in the workplan would require revising the redevelopment policy accordingly. LLOYD HILGART MOVED TO ADOPT ACTION STATEMENT #6, “ACTIVELY MARKET INDUSTRIAL DEVELOPMENT AT THE MONTICELLO BUSINESS Special EDA Minutes: 4/08/15 2 CENTER (OTTER CREEK BUSINESS PARK), ACTIVELY TARGETING AND MARKETING TO BUSINESSES WHICH WILL BE A SUPPLIER, CUSTOMER OR COLLABORATIVE PARTNER TO EXISTING BUSINESSES WITHIN THE COMMUNITY.” TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7- 0. LLOYD HILGART MOVED TO ADOPT ACTION STATEMENT #7, “ENCOURAGE MORE PROACTIVE LEAD DEVELOPMENT AND RESPONSE IN ALL MARKET SEGMENTS TO SUPPORT A DIVERSIFIED TAX BASE.” BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7-0. There were some comments about the outcome of the Market Matching contract and a general acknowledgement that additional staffing is required to be proactive in addressing the City’s economic development goals. TRACY HINZ MOVED TO ADOPT ACTION STATEMENT #8, “DEVELOP AND RE-ESTABLISH A DEDICATED ECONOMIC DEVELOPMENT STAFF POSITION TO FACILITATE AND SUPPORT THE ACCOMPLISHMENT OF THE COMPREHENSIVE PLAN GOALS.” JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 7-0. There was some discussion related to potentially forming a work group to further develop the scope of the proposed Economic Development Director job description. LLOYD HILGART MOVED TO ADOPT REVISED ACTION STATEMENT #9, “MARKET EDA INCENTIVE PROGRAMS IN A MORE PROACTIVE MANNER, BOTH WITHIN THE COMMUNITY AND BEYOND, BEGINNING WITH EDUCATING THE EDA ABOUT THESE RESOURCES.” BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7-0. JIM DAVIDSON MOVED TO ADOPT ACTION STATEMENT #10, “ACTIVELY MARKET FOR SALE FOR DEVELOPMENT THE EDA-OWNED PROPERTIES AT CEDAR STREET, 349 WEST BROADWAY AND 413 W. 4TH STREET. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. The commissioners pointed to the need to understand the different types of programs available for improving existing housing stock. Staff shared some preliminary information related to Transformational Home Loans. TRACY HINZ MOVED TO ADOPT ACTION STATEMENT #11, “EXAMINE HOUSING STOCK FOR AGING OR BLIGHTED PROPERTIES AND RESEARCH DEVELOPMENT OF PROGRAMS FOR REDEVELOPMENT AND OR REVITALIZATION.” BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7-0. Special EDA Minutes: 4/08/15 3 The EDA noted that FiberNet differentiates this community from other communities and indicated general agreement about the value of branding Monticello as a “Destination for Innovation.” BILL TAPPER MOVED TO TABLE REVISED ACTION STATEMENT #12, “DEVELOP AND TELL THE STORY OF DESTINATION FOR INNOVATION AS A MEANS TO SUPPORT ECONOMIC DEVELOPMENT AS ENVISIONED BY THE COMPREHENSIVE PLAN.” TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. 4.Adjournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:54 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7-0. Recorder: Kerry Burri __ Approved: Attest:____________________________________________ Angela Schumann, Community Development Director MINUTES REGULAR MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 8, 2015, Mississippi Room, Monticello Community Center Present: Bill Demueules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Others: Jeff O'Neill, Angela Schumann, Wayne Oberg 1. Call to Order. Bill Tapper called the meeting to order at 6:00 p.m. 2. Roll Call. 3. Approval of Minutes. a. Special Meeting, February 11, 2015. BILL TAPPER MOVED TO APPROVE THE MINUTES OF THE SPECIAL EDA MEETING ON FEBRUARY 11, 2015. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. b. Special Meeting, March 11, 2015. TRACY HINZ MOVED TO APPROVE THE MEETINGS OF THE SPECIAL EDA MEETING ON MARCH 11, 2015 WITH THE CORRECTION OF THE MEETING ADJOURNMENT TIME AT 5:55 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. c. Regular Meeting, March 11, 2015 BILL TAPPER MOVED TO APPROVE THE MINUTES OF THE REGULAR EDAMEETING ON MARCH 11, 2015. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. 4. Consideration of adding items to the agenda. A. Market Matching Report. The written Market Matching Updates from WSB & Associates were included in the EDA agenda packet for review by the Commissioners. John Uphoff attended the meeting and presented the Market Matching Reports for both February and March. 5. Consideration of approving payment of bills. LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH MARCH 2015. MOTION SECONDED BY BILL TAPPER. MOTION CARRIED UNANIMOUSLY, 7 -0. 6. Consideration to elect officers. BILL TAPPER MOVED TO APPOINT COMMISSIONER BILL DEMEULES AS EDA PRESIDENT. MOTION SECONDED BY STEVE JOHNSON. STEVE JOHNSON MOVED TO APPOINT COMMISSIONER BILL TAPPER AS EDA VICE - PRESIDENT. MOTION SECONCED BY LLOYD HILGART. BILL DEMEULES MOVED TO APPOINT COMMISSIONER TRACY HINZ AS EDA TREASURER. MOTION SECONDED BY BILL TAPPER. BILL TAPPER MOVED TO APPOINT STEVE JOHNSON AS EDA VICE - TREASURER. MOTION SECONDED BY TRACY HINZ. BILL TAPPER MOVED TO APPROVE ALL APPOINTMENTS AS MOTIONED ABOVE. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7 -0. 7. Consideration to review EDA Bylaws and Enabling Resolution. The EDA reviewed the Bylaws of the Economic Development Authority with the changes recommended in the annual review by the EDA attorney. TRACY HINZ MOVED TO APPROVE THE EDA BYLAWS AS PRESENTED AND RECOMMEND THE CITY COUNCIL APPROVE RESOLUTION NO. 2014 -024 APPROVING THE AMENDMENT OF THE EDA BYLAWS. MOTION SECONDED BY BILL TAPPER. MOTION CARRIED UNANIMOUSLY, 7 -0. 8. Consideration to review EDA fund balances. Wayne Oberg presented the fund balance report to the EDA with itemized line item detail for all of the EDA's sub - funds, the majority of which are the tax increment districts within the City. TRACY HINZ MOVED TO APPROVE THE 2015 EDA FUND BALANCE REPORT AS PRESENTED BY THE CITY FINANCE DIRECTOR. MOTION SECONDED BY BILL TAPPER. MOTION CARRIED UNANIMOUSLY, 7 -0. 9. Consideration to adopt Resolution for Decertification of Tax Increment Financing District No. 1 -37. Angela Schumann explained that in March, 2015, the EDA acted to adopt a resolution modifying TIF District 1 -37. The modification rescinded the EDA's previous approval of the prior modification to TIF 1 -37 in the prior resolution but ratified and confirmed all other approvals made in the resolution. The EDA's adopted resolution approving modification of TIF 1 -37 modified the line item budgets without increasing the overall budget, "Estimated Tax Increment Project Costs ". Also the decertification date is 12/31/16, the district is being decertified early, with an effective date of 12/31/14. Schumann provided background information on the tax increment financing assistance to the developer in the form of a land write -down for the purchase price of the property whereby the EDA adopted an nterfund loan resolution by which the EDA repaid the difference between the price paid by the developer and the fair market value of the property through tax increments from the TIF District. However, the Interfund Loan that was approved actually exceeded the authorized budget. Schumann explained that with the EDA's decision not to proceed with a notice/hearing to allow for an increase to the budget, the TIF Plan for the district does not allow budgetary authority to pay the entire principal and interest on the Interfund Loan. The tax increment received from the County and applied to the Interfund Loan on August 1, 2014, was the final authorized payment on the Interfund Loan under the TIF Plan and; therefore, the TIF District must be decertified as of that date. BILL TAPPER MOVED TO ADOPT RESOLUTION NO. EDA- 2015 -004 DECERTIFYING TAX INCREMENT FINANCING DISTRICT NO. 1 -37. MOTION SECONDED BY LLOY HILGART. MOTION CARRIED UNANIMOUSLY, 7 -0. 10. Consideration of approving a 2015 Farm Lease Agreement for Outlot F, Otter Creek Crossing. A lease agreement is proposed between the EDA and Tom & Matt Spike for the farming of 13.6 acres of land at Otter Creek Crossing. The lease agreement is consistent with the farm lease agreement entered into with the same tenant for 2014, with the exception of the rent payment. The proposed lease will allow the tenant access to farm the property between May 15 and November 10, 2015. The lease land area is not irrigated and is directly adjacent to land owned by the proposed lease tenant. The draft agreement for 2015 includes an increased rental fee of $1,356 (to cover the taxes payable on the parcel). BILL TAPPER MOVED TO AUTHORIZE THE EDA EXECUTIVE DIRECTOR AND PRESIDENT TO EXECUTE THE FARM LEASE AGREEMENT FOR OUTLOT F, OTTER CREEK CROSSING AS DRAFTED. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUSLY, 7 -0. 11. Consideration of an update rmardin2 the Administrative Lot Combination and Simple Subdivision of EDA -owned property. An update was provided regarding the EDA application for Administrative Lot Combination and Simple Subdivision for Lots 14 and 15, Block 34, Original Plat of Monticello. Staff has recommended approval of the lot combination and simple subdivision and the EDA is not required to hold a hearing for the conveyance of the property as the conveyance is for a public purpose to another political subdivision. Therefore, no action by the EDA is required at this time. 12. Consideration of Director's Report. The written Director's Report was included in the agenda packet for review by the Commissioners. The report included updates on the following: • Business Subsidy Policies • CSAH75 /TH 25 Improvements • City Industrial Park • Xcel Energy Substation • New /Expanding or Relocating Businesses • Market Matching 13. Adiourn. BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:10 P.M. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUSLY, 7 -0. Recorded By: Date Approved: Attest: Beth Green EDA Agenda: 07/08/15 5. Consideration of approving payment of bills (WO) A. REFERENCE AND BACKGROUND: Invoices submitted during the previous month are included for review and consideration. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through June 2015. 2. Motion to approve the payment of bills through June 2015 with changes directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of payment for invoices submitted. D. SUPPORTING DATA: Invoices Accounts Payable CITY OF Transactions by Account User: Julie.Cheney ie Printed: 06/03/2015 - 1:13PM m0nq Batch: 00202.06.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] BLK034 - TIF District through 4/30/1: 06/09/2015 114190 280.25 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] General EDA Matters through 4/30/1 - 06/09/2015 114190 684.50 Vendor Subtotal for Dept:46301 964.75 213-46301-431990 HARRY LANTTO EDA Meeting Recording - 5/13/15 06/09/2015 0 60.00 Vendor Subtotal for Dept:46301 60.00 213-46301-431990 WILSON DEVELOPMENT SERVI( Acquistioin & Relocation Consultant E 06/09/2015 0 592.50 Vendor Subtotal for Dept:46301 592.50 213-46301-431990 M & P SIGN CO Metal signs 30x24 "For Sale for Deve 06/09/2015 114195 59.00 Vendor Subtotal for Dept:46301 59.00 The preceding list of bills payable was reviewed and approved for payment. Subtotal for Fund: 213 1,676.25 Report Total: 1,676.25 Date: 7/8/2015 Approved by: Tracy Hinz, Treasurer AP- Transactions by Account (06/03/2015 - 1:13 PM) Page 1 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 06/17/2015 - 1:55PM Batch: 00203.06.2015 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431990 WSB & ASSOCIATES INC BLK034 - Environmental Does - April 06/23/2015 0 3,091.50 213-46301-431990 WSB & ASSOCIATES INC Economic Development & Marketing 06/23/2015 0 4,000.00 Vendor Subtotal for Dept:46301 7,091.50 213-46301-431990 NORTHLAND SECURITIES INC EDA - Special tax levy authority 06/23/2015 114261 330.00 Vendor Subtotal for Dept:46301 330.00 The preceding list of bills payable was reviewed and approved for payment. Date: 7/8/2015 Approved by: Tracy Hinz, Treasurer Subtotal for Fund: 213 7,421.50 Report Total: 7,421.50 AP- Transactions by Account (06/17/2015 - 1:55 PM) Page 1 Accounts Payable CITY OF Transactions by Account User: Debbie.Davidson ie Printed: 06/11/2015 - 11:00AM m0nq Batch: 00201.06.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 00000 - 362970 US BANK CORPORATE PMT SYS US Bank Rebate Q1 2015 06/15/2015 0 -3.41 Vendor Subtotal for Dept: 00000 -3.41 213 - 46301 - 421990 US BANK CORPORATE PMT SYS Gradys -For Sale Signs -EDA- (2) Coi 06/15/2015 0 19.98 Vendor Subtotal for Dept:46301 19.98 213-46522-431000 US BANK CORPORATE PMT SYS Advanced Disposal - April 2015 06/15/2015 0 7.03 Vendor Subtotal for Dept:46522 7.03 Subtotal for Fund: 213 23.60 Report Total: 23.60 The preceding list of bills payable was reviewed and approved for payment. Date: 7/8/2015 Approved by Tracy Hinz, Treasurer AP- Transactions by Account (06/11/2015 - 11:00 AM) Page 1 Accounts Payable CITY OF Transactions by Account User: Debbie.Davidson ie Printed: 06/11/2015 - 11:00AM m0nq Batch: 00201.06.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 00000 - 362970 US BANK CORPORATE PMT SYS US Bank Rebate Q1 2015 06/15/2015 0 -3.41 Vendor Subtotal for Dept: 00000 -3.41 213 - 46301 - 421990 US BANK CORPORATE PMT SYS Gradys -For Sale Signs -EDA- (2) Coi 06/15/2015 0 19.98 Vendor Subtotal for Dept:46301 19.98 213-46522-431000 US BANK CORPORATE PMT SYS Advanced Disposal - April 2015 06/15/2015 0 7.03 Vendor Subtotal for Dept:46522 7.03 Subtotal for Fund: 213 23.60 Report Total: 23.60 The preceding list of bills payable was reviewed and approved for payment. Date: 7/8/2015 Approved by Tracy Hinz, Treasurer AP- Transactions by Account (06/11/2015 - 11:00 AM) Page 1 O z U 0 d G O @ cli0 N o H N A s Ca O O a U @ t- U O z U 0 a @ N o H N s a U E O 00 M 7 N N 7 0 a U @ N H N C T U @ t- Q 0 o� O N O O � Q O Q L2 o Q U (V d � p G O F-' 4 E EDA Agenda: 07/08/15 6. Consideration of Market Matching report. A. REFERENCE AND BACKGROUND: A verbal report will be provided by WSB Market Matching consultant John Uphoff. EDA Agenda: 07/08/15 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA-owned property at 100 East Broadway. (AS/SB) A. REFERENCE AND BACKGROUND: The EDA is asked to consider authorizing additional expenses estimated up to $5,000 as related to additional investigation as required by the MPCA to address the contaminant release discovered with demolition of the EDA-owned property at 100 East Broadway. At the June 10, 2015 meeting, the EDA was provided an update related to the Limited Site Investigation (LSI) that is being completed as required by the MPCA in order to be eligible for Petrofund reimbursement. Environmental borings were taken on June 1 and 2, 2015 at the 100 East Broadway site and adjacent City owned properties as shown on the enclosed map. Preliminary test results indicated that a petroleum odor and elevated Diesel Range Organics (DRO) concentrations were detected in the soil at B-1 from 2-4 feet (the suspected source area) and also at B-4 from 0-2 feet from the ground. Boring location B-4 could not be moved further south due to the presence of utilities and private property access restrictions. Trace concentrations of DRO was detected in the groundwater at B-1 during the investigation. These preliminary results were reported to the MPCA for review. The MPCA is recommending that an additional boring be taken south of B- (owner James Wolff) in order to define the southern boundary of the petroleum leak. At this time, the property owner has not agreed to allowing the boring. WSB has proposed an alternative to the MPCA of taking g lot and TH 25 right of way, however the MPCA would like to pursue a boring being taken on the in order to delineate the boundary of the petroleum leak. At the time this report was written, there is no resolution to the location of the proposed borings. Staff will provide the EDA with an update at the meeting. As noted above, the purpose of the additional boring(s) will hopefully provide an indication of the extent of the contamination release and once defined, will then allow the City to have closure of the release and then the City can proceed with the final approvals, bidding and construction of the TH 25/CSAH 75 intersection project. When the boundary is defined, a Construction Contingency Plan/Response Action Plan (CCP/RAP)will be prepared to outline how petroleum impacted soils will be managed during construction (if encountered). Based on available testing information, impacted soils not encountered during construction will be allowed to remain in place. Corrective action will be required by MPCA if contamination is determined to pose a threat to human health or the environment. We are anticipating that contaminated soil removal will only need to occur, if encountered, on City property in conjunction with the TH 25/CSAH 75 intersection project. However, we will not have a definitive plan until the borings are complete and the MPCA reviews the results and provides their requirements. Staff will also discuss with MnDOT the possibility of proceeding with the improvement project without MPCA release closure. It may be allowable to proceed with the 1 EDA Agenda: 07/08/15 intersection improvements once the CCP/RAP is completed and remediation occurs for the construction impacted area alone. At this time, the EDA is asked to consider approving up to $5,000 to support additional borings as required by the MPCA, and for continued coordination for the borings, reporting and coordination with the adjacent property owner and MnDOT and the MPCA. Since there are some unknowns with how the site can obtain MPCA site closure staff felt that an estimated $5,000 would be a reasonable amount at this time. A1. Budget Impact: The budget impact of up to $5,000 is proposed to be paid from the EDA General Fund. A2. Staff Workload Impact: The amount proposed will minimize staff impact, with WSB and the MPCA for the required LSI documentation. B. ALTERNATIVE ACTIONS: 1. Motion to approve an expense of up to $5,000 related to additional investigation as required by the MPCA for completion of the LSI as related to the EDA-owned property at 100 East Broadway. 2. Motion to deny an expense of up to $5,000 related to additional investigation as required by the MPCA for completion of the LSI as related to the EDA-owned property at 100 East Broadway. 3. Motion of other. C. STAFF RECOMMENDATION: City staff recommends Alternative #1. It is critical to expedite the additional borings and completion of the LSI, so that City can proceed with the final approvals, bidding and construction of the TH 25/CSAH 75 intersection project in 2015. D. SUPPORTING DATA: A. Figure 2 - Soil Boring Investigation Map 2 EDA Agenda: 07/08/15 8. Consideration to approve contract for July 2015 — June 2016 month -to -month Market Matching Services. (AS) A. REFERENCE AND BACKGROUND The current contract for services with WSB Market Matching expires in July, 2015. During its June meeting, the EDA motioned to continue Market Matching services with WSB & Associates on a month -to -month basis. The EDA's action was related to the potential for establishment of a dedicated economic development staff person within the next 6 -12 months and the need to continue a consistent marketing presence in the interim The Market Matching team has therefore revised the contract for services to a month -to- month basis, continuing to provide core services outlined in the prior year contract. Approval of this item by the EDA is requested, as it was noted at the June meeting that staff would bring back the contract for EDA review and approval. Al. Budget Impact: A $4,000 per month amount was budgeted through 2015. A2. Staff Impact: Staff will continue to evaluate options for staffing and marketing services with the EDA sub - committee. As previously noted, the hire of a dedicated economic development staff person would directly impact the City's contract scope for Market Matching services. B. ALTERNATIVE ACTIONS Motion to approve the month -to -month contract for Market Matching services with WSB & Associates as prepared. 2. Motion of other. C. STAFF RECOMMENDATION Approval of the contract as proposed is consistent with the EDA's June action, subject to any revisions suggested by the EDA. D. SUPPORTING DATA A. Proposed July 2015 — June 2016 Month -to -Month Market Matching Contract B. 2014 -2015 Market Matching Contract A WSB & AsEf� engineering • planning • environmental • construction July 1, 2015 Mr. Jeff O'Neill City Administrator City of Monticello 505 Walnut Avenue, Suite 1 Monticello, MN 56069 Re: Economic Development Services for the City of Monticello Dear Mr. O'Neill: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel 763 - 541 -4800 Fax 763 - 541 -1700 Thank you for providing WSB & Associates the opportunity to submit this proposal to provide Economic Development Services for the City of Monticello. Provided below is a summary of the proposed Scope of Services and Fee: SCOPE OF SERVICES: Task 1: Deliverable Development & Data Collection • Deliverable 1: Market Data - Revision /completion of the original contract's remaining tangible deliverables within the first 45 days of the new contract. To include the following: o Housing market demand analysis report - Deployment of completed market matching materials - Update site maps every two months Deliverable 2: Data Deployment - Dedicated focus on news release and development of economic development/business features for City communication outlets. • WSB will coordinate press releases as needed • WSB will ensure consistent integration of USP throughout all marketing efforts • WSB will provide content and copy for the City's economic development website • Deliverable 3: Data Management - Manage and report on SalesForce CRM Community Partner Portal o WSB will include the CRM report at July EDA meeting. - Business Retention & Expansion • Deliverable 4: Economic Development Opportunities - WSB will identify and assist in identifying potential economic development opportunities: including the following: • Land Acquisition • Financial Incentive Opportunities Equal Opportunity Employer wsbeng.com F.\Economic Development\Boards \EDA \EDA Agenda\2015 \Julf\ltem 8.Market Matching\2015 Economic Development Contract - Monticello revised 7. Page 2 - Task 2: Market Engagement • Deliverable 5: Profile of Targeted Prospects - EDA/staff discussion regarding targeted industries and potential market entrants as it relates to City -held properties o Coordinate EDA/City Negotiations Team work on City -held properties to determine sale disposition and representation; produce sale pieces; develop and present recommended sales strategy • Produce sales pieces • Develop and present sales strategy - Coordination of Tour for Prospective Leads o WSB will coordinate tours for prospective leads as necessary. Deliverable 6: Deliver Leads /Assist in Closing - Act as a conduit for information and resource for market entrant and the City staff (on- going) o WSB will take a lead role in providing detailed development related information to all qualified leads including: • Assistance with financial package preparation in consultation with City staff, policy makers, and financial consultant • Attendance at pre- design meetings associated with Market Matching leads. Deliverable 7: - Active networking with potential market entrants (on- going) • External Organization and level of participation (on- going) • Greater MSP — WSB retains membership and acts as representative • DEED — City retains memberships and WSB acts as representative • EDAM — WSB retains membership and WSB acts as representative • Central Minnesota Initiative Foundation — City retains membership and WSB acts as representative • Minnesota Chamber of Commerce — WSB retains membership and acts as representative • Broadband Properties — City retains membership and WSB acts as representative • Wright County Economic Development Partnership — membership by both City and WSB and WSB acts as primary representative with City support • Minnesota High Tech Association — WSB acts as representative • Central Minnesota Industrial Partnership — WSB acts as representative • Central MN Manufacturer's Association — WSB acts as representative • Conference and Association Trade Shows — TBD • Sensible Land Use Coalition — WSB acts as representative • League of Minnesota Cities — WSB acts as representative • NAIOP — WSB acts as representative • CoreNet Global — WSB acts as representative • Urban Land Use Institute — WSB acts as representative - Maintain current understanding of existing Grant programs for potential use in conjunction with Market Matching efforts. o Monthly report to staff on opportunities and corresponding project fit Task 3: Project Management • Deliverable 8: - Provide consistent and effective communication with City Staff, EDA, and City Council. (see communications plan) • WSB will provide Weekly Email Updates to City Staff • WSB will attend Bi- Weekly Staff Update Meetings • WSB will provide Written Monthly Memo to City Staff of Market Matching efforts, including ED e- newsletter F:\Eccaa mic De 1opramt\Boards\EDA\EDA Agenda\2015\JWy \1tem S.Market Matching\2015 Economic Development Contract - Monticello revised 7.1.15.da Page 3 - • WSB will provide Monthly Presentation to the EDA meetings on a monthly basis. • WSB will prepare website information • WSB will deploy the City Economic Development Flyer • WSB will prepare Property Site Flyers on an as needed basis • WSB will coordinate with the Chamber of Commerce in conjunction with Market Matching efforts and property map updates. FEE FOR SERVICES As outlined in the Economic Development Services contract, the City has the option to retain WSB & Associates on a month to month basis for an additional 12 months at the fee of $4,000 per month, starting July 1, 2015. Travel expenses incurred by WSB within the State of MN as part of the Economic Development Services offering are still included in the monthly fee stated above. Travel expenses incurred by WSB for travel outside of the State of MN that is directed by the City of Monticello shall be paid for according to a negotiated price. Additionally, fees for services outside of the above described scope that may be required from time to time shall be completed at an additional hourly rate. Types of services could include the following: Grant/Funding Support FiberNet Monticello Marketing Support Website Management The above described services will be provided in accordance with WSB's in -place Professional Services Agreement. If you are in agreement with the proposed project Scope of Services and FEE, please sign below and return one copy to our office. If you have any questions or comments regarding the above information, please contact either one of us at (763) 541 -4800. Sincerely, WSB & Associates John Uphoff Brian J. Bourassa, PE Economic Development Specialist Principal Approval Signature By: Title: Date: F E.cononuc De,elopment Boards E.DA�E.DA Agenda 2015 , JulyVtem 8.Market Matching 2015 Econonuc Development Contract - Monticello re,ised 7.1.15. do, EDA Agenda: 07/08/15 9. Consideration to set a ioint EDA/City Council work session for purposes of EDA/HRA Lew discussions. (AS) A. REFERENCE AND BACKGROUND On May 26th, the EDA and Council met in a joint work session to discuss the potential of establishing on EDA and /or HRA levy for 2016. The EDA recommended and the City Council apphroved moving forward with a letter of intent regarding the EDA and /or HRA levy on May 26t . The attached letter was sent to Wright County and receipt confirmed. At this time, staff is requesting that the EDA set a date for a secondary discussion with the City Council regarding the potential EDA and /or HRA levy. During the meeting, staff would propose to cover the following items: 1. Purpose of levy exploration 2. EDA and HRA levy overview and function 3. EDA funding priorities and budgeting expectations 4. Preliminary recommendation for EDA and /or HRA levy for 2016 Al. Budget Impact: None. A2. Staff Impact: Minimal; related to posting or required notice and preparation of background materials. B. ALTERNATIVE ACTIONS 1. Motion to call for a special meeting of the EDA on , 2015 for purposes of EDA and HRA levy discussions, and to request attendance of the City Council. 2. Motion of other. C. STAFF RECOMMENDATION Staff defers to the EDA as to the date and time of the meeting. However, an understanding of the intent to levy and preliminary understanding on the amount of levy is needed for budgeting and reporting purposes no later than the 15th of September, 2015. The EDA will note that the Council already has a workshop booked prior to its July 13th and 27th regular meetings. Therefore, staff would recommend setting the workshop prior to the regular August EDA meeting, beginning at 4:30 PM. D. SUPPORTING DATA A. Letter to Wright County, EDA /HRA Levy B. EDA/HRA Levy Memorandum �T\ \, CITY OF m onti6eRo r June 9, 2015 Robert Hiivala Wright County Auditor- Treasurer 10 2nd Street NW Buffalo, MN 55313 RE: City of Monticello EDA/HRA Tax Levy Dear Mr. Hiivala: PHONE: 763-295-2711 FAx:763- 295 -4404 505 Walnut Street Suite 11 Monticello, MN 55362 By this letter, I am notifying you, in accordance with Minnesota Statutes, Section 275.067, that the City of Monticello Economic Development Authority (the "EDA ") intends to operate as a special taxing district and is considering certification of a levy for taxes collected in 2016. The EDA currently exists, having been formed by an enabling resolution of the City Council on March 25, 2013 (amending, restating, and superceding in all respects Ordinance No. 172, approved April 10, 1989, as amended). Under the enabling resolution, the EDA's bylaws and Minnesota Statutes, Sections 469.090 to 469.1082 (the "EDA Act"), the City may impose a levy under Minnesota Statutes, Section 469.107 for the benefit of the EDA (the "EDA Levy "). In addition, the EDA has all the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "). One of those powers is the power to levy a special benefit tax under Section 469.033, subd. 6 (the "HRA Levy "). The EDA is now considering the imposition of the EDA Levy and the HRA Levy in accordance with the EDA Act and HRA Act, beginning with a levy for taxes collected in 2016. We understand that the maximum EDA Levy under current law is 0.01813% of taxable market value in the City, and that the maximum HRA Levy under current law is 0.0185% of taxable market value in the City. The entire area of the City constitutes the "special taxing district" against which the levy will be spread. As required by Minnesota Statutes, Section 275.067, attached is a map showing the boundaries of the district which includes all tax parcels in the City. In addition, a complete list of the tax parcels in the special taxing district, which is the entire area of the City, is available upon request. The EDA and City will approve and submit the EDA Levy and HRA Levy to your office in accordance with the EDA Act, the HRA Act, and Minnesota Statutes, Chapter 275. The EDA may determine not to raise a levy (or to raise only a portion of the maximum permitted) in any particular year. If you have any questions, please let me know. Sincerely, dam! Je y O'Neill City Administrator www.ci.rnonticeIIo.rnn.us Kennedy Offices in 470 U.S. Bank Sixth Street 200 South Sixth Street Minneapolis Minneapolis MN 55402 Saint Paul (612) 337 -9300 telephone Graven (612) 337 -9310 fax St. Cloud www.kennedy- graven.com C H A R T E R E D Affamative Action Equal Opportunity Employer MEMORANDUM TO: Board of Commissioners, Monticello Economic Development Authority FROM: Martha Ingram, Kennedy & Graven, Chartered CC: Tammy Omdal, Northland Securities, Inc. DATE: March 23, 2015 RE: HRA/EDA Tax Levies You have requested an explanation of the authority for the two types of levies available to the City of Monticello Economic Development Authority ( "EDA "), and some historical background on those levies. The two levies are sometimes referred to as the "HRA levy" and the "EDA levy," described as follows. 1. HRA levy Under Minnesota Statutes, Sections 469.091 an economic development authority has all the powers of a housing and redevelopment authority under Sections 469.001 to 469.047 (the "HRA Act "), unless those powers are limited by the City's enabling resolution that established the authority. The enabling resolution that established the Monticello EDA contained no such limitations, and in fact, in about 2008, the City acted to consolidate the functions of the EDA and HRA and to bring all such functions under the purview of the EDA. Therefore, the EDA may essentially act as a housing and redevelopment authority and exercise all powers under the HRA Act, as well as exercising its economic development powers under Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act "). Under Section 469.033 of the HRA Act, an HRA may levy a tax on its area of operation for the purposes authorized under the HRA Act, subject to consent by the city council. The levy may not exceed .0185 percent of the taxable market value in the City. The "area of operation" of the authority is the boundaries of the City. Since the EDA has all the powers of a housing and redevelopment authority, the EDA may levy the tax authorized under Section 469.033, subject to the same limitations and procedures that would apply if it were levied by a housing and redevelopment authority. The HRA levy has two important features. First, the proceeds must be used only "for the purposes of [the HRA Act]." Minnesota Statutes, Section 469.033, subd. 6. Those purposes, broadly, include redevelopment to correct or prevent blight, and development of or assistance to housing for low or moderate income persons. 457807vl MNI MN190 -101 Second, the HRA levy is technically raised by the EDA (using its HRA Act powers), albeit approved by the City Council. The levy amount is above and beyond any levy limits that apply to the City; the only limit is the .0185% of market value described above. As such, the HRA levy is a reliable source of revenue independent of City revenues. As shown in Exhibit A, attached, the maximum HRA levy authorized for 2015 in Monticello is $280,011. 2. EDA levy Section 469.107 of the EDA Act provides separate authority for a tax levy to benefit the EDA. Under this provision, the City levies the tax at the request of the EDA. The amount levied is limited to .01813 percent of the taxable market value in the City (a higher levy is permissible but subject to reverse referendum). For Monticello in 2015, the maximum authorized EDA levy is $274,410. This levy is different from the HRA levy in two respects. First, it is made by the City for the benefit of the EDA, at the EDA's request. The amount is within the City's overall levy limits. As such, it is essentially the same as an appropriation to the EDA from the City's general funds. In any year in which levy limits apply, the EDA levy would compete with general City needs. As such, the EDA levy is not as stable, and consequently is not frequently used (at least among the cities I work with). Second, the statute does not expressly limit the proceeds to any particular use, but the implication is that they may be used for any activity an EDA is authorized to carry out under the EDA Act. Those uses include housing and redevelopment activities under the HRA Act, but also broader economic development activities. That is, the EDA levy has a slightly higher limit, and fewer restrictions on use; however, these benefits tend to be overshadowed by the City levy limit problem described above. The existence of these two separate levies can be explained by the history of the EDA Act. That statute was enacted in 1986, and was intended (by its proponents) as mechanism to consolidate development and redevelopment powers in a single agency. However, that concept became somewhat controversial, and the powers of economic development authorities were scaled back during the course of the legislative session. The final result was a statute that provides some new powers for economic development authorities, coupled with the cross - referenced powers of housing and redevelopment authorities and cities. In practice, the cross - referenced powers have been more beneficial. The City could, if it chose, use both the EDA levy and the HRA levy, as long as the EDA levy is used for purposes other than housing and redevelopment. Again, this strategy would be no different than simply appropriating City funds to the EDA, in addition to allowing the EDA to raise its own levy (using the HRA levy power). 3. Process If the EDA wishes to levy an HRA levy, the steps required are fairly straightforward. First, the EDA must prepare and file an annual budget (for its housing and redevelopment activities) in accordance with the budget procedures of the City. The EDA must request that the City Council approve a levy based on this budget. The City Council must review the budget and consent to 457807v1 MNI MN190 -101 the HRA levy by resolution. No public hearing is required for this process. Once adopted, the HRA levy is included in the City's preliminary levy certification and is collected by the County in the same manner as general City taxes, but is kept in a separate fund and turned over to the EDA directly. The process is basically the same if the EDA wishes to institute an EDA levy. As previously stated, though, the EDA levy should be considered to be part of the City's general levy, rather than a special levy independent of City revenues. Once the EDA levy is in place, it may be increased above the statutory limit, but only if the following requirements are met. First, the City Council must adopt a resolution stating the proposed amount of the increase. The resolution and a notice of public hearing must then be published for two successive weeks in the official newspaper of the City, with the first publication taking place at least two weeks before the public hearing. After the hearing, the City Council may (but is not required to) adopt a resolution authorizing the proposed increase or a lesser increase. This resolution must also be published once. If a petition requesting a referendum on the increase, signed by voters equaling at least 5 percent of the votes cast in the most recent general election, is filed with the City Clerk within 30 days of publication, the resolution will not become effective and an election on the increase will be required. 4. Calculation of City Taxes Attributable to Decertified TIF Districts You also requested information on the amount of taxes that will be available to the City upon decertification of various tax increment financing ( "TIF") districts that are nearing the end of their statutory terms. As shown in Exhibit A, there are three TIF districts that will be decertified in the near future: TIF District No. 36 (decertified by end of 2015), TIF District No. 37 (decertified by end of 2015), and TIF District No. 38 (decertified by end of 2017). Upon decertification of these TIF districts, property taxes currently paid over to the City as tax increment from parcels within the TIF districts will instead be distributed by Wright County to the normal taxing jurisdictions, resulting in an increase in tax revenues available for general City purposes. The estimated additional city taxes that will become available as a result of decertifying TIF District No. 36 and TIF District No. 37 at the end of 2015 is $32,028. The additional amount available at the end of 2017 will be approximately $4,887. In total, the annual amount of property tax going to the City's general fund after the end of 2017 is approximately $37,000. If you have further questions on these points, please let me know. 457807v1 MNI MN190 -101 0 0 0 City of Monticello Monticello Economic Development Authority Estimated Property Tax Levy Scenarios for Monticello Economic Development Authority } TIF District to be Decertified at End of Year 2417: 1 TIF District 38 Parcels $721,200 $13,674 35.7370% $4,887 Notes: 1 After TIF District 38 is decertied at the end of 2017, the next district decertification is not projected until the end of 2022_ Z Based on Pay 2015. 3 Pursuant to Minnesota Statute 469.091 (H RA levy) and 469.107 (EDA Levy). 4 Based on Pay 2015 as provided by Wright County on 3/20/2015. 3/24/2015 NORTHLAND 0 SECURITIES x td y i Maximum Total City Total Taxable Market Maximum EDA Maximum EDA Maximum HRA Maximum HRA EDA/HRA Value Pay 4 Tax Rate Tax Levy Tax Rate Tax Levy Tax Levy Calculation of Maximum Total EDA /HRA Tax Levy: All Taxable Parcels within the City of Monticello $1,513,570,400 0.41813% 274,410 0.0185% $280,011 $554,421 Estimated City Taxes Payable Estimated from Parcels Taxable Market Estimated Tax within TIF Value Z Capacity City Tax Rate Z Districts Z Calculation of Estimated City Taxes Payable from Parcels within TIF Districts: TIF Districts to be Decertified at End of Year 2025. TIF District 36 Parcels $3,201,000 $63,270 35.7374% $22,611 TIF District 37 Parcels $1,355,144 $26,352 35.7374% $9,417 TOTAL $4,556,100 $89,622 35.7370% $32,028 TIF District to be Decertified at End of Year 2417: 1 TIF District 38 Parcels $721,200 $13,674 35.7370% $4,887 Notes: 1 After TIF District 38 is decertied at the end of 2017, the next district decertification is not projected until the end of 2022_ Z Based on Pay 2015. 3 Pursuant to Minnesota Statute 469.091 (H RA levy) and 469.107 (EDA Levy). 4 Based on Pay 2015 as provided by Wright County on 3/20/2015. 3/24/2015 NORTHLAND 0 SECURITIES x td y i EDA Agenda: 07/07/15 10. Economic Development Director's Report (JO /AS) Economic Development Position A draft job description has been prepared for the position. The draft description has been forwarded to Commissioners Hilgart and Davidson for review. The City Personnel Committee will also review the position in July for feedback. A formal recommendation on the position for 2016 budgeting purposes will be requested at the August EDA meeting. The position description can continue to be fine -tuned after that point. Property for Sale Update To -date, staff has received two inquiries related to the 349 W. Broadway site (Fred's Auto) site. Both of these related to potential auto repair uses. The EDA should be aware that auto repair uses are not currently allowed in the Central Community District. A listing of allowable uses from the zoning ordinance is provided for reference, as is the applicable concept information from the Embracing Downtown Plan. Staff would welcome feedback from the EDA on other preferred uses. There has been one inquiry related to the residential property at 4th Street. Staff have conveyed the current County market value as the starting price for negotiation, as well as the required terms for purchase and development agreement for a single - family home product. The EDA's attorney has indicated that the required right of reverter provisions for sale of EDA property requires that the intended use of the property must occur within one year of the sale. No inquiries have yet been made on the 201/249 East Broadway (garden center) site. Again, the EDA may refer to the included zoning ordinance and Embracing Downtown plan excerpts for reference on concept development and zoning. Hospitality Study Update HCG's representative was out of the office the first part of July. However, depending on how quickly information can be provided by hotel developers on development - related cost scenarios for the financial pro forma, it is expected that the report will be available in draft form in August. The project scope has been updated to reflect that timeline. Solar Energy Update 1. City Ordinance The Monticello Planning Commission will take up amendments to the Monticello Zoning at their July meeting. In their comments at the June meeting, the Planning Commission expressed support for accessory use solar energy systems, with two of the three current EDA Agenda: 07/07/15 Commissioners also supportive of an allowance for principal use solar under a PUD rezoning. Information on the proposed amendments can be found with the June Planning Commission agenda. 2. County Ordinance The Wright County Planning Commission has made a recommendation to the County Board to move forward on the proposed solar ordinance amendment. The County Board will be addressing the adoption on July 14th. A final copy of the recommended ordinance is being prepared by Wright County and will be available the week of July 6th 3. City Comment - Xcel Energy Comment and PUC Petition for Relief On June 25th, the Minnesota Public Utilities Commission approved a settlement between Xcel Energy, the state's largest utility, and a number of community solar garden developers which caps a solar project's size at 5 megawatts. Projects at 5 megawatts would come under local review under current statutes. Therefore, it is staff's understanding at this time that Monticello's zoning ordinances would apply to any Solar Rewards project proposed within the City. The Monticello Orderly Annexation board will need to determine whether to adopt the Wright County ordinances above for the MOAA area. 2 Landmark Areas: L -1 Public Parking Ramp L -2 River Oriented Shopping L -3 Cargill Site L-4 Community Center Site L -5 Riverfront Park L-6 Future Public Open Space L -7 Permanent Public Open Space L -8 Freeway Retail (B-4 Zoning Standards) Flex Areas: F -1 Shopping Area West of Hwy 25 F -2 Convenience and Services F -3 Transition Corridors: 1 Broadway Street 2 Walnut Street 3 Highway 25 / Pine Street Figure 22 — Design Guidelines Use Areas 53 Figure 20 illustrates Refined Scheme A as the recommended basis for the further definition of financial feasibility and implementation plans and phasing for redevelopment of downtown Monticello. The framework of land use districts, areas for maintaining existing development, areas for promoting redevelopment, approaches to transportation corridors, and improvements to preserve and enhance the downtown image are represented in Refined Scheme A. These elements will become the basis for policies and guidelines to direct future development and redevelopment in the CCD. i I Fl.'K1G Ph2KT 6� 'r two lal7 -s - -1� 9sl��l- 2L r WvEC slle 't• w. jjj qK, g20Pli x)A4 5�-- i��Cyy��IFT�lI IL JIJ!.I.I��II U I• �® O-A" �d 4x41= � Io 4 7r ST--ET w. �A VSxILL 'siE�ItKM �l 1 �° PM ` c Figure 20 — Refined Scheme A FM+uM12s �--I - -.Ph n IL1I // ji V�LAI� FtALA r � - -1r RiUCIZ SiRtEr � u � I wW�./8N I 161 li M1 s- � yio C6 l� 3a ¢ U 14 �� axroT. 2 ILK IoF > 1b 0.(i it g,gi j BpN1� 3 � 4 Wain HrL.w 11a /.EVe� Q L� 3 9 itr 1��4 9K � I�RW2Y O tt I S i 14 B 7K n I t Ia -- t3 B � III i5 � Ea 2oK •C n 1 9 -- LI ®4 I2K � i 9 -� p �huEZ 4lN 5'ea ti F Table 8 on the following page summarizes the potential redevelopment square footage illustrated for the CCD north of 5t" Street, and identifies the block by block change from the existing condition. 44 Chapter 3 - Downtown Framework Plan and Design Guidelines Framework for Downtown Development The alternative downtown redevelopment concepts, including the preferred alternative illustrated in Refined Scheme A (Figure 20) represent and illustrate possibilities for ways that market demand that exists in the Monticello Trade Area can fit within the northern half of the CCD where the greatest potential for redevelopment exists. The plans show specific uses and parking relationships that may, or may not accurately depict how opportunities are captured over time within the CCD. w u blic Public '` w PuPublicP Public However , what is specific about the Parking w y preferred alternative is the general w W IYe` t�} convenience organization of uses, and the location u Oden ted Z o hoppin services of types of uses within the CCD. Figure J J aROaoavAVSTREET 21, the Redevelopment Framework o Plan, illustrates the recommended use W v z districts consistent with the Shopping _ z preferences illustrated in Refined Scheme A. Public - a 4TH STREET Parking ° , j Proposed use areas, or districts, in the Cargill o ° Framework Plan are based on access, �+s location within the CCD, and o �tstall� civic 111-0 W surrounding land use relationships. The Framework Plan represents the 6TH STREET a w Civic a Z Q flexibility needed to capture all p IViC d � ° Public potential development and WALNUT Ex Re[ai! "� O' T�� STtZ�E� redevelopment opportunities for the STREET o CCD. As opportunities present o Ex. Retail themselves and are evaluated, Existing Retail vr��. locations for uses should fit the y., purpose and capabilities of the districts illustrated in the Framework Plan. The -94 use districts are defined in greater detail as part of the proposed Design Figure 21— Framework Plan Guidelines for the CCD. Structure for Design Guidelines The Design Guidelines are intended to correspond to the limits of the CCD Zoning District, and to establish development controls within the CCD. With the forthcoming modifications to the Monticello Zoning Code, the development standards for the CCD District will be revised to refer to the CCD Design Guidelines as the controlling legislation for land use, site development standards, and building design 51 CHAPTERS: USE STANDARDS Section 5.1 Use Table Subsection (A) Explanation of Use Table Structure TABLE 5- 1: USES BY DISTRICT (cont.) COMMUNITY Use Types Use Types Base Zoning Districts Conditionally Additional Permitted • "I" = Interim Permitted . Industrial Uses Additional Requirements F-1 "I" = Interim Permitted Commercial Day Care C Auto Repair — Major F-3 C L C none I 5.2(F(I I� Commercial Lodging P P C none C Commercial Offices — Principal C P P P 5.2(G)(1) Bulk Fuel Sales and CUP upper floors Commercial Recreation: Indoor P P C C none P P Storage C C none 5.20(13). Outdoor Convenience Retail C P* C C 5.2(Gl(21 Contractor's Yard, Funeral Services C C none 5.2(F 15� I I 5.2(G)(3) Temporary Extraction of Materials I I I 5.2(G1(41 General Warehousing C C P P 5.2(G)(5) Heavy Manufacturing C 5.2(G)(6) Industrial Services C P None Land Reclamation C C C C C C C C C C C C C C C 5.2(G)(7) Light Manufacturing P P P 5.2(G)(8) Machinery /Truck Repair P P & Sales 5.2(G)(9) Recycling and Salvage C C Center 5.2(G (10� Self- Storage Facilities P C P 5.2(G (1 1 Truck or Freight Terminal C P P 5.2(G(1 2� Waste Disposal & C Incineration 5.2(G 13� Wrecker Services C P 5.2(G 14� TABLE 5- 1 A: CENTRAL COMMUNITY Use Types Sub-Districts "P" = Permitted Conditionally . Exceptions Additional Requirements F-1 "I" = Interim Permitted Commercial Day Care C F-2 C F-3 C L C none I 5.2(F(I I� Commercial Lodging P P C none 5.2(F)(7) Commercial Offices — Principal C P P C L -2: NA first floor, 5.2(F) (1 9) CUP upper floors Commercial Recreation: Indoor P P C C none 5.2(F(12� Commercial Recreation: C C none 5.20(13). Outdoor Convenience Retail C P* C C *F -2 Drive Through by CUP 5.2(F)(9) Funeral Services C C none 5.2(F 15� City of Monticello Zoning Ordinance Page 3 19 CHAPTERS: USE STANDARDS Section 5.1 Use Table Subsection (A) Explanation of Use Table Structure TABLE 5- 1 A: CENTRAL COMMUNITY Use Types "P" = Permitted Conditionally . "I" Interim Permitted Medical / Clinical Services F-1 C Sub-Districts F-2 P F-3 P L P Exceptions L -2: NA first floor, CUP upper floors Additional Requirements 5 2(F)( 8) Personal Services P P P P L -3: CUP 5.20(21 Places of Public Assembly C C C C none 5.20(22 Professional Office - Services Including Financial Institutions P P P C L -2: NA first floor, CUP upper floors 5.20(14) 5.20(20 Restaurants, Bars < 10,000 SF P P C C none 5.20(25 Restaurants, Bars > 10,000 SF P C C none 5.20(25 Retail Sales < 10,000 SF P P C C none 5.20(26 Retail Sales > 10,000 SF P C C none 5.20(26 Retail with Service P C C L -2: NA first floor, CUP upper floors 5.2(F)(26) Specialty Eating Establishments < 109000 SF P* P* C* P* *Drive Through by CUP 5.20(27) Vehicle Fuel Sales C C C 5.20(28 Veterinary Facilities C P C C none 5.20(30) Residential — Upper Floors P P P P L -2: NA Residential — Street Level C C L -2: NA Residential — Multiple Family C C L -2: NA Residential — Townhouse C none Residential — Single Family C none Industrial PUD L -3: PUD Only Public Buildings or Uses C C C P none Page 320 City of Monticello Zoning Ordinance