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EDA Agenda 06-21-2017 (Special Meeting) AGENDA SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 21st, 2017 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Steve Johnson, Tracy Hinz, Jon Morphew and Councilmembers Jim Davidson and Lloyd Hilgart Staff: Executive Director Jim Thares, Jeff O’Neill, Angela Schumann, Wayne Oberg and Jacob Thunander 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda N/A Regular Business 5. Consideration of Adopting Downtown Small Area Study Plan 6. Consideration of GMEF Loan Guidelines Options 7. Consideration of Appointing EDA Member to Ellison Property Evaluation Sub- Committee 8. Adjourn EDA Agenda: 6/21/17 5. Consideration to recommend adoption of the Downtown Small Area Study (AS/JT) A. REFERENCE AND BACKGROUND: The Downtown Small Area Plan has been evolving over the last five (5) months with significant public engagement through the work of numerous steering committee meetings, public hearings and public comment cards. Staffs role was focused on coordinating meetings and review of draft documents for presentation meetings. The Plan was recently presented in draft form to a joint workshop of the EDA, City Council, Planning Commission and Parks Commission. At this time, staff is asking the EDA to consider formal acceptance of the Plan as a work product of the EDA’s contract with Cuningham Group and to provide a recommendation on the adoption of the Plan to the City Council. Andrew Dresdner, Cuningham Group, will be in attendance at the meeting to present the plan in summary format to the EDA. Following that the EDA will be asked to consider adoption of the Plan. The Plan includes three components, which would become appendix documents to the Comprehensive Plan, similar to the Embracing Downtown Plan. The components include the Plan document, a Market Context and a Retail Vitality Study. The remainder of the expected Downtown Small Area Plan review schedule is as follows:  Planning Commission Public Hearing and Review – July 11, 2017  Plan Implementation Workshop – July (exact date to be determined)  City Council Review and Consideration – July 24, 2017 A1. Staff Impact: City staff have put many hours into the effort to create a revised Small Area Study/Plan for the Downtown. The work began last fall (2016) and continued through the winter of 2017 and into the spring (May and June). Staff have worked diligently to guide the consultants, answer questions and provide background information and documents in support of their efforts. There have been a considerable number of meetings attended by various committee members along with staff. No additional staff is required to complete the Plan at this point. This type of collaboration and review of consultant work/tasks is part of the normal duties of staff involved in oversight of materials and work products performed by contractors. A2. Budget Impact: The contracted amount for completing the Small Area Study Plan is $50,000. This amount is included in the 2017 EDA budget under Miscellaneous Professional Services. The plan preparation and all deliverables and meeting coverage has been performed in line with the approved contract with Cuningham Group and Tangible Consulting. 2 B. ALTERNATIVE ACTIONS: 1. Motion to accept the work product of the Downtown Small Area Study and recommend the Adoption of the Plan to the City Council as presented. 2. Motion to accept the work product of the Downtown Small Area Study and recommend Adoption of the Plan to the City Council with modifications identified by the EDA. 3. Motion to table consideration of Adoption of the Plan for more research/community feedback. 4. Motion of other. C. STAFF RECOMMENDATION: Staff recommends that the EDA accept the work product for the Downtown Small Area Plan. The consultant has provided the required service outlined by the Contract. Staff further recommends that the EDA recommend adoption of the Plan if it feels that it meets the vision and goals for a successful framework supporting the redevelopment and repositioning of the downtown core area. The Plan provides a vision and implementation strategy for Downtown which includes both public and private investments scalable in small, medium and large projects, and which can be accomplished in increments over time. It also reinforces the vision for additional housing in the downtown core and provides a framework for dense retail, entertainment and personal service uses. The Plan contains strategies to enhance the core as a vibrant, walkable district with a continued mix of commercial and service businesses as well as reinforcing the vision for additional housing in the downtown core. It also suggests enhanced parks, public space, pathway and signage improvements for ease of wayfinding. The Plan also recommends zoning and design guideline changes along with signage and park improvements as initial implementation action items. The Plan supports building on existing assets through reinvestment while distinguishing itself from the previous Embracing Downtown Plan (2010) which sought to create a more suburban style, automobile dependent development pattern in the core area. . D. SUPPORTING DATA: A. Draft Downtown Small Area Plan, including 1. Plan Document 2. Market Context 3. Retail Vitality 4. William Gorton, Keller Williams Commercial Midwest comments Prepared for: The City of MonticelloPrepared by:Cuningham Group Architecture, Inc.City of Monticello Small Area PlanMonticello, MNDraft Report as of June 14, 2017 Prepared for: The City of MonticelloPrepared by:Cuningham Group Architecture, Inc. AcknowledgementsConsultant TeamTable of ContentsExecutive Summary 3Background and Purpose 1Character Areas 2Frameworks 3Background 7Demographics 5Market and Development Context 6 Retail Vitality 8Physical Analysis 9 Public Process 10Goals and Objectives 12Project Goals 12Character Areas 14 Character Areas: Purpose 14 Character Areas: Riverfront 15 Character Areas: Broadway 1 6 Character Areas: Walnut and Cedar Street 18Character Areas: Pine Street 20Block 52 an 34 Block 34 23 Block 52 24Frameworks 22Frameworks: Purpose 26Frameworks: Land Use and Development 27Frameworks: Circulation and Access 28Frameworks: Parks and Open Spaces 29Implementation 22Implementation 31City CouncilBrian Stumpf, Mayor Jim DavidsonBill FairCharlotte Gabler Lloyd HilgartCuningham GroupTangible consulting ServicesEconomic Development AuthorityBill Demeules, PresidentBill Tapper, Vice PresidentSteve Johnson, TreasurerJim Davidson, Council RepresentativeLloyd Hilgart, Council RepresentativeTracy HinzJon MorphewPlanning CommissionBrad Fyle, ChairJohn AlstadSam Murdoff Marc SimpsonLucas WynneCharlotte Gabler, Council LiaisonParks CommissionJack GregorNancy McCaff rey (Vice Chair)Larry Nolan (Chair)Tim StalpesBrian StollBill Fair, Council LiaisonSteering CommitteeCharlotte GablerJim DavidsonTracy HinzSteve JohnsonMarc SimpsonDon RobertsLarry NolanMarcy AndersonTom Turner John and Lucy Murray Executive Summary 1 4. Become a River Town1. Improve Pine Street for All Users 3. Encourage Small and Medium Scaled Investments2. Shift the Center of Town to Walnut and Broadway Background and Purpose GoalsTh e purpose of this Plan is to attract and direct investments on the core blocks of Downtown Monticello, MN over the next 10 years. Th e Plan advocates for solidifying Downtown as the heart of the community with a series of coordinated public and private investments. Together, these investments will create a human-scaled environment that encourages gathering, socializing, visiting and enjoying on a daily basis - throughout the year. Th e improvements outlined in this Plan aim to build on the unique qualities of Monticello to make the Downtown yet more attractive to those who have chosen to live and do business in the community. Specifi cally, the Plan seeks to promote Broadway Street as a storefront district with restaurants and specialty retail, celebrate the River for its recreational, connective and economic qualities, reinvigorate a downtown housing market with multiple, appropriately scaled, infi ll projects, and improve the experience of Pine Street for all users.Th e plan is ambitious, but achievable. Over time and upon completion, the plan would usher in up to 500 new units of downtown housing, new restaurants overlooking the river, and unique retail and services on Broadway. Momentum can be established in the next few years. Primary projects to be completed within fi ve years include : redevelopment of Block 52, Walnut Street connection to River Street and infi ll housing on Walnut Street. Implementation of this Plan will create two legacies. Th e fi rst will be a revitalized Downtown with an economy and attractions that benefi t all residents of Monticello. Equally important, however to the physical improvements described above will be the legacy of new partnerships and civic cooperation that are essential to and will result from coordinated actions. Th e ideas set forth in this Plan come from the vested interest of the Monticello community through a broad public outreach eff ort. Th e realization of these ideas rely on a coordinated, cooperative, and active public sector working in tandem with an entrepreneurial private sector Th e result will be a lively Downtown for all in Monticello, a place that embodies both its history and future aspirations. Pine StreetWalnut StBroadwayCity of Monticello Small Area Plan | Character Areas 2 Character AreasCharacter Area: Pine Street (TH 25) Th e community will reclaim Pine Street by maintaining it’s width and adding pedestrian amenities and local serving commercial uses. SImilar to the Embracing Downtown Plan, he Plan divides the study area into four diff erent character Areas. Th e purpose of this is to create sub-areas in downtown, each with its own identity and purpose and direction. Th e character areas are developed based on their context and their future role in the downtown. Typically each character area is a mix of uses, but also has a dominant use. Character Area: BroadwayMonticello’s Main Street will transition over time from a street with primarily services, to one with unique retail and restaurants. Character Area: RiverfrontA redesigned Park with an amphitheater and better relationship to Downtown will help connect the River to DowntownCharacter Area: Walnut Street and Cedar Street Walnut and Cedar Streets will fi ll in with new housing (2-4 stories) that adds to the market strength of downtown and provides additional housing choices for new and existing residents of Monticello. Th eir intersections with Broadway will be improved to make it easier to walk to the Riverfront DAC)it’ idthABCDBIllustrative Master PlanTh e Plan above describes long term build out of the core blocks of Downtown Monticello. Downtown Monticello is and shall remain the heart of the community. It is the birthplace of the City and the focus of civic activity. Th is Plan builds off those foundational qualities with a clear vision for the future of the core blocks of Downtown. Th e vision includes a commitment to retaining Broadway as Monticello’s Main Street, improving connections to and relationship with the River, and creating new downtown housing opportunities along Walnut and Cedar Avenues for existing and new Monticello residents. Th e Plan envisions a Downtown that is lively throughout the day and into the evening, 12 months of the year. A downtown that serves many purposes for many people – including dining, recreation, celebrating, gathering, shopping and living.Downtown is For EveryoneCity of Monticello Small Area Plan | Character AreasWalnut StCedar StBroadway3rd StreetPine StreetRiver Street4th Street Existing BuildingsNew Buildings 3 FrameworksFramework: Open Space and Parks• Improve Riverfront Parks to accommodate more programming and events• Redesign Walnut Street and River Street to allow for park expansion and events• Convert vacant lots on Broadway to small pocket parks• Utilize River islands for additional natural park space• Create pedestrian refuges or enhanced building entry ways on the corners of blocks along Pine Street• Enliven open spaces with public art wherever possible Framework: Access and Circulation• Emphasize connectivity throughout the Core, with pedestrian and bike friendly streets, a complete sidewalk system, and connectivity to the in-town neighborhoods. • Promote a “complete streets” policy that balances the needs of all users in the Downtown.• Manage and improve the grid system to support connectivity and access throughout Downtown • Work with MnDOT to improve Pine Street for users of Downtown Monticello, including additional signals, maintaining the River Street signal and supporting an additional river crossing• Improve pedestrian crossings of Broadway at Walnut and Cedar to improve access to the Riverfront• Reconnect Walnut Street with River StreetFramework: Development and Land Use• Riverfront District with destination restaurant and entertainment uses, as well as housing• Broadway District with shopfront retail and restaurant uses beneath housing and offi ces• In-town neighborhoods extend to Walnut and Cedar Street with new infi ll housing 2-4 stories (apartments and townhouses)Land Use, Open Space and Transportation are the three frameworks that organize and defi ne the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, they all fail. Th is is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. Th e Plan is also divided into frameworks in order to allow diff erent agencies, departments, and investors act in concert with each other. Th is will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. How is This Plan Related to the Embracing Downtown Plan and the Comprehensive Plan? In 2010, the City of Monticello completed the “Embracing Downtown Plan”. Th e full area considered to be “Downtown Monticello”extends from Interstate I-94 to the Mississippi River, and generally from Cedar Street to Maple Street. Th e Embracing Downtown Plan was adopted as an appendix to the Comprehensive Plan. Changes in the retail marketplace overall, and more specifi cally market changes and reinvestments in downtown Monticello, have created a need to develop a new planning perspective for the core blocks of the downtown.Th is document therefore is as an update to the 2008 Monticello Comprehensive Plan and to the Embracing Downtown Plan for the core blocks of Downtown. Immediate Next Steps and Implementation1. Improve the physical environment with streetscape, benches, programming, and art. 2. Bolster Broadway with a facade improvement program and retail recruitment.3. Aggressively market development opportunities such as Block 52 and infi ll housing on Walnut and Cedar Street4. Enact the appropriate policies, programs and incentives that enable the type of development described in the Plan. Open Space and ParksAccess and CirculationDevelopment and land UseCity of Monticello Small Area Plan | Character Areas Background 5City of Monticello Small Area Plan | Character Areas DemographicsDemographicsIntroduction Monticello is a center of growth, and a local service center, for the surrounding areas. In recent years, Monticello’s growth has largely come in the form of single family homes and apartment development at the edges of the City, and in surrounding areas, as well as retail development oriented to Interstate 94. Th is is true even though developable land exists in the heart of the downtown area.Downtown Monticello off ers a distinctive environment for housing and retail development. Th e beautiful Mississippi River, with public parks along its banks, serves as the northern border of downtown. Th e River is only two blocks from the storefront district along Broadway Street, the historic center of town.Downtown is compact. Th e interstate highway is only 6 blocks to the south of Broadway Street, with a Cub Foods and other stores alongside it. Th e City’s marquee public facilities—its community center and library—are only three to four blocks south of Broadway Street. Th is is an Population Growth (2000-2015)St. MichaelSauk RapidsBuff aloOtsegoElk RiverWright County40%80%120%MonticelloMinnesotaMedian Household IncomeSt. MichaelSauk RapidsBuff aloOtsegoElk RiverWright County$60,000$40,000$20,000$80,000$100,000MonticelloMinnesotaPopulation Growth: Monticello has experienced signifi cant growth over the past years, attracting new households even through the course of the recent economic recession. Median Household Income:According to the US Census Bureau, the median household income in Monticello is $70,254. Th is is above the state average, whose median income is $61,492.Housing CharacteristicsMonticello has a more diverse range of housing options then many comparison cities. Just 54% of Monticello’s housing units are single-family homes. It off ers more townhomes, apartments, and mobile homes than other cities in Wright County. Nevertheless, there is a culture of homeownership. Around 70% of Monticello households own their home—a high rate considering the diversity of housing types. Homes are on the modest side, with an average value of about $160,000—a result which is infl uenced by the greater than average number of owner-occupied mobile homes and townhomes in Monticello. Housing Unit by TenureSt. MichaelSauk RapidsBuff aloOtsegoElk RiverWright County60%40%20%80%100%MonticelloMinnesotaHousing Unit by TypeSt. MichaelSauk RapidsBuff aloOtsegoElk RiverWright County60%40%20%80%100%MonticelloMinnesotamobile home and otherapartment (> 10 units)apartment (< 10 units)townhouse/condominiumsingle family homeTh e information on this page is summarized from the companion documents - Demographics and Market Context and Retail Vitality Study conducted by Tangible Consulting Services. Th is report and can be downloaded on-line at ___________. 4,2861,1655,294Employment and Commuting Due to Monticello’s location relative to the larger cities of St. Cloud and the Twin Cities, it’s not surprising that many residents of Monticello work outside the city. Of the 6,459 employed residents of Monticello, 82% work outside of Monticello.Monticello is not just a bedroom community though. It off ers roughly 5,400 jobs, and provides employment to around 4,300 people who live outside the city. Major employers include Xcel Energy and Cargill.unusually strong collection of attractive off erings within the walkable center of a small city.Downtown Monticello also has conditions that serve as deterrents to new development. Th e width of Pine Street, and the traffi c it carries, serve to bisect the downtown into east and west downtown neighborhoods. Most Broadway Street buildings are occupied, but many of the buildings are business offi ces rather than stores or restaurants that serve walk-up customers. And some buildings and storefronts are in visible need of improvements. Parts of downtown are dominated by large surface parking lots, which give a sense of emptiness, and convey a lack of energy and activity.On balance, downtown Monticello has great promise for attracting development, and revitalizing its storefront retail, in ways that will build on its historic role as the heart of the City. 6City of Monticello Small Area Plan | Character Areas Market and Development ContextResidential Market ContextAverage Multifamily Rent (psf)Vacancy Rate Multifamily Units2012 2013 2014 2015 2016$.90$1.00$1.102012 2013 2014 2015 20164%5%6%7%Residential MarketTh e housing market context matters for the prospects of attracting new housing to Monticello’s downtown. Similar to the housing market in the US at large, apartment rents have been rising in Monticello over the past fi ve years, and the vacancy rate has declined—both of which are indicators of demand. However, average rents in early 2016, in existing apartment buildings tracked by Costar, were only around $1.00 per square foot. Rents of around $2.00 or more per square foot are needed to support new construction, in the absence of public subsidy. Th is high demand, low rent, scenario is common in small cities. It raises the question whether new housing will be able to achieve the rents it needs to support construction costs. In Monticello, this question has been partly answered by the development of Monticello Crossings, in the southeastern part of the City. Monticello Crossings is a market rate apartment development of 210 dwelling units, which has been built in two or three phases. Th e developer’s expectations have been met by the development, in terms of meeting its rent and absorption targets. Tenants value the newer apartment product, which is not available elsewhere in Monticello, and have been willing to pay rents that are signifi cantly higher than the rents in the existing older apartment buildings. Th e success of this development is an indicator that new apartment development in Market and Development Context1964 - 19801981-19901991-20002001-2017Apartment ConstructionA map of multifamily apartment buildings by age shows that many existing apartment buildings were built in the 1980s. Monticello Crossings is the only development that has occurred in the decade of the 2010s.Th e information on this page is summarized from the companion documents - Demographics and Market Context and Retail Vitality Study conducted by Tangible Consulting Services. Th is report and can be downloaded on-line at ___________. Th e information on this page is summarized from the companion documents - Demographics and Market Context and Retail Vitality Study conducted by Tangible Consulting Services. Th is report and can be downloaded on-line at ___________. downtown Monticello may also fi nd a market—although the higher costs and risks associated with building downtown would probably mean that public fi nancial support would be needed.Certain developers focus on new housing development in small city downtowns. We interviewed three such developers (along with two others with a diff erent professional focus, but who have a deeper familiarity with Monticello), and they affi rmed that downtown Monticello has many of the characteristics that they would look for in locating a new development. (please refer to Th e natural amenity of the river, and the Broadway Street storefront district, are particularly attractive features. Th ey expressed skepticism about doing mixed use developments, with housing over retail, except in the strongest areas. Th ey said they would look for a strong public partner—to participate fi nancially in the project, and to support the density that would be required to make the project work. 7City of Monticello Small Area Plan | Character AreasRetail Market ContextTh e retail context is important for addressing key questions related to the ongoing viability of the Broadway Street storefront district, and how much additional retail development downtown would be supported.Retail vacancies over the past fi ve years have been declining, which is a general indicator of market strength. However, average retail rents have been more or less holding steady, and there has not been a lot of new construction in recent years.National retail trends are concerning. Store closures, and struggling malls, are a frequent focus of news stories. Internet shopping is taking market share from bricks and mortar retail stores. However, in the long run the population of Monticello and surrounding areas have a lot of room to grow. Th at should more than off set national retail trends, and it should support a modestly expanded footprint of retail stores in downtown Monticello.Th e retail context map illustrates the competitive landscape for Monticello retail. It shows retail areas in neighboring cities, by the scale of retail property. Note that storefront districts such as Broadway Street attract customers by off ering a diff erent type of shopping environment than newer malls. Pedestrian oriented storefront districts, similar to the Broadway Street storefront district, are also noted on the retail context map.Th is research supports an expectation that the property frontage along Pine Street will continue to attract retail store development, over time, as property is ready for development or redevelopment. It also suggests that there is an adequate customer base to support the storefront district along Broadway Street, and that the storefront district could be expanded modestly. However, a large expansion of the storefront district would not be advisable. Retail vibrancy strategies, if pursued assertively and creatively, could greatly improve the condition and success of the storefront district. Market and Development ContextINCLUDE RETAIL CONTEXT MAPAverage Retail Rent (psf)Retail Vacancy Rate2012 2013 2014 2015 2016$8$10$16$12$142012 2013 2014 2015 20162%4%6%10%8%Th e information on this page is summarized from the companion documents - Demographics and Market Context and Retail Vitality Study conducted by Tangible Consulting Services. Th is report and can be downloaded on-line at ___________. Retail Context 8City of Monticello Small Area Plan | Character AreasRetail VitalityNational Retail Trends and Context Th e retail landscape is changing rapidly. As lives get busier, people do more shopping online, and when they actually go out to shop people want an experience – it’s about more than just purchasing a product. Th is sentiment was refl ected throughout many public comments. However traditional, storefront-style retail areas still have something to off er. Th e small spaces they off er are ideal for local businesses and start-ups. Th ey off er a place for businesses that can’t aff ord the rents in newer retail developments, or can’t fi ll the large spaces in auto-oriented strip areas. Stores and restaurants can be social places where customers interact with others. People want to go out to businesses where they see people enjoying themselves, and where they can run into friends and neighbors, while drinking, dining, working out, or purchasing daily items close to home.Th e opportunity for downtown Monticello is to provide people with an experience. A future downtown Monticello may provide a place where many more people are shopping, eating, sitting by the Mississippi River, walking, biking and socializing. In the context of this new national retail reality, downtown Monticello has the bones to be a destination retail area.Retail Vitality Assessment and StrategiesAn assessment of Broadway Street retail conditions was conducted as part of this plan. Selected fi ndings and strategies from that assessment are presented here. Much more detail can be found in the Retail Vitality Background Report, found in the appendix of this plan.Storefront Density. Storefront density is a key metric, because streets that are walkable have numerous shopping and dining choices within a small area. Monticello is fortunate to have a high density of storefronts, compared with retail districts in peer cities.Strategy recommendation. • Establish development guidelines that ensure small store density is built into any new development in the storefront district.Store mixAn assessment of store types shows that too many Business Mix in Storefront DistrictBuff alo (Division / 1st Ave) Madison, WI (State Street) Elk River Main Street)Monticello ( Broadway) 60%40%20%80%100%Monticello (Study Area)Businesses per 500 lineal feetBuff alo (Division / 1st Ave) Madison, WI (State Street) Elk River Main Street)Monticello ( Broadway) 8641012Monticello (Study Area)20Business Mix in Storefront DistrictBuff alo (Division / 1st Ave) Madison, WI (State Street) Elk River Main Street)Monticello ( Broadway)60%40%20%80%100%Monticello (Study Area)Businesses per 500 lineal feetBuff alo (Division / 1st Ave) Madison, WI (State Street) Elk River Main Street)Monticello ( Broadway)8641012Monticello (Study Area)20Business DensityBusiness density is the concentration of businesses in an area. When businesses are concentrated it is easier to walk among them and to visit several during one trip. Higher density of businesses also creates a vibrant environment that can feel busy and active with signs, storefront displays and outdoor seating. Noon - contributingNon retail destinationfood and beverageneighborhood goods and servicesgeneral merchandise, apparel and accessoriesstorefronts are rented by businesses that don’t contribute to the vibrancy of the area because they don’t have much walk-up traffi c. Th ere is also a real lack of food and beverage businesses, which serve as important anchors in many comparison areas.Strategy recommendation. • Initiate a retail recruitment program for the district, which would identify and attract key retail stores and food/beverage businesses, that will be complementary to the existing stores.WalkabilityBroadway Street is highly walkable. Th e buildings extend to the sidewalk and have few gaps between them. Th e streetscaping is a bit dated, but it off ers pedestrian scale lighting and pedestrian refuges. Many of the buildings have large windows that front the street, which draw one’s eyes into the store and enhance the ease of walking by. Th e greatest challenge to Broadway Street’s walkability is the automobile traffi c which serves as a barrier to circulating comfortably through the district.Strategy recommendations. • Add stop signs and crosswalks at Broadway and Walnut. Evaluate and improve the Pine Street crossing from a pedestrian perspective.Building ConditionsBuilding conditions in downtown Monticello vary greatly. Deferred maintenance is evident. Building renovation is expensive, even if it will usually be more cost eff ective than wholesale redevelopment. In buildings that are occupied and cash-fl owing, it can be diffi cult to justify tackling these improvements on a strictly market basis. Some outside fi nancial incentives will probably also be needed to advance this goal. In the short run, some public support for improving facades may off er the most bang for the buck.Strategy recommendation. • Establish a façade improvement program that off ers fi nancial support for investments that improve the visual appearance of buildings and district identity.Visual IdentityMany successful retail streets have recognizable visual themes that make them memorable and vivid. Th e buildings in downtown Monticello vary greatly in style, size and condition. Treatments of windows, signage and displays varies greatly as well. Patterns that establish a sense of identity are lacking.Strategy recommendation• Businesses on Broadway Street could agree to use signage improvements as an initial vehicle for improving the perceived condition of the district, and presenting some common visual elements (color, pattern, shape, creativity, etc) that build a sense of identity.Marketing and ActivationTh e Broadway Street district can be animated via marketing, events, and the activation of public spaces. Promotion programs are most successful when there is committed ownership by the business community. Th ey can have endless forms and variations, limited only by the creativity of those involved. Th e physical environment can also be animated by sidewalk merchandise displays, sidewalk seating, and the creation of public space and outdoor seating between buildingsStrategy recommendations • Organize building and business owner interest, within an existing organization or a new one, to pursue a coordinated and creative retail vibrancy program on Broadway Street. Activate sidewalks and new plaza areas as much as possible—so that the vibrancy of the area is visible to passersby. 9City of Monticello Small Area Plan | Character Areas Physical AnalysisSaint CloudMinneapolisMonticelloOriginal Plat of MonticelloTh e original plat of Monticello consisted of a square (330’x 330’) aligned to the river. Generally the 66’ lots faced north and south. Broadway was distinguished from other streets with a narrower lot dimension - accommodating mercantile and main street buildings. Monticello in the RegionMonticello (“little hill”) sits on the Mississippi River between Saint Cloud and Minneapolis. It was settled at this location because the river is relatively shallow and calm and it made for an easy river crossing. Its connection to the region changed dramatically when I-94 was completed in ____ . With two exits and an improved bridge across the Mississippi River, Monticello has become a crossroads community. Existing Conditions (publicly owned properties in red)Existing Conditions: Buildings by useCommunity and PublicHousingCommercialEmploymentBlock 52Block 52Block 51Block 51Block 52Block 52Block 36Block 36Block 35Block 35Block 31Block 31Block 32Block 32Block33Block33Block 34Block 34Pine StreetWalnut StreetPine StreetCedar StreetLocal RoadsTh e local road network resembles the original plan of the City - with square blocks and a dense network of streets. Over time, the integrity of the grid has been slightly eroded with superblocks and street closings that respond to high volume arterials. Regional RoadsOver time, Pine Street and Broadway have become regional roads. Th e growth of these roads have connected the City to the Region, but they have also had major impacts on local connectivity and land use. Pedestrian EnvironmentTh e pedestrian experience at street level is a key determinant to creating a successful Downtown. Th e diagram above indicates the quality of the environment along each block face from poor to excellent. Th ere are many factors that make up the overall experience including the condition of the sidewalk, traffi c alongside the sidewalk, and the level of activity or comfort the adjacent property provides for the pedestrian. ComfortablePoorOK 10 Public ProcessCity of Monticello Small Area Plan | Character AreasStrengthsDuring the public process participants were asked to place green dots on the areas of Downtown that they deemed were the “strongest” or the most beloved. Th is included: »Th e Community Center and Library »Broadway »Th e Riverfront ParksWeaknessesDuring the public process participants were asked to place red dots on the areas of Downtown that they deemed were the “weakest.” Th is included: »Th e Pine Street Broadway intersection »Th e appearance of Downtown upon arriving from the north. »Vacant lots and large parking areas. »Appearance of blighted buildings and disinvestment on Broadway east of Pine Street. Th e Planning process included a focused public engagement process consisting of a Steering committee, open meetings, and specifi c engagement activities. Th e Steering Committee was formed to review content of the Plan and to provide feedback. Th e Team met with Steering Committee 4 times between February and May; with the general public 3 times, with EDA 2 times and with the Parks Commission and planning Commission once. In addition the Team conducted focused public outreach activities at the Community Center and Library. A table was set up with do-it-yourself activities and surveys that residents could quickly partake in. Goals and Objectives 1212City of Monticello Small Area Plan | Goals and Objectives Project GoalsPine StreetWalnut StBroadway1. Shift the Center and Double Down on Broadway.Over time the travel and use patterns of Downtown have changed - altering the overall experience of downtown. Up until 1960, despite Broadway’s designation as a State highay (152) most travel was local and streets were relatively narrow and comfortable. However, as the region grew, Monticello became a crossroads - thereby burdening Broadway and Pine Street with high volumes of through traffi c and widened streets. Today, the Broadway / Pine Street intersection is one of the most traveled intersections in the region. Whereas that quality makes for great visibility, it also makes for a poor pedestrian experience and poor access to adjacent properties. Broadway, west of Pine Street, is relatively lightly traveled and unlike Broadwway east of Pine Street, it has retained its pedestrian scale. Furthermore, the City has developed successful parks at the end of Cedar Street and Walnut Street. Th erefore, an opportunity exists to fully extend Walnut and Cedar Street down to the park and grow the downtown mercantile district towards the riverfront along Broadway. 4. Engage and love the riverfront. Go beyond the Swan.Great places have unique assets that diff erentiate them from others. Monticello has the Mississippi River. Th is defi ning feature can be further utilized to the benefi t of Monticello residents and businesses. A riverfront that is well connected with blue and green trails, is publicly accessible and is activated throughout the day and the year can become a defi ning feature for the City and an important driver of economic activity. 3. Lots of Small Investments, a few medium ones and just one or two big ones.Monticello, despite it’s growth, is proud to be a small town. Small towns develop charm and character through a series of small incremental investments that together add up to help a place become memorable and beloved. Simple investments such as new awnings, improved lighting and well maintained landscaping can make a big impression. Small buildings that fi t on vacant parcels or otherwise underutilized land can happen quickly - adding vitality to a community. By promoting a high quantity of smaller investments, the Downtown will become more diverse, more lively, and more responsive and adaptable to changes in the market place. A few medium scaled investments, warranted by a strong market or a strategic need, are important and valuable. But they should be carefully scaled and implemented so as to not disrupt the fragile fabric of the small town. 2. mprove the Pine Street Experience for Everyone.Whether passing through Monticello along Pine Street (TH 25), trying to cross Pine Street by foot, or going to a business along Pine Street, the experience of using Pine Street is generally a negative one for all users. Th e environment of Pine Street projects a negative image and it is a divider between the east and west side of the town. Whereas Pine Street will always be a heavily travelled street, it does not need to be a negative experience. Th e community can take it back, claiming it for more appropriate development types, making it safer, more pleasant, and attractive for all users. Character Areas 14Character Areas: PurposeHow does the Plan Balance Flexibility with PredictabilityTh e Plan describes a Vision for Downtown as a lively place with pedestrian scaled spaces and building. Th e Plan favors human scaled spaces over vehicular scaled spaces; multiple small investments over single large investments and coordinated actions over individual directions. Th e Plan is based on time-tested approaches to town building and urban design as well as the strong sentiments received in the public process.Th is vision is described in words and illustrations throughout the document. Generally, the Character Area Section uses illustrative drawings to describe the feel and image of a place while the Frameworks section generally uses conceptual diagrams that convey broad ideas and concepts. Together, the Plan gives directions for how to arrange buildings, infrastructure and open space so the resulting ensemble is consistent with the Vision. Th e use of both illustrative, precise, and diagrammatic illustrations is intentional in an eff ort to create predictability and off er fl exibility. Th is is a long range plan that relies on a multitude of investors working in a coordinated manner. Th erefore the correct balance of predictability and fl exibility is important because a balance of predictability and fl exibility attracts investment while the lack of predictability and fl exibility repels investment. Adoption of this Plan by City Council is intended to be a strong statement of predictability because it sets in motion several public actions designed to implement the Vision of the Plan. So, while the Plan (in locations) is exact and precise, it recognizes that the end result may or may not look exactly like the illustrations because individual investors and developers will interpret the Plan slightly diff erent, each adding their own expertise and nuance to the Plan. Th is is encouraged because it will add richness and nuance to the end result.Th e Plan divides the study area into four diff erent Character Areas. Th e purpose of this is to create sub-areas in downtown, each with its own identity and purpose and direction. Th e character areas are developed based on their context and their future role in the downtown. Typically each character area is a mix of uses, but also has a dominant use. ABCDBroadwayPine StreetRiverfrontWalnut StreetDACBCity of Monticello Small Area Plan | Character Areas 15RiverfrontDespite being a town born on the River, the Downtown does not take great advantage of its unique location. Broadway is a block removed from the Riverfront and the main connection to the River, Walnut Street, ends in a staircase. Th e entry experience to Monticello from the north is mundane with vacant properties and a thick wall of trees that obscures potential views to public spaces and DowntownTh e Riverfront Character Area will become a proud new public gathering space for Downtown Monticello that compliments Broadway and the full Monticello Park System. Th e Plan recommends redesigning the riverfront parks so they are more visible, accessible, active and fl exible and promoting development that takes advantage of access to the river. A new park will be capable of handling larger crowds for events, and will be more accessible and usable on a daily basis with additional amenities and features designed for everyday use.Th e Plan promotes access to the riverfront by extending Walnut Street to connect to River Street. It will be designed as a multi-use street that can be closed for farmers markets, gatherings, and other events. Th e Plan recommends and leveraging public property of Block 52 to create a new signature development with market rate housing and a destination restaurant or brewery or entertainment useoverlooking the park and the river. Public parking is maintained on Block 52 and added to River Street. City of Monticello Small Area Plan | Character AreasSite Sections Th rough Block 52 and West Bridge Park Pine StWalnut StCedar StRiver StBroadway4th Street 3rd Street Perspective from Walnut street, looking across a redesigned West Bridge ParkCADDDWalnutRiver StAFCEBRedesign Riverfront parks to include more active events and programming in West Bridge Park (amphitheater, water feature, concessions) and passive uses in east bridge park.Add parking and sidewalks to River StreetReconnect Walnut Street to River Street with a design that allows Walnut Street to be used for events and park expansion.Work with the private sector to create a signature development on Block 52, with market rate housing and a restaurant that overlooks the ParkEncourage new housing surrounding the riverfront parks on vacant and underutilized parcelsMaintain and improve the intersection at River Street and Pine Street.Improve the underpass of Pine Street at the River.Consider a seasonal bridge to the island to provide additional recreational activity to east and west Bridge park FGCEABDDPrecedent Images existingRiver St Block 52 BroadwayBridge Park 16 BroadwayBroadway - west of Pine Street - has remained physically intact as Downtown’s primary storefront district. Broadway is relatively well-maintained and home to several services and community anchors such as the Cornerstone Cafe. However, with growth of retail along the highway and elsewhere in town, Broadway is no longer a competitive location for general retail. Th e Plan recommends re-positioning the center of Downtown from the Pine/Broadway intersection to the Broadway/Walnut intersection. Th is will be partially accomplished with intersection improvements that make it easier to cross Broadway at Walnut Street. Th is should include curb extensions, fewer through lanes, clearer crosswalks, blinkers and eventually as warranted four-way stop sign. Th ese improvements will increase the fl ow of pedestrian and bike traffi c to the river and in between stores on both sides of Broadway.Small pocket parks can be developed on vacant lots mid-block on Broadway. Th ese spaces can serve as convenient pedestrian connections between parking areas mid bloc and the sidewalks on Broadway. In addition, they can be small plazas with seating for resting, gathering, and even restaurants if the buildings next to them can be opened up to the pocket parks.New development along Broadway is encouraged if it replicates the scale of existing buildings and shopfronts. Buildings up to four stories, with storefronts located on the sidewalk and doors every 45’ feet will fi t in comfortably with existing buildings. Allowances for 10 foot setbacks from the sidewalk to create additional pedestrian amenities (such as seating) are appropriate. Th e Plan does not recommend additional widening of Broadway. Instead, the Plan recommends working with partners to fi nd other measures to mitigate congestion. DBPerspective on Broadway, looking west with a pocket park across the streetExisting ProposedPedestrian Crossing width Across Broadway75 Feet 63 FeetEast-bound Left Turn Lane Stacking Capacity 8 Cars 21 CarsProposed Lane Confi gurations on Broadway Existing Conditions on BroadwayWalnut StreetLocust StreetPine StreetLocust StreetWalnut StreetPine StreetCity of Monticello Small Area Plan | Character AreasDModify striping and median on Broadway create a safer pedestrian environment. Small pocket parks on vacant properties that off er respite from Broadway and pedestrian connections to parking in the middle of the blockCurb extensions at Walnut and Broadway to provide space for landscaping, seating, and gatheringBroadwayNew development that replicates the storefront scale currently present on Broadway. New buildings should have fl exible interiors so a main street scale can be accomplished in larger buildings.Facade improvement programs that improve signage, awnings, and general appearance of existing storefrontsDABBCABCEEPine StWalnut StCedar StRiver StBroadway4th Street 3rd Street 17 Broadway Design GuidelinesMassing and Orientation• buildings should generally be between two and four stories with varied roofl ines.• all buildings should face onto Broadway. Corner buildings may have two entrances, one on Broadway and one on the side street. • buildings along pocket parks or corners can have a second entrance / orientation to side street or pocket park• buildings should have varied widths with a maximum storefront of 45’. • longer buildings should be articulated in approximately 45’ increments with setbacks, material change or fenestration patterning. Facade and Frontage• all buildings should have a storefront or gallery frontage along Broadway• minimum 50% (windows/doors) transparency on ground fl oor• signage integrated with building• base / middle / top articulation for multistory buildings• varied cornice lines that resemble the scale of traditional main street buildings. Building Use and Location• small scale retail, dining, and entertainment uses are permitted on the ground fl oor.• offi ce, commercial, and housing are permitted on upper fl oors.• buildings are located towards the front of the lot, directly on the back of the sidewalk. Public Realm• 10-15’ sidewalks with street trees and curb extensions that reduce the crossing distance along Broadway.• on-street parking for convenience and to buff er sidewalk from traffi c• encroachments for seating, signage and display allowed• mid-block pocket parks that provide a respite from Broadway and a connection to parking areas located mid block.• parking located on-street and in shared lots mid-block • attached corner plazas on Pine Street (maximum 20’x60’ are permitted. Massing and OrientationUse and LocationPublic Realm Facades and FrontagesMassing and OrientationUse and LocationPublic Realm Facades and FrontagesMMPrecedent Images Suggested Redevelopment GuidelinesCity of Monticello Small Area Plan | Character Areas 18 Primary Recommendations Walnut Street and Cedar StreetWalnut Street and Cedar Street are important corridors to the River as well as transitions between the commercial areas of downtown and the in-town neighborhoods. In order to perform in this capacity, the Plan encourages new housing to infi ll vacant lots and eventually for single family housing to transition to medium density housing. Live/work units or small service/production (such as insurance agent or jewelry maker) are permitted. In addition, the Plan recommends improvements to the street that will accommodate pedestrian and bike access to the River. Th is includes parallel parking, aligned sidewalks and crosswalks, and curb extensions at Broadway. Walnut S t r e e t Walnut Street Promenade to the RiverPerspective along Walnut Street, looking north towards the River. Pine StWalnut StCedar StProposed Section of Walnut and Cedar Street8’12’24’8’ 8’12’8’80’ ROWPPBikeBikeRiver StreetBroadwayConvertible StreetDiagonal Parking(existing)Paralell Parking(see section above) 3rd Street4th Street5th Streettracks7th StreetCity of Monticello Small Area Plan | Character AreasDABCCreate a pedestrian promenade to the Riverfront with wide continuous sidewalks and well marked crosswalksInfi ll vacant lots and redevelop underutilized parcels with housing in small apartments or townhouses. Small service or production uses are permitted within these and existing buildings. Encourage new housing to face Walnut and Cedar Street, with multiple doors facing the street. Locate all parking towards the middle of the block, accessed via a rear lane shared with other properties on the block.Encourage small and medium scaled apartments that prioritize pedestrian scale and walkability. DABCERiver StBroadway4th Street 3rd Street 19Facade and Frontage• porches and dooryards are required for all ground fl oor units.• dormers and bay windows are encouraged to create a pedestrian scaled rhythm of the facade• Upper story balconies are encouraged. • Courtyards are permitted along 1/2 of a front property line. Public Realm• 6’-10’ sidewalk, aligned across intersections and along the front of blocks.• on street parking for visitors to Downtown• clearly marked crosswalks to accommodate pedestrian and bike access between the Community Center and the RiverfrontBuilding Use and Location• primarily residential uses between the Civic Center and Walnut Street. Small scale service and home based businesses permitted on corner of 4th and Cedar and 4th and Walnut.• Front of buildings should be located between 10’-15’ feet of front property line and between 5’ and 10’ of side street property line. Massing and Orientation• buildings should be between 2 and 4 stories.• buildings should be primarilly oriented to Walnut and Cedar Street to create a comfortable pedestrian environment. • Dormers and roof articulations should be used to reduce the scale of buildings if buildings are longer than 100’ in length.Massing and OrientationUse and LocationPublic Realm Facades and FrontagesMassing and OrientationUse and LocationPublic Realm Facades and Frontages Walnut Street and Cedar Street GuidelinesCity of Monticello Small Area Plan | Character AreasPrecedent Images 20Perspective along Pine Street, looking north towards the River. 15’70 ’15’100’ ROWCity of Monticello Small Area Plan | Character Areas Pine StreetPine Street (Minnesota State Hwy 25) is an important and heavily travelled roadway in Monticello and Sherburne County. It is one of only two river crossings between Minneapolis and Saint Cloud and it connects to I-94 in Monticello. It also has an important local role because it is Downtown’s connection to the rest of Monticello that lies south of I-94. Th e original plat of Monticello did not foresee the growth of Pine Street and as a result, the steady growth of traffi c along it has had a strong impact on the community. While it connects Monticello to the region, it also divides the community between east and west. Th is Plan recognizes Pine Street as a regional roadway, but seeks to manage its impacts as it crosses through Downtown. Th e Plan does not recommend any additional widening and supports additional river crossings that would better serve both Downtown and the region.New development along Pine Street should be regional serving, but locally scaled. Buildings should be located on the corners with pedestrian refuges along Pine Street that improve the appearance and the experience of all along Pine Street. Th e Plan discourages additional property access to Pine Street and encourages side street access with through block (north/south) easements. Work with MnDOT to maintain a 5 lane section(2 through lanes both directions with a center turning lane), do not increase speedsWork with MNDot to improve pedestrian crossings wherever possible, preferably with traffi c signals at 4th Street.Encourage redevelopment on the corners of blocks, with entrances facing the street, and shared parking in the middle of the block.Reduce the impact of parking to pedestrians by minimizing the width to 180’ and buff ering parking from the sidewalk with a low fence and streetscaping. Reduce direct property access to Pine Street and encourage property access from side streets with through block easements.Proposed Section of Pine StreetPine StreetDABCEDABCEPine StWalnut StCedar StRiver StBroadway4th Street 3rd Street 21Public Realm• 10’-15’ sidewalk; trees clustered in planters with ground cover or low shrubs.• sidewalks buff ered from parking lots with low wall or hedge. • gateway treatments at River street and 7th Street. Building Use and Location• larger retail/ commercial, offi ce or hospitality uses that desire visibility, parking and regional access are encouraged. • buildings located towards front corners of Pine Street blocks.• Parking lots in mid block should not be wider than 180’, but sould be clearly visible from Pine Street and easilly accessible from side streets.Massing and Orientation• buildings should be between 2 and 5 stories.• buildings should be oriented to Pine Street. Secondary entrances can be located on side streets or facing parking lots. If located on the Broadway/Pine Street corner, buildings should have dual orientations - one towards Pine Street and one towards Broadway. Massing and OrientationUse and LocationPublic Realm Facades and FrontagesMassing and OrientationUse and LocationPublic Realm Facades and FrontagesPine Street GuidelinesCity of Monticello Small Area Plan | Character AreasFacade and Frontage• Primary entrance to building should be clearly visible from Pine Street accomplished with careful design. • One story base level articulation is encouraged to create a pedestrian scale frontage. • Storefronts on the ground fl oor are encouraged to face Pine Street. If storefronts face mid block parking, there must be pedestrian access to the storefronts.• Corner treatments such as entrances, cornice feature, or towers are encouraged at the corners of the bocks. Precedent Images Blocks 52 and 34 24Block 34 Access WaySurface ParkingBlock 34 (public ownership in red)Most of the properties on Block 34 are publicly owned. In addition, there are two wells on the block that impact development. Redevelopment is further challenged by limitations on property access created by medians on Broadway and Pine Street. Th e site is attractive for “outbound” retail and the plan recommends such a use to be located in the base of a multi use building on the corner of Pine and Broadway. Pine StreetBroadway Street E4th Street ECedar StreetPine StreetBroadway Street E4th Street ECedar StreetMin: 5-Feet Max:10-FeetMin: 5-Feet Max:15-FeetMin: 5-Feet Max:15-Feet Max:15-FeetMin: 5-FeetPine StreetBroadway Street E4th Street ECedar StreetPine StWalnut StCedar StRiver StBroadway4th Street 3rd Street Pine StCedar StBroadway3rd StCity of Monticello Small Area Plan | Character AreasFrontage And Ground Floor UsesActive (retail) uses are required at Pine Street and Broadway. Residential frontages are required on Cedar Street. Th e remainder of the block is fl exible.Setbacks, Pocket Parks & Open SpaceBuildings should defi ne the perimeter of the block with a front facade zone between 5’ and 15’ of the front property line. Th e two wells on site have 50’ setbacks and shou ld be incorporated into courtyards or parking areas. Parking & ServicingPrimary access to mid block parking should occur from Cedar Street and 4th Street. Access (right in / right out) is discouraged on Broadway and Pine Street. Flexible Frontage (either Active of Residential)Active FrontageResidential FrontageWell SetbackBuilding SetbackOptionsTh e two illustrations above show potential options for development on Block 34 - both adhering to the guidelines. Th e top illustration shows a development pattern that assumes the property on Cedar Street remains. Residential Frontage Active FrontageBroadwayBroadway3rd street3rd streetPine StreetPine StreetCedarStreetCedarStreet 25Block 52Block 52 (Public ownership in red)Block 52 is a key block in the Downtown. It is highly visible and it sits on the West Bridge Park. Th e site slopes approximately 15’ from Broadway to River Street. Broadway and Walnut contain mercantile buildings of varying quality. River Street has vacant parcels and underutilized buildings. Frontage And Ground Floor UsesActive frontages (high transparency) and uses (retail and restaurants) should be located on Broadway, Walnut, and the west half of River Street. Th e remainder of the block is fl exible - it can have either residential or active frontages. Setbacks, Pocket Parks & Open SpaceBuildings should defi ne the perimeter of the Block. Minor setbacks (5’-10’) for overhangs, seating, and display of goods is permitted on Broadway and Walnut. A more generous setback is permitted on Pine due to traffi c volumes and access. Attached corner plazas are encouraged on the northwest corner of the block and permitted on the northeast and southeast corners. Parking & ServicingAccess to mid block parking is encouraged on Pine Street and Walnut Street Parking should have minimal exposure to Broadway, River or Walnut Street. Careful consideration should be given to visibility and access to parking from Pine Street since that will be the primary access and will the site will be approached from the Bridge. Extra signage or a turning lane may be required. Walnut StreetBroadway Street WRiver Street WPine StreetMin: 0-Feet Max:10-FeetMin: 5-Feet Max:10-FeetMin: 0-Feet Max:10-FeetMin: 10-Feet Max: 20-Feet60’30’Walnut StreetBroadway Street WRiver Street WPine StreetWalnut StreetBroadway Street WRiver Street WPine StreetWalnut StreetPine StreetRiver StreetBroadwayPine StWalnut StCedar StRiver StBroadway4th Street 3rd Street Access WaySurface ParkingCity of Monticello Small Area Plan | Character AreasBuilding SetbackPocket Park & Open SpaceOptionsTh e two illustrations above show potential options for development on Block 52 - both adhering to the guidelines. Th e top illustration shows new development on Broadway, articulated at a Main Street scale, with a corner plaza and a covered pass through as a form of pocket park. Th e bottom illustration shows a single corner development on Broadway, with a pocket park. Approaching Downtown from the BridgeBlock 52 will is the Gateway Block to Downtown from the Bridge. It is important to create an easy way for visitors to access mid-block parking as they approach downtown. Th e image to the right shows the approach - with enhanced landscaping, a turn lane, and clear signage to direct drivers to parking mid-block.Flexible Frontage (either Active of Residential)Active FrontageResidential FrontageRiver StreetBroadwayPine StreetPine StreetRiver StreetBroadwayPine StreetPine Street Frameworks 27 Frameworks: PurposeLand Use, Open Space and Transportation are the three frameworks that organize and defi ne the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacts. Th is is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. Th e Plan is also divided into frameworks in order to allow diff erent agencies, departments, and investors act in concert with each other. Th is will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. General Approach Th e Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. Th ey are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. Th ey are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to off er.In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Th erefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City.Th is Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value “experience” over “convenience”. At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Development patterns that support social interaction, local character, and a compact connected and walkable environment. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fi ne grained mix of uses. Th e Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations• create a Center to Downtown that is active throughout the day and into the evening - year round. Th e Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefi t from open spaces and activities associated with the River.• Improve the entry experience from the north.• Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings and spaces. • Create development pattern on Pine Street that benefi ts from high visibility and regional access.• Infi ll Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an eff ective transition between the in-town neighborhoods and the Downtown. Walnut StreetCedar StreetBroadwayRiver Street3rd Street4th Street Frameworks: Land Use and DevelopmentCommercialMixed-UseSmall Retail OpportunitiesRequired Retail FrontageMulti-Familiy HousingPublicEmploymentMedium Density HousingCity of Monticello Small Area Plan | Character Areas 28West Bridge ParkEast Bridge ParkFront Street ParkWalnut StreetCedar StreetLocust StreetPine StreetBroadwayRiver Street3rd Street4th StreetTo Middle SchoolTo Elementary SchoolBroadwayRiver Street4th Street ParkCemetery Frameworks: Parks and Open SpacesGeneral ApproachParks and Open Space play an important role in distinguishing the Downtown from other areas of Monticello. Unlike much of Monticello where parks are generally programmed for recreational / sports and defi ned by trees and greenery, the parks downtown should focus on gathering and general social interaction as well as planned events. Th erefore, in order to support and enhance the environment for downtown residents and businesses, this Plan expands the defi nition of parks beyond the valued park spaces that are already in use - namely Front Street Park, East and West Bridge Park.Th e Downtown Parks should also take in consideration the needs of new downtown residents and visitors. Upon implementation of this plan, several hundred new residents will be living in the downtown. It is likely that new downtown housing will be more compact and with less outdoor space than typical single family homes. Inevitably this will result in park demands that don’t currently exist. Meeting these needs is a great opportunity to further develop a well designed and well connected park and open space system. Parks, Plazas, and Sidewalks that are lively, safe and pleasant to be in. Recommendations• Redesign East and West Bridge park to include an amphitheater, water feature, riverfront access, picnicking, and additional space for passive park use. • Improve Front Street Park to include improved boat landing and space for nature oriented programming. • Connect the two Bridge Parks with Front Street Park with improved pathways and trails. Design all three parks as a single park with multiple uses. • Provide access to the islands with a seasonal bridge• Create small pocket parks mid block on Broadway to off er plazas that connect to parking lots in the middle of the block.• Redesign Walnut Street between River Street and Broadway as a special street that can be closed and used for festivals and events throughout the year. • Consider all sidewalks for opportunities to enhance greenery and public art. Emphasize Walnut Street, River Street and Broadway as the main pedestrian corridors in Downtown. • Use public art throughout the parks and corridors to distinguish Downtown as a place of cultural expression and celebration.• Work closely with local businesses, residents (new and existing) to ensure local parks and open spaces are appropriately designed and programmed for their varied needs. • Modify the Embracing Downtown Plan that recommends off street bike paths on Pine Street. In lieu of this off -street path, create north / south bike access to the river along Walnut and Cedar through a complete streets policy. Encourage bicycle crossing of Pine Street at 4th, River and 7th Street. • Maintain sidewalks and paths along TH25PlaygroundSeasonal BridgePark OverlookWater FeaturePark Facilities AmphitheaterSledding HillPublic GardensPicnic AreaIllustrative Master Plan: East and West Bridge ParkCommunity ParksNeighborhood ParksPocket ParksConvertible Streets Proposed Bituminous Trail ConnectionsMRT TrailSeasonal BridgeExisting Bituminous TrialPedestrian Promenade to RiverCity of Monticello Small Area Plan | Character Areas 29General Approach Th e design of the streets (and the full right of ways) in downtown have a signifi cant bearing on how downtown functions and feels. Th e rights-of-way in the Downtown should be designed to create a comfortable and safe physical environment that encourages a range of activities and development types. Th e Plan recommendations, therefore, favor a high quality, well-connected, and fl exible street system that facilitates all users of downtown - especially those who are using and not passing through Downtown. With two main roads bisecting downtown, traffi c volumes are relatively high. Th is provides an opportunity to capture additional business downtown, but it also can have a deleterious impact on the pedestrian and business environment in some locations. Recognizing this situation, previous Plans have emphasized Walnut Street as a main pedestrian connection to the River (not Pine Street). Th is Plan supports that idea and off ers several ways in which that can be further achieved. Th is Plan departs from previous Plans in that it also encourages pedestrian activity on streets other than Walnut - this includes, Broadway, Pine Street and Cedar. While the Plan recognizes the regional function of Broadway and Pine, the Plan strives to balance this function with the local needs of community connectivity, aesthetics, pedestrian safety, and multi-modal travel. Successful Downtowns are not just easy to get to, they are pleasant to be in and to stay for multiple reasons. Th erefore, this Plan, discourages future road widenings that would have further negative impacts on pedestrians Downtown - especially along the primary pedestrian corridors and districts. In lieu of road widenings, the Plan champions an well connected and balanced urban street grid system that can be programmed to fl ex and contract as needed to meet all the needs of Downtown. Accomplishing this goal will require a series of smaller interventions (signal timing, street connections, traffi c controls, traffi c calming, time-of-day-parking restrictions, modifi ed property access, etc.) in lieu of wholesale street widening that would likely have a negative physical impact on the built environment of Downtown.Th e Plan also supports a street network where the Level of Service for pedestrians, transit riders, and cyclists are considered on equal terms to those of motorists and delay measurements from modelling are considered as a portion of overall average trip, not in isolation. Recommendations• Connect Walnut Street to River Street• Maintain the River Street / Pine Street signal as the formal entrance to Downtown and an important pedestrian connection across Pine Street.• Add a traffi c signal at 4th and Pine to help balance the grid and turning movements at the Pine / Broadway Intersection. • Modify Walnut / Broadway and Cedar / Walnut Broadway intersection to prioritize pedestrian crossings and access to the river. • Narrow the travel lanes on Walnut Street, add parallel parking, where possible and ensure continuous safe and pleasant sidewalks.• Add sidewalks at the perimeter of blocks where they are not currently present• Discourage direct property access to Pine Street; favoring the side streets wherever possible with through-block lanes or easements. • Allow direct property access to Block 52 from Pine Street in order to reduce volumes at the Pine / Broadway intersection.• Discourage deceleration lanes; encourage speeds that do not require them. • Consider traffi c calming at River Street and Locust (or Linn) to prevent excessive speeds - similar to River Street and Cedar Street as an example Frameworks: Circulation and AccessA complete network of fl exible streets that favors the needs of residents, businesses, and visitors. BroadwayWalnut StreetCedar StreetCedar StreetCedar Streetriver Street3rd Street4th StreetImproved Pedestrian CrossingTraffi c CalmingSignalized IntersectionAccess WayInterstate 94Broadway Street (CSAH 75)Add Sidewalks to Complete GridSurface ParkingPedestrian Promenade to RiverPine Street (MN 25)7th StreetCity of Monticello Small Area Plan | Character Areas 30Downtown Parking StrategyTh e Plan recommends the following parking strategy: »Provide on-street parking wherever possible for short-term visitors to Downtown. »Provide small public lots on the interior of the core blocks for employees and visitors staying for over an hour. »Create a superior system of sidewalks and walkways encourage people to park once downtown and to walk a block or two to their multiple destinations downtown. »Provide visibility to parking lots, or well designed signage that directs regional visitors to available parking spaces in public lots. Consider “smart signs” that indicate availability. »Monitor occupancy and utilization of parking downtown in order to make adjustments as necessary. »Work with property owners on blocks 31 and 32 to create additional publicly available parking. »Adopt a District Parking policy that increases the utilization of existing parking and over time reduces the overall visual impact of parking in the Downtown. »modify parking regulations downtown to create parking maximums, not just minimums. Parking and Program : Park Once DistrictEXISTING Block51 52 36 35 TOTALExisting Pkg Spc 30 135 105 140 410Existing SF (non residential) 20,000 45,000 45,000 45,000 155,000BlockFUTURE 51 52 36 35 TOTALFuture Pkg Spc 80 130 80 110 400Future SF (non residential) 30,000 75,000 45,000 45,000 195,000Parking Expectations Change as Broadway ChangesAs Broadway an the Riverfront transition from service and convenience retail to experience based retail (food) and events customers expectations for the distance between their parking space (if arriving by car) and the fi nal destination changes. We expect to park a block away from a place that we may spend a few hours at. Block 51Block 51Block 35Block 36Block 31Block 32ParkingIn order to accomplish the goals in the Plan related to the public realm and human scaled design, the Plan recommends a nuanced and fl exible approach to parking. While the Plan recognizes many people, in the future, will still arrive to Downtown by car and it is important to make sure parking is plentiful and accessible; it is equally important to ensure parking does not dominate the Downtown area. Ultimately the goal is to ensure customers and visitors can comfortably and safely get to their destination, not just their parking space. Parking is just one part of a visitors experience.Th e plan proposes a “park once” District (Blocks 51,52,35,36,31,32) that allows visitors to the area to park once and use sidewalks and trails to go from one location to another in the Downtown. Th is is possible if the city controls parking and off ers a high quality public realm that makes the experience of moving from one location to another a pleasant one - throughout the day evening and year. City of Monticello Small Area Plan | Character Areaslength of visitconvenience shopping on Pine Streetdining and unique experiences on Broadway and the Riverfrontdistance between parking space and destinationParking Expectationsa few minutesfrustratedzone of reasonable expectationsgood parking karmaa few hoursa few feeta few blocks Implementation 32Implementation StrategyCity of Monticello Small Area Plan | BackgroundIntroductionNo one is served by a plan that sits on the shelf. Implementing this Downtown Monticello Small Area Plan means taking action on several fronts.• Adoption and Integration into City programs and Policies • Catalytic development projects• Retail vitality strategies• Public realm improvementsAdoption and Integration into City Policies and ProgramsRelationship to Embracing Downtown Plan and the Comprehensive PlanIn 2010, the City of Monticello completed the “Embracing Downtown Plan”, a guide to redevelopment of downtown Monticello. Th e full area considered to be “Downtown Monticello”, or the “Central Community District” extends from Interstate I-94 at its southern boundary to the Mississippi River in the north, and generally from Cedar Street on the east to Maple Street on the west. Th e Embracing Downtown Plan was adopted as an appendix to the Comprehensive Plan, and included three supporting documents, a Design Guideline, Transportation Analysis, and Market Analysis. Th e Downtown Small Area Study document serves as an update to the 2008 Monticello Comprehensive Plan and to the Embracing Downtown Plan for a specifi c portion of the downtown. Similar to the Embracing Downtown plan, it is proposed as an appendix to the Comprehensive Plan, although the primary goals will be recommended for insertion directly into the “Downtown” portion of the Land Use Chapter of the plan. For the geographic area encompassed by the Downtown Small Area Plan, the Downtown Small Area Plan supercedes the 2010 Embracing Downtown Plan. While the three supporting documents to the Embracing Downtown plan continue to inform the Comprehensive Plan and Small Area plan, where the Downtown Small Area plan provides specifi c guidance (such as within the Design Guidelines Section) , the standards therein prevail. Zoning Code and Development Regulations / GuidelinesImplementation of this Plan will require adjustments to the existing zoning code. Certain uses, parking requirements, and building forms/types that the Plan promotes are not permitted in the current code. Adjusting a zoning code to be in compliance with Plan is commonplace and required since zoning is one of the implementation tools of the Comprehensive Plan. Complete Streets PolicyTh e City should draft and adopt a Complete Streets Policy in order to wisely guide all public investments in streets and rights of ways. Catalytic Development ProjectsTo change market perceptions of an area, it is advisable to concentrate public investments in development in an area where a new sense of place can emerge. Th at invites a private sector response. For that reason, Monticello is advised to foster a critical mass of catalytic development projects, and a new sense of place, along the Walnut Street corridor. At the north end of the corridor, new development projects would make a fi rm and exciting connection to the Mississippi riverfront. Further south, new development can build a new multifamily neighborhood downtown, easily walkable to a multitude of downtown amenities. New development along Walnut Street reinforces the character of Walnut Street as the walkable spine that connects downtown assets from the stores near the interstate to the Mississippi River and parks. Market research and interviews with developers indicate that Monticello’s downtown will be of interest to the development community. Th e City will nevertheless need to take active steps to capitalize on this interest. An assertive public sector role means consideration of actions like site assembly, public fi nancial support, and other steps. Public fi nancial support will be required to attract new development downtown. Market conditions will not bring new development without it. A note on public fi nancial support for development. Cities need to invest in their own renewal, in order to stay viable, and to prevent certain areas from entering a cycle of decline. But the focus and scale of that investment is an important decision point. For Monticello, maintaining the viability and vibrancy of its downtown is a natural and prudent focus of investment. And providing fi nancial support to a small set of catalytic projects represents a scale of investment that is nicely proportionate to the City’s overall resources. Th ree potential catalyst projects are described below, with a recommended approach to implementation for each.Development Site 1—North Half of Block 52Th is site is envisioned to be developed as a mixed use development, introducing housing that fronts on the river, and off ering a destination restaurant or other prominent retail attraction. It would create a new buzz for downtown Monticello, and draw customer traffi c that would support the retailers on Broadway Street.Th is site has the potential to be highly attractive for a developer, if certain preconditions are present. Development is most likely if:1. the site can be assembled in single ownership or controlled by a common entity2. there is a commitment to a special street on the Broadway-to-River block of Walnut Street3. a entertainment or restaurant entrepreneur/operator is secured in advance for the signature retail space4. good traffi c circulation is maintained around the block, and good access is available to surface parking in the block interior5. City and public support is present for development at a reasonable density6. Public fi nancial support is made availableTh e City will need to play a proactive and assertive role to advance these conditions for success. Development Site 2—South half of block between River and Front StreetsTh is site is a premier location for new housing development, given its proximity to the River and riverfront parks. It is well suited to townhome development, or three story development with underground parking—with the latter likely to be more viable fi nancially. It could have larger units, serving families, or smaller units, serving singles, couples and/or seniors. New households in this location would support downtown retail stores, and Policies and ProgramsPhysical ImprovementsCatalytic ProjectsRetail VitalityTODAYTOMORROW 33Walnut StCedar StBroadway3rd StreetPine StreetRiver Street123Th ree Catalytic Projects in Downtown City of Monticello Small Area Plan | BackgroundProactive work can be pursued to increase development interest. Th is could entail negotiating the acquisition of the Walnut Street frontage of the Wells Fargo property, and replatting and rezoning the property so that it supports the intended development. A developer will be looking for a sense of City and public support for development at a reasonable density. Th e development of this site is likely to require public fi nancial support.Retail Vitality StrategiesRetail vitality strategies are presented briefl y in a preceding section, and in more detail in the attached background report. Some key implementation steps are noted here, which could be considered for initial actions.• Business and property owner engagement. Successful retail vitality eff orts are almost always spearheaded through an organized stakeholder group of business and property owners. Th is group chooses to work collectively and creatively on a set of priority actions. Fostering this collective will is the most essential element in eff ective action.• Public sector support: Facade Improvement Program and Retail recruitment : Investment of time and fi nancial resources on the part of business owners is enhanced by knowing that it is being supported through a commitment of public sector time and resources. Th e establishment of a grant program that matches business investments with public funds is a great way to demonstrate that shared commitment. the Plan recommends immediate investment is a facade improvement program and a retail recruitment strategy. Public Realm ImprovementsAdjustments and improvements to the physical environment are crucial to success of Downtown. Listed below are several important investments that will support implementation of the Plan.• Improve crossings of Broadway at Cedar and Walnut: Simple curb extensions will reduce the crossing distance and time for pedestrians. Th e city should work with the County to determine other strategies such as a four-way stop, widening the center median and / or creating a pedestrian refuge or maintaining only a single west bound lane on Broadway. • Fill the gaps in the sidewalk system. there are several blocks downtown with no sidewalks. Th ey can be completed with redevelopment, but there is little risk in completing them in advance of redevelopment.• Connect Walnut to River Street: the City should work with the property owners to move forward this important initiative. ideally, this project would be completed in conjunction with redevelopment of Block 52 and the northwest corner of Block 51.• Benches, fl owers, art and programming: Small investments such as these can make the downtown more hospitable for people to spend time contributes to the center of energy and activity at River and Walnut.Developing the site requires surmounting some challenges. It is in the Shoreland Mississippi Wild Scenic and Recreational River District which restricts the height of the development unless a variance is granted. Th e property is in the ownership of three diff erent property owners. And there could be resistance to development at a scale that makes fi nancial sense for a developer.Proactive work should be pursued to mitigate these concerns, through additional site assembly, and continued steps to build public acceptance of new development at a reasonable scale. Th e development of this site is likely to require public fi nancial support.Development Site 3—Walnut Street between 4th and 5th StreetTh is site is an attractive location for high quality, attractive housing development with underground parking, which fronts on Walnut Street. It would contribute to a high-quality frontage along Walnut Street that makes it feel like a walkable promenade from the river to the freeway. Th e development could be targeted to empty nesters, millennials, downtown workers, and/or seniors.in.• Redesign of West Bridge Park: Th e City (Parks Commission) should bein discussions with stakeholders regarding the redesign of the Park so it is better integrated with the River and the Downtown. Th is can begin with a resident / user survey or questionnaire and visits to nearby communities with successful riverfront parks.• Conversion of vacant lots to pop-up parks: Temporary or pop-up parks on vacant lots on Broadway can be spark innovative uses of underused land. Off ering these spaces to local schools and artists and businesses can be an eff ective way to make good use of underused land. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context April 2017 DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 2 Introduction The purpose of this report is to describe the market and development context that shapes the growth and development of Monticello’s downtown district. It provides an overview of the demographic and economic base of Monticello. It looks at market trends and how they could predict future development demands for the downtown district for retail and residential development. It looks at where development opportunities may be located within downtown Monticello. And it documents feedback of the development community about downtown Monticello as a setting for new development. Monticello is a river town, which offers a strategically located crossing of the Mississippi River. The traffic that crosses the river on State Highway 25 both benefits and burdens the City of Monticello. It provides visibility to the historic downtown area. But it bisects the downtown with road widths and traffic volumes that make it difficult to cross. Downtown Monticello’s storefront district on Broadway Street complements the more modern destination retail areas closer to Interstate 94. Monticello is a center of growth, and a local service center, for the surrounding areas. In recent years, Monticello’s growth has largely come in the form of single family homes and apartment development at the edges of the City, and in surrounding areas, as well as retail development oriented to Interstate 94. This is true, even as developable land exists in the heart of the downtown area. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 3 Demographics Monticello has experienced significant growth over the past fifteen years, attracting new households even through the course of the recent economic recession. Source: 2015 ACS 5-Year Estimates Population and Household Characteristics Comparison cities vary widely in the types of households they support. Monticello has a slightly higher number of family households than the average for the state. Of 4,838 total households in Monticello, family households comprise 69% of total households. This compares with 65% in Minnesota. Broken down further, 31% of all households are married couples with children under 18, 20% married couples without children under 18, and 18% other family compositions. Of the nonfamily households, Monticello has a higher rate of individuals living alone as compared with most of its comparison cities. Source: 2015 ACS 5-Year Estimates The average household size in Monticello is a little smaller than most of the comparison cities, but slightly larger than the average for the state. Source: 2015 ACS 5-Year Estimates 0% 20% 40% 60% 80% 100% 120% 140% Population growth (2000-2015) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Household Composition Roommates Living alone Other family Married-couple without children Married-couple with children 0 0.5 1 1.5 2 2.5 3 3.5 Average household size DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 4 Minority population. Monticello has a larger minority population than the comparison cities. However, the minority populations of all of the comparison cities are significantly lower than the minority share of population in Minnesota as a whole. 9% of Monticello’s residents are latinos, or non-white, compared to 18% in the state of Minnesota. Monticello has a significant Latino population compared to the comparison cities, comprising 6% of Monticello’s total population. Source: 2015 ACS 5-Year Estimates Education Level. The education level of Monticello residents is similar to education levels for Wright County and State of Minnesota. Source: 2015 ACS 5-Year Estimates Financial characteristics and employment. According to the U.S. Census Bureau, the median household income in Monticello is $70,254. This is above the state average, whose median household income is $61,492. Source: 2015 ACS 5-Year Estimates 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Minority Race/Ethnicity Two or more races Some other race alone Hispanic or Latino Asian alone Black or African American alone 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Educational Attainment Less than high school graduate High school graduate (includes equivalency) Some college, no degree College degree $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Median household income DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 5 Due to Monticello’s location relative to the larger cities of St. Cloud and the Twin Cities, it is unsurprising that many residents of Monticello work outside the city. Of the 6,459 employed residents of Monticello, 82% work outside of Monticello. Monticello should not be considered a bedroom community though. It offers roughly 5,400 jobs, and provides employment to around 4,300 people who live outside the city. Source: US Census, OnTheMap Housing Characteristics Types of housing. Monticello has a more diverse range of housing options then its comparison cities. Just 54% of Monticello’s housing units are single-family homes. Source: 2015 ACS 5-Year Estimates Tenure (ownership/rental status). In light of Monticello’s larger diversity of housing types, one might expect a residential market dominated by rental housing. But the share of owner occupied housing is 70%, which is right in the middle of the range of comparison cities. This indicates that the great majority of single family homes and town homes are owner occupied. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Housing units by type Mobile home and other Apartment buildings, 10+ units Apartment buildings, 2 - 9 units Townhomes and condominiums Single family homes DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 6 Source: 2015 ACS 5-Year Estimates Home value. Homes in Monticello are slightly more modest in value, in comparison to most of the comparison cities, and the statewide average. Source: 2015 ACS 5-Year Estimates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Housing tenure by unit Renter-occupied housing units: Owner-occupied housing units:$0 $50,000 $100,000 $150,000 $200,000 $250,000 Median Household Value DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 7 Development Market Overview Residential Market Context The housing market in Monticello has followed the growth of the population of Monticello. Of particular note for the downtown study area is the multifamily housing market, which will be the focus of this section of the report. Average rents per square foot have seen a steady increase in the last five years. Vacancy rates have also steadily gone down, on average. These indicators reflect a high demand for multifamily housing, and they are consistent with market trends of the state of Minnesota. Average M ultifamily R ent (psf) Source: Costar Vacancy rate, multifamily units Source: Costar The map below shows Monticello’s apartment developments, as catalogued by Costar. The oldest was built in 1964. Many were built in the 1980s. The newest, Monticello Crossings, is the only apartment development built since the Great Recession. Monticello Crossings is a 210 unit apartment building on the east side of Monticello, just south of Interstate 94. It offers market rate apartments that are rented at around $2 per square foot, which is well above the rents that are charged in any apartment buildings in Monticello. And it has rented up at a rate that met the projections of the developer. The success of this development demonstrates that there is a market demand for apartments in Monticello, some of which could be captured in downtown Monticello. Source: Costar Development opportunity analysis. There are a number of areas in downtown Monticello that are good potential locations for new development. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 8 Properties are more likely to be of interest to developers if they are: • Note fully developed currently • Have relatively low value • Are publicly owned The map below is colored according to the value of properties per square foot, as estimated by the City Assessor. Since darker colors indicate higher value properties, lighter colored properties may elicit more interest by developers. Publicly owned properties are outlined in blue. Development Opportunity Analysis Map Source: City of Monticello Property Records Developer input. Five developers and real estate professionals were interviewed as part of this study. They were: • Bill Gorton, Keller William Commercial Midwest • Bill Beard, The Beard Group • Steve Dunbar, Dunbar Development and Ivy Property • Andy Martin, IRET • Matt Goldstein, Schuett Companies These people have deep experience in real estate and development. They know Monticello, or cities like Monticello. And they offered a range of insights and perceptions relative to the prospect of attracting new development to downtown Monticello. The interviewees appreciated that there is a cluster of features in downtown Monticello that would be attractive to new development. • The nearness of the Mississippi River, and adjacent parks • The walkable core of storefront buildings • Monticello’s community center and library • Vacant land (much of it currently as parking lots) But they also noted impediments to development, such as: • The condition of the storefront buildings • The parking lots that dominate the landscape in certain areas • The lack of recent development, which represents an absence of market indicators for how a new development would perform • The need for land assembly in most development opportunity areas Interviewees noted that development is occurring in the downtown areas of cities like Monticello. And the overall sentiment was that downtown Monticello could capture a share of the housing growth that is occurring in the city. However, development in this environment is more complex. Land values are higher. And development faces greater uncertainties than a similar development of an undeveloped area at the edge of town. For that reason, development in downtown Monticello is likely to require an active public private partnership. Development is most likely to occur when: a) a site can be assembled in single ownership, b) A plan for downtown is adopted, and follow-up actions are taken to DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 9 demonstrate a commitment to plan objectives c) Actions are taken to improve building conditions and retail vitality on Broadway Street d) City and public support for development at a reasonable density is present. e) There is an understanding that a reasonable level of public financial support will be required, especially for the first development initiatives If these conditions are present, there is likely to be interest on the part of the development community, in doing high quality development in downtown Monticello that meets the goals of the community. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 10 Retail Market Context Much of the newer retail development in Monticello has been highway oriented retail, near Interstate 94. There has been little new retail development in the downtown study area. Retail rents have seen some fluctuations in recent years, but today remain stable. Vacancy rates have seen a very significant decrease, associated with the recovering and growing economy. Average Retail Rents (per square foot ) Source: Costar Retail Vacancy Rate Source: Costar The yellow bars of the Retail Absorption and Deliveries chart indicate a high level of retail absorption over the last five years. In other words, existing retail space has been filling up. That trend, along with additional population growth, may have provided the basis for the development of new retail space in 2013, 2015, and 2016—as represented by the blue bars in of the chart. Retail Absorption and D eliveries Source: Costar Geographic context. Monticello’s retail areas are situated in a regional context, competing against the shopping areas in other nearby cities. One way of understanding that context is looking at the locations of shopping centers in the surrounding area. The following chart shows shopping centers in the area around Monticello, by type of shopping center. The larger types of shopping centers are illustrated with larger circles on the map. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Market and Development Context Tangible Consulting Services | April, 2017 11 Retail Context Map Source: Costar, Tangible Consulting Services Retail stores in downtown Monticello compete to some degree with the highway oriented retail stores that are near Interstate 94, and with the retail areas in nearby communities. But they also offer something that is distinct from those retail areas—a different retail landscape which sets them apart and makes them unique. Their sidewalk facing storefronts, and density of offerings, makes them pedestrian oriented. The older buildings are part of the historic legacy of Monticello, and make good spaces for retail entrepreneurs and local businesses. Because they are a slightly different animal than the highway oriented retail in Monticello, there is an opportunity to capitalize on this unique character to improve the customer traffic, retail mix, and vibrancy of the area. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April 2017 DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 2 Introduction This report considers and assesses the vitality of downtown Monticello’s retail district. This report focuses on the traditional storefront district, the primary walkable retail area downtown. This area is centered on the intersection of Broadway Street and Walnut Street. It encompasses the area in pink in the map at right—specifically, the two blocks of Broadway Street between Pine Street and Locust Street, and the two blocks of Walnut Street between River Street and 3rd Street. Downtown Monticello is a desirable place for people to spend time. It offers a traditional compact storefront district, just a block from the Mississippi River and park, and several blocks from the city’s lively community center and library. Today while some attractive and successful businesses are located in downtown Monticello’s storefront district, it projects the air of a place that once was a spirited center of Monticello but is now tired and unsure of its identity. As people’s preferences for shopping, dining out and recreating are shifting, Monticello has an opportunity to draw on the inherent distinctiveness of its downtown to shape a future that will position it as a local and regional destination. Sources of information. We draw on three sources of information for this report: public input, market context, and our own observations. We reviewed the responses from public input offered on postcards that asked about desirable futures, and from a questionnaire about downtown Monticello’s strengths and weaknesses. We also benefitted from a steering committee survey specifically focused on retail vitality. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 3 National Retail Trends and Context The retail landscape is changing rapidly. Department stores are closing. Discount retail stores are increasing. As lives get busier, people do more shopping online, and when they actually go out to shop people want an experience – it’s about more than just purchasing a product. But traditional, storefront-style retail areas still have something to offer. The small spaces they offer are ideal for local businesses and start- ups. They offer a place for businesses that can’t afford the rents in newer retail developments, or can’t fill the large spaces in auto-oriented strip areas. Furthermore, people still shop. People want to try things out, or see and hold items, before they purchase them. Physical stores are social places where customers interact with others. People want to go out to businesses where they see people enjoying themselves, and where they can run into friends and neighbors, while drinking, dining, working out, or purchasing daily items close to home. The opportunity for downtown Monticello is to provide people with an experience. A future downtown Monticello may provide a place where many more people are shopping, eating, sitting by the Mississippi River, walking, biking and socializing. In the context of this new national retail reality, downtown Monticello has the bones to be a destination retail area. Downtown Monticello Overview Monticello has a traditional downtown area, with storefronts that face the street. It is walkable, and is just a block or two from the Mississippi River. In the past it was the heart of the City’s commercial activity. As in many small towns throughout Minnesota and the USA, it has been impacted by the development of competing commercial areas. These areas, near Interstate 94 and along Pine Street/Hwy 25, are the result of highway development, population growth in car-oriented neighborhoods, and the changing requirements of national retailers, which are not supported by the small buildings downtown. This has led to less investment in downtown Monticello, and a languishing of some of the properties, as well as a muddled and uncertain identity. This ambiguous identity was reflected in the responses to a survey question about downtown Monticello. When asked to outline downtown on a map, Monticello residents identified a variety of different areas. All included the Broadway and Walnut intersection, but some included:  Just the buildings that front on Broadway Street between Pine and Locust Streets  The four blocks that abut Broadway and Walnut Streets  The four blocks that abut Broadway and Pine Streets  A six-block area between Locust Street and Cedar Street Some included the Mississippi River in downtown, but no one included the library and community Survey Responses Downtown Monticello Assets • Strong local businesses • Some of the traditional unique downtown retail area is intact • Library and community center • Walkability of Broadway and Walnut • Proximity of Mississippi River • Available sites for new housing DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 4 center—despite noting that these destinations are primary reasons for many to go downtown. It’s understandable that downtown Monticello is not easily identified. It is comprised of a number of distinct areas:  The riverfront and River Street which face the Mississippi River  The storefront style retail area centered on Broadway and Walnut Streets  The blocks along Walnut Street that connect the Broadway Street corridor to the heavily used library and community center, and the Cargill plant, which is downtown Monticello’s largest employer  The blocks along Pine Street/Hwy 25—which is fronted with auto-oriented retail stores. This background report is focused on the retail district that is centered on Broadway and Walnut Streets, because that’s the center of Monticello’s pedestrian oriented, storefront- style retail area. Such areas have different requirements and benefit from different policies and activities than more modern, mall-oriented retail. Nearby areas can complement and support Broadway Street’s storefront retail district. Public Input Downtown Monticello Barriers • Not enough retail businesses • Need more restaurants and coffee shops to compliment retail businesses • Not enough housing nearby – more residents means larger customer base • Environment needs to be and feel safer for pedestrians DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 5 Retail Vitality Assessment In assessing conditions in pedestrian oriented retail areas, it’s helpful to look at several aspects of the area. The business mix, and the number (or density) of retail stores, are helpful ways of looking at what the retail district offers, in terms of shopping, dining, or other attractions. Another set of measures is focused on the character of the area, and the degree to which its elements offer an attractive and comfortable environment for people to come to. The following elements are considered below, because they are known to be critical factors in building the character of pedestrian oriented retail areas:  Walkability  Sense of Safety  Visual Identity and Branding  Public Realm Conditions  Business Conditions Business Density and Mix Business density refers to the concentration of businesses in the area. When businesses are concentrated (i.e. there are more businesses per block, for example), it is easier to walk among them and to visit several during one trip. Higher density of businesses also creates a vibrant environment that can feel busy and active with signs, storefront displays, and perhaps outdoor seating. It is an environment that is scaled to people walking by rather than driving by. The two blocks of Broadway Street have a high density of businesses. It is a concentrated retail area. Source: Tangible Consulting Services Business mix refers to the assortment of businesses and business types that make up a retail district. Source: Tangible Consulting Services The mix matters because businesses perform different roles in a district. Some draw nearby residents on a regular basis. Others serve as destinations and attract people from the region as well as the local area. Some businesses generate 0 2 4 6 8 10 12 Business Establishments Per 500 feet DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 6 a lot of foot traffic. Others have no walk-up customers at all. Source: Tangible Consulting Services In the chart above, we compare Monticello (both the study area and the two blocks of storefront businesses on Broadway Street) with the storefront-style retail areas in Elk River and Buffalo—as well as in Madison, Wisconsin, where we’ve done a recent retail inventory. The categories are significant. General Merchandise, Apparel, Accessories refers to retail businesses that serve a broader market area: big box discount stores, home and garden, furniture, grocery store, brand clothing store, sporting goods. Neighborhood Goods and Services refers to retailers that offer goods and services that serve a more local market: dry cleaner, pharmacy, convenient grocery store. Food and Beverage refers to restaurants, coffee shops, bars and nightclubs. Non-Retail Destination refers to businesses that do not sell goods but generate walk-in traffic, such as studios, or cultural institutions. Non-Contributing refers to ground floor offices that generate little to no walk-up traffic. Storefront districts can have different flavors. Some offer more restaurants and entertainment than shopping. Shopping areas can serve as destinations, or cater to local needs. They can offer Observations. Monticello has a good mix of businesses both in the broader study area as well as in the two block area of Broadway. And the establishments are highly concentrated. There are fewer general merchandise and apparel establishments than in Elk River and Buffalo, and more establishments providing neighborhood goods and services. Food and beverage businesses make up a large part of successful retail districts today, and Monticello has a much lower percentage of them than the comparison areas. Feedback from the public input made very clear the desire for more food and beverage establishments. On a five point scale, with 1 being “poor” and 5 being “excellent”, survey respondents gave the downtown business mix mostly 2’s and 3’s. Challenges. It is advantageous for a retail district to have some destination retail businesses (General Merchandise, Apparel, Accessories) because 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business Mix in Storefront Districts Non-Contributing Non-Retail Destinaton Food and Beverage Neighborhood Good's and Services General Merchandise, Apparel, Accessories Public Input Business Mix What do people want downtown? • More restaurants • Local café • Ice cream • Pottery shop • Wine bar • Indoor archery club • Health and wellness shop • Local music at restaurants DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 7 they bring non-local people to the area. In addition, restaurants, coffee shops, ice cream shops are critical elements of a retail district because they offer shoppers a second (or third) place to stop, or as destinations which draw patrons to the area, who secondarily may browse in neighboring shops. Downtown Monticello has few of these types of establishments. Opportunities. The density of businesses on Broadway Street is high, making it a fine-grained storefront district. It is a unique walkable retail area that has the elements from which a strong destination retail area can grow. Improving the business mix by attracting new businesses, particularly more food and beverage establishments or destination retailers, could be an important revitalization strategy. And maintaining the density of buildings along Broadway will be critical to maintaining its identity. Walkability Observations. Broadway and Walnut Streets are highly walkable. On Broadway, the buildings extend to the sidewalk and have few gaps between them, creating a fine-grained retail storefront environment. And many of the buildings have large windows that front the street, which draw one’s eyes into the store and enhance the ease of walking by. Corner properties at Broadway and Walnut draw people around the corner. The properties at Broadway and Pine anchor that intersection less well. Walkability was valued by those who responded to our Retail Vitality Survey. It was identified as an important element of what people want downtown. It was rated fair to good by respondents, being scored 3 or 4 (out of 5) by most survey respondents. One respondent suggested creating a walking tour map for downtown. Challenges. A lot of automobile traffic passes through downtown. At certain times of the day the traffic backs up on Broadway Street. This volume of traffic makes some pedestrians feel unsafe. There are also a few gaps between buildings which detract from the continuity of the is the district. Opportunities. Downtown’s inherent layout is perfect for walking. There are sidewalks, storefronts that line the sidewalks and places to go. There is adequate parking, both on street and off, so that people can park and walk to a destination easily. More visual interest and activation would enrich the environment and make it more comfortable for pedestrians on the street. Activation could mean adding cafes or restaurants with sidewalk seating, or introducing pop-up retail business. It could also mean turning gaps between buildings into places of activity. They could be used as connections to the rear parking areas, or enhanced with seating or a parklet. Attention should also be paid to maintaining the density of storefronts, and avoiding any reduction. Sense of Safety Observations. Perceptions of personal safety seem to be good, but safety from traffic is a significant issue. Survey respondents split their scores on “Sense of Safety” between 2’s and 4’s. They gave scores of 2’s and 3’s to “Traffic Flow and Speed” received 2’s and 3’s. The traffic signals at Broadway and Pine, and the stop signs on Walnut at Broadway, are helpful. But they are not sufficient to address the problems. Challenges. There is a tension between moving along the traffic that builds up on Broadway at certain times of the day and keeping that traffic moving at speeds that create a comfortable pedestrian environment, and ensuring that traffic stops for pedestrians. Turn lanes help move traffic but they can make the street harder to Public Input Walkability and Sense of Safety • Create walking tour map • Add flower boxes to keep bike lanes safe DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 8 cross and the sidewalks feel narrower. In addition, Pine Street, a state highway, carries 35,000 cars per day over the Mississippi River (MNDOT, 2014) and through Monticello’s downtown. Pine Street brings people to downtown, yet it is a challenge to create a transition from downtown’s retail district to the six lane intersection of Broadway and Pine. Opportunities. Downtown’s layout is inherently pedestrian oriented. Sidewalk widths are adequate for making pedestrians feel safe. The brick cross-walks at Broadway and Walnut help notify drivers that there are pedestrians in the area. The median on Broadway could be enhanced at the intersection with Walnut and the sidewalk corners could be bumped out to make crossing safer. Balancing traffic and pedestrian needs is difficult and ongoing, but all measures should aim at shoring up the retail vitality of the downtown area. Visual Identity and Branding Observations. Many successful retail streets have a recognizable visual character that is memorable and vivid. Various patterns in the physical environment can contribute to this character, including:  Building architecture and materials  The historical era of construction  The scale of buildings  The “grain,” or density, of storefronts  Streetscaping elements  Building accessories, such as signage, awnings or exterior lighting Marketing and branding efforts can build on these physical characteristics, building the retail district’s image in the minds of potential customers. Downtown Monticello has building and streetscaping elements that could be leveraged to build the visual branding of the area—most notably the streetscaping that was installed in the early 2000s. But there is little sign of additional coordination related to district identity. In our survey, respondents gave “Downtown’s Brand/Identity” 1’s, 2’s and 3’s. It received no 4’s or 5’s. Challenges. While downtown Monticello has a fine-grained retail character, and is a unique feature in Monticello and the surrounding area, it does not impart the sense of a unified place, as opposed to a collection of individual commercial buildings. Most buildings are from a similar era, but they are quite varied in style and materials. This means other elements must be employed to create that sense of place, to visually pull the area together. Unifying elements could include building elements such as awnings, planters, or exterior lighting. It could also build on some collective themes related to color, texture, or art. Opportunities. Monticello has a starting point on Broadway Street, in the fine grain density of its storefronts. That is the basis for downtown’s brand and the core of what makes it unique and desirable. While buildings may be of different styles and materials, this variety also offers interest and authenticity. There are some gaps in these storefront buildings, and the condition of some of the buildings makes them vulnerable to a renovation or redevelopment that might interrupt this fine grain. It would be important to establish development guidelines for infill buildings, so that the unique character of the district is preserved. Marketing. Marketing activities are extremely important in building the brand identity and customer base of storefront commercial areas. This can encompass a broad range of activities and events. The Monticello Chamber of Public Input Identity and Branding • Improve the lighting • Add flowers • Create a park-like setting DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 9 Commerce plays a lead role in current marketing initiatives, and is well positioned to lead additional efforts and activities. Public Realm Conditions : Observations. It is evident that attention has been paid to the streetscape along Broadway. The trees, pedestrian-scaled ornamental street lights, and sidewalk bump-outs with ornamental fencing—these are features that invite people to walk, linger, and look in store windows. On the flip side, the streetscaping appears a little dated, and would benefit from a fresh round of upgrades. Respondents to the Retail Vitality Survey rated the “Cleanliness” of downtown highly, giving it 3’s and 4’s. Along with “Walkability” and “Parking Availability”, this was the highest rated element. They rated downtown lower for “Attractiveness,” with most scoring it a 2 or a 3. Challenges. Improving the public realm takes resources. And it takes energy to create the common vision for a new look. There are competing priorities for sidewalk area along Broadway Street. At this point in time, sidewalks are sufficiently wide to support pedestrian movement in a vibrant commercial area. But if the road were to be widened to ease traffic congestion, sidewalks would be narrowed, to the detriment of the commercial district. Opportunities. It is clear that the community values the public areas along Broadway. Updating and enhancing its streetscaping would improve the attractiveness of the area. It also demonstrates a public commitment to the area, that could leverage additional private and business investment. There is also an opportunity to claim the areas between buildings for public space, either in connecting the businesses to the parking at rear, or for public elements that invite human activity, such as seating areas and plazas. These spaces could be enhanced with public art, and they could host events or activities. Business and Building Conditions : Observations. Building conditions in downtown retail areas have a significant impact on how the area is perceived. The buildings in downtown Monticello vary greatly in style, size and condition. There are one and two story buildings intermixed. Most have large picture windows on the first floor, though a few do not. Some second story facades have windows facing the street, while others are blank walls. Some appear in good condition. Others do not. Treatments of windows, signage and displays varies greatly as well. Most survey respondents scored “Business Upkeep” a 3 of 5. Challenges. With building styles so varied, the condition of buildings becomes even more important in unifying the district. It is also necessary to attend to deferred maintenance, and renovation where possible in order to preserve the fine-grained pattern of buildings and Public Input Public Realm Conditions • Add benches, trees, more flowers • Create walking routes through the area • Identify connections to the river • Mark historic sites Public Input Building Conditions • Revitalize downtown buildings • Use wood and metal • Keep up buildings DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 10 storefronts. But we know that the collective investment needed in the buildings on Broadway Street may be quite significant. In buildings that are occupied and cash-flowing for the property owner, it can be difficult to justify tackling these improvements on a strictly market basis. Moreover, the expectations established by the previous planning process has led to disinvestment, because it proposed the eventual demolition of the storefront district. It will take some effort to build or restore a collective intent among property and business owners to reinvest in their buildings. And some outside financial incentives will probably also be needed to advance this goal. Opportunities. Downtown Monticello has a variety of businesses, and almost all storefronts are full and activate the street. There are some minor improvements that would go a long way – for example some basic guidelines for what signs should look like. Programs to improve the quality of storefront displays might also be a relatively low-cost way to build the attractiveness of the street and draw people into the businesses. DOWNTOWN MONTICELLO SMALL AREA PLAN Background Report: Retail Vitality April, 2017 11 Recommendations Downtown Monticello has the potential to be a commercial and activity destination for the City of Monticello and surrounding areas. The small area plan will offer a range of strategies to that end. A focus on retail vitality should be seen as a very important component of the overall revitalization initiative. While some retail vitality activities and programs can be costly, many are not—especially when compared with the cost of attracting large new development, or taking significant action to calm traffic behavior on the major thoroughfares that cross through the City. The following strategies are suggested as priorities for increasing the retail vitality of downtown Monticello, and enhancing its destination quality. Downtown Environment  Make it easier and more inviting to walk to the downtown core by improving connections between the downtown core and the community center and library to the south, and the parks and river to the north, so that visitors to any part of downtown find it easy to get to the Broadway storefront district.  Improve the pedestrian environment by adding stop signs and crosswalks at Broadway and Walnut; making it more comfortable to cross Pine Street at the Broadway intersection; and modernize and beautify streetscape treatments. District Identity  Build Downtown’s brand/identity: identify downtown as the Broadway Walnut area, and name it  Consider the development of some visual themes for the district that will contribute to a sense of identity as buildings are improved and enhanced.  Commit to the fine-grained character of the storefronts along Broadway and around the corner on Walnut. Establish appropriate design guidelines for the area, prevent interruption of this character, fill in gaps, and attend to building disrepair to prevent demolition.  Consider organizational growth to sharpen the focus on the Broadway Walnut area—either within existing organizations, or in a new one. The organizational focus should be on promoting the area as a whole, and identify things all businesses can do together to make the area a destination and generate interest  Activate sidewalks and plaza areas as much as possible, through outdoor seating, engaging public spaces, events, and so forth—so that the vibrancy of the area is visible to passersby. Business Support and Development  Consider the establishment of a program that supports architectural assessment of buildings, and offers financial support for rehabilitation investments that stabilize and enhance existing buildings  Consider the establishment of a façade improvement programs that offers financial support for investments that improve the visual appearance of buildings and district identity  Consider offering support for merchandising, with the goals of improving the attractiveness of window displays and store interiors  Address the quality of the store mix through initiating a retail recruitment program for the district, which would identify and attract key retailers that will be complementary to the existing stores  Increase housing in the downtown area. Growth in the number of people living in and around downtown will support neighborhood- scale retail (retail follows rooftops); and, a range of household types will contribute to greater diversity of retail stores as well as dining establishments EDA Agenda: 6/21/17 1 6. Consideration of Options to Modifying GMEF Loan Guidelines (JT) A. REFERENCE AND BACKGROUND: Staff is asking the EDA to consider which process if any, it would like to follow in addressing a request by Shred-N-Go to submit a GMEF application with less than the required 10 percent equity contribution for its proposed development project. As staff reviewed with the EDA at the June 14, 2017 meeting, Shred-N-Go would like to have as low a percent of equity as possible in its concept development proposal. Upon direction, staff consulted with the EDA attorney and her response was that the Guidelines can be waived for a particular project if that is the EDA’s preference. That said, it may also be a desire to make a change to the Guidelines providing more flexibility moving forward should other firms make similar application requests regarding equity contribution. In that case, a language change to the Guidelines allowing a range of “5 to 10 percent equity contribution is an appropriate consideration. A1. STAFF IMPACT: There is minimal staff impact in considering modifying the GMEF Loan Guidelines. A2. BUDGET IMPACT: There is a small budgetary impact due to the EDA’s consideration of modifying the GMEF Loan Guidelines as presented or in waiving the Guidelines for the Shred-N-Go proposal. The EDA attorney consult expenses will be covered via the Legal Services line item in the 2017 EDA budget. B. ALTERNATIVE ACTIONS: 1. Decision #1. Shred-N-Go - Motion to accept a GMEF Loan Application from Shred-N- Go with an equity contribution in the amount of 5 to 10 percent. 2. Motion to require that the GMEF Loan Applications meet the current 10 percent equity contribution requirement. 3. Decision #2. GMEF Loan Guideline Modification – Motion to direct staff to prepare a modification of the GMEF Loan Guidelines allowing a “range of 5 to 10 percent equity contributions for projects” as a consideration at a future EDA meeting 4. Motion to table discussion regarding a possible waiver of the Guidelines or any modification of the GMEF Loan Guidelines for further research. C. STAFF RECOMMENDATION: Staff recommends the EDA either modify the GMEF Loan Guidelines as discussed at a future meeting and/or direct staff to proceed with accepting a GMEF Loan application from Shred-N-Go with a range of 5 to 10 percent equity contribution as discussed at the July 14, 2017 meeting. The proposed waiver would accommodate one company’s project which may help it move forward. A change to the Guidelines would provide opportunities for other developments and firms to utilize a lower equity contribution in its financing. EDA Agenda: 6/21/17 2 The EDA attorney reiterated that there is not a requirement to hold a public hearing to modify the GMEF Loan Guidelines, so action could be taken at the regular July 12, 2017 meeting if the EDA so desires. D. SUPPORTING DATA: A. GMEF Loan Guidelines EDA Agenda: 06/21/2017 1 7. Consideration to Appoint a EDA Member to a Sub-Committee for the Adaptive Re- use or Sale of the Ellison Property. (JO/AS/JT) A. REFERENCE AND BACKGROUND: The EDA tabled this item at its regular June 14, 2017 meeting to allow a full contingent of members to be present for this consideration. The EDA is being asked to appoint a representative to a sub-committee established by the City Council to analyze and evaluate options for the adaptive re-use or sale of the Ellison property. The Ellison property is located at 707 West Broadway in Monticello. The property was offered to the City as donation by the family ownership, including the contents. The Ellison family has a long history, including that of civic organization and engagement, within the community. The Council has requested that a non-Council member of the EDA serve on the sub-committee, which will evaluate potential options moving forward. The committee would be charged with conducting a study on the feasibility of keeping and maintaining the building and property in support of the public good. Following is a list of elements of the study:  Research and identify uses for the property that result in a public benefit  Determine cost to update home and property to a level sufficient to support uses  Obtain assistance from a paid architect or other consultants as determined by the committee  Identify and acquire funding sources – grants, donations etc. supporting cost to update home  Identify annual cost of operation and maintenance along with revenue sources  Governance -- identification of committee or parties responsible for managing the facility operation, grounds and its contents.  Make a recommendation to the City Council as to feasibility. Is the public best served by selling the property or should it be kept for an adaptive re-use? B. ALTERNATIVE ACTIONS: 1. Motion to appoint an EDA Commissioner ________________ to the Ellison Property sub-committee. C. STAFF RECOMMENDATION: None EDA Agenda: 06/21/2017 2 D. SUPPORTING DATA: City Council Agenda Item, May 22nd, 2017 City Council Special Meeting Minutes, May 8th, 2017