IEDC Minutes 12-01-2020MINUTES
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Monday, December 1, 2020 — 7:00 a.m.
The meeting was held remotely.
Members Present: Joni Pawelk, Randy Skarphol, Kevin Steffensmeier, Steve Johnson, Wayne Elam,
Luke Dahlheimer, Andrew Tapper, Mike Carr, Elizabeth Calpas, Kari
Moorhouse, and Thomas Conboy
Members Absent: Brian Stumpf, Darek Vetsch, Dick Van Allen, Don Roberts, and Meghan Hanson
Liaisons Present: Jeff O'Neill, Jim Thares, Marcy Anderson, and Dave Tombers
1. Call to Order
Jim Thares started the IEDC meeting at 7:00 a.m.
2. Approve Minutes:
a. November 2nd, 2020 meeting minutes
ANDREW TAPPER MOVED TO APPROVE THE NOVEMBER 2ND. 2020
MEETING MINUTES. LUKE DAHLHEIMER SECONDED THE MOTION.
MOTION CARRIED, 11-0.
3. Consideration of Adding Items to the Agenda
Randy Skarphol requested the addition of restaurant recruitment be added to the agenda.
Joni Pawelk suggested that Randy Skarphol and Jim Thares further discuss the creation
of a restaurant recruitment sub -committee and/or defining goals and bring a proposal to
the IEDC to the January meeting. Skarphol and Thares confirmed.
4. Consideration of Membership for Expiring Terms
Jim Thares indicated that staff reached out to the members whose terms were expiring on
the IEDC to see if they were interested in serving an additional 3-year term. All
members, except Kari Moorhouse indicated that they would like to serve another term on
the commission. Thares noted that the IEDC would could fill the vacant position in early
2021. He indicated that several individuals have expressed interest in filling a term if an
opening occurred.
LUKE DAHLHEIMER MOVED TO RECOMMEND TO THE CITY COUNCIL THE
APPOINTMENT OF IEDC COMMITTEE MEMBERS ANDREW TAPPER, MIKE
CARR, THOMAS CONBOY, AND MEGHAN HANSON TO A NEW 3-YEAR TERM
ON THE IEDC. RANDY SKARPHOL SECONDED THE MOTION. MOTION
CARRIED, 11-0.
Industrial and Economic Development Committee Minutes — December 1, 2020 Page 1 1 4
Randy Skarphol noted that the IEDC has two vacant positions for student representation.
Skarphol asked Mike Carr if he had any updates on potential students interested in
serving on the IEDC. Carr noted the difficulty of the school year due to the pandemic and
noted he would continue working on filling those positions.
Joni Pawelk asked about recruitment of the position. Thares noted it would be posted on
the City's website.
5. _Consideration of Update on 2020 Housing Study
Jim Thares provided an overview of the 2020 Housing Study completed by MSA
Professional Services. The goals of the study were to understand the demand for styles of
housing and recommend general strategies to support housing needs and development.
The consultants did engage the public and stakeholders in the process. He noted that in
the staff report there is a link to the full housing study.
Joni Pawelk asked about next steps for the City pertaining to this study. Thares indicated
that it has been provided to several senior living and multi -family developers and is also
available on the City's website. Thares did not seen any immediate next steps but noted
the importance developers would have in reviewing the findings of the study.
Steve Johnson asked if the Study addressed limiting factors such as zoning, building
permits and fees, or affordability and how to alleviate those concerns to expand the
housing stock per the goals of the plan. Thares indicated the major limiting factor seems
to be affordability especially as it relates to the City's development fees. Thares
mentioned there are tools, such as Tax Increment Financing, to support housing
development efforts. Johnson further asked about zoning, lot size, and density related to
affordability. Thares mentioned that the consultant pointed out those factors related to
affordability but noted the high cost of land and materials. Andrew Tapper (also serves
on the Planning Commission) added that the City has been seeing many Planned Unit
Developments that offer flexibility from the base zoning code.
Kevin Steffensmeier noted frustration with a recent workforce housing project that was
denied. He pointed out that the Study advocates for more housing options, similar to the
one that was denied, inside the city. Thares noted the timing of the denied project was
such that the 2020 Housing Study was not yet completed, and thus there were questions
about the demand for various segments of housing. The City Council did not want to
rush into another residential multi -family project that required affordability subsidies
without first better understanding the market demand for that product. Steffensmeier
noted that a nearby multi -family housing development received Tax Increment Financing
(TIF) funding and he further stated that he did not understand how the City Council could
deny such a request because there was potentially too much supply. Jeff O'Neill clarified
that the project denial was tied to non -acceptance of the use of a significant amount TIF
public subsidy. The City Council didn't feel the proposal was right at that point and time
but noted things could change. O'Neill explained that the City is proactive and interested
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in participating in these types of projects.
Joni Pawelk noted the purpose of the IEDC was to create living wage jobs. It was a
concern that Monticello was surveyed in the study to have one of the lowest median and
mean incomes. It would be important to attract and retain living wage jobs. Thares
mentioned that Monticello is a regional hub with many retail choices that often don't
create high paying jobs. Steve Johnson also mentioned that the study utilized the
population within the City limits and if you utilized the trade area, the numbers would be
higher.
Jeff O'Neill also added that the Comprehensive Plan identifies the potential need to
promote the reuse of infrastructure in the older part of our community, where some of the
homes are ripe for redevelopment.
6. Reports (Verbal Reports):
a. Economic Development
Jim Thares provided an update on behalf of economic development as included on
the agenda. He also provided the prospect list and noted a couple new additions.
b. Planning Commission Agenda (attached)
Jim Thares provided a short review of the Planning Commission agenda as
attached to the agenda.
c. City Council
Jeff O'Neill noted that Lloyd Hilgart would be becoming mayor and Sam
Murdoff would be stepping into City Council. Mr. Murdoff was the Chair of the
Planning Commission. The City Council will be selecting the vacant City Council
position in January that Lloyd Hilgart left to assume the Mayor's position.
Jeff O'Neill noted his upcoming retirement and stated that Rachel Leonard would
begin that role. O'Neill will become City Administrator Emeritus over the next
couple months and help Ms. Leonard transition into her role.
O'Neill also mentioned that the Monticello 2040 Comprehensive Plan was
approved for adoption.
He also mentioned that the City would be submitting a grant application for a
competitive funding assistance program to MN -DEED. The program was created
through the efforts and lobbying of the Coalition of Utility Cities (CUC) as a
transition planning step supporting job development and tax base stabilization due
to the future decommissioning of the Xcel Monticello Nuclear Generating Plant
(MNGP).
O'Neill expressed his appreciation of being able to work closely with the IEDC
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over the many years of his service. He noted the key role that the IEDC plays in
discussing economic development issues and trends that impact the City.
d. Chamber of Commerce
Marcy Anderson encouraged shopping locally first. They are working hard to
promote Monticello businesses so they can continue to operate.
Anderson noted that the annual banquet was reorganized to be a virtual banquet
and that the Chamber would be having a changeover in Board leadership. The
virtual event wis scheduled for December 91h at 4:00 p.m. The event is free to
attend, but registration is required so that the Chamber can send guests the link to
participate. A silent auction is also happening to raise funds for the Chamber's
operations.
Joni Pawelk reminded the IEDC that if members have any recommendations on
the open IEDC position to direct those people to staff. An election of officers will
also occur in January.
7. Adjournment
RANDY SKARPHOL MOVED TO ADJOURN THE MEETING AT 8:00 A.M. LUKE
DAHLHEIMER SECONDED THE MOTION. MOTION CARRIED, 11-0.
Recorder: Jacob Thunander
Approved: January 5th, 2021
Attest:
, Economic Development Director
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