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IEDC Agenda 09-07-2021 AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, September 7, 2021 – 7:00 a.m. North Mississippi R oom, Monticello Community Center The meeting will be In-Person-Remote hybrid to accommodate those who prefer to minimize contact with others due to COVID -19. The North Mississippi Meeting Room at the MCC will be set up to allow attendees to socially spread out. Participants who choose to attend remotely will be able to do so via Go-To: Web Link: https://global.gotomeeting.com/join/294416277 Phone Dial In #: United States: +1 (571) 317-3112 Access Code: 294-416-277 Members: Chairperson-Randy Skarphol, Vice Chairperson Liz Calpas, Joni Pawelk, Brian Hudgins, Darek Vetsch, Kevin Steff ensmeier, Steve Johnson, Wayne Elam, Luke Dahlheimer, Dick Van Allen, Don Roberts, Andrew Tapper, Meghan Hanson, Thomas Conboy, Sarah Kortmansky, Eric Olson Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Marcy A nderson, Jolene Foss, Dave Tomb ers, Tim Zipoy 1. Call to Order 2. Approve Minutes: a. August 3, 2021 meeting minutes 3. Consideration of Ad ding I tems to the Agenda 4. Table Topic – 2020 State-Local Census-Demographic Information – A Deeper Dive, Megan Dayton, MN State Demographer’s Office 5. Consid eration of Manufact urer’s Recognition Event (s) (October 14, 2021) Updat e 6. Reports (Verbal R eports): a. Economic Development • Project Update – See Exhibit A • Prospects List – See Exhibit B b. Planning Commission Agenda (attached) – See Exhibit C c. City Council d. Wright County Economic Development Partnership • Business Ret ention & Expansion Visits e. Chamber of Commerce 7. Adjournmen t (8:00am) MINUTES INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, August 3, 2021 – 7:00 a.m. North Mississippi Room, Monticello Community Center Members Present: Chair Randy Skarphol, Vice-Chair Liz Calpas, Joni Pawelk, Brian Hudgins, Darek Vetsch, Steve Johnson, Wayne Elam, Luke Dahlheimer, Dick Van Allen, Don Roberts, Andrew Tapper Members Absent: Kevin Steffensmeier, Meghan Hanson, Thomas Conboy, Sarah Kortmansky Liaisons Present: Marcy Anderson, Jolene Foss, Rachel Leonard, Jim Thares 1. Call to Order Randy Skarphol called the regular meeting of the IEDC to order at 7 a.m. 2. Approve Minutes: • June 1, 2021, meeting minutes DAREK VETSCH MOVED TO APPROVE THE JUNE 1, 2021, MEETING MINUTES. MOTION SECONDED BY LIZ CALPAS. MOTION CARRIED UNANIMOUSLY, 11-0. 3. Consideration of Adding Items to the Agenda • American Rescue Plan Act (ARPA): Darek Vetsch said that Wright County has set aside $4,000,000 for cities based on 2019 population with goal of up to $400,000 grants for sewer & water improvements. The County and the County EDA are working on broadband improvements. 4. Table Topics a) 2021 MN Legislative Update – State Representative Marion O’Neill, District 29B: Representative Marion O’Neill attended the meeting and provided the legislative update for District 29B . In the last legislative session, there were 45 bills passed, mostly omnibus bills. A $52 Billion budget was approved for the 2022-2023 biennium . In addition, $8 Billion was passed onto local government units from Federal Government funding programs. Budget highlights include: • $21.4 Billion Education • $19 Billion Health & Human Services o Includes nursing homes and other basic services • $4 Billion Tax Relief o Includes PPP Conformity, Individual Income Tax Exemption for the first $10,000 earned in 2020 o $5 Million Investment Credit  Increased the general property tax levy from $100,000 to $150,000 which will help businesses • $2.6 Billion Surplus • $3.5 Billion Higher Education Bill (a $100 Million increase) o Funds 3 buckets, the state grant program, MState schools, and U of M Wright County Specifics: • Retroactive sales tax exemption for all fire supplies & materials • Housing Bill: eviction moratorium federal ended on 7/31/2021. MN has their own put into place to extend moratorium to extend until June 2022 with exceptions. $100 Million in housing appropriation bonds • MN Redevelopment fund MNDEED: o Authority provided to commissioner to use excess funds from other programs; In the future baseline budgets • I-94 3 or 4 lanes/new interchanges and past St. Michael to Clearwater 3 lanes and that is the last section. Everything will be done by fall 2021. • Section between Albertville and Monticello will start in 2023. • Community Energy Transition CET Funding should include Monticello • $20.5 Million in 2020 Bonding Bill for development of infrastructure 5. Consideration of Manufacturer’s Recognition Event(s) Format and Date: Update - Discussion Discussed the idea that due to the impacts of Covid, the recognition event should be open to other industries such as hospitals, fire departments, educators, front-line worker businesses, etc. The consensus is that these front-line workers are already being spotlighted nationally and that it is important to keep this recognition to manufacturing businesses locally. Date: Morning Breakfast Event at 7 a.m. October 7 or 14. Any suggestions on speakers at the event, please email Jim Thares. The first week in October is usually statewide manufacturing week. 6. Consideration of Proposed Amendments to IEDC Organizational and Membership Guidelines Jim Thares said that staff recommends that the IEDC approve the proposed amendment adding the Monticello school district representative as a standing Committee voting member. Adding the school district as a standin g member to the IEDC will help make the process for appointments to the committee unambiguous and seamlessly keep the school district involved as a voting member. JONI PAWELK MOVED TO APPROVE PROPOSED AMENDMENT LANGUAGE TO THE IEDC ORGNAIZATIONAL AND MERMBERSHIP GUIDELINES ADDING THE MONTICELLO SCHOOL DISTRICT REPRESENTATIVE AS A STANDING COMMITTEE VOTING MEMBER. MOTION SECONDED BY LIZ CALPAS. MOTION CARRIED, 11-0. 7. Reports (Verbal Reports): • Economic Development • Project Update: Jim Thares reviewed Exhibit A. • Prospects List : Jim Thares reviewed Exhibit B . • Building Permits Update: Jim Thares reviewed Exhibits C1 and C2. • Planning Commission Agenda (attached): Jim Thares reviewed Exhibit D . • City Council: Rachel Leonard provided updates. • Chelsea Commons: Council approved a purchase agreement for Outlot A, Cedar Street Addition, a 35.6-acre parcel which has been used for agricultural purposes for over 25 years. This parcel is situated within the geographic scope of the Chelsea Commons project. This acquisition will provide the City with additional control over the timing of the core public improvements, including the water feature, parkland, and transportation elements of the site, and also allow the City to strategically manage private development. • FiberNet: Renewed contract with Arvig for an additional 5 years for FiberNet. • Wright County Economic Development Partnership: Jolene Foss provided updates. • Attended a couple business retention visits with Jim Thares and will be scheduling additional visits in August. Thares encouraged members to attend the business retention visits. • Looking at doing a marketing study with the U of M Extension office, looking at what the needs are and where the re are gaps. • Desire to continue the learning luncheons. The next one will be September. It is free and open to everyone ; topic will be insights into new workforce trends. • Proposed new car wash in Monticello = $4.5 Million investment; loan request to be reviewed by WCEDP Loan Committee. • Chamber of Commerce: Marcy Anderson provided updates. • Chamber is hiring an office staffer. • August 17: Chamber Luncheon. 8. Adjournment: DAREK VETSCH MOVED TO ADJOURN THE MEETING AT 8:18 A.M. MOTION SECONED BY LUKE DAHLHEIMER. MOTION CARRIED UNANIMOUSLY, 11-0. Recorder: Beth Green Approved: August 3, 2021 Attest: Jim Thares, Economic Development Director IEDC Agenda: 09/07/21 1 6. Project Update A. Headwaters’ Senior Affordable Housing Concept Proposal: Headwaters’ Development is proposing to develop a senior housing project consisting of one level twin homes and apartment units on EDA owned land along 7th Street West. The proposal envisions 60 twin home units and 100 multi -family style apartment units. Both housing styles would be constructed simultaneously. Headwaters is proposing to 40 percent of the units be offered income qualified households. The EDA reviewed Headwaters TIF Pre-Application and provided comments at the regular August 11, 2021 meeting. The estimated cost of the full development proposal is $28,000,000 to $33,000,000 +/-. Headwaters’ goal is to start on the proposal in the spring of 2022. They recently opened the 96-unit Willows Landing Assisted Living facility at 9872 Hart Boulevard, Monticello, MN. B. Sota Car Wash Development Proposal: The EDA recently approved a $140,000 GMEF loan to help fill a funding gap for the $4,619,000 +/- development. Other f unding entities include: CorTrust Bank, Central MN Dev Corporation, and the IF (Initiative Foundation). The proposal consists of redevelopment of a blighted site located at 1301 Cedar Street (former Danner Truck Terminal and garage) with an 8,500 sq. ft. building and purchase and installation of equipment. The new generation car wash technology allows up to 120 cars to be washed every hour. The facility will create 4 fte jobs and 4 pte jobs. The developer is expected to start demolishing existing structures in mid-September with new construction activities to occur shortly thereafter. C. Deephaven Development (Chelsea Commons): Deephaven completed the first phase 54- unit apartment building in July 2021 and immediately started the second phase 61 unit building thereafter. Per the developers’ recent feedback, the lease up of both phases one and two has been very strong, so they have pulled the permit for the phase three 58 unit building and expect to finish both follow on phases in 2022. D. Block 52 Redevelopment Update: TEDI and TED Grant funding applications were submitted to MN -DEED and MN -DOT respectfully on 8-27-21. The TEDI Grant application seeks $620,000 to connect Walnut Street to River Street. The TED Grant submittal seeks $469,000 to revise the NW corner of the MNTH#25 and CSAH 75 Intersection to allow safer turning movements and improve clear view triangle site lines. Both of the grant programs are competitive with limited funding. If the either or both of the City’s submittals are awarded in late 2021, they would be structured to schedule construction activitie s to be completed simultaneously with the redevelopment of Block 52 which is proposed as a residential and commercial mixed -use development. E. Other Development Projects: Construction in Progress  Jensen Precision Machining = 5,200 sq. ft. expansion (Dundas C ircle) in progress  Nuss Truck & Equipment facility = 33,000 sq. ft. new construction (Chelsea Road West) IEDC Agenda: 09/07/21 2  Healing Moments Counseling Office = 5,000 sq. ft. new construction (Cedar Street) Date of  Contact Company Name Business Category Project Description Building‐Facility Retained  Jobs New  Jobs Total Investment Project  Status 11/12/2016 MN DEED Prospect Metal Mfg.Exist Facility + Equip 65,000 sq. ft. 0 55 ‐  100 $2,500,000 Active  Search 11/17/2016 Project Novus v2 Precision Machining New Facility Constr. + Equip 58,000 sq. ft. 205 60 $10,831,000 Constructio n 6/22/2017 Project #6580 Metal Mfg.New Facility Constr.70,000 sq. ft. 0 49 $5,480,000 On Hold 10/17/2017 Project Ted Equipment Mfg.New  Equipment N/A 45 ? $650,000 Concept  Stage 5/22/2018 Karlsburger Foods Food Products Mfg.Facilty Expansion 20,000 sq. ft. +/‐42 10 to  20 $4,500,000 Act‐Plan‐Fin 7/30/2018 Project Saturn Plastic Products Mfg.New Construction 5,000 +/‐ sq. ft. 4 +/‐$830,000 Active  Search 8/10/2018 Project Jupiter Metal Mfg.New Construction 5,000 sq. ft. +/‐3 $800,000 Active  Search 11/29/2018 Project Blitzen Precision Machining Exist Bldg or New Const.12,000 sq. ft. 10 $1,200,000 Concept  Stage 12/14/2018 Project Comet Commercial Bus New Const.1,700 sq. ft. +/‐7 $700,000 Active  Search 3/28/2019 Project Nutt Co‐Working Space Existing Building ? ? ? ? Concept  Stage 5/9/2019 Project FSJP Light Mfg‐Res. Lab New Construction 20,000 sq. ft. 0 20 +/‐$1,400,000 Active  Search 8/16/2019 Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active  Search 9/19/2019 Project Kata Service New Construction 22,000 to 35,000 sq.  ft 0 25 $7,900,000 Concept  Stage 1/20/2020 Project Panda v3 Service‐Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active  Search 3/31/2020 Project GiaSaurus Medical Prod. Mfg.New Construction 175,000 sq. ft. 0 75 $50,000,000 Active  Search 8/27/2020 Project Nuss Combo Service‐sale New Construction 30,000 sq. ft. 0 20 to  30 $3,500,000 Concept  Stage 12/23/2020 Project TD Industrial Existing or New  Construction 10,000 to 15,000 sq.  ft 05 to 7 $800,000 Concept  Stage 11/5/2020 Project Flower Office Existing 7,000‐8,000 sq. ft. 0 12 $750,000 Concept  Stage 2/16/2021 Project Cold Industrial‐Warehouse‐ Distri New Construction 80,000 sq. ft. 0 21 $12,000,000 Concept  Stage 2/18/2021 Project Shay Lounge‐Restaurant Existing Bldg.2,200 0 4 $150,000 Concept  Stage 2/18/2021 Project Counsel Office‐Service New Construction 5,600 sq. ft. 24 3 $1,120,000 Concept  Stage 3/19/2021 Project Orion Warehouse‐Distributi on New Construction 832,500 sq. ft. 0 500 $125,000,000 Active  Search 4/23/2021 Project Emma Light Ind‐Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active  Search 6/3/2021 Project FCW Service New Construction w Redev 4,000 sq. ft. 0 9 $4,250,000 Concept  Sta 6/16/2021 Project LJBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 12 to 15 $2,000,000 Act Search 6/30/2021 Project Ecosphere Industrial Tech Mfg.New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search 7/29/2021 Project BA710 Lt Assem‐Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active   Search 8/12/2021 Project Integrity Precision Mfg.New Construction 100,000 sq. ft. 0 60 $12,750,000 Active  Search Contacts:  M = 01    YTD =  25 PROSPECT LIST                               09/07/2021 AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, September 7th, 2021 - 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Paul Konsor, Andrew Tapper, Alison Zimpfer, Eric Hagen and Teri Lehner Council Liaison: Charlotte Gabler Staff: Angela Schumann, Steve Grittman (NAC), and Ron Hackenmueller 1. General Business A. Call to Order B. Consideration of approving minutes a. Special Meeting Minutes – July 6, 2021 b. Regular Meeting Minutes – August 7th, 2021 C. Citizen Comments D. Consideration of adding items to the agenda E. Consideration to approve agenda 2. Public Hearing A. Public Hearing – Consideration of Request for Conditional Use Permit for an Automotive Wash Facility in a B-4 (Regional Business) District Applicant: Rosa Morquecho/Take 5 Car Wash B. Public Hearing – Consideration of a Request for Rezoning to Planned Unit Development, Development Stage Planned Unit Development and Preliminary Plat for 94 Townhome Units in the B-4 (Regional Business) District Applicant: Monticello Meadows Townhomes, LLC/Peter Stalland C. Public Hearing – Consideration of a Request for Interim Use Permit to allow Extraction/Excavation of Materials in a B-3 and B -4 Districts Applicant: City of Monticello D. Public Hearing - Consideration of a Request for Comprehensive Plan Amendment for adoption of the Chelsea Commons Small Area Plan Applicant: City of Monticello 3. Regular Agenda A. Consideration of the Community Development Director’s Report 4. Added Items 5. Adjournment Demographic Change in Minnesota Megan Dayton, Minnesota State Demographic Center September 6, 2021 From the 2020 Census: Population growth fully attributable to BIPOC groups Population Change by Major Race Groups, 2010-2020 2010 2020 Change 2010-2010 Total population 5,303,925 5,706,494 402,569 White non-Hispanic 4,405,142 4,353,880 (51,262) American Indian non-Hispanic 55,421 57,046 1,625 Asian/Pacific Islander non-Hispanic 214,856 300,081 85,225 Black/African American non-Hispanic 269,141 392,850 123,709 Hispanic/Latino (any race)250,258 345,640 95,382 Other race non-Hispanic 5,947 20,963 15,016 Two or more races non-Hispanic 103,160 236,034 132,874 Source: U.S. Census Bureau, 2010 and 2020 Censuses Minnesota residents belonging to BIPOC race groups are a growing share of the population Source: U.S. Census Bureau, 2020 Census •White non-Hispanic population declined by 51,000 residents •BIPOC populations grew by 454,000 jointly, now making up 23.7% of the state’s populationWhite 76.3% Am. Indian 1.0% Asian 5.3% Black 6.9% Hispanic 6.1% Other race 0.4% Mulitriacial 4.1% Multiracial populations grew the fastest this decade Source: U.S. Census Bureau, 2010 and 2020 Censuses American Indian Asian Black Hispanic/Latino Other race Two or more races - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2010 2020 Population Growth in Minnesota Percent Change, Total Population, 2010-2020 Rank County Numeric change Percentage Change 1 Carver 15,880 17.4% 2 Scott 21,000 16.2% 3 Wright 16,637 13.3% 4 Olmsted 18,599 12.9% 5 Washington 29,432 12.4% 82 Renville (1,007) -6.4% 83 Lake of the Woods (282) -7.0% 84 Lac qui Parle (540) -7.4% 85 Kittson (345) -7.6% 86 Yellow Medicine (910) -8.7% 87 Koochiching (1,249) -9.4% Largest Gains (Percentage) Largest Losses (Percentage) Source: U.S. Census Bureau, 2010 and 2020 Censuses Numeric Change, Total Population, 2010-2020 Largest Gains (Numeric) Largest Losses (Numeric) Rank County Numeric change Percentage Change 1 Hennepin 129,140 11.2% 2 Ramsey 43,712 8.6% 3 Dakota 41,330 10.4% 4 Anoka 33,043 10.0% 5 Washington 29,432 12.4% 83 Pine (874) -2.9% 84 Yellow Medicine (910) -8.7% 85 Renville (1,007) -6.4% 86 Koochiching (1,249) -9.4% 87 Winona (1,790) -3.5% Source: U.S. Census Bureau, 2010 and 2020 Censuses •51 counties gained population. •36 counties lost population. •The 7-county Twin Cities metro added 313,537 people, 78% of the state’s growth. Population change by county (numeric), 2010-2020 Source: U.S. Census Bureau, 2010 and 2020 Censuses Minnesota’s fastest growing cities, 2010-2020 Rank City Population added 2010-2020 1 Minneapolis 47,376 2 St. Paul 26,459 3 Rochester 14,626 4 Lakeville 13,536 5 Woodbury 13,141 6 Blaine 13,036 7 Brooklyn Park 10,697 8 Plymouth 10,450 9 Maple Grove 8,686 10 Apple Valley 7,290 11 Bloomington 7,094 12 Shakopee 6,622 13 Moorhead 6,440 14 Otsego 6,395 15 Savage 5,554 16 Edina 5,553 17 Mankato 5,179 18 Prior Lake 4,821 19 St. Louis Park 4,760 20 Rogers 4,698 Source: U.S. Census Bureau, 2010 and 2020 Censuses Trends in Aging and Workforce 11 85 55 71 67 47 91 ----- 1950s 60s 70s 80s 90s 00s 10s 20s 30s 40s 2050s Number of additional older adults, age 65+ (thousands) This decade and next: Unprecedented increases in MN’s 65+ population Unprecedented increases in MN’s 65+ population 85 55 71 67 47 91 285 335 97 66 56 1950s 60s 70s 80s 90s 00s 10s 20s 30s 40s 2050s Change in older adults, age 65+ (in thousands) Sources: U.S. Census Bureau, MN State Demographic Center MILLENNIALS GEN X BOOMERS Right now Boomers are leaving the workforce FIRST BOOMER TURNS 65 YOU ARE HERE FIRST BOOMER TURNS 80 LAST BOOMER TURNS 65 LAST BOOMER TURNS 80 2010 2015 2020 2025 2030 2035 2040 2045 MN gained fewer people in 2019 from migration 19911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019Net Domestic and Inernational Migration Minnesota, 1991-2019 International net domestic net net migration 2019: Nearly ½ of Baby Boomers have now retired; MN labor force much younger now than a decade ago Source: ipums.org from 2019 U.S. Census Bureau data (400,000) (200,000) - 200,000 400,000 600,000 800,000 16-19 20-29 30-39 40-49 50-59 60-69 70-79 80+ Labor Force Status by Age In the workforce Not in the workforce Little-to -no growth in working-age population in MN over the next 15 years Source: Minnesota State Demographic Center Projections 18 Minnesota’s labor force growth is projected to slow further over the next 10 years 40,000 54,000 34,000 21,000 7,000 6,000 6,000 9,000 13,000 15,000 15,000 - 10,000 20,000 30,000 40,000 50,000 60,000 1980-19901990-20002000-20102010-20152015-20202020-20252025-20302030-20352035-20402040-20452045-2050Source: U.S. Census Bureau (1980—2015) & MN State Demographic Center Projections (2015-2045) Twin Cities working-age population projected to grow modestly (50,000) - 50,000 100,000 150,000 200,000 250,000 Change in working age pop 2018-2038 Modest growth of the workforce overall is attributable to the addition of BIPOC workers Source: ipums.org from 2019 U.S. Census Bureau data - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 1990 2000 2010 2019 Minnesota’s Labor Force, 1990-2019 White BIPOC Mothers more likely to experience long-term impact of COVID- 19 on jobs (U.S.) Source: Minneapolis Federal Reserve Bank Telework as a response to COVID-19 41.6% of Minnesota households report at least one teleworker, 38.4% for the U.S. overall Source: U.S. Census Bureau, Household Pulse Survey Percentage of adults living in households where at least one adult has substituted some or all of their typical in-person work for telework because of the coronavirus pandemic Source: U.S. Census Bureau Household Pulse Survey, Week 25, March 2021. Strategies to address the slowdown in labor force growth •Institutionalize training your own and/or make it easier for employees to gain skills in an outside setting •Recruit from other states and from abroad •Raise wages –slowdown in LF growth is structural •Create flexible schedule options •Options for workers to telework •Invest in technology Key Takeaways Is Demography Destiny? •Fewer school-age children relative to older adults will mean pressures to shift resources (public, nonprofit) from younger to older, potential impacts on education/training resources •Slowing-labor force growth and increasing demands of job market will mean that training and retaining workers will be essential to future economic growth •Increasing diversity has its own growth momentum (through births) Keep in touch Email: demography.helpline@state.mn.us Website: mn.gov/demography