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IEDC Agenda - 06/07/2022AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, lune 7, 2022 — 7:00 a.m. Monticello Community Center Participants who choose to attend remotely may join via Microsoft Teams: Click here to join meeting; Teams Members: Chairperson Liz Calpas, Vice Chairperson Sarah Kortmansky, Joni Pawelk, Bill Fair, Darek Vetsch, Kevin Steffensmeier, Steve Johnson, Wayne Elam, Luke Dahlheimer, Don Roberts, Andrew Tapper, Randy Skarphol, Eric Olson, Kathleen Massmann, Randi Meyer Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Marcy Anderson, Jolene Foss, Dave Tombers, Tim Zipoy 1. Call to Order 2. Approve Minutes: a. May 3, 2022 meeting minutes 3. Consideration of Adding Items to the Agenda 4. Table Topic— Integrated Marketing and Communication Plan (IMCP) Report/Templates 5. Reports (Verbal Reports): a. Economic Development • Prospects List b. Planning Commission Agenda (attached) c. City Council d. Wright County Economic Development Partnership (WCEDP) e. Chamber of Commerce 6. Adjournment (B:OOam) MINUTES (Draft) INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, May 3, 2022 — 7:00 a.m. Monticello Community Center, North Mississippi Room Participants who chose to attend remotely joined via Microsoft Teams. Members: Vice Chairperson Sarah Kortmansky, Joni Pawelk, Bill Fair, Steve Johnson, Wayne Elam, Luke Dahlheimer, Don Roberts, Andrew Tapper, Randy Skarphol, Eric Olson Liaisons: Rachel Leonard, Jim Thares, Marcy Anderson, Jolene Foss 1. Call to Order Vice -President Sarah Kortmansky called the meeting to order at 7:02 a.m. 2. Approve Minutes: WAYNE ELAM MOVED TO APPROVE THE MAY 3. 2022. MINUTES. MOTION SECONDED BY ANDREW TAPPER. MOTION CARRIED UNANIMOUSLY. 3. Consideration of Adding Items to the Agenda None. 4. Consideration of Recommending Approval of New Member Economic Development Director Jim Thares presented nominee Randi Meyer qualifications. RANDY SKARPHOL MOVED TO APPROVE RANDI MEYER AS A NEW MEMBER OF THE INDUSTIAL & ECONOMIC DEVELOPMENT COMMITTEE. MOTION SECONDED BY WAYNE ELAM. MOTION CARRIED UNANIMOUSLY 5. Table Topic — Legislative Update Bruce Nustad, President of MN Retail Association, provided a legislative update of Unemployment Insurance affecting retailers. The pandemic produced a drain on retailers and industrial operations. In 2021 the Federal Government gave funds to states for unemployment. Minnesota legislators debated where exactly how to utilize the funding for about a year. The legislators just passed a bill on Friday afternoon (04-29-22) resolving the funding allocation impasse. A portion of the funding will be set aside for groups including first responders, front line workers, medical staff, and retail employees. 6. Reports (Verbal Reports): a. Economic Development Prospects List Jim Thares, Economic Development Manager, provided an overview of prospects highlighted on the staff report. b. Project List Jim Thares, Economic Development Manager, provided an overview of current projects highlighted on the staff report including UMC completion of addition; project EMMA II — light industrial assembly; project Cougar— precision Machining Mfg.; Nuss is complete; Washburn to be presented to TIF the Planning Commission May meeting; project Nutt — co -working space. c. Planning Commission Agenda (attached) Mr. Thares provided an overview of the Planning Commission Regular Meeting agenda scheduled for May 18th, 2022. d. City Council Rachel Leonard, City Administrator, presented an update on recent Council actions including approving preliminary and final plat for Spaeth Third Addition; Conditional Use Permit for PUD on an existing restaurant; valuation of TIF District 1-42 and 1-43; Grant application for WiHa Tools of a job creation Fund; TIF funding for Block 52. e. Wright County Economic Development Partnership (WCEDP) Update by Jolene Ms. Foss provided an update of highlighting upcoming Capacity Building Workshop; CPO Class Trade Show May 251h; Legislative update June 3051, September 131h - 201h Annual Golf Tournament. f. Chamber of Commerce Marcy Anderson, Chamber of Commerce Director, highlighted the Chamber move to 118 West 6th Street, Suite B.; Royalty Program — 6 candidates; Industry Tours following the Chamber Lunch June 21St; Mentoring Program; Golf Tournament May 191h; Walk and Roll June 11th; Taking applications for Taste of Monticello; noted the upcoming Riverfest July14-17tH 7. Adjournment JONI PAWELK MOVED TO ADJOURN. LUKE DAHLHEIMER SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY. MEETING ADJOURNED AT 7:40 A.M. Recorder: Vicki Leerhoff Approved: June 8, 2022 Attest: James Thares, Economic Development Manager y Download AV CHECK OUT OUR BUSINESS INCENTIVES! Over 35+ businesses have used incentives to build and expand in Monticello! �t I aCIOF Montiicefflo ACCESS TO CAPITAL AND FINANCIAL INCENTIVES Monticello wants to invest in your future! Whether you're looking to start a new business, expand your operations, or anything in-between, there is a wide range of local, regional, and federal financial assistance programs available to help. BUILDING STRONG RELATIONSHIPS Local and regional relationships are the strength of our community. These relationships allow our team to help connect you with the right financial incentives, assistance, and guidance for your business. Together with great places and great people, Monticello provides an opportunity for a good life and great business! Visit our website for more information on how to access financial incentives: ci.monticello.mmus/266/Community- Economic- Development 'rIF05007o CITY OF Monticello MONTICELLO LOCAL INCENTIVES TAX INCREMENT FINANCING (TIF): Tax Increment Financing (TIF) assistance to businesses and development projects may be available for the purpose of creating new jobs, increasing the tax base and eliminating blighted and substandard structures. The without TIF, as well as other statutory requirements, it can be used for land write-downs and/or site improvements as mutually agreed upon by the City and the business/developer. GREATER MONTICELLO ENTERPRISE FUND (REVOLVING LOAN FUND): The City of Monticello EDA offers a revolving loan to assist industrial businesses with financing property acquisition and development or machinery and equipment purchases. The maximum loan amount cannot exceed 50 percent of the "Fund" balance. Typical rates are up to two percent below prime rate (based on loan approval date). Real estate financing can be amortized up to 30 years with a 10th year balloon (end of 10th year) payment. Machinery and equipment can be amortized over a 5 to 7 year period. Loan amounts may range from $100,000 to $500,000. All loans require appropriate collateral and personal guarantees. MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT (SCDP) expansions and projects featuring job creation and/or retention interest rate of three percent. Real estate terms can be structured as a 10- The City of MontiCE year fully amortizing loan or a balloon structure, amortized over 30 years with=seeks t0 Create a balloon payment at the end of the 10th year. Typical loan amounts range 'partnerships with from $50,000 to $250,000. Not more than 30 percent of the project's costs can be borrowed from this fund private investors mn.gov/deed/government/financial-assistance/community-funding/ and grant funding small-cities.jsp available. WRIGHT COUNTY INCENTIVES Subordinated gap financing loans are offered to encourage industrial and commercial development. Loan amounts range from $5,000 to $50,000 with interest rates at prime plus three percent and a minimum rate of six percent. Loan terms shall not exceed that of the primary lender; typically 5 to 15 years. Use of loan proceeds may include property acquisition or rehabilitation as MINNESOTA STATE INCENTIVES MINNESOTA INVESTMENT FUND (MIF): The Minnesota Department of Employment and Economic Development (DEED) offers a revolving loan to assist businesses expanding and creating new jobs. Funds are awarded to the city, who provides loans to assist expanding businesses. Interest rates are typically negotiated with terms matching the useful life of the asset being financed. Loans require appropriate collateral and personal guarantees. The maximum amount of funding is typically $500,000, although in some cases, more than one governmental entity can apply for funds for the same project thereby increasing the available dollars for a project. mn.gov/deed/business/financing-business/deed-programs/mif/ The Initiative Foundation, in partnership with MN -DEED, offers several financing programs to businesses with the goal of creating new jobs, strengthening communities and diversifying local economies. Specific programs include: technology based and green businesses as well as value added manufacturing. Loan amounts range from $100,000 to $500,000 per project with the rates and terms varying based on the program. mn.gov/deed/business/starting-business/additional-resources/ This MN -DEED performance based program is available to businesses engaged in manufacturing, warehousing, distribution and technology - to $1 million for creating or retaining high -paying jobs and for constructing or renovating facilities or making other property improvements. The performance contract is between the company and the State (MN -DEED). The City is required to endorse the project through a resolution prior to grant submittal to the State. mn.gov/deed/business/financing-business/deed-programs/mn-jcf/ 0-AvirAf CITY OF Monticello POPULATION INCREASE County bel 2010-2040. MINNESOTA STATE INCENTIVES Launch Minnesota is a statewide collaborative effort to accelerate the growth of startups and amplify Minnesota as a national leader in innovation. The initiative includes a variety of funding opportunities such as innovation grants, angel tax credits, and crowdfunding opportunities. mn.gov/launchmn/capital The program provides sales tax exemptions for up to 12 years to eligible existing business are located in Greater Minnesota (outside the Twin Cities 7 -County metro area) that meet specified job creation and wage level eligibility requirements. joinusmn.com/deed/business/financing-business/tax-credits/greater- mn-job-expansion/index Jsp REGIONAL NON-PROFIT INCENTIVES CENTRAL MINNESOTA DEVELOPMENT COMPANY (CMDC): CMDC is a private non-profit certified development company established to provide financing to small and mid-sized businesses utilizing the SBA 504 Loan Program. Benefits include lower down payments, longer terms, below market, fixed rates and rapid turnaround. cmdcbusinessloans.com MINNESOTA BUSINESS FINANCE CORPORATION (MBFC): MBFC, a private non-profit certified development company, offers fixed rate, low interest SBA 504 loans as well as complete packaging for new and expanding businesses. Great service and fast response is their hallmark. mbfc.org FEDERAL INCENTIVES USDA RURAL DEVELOPMENT LOAN: The US Department of Agriculture offers several finance programs for communities, businesses, and lenders. A popular program is the Business and Industry Loan Guarantee Program in which the USDA offers loan guarantees to lenders who finance rural businesses. rd.usda.gov/programs-services ciry OF �i Monticello The cost of doing business in Monticello is lower than the surrounding communities of Buffalo, St. Micheal, Albertville, Otsego, and Big Lake CITY OF Monticello CREDITS / EXEMPTIONS This program administered by MN -DEED provides incentives to investors or focused on high technology or new proprietary technology. mn.gov/deed/business/financing-business/tax-credits/angel-tax- credit/ Businesses that buy or lease qualifying equipment (machinery and equipment used in manufacturing) for use in Minnesota are eligible for an upfront exemption from Minnesota State and local sales or use taxes. revenue.state.mn.us/capital-equipment-exemption sq. ft. and invest $30 million qualify for sales tax exemptions for 20 years on computers and servers, cooling and energy equipment, energy use and software; and they pay no personal property tax. A requirement is the project must be completed in 48 months start to finish. mn.gov/deed/business/financing-business/tax-credits/data-center- credit/ This program offers a 20 percent state tax credit for qualified historic rehabilitations and parallels the existing federal rehabilitation tax credit. https://mn.gov/admin/shpo/incentives/state/ Businesses with qualifying research and development (R&D) expenses in Minnesota can obtain up to 10 percent of qualifying expenses up to $2 million and 2.5 percent for expenses above that level. C Corporations, partnerships and S corporations are eligible to claim the credit through the MN Department of Revenue. mn.gov/deed/business/locating-minnesota/research-development/r- d-tax-credit.jsp AO CITY OF Monticello • ACCESS TO TALENT Building a facility is only the start. Running your business relies on the right combination of skilled workers. Monticello boasts an increasing population and workforce as well as direct access to potential workforce resources such as partnerships with surrounding colleges, universities, and technical programs, as well as providing great connection to surrounding areas including the Twin Cities Metro. 90K 15+ 5+ 35 MIN Population Universities Technical Drive to within 15 min. & Colleges Colleges Minneapolis Drive within 35 min. within 35 min. Partnerships with Local High School v LOCAL SCHOOLS % PROGRAMS Monticello has a top performing school system with direct access to the developing workforce. Connect with the Monticello School District 882 through partnerships, education, training opportunities and internships. 94% TOP 20% 4,000+ Graducation Reading and Students High School Math Proficiency Enrolled Rate Scores AL - CITY OF Me, W. - -onticello Mum qV First things first, YOU NEED A HOME! Not just a facility, you need a home for your manufacturing/industrial business. A place you can build your business, with friends who can help you grow and be successful. Relationships that Feel Like Home. Monticello is invested in making sure this is the right home for you and your business. With business incentives (snapshot inside) and direct access to City staff, we want to make sure Monticello feels like a place that is invested in your long- term success. We have a variety of available spaces and land. Let's work together to find one that's just right for you! 9 City -Owned Properties 0 Privately -Owned Properties GET FUNDED! Financial Institutions and Commercial Lending Resources Right in Monticello: North American Banking Company Carlson Capital Management CorTrust Bank • Premier Bank RiverWood Bank • Well Fargo U.S. Bank • Liberty Bank Minnesota Sherburne State Bank Thrivent Fiancial • U First Financial Amerprise Financial • Primerica Financial Services • Huntington Bank • RZ Financial The City of Monticello also has partnerships with regional investors. Let's connect you with the right resources and relationships! Passenger Rail/Light Rail Runs to the Twin Cities BNSF rail line A class 1 freight railroad that connects north to St. Cloud and South to the Twin Cities. CHECK OUT OUR BUSINESS INCENTIVES! TAX INCREMENT FINANCING (TIF) • Purpose of creating new jobs/increasing tax base. GREATER MONTICELLO ENTERPRISE FUND (REVOLVING LOAN FUND) For property acquisition, development, or machinery and equipment purchases. Upt to 2% below prime rate. 30 years with 10 year balloon. • Amounts from $100,000-$500,000 TAX ABATEMENT New developments that increase the tax base and create jobs. MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET-ASIDE REVOLVING LOAN FUND • Start-ups, expansions and projects featuring job creation and/or retention. Rates less than 2% below prime with a minimum interest rate of 3%. Amounts from $50,000 to $250,000. • No more than 30% of the project's costs can be borrowed. MINNESOTA INVESTMENT FUND • Business expansion and creation of new jobs. Up to $500,000 JOB CREATION FUND • Manufacturing, warehousing, distribution and technology -related industries. • Up to $1 million WRIGHT COUNTY PARTNERSHIP REVOLVING LOAN FUND For real property acquisition, rehabilitation, or purchase of machinery and equipment. Amounts from $5,000 to $50,000 INITIATIVE FOUNDATION • Technology-based businesses, green businesses, and value added manufacturing. Amounts from $100,000 to $500,000 CENTRAL MINNESOTA DEVELOPMENT COMPANY • Small and mid-sized business Benefits include lower down payments, longer terms, below market, fixed rates and rapid turnaround. MINNESOTA BUSINESS FINANCE CORPORATION • New and expanding businesses Offers fixed rate, low interest SBA 504 loans MINNESOTA ANGEL TAX CREDIT PROGRAM: Startup and emerging companies focused on high technology or new proprietary technology CAPITAL EQUIPMENT TAX EXEMPTION: • Businesses that buy or lease qualifying equipment (machinery and equipment used in manufacturing) V ou have a financing leneck? How can we help? CITY OF Monticeflo NA I UNE B SINESS a between Highway 94 and Highway 25, and 2 miles from Highway 10!„, 45MIN From St. Paul Minneapolis, 20MIN From St. Clou Regional AirF Monticello serves as a gateway to the Twin Cities metro area and a major connection to northern Minnesota adventures. Job opportunities are endless and growing. Reach your career goals during the day and enjoy all that the outdoors have to offer at night. Get connected with business, nature, and a fully, connected life. NATURE IN YOUR BACKYARD Monticello is located right along the Mississippi River with over 17 miles of trails to explore. Plus even more adventures to be had at Bertram Chain of Lakes Regional Park showcasing hiking, cabins, lakes, and fun! A ROCK WALL AND WATERPARK! Enjoy nature -related activities all year round or when the weather doesn't cooperate, take advantage of indoor amenities like a rock climbing wall and water park located inside the City's community center. Top -Rated Public Schools Lowest Taxes 30+ in the County City Parks Low Crime Rates 1 of the Few Cities in the US with Multiple Fiber Optic Providers 17+ Miles of Biking 10K Acres of State & & Hiking Trials Regional Parkland ...................................................................................................................................... GET CONNECTED! Learn More: www.ci.monticello.mn.us CITY OI monticeflo f 1IS c I EVENTS, ART, & CULTURE Connectivity through creativity. Downtown Monticello, covered in art and bursting with culture, is a vibrant, invigorating space where people enjoy spending time and being active. Events like biking in the Walk and Roll, music on the Mississippi River during RiverFest, and art collaboration with MontiArts, keep our community connected all year long. TOP RANKED - SCHOOLS ': Monticello has a 94% graduation rate and is ranked within the top 20% of all Minnesota schools in reading and math proficiency. With a 17:1 student to teacher ratio, access to teachers, and connections that offer unique opportunities, start your child off on the right step. ENDLESS CAREER OPPORTUNITIES Even with a small town feel, Monticello offers big time opportunities. The City houses companies ranging from large technology -driven manufacturing to healthcare and innovative energy. ADVANCED HEALTHCARE Pr, An essential aspect to quality of life living in a town the size of Monticello is access to quality healthcare. Located right in Monticello is CentraCare Hospital home to state -of -the art technology and expert providers. CONNECTED®r BUSINESS f. COMMUNITY The City works to make Monticello feel like home, starting with relationships. Get connected with a network of business leaders, peers, supportive services, and leadership opportunities. Learn More: www.ci.monticello.mn.us Date of Contact L/12/2016 L/17/2016 /22/2017 /22/2018 1/29/2018 12/14/2018 3/28/2019 5/9/2019 8/16/2019 9/19/2019 1/20/2020 8/27/2020 12/23/2020 11/5/2020 06/03/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet PROSPECT LIST Company Name Business Category Project Description MN DEED Prospect Metal Mfg. Exist Facility + Equip Project Armstrong Precision Machining New Facility Constr. + Equip UMC Co -Working Space Project #6580 Metal Mfg. New Facility Constr. Karlsburger Foods Food Prod uc Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. 06/03/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stage Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20+/- $1,400,000 Active Search Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active Search Project Kata Service New Construction 22,000 to 35,000 sq. 0 25 $7,900,000 Concept Stage ft. Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active Search Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 20 to $3,500,000 Almost Done 30 Project TO Industrial Existing or New Construction 10,000 to 15,000 sq. 0 5 to 7 $800,000 Concept Stage ft. Project Flower Office Existing 7,000-8,000 sq. ft. 0 12 $750,000 Concept Stage 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 21 $12,000,000 Concept Stage stri Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 500 $125,000,000 Active Search on Project Emma II Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search Project Ecosphere Industrial Tech Mfg. New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search Project BA710 Lt Assem-Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search Project Stallion Technology Service New Construction 42,000 sq. ft. 40 $3,600,000 Active Search 2/7/2022 Project Shepherd Lt Assembly Distribution New Construction 75,000 sq. ft. 75 $10,500,000 Active Search III 4/28/2022 Project Cougar Precision Machining -Mfg. New Construction 35,000 to 45,000 sq. ft. 38 $4,700,000 Active Search Contacts: M =11 YTD = 13 AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, June 7, 2022 - 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), Hayden Stensgard, and Ron Hackenmueller 1. General Business A. Call to Order B. Consideration of election of Planning Commission officers C. Consideration of approving minutes a. Workshop Meeting Minutes— May 18, 2022 b. Regular Meeting Minutes— May 18, 2022 D. Citizen Comments E. Consideration of adding items to the agenda F. Consideration to approve agenda 2. Public Hearings A. Consideration of a Request for Development Stage Planned Unit Development for Headwaters West Apartments, a Proposed 102 -Unit Multi -Family (Senior - Restricted) Development in the R-3, Medium Density Residential District Applicant: Headwaters Development B. Consideration of a request for Rezoning to Planned Unit Development, Development Stage Planned Unit Development and Preliminary Plat Haven Ridge, for replat of Haven Ridge 2nd Addition, a Proposed 59 Unit Single Family Residential Development in an R-1 (Single -Family Residence) District. Applicant: Haven Ridge, LLC. C. Consideration of a Request for an Amendment to the Zoning Ordinance to Allow Temporary Storage Boxes as an Accessory Use in the Affordable Storage and StorageLink Monticello PUD Districts. Applicant: City of Monticello D. Consideration of a Request for an Amendment to the Monticello Zoning Ordinance for Retail Service Uses Including but Not Limited to Definition, Zoning Districts and Standards Applicant: City of Monticello 3. Regular Agenda A. Consideration to adopt Resolution PC-2022-OXX finding that the establishment of TIF District 1-46 and TIF Plan for TIF District 1-46 conforms to the Monticello 2040 Comprehensive Plan B. Consideration Community Development Director's Report 4. Added Items 5. Adjournment