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IEDC Agenda - 09/27/2022AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, September 27, 2022 7:00 a.m. at 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 Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Marcy Anderson, Jolene Foss, Dave Tombers, Tim Zipoy 1. Call to Order 2. Approve Minutes: a. September 6, 2022, meeting minutes 3. Consideration of Adding Items to the Agenda 4. Table Topic— Industrial Zoning Ordinance Amendment Discussion 5. 2022 Manufacturing Appreciation Breakfast— 7:00 a.m., Thursday, Oct. 13th — Update Vicki -Jim 6. Reports (Verbal Reports): a. Economic Development • Prospects List • Project Update • Upcoming Meeting Reminder— Date: November 1, 2022 b. City Council c. Wright County Economic Development Partnership (WCEDP) d. Chamber of Commerce 7. Adjournment (B:OOam) MINUTES (Draft) INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, September 6, 2022 — 7:00 a.m. Monticello Community Center, North Mississippi Room Participants who chose to attend remotely joined via Microsoft Teams. Members: Chairperson Liz Calpas, Vice Chairperson Sarah Kortmansky, Joni Pawelk, Kevin Steffensmeier, Steve Johnson, Wayne Elam, Randy Skarphol Liaisons: Rachel Leonard, Jim Thares, Marcy Anderson, Jolene Foss, Others: Hayden Stensgard, Vicki Leerhoff 1. Call to Order Chairperson Liz Calpas called the meeting to order at 7:00 a.m. 2. Approve Minutes: KEVIN STEFFENSMEIER MOVED TO APPROVE THE AUGUST 2. 2022. MINUTES. MOTION SECONDED BY RANDY SKARPHOL. MOTION CARRIED UNANIMOUSLY. 3. Consideration of Adding Items to the Agenda No additional items were added 4. Table Topic— Housing Developments Review Mr. Thares presented an update of the housing development activity in the city. The completed, under construction, and proposed housing units are 883 multifamily units and 510 single family units for a grand total of 1393. This is a potential of an additional 3,200 people in the city within the next 5-6 years. Mr. Thares presented information of each project highlighting Block 52 and those included in the Points on Cedar. He then reviewed Block 52 in additional detail. Closing is expected at the of the week. Utilities have been disconnected and properties are being prepared for demo. Construction is expected to start this fall. The schedule for ground excavation is mid-October. The construction is expected to last about 20 months. The pandemic affected the pace of development due to materials delays or pricing issues. The City of Monticello's projected 2025 population is 15,25. It may reach 17,892 by 2028 if most of the housing developments on this list move forward as approved or concepted. Discussion was held about the concern of the number of single-family units for citizen ownership verses rental. A cap enforced by the city on the number of rentals is not currently being considered. Based on current projects and existing buildings the City of Monticello is not currently meeting the demand level addressing rental stress by income. 5. 2022 Manufacturing Appreciation Breakfast Mr. Thares noted the speaker for the upcoming October 13, 2022, Manufacturing Recognition Breakfast is St. Cloud State Economist and Dean of Public Affairs, King Banaian. Ms. Leerhoff provided an update of the caterer, flowers, Save the Date email and the printed invitations. 6. Reports (Verbal Reports): a. Economic Development • Prosect List Mr. Thares shared a list of prospects and projects highlighting Suburban Manufacturing and Project Sing. Suburban Manufacturing's expansion plans review process by the building department is nearly finished. The permit should be issued within the next 3 weeks. Excavation activities and footings and foundation work will start in late September. Building construction is expected to occur in the winter and spring. Project Sing is a Minnesota DEED prospect. It is a precision machining and semi- conductor related type of products manufacturer. It is seeking a 50 -acre site for a campus allowing development of several buildings that will total over 400,000 square feet. The total number of new jobs with the business would be 500. b. Planning Commission Agenda (attached) Mr. Thares provided an overview of the Planning Commission Regular Meeting agenda scheduled for September 6, 2022. c. City Council Rachel Leonard, City Administrator, presented an update on recent Council actions including approving a levy by the end of September, THC moratorium regarding sale, manufacturing and distribution, Downtown Walnut Street Corridor, and the Master plan for the Points on Cedar which will be presented to council this month. d. Wright County Economic Development Partnership (WCEDP) Jolene Foss, Executive Director at Wright County Economic Development Partnership had prior engagement and signed out at 8:00 a.m. e. Chamber of Commerce Marcy Anderson, Chamber of Commerce Director, highlighted candidate forum on October 17th at 6:00 p.m. National renowned Erik Therwanger, founder & author of Think GREAT, will be the guest speaker at the 10/18 Chamber meeting. Mr. Thares noted the next meeting will be September 27, 2022, and there is no meeting in October due to the Manufacturers' Recognition Breakfast event. 7. Adjournment RANDY SKARPHOL MOVED TO ADJOURN. VICE -CHAIRPERSON SARA KORTMANSKY SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY. MEETING ADJOURNED AT 8:08 A.M. Recorder: Vicki Leerhoff Approved: September 27, 2022 Attest: James Thares, Economic Development Manager Date of Contact 6/22/2017 5/22/2018 11/29/2018 3/28/2019 5/9/2019 8/16/2019 1/20/2020 8/27/2020 30-22 11/5/2020 2/16/2021 3/19/2021 PROSPECT LIST 09/02/2022 Company Name Business Category Project Description Project #6580 Metal Mfg. New Facility Constr. Karlsburger Foods Food Products Mfg. Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. Building -Facility Retained lobs New lobs Total Investment Project Status 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold Project Panda v3 20 New Construction _ 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Nutt Co -Working Space Existing Building ? ? Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 Project Jaguar Office New Construction 22,000 sq. ft. 22 Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 Project TDBBST Industrial New Construction 10,000 to 15,000 sq. 0 21 $12,000,000 Concept Stage ft. Project Flower Office Existing 7,000-8,000 sq. ft. 0 Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 stri Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 on ? ? Concept Stage 20+/- $1,400,000 Active Search 4 $2,700,000 Active Search 21 $4,100,000 Active Search 20 to $3,500,000 Almost Done 30 9 $1,850,000 Concept Stage 12 $750,000 Concept Stage 21 $12,000,000 Concept Stage 500 $125,000,000 Active Search 2/28/2022 Project Emma II Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search 6/16/2021 Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 6/30/2021 7/29/2021 10/28/2021 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 WW000 sq� � $3,600,000 Active Search 2/7/2022 Project Shepherd III Lt Assembly Distribution New Construction 75,000 sq. ft. 4/28/2022 Project Cougar Precision Machining -Mfg. New Construction 35,000 to 45,000 sq. ft. 75 $10,500,000 Active Search 38 $4,700,000 Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft. 0 500 $90,000,000 Active Search Contacts: M = 04 YTD = 22 IEDC Agenda: 09/27/22 6. Project Update Block 52 Redevelopment: The Block 52 redevelopment site land sale transaction occurred on September 16, 2022. Building demolition is underway at the present time. This may take another week or two. The underground parking garage trench will be excavated out over the new week or two as well. After site cleanup and excavation is wrapping up, construction activities will start in late October. The underground parking garage wall and ceiling concrete planks will be the first building components to be formed. The construction timeline for the $26,000,000 development is about 20 months, placing the completion date in early June 2024. When completed, the development will bring online 87 new market rate residential apartment units and almost 30,000 square feet of ground floor commercial (office -retail) space. The developer has been in discussions with several restaurant operators. The goal is to have a restaurant occupy the northeast end of the building which features an outdoor patio overlooking West Bridge Park. A total of 45 new jobs are expected to be generated by the development (by the new businesses that locate in the building). Suburban Manufacturing Expansion: Suburban Manufacturing will begin the excavation work in late September for its 21,400 square foot addition onto its 43,840 square foot facility. Construction of the new building is planned for spring 2023 with completion by late summer 2023. Suburban Manufacturing is involved engineering and manufacturing critical functional and safety products used in fluid power -hydraulic equipment and machinery. The specific industrial sectors that utilize their products include Construction, Agricultural, Transportation, Industrial and Utilities. Sunny Days Therapy: This is a new business in the City of Monticello, is also expected to start constructing its 7,000 square foot building on a vacant lot located at 1336 - 7t" Street East, next to the former McDonald's Restaurant which is south of Home Depot. Sunny Days Therapy which has facilities in four communities in the greater Twin Cities region, provides pediatric Occupational and Speech Therapy services to help infants, toddlers, children, and young adults achieve milestones, independence, and confidence in all aspects of their lives. Construction of the new Sunny Days Therapy facility is expected to be completed in the spring of 2023. IEDC Agenda: 09/27/22 Take Five Car Wash: Take Five is currently constructing a 5,400 square foot automated car wash facility located at 3880 Deegan Avenue. The project is expected to be completed in late October 2022. Take Five Car Wash is part of a larger corporate structure that has 900 car was facilities worldwide with 200 of those in the USA. Wiha Tools: Wiha Tools recently purchased a 12 -acre parcel along 71" Street East for its new warehouse and assembly facility. A 74,000 square foot building is proposed to be constructed to accommodate the needs of its growing assembly and distribution activities of its branded hand tools. These tools are typically used by contractors. Site excavation activities may start in the fall of 2022 or in the spring of 2023. The City and the City of Monticello Economic Development Authority (EDA) and the State of Minnesota are providing financial assistance for the nearly $13,000,000 development project. Wiha Tools assembles small hand tools such as, screwdrivers, allen wrenches, bits, bit drivers, pliers, etc. and distributes them throughout the USA. Wiha Tools is experiencing steady growth that is causing them to build a new facility and add 41 new fte (full time equivalent) employees to their exiting workforce of approximately 67 fte staff. The timeline for completion of the new facility is expected to be in December of 2023. Runnings Farm and Home Store: Located at 300 — 7t" Street East, Runnings, is nearing the completion of a 13,000 square foot store expansion. The home and farm supply chain retailer pursued the new addition to accommodate its yard and outdoor equipment product lines. 2 From: Jim Thares To: Vicki Leerhoff; Hayden Stensaard Subject: FW: WCEDP Update for 9/27 meeting Date: Monday, September 26, 2022 1:30:15 PM Please make copies for the IEDC meeting on Tuesday. Thank you. From: Jolene Foss <JoleneF@wrightpartnership.org> Sent: Monday, September 26, 2022 1:18 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WCEDP Update for 9/27 meeting Hello Jim, I apologize that I am unable to attend tomorrow's meeting. Here is a brief update of WCEDP activities. • 20th Annual Golf Fundraiser 9/13 was successful • Hiring Event held w/Express Employment 8/22 • Chamber Summit 9/27 -ILT Academy • Capacity Building Seminar 9/28 -Talent PR, 10/19-iWe Designation, MinnPACE • Mega site research and information request • Workforce Pathways -Request to present to WC Students, Presence at events to disburse information on WC businesses and jobs • CEO Program -8th year, 18 students, WCEDP presenting 9/27 • MN MFG Month tour w/Commissioners 10/13 -Die Tech/NanoTech • Countywide Marketing Campaign/Site Selector Page Upgrade -Golden Shovel Agency • BRE Visits-Innocast-Howard Lake, Malco -Annandale, T.0 Plastics -Otsego Thanks, Jolene Jolene Foss Executive Director 320.534.8344 Cell 763-496-5593 Office 3650 Braddock Ave NE Buffalo, MN 55313 ced p Wrighr County Economic Development Partnership PoTinering for oppodunl]yas