Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Planning Commission Agenda - 05/02/2023 (Workshop)
AGENDA WORKSHOP MEETING - MONTICELLO PLANNING COMMISSION Tuesday, May 2, 2023 — 5:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Paul Konsor, Andrew Tapper, Eric Hagen, Teri Lehner, Melissa Robeck Council Liaison: Charlotte Gabler Staff: Angela Schumann, Steve Grittman (NAC), Ron Hackenmueller, Hayden Stensgard 1. General Business A. Call to Order 2. Meeting Agenda A. Review and Discussion of the Monticello 2040 Vision + Plan (Monticello Comprehensive Plan) Land Use Designations and Industrial Uses 3. Adjournment Planning Commission Agenda: 05/02/23 2A. Review of the Monti 2040 Land Use Designations and Industrial Uses ALTERNATIVE ACTIONS As directed by the Planning Commission. REFERENCE AND BACKGROUND This item is continued discussion from the April special meeting. During the regular March meeting, the Planning Commission had significant discussion regarding the Monticello 2040 Plan's industrial land use designations. The Commission requested a workshop to review the industrial designations of the 2040 Plan. The purpose of the special meeting is to review each of the 2040 Plan's three industrial designations in detail, including their purpose, general outline of uses, and clerical components including images. Staff has prepared a proposed amendment to the 2040 Plan in response to the discussion from the April meeting. Planning Commission is asked to review the supporting materials in preparation for the discussion. STAFF RECOMMENDATION None at this time. SUPPORTING DATA A. Monticello 2040 Vision + Plan, Excerpts — Proposed Amendments/Discussion B. Monticello 2040 Vision + Plan, Excerpts — Current Plan C. Official Zoning Map D. Monticello Zoning Ordinance, Use Table Excerpt E. Monticello Industrial Feasibility Study - 2022 1 Commercial Designations Downtown Mixed -Use 4 Community Commercial fi Regional Commercial Commercial and Residential Flex Industrial Designations Light Employment Industrial General Campus Park Industrial ■ PROPOSED Other Designations Public and Institutional Xcel Monticello Nuclear Generating Plant 1 sum (9 Commercial Commercial Commercial Commercial Employment Industrial Industrial Public Uses Nuclear Power �bZBZ�Z Cornerstone Cub Cafe and Target NA Foods Catering Co. MONTICELLO 2040 VISION + PLAN Otter Creek Polaris Crossing Cargill NA Suburban Kitchen UMC Manufacturing Solutions or CW Metals Ewe] Monticello Great River Xcel Regional Energy Library Proposed Change Key: Blue Text: Additional Text PROPOSED Red Underline Text: Proposed Deletion EMPLOYMENT CAMPUS (EC) Highlighted Text: Review/Discuss This designation primarily applies to areas used for research and development, medical laboratories, advanced and light rnnufacturing, green technoiogyand renewable energy development (not installations), computer technology, professional and corporate offices and industrial engineering facilities. Some commercial uses such as restaurants and hotels are also allowed. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors orscreened from the public right-of-way. The Employment Campus designation is characterized by a campus -like environment of one and two-story buildings on large parcels. It also provides a high level of amenities including pedestrian connections and architectural and landscape treatment that maintain high standards of visual quality in a campus like environment. Employment • Research and Development • Advanced Manufacturing • Green Technology • Renewable Resources • Professional and Corporate Offices • Industrial Engineering Facilities Commercial • Restaurant • Child Care • Corporate Hotel Recreational • Plaza • Public Space • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 6 stories • Lot Area - N/A r♦�2018 Correlating Zoning District IBC Business Campus District REPLACE WITH UMC IMAGE 80 (« LAND USE, GROWTH AND ORDERLY ANNEXATION Primary Mode Vehicular with access to collectors and arterials !lam Transit or shuttle service Secondary Mode Pedestrian -friendly streetscape GVO Bicycle facilities and parking • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 6 stories • Lot Area - N/A r♦�2018 Correlating Zoning District IBC Business Campus District REPLACE WITH UMC IMAGE 80 (« LAND USE, GROWTH AND ORDERLY ANNEXATION Proposed Change Key: Blue Text: Additional Text PROPOSED Red Underline Text: Proposed Deletion LIGHT INDUSTRIAL PARK (LIP) Highlighted Text: Review/Discuss The Light Industrial designation accommodates uses such as process, assembly and production manufacturing which uses moderate amounts of partially processed materials, warehousing and distribution, research and development, medical laboratories, machine shops, computer technology, professional and corporate offices and industrial engineering facilities. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors or screened from the public right-of-way. Activities such as the handling of hazardous materials and outdoor storage are limited. Industrial • Warehousing and Distribution • Light Manufacturing • Research and Development • Production and Assembly • Medical Laboratories • Computer Technology • Professional and Corporate Offices Commercial • Office • Service -based Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 4 stories • Lot Area - N/A 2018 Correlating Zoning District IBC Industrial Business Campus (Recently amended) 1-1 Light Industrial District MONTICELLO 2040 VISION + PLAN 81 Primary Mode Vehicular with access to collectors and arterials i Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 4 stories • Lot Area - N/A 2018 Correlating Zoning District IBC Industrial Business Campus (Recently amended) 1-1 Light Industrial District MONTICELLO 2040 VISION + PLAN 81 Proposed Change Key: PROPOSED Blue Text: Additional Text Red Underline Text: Proposed Deletion GENERAL INDUSTRIAL (GO Highlighted Text: Review/Discuss This designation includes manufacturing, wholesale trade, production brewing, corporation and contracting yards and other industrial uses that may need separation from residential or commercial uses. This designation also accommodates a variety of local -serving industrial uses which are generally oriented toward local businesses and residents. These include auto repair and servicing, machine shops, artisan, crafts, woodworking and metallurgy, construction and contracting, equipment and vehicle rental, small warehouse and delivery operations, self -storage facilities, small wholesalers, and other small-scale industrial operations. A limited number of offices, commercial uses, and production and assembly uses also occur within these areas. These areas may have the potential to generate off-site impacts including noise, odors, vibration and truck traffic. Buffering, screening and landscape treatments may be required to enhance public rights-of-way and ensure land use compatibility. Outdoor storage is allowed when screened and buffered from adjacent uses and richt-of-way. Industrial • Heavy Manufacturing • Light Manufacturing • Small warehouse and delivery operations • Recycling Facilities • Production Brewing • Construction and Contracting Yards Commercial • Accessory Uses • Office van Secondary Mode Shared bike/ pedestrian facilities 82 (« • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 2 stories • Lot Area - N/A '♦1 2018 Correlating J Zoning District 1-2 Heavy Industrial District REPLACE WITH CARGILL IMAGE LANB dfl; 818WTH RIB 8BB1BLT AII11018a Primary Mode Vehicular with access to collectors and arterials 1F Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities 82 (« • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 2 stories • Lot Area - N/A '♦1 2018 Correlating J Zoning District 1-2 Heavy Industrial District REPLACE WITH CARGILL IMAGE LANB dfl; 818WTH RIB 8BB1BLT AII11018a FUTURE LAND USE MAP TABLE 3.7 FUTURE LAND USEACREAGES Note: This acreage includes both developed and undeveloped land within the City and MOAA. MONTICELLO 2040 VISION + PLAN 63 Commercial Designations Downtown Mixed -Use 4 Community Commercial fi Regional Commercial Commercial and Residential Flex LIndustrial Designations ���E E Light Employment Industrial General Campus Park Industrial ■ CURRENT Other Designations Public and Institutional Xcel Monticello Nuclear Generating Plant 1 sum (9 Commercial Commercial Commercial Commercial Employment Industrial Industrial Public Uses Nuclear Power �bZBZ�Z Cornerstone Cub Cafe and Target NA Foods Catering Co. MONTICELLO 2040 VISION + PLAN Otter Creek NA Polaris Crossing BZW Monticello Great River Xcel Regional Energy Library CURRENT EMPLOYMENT CAMPUS (EC) This designation primarily applies to areas used for research and development, medical laboratories, advanced manufacturing, green technology, renewable energy, computer technology, professional and corporate offices and industrial engineering facilities. Some commercial uses such as restaurants and hotels are also allowed. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors or screened from the public right-of-way. The Employment Campus designation is characterized by a campus -like environment of one and two-story buildings on large parcels. It also provides a high level of amenities including pedestrian connections and architectural and landscape treatment that maintain high standards of visual quality in a campus like environment. Employment Research and Development Advanced Manufacturing Green Technology Renewable Resources • Professional and Corporate Offices • Industrial Engineering Facilities Commercial • Restaurant • Convenience Retail • Corporate Hotel Recreational • Plaza • Public Space Primary Mode Vehicular with access to collectors and arterials �i Transit or shuttle service Secondary Mode Pedestrian -friendly streetscape Bicycle facilities and parking • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 6 stories • Lot Area - N/A ♦� 2018 Correlating Zoning District IBC Business Campus District 80 MC(� LAND USE, GROWTH AND ORDERLY ANNEXATION CURRENT LIGHT INDUSTRIAL PARK (LIP) The Light Industrial designation accommodates uses such as process and production manufacturing which uses moderate amounts of partially processed materials, warehousing and distribution, research and development, medical laboratories, machine shops, computer technology, professional and corporate offices and industrial engineering facilities. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors or screened from the public right-of-way. Activities such as the handling of hazardous materials and outdoor storage are limited. Industrial • Warehousing and Distribution • Manufacturing • Research and Development • Medical Laboratories • Computer Technology • Professional and Corporate Offices Commercial • Office • Service -based MONTICELLO 2040 VISION + PLAN Primary Mode Vehicular with access to collectors and arterials Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 4 stories • Lot Area - N/A ♦l 2018 Correlating J Zoning District 1-1 Light Industrial District CURRENT GENERAL INDUSTRIAL (GIS This designation includes manufacturing, wholesale trade, production brewing, corporation and contracting yards and other industrial uses that may need separation from residential or commercial uses. This designation also accommodates a variety of local -serving industrial uses which are generally oriented toward local businesses and residents. These include auto repair and servicing, machine shops, artisan, crafts, woodworking and metallurgy, construction and contracting, equipment and vehicle rental, small warehouse and delivery operations, self -storage facilities, small wholesalers, and other small-scale industrial operations. A limited number of offices, commercial uses, and production and assembly uses also occur within these areas. These areas may have the potential to generate off-site impacts including noise, odors, vibration and truck traffic. Buffering, screening and landscape treatments may be required to enhance public rights-of-way and ensure land use compatibility. Industrial • Light Manufacturing • Small warehouse and delivery operations • Recycling Facilities • Production Brewing • Construction and Contracting Yards Commercial • Accessory Uses • Office -AM ■■ LOT PATTERN Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 2 stories • Lot Area - N/A '♦1 2018 Correlating J Zoning District 1-2 Heavy Industrial District 82 (« LAND USE, GROWTH AND ORDERLY ANNEXATION Primary Mode Vehicular with access to collectors and arterials 1F Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 0.50 to 0.75 • Height - Up to 2 stories • Lot Area - N/A '♦1 2018 Correlating J Zoning District 1-2 Heavy Industrial District 82 (« LAND USE, GROWTH AND ORDERLY ANNEXATION § 153.090 USE TABLE. (A) Explanation of use table structure. (1) Organization of Table 5-1. Table 5-1 organizes all principal uses by use classifications and use types. (a) Use classifications. The use classifications are: agricultural uses; residential uses; civic and institutional uses; office use; commercial uses; and industrial uses. The use classifications provide a systematic basis for assigning present and future land uses into broad general classifications (e.g., residential and commercial uses). The use classifications then organize land uses and activities into specific "use types" based on common functional, product, or physical characteristics, such as the type and amount of activity, the type of customers or residents, how goods or services are sold or delivered and site conditions. (b) Use types. The specific use types identify the specific uses that are considered to fall within characteristics identified in the use classifications. For example; detached dwellings, parks and recreational areas, and schools are "use types" in the Single-family Residence District. (2) Symbols used in Table 5-1 (a) Permitted Uses= P. A "P" indicates that a use is permitted by right, subject to compliance with all other applicable provisions of this chapter. Uses may be subject to special regulations as referenced in the "additional requirements" column. (b) Conditionally Permitted Uses = C. A "C" indicates that a use is permitted provided the city can establish conditions necessary to ensure the use is compatible to the proposed location and surrounding properties. Inability of the city to establish conditions to adequately control anticipated impacts is justification for denial of a conditionally permitted use. Conditional uses may also be subject to special regulations as referenced in the "additional requirements" column. (c) Interim Permitted Uses= /.An "I" indicates that a use maybe permitted for a brief period of time provided certain conditions are met, and a specific event or date can be established for discontinuance of the use. Inability of the city to establish conditions to adequately control anticipated impacts is justification for denial of an interim permitted use. Interim permitted uses may also be subject to special regulations as referenced in the "additional requirements" column. (d) Prohibited Uses = Shaded cel/s.A shaded cell indicates that the listed use is prohibited in the respective base zoning district. (e) Uses not provided for within zoning districts. In any zoning district, whenever a proposed use is neither specifically allowed nor denied, the Community Development Department shall determine if the proposed use is comparable in potential activities and impacts to a use listed within the zoning district and is acceptable related to land use compatibility, traffic, and/or nuisance issues and established conditions and standards relating to development of the use. Where such a determination is made, the requirements established for the listed use shall apply as minimum standards for the proposed use. Additional requirements may be applied to address differences between the listed use and the proposed use. If no comparable use determination can be made, the use will be considered prohibited in which case an amendment to the ordinance text would be required to clarify if, where and how a proposed use could be established. TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements «P„ _ Permitted "C., _ Conditionally A R R R T M B I I I Permitted O A 1 2 N R3 R4 H 1 B2 B3 64 CCD BC 1 2 "I" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements «P„ _ Permitted «C„ _ Conditionally A R R R T M B I I I Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 1 2 "I" = Interim Permitted Agricultural Uses § 153.091(B) Agriculture P P P P P P P P P P P P P P P (1) Agricultural P § 153.091(B) Sales (2) Community P P P P P P P P P❑ § 153.091(B) Gardens () § 153.091(B) Stables CE❑ (4) Residential Uses § 153.091(C) (1) Attached Dwelling Types § 153.091(C)(2)(a ) Duplex P C § 153.091(C) See (2)(b ) Townhouse C PEIE E Table § 153.091(C) 5- 1A (2)(c ) Multiple- C P C C § 153.091(C) family (2)(d ) None Detached P P P P P P Dwelling Group residential P P P P P § 153.091(C) facility, single- (3) family Group residential C C C § 153.091(C) facility, multi- (3) family § 153.091(C) Mobile and manufactured C C C P C (4) home park TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements "P„ _ Permitted «C„ _ Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "I" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements "Pyl Permitted „C„= Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "7” = Interim Permitted Civic and Institutional Uses Active park facilities P P P P P P P P P P P P P P P None (public) Active park facilities P P P P P P P § 153.091(D) (private) (1) Assisted living C I P C 1 C P § 153.091(D) facilities (2) Cemeteries C C C C C C C § 153.091(D) (3) C None Clinics/medical C P P services Essential P P P P P P P P P P P P P P P None services Hospitals C P P C § 153.091(D) (4) Nursing/ See § 153.091(D) convalescent C C C C C C C C C C P Table (5) home 5- 1A C None Passenger C C C terminal Passive parks and open P P P P P P P P P P P P P P P space § 153.091(D) Place of public C C C C CP C assembly (6) 153.091(D) Public buildings or C C C C C C C P C C P P C P P§ (7) uses Public § 153.091(D) warehousing I 1 1 (8) temporary C I I § 153.091(D) Schools, K-12 C C C C C (9) Schools, higher C education Utilities (major) C C C § 153.091(D) (10) TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements «P, _ Permitted "C„ _ Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "I" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements "P" = Permitted «C" _ Conditionally Permitted A R R R T R3 R4 M B B2 B3 B4 CCD I 11 I O A 1 2 N H 1 BC 2 "I" = Interim Permitted Commercial Uses Adult uses P P § 153.046(T) Auction house C § 153.091(E) (2) P P § 153.091(E) Auto repair - C C minor 1(3) Automotive wash P C § 153.091(E) facilities (4) Bed and C C C C C § 153.091(E) breakfasts (5) Brew pub P P § 153.091(E) (6) P P P None Business support P P services Commercial C P P § 153.091(E) lodging (7) P § 153.091(F) Commercial self- C storage See (3) P P P § 153.091(E) Communications/ P Table broadcasting 5- (8) Convenience C P P P 1A § 153.091(E) retail (9) § 153.091(E) Country clubC (10) P C § 153.091(E) Day care centersC C P (11) Entertainment/ recreation, P P C C C§ 153.091(E) indoor (12) commercial Entertainment/ recreation, CC C C § 153.091(E) outdoor (13) commercial Event centerLLHL C C C § T(15) 153.091(E)14) Financial I �F P C P § 153.091(E) institution TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements "P„ _ Permitted «C„ _ Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "7" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements Permitted „C„= Conditionally A R R R T R3 R4 M B B2 B3 B4 CCD 1 11 1 Permitted O A 1 2 N H 1 BC 2 "7” = Interim Permitted Commercial Uses Funeral P P § 153.091(E) services (16) Kennels C § 153.091(E) (commercial) (17) § 153.091(E) Landscaping/ nursery P (18) business Offices, commercial 153.091(E) and P P P P P P P§ (20) professional services Personal C P P P § 153.091(E) services (22) Production brewery or micro- p p § 153.091(F) distillery (12) without taproom See Production brewery or Table § 153.091(E) micro- C C 5 1A C C C (23) distillery with § 153.091(F) taproom or (13) cocktail room Recreational § 153.091(E) vehicle camp C (24) site Repair C P P P P§ 153.091(E) establishment (25) Restaurants C P P C § 153.091(E) (26) Retail commercial uses (other) P P P § 153.091(E) buildings less (27) than 10,000 sq. ft. Retail commercial § 153.091(E) uses (other) C P P (27) buildings over 10,000 sq. ft. TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements «P„ _ Permitted "C., _ Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "I" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types yp Base Zoning Districts Additional Requirements Permitted "C„ _ Conditionally A R R R T R3 R4 M B B2 B3 B4 CCD 1 11 1 Permitted O A 1 2 N H 1 BC 2 "I" = Interim Permitted Commercial Uses Retail service in the Pointes P P P P § 153.048 at Cedar Specialty § 153.091(E) eating U C P P P (28) establishments I § 153.091(E) Vehicle fuel LIED 1C C C sales (29) § 153.091(E) Vehicle sales C and rental (30) Veterinary C § 153.091(E) facilities (rural) (31) § 153.091(E) Veterinary facilities C C C (31) (neighborhood) P P P None Wholesale EFLLL11 sales See Industrial Uses Auto repair -§ C P P 153.091(F) major Table 5- (1 ) Bulk fuel sales C § 153.091(F) and storage 1A (2) Contractor's § 153.091(F) yard, I I I (4) temporary I I § 153.091(F) Extraction of minerals (5) §) 53.091 (F) General��❑ warehousing C P P 6 §) 53.091 (F) Heavy���❑ manufacturing C 7 Industrial ��❑ C P None services § 153.091 (F) Industrial self- storage C C (8) facilities Land C C C C C C C C C C C C C C C§ 153.091(F) reclamation (9) TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Requirements „P„ _ Permitted „C„ _ Conditionally A R R R T M B 1 1 Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 "I" = Interim Permitted TABLE 5-1: USES BY DISTRICT Use Types Base Zoning Districts Additional Riverfront (A) Broadway (B) Requirements «P„ _ General Notes Permitted Cedar (C) CCD Retail, Office, Entertainment «C„ _ supported large Housing, Use and open supported by by space supported Types space, entertainment; Conditionally A R R R T supported by housing 2nd M B retail and I retail I Permitted O A 1 2 N R3 R4 H 1 B2 B3 B4 CCD BC 11 2 walnut & "7" = Interim General Notes Cedar (C) (D) CCD Office, PermittedLLL Entertainment Retail, large Housing, and open Retail supported space supported Use Types space, supported by Industrial Uses Light by limited supported by entertainment; housing users, retail and retail housing 2nd and P PP § 153.091(F) manufacturing services retail service Additional use requirements applicable per § 153.091 Uses: Residential Uses Single- family (10) Machinery/truck CUP *Upper floors only Multi 3 du or P* CUP* § 153.091(F) repair and *Upper under floors only *Townhous C (11) sales es on Townhouse CUP CUP* CUP P Broadway See Recycling and only C § 153.091(F) salvage center Table 5- 1A (14) Truck or freight C § 153.091(F) 1(15) terminal Waste disposal C § 153.091(F) and incineration (16) Wrecker andP LCI § 153.091(F) towing services ---L (17) TABLE 5-1A: CENTRAL COMMUNITY DISTRICT (CCD) USES SUB -AREA Riverfront (A) Broadway (B) walnut & pine (D) General Notes Cedar (C) CCD Retail, Office, Entertainment Retail, supported large Housing, Use and open supported by by space supported Types space, entertainment; housing retail by limited supported by housing 2nd and users, retail and retail and retail services services service TABLE 5-1A: CENTRAL COMMUNITY DISTRICT (CCD) USES SUB -AREA Riverfront (A) Broadway (B) walnut & Pine General Notes Cedar (C) (D) CCD Office, Entertainment Retail, large Housing, and open Retail supported space supported Use Types space, supported by by retail by limited supported by entertainment; housing users, retail and retail housing 2nd and and services services retail service Additional use requirements applicable per § 153.091 Uses: Residential Uses Single- family P* CUP *Upper floors only Multi 3 du or P* CUP* P *Upper under floors only *Townhous es on Townhouse CUP CUP* CUP P Broadway east of Pine only Multi 4-12 du CUP CUP CUP CUP Multi 13+ du CUP CUP CUP CUP CUP *Allowed on ground floor for Ground floor CUP* P P townhouses on Broadway east of Pine Commercial Brew Pub P P P P <10,000 sq. ft. Brew Pub CUP P CUP P >10,000 sq. ft. Commercial CUP CUP P Day Care Commercial P CUP CUP P Lodging Uses: Commercial Entertainme nt/Recreation, Indoor CUP* CUP* CUP* CUP <10,000 sq. Commercial ft. only (including theaters) Entertainme nt/Recreation Outdoor Commercial Subject to § Event centers CUP CUP CUP CUP CUP 153.091(F) (14 ) Funeral CUP services Personal P P P P CUP services Places of public CUP CUP CUP CUP CUP assembly Production brewery/ P P P P taproom Micro - distillery/ P P P P cocktail room Professional Upper office — CUP* P P P P floors sere and preferred retail CUP* - not P/CUP* on P/CUP* Upper Commercial allowed on ground on P floors office ground floor floor ground preferred floor Financial P P P P Drive thru by CUP Restaurants, bars <10,000 P P P P CUP sq. ft. Restaurants, bars > 10,000 CUP P CUP P CUP sq. ft. Retail Sales <10,000 sq. ft. P P P P P Retail Sales CUP CUP CUP P CUP >10,000 sq. ft. Retail with CUP P P P P service Specialty Eating P P P P CUP Establishments <10,000 sq. ft. Vehicle fuel CUP sales Veterinary No outdoor facilities < CUP CUP CUP CUP 10,000 sq. ft. I I I I uses I Industrial Uses Industrial PUD PUD Only PUD Only Civic and Institutional Uses Clinics/ medical CUP CUP P P services Public buildings or P CUP P CUP CUP uses (incl. public parks) Schools Pre- CUP CUP CUP K-12 TABLE 544 THE POINTES AT CEDAR DISTRICT (PCD) See § 153.048 (Ord. 780, passed 7-25-2022; Ord. 791, passed 11-14-2022) � 111 ------------- Monticello Table of Contents Executive Summary Introduction Northwest Monticello Land Analysis East Monticello Land Analysis Cost Benefit and Conclusions Industrial Development Feasibility Study Monticello, Minnesota June 9, 2022 Background 3 6 19 26 33 1. Executive Summary Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Owning Monticello's Future Well-informed land use decisions are part of Monticello's broader effort at strategically transitioning from an energy -based economic foundation towards a diversified economic and land use base. Towards that end, this study looks at two large areas on the edges of the city and their potential to support the city's goals of being a regional center, growing a balanced tax base, and promoting job growth. This study is another important step towards putting Monticello in the driver's seat of its own destiny - to proactively determine and attract the type(s) of development the City desires, rather than to only receive residual development interest from Saint Cloud and Twin Cities, and to support a transition from an energy -based economy. Doing so will support the identity of the community as a regional center, located on a great river, with a downtown, and superior amenities that attract families and businesses who desire these qualities - Monticello is notjust a "highway town between two metro areas." Yet, the City must still address several larger regional issues that impact it precisely because it is between two large metros: surrounding exurban land use patterns, market competition with nearby communities, the potential of a new interchange, and the possibility of a future new bridge crossing. In this study the City explores three development scenarios for each growth area - two scenarios in each area that consider a future interchange, and one without. Each scenario, and associated cost estimates, provide a preliminary framework in which the City can evaluate growth feasibility, strategies, and necessary allocation of resources. This study recommends that the City pursue growth via three approaches: 1. Concentrate expanding infrastructure to catalyze future development and an interchange/bridge, within the Northwest growth area 2. Incrementally develop contiguous residential lands within the East growth area, as outlined in the Comprehensive Plan. 3. Continue pursuing infill growth for available land within the city's existing border This approach will allow the City to promote higher quality development where it can be efficiently served with existing and future infrastructure, and protect its identity as a regional center through land management on its eastern edge. 9 NW GROWTH AREA © EAST GROWTH AREA Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background imltled Map 'r - O NORTHWEST STUDY AREA CHELSEA COMMONS X I FENNING BROADWAY` Pelican Lake This study recommends that the City pursue growth via three approaches: z. Concentrate expanding infrastructure to catalyze future development and an interchange/bridge, within the Northwest growth area 2. Incrementally develop contiguous residential lands within the East growth area, as outlined in the Comprehensive Plan while initiating discussions with Otsego about potential partnerships to develop employment uses along the shared border. 3. Continue pursuing infill growth for available land within the city's existing border This approach will allow the City to promote higher quality development where it can be efficiently served with existing and future infrastructure, and protect its identity as a regional center through land management on its eastern edge. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background 2. Introduction and Context Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Introduction Purpose This study is one of several efforts the City has undertaken in recent years to help prepare for the potential transition of the Xcel Monticello Nuclear Generating Plant (MNGP). The purpose of this study is to: • Establish initial feasibility of the development of large tracts of land to the northwest and the east of the existing City limits. • Provide initial insights as to the relative benefits and costs of developing each of the study areas. • Explore different development approaches to the two areas. • Understand how industrial land and their related uses in these two study areas can connect to a wide range of City goals, thereby contributing to the overall health and well being of the City and its residents. V-7 74%, Zt!�O- Monticello in the Region Located equidistant from the Twin Cities and St. Cloud, along the Mississippi River and astride 1-94, Monticello is in a strong position to take advantage of its locational advantages and to accomplish its vision to become a regional center with a strong downtown, a balanced tax base, and a model for sustainable growth. Proximity to two growing regions presents great opportunity. Monticello's residents have ever increasing options in the outer ring suburbs for employment, amenities, and activities. However its location between two metropolitan areas also poses several challenges. With outward growth from Saint Cloud and the Twin Cities pushing towards Monticello, the City is at risk of being negatively impacted by undesirable and incompatible uses that seek inexpensive land where operations are isolated from nearby uses. At the same time, the City has the opportunity to benefit from its strategic location along a primary transportation corridor near a major metro area, which is attractive to many industries. If properly managed and staged, resulting development can generate significant benefits to the City such as diversified tax base, increased jobs, and customers for area retail districts. +� Rather than just being the willing recipient of any and all development that .�• move outward from the two metropolitan areas, Monticello is positioning ., itself an emerging regional center along a great riverway, with strong schools ` •�►��• and a true downtown. Those are the qualities that the City must leverage as it attracts new employers to the City. East � Site r, Study Areas Monticello has identified two areas for this study - one on the northwest side of the City and one on the east side. Fortunately, the industrial and employment marketplace is moving in that direction already. Whereas access and availability of unencumbered land was once considered the single most important locational factor for employers, today location decisions are more complex. With a shortage of workers, many employers know they can no longer "pull" employees long distances to job sites with no amenities. The job is not the attraction - the location, and the ability to live a desired lifestyle is the attraction. Therefore, more employers want to be where the employees already are and/or where they desire to be. This bodes well for Monticello as it aspires to be, first and foremost, a desirable community along a great river, with a strong school system, great parks, and a thriving downtown. Ultimately, this is what will attract both employees and employers, as well as visitors and residents. Plan Structure and Outcomes This study is organized to provide City staff and policy makers with information on the suitability of two sites for primarily industrial, light industrial, and other job -creating uses. It also provides information about how these uses can serve a wide set of community needs beyond jobs and tax base. To that end, the plan includes a discussion about the range of industrial and light industrial uses, the sizes and patterns they tend to take, and their relative suitability in the community. Section One provides background information on the MNGP, the anticipated extent of impacts upon possible closure, the City's current relevant policies that address the transition to a non -energy economy, and the market trends currently affecting industrial and light industrial development in the region. Sections Two and Three analyze the two study area sites. Each chapter contains a physical analysis of development opportunities and challenges. These chapters offer potential ways in which each site can be developed, along with the major infrastructure needs necessary to serve it. Section Four contains a cost / benefit analysis of scenario outcomes, and a discussion on final recommendations. A Small Regional Center in between two growing metropolitan areas Monticello can take advantage of its location between the Twin Cities and Saint Cloud, however it also has to contend with the potential negative impacts. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Market Context and Trends Introduction Stemming from the potential transition of the Xcel Monticello Nuclear Generating Plant (Xcel (MNGP), the industrial market in and around Monticello has been the subject of multiple studies in recent years. The focus of this Plan therefore is not to replicate these efforts, but rather to summarize and utilize relevant points as they apply to the need for— and future of —two proposed industrial development areas. These considerations include: • Current and forecasted industrial market conditions, in terms of expected development types, scale, absorption, and requirements • Trends in industrial space usage, based on overall market conditions in the area, as well as more generalized best practices • Opportunities for Monticello in particular, based on its location and assets MNGP C Ol i NORTHWE + �� The Xcel "X Factor" The MNGP is located on the northern edge of the city along the Mississippi River. Though not certain, it is possible that the MNGP will not seek re- certification past the year 2040. Operating since 1971, the MNGP has consistently been the city's largest employer and its largest source of tax revenue. Though its valuation and employees fluctuate, in 2021 the MNGP had 70o employees and a tax capacity of approximately $17 million - equivalent to approximately 50% of the property taxes paid to the City. The City has been actively working to diversify its tax base over recent years, and intends to continue doing so to absorb the anticipated future reduction in tax revenue from MNGP. Fortunately, recent growth and area development have already enabled the City to begin reducing its economic reliance on MNGP by diversifying its tax base. Previous impact studies determined that to "backfill" the full tax capacity of the Plant by 2040, the city would need to increase its tax base by approximately $250,000/year. If accomplished annually until 2040, the City would experience no net loss of taxes by the estimated Plant closure date of 2040. Furthermore and regardless of plant closure, assuming economic development efforts are diversified across industries, the result will be a more resilient tax base that lessens its reliance on one single industry and taxpayer. Study Areas The MNGP (red circle) is located on the north edge of the city, along the Mississippi River and adjacent to this study's Northwest Growth Area. Image Source: thehometownsource.com Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Towards a Resilient Economy To foster economic sustainability and market resilience, cities should seek to diversify their tax base while finding beneficial ways to support area growth, in alignment with community needs and visions. Principles that are emerging from the City's efforts on this front are summarized below: Diversification is good practice, regardless of plant status. A more robust and diversified tax base will provide a more sustainable economic future as resilience against future economic cycles and shocks. Even if the plant remains open forthe long term, the approach here will support a stronger and healthier local economy. Gradual changes overtime are advisable. Rather than banking on a sudden shift, incremental changes over the next few decades are more achievable and manageable. In fact, reliance on Xcel has been decreasing since 2o16, due to changes in how the property is valued and increase in other city development. This has gone from 61% of tax capacity in 2016 to 53.5% in 2021. City guidance is needed to optimize outcomes. The city has acknowledged for many years that a strategic and proactive approach will be critical to a strong transition from MNGP. This involves notjust direct economic development assistance but considering how to align city goals and actions across multiple areas. Business Name Total Tax Capacity 2018 p.city 2017 Business Name Total Tax Capacity 2016 Northern States Power Co. (Xcel Energy)(Xcel $16,294,279 Northern States Power Co. Energy)(Xcel $16,970,092 Northern States Power Co. Energy) $15,913,229 Iret Properties $295,132 Iret Properties $295,132 Wal-Mart $206,950 Mills Fleet Farm $251.524 Wal-Mart $202,950 Target Corporation $200,250 Wal-Mart $196,510 Target Corporation $199,250 Monti -Big Lake Community Hospital $146 ,880 Target Corporation 5195.510 Monti -Big Lake Community Hospital $145.440 Home Depot $131.450 Monti -big Lake Community Hospital $145,440 Home Depot $129,280 Spirit Master Funding $102,521 Home Depot $127,190 Mills Fleet Farm $128,368 AX TC Retail $101,626 Clear Creek Land Company $119,976 Minnegasco Inc $102,521 Minnegasco Inc. $78,294 Monti -Big Lake Community Hospital $109.980 Spirit Master Funding $101,626 Tapper's Holdings LLC $77.636 Spirit Master Funding $192,515 AX TC Retail $81.858 WSI Industries $77,252 AX TC Retail $101,634 Centerpoint Energy $77,252 Iret Properties $75,782 Centerpoint Energy $95184 Tapper's Holdings LLC. $77,636 RCE Property LLC $73,250 Tapper's Holdings LLC. $77,638 Anderson Companies LLC. $73,250 BBF Properties $71,558 WSI Industries $77,252 BOF Properties $70,318 UMC Real Estate $66,250 SCF RC Funding IU LLC. $73,250 Bluffs in Monticello LLC. $69,224 BNSF Railway Company $63,676 Monticello's Total Tax Capacity $29,528,145 Monticello's Total Tax Capacity $27,583,160 Monticello's Total Tax Capacity $25,891,898 Northern States Power Co. Percentage of Tax Capacity 5518% Northern States Power Co. Percentage of Tax Capacity 61.52% Northern States Power Co. Percentage of Tax Capacity 61.46% Monticello's top 15 taxpayers, and their tax capacity, as noted in the city's 2040 Comprehensive Plan. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Current Industrial Market Conditions With its central location between Saint Cloud and the Twin Cities, Monticello is well situated to benefit from growth of both areas, especially with its proximity to Interstate 94, which links them. Due to its size and proximity, Twin Cities Metropolitan Area statistics provide the most relevant trends in terms of growth. As such, the section below references Twin Cities data. While many indicators of economic "health" are still recovering from COVID-3.9 pandemic impacts, others have already recovered or surpassed pre -pandemic levels. Minneapolis Saint Paul Regional Economic Development Partnership (GreaterMSP) maintains a Regional Recovery Hub that tracks economic indicators in terms of status relative to their pre - pandemic baseline in early 2020 (top left image). The Tracker notes that while housing construction and office space leases continue to lag, factors such as employment, job posting, jobless claims, small businesses, and startup funding have largely recovered or surpassed pre -pandemic levels. Notably for communities like Monticello, demand for industrial space remains at historically high levels. In its 2021 year in review report (right), Colliers looked back on a time of unprecedented activity in the industrial market in the Twin Cities. Contributing factors included construction and development delays due to the pandemic, the entrance of large e-commerce firms into the market, increases in stock levels, and onshoring of key industrial sectors. As such, 2021 was the region's second-best year ever of absorption, going from a typical level of 7-8 million to 13-14 million square feet. The increase was driven by the demand for several large space users, needing 500,000- i,000,000 square feet each — including e-commerce retailers like Amazon, and grocery distributors like Associated Wholesale Grocers. Economic developers have identified a shortage of close -in developable sites nearthe metro area. The following charts and graphs show the related impacts on investment volume, rent growth, and overall activity. Industrial Development Feasibility Study Monticello, Minnesota GREATER>MSP Pr 14" Sre tlau. SrMw+nr ln. ia, . M�• illy �n Men,rar wRm:pw 1`183ft I+ 1r 'd, Au- May Imo•' ful AW Sup MI Hey Uee I.. Feb Mer Am M, I— lul " Sm W Mor 9rx. lett Fub Mn x-0 0.19 Vy J..nort lmpi"mpMt Mb,bsungs Ipbl— oe,ms Travei & MofWft.. w, T—.l Hal Y baupe�y FIM✓� N QKK Mply TF taKenfilp Tp l Byslne;s Vitality Pn., u�n�r neeki„gt Smalr business Sfam.p Funding ■� Family Vitality Fppp s«.nn ��I■1���—��I♦�II��� $2,500 $2,000 $1,500 $1,000 $500 $' $0 *nig n�ux �n�.vmanw`A .n crmi.r ,nv ny p�vnomn..i lan niw-1 nirMr[!unrdnY yl,.l us. ,nonc,or.n Twin Cities Metro Industrial Investment Volume Year overYear Rent Growth for Industrial Space Minneapolis St. Louis Tampa Bay Cleveland Dallas Phoenix 4.02% Milwaukee 3.02% South Florida 2.54% Houston 2.50% Chicago 1 2.23% Cincinnati 2.03% Detroit 1.76% Kansas City 0.81% 8MSF $2,120 6MSF 4MSF 1.95MSF 2MSF 0.24MSF OMSF 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 June 9, 2022 6.80% F 5.73% 5.58% 5.52% 7.65% Source: Colliers Research Industrial Space Absorption 7.16MSF 5.33MSF 5.42MSF 3.30MSF 2.23MSF 2.52MSF 0.35MSF 0.05MSF -2MSF N N O O O O O O O O O O O N N N N N N N N N N N 0— Net Absorption (SF) Background Regional Competitiveness Industrial Land Use Absorption Recent Industrial projects in Monticello GreaterMSP also maintains a regional indicators dashboard (below), which tracks general economic, environmental, and social outcomes both directly and compared with several peer regions (Atlanta, Austin, Boston, Charlotte, Chicago, Dallas -Ft. Worth, Denver, Pittsburgh, Portland, San Francisco, and Seattle). These reflect on the region's overall economic competitiveness. Looking at the most recent version for 2021, Minneapolis ranks middle of the pack or better on most indicators around economy, business vitality, talent, education, infrastructure, environment, livability, and vital statistics The exceptions include lower than average growth rates for gross regional product, jobs, and new establishments - as well as racial disparities in employment and income. INCLUSIVE GROWTH ANNUAL JOBS PAYING WAGE GAP EMPLOYMENT GAP GROSS REGIONAL ANNUAL AVERAGE FAMILY SUSTAINING WHITE - OF COLOR WHITE - OF COLOR PRODUCT GROWTH` JOB GROWTH WEEKLY WAGE WAGE' (AGED 16 64 YEARS)' (AGED 16-64 YEARS) 0.8°'° 0.8% $17240 71.1% 32.7% 9.1% MSP TREND: WORSE MSP TREND: WORSE V SE MSP TREND: BETTER MSP TREND: BETTER MSP TREND: BETTER MSP TREND: WORSE V PEER RANK: 11 PEER RANK: 10 PEER RANK: 7 PEER RANK: 3 b PEER RANK: 7 4 PEER RANK: 11 q ENTREPRENEURSHIP LOANS TO BUSINESSES ANNUAL AMOUNT OF VALUE OF PATENTS ISSUED UNDER $1M IN NEW ESTABLISHMENTS VENTURE CAPITAL EXPORTS PER 1,000 WORKERS REVENUE ESTABLISHMENTS SURVIVING 5 YEARS $1.52B $18.6B 1.82 $897m 9,662 55.3°x° MSP TREND: BETTER MSP TREND: WORSE MSP TREND: BETTER MSP TREND: WORSE MSP TREND: BETTER MSP TREND: BETTER PEER RANK: 8 b PEER RANK: 8 b PEER RANK:6 b PEER RANK:8 NJ PEER RANK: 12 `C_> PEER RANK: 1'a TALENT AVAILABILITY FOREIGNBORN FEMALES AGED POPULATION POPULATION 25+ POPULATION 25+ NET MIGRATION OF YEARLY GROWTH IN 16-64 YEARS AGED 16-64 YEARS WITH AN ASSOCIATE'S WITH A BACHELOR'S 25-34 YEAR OLDS TECH JOBS° WORKING WORKING DEGREE OR HIGHER DEGREE OR HIGHER +4,778 -1.0°% 78.5*,- 79.4% 53.5°/° 43.2% PEOPLE MSPTREND:WORSE MSPTREND:WORSE MSPTREND:BETTER MSPTREND:BETTER MSP TREND: BETTER MSP TREND: BETTER PEER RANK: 5 Q PEER RANK: 7 Q PEER RANK: 1 b PEER RANK: 1 Q PEER RANK: 3 `Cm'J PEER RANK: 6 p 1) Real change based on inflation-adjusted GRP, chained to 2012 dollars. 2) Defined as the annual wage an individual most earn to supporta set of typical expenses for necessities fare family of four with two working adults and two children (MSP= $35,485), per the MIT Living Wage Calculator. 3) Percent gap is between median wages of people of color and white, non - Hispanic workers' median wages. 4) Data reflects COVID-19 impact It's important to note that Monticello has a solid existing economic base in terms of diversification and economic growth. Despite a heavy reliance on MNGP, employment is diversified across employers and sectors. Proactive approaches to economic development have resulted in the significant achievements with business retention and attraction. City tools have included assistance with land acquisition and assembly, construction of public infrastructure, remediation of brownfields, tax increment financing, and a revolving loan program. Level of assistance provided has been assessed based on project need, availability of resources, and alignment with city goals. Due to limited resources, it will be important to prioritize areas and investments using these criteria. Since the early 2000% Monticello has been active in building out new industrial areas. To help track and predict the rate of industrial growth, the City conducted a 2020 study on industrial land absorption & demand. Based on this study, and associated analysis, it was estimated that Monticello currently experiences an average industrial absorption of about 5 acres a year - equating to ioo acres through the year 204o, at the current rate. The chart to the right from the study outlines industrial land absorption within Monticello from 2013-2oi8. This incremental rate of growth could be altered based expansion of existing businesses, or opportunity business attractions. In 2000, the City of Monticello was made aware of a large potential manufacturing company that was exploring locating to the city. Site feasibility assessments identified several possible locations, with land consumption around 30-5o acres or more forthis use. While this is currently on hold (based on significant questions about site feasibility and public costs of serving the sites), it opened up possibilities regarding the suitability of the area for larger industrial uses that could maximizes the city's advantages, and provides a larger economic benefit. Further, the feasibility work highlighted the importance of the city to continue identifying and tracking land feasibility for prospective development and needs. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background 2013 Dollar Tree 0.75 Von Hanson's 1.77 2014 Aldi's 2.00 Goodwill 2.60 2015 Mattress Firm 0.93 Kwik Trip 2.23 2016 Auto Zone 1.73 Dalheimer Beverage 6.20 Aspen Dental 1.13 LaMont Retail 0.75 Camping World 1.58 Sherburne State Bank 0.89 2017 Burnham Mini -Storage 6.28 Dental Clinic 1.68 Red Rooster 0.10 Mills Fleet Farm 20.0 2018 Twin City Staffing 1.12 Bondus Expansion 0.76 Moon Motorsports 1.46 Ryan Auto 5.00 Total Commercial Acreage Absorbed: 53.00 Total Industrial Acreage Absorbed: 6.96 Average Acreage Absorbed/Year: 5.24 Average Acreage Absorbed/Year: 1.16 Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Industry and Employment in Monticello Industrial Land Use Supply Monticello has approximately zoo acres of land for industrial and employment uses in its existing inventory, with 95 gross acres available for industrial development - most of it located in the City's two industrial parks. The City's newest industrial park, Otter Creek Business Park (loo acres), has an estimated 48 gross acres suitable for development including 23 acres in several shovel -ready sites. Monticello also has limited land available in Oakwood Industrial Park (also loo acres) for both development and redevelopment. Most of the sites in Oakwood are approximately 5 acres. The supply of available land and estimated annual industrial land absorption rate suggests that the city will likely be able to accommodate small to mid- sized uses for 20+ years on a variety of small to medium sized sites (2-15 acres). However, with the prospect of large-scale possibilities, Monticello is looking beyond existing inventory to see what areas could be made available beyond the city's existing land supply. In particular, warehousing and distribution uses, which may be attracted by Monticello's proximity to the metro area and access to 1-94, would require sites that are significantly larger than what is currently available. Additionally, it takes time to acquire and prepare land for industrial development, as even private development requires public infrastructure. Conducting this study in advance of specific interests intends to proactively position the city for strategic growth. Existing Industrial Supply Industrial Land Uses and the Comprehensive Plan In Monticello 2040, the City's comprehensive plan, the future land use map guides approximately 1,729 acres for industrial and employment uses. The comprehensive plan identifies three land use types: Light Industrial Park (757 acres), General Industrial (22o acres), and Employment Campus (752 acres). • Light Industrial Park (LIP) guides areas for warehousing and distribution, manufacturing, research and development, medical laboratories, computer technology, and professional and corporate offices. Floor area ratio is 0.50 to 0.75, with a height of up to four stories and no minimum lot size. This corresponds to the zoning designation Light Industrial District (I-1). General Industrial (GI) guides areas for light manufacturing, small warehouse and delivery operations, recycling facilities, production brewing, and construction and contracting yards. Floor area ratio is o.5o to 0.75, with a height of up to two stories and no minimum lot size. This corresponds to the zoning designation Heavy Industrial District (1-2). Employment Campus (EC) guides areas for research and development, medical laboratories, advanced manufacturing, green technology, renewable energy, computer technology, professional and corporate offices, light manufacturing, and industrial engineering facilities, along with some limited commercial. Floor area ratio is 0.50 to 0.75, with a height of up to six stories and no minimum lot size. This corresponds to the zoning designation Business Campus District (IBC). Comparison of Monticello'sTwo Business Parks Size Land Use Undeveloped Otter Creek Business Park 13o ac light industrial 48 ac Oakwood general Business Park 110 ac industrial 15 ac Monticello Future Land Use Map The majority of land use guidance in the NW Site is industrial and commercial, while low-density residential and preservation lands encompass the East Site. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Trends Impacting Industrial Competitiveness The following discuss trends and factors to consider regarding the location of industrial uses in the Monticello area. For the sake of clarity and brevity, this summarizes prior reports rather than duplicating analysis and citations. Regional access and mobility. Monticello's proximity to two metropolitan regions, as well as direct access to Interstate 94 and Trunk Highway (TH) 25, make it a strategic location for the movement of goods and services. These advantages have been augmented by capacity increases on 1-94 south of Monticello, as well as access to the rail corridor in Sherburne County via TH 25. Additional plans for future interchanges and river crossing off of 1-94 would further this advantage. Uses such as warehousing, distribution, manufacturing, and some retail prioritize this strategic advantage in choosing sites. Growth in distribution networks is an observable national trend that is driving demand for logistics and strategic locations. Manufacturing jobs. Traditionally a base for industrial areas, manufacturing has experienced decades of transition and decline in some sectors, especially due to automation and globalization of trade. However, the Central Mississippi River Regional Planning Partnership's Framework 2030 plan notes growth in manufacturing jobs in Wright County from 2oo8- 20i8, and Minnesota DEED forecasts (after correction for the pandemic) continued growth through 2028 for both Wright and Sherburne Counties. With a strategic location and access to workforce, Monticello may reasonably expect to be able to attract some of this growth.. Environmental, social, and governance (ESG) principles. ESG refers to a mindset within the real estate development industry that prioritizes goals beyond just economics and profitability — to focus on environmental sustainability, environmental justice, climate action, and related values. The importance of these goals has been amplified in recent years, with increasing interest in younger generations, particularly Millennials. These factors may be critical in both talent recruitment and retention, as well as ensuring community support for new or expanded industry. While these principles are being driven by the private sector, city participation and policy may also be a factor. Workforce availability and retention. For Monticello, location near two metro areas, and in a livable community, will be critical to ensuring access to a stable and growing workforce does not constrain growth going forward. A recent Central Mississippi River Planning Partnership (CMRP) study noted that regional job growth is outpacing regional household growth for the Wright and Sherburne County areas. Monticello's employment inflow/outflow statistics indicate a significant opportunity to retain workforce leaving the community and generate economic impact from those commuting in. Due to this dynamic, ensuring that Monticello is a livable community with a range of housing options is an important economic development strategy, particularly from the perspective of workforce attraction and retention. Availability of amenities to attract workforce. Increasingly businesses are recognizing the importance of having on site or nearby amenities for their workforce to enjoy. Amenities may include walking trails, access to lunch options, or nearby businesses to do mid day errands. With competition for workforce, employers and Cities often create partnerships to increase the attractiveness of the environment, which in turn helps businesses compete for workers. Integrating with communities: Most light industrial and employment uses are clean, quiet, and relatively innocuous machinery and equipment. This renders many of them as perfectly compatible with nearby residential and commercial uses. While off site impacts always have to be considered carefully, as the City evolves, employment uses should be integrated in the city in a compatible manner wherever possible, and separated only when absolutely necessary. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Job Density Job density is an important measurement of the benefits of a industrial uses in Monticello. Akin to measuring a car's efficiency by miles per gallon versus size of gas tank, the City should take care with industrial development to make sure the land (and the businesses on it) are generating as many jobs / acre as feasible. This is due largely to the cost of both land, and of serving new land uses with public infrastructure. Flex commercial buildings - the most common building for light industrial uses - are large open bay structures designed for interior flexibility. They can be divided for multiple tenants and / or they can be divided for multiple different operations for one business. Typically, the interior space is used for some combination of office/ production/warehousing. Businesses using the space for primarily office or manufacturing will have higherjob density than businesses using the space for warehousing and distribution. Logistics Office Access to People � 7 Ei nflFl f o n iii Q and Amenities Logistics Office Pr +/- 5 Jobs/acre cduction i i Q Logistics Production Office ��..- o►-.mo-om- ►r - Logistics Production Office iii f 20jobs/acre Scale and Orientation Employment uses come in a variety of shapes and forms. Some have strict siting requirements, others are more flexible. The diagram below describes a broad spectrum of employment buildings, their land area, and the number of jobs they might produce. The illustration is not all encompassing, but illustrates the variety and differences amongst select types. Generally, the larger the building the more it will have a regional orientation - because it likely serves a broader region. These buildings tend to be located on the edge of a city, away from residential and with superior access to the region. Smaller buildings to the right of the diagram tend to have a community orientation and fit within the fabric of the city quite well. 2-5 jobs/ acre Office Accessto 10-20jobs/ [Logistics ii Highway acre Industrial and Employment Types �a ey � to 2 Industrial Types and Employment Densities Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Three Approaches to Locating Industry There are three basic approaches to locating industry and employment in a city. Many cities that grew up around industry in the early part of the loth Century have their industrial and original employment areas in the middle of the city. This arrangement assumes industry is the largest value generator in the city, thus the interface is maximized. This is a common arrangement for many river cities whose early modern economies were focused on the movement of goods and materials between river and rail. In this arrangement, neighborhoods are adjacent to business and industry with "company neighborhoods" serving the "company" with immediate proximity. Many cities who came of age in the middle of the loth Century took a different approach to the relationship between housing and industry. Reacting to the environmental concerns of living adjacent to industry, and with modern transportation options, cities intentionally located industrial operations outside, or Industry in the Middle of the City beyond the edge of the city. Often the industrial areas might be buffered from residential uses with educational, office, or research uses. This approach reduced (and sometimes eliminated) conflicts that might arise between uses, however it also created a great demand for transportation infrastructure. A third approach is to locate several smaller industrial and employment areas throughout the city. This approach common where value is generated by the co -location of knowledge or research activities together with manufacturing. The co -location of components increases the value of both. This arrangement is also common in cities that have grown up and around manufacturing areas that were once on the edge of their city. This is the case with Monticello. The existing industrial parks - Ottter Creek and Oakwood - were initially developed on the edge of the City. Over time, the city has grown up around them. Those business parks are now fully enveloped by the City. Monticello most closely resembles the third approach - the co -mingling of manufacturing within and adjacent to others uses. Industry an the Edge or beyond the Edge of the City m Smaller pockets of Industry integrated into the City Integrate Where Possible; Separate When Necessary Prior to WWII, it was common and at times necessary to separate and isolate industrial uses from other urban uses. Most heavy production facilities tended to create significant noise, dust, light and other externalities that could have negative effects on surrounding areas. However as industry and cities have evolved, "smokestack" industries have been replaced with lighter industry and advanced manufacturing processes that are far less intensive. Combined with ever increasing environmental regulations, the vast majority of light industry and manufacturing creates less impacts on surrounding areas. While impacts such as hours of operation, outdoor storage, and truck volumes still have to be carefully considered, there can often be great benefits to integrating light industry within a community - such as reducing sprawl, lowering public infrastructure costs, reduce access barriers tojobs and services, and locating potentially mutually beneficial businesses in near proximity. At times however, some uses should necessarily be separated and isolated. Heavy manufacturing, or businesses that value access to freeways, will generally not integrate well within a neighborhood. Separated & Isolated Separated Integrated Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Summary of Past Plan Guidance Comprehensive Plan Growth Tiers Most of the Northwest Site is within the Secondary Growth Tier, in part due to the potential for a freeway interchange. Only a small segment of the East site was contemplated as a growth tier, encompassing Primary and Tertiary tier designations. primary secondary tertiary Orderly Annexation Areas Most of the Northwest site is within the City's orderly annexation area. About half of the East site is within the orderly annexation area. The East site also extends to the edge of Monticello township and the west edge of the City of Otsego. City of Monticello Monticello Orderly Annexation Area Monticello Township Planned Utilities The Comprehensive Plan anticipates utility expansion into the Northwest site to accommodate future growth. Sanitary sewer and water mains are planned as extending along CR 39, and then north into the site at Cameron Ave. While the Plan did not anticipate utility extension into the East site, subsequent studies envision a future lift station at approximately the intersection of CR 39 and Hall Ave. Comprehensive Plan Future Land Uses Light Industrial Park: A broad range of traditional industrial uses, such as warehousing and distribution. Light industrial parks will play a significant role in diversifying the existing tax base. Employment Campus: High job concentrations of manufacturing, R&D, technology, or corporate offices. Regional Commercial: Large-scale, regional -serving commercial uses along interstates. Estate Residential: Large estate, rural housing. Development Reserve: Properties located within the MOAA, inteded as reserve land for future development. _ Light Industrial Park _ Regional Commercial Employment Campus Estate Residential Development Reserve Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Summary of Past Plan Guidance Future Roadways The City anticipates the majority of its future roadway network to be built to the south and west of the current city limits. Within the Northwest area, this includes a new minor and major collector, providing new access to and through the interior of the site. No planned roadways exist in the East area. Of critical consideration is a long -held vision for a future interchange along 1-94 to provide access to other portions of the city, and route regional traffic out of downtown Monticello. This future interchange was envisioned as being located within the Northwest area, as indicated in blue above, serving primarily the west side of the city as growth occurs to the north and west. In order to re-route regional traffic, this interchange would need to be paired with a new river crossing bridge, providing a connection up to Hwy 10. Interchange and Bridge Of critical consideration is a long -held vision for a future interchange along 1-94 to provide access to other portions of the city, and route regional traffic out of downtown Monticello. Further, the interchange would aid future industrial growth reliant on additional access to the interstate. The future interchange was envisioned in the Comprehensive Plan as being located within the Northwest area, as indicated in blue above, serving primarily the west side of the city as growth occurs to the north and west. Adding to the importance of an interchange is a desire to route regional traffic out of downtown Monticello. To do so would require a new river crossing to be paired with a future interchange. While the Comprehensive Plan only considered a future interchange location, a 2019 study assessed five possible interchange and bridge locations, including one in the Northwest side and one in the East side. trail Future Greenways 0 Nord IV Planned Trails and Pathways The Comprehensive Plan proposes a series of greenways through the two study areas. The Northwest site is envisioned to have two greenways that converge in the near center of the site, Connecting CR 75 to the Bertram Chain of Lakes. This trail would likely rely on the 12oth St NE bridge crossing over 1-94. The East site is proposed to have a greenway connection between Pelican Lake and the Mississippi River Trail. This alignment would require a new crossing of 1-94. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Background Surrounding Communities Ever -Changing Context As Monticello plans its future growth types and areas, it should maintain awareness and coordination with the ever-changing surrounding communities. Below are known considerations relevant to understanding future growth opportunities and barriers. Otsego Westward Growth. Otsego currently has land up to the eastern edge of the East study area. The most recent plans indicate that Otsego intends to continue growing to the west towards Monticello, and possibly establish an industrial/commercial campus adjacent the East study area. This could provide a potential opportunity for Monticello to coordinate on future land uses, and determine if the City wishes to establish a "greenbelt" buffer between the two communities. Big Lake Transportation -Based Project: Big Lake/ Sherburne County has been exploring a large transportation -based industrial site project, that would be siting near a future new bridge crossing, if located within the East study area. The project continues to be in the exploratory stage. Industrial Development Feasibility Study r • i Con ptual �. Loc ion for Rai � and Project ^ 00' j v 01 I Fgo L--- I �---- ----- Surrounding Community Considerations Anticiapted development growth from Otsego, and prospective development in Big Lake and Sherburne County, present barriers and opportunities of future Monticello growth. Monticello, Minnesota June 9, 2022 Background 3. Northwest Monticello Land Analysis Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Northwest Site The Northwest Site The Northwest Site consists of nearly 13oo acres adjacent to 1-94 along the northwest edge of Monticello. The site contains a mix of uses, with a small township neighborhood of approximately 12 houses in the middle of the site. Currently, the northwest and southeast portions are used for agriculture, and the middle of the site is laced with wetlands, streams, and wooded lands. The Site has minimal infrastructure of some rural roads and no municipal water or sewer. It is connected to the rest of the City along CR 39 and 12oth Street NE, which crosses the Interstate before connecting into Downtown Monticello. The Bertram Chain of Lakes is located south of the Site and the Montissippi Regional Park is located north of the Site. The City has aspirations to connect these parks with a greenway / trail connection that could go through the Site. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Northwest Site CURRENT CONDITIONS 1285 Gross acres $7.9 M Total Land Value (2021) $6.o M Total Building Value (2021) $14.0 M Land + Buildings $10,800 Value /Acre Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Northwest Site General Site Characteristics Topography The Northwest site is fairly flat, with significantly less extreme changes in topography than the East Site. Elevations are generally more consistent, spanning a range of approximately soft across the site. An elevated hill cuts across the northern edge of the site, which provides about the only significant topographical development barrier in the whole area. Waterways, Wetlands, and Floodplain Yr 1 A pair of waterways run from a series of lakes and ponds down to the Mississippi River, and cut across the southern edge of the site. These streams conjoin about half way across the site, but create a depression along the site's southern edge. Associated wetlands are located along the stream paths, with some additional located within the center of the site. Along the north edge of the site rests a large wetland, extending from the nearby Mississippi River. Industrial Development Feasibility Study Monticello, Minnesota Existing Structures t ..e l ' ;i 1.11;'3, _ a• Typical of rural development, the site is sparsely developed with only a handful of large -acre farmstead properties. These single family homes tend to surround either agricultural fields or the wetlands along the stream path. There is a small township residential neighborhood of approximately a dozen homes, near the center of the site at the bend of Cameron Ave (yellow) City Utilities City utilities approach the site from the south via Chelsea Rd and the development south of CR 39. The Monticello 2040 Comprehensive Plan anticipates upgrades to utilities along CR 39 and extensions into the Site along Cameron Avenue. June 9, 2022 Existing Transportation Access are ind The Site is adjacent to 1-94, however not connected to it. The Monticello 2040 Comprehensive Plan introduces the possibility of a new interchange in the vicinity of 12oth Street. County and rural roads offer a framework for a partial future street grid. Cameron Ave is the primary internal access road, providing connections to Monticello via CR 39 to the south, and surrounding agricultural lands to the north via 12oth St and 127th St. Sidewalks and Trails \\ w N� Montissippi County Park Y •Y Y Y Y Y Y Y 'Y .......... + r •� of Lakes There are no sidewalk or trails connected to the site; however there are plans to extend trails from Bertram Lakes to Montisippi Regional Park Northwest Site Summary of Development Issues & Opportunities The cumulative impact of the Northwest Growth Site's physical features presents a series of conditions that moderately limit the development potential of the area. These features also present interesting natural feature possibilities and opportunities to further City goals related to connectivity via a greenway system, and job growth. Wetlands and other environmental features consume approximately 25% of the site. However their arrangement -weaving through the site -creates a cumulatively greater barrier spread across the whole site. These wetlands, along with the small township neighborhood in the center complicates contiguous development. Current regional access is limited, though not non-existent. Chelsea Rd and CR 39 offer connections to theTH25 Interchange near downtown approximately a mile away. The potential for a future interchange at 12oth St open additional interstate access, development potential, and reouting traffic out of downtown. This location is one of two preferred locations identified for a river crossing and interchange by the 2019 study. !T Potential Bridge Crossing Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Northwest Site Growth Alternatives _ Employment Campus _ Emplyment (Light Industrial) _ Commercial Residential Alternative A is similar to the initial concept from or a series of small -mid light industrial uses. New road the Comprehensive Plan, and reexamines it through connections, in this concept, skirt around the existing an updated lens. The Alternative includes a new township housing in the middle of the site while still interchange to serve an employment campus at providing an interchange with 1-94. A near-term Cameron and 12oth Street. The wetlands, planned bridge crossing in this concept would likely be difficult trail connections, and other valuable environmental however, given the anticipated complications with an resources dictate that this area is ultimately difficult to active MNGP site. develop for the largest footprint buildings (distribution Employment (Campus) and logistics) in Blocks A -D, but possibly attractive 750 for employers looking for amenities that connect the 75 site to the community. Block E however, at loo acres, Employment (Campus) could support one or more large distribution centers 750 INFRASTRUCTURE COST ESTIMATES Element DEVELOPMENT Interchange $40 M Parcel Acres Net Acres* Use Development Programming Jobs / units A 75 37.5 Employment (Campus) Advanced Manufacturing, Green Tech, Office, Industrial Engineering, Retail, Restaurant, Hotel 750 B 75 37.5 Employment (Campus) Advanced Manufacturing, Green Tech, Office, Industrial Engineering, Retail, Restaurant, Hotel 750 C 25 17.5 Commercial (Regional) Box Store, Department Store, Hotel, Restaurant 350 D 175 87.5 Employment (Campus) Advanced Manufacturing, Green Tech, Office, Industrial Engineering, Retail, Restaurant, Hotel 1750 E 100 70 Employment (Light Ind.) Warehouse, Distribution, Manufacturing, Office, Medical Lab 700 F 200 120 Neighborhood Multifamily Residential, Senior Living 720 G 75 45 Neighborhood Multifamily Residential, Senior Living 270 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $40 M County Roads $4.8 M Local Roads $11.2 M Sewer, water lift station $6.5 M TOTAL $62.5M • Jobs 4300 Units 990 *Net acres accounts for necessary internal roads and other elements to determine a net development acreage within each site's buildable acreage. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 NorthWest Site ALTERNATIVE B - Interchange Alternative -7r 7—r"i'l, �Nks-" I MNGP _ Employment Campus _ Emplyment (Light Industrial) _ Commercial Residential Alternative B differs from Alternative A primarily in how it addresses the residential in the middle of the site and the location of the interchange and bridge crossing. Instead of integrating streets with the residential pocket, this Alternative realigns 12oth Street away from the neighborhood, allowing the residential pocket to be accessed from Cameron Avenue only. In doing so, the interchange can be moved towards the east, along the "seam" between MNGP, the Monticello Softball Fields, and Montissippi Park. Administrative measures were completed for the softball fields that would allow site impacts on the fields, such as a future connective roadway project as part of the interchange and bridge. This concept also consolidates the northern portion of the site into a single large site for an employment campus. The site would be integrated with a trail and environmental connection running in the middle of the campus. Instead of a direct connection from the Interchange to 12oth St NE, this Alternative connects the interchange directly to Briarwood, which connects directly to CR 39. Sites to the east and south of the interchange can be developed with light industrial and medium density residential uses. INFRASTRUCTURE COST ESTIMATES Element DEVELOPMENT Interchange $40 M Parcel Acres Net Acres Use Development Programming Jobs / units A 75 37.5 Employment (Campus) Advanced Manufacturing, Green Tech, Office, Industrial Engineering, Retail, Restaurant, Hotel 750 B 1.25 62.5 Employment (Campus) Advanced Manufacturing, Green Tech, Office, Industrial Engineering, Retail, Restaurant, Hotel 1.250 C 50 35 Commercial (Regional) Box Store, Department Store, Hotel, Restaurant 700 D 1.00 70 Employment (Light Industrial) Warehouse, Distribution, Manufacturing, Office, Medical Lab 700 E 200 120 Neighborhood Multifamily Residential, Senior Living 720 F 125 75 Neighborhood Multifamily Residential, Senior Living 450 G 75 52.5 Employment (Light Industrial) Warehouse, Distribution, Manufacturing, Office, Medical Lab 525 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $40 M County Roads $4.8 M Local Roads $24.9 M Sewer, water lift station $6.5 M TOTAL $76.2M Jobs 3925 Units 1.1.70 Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Northwest Site ALT Montissippi Regional Park M _ Employment Campus _ Emplyment (Light Industrial) _ Commercial Residential Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Alternative C considers the future of the site without an interchange. Having no additional freeway access, the site would rely more on local connections and less on access to the interstate - though it is important to note that it is not cut off from the 1-94. Development that desires regional access could use Chelsea Road (an industrial road) to accessTH25 and the interstate. While this does make the site less desireable for distribution and logistics, it does maintain a limited amount of smaller lot light industrial uses, commercial, and neighborhood development. The overall development capacity would be limited and likely not extend north of 12oth Street. Additionally, with no interchange, a bridge connection across the river would be unlikely. INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $o M Parcel Acres Net Acres M � Development Programming Jobs / units A B 125 100 75 70 Neighborhood Employment (Light industrial) Multifamily Residential, Senior Living 450 Warehouse, Distribution, Manufacturing, Office, Medical Lab 700 C 200 120 Neighborhood Multifamily Residential, Senior Living 720 D 125 75 Commercial (Community) Office, Grocery, Shopping Center, Restaurants 450 E 50 35 Employment (Light industrial) Warehouse, Distribution, Manufacturing, Office, Medical Lab 350 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $o M County Roads $4.8 M Local Roads Sewer, water lift station TOTAL $7.2 M s6.5 M $18.5M Jobs 1225 Units 1o8o NorthWest Site 3. East Monticello Land Analysis Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site The East Site The East Site consists of just over 130o acres along the city's eastern edge, and along the City of Otsego's western edge. While the Site is partially within Monticello's Orderly Annexation Area, it is only guided for partial and minimal residential development in the Comprehensive Plan. Industrial interest fielded by the City since the Comprehensive Plan was adopted has elevated this site for various rounds of assessment, including this study. As such, any City adoption or selection of concepts outlined in the following scenarios would likely trigger the need fora Comprehensive Plan update. The Site has minimal existing municipal infrastructure, which is currently comprised solely of a series of rural roads. There is no municipal sewer or water. The Site has a rolling topography with wetlands, slopes, and hydric soils, as it is part of a connected hydrology between Pelican Lake and the River. Ditch 33, part of a rural stormwater system, runs through the site and would have to be improved in order to develop many portions of the site. The site's southern edge abuts 1-94, and is prominent to vehicles on the highway. It is therefore among the first visions of the City that travelers experience as they head north from the Twin Cities. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site CURRENT CONDITIONS 1313 Gross acres s8.9 M Total Land Value (2021) $7.2 M Total Building Value (2021) s16.1 M Land + Buildings $12,300 Value /Acre Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site General Site Characteristics Topography Existing Land Use & Structures Transportation Access The Site generally slopes - — The Site is used primarily from the south to the for agriculture. There north towards the " =" `Q are several farmstead Mississippi River. Though o clusters scattered across the Site has been used for """" "'"'""""" ""' the site. Residential agriculture, it is not flat - L __ > " " _ _ neighborhoods approach its is rolling with localized: `� _ . a �� . the site from the west. high and low points. Most - ;.,i;. Q Q Several large lot homes notably, the Site has a have been developed "crown" in the middle of _~ ' along the edged of the that rises approximately _ , ''R;' site and along Harding 9o' from the lowest i:: '�-., Street. These homes perimeter of the site, to a ..� �`.,f,r typically have been high point at 1030'. subdivided off from a " larger farm and have direct access to either *" �`• A11111- Harding IfertorJaber Avenues. Waterways, Wetlands, and Floodplain Industrial Development Feasibility Study The Site has several water i and natural features that will impact its potential �— for new land uses in the future. Weltands, hydric soils, and floodplains all limit developable area. A series of hydrologically connected wetlands follow i the diagonal contours of the Site. The County operates Ditch 33 that runs adjacent to the west edge of the site. The ditch has a history of flooding and has created an extensive wetland march. Flooding on occasion backs up to the south edge of 1-94. Relocating or repairing Ditch 33 may be essential to the development of any land in the Study Area. "*9 A City Utilities Sidewalks and Trails Water and sewer t L' n service from Monticello _ t to �C comes from the west. o Development in this area J would require extension , _ of service along 95th St NW and/ or along County Road 39 and into _ Monticello I Otsego the area via Harding Ave. 1` r As Otsego grows Jr 1 i westward, it may r be possible to serve =� ft portions of this study area through ajoint • agreement. Pelican Lake Monticello, Minnesota I June 9, 2022 ft The Site is connected to Monticello via 12oth QStreet and County Road 0 39. The closest interstate access is at Fenning Ave, approximately 2.5 miles to the west. Fenning Ave is also the nearest interstate crossing. 1 — Some of the neighborhood developments to the west of the site have sidewalks, however as they are largely closed loop roadway network, they offer very little connectivity potential. The Comprehensive Plan envisions a future trail connection between Pelican Lake and the Mississippi Trail through the site. This connection would require a new 1-94 crossing. r � East Site '-Ditch 33""""" " " Industrial Development Feasibility Study The Site has several water i and natural features that will impact its potential �— for new land uses in the future. Weltands, hydric soils, and floodplains all limit developable area. A series of hydrologically connected wetlands follow i the diagonal contours of the Site. The County operates Ditch 33 that runs adjacent to the west edge of the site. The ditch has a history of flooding and has created an extensive wetland march. Flooding on occasion backs up to the south edge of 1-94. Relocating or repairing Ditch 33 may be essential to the development of any land in the Study Area. "*9 A City Utilities Sidewalks and Trails Water and sewer t L' n service from Monticello _ t to �C comes from the west. o Development in this area J would require extension , _ of service along 95th St NW and/ or along County Road 39 and into _ Monticello I Otsego the area via Harding Ave. 1` r As Otsego grows Jr 1 i westward, it may r be possible to serve =� ft portions of this study area through ajoint • agreement. Pelican Lake Monticello, Minnesota I June 9, 2022 ft The Site is connected to Monticello via 12oth QStreet and County Road 0 39. The closest interstate access is at Fenning Ave, approximately 2.5 miles to the west. Fenning Ave is also the nearest interstate crossing. 1 — Some of the neighborhood developments to the west of the site have sidewalks, however as they are largely closed loop roadway network, they offer very little connectivity potential. The Comprehensive Plan envisions a future trail connection between Pelican Lake and the Mississippi Trail through the site. This connection would require a new 1-94 crossing. r � East Site Summary of Development Issues & Opportunities The East Site currently has limited access to regional highways, and several natural features generally unfavorable to development, such as wetlands, hydric soils, significant topography, especially north of Both Street NE. As a result, the East Site is comparatively less well suited for employment uses, especially through the interior of the site. The interior wetlands and topography however could provide an attractive natural "greenbelt" buffer along the City's eastern edge. Conversely, the southeast triangle formed by goth St NE and 1-94 is significantly flatter than the rest of the site, and could be a favorable location for small and medium sized light industrial or even distribution employment uses. Attracting employment uses to the East Site is almost certainly contingent on improved regional access via a future interchange. The lower triangle is would serve one as one of the two favored locations for a interchange and new river crossing as identified in the 2019 study. To accommodate the increased regional traffic would require significant upgrades to Harding, Ifert or Jaber (depending on interchange and bridge location). Importantly, an interchange and bridge would functionally create a barrier to future eastward expansion of residential development, as shown in Alternative B below. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site Growth Alternatives ALTERNATIVE A T _ Employment (Distribution) _ Employment (Light Industrial) Residential Alternative A positions a new interchange in the middle of the lower would be similar to the recently completed Fallon Avenue bridge, triangle, connecting directly into Jaber Ave. This alternative creates west of this location in between the existing two interchanges. A new a large triangular area suitable for light industrial and distribution interchange would also likely spur development pressure on the south uses. 85th Ave NE leverages its connection into Otsego, benefitting side of 1-94. However serving this area would require independent additional industrial development for both communities. utility runs and street connections from the west. The concept also provides the framework for multiple new neighborhoods north of 85th St NE. The new neighborhoods would focus on a strong linear wetland and greenway feature aligned diagonally through the site. The greenway could provide shared/ public recreational spaces and environmental amenities, as well as a desired connection between the Mississippi Regional Trail and Pelican Lake. This alternative also presents a new non -interchange connection across 1-94 between Harding Ave and Jason Ave. This connection Notably, this concept would result in expensive public costs of extending utilities to reach the employment triangle adjacent to the interchange, especially if residential development does not grow towards the east. While employment uses will be reliant on the interchange, residential development could occur organically and incrementally without an interchange, reaching the employment triangle nearer to when an interchange is built. Jobs 1558 *Net acres accounts for necessary internal roads and other elements to determine a net development acreage within each site's buildable acreage. Units 1440 INFRASTRUCTURE COST ESTIMATES Element DEVELOPMENT Interchange $40 M Parcel Acres Net Acres* Use Development Programming Jobs / units A 75 45 Neighborhood Single Family, Duplex 18o B 75 45 Neighborhood Single Family, Duplex 18o C 75 45 Neighborhood Single Family, Duplex 18o D 50 30 Neighborhood Single Family, Duplex 120 E 100 6o Neighborhood Single Family, Duplex 240 F 125 75 Neighborhood Single Family, Duplex 300 G 100 6o Neighborhood Single Family, Duplex 240 H 150 105 Employment (light industrial) Warehouse, Distribution, Manufacturing, Office, Medical Lab 1050 1 75 52.5 Employment (distribution) Warehouse, Distribution 158 J 50 35 Employment (light industrial) Warehouse, Distribution, Manufacturing, Office, Medical Lab 350 Jobs 1558 *Net acres accounts for necessary internal roads and other elements to determine a net development acreage within each site's buildable acreage. Units 1440 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $40 M Greenway Crossing $12 M County Roads o Local Roads $30.7 M Sewer, water lift station $5.1 M TOTAL 587.8 M Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site ALTERNATIVE B _ Employment (Distribution) _ Employment (Light Industrial) Residential Alternative B locates an interchange on the site's western edge - the current existing eastern edge of the City. The interchange would provide strong access to the employment triangle south of 85th Ave NE. However if Harding Avenue becomes a future bridge connection, it likely creates a barrier to further residential development due to the roadway's heavy regional traffic and truck volumes, as regional traffic is rerouted out of downtown following the new bridge. As such, residential development is only shown in Section A, with the interior of the site being held as wetland, conservation, and/or development preserve. This scenario has the effect of creating a strong edge to the City and a clear distinction between Monticello and Otsego. Rather than simply blending from one city to another. The area between Harding and Jaber Avenue (between Cty Rd 39 and 85th St NE) would likely remain agricultural for the foreseeable future - a greenbelt that defines the edge of Monticello. As with Alternative A, an interchange would likely result in development pressure on the south side of 1-94 towards Jason Avenue. As noted in Alternative A however, development in this area would require utility service from the west and south of the interstate and not from the north. • Jobs 1365 Units 360 INFRASTRUCTURE COST ESTIMATES Element DEVELOPMENT Interchange $40 M Parcel Acres Net Use Development Programming Jobs / units TOTAL $58.3-M Acres A 75 45 Neighborhood Single Family, Duplex 1-80 B 75 45 Neighborhood Single Family, Duplex 1-80 C iso 105 Employment (light Warehouse, Distribution, 1-050 industrial) Manufacturing, Office, Medical Lab D 1-50 105 Employment Warehouse, Distribution 31-5 (distribution) • Jobs 1365 Units 360 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange $40 M County Roads o Local Roads $23 M Sewer, water lift station $5.1- M TOTAL $58.3-M Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site ALTERNATIVE C Potential Employment Uses Dependenton lnterchang and Utitities from F tsego _ Employment (Light Industrial/ Distribution) Residential Alternative C considers a future without a new interchange. In this case, the site will likely not be developed with any employment or industrial uses, unless Otsego develops an interchange within their city boundaries. Lacking that regional access, development in this area will likely be slow and organic - a modest expansion of City limits to the east - and follow a comparable pattern as outlined in the Comprehensive Plan. As with Alternative B, this Alternative has the effect of maintaining a greenbelt of agriculture along the east edge of the City, granting the City the ability to remain distinct the neighboring Otsego. The Alternative also proposes an additional non -interstate crossing of 1-94 to accommodate a future greenway trail connection. This new bridge may incentivize some additional modest residential development along Jason Avenue. Though the development itself would likely not pay for the cost of a bridge, the connection across the interstate would be an important and valuable local connection for the City. DEVELOPMENT ESTIMATES Parcel Acres Net Use Acres Development Programming Jobs / units A 75 45 Neighborhood Single Family, Duplex i8o B 75 45 Neighborhood Single Family, Duplex i8o C 75 45 Neighborhood Warehouse, Distribution 3.8o • - Jobs o Units 540 INFRASTRUCTURE COST ESTIMATES Element Unit Interchange o Greenway Crossing $12 M County Roads o Local Roads $4.2 M Sewer, water lift station $5.1 M TOTAL $21.3 M Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 East Site 4. Cost / Benefit and Conclusions Industrial Development Feasibility Study Monticello, Minnesota June 9, 2022 Cost / Benefit and Conclusions Assumptions and Recommendations The City of Monticello's decisions for development of either area depend on an assessment of the costs and benefits of each alternative — both as an overall calculation and compared to one another. While some costs can be covered by developer fees during site buildout, larger scale improvements often need coordination and/or up -front public investment. However, the likelihood of significant benefits from development canjustify these expenditures under some circumstances. The high-level cost benefit analysis in this section is based on a number of assumptions, the chief of which are outlined below: Buildout potential vs annual absorption. Based on the recent rate of growth in the community, it is unlikely that all the land in these extensive areas will develop in the near term. However, larger scale industrial development, and/or larger residential subdivisions, could change those patterns quickly — and availability of larger areas may open up new opportunities. Internal site improvements handled through the development review process. The focus of infrastructure needs will be on larger scale capacity or access improvements outside of those handled through site plan review Internal circulation routes and utility hookups are not included in these totals. Averaged values for development types to inform estimates. The numbers used to estimate the value of development are based on averages of similar properties in the general vicinity. As the actual valuation of properties varies widely, this represents a range of development types rather than an accurate portrayal of one particular property. • Use of assessed values rather than market values. Tax capacity and taxes paid are based on assessed, not market, values. Particularly for industrial/ office properties, these two values can vary greatly for the same property. • Costs and benefits are in current dollars. Analysis uses the most current information readily available and can be understood as being in today's dollars. No inflationary factors were applied. Focus is primarily, but not exclusively, on costs borne by the City of Monticello. This does not necessarily reflect costs to other governmental agencies, such as the Monticello School District, Wright County, or MnDOT. Some infrastructure may have cost participation by these agencies (e.g., for upgrades to a county roadway), but that will be addressed at a later date. Cost & Benefits Recommendations Weighing all assumptions, including the costs and benefits on the following pages, this study recommends the City pursue growth via three approaches: i. Concentrate expanding public infrastructure, including a interchange/ bridge, to catalyze future employment centers within the Northwest growth area i. Incrementally develop contiguous residential lands, greenways, and local connections within the East growth area, as supported by the Comprehensive Plan Continue pursuing infill growth of available land within the city's existing border The following elements were assessed for each scenario, to determine the This approach will allow the City to promote higher quality development costs and benefits of each. The methodology for determining cost/benefit where it can be efficiently served with existing and future infrastructure, and elements is detailed at this end of this section, on page 39. preserve its identity as a regional center through land management on its eastern edge. Further it promotes continued incremental, sustainable growth patterns by continuing to develop out remaining city lands. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Housing Units - Tax Capacity - number of estimated potential value of units that could be development for Ln created based a full calculating taxes +' LIZZv build -out paid. au m Jobs - number of Assessed Value estimated jobs that could be created, - estimated real estate value that based a full build- could be generated, out based on a full build- out Utilities - estimated Roadway Ln cost of upgrading Improvements - u, 0 and/or constructing o o estimated cost of utilities necessary to upgrading and/ support a full build- or constructing all out roadways necessary to support a full build -out Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions East Site The following pages detail high-level benefits and costs for each East Site scenario alternative. In general, both benefits and costs are critically connected to the potential presence of a future interchange, and bridge - with a bridge, benefits and costs are much higher due to the ability to develop commercial and industrial uses within the Site, and necessary infrastructure to accommodate this growth. Without an interchange, the East Site would still provide for a high level of housing units, but nojobs would be anticipated. As such, area tax capacity without an interchange is reduced by a significant margin. The East Site scenario alternatives present varying differences from the vision provided by the 2040 Comprehensive Plan. This is due largely to the Comprehensive Plan not designating the East Site for additional study, nor guiding its western portion for near- term development. Further, the Comprehensive Plan suggesting a future interchange within the Northwest Site, ratherthan here in the East. Despite these deviations however, there are still elements of each alternative that align pieces of the Comprehensive Plan, or subsequent city studies as detailed in each scenario alternative narrative. ALTERNATIVE A Ln aJ t� $7.8 M aJ m 1440 3.558 Capacity Units Jobs Ln 0 V 0 $5.1M $82.7M Utilities Roadway Im t� $7.8 M $689.2 M Tax Assessed Capacity Value Benefits & Costs Alternative A is anticipated to generate the highest amount of benefits for all East Site scenarios. Growth in housing units, jobs, assessed value, and tax capacity are all significant, and would present a high amount of growth for Monticello. However, Alternative A also carries the highest cost of East Site scenarios. While the utility cost is approximately 22% less compared to NW Site scenarios, the inclusion of roadway improvements, particularly the interchange, present the highest infrastructure costs of all six scenarios. Comprehensive Plan Alignment Sections A & B of Alternative A align with elements of the Comp Plan that guide portions of the site for residential. However, sections C -H deviate somewhat, in that the Comp Plan envisions holding this land as development reserve. Should development become viable however, then the intent of the Comp Plan as holding for future development would align. While the Comp Plan itself does not envision an interchange and bridge at this location, a subsequent study conducted in 2oi9 did identify the alignment shown in Alternative A as one of two possible East Site locations. Locating the bridge in this section of the study area would be necessary for direct interstate access for the future industrial / employment campus, while maintaining developable land elsewhere in the study area. It would also provide access for a future employment center envisioned by Otsego. Further, Alternative A provides viable land to accommodate a future greenway trail connector from CR 39 to Pelican Lake, as envisioned by the Comp Plan. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions ALTERNATIVE B 7 ^LF EF1 t� Ll Im Benefits & Costs Alternative B is anticipated to generate the second highest benefits of the East Site scenarios, though presents a sizable drop in compared to Alternative A. This is due largely to 75% drop in estimated residential units. The potential assessed value and tax capacity of Alternative B is 61% and 55% lower respectively, compared to Alternative A. Alternative B however carries the much lower infrastructure cost compared to Alternative A. Siting the interchange and bridge to the west is estimated to result in a total costs reduction of 26%. This stems from the anticiapted development barrier created by the bridge, and overall reduction in roadways needed to support a smaller total development footprint. Comprehensive Plan Alignment Section A of Alternative B aligns with elements of the Comp Plan that guide portions of the site for residential, and the internal green space as non -development. However, section B deviates somewhat, in that the Comp Plan envisions holding this land as development reserve. Should development become viable within section B however, then the intent of the Comp Plan as holding for future development would align. 12o ii90 $5 M $373 M While the Comp Plan itself does not envision an Units Jobs Tax Assessed interchange and bridge at this location, a subsequent Utilities Capacity Value study conducted in 2o19 did identify the alignment shown in Alternative B as one of two possible East Site m locations. Locating the bridge in this section of the study 540 area would be necessary for direct interstate access for $1.8 M $i89 M the future industrial / employment campus. It would Jobs $53 M also provide access for a future employment center $5.1M Utilities Roadway envisioned by Otsego. Value Further, Alternative B provides viable land to accommodate a future greenway trail connector from CR 39 to Pelican Lake, as envisioned by the Comp Plan. ALTERNATIVE C 1 Benefits & Costs Due to its small development footprint, Alternative C presents both the lowest benefits and costs of all three East Site scenarios. While there is a higher estimated housing unit count compared to Alternative B, it isjust 37% that of units of estimated for Alternative A. Further, Alternative C carries just and just 27% of the Tax capacity of Alternative A. Conversely though, Alternative C carries 81% and 70% lower infrastructure cost than Alternatives A and B respectively. Comprehensive Plan Alignment Sections A -C of Alternative C align with elements of the Comp Plan that guide portions of the site for residential, and the remaining green space as development reserve. Alternative C also aligns with the Comp Plan in that there is not an interchange envisioned within this East Site, and therefore no non-residential development is anticipated. This is due primarily to lack of direct interstate access, and the prohibitive cost of utilities to service development in the area. Ln P0_Jc" Alternative C does provide viable land to accommodate C: E�l Utilities a future greenway trail connector from CR 39 to Pelican Lake, as envisioned by the Comp Plan. v m 540 0 $1.8 M $i89 M Units Jobs Tax Assessed Capacity Value Ln 4-1 Ln O 0 � P0_Jc" $5.1M s16.2 M Utilities Roadway Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Northwest Site The following pages detail high-level benefits and costs for each NW Site scenario alternative. Like the East Site, benefits and costs are critically connected to the potential presence of a future interchange, and bridge - with a bridge, benefits and costs are much higher. Notably though, without an interchange, the NW Site would still provide for a high level of both housing units and jobs. Likewise, infrastructure costs would be much lower without an interchange. However, the assessed value and tax capacity of the NW Site drops by about 5o%without an interchange. NW Site Scenario Alternatives build on and refine the vision provided by the 2040 Comprehensive Plan. The Comprehensive Plan guided the NW area for additional study, suggested a future interchange here, and provided a preliminary land use concept. The concept in the Comp Plan was the basis for each of the concepts shown here. ALTERNATIVE A - From Comp Plan Benefits & Costs ti.:• Alternative A is anticipated to generate a significant amount of benefits and notably would carry the highest assessed value and tax capacity benefits of all six scenarios - by a margin of io8% and 116% higher 120th St Neg issi .k respectively than the next highest scenario. It also carries 375 more estimated jobs compared to Alternative B, however 18o less housing units. f - - Not surprisingly though, Alternative A carries a very ^h _ high infrastructure cost - the second highest of NW Site scenarios. Like all interchange -based scenarios however, the majority of these costs are wrapped in a future cty Ra ss interchange. al Comprehensive Plan Alignment Alternative A is a direct representation of the Northwest StudyArea Concept from the Comprehensive Plan (Page Ln g1). Land uses, approximate section acreages, and 4-J roadway locations are all reflected in the Concept Plan. a) Sections F and G however are slight expansions upon the a residential envisioned as part of the Concept Plan. m goo 4300 $17 M X1.3 B Units Jobs Tax Assessed Additionally, both the Comp Plan and the 2019 study Capacity Value envision the possibility of an interchange and bridge located at the location shown in Alternative A. The Ln bridge location shown in Alternative A, as part of the Ln 0 o o interchange, is one of the possible bridge locations O U identified in that 2019 study. Utilities M $5d M Locating the bridge in this section of the stud area would Utilities Roadway 9 g Y be necessary for direct interstate access for Sections A -D, while maintaining developable land elsewhere in the study area. Further, Alternative A provides viable land to accommodate both of the future greenway trail connectors from CR 75 to the Bertram Chain of Lakes, as envisioned by the Comp Plan. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions ALTERNATIVE B - Interchange K Ln 4-1 a� N m 7 Benefits & Costs Alternative B is anticipated to generate the second highest benefits for all East Site scenarios. The 3975 possible jobs is slightly less than Alternative B, but is more than 250% increase compared to any East Site scenario. The tax capacity ad assessed value are is a slightly lower than Alternative A, at 16% and 15% respectively. Alternative B however carries the second most significant infrastructure costs among all scenarios, driven primarily by the very high roadway upgrades and/or new constructions, and the cost of the interchange. ALTERNATIVE C - NO INTERCHANGE Comprehensive Plan Alignment Alternative B is a slight revision of the Northwest Study Area Concept from the Comprehensive Plan (Page 91). Land uses, approximate section acreages, and roadway. locations were revised to reflect a more connective roadway network, providing direct access to a future interstate for area employment uses, routing traffic away from residents of the Township neighborhood, and creating anon -throughway roadway connection to the � Lr - neighborhood. Additionally, both the Comp Plan and the 2019 study envision the possibility of an interchange and QJ bridge located at the location shown in Alternative A. m The 2019 study builds on the interchange concept from the Comp Plan, by evaluating potential bridge locations connecting Monticello to Big Lake. The bridge location shown in Alternative A, as part of the interchange, is one Ln of the possible bridge locations identified in the study. U'i O Locating the bridge in this section of the study area would V be necessary for direct interstate access for Sections A -D, while maintaining developable land elsewhere in the study area. Further, Alternative A provides viable land to accommodate both of the future greenway trail connectors from CR 75 to the Bertram Chain of Lakes, as envisioned by the Comp Plan. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Benefits & Costs Due to its comparatively small development footprint, Alternative C presents both the lowest benefits and costs of all three NW Site Scenarios. However it does Ail still present an equal number of housing unit potential as Alternative B. Whilejobs arejust 26% of the next highest NW Scenario, the potential of over i000jobs would still be a significant benefit for the city. Conversely though, Alternative C carries a 78% and - =- 88% lower infrastructure cost than Alternatives A and B respectively. W t6 1170 3925 $14.6 M s1.1 B Units Jobs Tax Assessed Capacity Value s6.5M $67.9M Utilities Roadway Benefits & Costs Alternative B is anticipated to generate the second highest benefits for all East Site scenarios. The 3975 possible jobs is slightly less than Alternative B, but is more than 250% increase compared to any East Site scenario. The tax capacity ad assessed value are is a slightly lower than Alternative A, at 16% and 15% respectively. Alternative B however carries the second most significant infrastructure costs among all scenarios, driven primarily by the very high roadway upgrades and/or new constructions, and the cost of the interchange. ALTERNATIVE C - NO INTERCHANGE Comprehensive Plan Alignment Alternative B is a slight revision of the Northwest Study Area Concept from the Comprehensive Plan (Page 91). Land uses, approximate section acreages, and roadway. locations were revised to reflect a more connective roadway network, providing direct access to a future interstate for area employment uses, routing traffic away from residents of the Township neighborhood, and creating anon -throughway roadway connection to the � Lr - neighborhood. Additionally, both the Comp Plan and the 2019 study envision the possibility of an interchange and QJ bridge located at the location shown in Alternative A. m The 2019 study builds on the interchange concept from the Comp Plan, by evaluating potential bridge locations connecting Monticello to Big Lake. The bridge location shown in Alternative A, as part of the interchange, is one Ln of the possible bridge locations identified in the study. U'i O Locating the bridge in this section of the study area would V be necessary for direct interstate access for Sections A -D, while maintaining developable land elsewhere in the study area. Further, Alternative A provides viable land to accommodate both of the future greenway trail connectors from CR 75 to the Bertram Chain of Lakes, as envisioned by the Comp Plan. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Benefits & Costs Due to its comparatively small development footprint, Alternative C presents both the lowest benefits and costs of all three NW Site Scenarios. However it does Ail still present an equal number of housing unit potential as Alternative B. Whilejobs arejust 26% of the next highest NW Scenario, the potential of over i000jobs would still be a significant benefit for the city. Conversely though, Alternative C carries a 78% and - =- 88% lower infrastructure cost than Alternatives A and B respectively. Comprehensive Plan Alignment Sections D & G of Alternative C align with the Northwest Study Area Concept from the Comprehensive Plan (Page g1). However, the remaining sections reflect a likely land use outcome scenario without an interchange and bridge. In this case, employment uses are likely restricted for sections A and B, and would largely be residential and minimal commercial in C, E, and F. Additionally, the lack of an interchange or bridge in Alternative C deviates from both the Comp Plan and the 20xx study. Alternative C does provides viable land to accommodate both of the future greenway trail connectors from CR 75 to the Bertram Chain of Lakes, as envisioned by the Comp Plan. Cost / Benefit and Conclusions Imt6 1170 1050 $7.5 M $690 M Units Jobs Tax Assessed Capacity Value s6.5 M $12.6 M Utilities Roadway Comprehensive Plan Alignment Sections D & G of Alternative C align with the Northwest Study Area Concept from the Comprehensive Plan (Page g1). However, the remaining sections reflect a likely land use outcome scenario without an interchange and bridge. In this case, employment uses are likely restricted for sections A and B, and would largely be residential and minimal commercial in C, E, and F. Additionally, the lack of an interchange or bridge in Alternative C deviates from both the Comp Plan and the 20xx study. Alternative C does provides viable land to accommodate both of the future greenway trail connectors from CR 75 to the Bertram Chain of Lakes, as envisioned by the Comp Plan. Cost / Benefit and Conclusions Potential Benefits of New Development Tax Base New development provides significant opportunities to continue growing and diversifying the City's tax base. New construction provides a more robust tax base, and additional sources of City income. As Monticello seeks to diversify its tax base, continuing to broaden its commercial, office, and industrial uses are necessary to establish a resilient economic foundation. Ranging from si.8M - $17M, each of the six scenarios provide the opportunity for significant increases in local tax capacity. Not surprisingly, the inclusion of an interchange and bridge at either location greatly increases the feasible development footprint and subsequent tax capacity, for either site. Comparing the two areas, the NW Site presents the City with significantly higher tax capacity and economic development opportunities. Averaging the tax capacities of each site's interchange -based scenarios, there is an estimated 240% increase of the NW Site compared to the East Site. As noted previously, this is due largely to the density presented by the employment campus in the NW Site. If no interchange is located at either location, the NW Site sees an estimated 416% higher tax capacity than the East Site. Page 41 outlines scenario -specific tax capacity estimates. Jobs Jobs provide numerous benefits, including wages, auxiliary economic impacts as employees spend wages, and are a motivator for resident attraction and retention The Northwest Site, due largely to its higher total acreage of developable land, is estimated to have the potential of producing significantly more jobs than East Site scenarios - as much as a two -fold capacity increase. This magnitude of job creation however relies heavily on the introduction of an interchange at either site. If an interchange is not located in either location, only the NW Site provides the opportunity forjob creation. While much lower than with an interchange, there could still be as many as io5ojobs in an interchange -less NW site, compared to ojobs in the East Site. The possibility of up to 4300 jobs - a NW Alternative A with interchange and full buildout - would be a major increase for Monticello. Such job growth would require city attention towards providing a proportionate amount of new housing and city services. Page 41 outlines scenario-specificjob growth estimates Compatibility with City Land Use and Livability Each scenario was carefully crafted and assessed to reflect the highest level of compatibility with existing and planned city land use and transportation goals. As such, all scenarios provide community benefits through the progression of expressed community goals: Land Use • New Land Use Designations. Land use categories, thresholds, and development standards were developed using future land use categories outlined in the City's comprehensive plan. • Density Ranges for Residential. Following Comprehensive Plan guidance, residential units are assumed at a range of densities. Focus on Industrial Employment Uses. The crux of this study, each scenario envisions land uses that introduce industrial employment uses of varying intensities and types. Mobility and Connectivity Planned Roadway and Complete Streets. Each scenario outlines possible roadway networks that prioritize safe accessibility and connectivity to and through the study sites. Pathways and Connectivity. All six scenarios maintain viable land and accommodations for desired greenway trail connections. • Transit. While not explicitly detailed in this study, employment centers such as those envisioned in NW Site Scenarios & B could possible justify the expansion of transit services tho those areas. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Potential Cost of New Development Utilities New public utilities will need to be run for development to occur in either study area. New development would be contingent on these utilities being provided, particularly in the East Site where employment uses are envisioned at the opposite side of the study area from existing utilities. Expanding from existing utility locations in the NW Site, new utilities would extend north and west from existing utilities at CR 39 NE. A planned future lift station is identified in the Comprehensive Plan to be located near the bend of Cameron Ave, and would service the NW Site In the East Site, utilities would also be added from CR 39 NE, but extend south, likely following new or retrofitted roadways. The Comprehensive Plan also envisions a future lift station to service the East Site, and would be located along CR 39 Just west of the study area. In most cases, it would be prudent of the city to extend utilities when upgrading, or constructing, public roadways within each study area. Utility improvements for both sites assumed sufficient capacity so that no major treatment plant expansion is needed, and that wells would be developed on as needed to service water supply needs. On site stormwater treatment is assumed to be a development cost, as would be the cost for individual service hookups. Page 41 outlines scenario -specific utility cost estimates. Roadways New or upgraded public roadways, particularly throughout the NW Site, would almost certainly be needed to accommodate future growth. This would be particularly true within areas of employment uses (industrial or employment campus), and a future interchange and bridge. Such roadways would likely require expansion of the current 2 -lane rural roads to accommodate sizeable increases in both regional and industrial traffic. In most cases, it would be prudent of the city to combine roadway (re)construction projects with extending public utilities. As development details become better known, roadway - specific and intersection -specific analysis should be conducted to assess necessary improvements. Page 41 outlines scenario-specificjob growth estimates Interchange + River Crossing As discussed earlier in this study, a new interchange and river crossing would carry numerous benefits for Monticello, and the surrounding region. While there is a general agreeance as to the benefits, there are still numerous steps yet to be completed towards studying the warrant and viability of a new interchange. Likewise the location, alignment with existing roads, design, and cost of a river crossing introduces numerous additional complexities. The process for assessing, designing, and building these infrastructure projects is expensive and time consuming. This study assumed a cost of the interchange as $40 M, but did not estimate costs of a river crossing. As discussed in the above pages, employment uses in the East Site are essentially reliant on a future interchange. The NW Site however could carry some employment uses without an interchange, but would be restricted in how much employment growth could occur. Residential uses in both areas could still occur in both/either study area regardless of an interchange. Greenway Crossing Interstate crossings of an existing interstate generally carry a high cost due to the design complexities and infrastructure needs that often accompany crossings. This study estimated a new greenway 1-94 crossing would carry a cost of $12 M, and be most viable as crossing over the interstate as a new bridge. Because the East Site lacks a crossing with 1-94, to accommodate a new greenway within the East Site a new crossing would be needed. Alternatives A this crossing would likely benefit by being separate from a future west -aligned interchange due to the need to reroute the conceptual alignment of the greenway (as reflected in the comprehensive plan), to cross at the interchange. Alternative B would not need a separate crossing, as the interchange location aligns with the conceptual greenway locations. However, routed the greenway across an interstate interchange is generally not an ideal location as it presents increased conflict points between vehicles and bicycles. If a folded diamond interchange was selected however, the subsequent stop -controlled on/off ramps could facilitate safe bicycle passing. A greenway within Alternative C would necessitate a crossing, since there is currently no crossing to accommodate a greenway. A greenway within the NW Site could either utilize the existing crossing along 12oth St NE (Alternative C), or a future interchange Alternative A, B). No new additional crossing is envisioned for a future greenway in the NW Site. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Stormwater Management Stormwater management will be required as part of the overall, grading, street, and utility infrastructure improvements constructed internal to the development area. Stormwater management, including water quantity and water quality treatment requirements must meet City, State and Federal requirements. One such requirement is to not discharge stormwater at a higher rate of runoff than pre -development conditions. With this in mind, it is assumed that existing stormwater conveyance systems downstream of the development area should be sufficient to handle the proposed development. Thus, no costs for trunk storm sewer improvements outside of the proposed development area have been analyzed or included in this study. It should be noted that the City has a Comprehensive Water Resource Management Plan completed in 2019 which includes a baseline for some of the stormwater requirements. The plan also includes a policy of regional stormwater retention systems. When either the northwest site or east site is selected to move forward with concept development plans, regional stormwater management for the entire site should be studied and incorporated into the concept plan. Specifically, a few items of particular interest from Comprehensive Water Resource Management Plan are noted below: Water Quantity Policies: Future discharge rates from new development and redevelopment will at a minimum not exceed the existing discharge rates, or rates, which would interfere with sensitive downstream uses. Discharge rates shall be consistent with the discharge rates outlined within the City's hydraulic/ hydrologic model. b. The City prefers to provide rate control through the use of regional storm water retention systems versus site -by -site retention systems. In the event that the City will not be providing a regional system, storage of the runoff from the ioo-year, 24-hour storm event is required. d. Drainage calculations must be submitted meeting the requirements of the Design Manual to demonstrate adequate rate control, storage, and infiltration are provided as part of any development applications prior to the issuance of any building or grading permit. e. New storm sewer systems and stormwater facilities shall be designed to meet the requirements in the Design Manual. Water Quality Policies: f. New and redevelopment projects must meet the water quality requirements outlined in the Design Manual. g. The City prefers regional storm water treatment basins versus site -by -site treatment systems, where available. Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Methodology This section summarizes the approach to calculating the different benefit and cost categories. Since changing the values used can have significant impact on the results, each section also has suggestions for sensitivity analysis which could be used to test assumptions. Residential Development Housing unit estimates are based on averaged density of housing across developable portions of the property guided for residential. Residential values were based on an average sales price per unit in the Monticello area. The density number assumes a mix of single family and multifamily residential units at sewered capacity, using the comprehensive plan's Traditional Residential category as a base. Sensitivity analysis: It is possible that these residential areas may develop with larger lot sizes, averaging closer to 3 units/acre minimums for sewered development. This could significantly decrease the number of units developed. However, there is the potential to offset this somewhat by higher value per unit based on larger homes. Office/Industrial Development Industrial and office developmentjob generation is based on a conservative estimate of jobs per acre across all categories. Development intensity was based on comprehensive plan categories of Light Industrial Park and Employment Campus, although the floor area ratios (FAR) used were lowered, to be more consistent with observable market conditions. Property values were based on an averaging of per square foot assessments of around 30 office/industrial properties for sale in the northwest metropolitan area. Consistent with the data, a lower valuation used for industrial than office space. Sensitivity analysis: Office and industrial jobs, density, and values tend to vary quite widely in the market, making it challenging to find truly representative numbers. If there are stronger expectations around a particular market sector, it may be worth revisiting to ensure that they are more consistent with specific property types or sectors. Utility Costs The utility costs were based on an estimate of the cost to construct water and sewer line extensions to serve development in the area. These estimates were combined with the recently completed Comprehensive Plan Sewer and Water Study data. Estimates include the addition of a lift station in both areas, which had been identified in the Comprehensive Plan. It assumes that no major treatment plant expansion is needed, and that wells will be developed as needed to service water supply needs. Stormwater infrastructure on site is assumed to be a development cost, as are individual service hookups. Sensitivity analysis: These numbers will need to be reevaluated priorto construction. Development staging could have a significant impact on the cost, especially in a scenario where leapfrog development means a longer extension is needed to serve development as compared to a contiguous growth model. Different staging assumptions could be used to explore potential changes. Roadway Costs The roadway improvement costs are based on per linear foot estimates of improvements need to upgrade existing rural roadways, and to add primary new connections where needed. This does not include minor roadways needed for internal circulation within a development, or overall capacity increase to the highway network. The biggest cost is that of a new interchange (between 54-74% of total infrastructure costs) which would likely involve some level of cost participation by the City of Monticello. Sensitivity analysis: Actual roadway improvement needs could vary significantly depending on development staging, roadway network configuration, and access management needs. More refined development scenarios could provide an opportunity for a more specific cost estimate. Tax Capacity Tax capacities are calculated simply based on a conservative application of class rates for residential and industrial properties. Sensitivity analysis: The actual taxes paid to the city would need additional analysis, and likely much more specific assumptions about the development type. Development Costs This study assumed that additional, non-public infrastructure costs would be borne by individual private developments, and identified during the development process on a case-by-case basis. The below assumptions were used to determine the values in the cost benefit analysis. As development occurs and/or infrastrcuture staging is better known, these assumptions can be adjusted and updated as necessary. Assumptions Net to Gross Housing o.6 Net to Gross Employment 0.7 Jobs per acre Light Industrial 10 Jobs per acre Distribution 3 Jobs per acre Campus 20 Jobs per acre Commercial 10 FAR Light Industrial 0.3 FAR Distribution 0.2 FAR Campus 0.7 FAR Commercial 0.3 Units per acre Housing 6 (NW) 4 (East) Assessed value per new Housing Unit $350,000 Assessed value per SF new Light Industrial $go Assessed value per SF new Campus $iso Assessed value per SF new Commercial $150 Industrial Development Feasibility Study I Monticello, Minnesota I June 9, 2022 Cost / Benefit and Conclusions Site & Scenario Comparison BENEFITS Comparisons are provided here in both ALT C ALT A 1440 graph and table format 540 Housing Units 990 1170 QALT B 360 Units 3925 Lu ALT C* 540 Units HOUSINGLFU $690 M Tax Capacity $17 M $14.6 M $7.5 M ALT A 990 Units s6.5 M zALT B* 1170 Units $67.9 M $12.6 M ALT C 1170 Units ALT A miiM 1558 Jobs QALT B 1365 Jobs ILL! ALT C* oJobs JOBS ALT A ALT B* ALT C 1o5o Jobs [-- ALT A QALT B $373 M ASSESSED w ALT C* $189 M VALUE ALT A ql1I1I1I=� ALT B* ALT C $690 M I--- ALT A Q ALT B TAX w ALT C* CAPACITY ALT A ALT B* ALT C 1440 Units COSTS �-- ALTA $5.1 M QALT B $5.1 M UTILITIES D w ALT C* $5.1M 0 ALT A s6.5 M ALT B* s6.5 M ALT s6.5M ALT A $82.7 M Q ALT B $53 M 4300 Jobs uJ ALT C* $16.2 M 3925 Jobs ROADWAYS ALT A s56 M ALT B* $69.7 M ALT $12M 6689 M $1.3 B $1.1 B $7.8 M $5 M s1.8 M $7.5 M $17 M $14.6 M *indicates recommended area scenario ALT A ALT B* ALT C Mw 1440 36o 540 Housing Units 990 1170 1170 Jobs 4300 3925 1050 Assessed Value $1.3 B $1.1 B $690 M Tax Capacity $17 M $14.6 M $7.5 M Utilities s6.5 M s6.5 M s6.5 M Roadway $56 M $67.9 M $12.6 M *indicates recommended area scenario Industrial Development Feasibility Study I Monticello, Minnesota June 9, 2022 Cost / Benefit and Conclusions ALT A ALT B ALT C* Housing Units 1440 36o 540 Jobs 1558 3.365 0 Assessed Value $689 M $373M $189 M Tax Capacity $7.8 M $5.0 M $1.8 M Utilities $5.1 M $5.1 M $5.1 M Roadway $82.7 M $53 M $16.2 M Industrial Development Feasibility Study I Monticello, Minnesota June 9, 2022 Cost / Benefit and Conclusions