IEDC Minutes - 02/07/2023MINUTES
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, February 07, 2023
7:00 a.m. at Monticello Community Center
Members Present: Chairperson Sarah Kortmansky, Vice Chairperson Luke Dahlheimer, Tracy Hinz, Joni
Pawelk, Kevin Steffensmeier, Andrew Tapper, Eric Olson, Ryan Schmitz
Members Absent: Liz Calpas, Dareck Vetsch, Steve Johnson, Wayne Elam, Randy Skarphol, Kathleen
Massmann
Liaisons Present: Jim Thares, Rachel Leonard, Jennifer Schreiber
1. Call to Order
Sarah Kortmansky called the regular meeting of the Monticello IEDC to order at 7:05 a.m. In
attendance for the meeting were two guests of the IEDC, Rob Stark and Tony Velishek.
2. Approve Minutes:
a. January 03, 2023, meeting minutes
ANDREW TAPPER MOVED TO APPROVED THE JANUARY 3, 2023, REGULAR MEETING
MINUTES. JONI PAWELK SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 8-0.
Consideration of Adding Items to the Agenda
The group present did introductions as a courtesy to the two guest attendees
3. Open Meeting Laws Review
City Clerk Jennifer Schreiber presented information about the open meetings law statute and the
remote format that has been used duringthe pandemic. The State Secretary of State, the
oversight authority is recommending that local units of government revert to the standard open
meeting statute standards of in person meetings. If there is a need for any committee member to
attend remotely, their specific location will need to be published along with the agenda materials.
4. Table Topic — LOST (Local Option Sales Tax) Initiative Overview — Rachel Leonard, City
Administrator
City Administrator Rachel Leonard provided an in-depth overview of the Local Option Sales Tax
(LOST) initiative by the City. The City Council authorized submission of a request for legislative
approval of a one-half cent (.05) sales tax on the regular sales tax items at its January 23, 2023
meeting. If the proposed legislation is approved and signed into law, it would go before the
voters as a choice question in the year 2024 as part of the general election cycle. The City is
proposing to capture approximately $30 million in sales taxes over the next 20 years for two
large regionally significant capital improvement projects, Pointes At Cedar and the Bertram
Chain of Lakes. Each project, if approved by the voters, would be slated to receive $15 million.
General information from the Department of Revenue indicates that the typical Monticello
resident household of four would pay about $100 +/- in sales tax per year. The expectation is
that about 50 percent of the sales tax would be derived from non-residents who travel to the
City from other communities and other states.
Tony Velishek asked if the added sales tax would only affect the retail portion of Monticello
businesses.
Andrew Tapper noted that the proposed added sales tax would put Monticello's sales tax at
7.8%, which is where Elk River is currently is at. Mr. Tapper asked if any other surrounding cities
are pursuing a local option sales tax. Rachel noted that several other cities already have the
local sales tax. These include the St. Cloud area cities of Sartell, Sauk Rapids, Waite Park, and St.
Cloud. Clearwater has a sales tax as does Rogers.
Joni Pawelk asked about the success rates of cities when it comes to passing referendums. It
was explained that the success is usually tied to providing good information about the proposed
uses of the proceeds and the positive involvement of various community groups who are natural
supporters of these specific improvements such as the soccer clubs. The City itself can not
campaign for passage of the tax referendum.
Eric asked about the City's plan for growth and how that plan will complement the local option
sales tax. The proceeds will be used for further progress in completing the Bertram Chain of
Lakes athletic fields and other components of the regional park. As for the Pointes At Cedar, the
funds would be used to also pursue the capital improvements such as the pavilion and the trail
and park feature components of the total 105 acre development area.
5. Reports:
• Economic Development
o Prospects List
Mr. Thares highlighted the prospect list. Project Love was the last inquiry which was
in 2022; however, there have been several new inquiries that were not added to the
list as they are very tentative in form.
o Building Permit Update — 4th Qtr. 2022
4t" quarter construction of new single homes dropped 60% from 2021. The
average build was $315,000 plus the land.
Multi -family 4t" quarter of 2022 was 91 units for Block 52 which falls under
commercial category; the permit was pulled late in the year.
County Club Manor Twin home portion has started and the multi -family is
scheduled to begin in early summer. All units are modular and built in Albertville.
Twin Pines multi -family 96 unit multi -family homes begin construction in March.
This brings the total of 285 units under construction this year.
o Planning Commission
Hayden Stensgard, Community and Economic Development Coordinator,
reviewed the Planning Commission Agenda highlighting the Zoning Ordinance
amendment for vehicle fuel sales, allowing for Electric Vehicle Charging stations,
and a Special City Council/Planning Commission meeting to go over land use
basics.
• City Council
Rachel Leonard, City Administrator, highlighted the 1-94 coalition support of the
Albertville to Monticello build, approval of dues and support for the CMRP, and the
School Pedestrian Project.
• Wright County Economic Development Partnership (WCEDP)
o No update.
• Chamber of Commerce
o No update.
6. Member Resignation
a. Mr. Thares presented the resignation of Steve Johnson and extended our appreciation
for his dedication and supporting the community through the IEDC membership.
7. Next Meeting Reminder — Date: March 7, 2023
8. Adjournment (8:06 a.m.)
SARAH KORTMANKSY MOVED TO PROACTIVELY SUPPORT ROB STARK AND TONY VELISHEK'S
APPOINTMENTS TO THE IEDC, PROVIDED THEY COMPLETE AND SUBMIT THE NECESSARY
APPLICATION. JONI PAWELK SECOND THE MOTION. MOTION CARRIED UNANIMOUSLY, 8-0.
KEVIN STEFFENSMEIER MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO
IEDC. RYAN SCHMITZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 8-0.
Recorder: Vicki Leerhoff
Approved: March 7, 2023
Attest:
ares, Economic Development Manager