EDA Minutes - 10/25/2023MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, October 25, 2023 — 7:00 a.m.
Bridge Room, Monticello Community Center
Commissioners Present: Vice President Jon Morphew, Treasurer Hali Sittig, 011ie
Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor
Lloyd Hilgart
Members Absent: President Steve Johnson
Staff Present: Jim Thares, Rachel Leonard, Angela Schumann, Ron
Hackenmueller, Hayden Stensgard
1. General Business
A. Call to Order
Vice President Jon Morphew called the regular meeting of the Monticello EDA to
order at 7:01 a.m.
B. Roll Call 7:00 a.m.
Mr. Morphew called the roll.
2. Consideration of Additional Agenda Items
None
3. Public Hearing
None
4. Regular Agenda
A. Consideration of Accepting the 2023 Housing Market Study prepared by MSA
Professional Services
Jim Thares, Economic Development Manager, provided an overview of the agenda
item. Angela Schumann, Community Development Director then introduced Jason
Valerius of MSA-PS.
Mr. Valerius provided an overview of the 2023 Housing Study highlighting several
points.
Within the City of Monticello, owner units that are planned or constructed have
reached 288 since 2020. These are primarily on the outer edges of the city limits.
Rental units planned or constructed totals 595.
Since 2020, the growth of household units is on track with the 2040 Comprehensive
Plan projections and is expected to continue increasing with a correlated unit
demand for a variety of households. The latest census figures show that Wright
County is exceeding the number of household units versus the number of housing
units added. This is problematic as it indicates a decrease in vacancies and an
increase in competition for housing units.
Mr. Valerius noted that 12% of rental households within the city are 1-unit
detached, while 28% are 1-unit attached. Most rental costs are over $1000 per
month. The demand for rental units equal to or under $500 is in short supply. These
tend to be occupied by tenants earning about $20,000 +J- per year.
Over 52% of rental units in Monticello are 1-bedroom units, leaving 48% as larger
units. Over the past 5 years, there is a greater demand for 3-bedroom units.
Mr. Valerius continued to review the report highlighting the Monticello ownership
market.
The Monticello affordability limit for median household is $290,000. The cost of
ownership of single-family homes has been influenced by increased interest, rising
cost of materials, and an increase in property taxes. This increase is higher in
Monticello than in peer communities and the affordability of starter homes is just
beyond the threshold of the median income.
The trend for aging populations is that they prefer to stay in owner -occupied units as
long as they can, eventually moving into senior living for easier upkeep.
The building trend is for the majority of single-family homes that range from
$250,000 to $300,000, followed by $300,000-$350,00. An increase in multi -unit
construction gives options to households which further encourages growth.
Monticello's Development fees are on the higher end compared to peer cities. The
fees cannot be compared apples to apples as each community has different charges
rolled into its development fees.
Discussion was held to consider the target entry of new construction and the need
for executive housing. Mayor Hilgart challenged the rate Monticello is growing,
suspecting that it might be a bit faster. Mr. Valerius confirmed the trends support
the data presented.
Ms. Schumann stated that this report is research and to be used as a tool for the
EDA to write policy. Ms. Schumann asked members to consider their housing
priorities in each of the areas provided in the report. Staff are hoping to schedule a
future joint meeting with the City Council again to dive into the Housing Study
findings, allow an opportunity for sharing of EDA members' thoughts regarding
priority housing work objectives, and exploring potential policy in early 2024.
B. Consideration of Authorizing a Phase I Environmental Site Assessment (ESA) for
Outlot A, Great River Second Addition, 14.16 acres along 7t" Street West by WSB &
Associates in the amount of $4,800
Mr. Thares provided an overview of the agenda item. In consideration of the
acquisition of a vacant 14.16-acre commercial parcel of land along 7t" Street West
from Riverwood Bank, staff are asking the EDA to authorize a Phase I ESA to get an
understanding of the environmental status of the site. The cost of such a report
from WSB is $4,800.
LLOYD HILGART MOVED TO APPROVED AUTHORIZING A PHASE I ENVIRONMENTAL
SITE ASSESSMENT (ESA) FOR OUTLOT A, GREAT RIVER SECOND ADDITION, 14.16
ACRES ALONG 7T" STREET WEST BY WSB & ASSOCIATES IN THE AMOUNT OF $4,800.
HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
5. Other Business
A. Consideration of Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item.
No action was taken on the item.
6. Adjournment
HALI SITTIG MOVED TO ADJOURN THE OCTOBER 25, 2023, REGULAR MEETING OF THE
MONTICELLO EDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY. MEETING ADJOURNED AT 8:17 A.M.
Recorded By: Hayden Stensgarcl
//�(-41
Date Approved: April 10, 2024
ATTEST:
Jim Thares, Executive Director