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IDC Agenda 08-07-2007• IDC Agenda - 08/07/07 7. Economic Development Director's Report. A. TIF Pay-As-You-Go semi-annual payments to developers were calculated and will be mailed as per the Contract date of August 1 and February 1 of each year. B. Two Economic TIF Districts (No. 1-23 [Allied Properties] and 1-25 [Blue Chip]) were decertified prior to the maximum life duration of the district (early decertification) by the HRA in December 2006 since the debt service was paid-off and the qualified administrative costs were quantified. A request to the Finance Department for issuance of checks to reimburse the County Auditor in the amount of the excess tax increment ($78,602 and $14,682, respectively) of each district was made and have been mailed to the County along with the Confirmation of Decertified TIF District form. Once confirmed by the County, these forms will be submitted to the State Auditor. C. On August 8, the EDA will consider a loan application from Washburn Computer Group associated with the planned 30,000 sq ft. expansion to their building along Chelsea Road. They were willing to use the payback funds from TCDC (Federal dollars). However and given the application was submitted after they purchased and moved to Monticello, only the jobs created by the expansion can be counted. The benefit of the lower interest rate for the size of the loan doesn't appear to make economical sense to utilize Federal funds due to the added costs to the business associated with meeting the requirements of the Davis Bacon Act. Washburn decided against using Federal dollars, as an alternate, the regular GMEF will be applied. A welcome tour was conducted of the Washburn facility in late June with few in attendance. D. The balloon payment from the MIF-Federal grant/loan to Twin City Die Castings (TCDC) was paid-off by TCDC in June 2007. The balance of those funds available for use by the EDA is approximately $595,000 and the repayment funds are subject to HUD regulations/guidelines upon the first reuse only. E. The 2006 Tax Increment Financing District Reports were prepared this year by Paul Mastey, Senior Accountant, with the assistance of the HRA Executive Director. The Ehlers' Quick TIF program was not used this year as the Office of the State Auditor now requests the use of state forms. The reports are due August 1, 2007, to the Office of the State Auditor. The Interchange and Dahlheimer Districts will be adjusted in the 2007 reports pending the documentation of eligible expenditures associated with the $8.5 million Pledge Agreement between the City and HRA and documentation of the infrastructure improvement costs associated with Otter Creek Crossings, respectively. F. In review of the 2007 TIF Parcel Modeler provided by the County, the HRA Executive Director noted the parcels included in the Interchange TIF District were certified incorrectly. A letter has been • . IDC Agenda - 08/07/07 prepared and mailed to the County Auditor requesting reduction in the number of parcels within this district for payable 2008. G. The HRA closed on the Cedar Street Garden Center the end of June and the tax exempt form was delivered to the Assessor's Office. However and since the property will be occupied through the end of 2007, the tax exemption will not be effective July 1, 2007. In other words, the HRA will pay taxes in 2008. H. Ehlers & Associates were authorized to certify TIF District No. 1-38 for Walker In-Store after execution of the Purchase and Redevelopment Contract and receipt of the $10,000 earnest money. Per the Contract, the closing and conveyance documents have been prepared and executed by the HRA Vice Chair and Executive Director and occurred on July 31, 2007. The Assessment Agreement was reviewed and executed by the County Assessor. The commitment letter from the lender for construction and permanent financing and TIF "but for" documentation was submitted. Building permit application and plans were submitted to the Community Development Department on July 13. Per the contract, they must begin construction of the minimum improvements within 30 days of closing. I. These are the business retention and expansion visits I made within the last month: Twin City Die • Castings: Congratulations to TCDC. In the past year, they received four international awards in designs of zinc and magnesium. Other visits were UMC, Suburban Manufacturing, and Washburn Computer Group. J. The four appointed individuals on the HRA/EDA merger task force are scheduled to meet at 5:00 p.m. prior the HRA meeting of August 1. K. Fiber Optics - At the Council meeting of July 23, the council members unanimously approved to proceed with a referendum ballot to construct, purchase or proceed to acquire a telephone exchange. The referendum must be approved by 65% of those who cast a ballot at the special election on Tuesday, September 18, at the Community Center gymnasium, 7:00 a.m. to 8:00 p.m. L. The Marketing Group met with Rusty Fifield, Comp Plan Update consultant; Jeff O'Neill; and Angela Schumann on July 23. The group presented their prepared bio-science/high tech vision/plan and discussed how their vision/plan fits into the Comp Plan. Mr. Fifield presented his input, recommendations, and in-conclusion; he will draft a specific chapter on Economic Development. With the re-zone of the 60+ acres of I-lA property to B-4 along East Chelsea Road, about 50 acres of I- lAland is currently available in Monticello. (See Exhibit A.) Paul Kleinwachter, Jeff O'Neill, and myself met with the Economic Development Director of Eden Prairie. Interestingly, four farmers several years ago had a vision for Eden Prairie which resulted in their • 2 • IDC Agenda - 08/07/07 Comp Plan. The Comp Plan has only been "tweaked a little" over the years. Eden Prairie does not prepare brochures, etc. for marketing land or promoting the city, the city does not offer incentives, and views "aesthetics" as a long term investment. With its location within the metro and quality of life (image, parks, and schools), the community sells itself and has attracted high tech and bio science industries. They have a "Meet & Greet" program in which the Mayor, City Manager, and Economic Development Director meet with businesses. They have visited 180 businesses and he stated "businesses do not like surprises." With the idea to explore the potential of an educational training facility or campus in Monticello, I've talked with the following individuals who have agreed and are interested in exploring this avenue: Jim Johnson, Supt. of Schools; Amy Koch, Local Senator, Barry Kirchoff, MN Small Business Development Center. My plan is to visit the Anoka-Ramsey Community College in Coon Rapids and its Cambridge campus working with our contacts at Anoka-Ramsey who have expressed an interest in Monticello. Mr. Kirchoff is also interested in establishing a Business Development Center office in Monticello. I'm hoping the Mayor, O'Neill, a marketing group member, and industrial leader will join us. This is exploratory to see of interest and what steps need to be taken. M. The Marketing Committee extended its commencement date on the I-94 billboard to October 1 and it will run for a couple months and then, commencing in February 2008 it'll run for another couple months. The committee is looking to redesign the billboard and is waiting for the outcome of the referendum scheduled for September 18. N. Minnesota Competes - I attended a seminar in St. Cloud on July 25. Here is my brief summary of the round table discussion of approximately 160 people in attendance. How to compete with the China/India and how to stay competitive in a world of fast changes in technology? 1. Listen and be flexible. 2. Encourage local government to build on individual strengths or uniqueness. 3. State provide funds with limited (no) rules. (See Exhibit B.) O. I've been invited for lunch with 30 members of the Cargill family (spanning three generations) and asked to speak on Sunny Fresh's history as a corporate citizen in Monticello. I'm most honored to accept. P. Minnesota Investment Fund (MIF) state dollars -For your information, the wage levels for this program are for each $10 per hour w/o benefits job, $8,000 and for each $12 per hour w/o benefit job, $12,000. However, the sponsor city now retains 20% of the principal and interest payback where previously it was the first $100,000 plus interest. • V\ Monticello Comprehensive Plan Update 2007 BIO-SCIENCE/HIGH TECH VISION FOR MONTICELLO Monticello is a center of employment, containing a wide range of employment opportunities with a growing emphasis on jobs at higher wage levels that allow more people to live and work in Monticello. GOALS FOR INDUSTRIAL LAND USE AND DEVELOPMENT • Expanding and diversifying the property tax base. • Providing jobs with an increasing opportunity for people to work and live in Monticello. • Promoting wage levels that provide incomes needed to purchase decent housing, support local businesses and support local government services. • Take advantage of opportunities to attract corporate headquarter/campuses and businesses that specialize in biosciences and technology. • Encouraging the retention and expansion of existing businesses in Monticello. The City of Monticello is committed to being a leader in the Bio-Science/High Tech • Industries including investment and the development of a Bio Science Business Campus ASSETS (Existing and In-Progress) • School District, Hospital District, I-941ocation, and well-maintained parks and trails. • Fiber optics network and skilled. labor force (develop training center.) • Community environment and quality of life. • Existing Monticello businesses with medical device and information technology expertise. • A community commitment including local financial resources. • Proximity to high-education universities and technical schools as a resource. • SCSU students/facility and Small Business Development Center for additional resources. ACTION STEPS LEADERSHIP • Prepare scope of work for an advisor including a budget and time frame. * Utilize the expertise ofAnoka-Ramsey Community College to develop scope of work. * The advisor must have a working knowledge and contacts within the bio-science/high tech industries, Bio-Science Medical Alley and related corporate leaders. * The advisor must have the skills to network with the political environment and the expertise to gain Bio-Science Zone (tax-free zone) designation and to seek venture capital investors. Identify source of funding for hiring an advisor. • • INVESTMENT AND DEVELOPMENT • Identify sites for development of a bio-science/high tech business campus within the Comprehensive Plan Update. • Explore benefits and apply for a Bio-Science Development Public Infrastructure Grant. • Explore the option of a private developer to develop abio-science/high tech campus with an emphasis on landscaping, green space, and pathway/trail connections. • Research the potential for development of incubator space for lease. • Identify incentives and investments to attract bio-science/high tech businesses. EDUCATION AND TRAINING • Explore development of a training campus partnering with Anoka-Ramsey Community College, SCSU, School District, and others. • Tour the Anoka-Ramsey Community College -Cambridge Training Campus. • Identify local legislators to assist in special legislative funding. • Identify a site for potential campus. MARKETING • Identify which sectors of the bio-sciences to target. * Utilize the expertise of Minnesota Technology, a state agency, and Monticello Work Force Center. • Identify which bio-science/high tech businesses or suppliers to target. • * Utilize the expertise of Minnesota Technology, a state agency. • Develop a community plan seeking assistance to begin development of a city-wide "branding" and image. • Complanaction.2007 2 • N • N 0 0 t/? .,... _.. ti o m h` ` ~~ ~;, ~~ do ~\ a ~ \ i`\j ~-o n °~ o ;~~ P O /V' ~ _ 0^ 3 r ~ n Q ~ t /f 0 rn rn v C7 cD ~~ ~D t/~ O m n 0 0 n' O c~ ~' C O n o ' N o ~ cn . A ~F a. S 0 ~ ~ ~ 0 ~ ~ -, ~ ~ a , ° ~ ~ . o ~ 0 ~ ~ . ~~ ~~ e ~J C~" I v~ G~ ~ ~ O V V L W !Q'-~J O-~ i ~ t~ y 1 ~ a ~ m cn cn ~ O W W ~_ ~ ~ ~ ~VV~F-y0~~ W W ~ i .~ ~ ~ ti r ~ o ~ Q O ^ ~ ~~ ~ ~ ~ ~ ~ ~ ,, W ^ ~ V O ^^.. Y ~ L O O ~ ~,, c~ V ~ ~, Q t~ V ~ ~' ~ ~ i 0.• NQ U~ L~j 0 z .,,r ~ , .,. . . .. , .. ~. _ 1 , ~. ~_ 3r - ~ ~ ~ N ~ ~ ~ L-3 VQ: ~~ ;- ~ «,' OT. ~ ~ ~ ~ ~. 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V C C p J~ N~ ~~ Q z __cv m ~~'a v ~ ~ C .a ~ ~., `~ c d o ~ ~ ~ =~~o ® ~~ovf 0 Q C ~ = C ~ ~ '.r .~ ~ ~ C C m ~ ~ ~ ~ 'C V = Q~v~ ~~~E-.~~a~Qw~Q¢d o ~ y 0 m r~ ~_ ~^ 0 :~ ~~^ d o ~ eo m~ c~ s' `~1 ~ O R ~ ~. ~. ~~ ~~ -~ ~~ ~~ ~~ ~~ ~~ ~ ~ ~~'_.Mr, EKI~;I~~fi C • PUBLIC HEARING -CONSIDERATION OF A REQUEST FOR AMENDMENT OF • PLANNED UNIT DEVELOPMENT FOR EXPANSION OF OPEN AND OUTDOOR STORAGE. APPLICANT: SUNNY FRESH FOODS IDC RECOMMENDATION OF JUNE 5, 2007 At the IDC meeting of June 5, 2007, the members discussed the Planning Commission agenda item relating to the request by the applicant, Sunny Fresh Foods, Inc. Don Roberts, Sunny Fresh Foods, informed the members that Sunny Fresh had followed the application and review process with city staff and the Design Advisory Team, stating the good news was asign-off and recommendation for approval by staff. The IDC concurred with the staff recommendation and unanimously passed a motion recommending the Planning Commission approve the replacement and/or addition of eight silos for Sunny Fresh Foods, Inc. located within the CCD, Central Community District. • •