EDA Agenda 06-02-2016 (Workshop Meeting)AGENDA
WORKSHOP- ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Thursday, June 2nd, 2016 — 4:00 p.m.
Academy Room, Monticello Community Center
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Steve
Johnson, Tracy Hinz, James Davidson, and Council members Tom Perrault and Lloyd Hilgart
Staff. Jeff O'Neill, Angela Schumann, EDA Executive Director Jim Thares, Wayne Oberg
1. Call to Order
2. Roll Call
3. Introduction and Purpose of Meeting
4. Brand Identity Development— Economic Development
5. Industrial Development — Target Marketing Focus
6. Downtown Discussion
a. Current plan and zoning review
b. EDA property uses
7. Housing - Determine Focus for Future Program Development
8. Adj ourn
ECONOMIC DEVELOPMENT AUTHORITY
2016 ANNUAL ECONOMIC DEVELOPMENT WORK PLAN
EDA Purpose:
The EDA is charged with coordinating and administering the City of Monticello's economic
development and redevelopment plans and programs. The EDA is also responsible for housing
and housing redevelopment.
EDA Work Plan Mission Statement:
The EDA's work plan is adopted in support of achieving the goals of the Monticello
Comprehensive Playa The EDA will be proactive by developing and undertaking actions for
achievement of the Comprehensive Plan's Economic Development goals and will be reactive in
responding to economic development opportunities as they arise in the most timely and effective
manner possible. The EDA shall utilize the economic development strategies of the
Comprehensive Plan as a guide for action.
Comprehensive Plan Goals:
Attracting & Retaining Jobs
Expanding Tax Base
Enhancing Downtown
Facilitating Redevelopment
Housing Choice for Life -Cycle
EDA Objectives:
I N 12 V 4; T P-4 A-, L,
+4-V tl;;:; l Plel-
1. Continue to support redevelopment efforts for publicly -owned properties on Block
34.
a. Focus on site control for targeted redevelopment area on the block
b. Evaluate the opportunities for the future sale of properties on Block 34 and the
value of engaging a partner to expedite redevelopment on Block 34.
c. Support as needed the completion of intersection improvements at TH 25 /CSAH
75 in order to understand development envelope and access.
2. Engage as a partner in other redevelopment and revitalization opportunities as they
arise, actively encouraging redevelopment within the TH25 /CSAH 75 area.
a. Build funding base for other acquisitions in targeted redevelopment areas.
b. Fund studies similar to the hospitality study for other desired land uses in the
downtown and for other programs, such as housing.
c. Continue discussion on use of tax reimbursement/abatement, including
development of criteria.
d. Implement a facade improvement program for desired revitalization areas.
e. Meet with property owners downtown individually to understand their situation in
terms of willingness to sell, partner, price, etc.
f. Reexamine the Embracing Downtown Plan for possible amendment based on
recent revitalization activity in the downtown.
g. Develop a conceptual street layout for access and parking for the entire CCD
including parks and trails.
h. Support opportunities for park and trail development with TH 25 /CSAH 75
intersection and as consistent with the Embracing Downtown Plan.
3. Market industrial development at the Monticello Business Center (Otter Creek
Business Park) to a broad variety of prospects.
a. As guided by the Comprehensive Plan, target the following prospect areas:
i. Businesses which will be a supplier, customer or collaborative partner to
existing businesses within the community.
ii. Businesses which would benefit from Monticello's utility and
communications infrastructure.
iii. Work with the CentraCare Health System to ensure the retention and to
promote the expansion of health care services in Monticello.
b. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets.
c. Actively participate /network with current businesses to help establish external
relationships.
4. Market EDA incentive programs in a more proactive manner, both within the
community and beyond, beginning with the education on these resources at the EDA
level.
a. Continue to foster external networking opportunities.
b. Present existing and new incentive programs to smaller community groups, local
banks, realtors, and local businesses.
c. Develop and communicate a "complete" development package program which
provides support and assistance to prospects and developers from inquiry to
construction.
d. Prepare a multi - format (print, digital) summary resource piece.
e. Explore the opportunity to develop an incubator building or pre- designed building
shell plans with contractors ready for development.
5. Actively (aggressively) market for sale for development the EDA -owned properties
at Cedar Street, 349 West Broadway and 413 W. 4th Street.
a. Market 4th St. to known Monticello residential builders.
b. Identify types of businesses sought for specific properties and market to these
sectors accordingly.
c. Identify commercial properties which should be held for larger redevelopment
potential.
6. Encourage more proactive lead development and response in all market segments to
support a diversified tax base.
a. Develop relationships with local realtors and banks.
b. Explore agent /broker relationships; evaluate the opportunity to engage a
development facilitator.
c. Develop a list of target properties and share with realtors and bankers.
d. Foster an accommodating approach to prospective development (see item 4d
above).
e. Research and communicate state and federal incentive programs for bringing
businesses into community.
7. Examine housing stock for aging or blighted properties and research development
of programs for redevelopment and /or revitalization.
a. Understand the state of the current housing stock/inventory and areas of need.
b. Develop sub - committee to identify potential programs, such as:
i. Program for acquisition for redevelopment
ii. Program for revitalization
iii. Program to encourage new development in in -fill areas
c. Establish clear criteria for "blight" and "cluster areas" for focus of programs.
d. Identify and communicate state and regional programs which could be leveraged
to support identified properties; identify programs applicable to each property.
8. Support the development of the Destination for Innovation brand and implement in
economic development activities.
a. Migrate website to City site for more thorough and current site maintenance.
b. Work with Communications Manager to develop coordinated economic
development marketing plan
c. Build value in development resources.
d. Market amenities (including technology and recreation) in a more coordinated
way
9. Consider housing increment resource in terms of strategic project goals.
a. Tie in with item #7 above as a multi -prong approach — examine opportunities and
needs for use of these funds.
10. Re- engage in business retention and expansion efforts.
a. Engage the IEDC as the primary partner and lead in this effort.
Appendix: Monticello Comprehensive Plan, 2008 — Economic Development
Economic Develop Pt
Ideally, the Comprehensive Plan does not have an Economic Development
chapter. The Land Use Plan would be sufficient to channel market forces
to meet the development objectives of the community. In reality, certain
development needs cannot be met without public intervention. The
Economic Development chapter of the Plan focuses on the aspects of
Monticello's future that require particular attention and action by the City.
These actions include:
► Attracting and retaining jobs
► Expanding the tax base
► Enhancing the economic vitality of Downtown
► Facilitating redevelopment
Attracting and Retaining Jobs
The creation and retention of jobs is one of the most important objectives
for Monticello. Jobs, particularly jobs with income levels capable of
supporting a family, are key to achieving many elements of Monticello's
vision for the future.
► Jobs attract residents to the community. Jobs will pay a critical role in
creating the type of "move up" housing sought by the City.
► Jobs provide the income needed to support local business and
government services.
► Retention of businesses promote community stability by keeping jobs
and residents in Monticello.
The Community Context chapter of the Comprehensive Plan contains a
section on Employment. This section contains data about employment in
Monticello and of its residents. Among the key findings in this section are:
► While the community added nearly 5,000 people between 2000 and
2010 according to the U.S. Census, it only added 1,430 jobs according
to the Quarterly Census of Employment and Wages (QCEW). In 2010,
the community had 6,992 jobs according to the QCEW but 7,093
people in the labor force according to the Census.
bawrrraw N
2008 Comprehensive Plan — Updated 2013 Economic Development 1 4 -1
► The U.S. Census Bureau, Center for Economic
Studies' OntheMap website shows that in 2010
4,597 people leave the community each day to
work, while 3,849 people come into the community
to work. Only 835 both live and work in the
community.
► Approximately 15% of residents in 2010 are
employed within the community. This has dropped
from 18% in 2002.
► As shown in Figure 4.1, 2012 data from the
Minnesota Department of Employment and
Economic Development (DEED) on their
mnprospector.com website shows that Monticello
is made up of a wide range of small to medium
sized employers. Only 10 employers have more
than 100 employees. Over half have fewer than
four (4) employees.
► Workers for Monticello businesses come primarily
from Monticello and the surrounding region.
Nearly 75% of people working in Monticello live in
Monticello, adjacent townships, or other places in
Wright and Sherburne counties (2010 OntheMap).
► Nearly 40% of Monticello residents work in
Hennepin County, with the largest percentage in
Minneapolis, Plymouth, and Maple Grove. Another
15% work elsewhere in Wright County, including
Buffalo and St. Michael.
► The 2007 -2011 American Community Survey
(ACS) Census reported a mean travel time to work
of 28.5 minutes. This is up from the 2000 Census
travel time of 24 minutes. The mean travel time in
the 2007 -2011 ACS was 29.7 minutes for Wright
County and 24.5 minutes for the region overall.
Figure 4-1:2012 Total Establishments by Size
Number of
Establishments by Size
7-4 Em to ees
Number
254
Percent
52.05
5 -9 Employees
97
19.88
10 -19 Employees
64
13.11
20-49 Employees
42
8.61
50 -99 Employees
21
4.30
100 -249 Employees
7
1.43
250 -499 Em to ees
1 2 1
0.41
500 -999 Employees
1 1 1
0.20
Background Reports
The City of Monticello conducts studies and assessments
as needed to help guide its economic development
efforts. The findings and recommendations of these
studies are summarized below with the most recent
provided first.
2010 Business Retention and Expansion Research (BR &E)
Report
Monticello's Business Retention and Expansion (BR &E)
program was initiated by the City of Monticello, the
Monticello Chamber of Commerce and Industry,
DEED, and the University of Minnesota Extension. It
was also sponsored by over a dozen local businesses.
Through the BR &E program, 60 businesses were
visited. Findings from the visits and data analysis found:
► 78% of the visited businesses were locally owned
and operated.
► 20% of businesses were in manufacturing, 18% in
retail trade, and 13% in other services.
► The businesses employed over 1,600 full -time and
975 part -time employees, with a trimmed average
(an average where the low and high were discarded
to prevent skewing) of 15.38 full -time employees,
slightly down from 15.52 three years ago. The
firms also had a trimmed average of 7.76 part -time
employees, up from 6.96 three years ago.
► Most full -time employees are in manufacturing,
food and beverage, retail trade, and medical, while
part -time employees are in medical, retail trade,
and tourism /recreational services.
► Survey results indicated that the medical industry
is the highest employer in Monticello, followed by
retail trade and manufacturing.
► Businesses in the community are fairly stable with
about half expecting some type of change.
The BR &E identified four strategies aimed at helping
businesses become more profitable. Each strategy
was accompanied by a list of potential projects
intended to be ideas for the community to explore.
The implementation of the projects is intended to be
a collaborative effort among the various sectors of the
community. The four strategies identified included:
4 -2 1 Economic Development City of Monticello
► Improve Business Retention and Expansion
Through Technical and Development Assistance.
► Improve Labor Force Availability and Productivity.
► Improve Infrastructure to Help Move Goods,
Customers, and the Labor Force More Efficiently.
► Improve and Promote the Quality of Life in
Monticello.
During the 2013 comprehensive plan economic
development update process, it was noted that the 2010
Business Retention and Expansion Research strategies
were similar to the 2008 Development Strategies. The
review process identified the need to continue similar
strategies into the future.
Preceding the development of the 2008 Comprehensive
Plan an assessment was conducted by St. Cloud State
University to determine whether a bioscience park
should be established in Monticello. At that time the
bioscience industry was an economic development
focus statewide. While the attraction of a bioscience
business is not a particular focus of Monticello today,
there are findings of that study that can be useful to
attraction and retention. This includes the identification
of funding sources which may be an incentive for
businesses locating in Monticello. When available the
City should participate in special tax zones that have
been made available at the state and federal level to
support business development and retention.
Expanding the Tax Base
A traditional objective of local economic development
planning is the expansion of the property tax base.
Under the current system of local government finance,
property taxes are the largest source of city revenue.
For this reason, it is an important aspect of economic
development planning in Monticello.
Understanding the Property Tax System
Effective strategies to promote the growth of the tax
base require a clear understanding of the property tax
system.
Property Valuation
consider in the overall development of economic There are three forms of property valuation. The
development strategies for the community. foundation of the property tax system is Estimated
Some of the Monticello's strengths for attracting
businesses included:
► Land availability (compared to Metro Area).
► Access to major highways (I -94, U.S. 10 and STH
25).
► Regional growth of employment base.
► Development of local fiber optic system
► Proximity to universities.
► Overall location.
► Expansive park system.
► Monticello Community Center.
Recommended business development activities that
apply to the attraction and retention of all businesses
include ensuring that there are sites suitable and
attractive to potential businesses available and ready
for development. The community should continue to
explore and establish partnerships with a variety of
stakeholders that can work together to support business
Market Value. This amount is the value of a parcel
of property as set by the County Assessor. In some
circumstances, the State Legislature limits the amount
of Estimated Market Value that can be used for taxation.
These adjustments result in the Taxable Market Value.
The value used to calculate property taxes is Tax
Capacity. Tax Capacity Value is a percentage of Taxable
Market Value. The percentage factors are set by the
State Legislature and vary by class of property.
Changes in the Tax System
Traditional economic development theory seeks
commercial and industrial development as a means of
building tax base. Historically, the system supported
this approach. A dollar of estimated market value of
commercial - industrial property carried a higher tax
capacity value than residential property. Over the past
twelve years, tax "reforms" by the State Legislature have
changed this situation.
2008 Comprehensive Plan — Updated 2013 Economic Development 1 4 -3
Figure 4 -2: Changes in Tax Capacity Value - Commercial /Industrial
Figure 4 -3: Tax Capacity Comparison
300,000
250,000
200,000
v
.a
T
150,000
d
10
U
x
m
H
100,000
50,000
0
Industrial Retail
450,00
400,000
Single Townhome
350,000
300,000
Retail
r 250,000
WE
a
v 200,000
Apt
150,000
10
100,000
10
50,000
10
10
(overage
0
1997 1998 1999 2000 2001 2002 to 2012
Figure 4 -3: Tax Capacity Comparison
300,000
250,000
200,000
v
.a
T
150,000
d
10
U
x
m
H
100,000
50,000
0
Industrial Retail
Office
Single Townhome
Apt
Industrial
Retail
Office
WE
Townhome
Apt
Acres
10
10
10
10
10
10
(overage
30%
30%
30%
3
6
12
Development (SF or Units)
130,680
130,680
130,680
30
60
120
EMV per SF or Unit
65
80
100
400,000
250,000
150,000
EMV
8,494,200
10,454,400
13,068,000
12,000,000
15,000,000
18,000,000
Tax Capacity 169,134 208,338 260,610 120,000 150,000 225,000
4 -4 1 Economic Development City of Monticello
The chart in Figure 4 -2 shows how legislative changes
have reduced the tax base created by commercial -
industrial development. This chart is based on the
tax capacity value for $3,000,000 of Taxable Market
Value. The legislative changes in the rates used to set
tax capacity mean that this property produced 56% less
tax base in 2012 than in 1997.
This trend takes on additional meaning when compared
to other classifications of property. Figure 4 -3
compares the tax capacity value for the primary forms
of development in Monticello. The valuations in this
chart are based on assumptions about the density
of development and estimated market value of new
development. Changes in these assumptions will alter
the results.
This chart clearly illustrates the current reality for
economic development strategies. All forms of
development contribute tax base to the community.
It is risky placing too much weight on one type of
development for tax base growth. In addition, cities
do not control the critical elements of the tax system.
Changes in the system lead to unanticipated results at
the local level.
Tax base growth has implications that are unique
to Monticello. The chart in Figure 4 -4 shows the
distribution of taxes payable in 2011. Utilities, likely
largely Xcel Energy, contributes about one -third of
the City's taxes, while both commercial /industrial and
residential uses contribute 28% each.
Enhancing Downtown
Maintaining a successful Downtown is an important
element of the economic development plan for
Monticello. Downtown is a key business district
providing goods, services, and jobs for the community.
Downtown is unlike any other business district because
of its unique role in Monticello's identity and heritage.
The Land Use chapter describes plans, policies, and
strategies related to Downtown Monticello. Downtown
is part of the Economic Development chapter because
of the likelihood that city actions and investments
Figure 4 -4: Distribution of 2011 Taxes Payable
will be needed to achieve community objectives for
Downtown. This intervention may include:
► Public improvements to provide services or to
enhance the Downtown environment.
► Provision of adequate parking supply.
► Acquisition of land.
► Preparation of sites for development.
► Removal of other physical and economic barriers
to achieve community objectives.
These actions may require the use of tax increment
financing, tax abatement, or other finance tools
available to the City.
In 2011, the City of Monticello conducted a retail market
study for Downtown Monticello. The report, Embracing
Downtown Monticello, has been incorporated in the
Comprehensive Plan as an appendix and serves as a
resource for the implementation of the Comprehensive
Plan. The study included many components including
an identification and analysis of existing businesses,
evaluation of shopping areas that are competition for
Downtown, a survey of customers, delineation of the
trade area, and the establishment of market demand
for various businesses.
2008 Comprehensive Plan — Updated 2013 Economic Development 1 4 -5
Some findings of the study included:
► Downtown Monticello enjoys a strategic location
between the Mississippi River and I -94. This
focuses traffic on TH -25 resulting in traffic counts
higher in Downtown than south of 1 -94
► Due to physical barriers created by the Mississippi
River and I -94, about one -third of Downtown and
secondary trade area shoppers must pass through
Downtown Monticello to reach the shopping areas
south of 1-94.
► Downtown has the largest concentration of
shopping goods stores and restaurants.
► Downtown's trade area population was estimated at
93,500 in 2010 and is projected to have an annual
growth rate of 2.2 %.
► Monticello's large anchor stores (Cub Foods,
SuperTarget, Walmart, and Home Depot) create
a secondary trade area. The population of the
combined Downtown and secondary trade areas
was 127,190 in 2010.
► CentraCare Health System, with 25 beds and 600
employees has established Monticello as a regional
medical center.
► Increased residential development stimulates
increased commercial development. The recent
economic conditions have slowed residential
development, thus resulting in reduced tenant
demand for retail space.
► Additional retail space in Downtown Monticello
can be supported by the trade area population. A
range of store types can be considered including
shopping goods, convenience goods, and food
establishments. Downtown's existing wide variety
of services limits potential future opportunities.
However, market research indicates that Monticello
could support additional medical practices.
Figure 4 -5: Embracing Downtown Monticello Primary and Secondary Trade Areas
4 -6 1 Economic Development City of Monticello
Facilitating Redevelopment
The Comprehensive Plan seeks to create a place where
land use plans, policies, and controls work together
with private investment to properly maintain all
properties in Monticello. It is recognized that this
approach may not succeed in all locations. Despite
the best plans and intentions, properties may become
physically deteriorated and /or economically inviable. In
such places, city intervention may be need to facilitate
redevelopment and prevent the spread of blight. This
intervention may include:
► Acquisition of land.
► Preparation of sites for development.
► Construction or reconstruction of public
improvements.
► Provision of adequate parking supply.
► Remediation of polluted land as needed.
► Removal of other physical and economic barriers
to achieve community objectives.
These actions may require the use of tax increment
financing, tax abatement, or other finance tools
available to the City.
Development Strategies
The following strategies will be used to implement
the Comprehensive Plan in the area of Economic
Development:
1. The City must use the Comprehensive Plan
to provide adequate locations for future job -
producing development (Places to Work).
2. The City should adhere to the Comprehensive Plan
to encourage stable business setting and promote
investment and expansion of facilities.
3. The City should coordinate utility planning
and manage other development to ensure that
expansion areas are capable of supporting new
development in a timely manner.
4. The City will continue to work with existing
businesses to maintain an excellent business
environment, retain jobs, and facilitate expansions.
5. In addition to assisting business seeking to locate
in Monticello, the City should actively target and
market to businesses which will be a supplier,
customer or collaborative partner to existing
businesses within the community.
6. The City should target and market to businesses
which would benefit from Monticello's utility and
communications infrastructure.
7. The City will work with the CentraCare Health
System to ensure the retention and to promote the
expansion of health care services in Monticello.
S. The City will use the Comprehensive Plan to
maintain and enhance the quality of life in
Monticello as a tool for attracting businesses and
jobs.
2008 Comprehensive Plan — Updated 2013 Economic Development 1 4 -7
_, --7—
Landmark Areas:
L -1 Public Parking Ramp
L -2 River Oriented Shopping
L -3 Cargill Site
L-4 Community Center Site
L -5 Riverfront Park
L-6 Future Public Open Space
L -7 Permanent Public Open Space
L -8 Freeway Retail (B-4 Zoning Standards)
Flex Areas:
F -1 Shopping Area West of Hwy 25
F-2 Convenience and Services
F -3 Transition
Corridors:
1 Broadway Street
2 Walnut Street
3 Highway 25 / Pine Street
Figure 22 — Design Guidelines Use Areas
53
Figure 20 illustrates Refined Scheme A as the recommended basis for the further definition of financial
feasibility and implementation plans and phasing for redevelopment of downtown Monticello. The
framework of land use districts, areas for maintaining existing development, areas for promoting
redevelopment, approaches to transportation corridors, and improvements to preserve and enhance
the downtown image are represented in Refined Scheme A. These elements will become the basis for
policies and guidelines to direct future development and redevelopment in the CCD.
z
I
PVEUC (RV2K
_ I
96 f�-
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4 Yllm ,
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Figure 20 — Refined Scheme A
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fi fi I9i Y. xv9T.
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LL
Li
Table 8 on the following page summarizes the potential redevelopment square footage illustrated for
the CCD north of 5`" Street, and identifies the block by block change from the existing condition.
44
Chapter 3 - Downtown Framework Plan and Design Guidelines
Framework for Downtown Development
The alternative downtown redevelopment concepts, including the preferred alternative illustrated in
Refined Scheme A (Figure 20) represent and illustrate possibilities for ways that market demand that
exists in the Monticello Trade Area can fit within the northern half of the CCD where the greatest
potential for redevelopment exists. The
plans show specific uses and parking
relationships that may, or may not
accurately depict how opportunities are
captured over time within the CCD.
w Public However, what is specific about the
Public Publlc ,
it Park €ng
w
w preferred alternative is the general
F 1 °e` Convenience organization of uses, and the location
Oriented
Z p o Shoppin Services
0 of types of uses within the CCD. Figure
0 oaawAYSTREET 21, the Redevelopment Framework
o Plan, illustrates the recommended use
districts consistent with the
��
Shopping c ? m preferences illustrated in Refined
iff I Scheme A.
4TH STREET
6TH STREET z W
Crvic z
p a �
o Public
WALNUT Ex. Retail o ��51,"
STREET 0ivic `...J�1
a
9
o Ex. Retail
Existing Retail �J`� f f-�
I -94
Figure 21— Framework Plan
Structure for Design Guidelines
Proposed use areas, or districts, in the
Framework Plan are based on access,
location within the CCD, and
surrounding land use relationships. The
Framework Plan represents the
flexibility needed to capture all
potential development and
redevelopment opportunities for the
CCD. As opportunities present
themselves and are evaluated,
locations for uses should fit the
purpose and capabilities of the districts
illustrated in the Framework Plan. The
use districts are defined in greater
detail as part of the proposed Design
Guidelines for the CCD.
The Design Guidelines are intended to correspond to the limits of the CCD Zoning District, and to
establish development controls within the CCD. With the forthcoming modifications to the Monticello
Zoning Code, the development standards for the CCD District will be revised to refer to the CCD Design
Guidelines as the controlling legislation for land use, site development standards, and building design
51