IEDC Agenda 09-01-2015
AGENDA
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, September 1st, 2015 - 7 a.m.
Boom Island Room, Monticello Community Center
________________________________________________________________________________
Members: Pat Thompson, Joni Pawelk, Wayne Elam, Luke Dahlheimer, Bill Tapper, Dick Van
Allen, Zona Gutzwiller, Jim Johnson, Don Roberts, Mary Barger, Tim O’Connor, Steve
Johnson, Tim Laitinen
Liaisons: Jeff O’Neill, Angela Schumann, Mayor Brian Stumpf, Lloyd Hilgart, Marcy Anderson
1. Call to Order.
2. Approve Minutes:
a. August 4th, 2015
3. Consideration of adding items to the agenda.
4. Reports:
a. Economic Development Report
b. TAC
c. City Council
d. Chamber of Commerce and Industry
5. Consideration of appointment of a Vice Chair and recommendation of appointment of
Chamber IEDC representative.
6. Table Topic – City of Monticello Economic Development Incentive Programs
7. Adjournment (8:00am)
MINUTES
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, August 4, 2015 – 7:00 a.m.
Boom Island Room, Monticello Community Center
Present: Pat Thompson, Joni Pawelk, Wayne Elam, Bill Tapper, Dick Van Allen,
Zona Gutzwiller, Jim Johnson, Don Roberts, Mary Barger, Steve Johnson,
Tim Laitinen
Absent: Luke Dahlheimer, Tim O’Connor
Other: Jeff O’Neill, Angela Schumann, Brian Stumpf, Lloyd Hilgart
1. Call to Order
Pat Thompson called the meeting to order at 7 a.m.
2. Approve Minutes
STEVE JOHNSON MOVED TO APPROVE THE MINUTES OF THE JUNE 2, 2015
IEDC MEETING. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED
11-0.
3. Consideration of adding items to the agenda
Industry of the Year Nominating Committee
Vice Chair Nomination
4. Reports
a. Economic Development Report
Economic Development position
EDA/HRA Levy
Block 34
Solar Energy
TAC
Planning Commission Agenda
TH 25/CSAH 75 Preliminary Schedule
Data Practices
b. City Council: Staff and Council representatives provided project and issue updates
and responded to questions.
c. Chamber of Commerce & Industry: Marcy Anderson reported on current events,
projects and issues.
IEDC Minutes: 8/04/15
2
d. TAC: Staff provided an update related to ongoing and upcoming transportation issues
and projects.
5. Consideration of recommendation regarding IEDC vacancies
The Chamber Board will designate a representative (and voting member) to serve on the
IEDC in place of Tara Thurber (All Elements, Inc.) who recently resigned. In addition,
staff has been notified of board membership interest from a member of the industrial
community.
DICK VAN ALLEN MOVED TO POST IEDC POSITION VACANCIES WITH AN
AUGUST 21, 2015 APPLICATION DEADLINE; AND TO RECONVENE THE IEDC
INTERVIEW SUBCOMMITTEE (PAT THOMPSON, JONI PAWELK AND DON
ROBERTS) TO CONSIDER APPLICATIONS RECEIVED. STEVE JOHNSON
SECONDED THE MOTION. MOTION CARRIED 11-0.
6. Monticello School District Career Day
Monticello School District Superintendent Jim Johnson encouraged IEDC participation in
2015 Career Day activities. Career Day is scheduled from 7:30-10:30 a.m. on November
25th at the high school. Johnson indicated that more information would be provided via
email.
7. June Table Topic – City of Monticello Economic Development Incentive Programs
BILL TAPPER MOVED TO TABLE THE TABLE TOPIC. MARY BARGER
SECONDED THE MOTION. MOTION CARRIED 11-0.
8. Consideration of adding items to the agenda
Industry of the Year Nominating Committee – Zona Gutzwiller and Pat Thompson
agreed to serve on the Industry of the Year Nominating Committee.
Vice Chair Nomination – Pat Thompson asked to include nomination of a Vice Chair
on the September IEDC agenda.
9. Adjournment
ZONA GUTZWILLER MOVED TO ADJOURN THE MEETING AT 8:03 A.M. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 11-0.
Recorder: Kerry Burri
Approved:
Attest: ______________________________________________________
Angela Schumann, Community & Economic Development Director
IEDC Agenda: 09/01/15
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4. Economic Development Report (JO/AS)
Economic Development Authority Update
Economic Development Position
The EDA has formally recommended the approval of a dedicated Economic Development
staff position. Staff also presented the position as part of 2016 budgeting. The final decision
on the hiring of the position will require Council approval of the budget for the item, as well
as Council approval of the posting for the proposed full-time position.
EDA/HRA Levy
The EDA adopted a resolution authorizing a special benefit levy (HRA levy) and approving a
budget for fiscal year 2016 during a joint workshop with the City Council on August 24th, 2016.
The adoption of a special benefit levy is contingent on the approval of the City Council. More
information on the consideration can be found in the August 24th, 2015 Council agenda packet
for the item.
The Council will consider the levy and budget filing on September 14th, 2015.
Solar Energy Update
The City Council adopted the proposed amendments for Solar Energy Systems on August
24th, 2015. Full text of the consideration can be found in the August 24th, 2015 Council agenda
packet for the item.
Industry of the Year Update
Mr. David FitzSimmons, Chief of Staff for US Representative Tom Emmer, has agreed to be
the keynote speaker for this year’s Industry of the Year event. Invitations for the October
21st, 2015 event will be sent in early October with a “Save the Date” sent in mid-September.
A reminder that nominating for candidates for the Industry of the Year award is open. A
nomination form is attached. To-date, no applications have been received. In addition, IEDC
members should be aware that they will be invited to attend tours of the top three candidate
firms in mid to late September.
Similar to prior years, the EDA has approved funding of the event, which is supplemented by
sponsorships from the community.
UMC/Workforce Education Event
Staff and EDA President Bill Demeules will be attending a meeting at UMC in Monticello to
discuss on on-going workforce development concept exploring how high schools, technical
centers/colleges and businesses can work together build skills for a career in the
IEDC Agenda: 09/01/15
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manufacturing industry. This model will be aimed at the high school level to create a flow
with the technical centers/colleges and business partnerships to lay out a plan for transitioning
the student between each level. An update on this event will be provided at the IEDC
meeting.
IEDC members will note that this type of project was identified on the IEDC’s annual work
plan.
TAC Update
1. TH 25/CSAH 75 Project
On August 24th, 2015, the City Council rejected bids associated with the TH 25/CSAH 75
project. This was primarily due to the submitted bid costs, which were over engineer’s
estimates. It is intended that the project will be re-bid in October or November for a spring
construction. Accordingly, the schedule for the project will be revised and provided to the
IEDC at an upcoming meeting.
2. Interchange Study
As the IEDC is aware, the City Council previously authorized work on an interchange study
to determine the viability of interchange locations in the northwest corridor of the community.
WSB has indicated that a critical component of the study is an understanding of interchange
need based on land use for the area. At present, much of the northwest area in the MOAA is
designated as “Interchange Planning Area”. As such, staff have worked with the City
Planner, NAC, to develop a scope of work for an interchange planning study to better define
land use concepts as related to potential interchange(s). More detail on that proposal, which
will go forward to the Planning Commission, then ultimately to the City Council, can be
found on the Planning Commission’s September agenda page.
September Planning Commission Agenda
September’s Planning Commission agenda is attached for the IEDC’s reference.
Staff reports for items are posted to the Planning Commission’s 2015 Agenda page.
IEDC Agenda – 09/01/15
5. Consideration of appointment of a Vice Chair and recommendation of appointment
of Chamber IEDC representative. (AS)
A. REFERENCE AND BACKGROUND:
The IEDC is asked to provide a recommendation regarding two positions in the IEDC
membership.
First, as the IEDC will recall from the August meeting, Tara Thurber of All Elements has
resigned her position as the Chamber’s voting representative to the IEDC due to other
commitments. Chamber Executive Marcy Anderson has indicated that the Chamber
Board has recommended Darek Vetsch of Russell’s on the Lake as their replacement
representative. Mr. Vetsch is a resident of Monticello. The IEDC’s recommendation on
this position will be forwarded to the City Council for ratification. The IEDC will have
17 voting members in October with the appointment of the new Chamber representative.
The IEDC is also asked to appoint a Vice Chair for the Committee, as Tara Thurber had
previously had that position.
Finally, as an update, the IEDC received one application for its open seat. The IEDC
interview committee of Don Roberts, Joni Pawelk and Pat Thompson are working on a
date for interview of the candidate.
Current IEDC roster:
IEDC: 1 Bill Tapper 3 yr 2017
(3-year staggered terms) 2 Jim Johnson 3 yr 2017
3 Tim O'Connor 3 yr 2017
4 Mary Barger 3 yr 2015
5 Dick Van Allen 3 yr 2015
6 Luke Dahlheimer 3 yr 2015
7 Joni Pawelk 3 yr 2016
8 Zona Gutzwiller 3 yr 2016
9 Wayne Elam 3 yr 2016
10 Don Roberts 3 yr 2016
11 Pat Thompson 3 yr 2016
12 Steve Johnson 3 yr 2016
13 Tim Laitinen 3 yr 2015 appointed 3/9/15
14 Brian Stumpf Council liaison
15 Lloyd Hilgart Council liaison
16 VACANT
17 VACANT – CHAMBER
REPRESENTATIVE
(voting) Chamber Rep
appointed 2/9/15
18 Chamber Director ex-officio
IEDC Agenda – 09/01/15
B. ALTERNATIVE ACTIONS:
DECISION 1: IEDC Chamber Representative
1. Motion to recommend to the City Council the appointment of Darek Vetsch to the
Monticello IEDC.
2. Motion of other.
DECISION 2: Vice Chair
1. Motion to appoint IEDC member ____________ as Vince Chair of the IEDC.
2. Motion of other.
C. STAFF RECOMMENDATION:
Staff defers to the committee matters of appointment.
D. SUPPORTING DATA:
A. IEDC Organizational and Membership Guidelines
AGENDA
REGULAR MEETING - MONTICELLO PLANNING COMMISSION
Tuesday, September 1st, 2015 - 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners: Brad Fyle, Linda Buchmann, Sam Murdoff, John Falenschek,
Marc Simpson
Council Liaison: Charlotte Gabler
Staff: Angela Schumann, Steve Grittman (NAC)
1. General Business
A. Call to Order
B. Consideration of approving minutes
a. Regular Meeting Minutes – July 7th, 2015
b. Special Meeting Minutes - August 4th , 2015
c. Regular Meeting Minutes – August 4th, 2015
C. Citizen Comments
D. Consideration of adding items to the agenda
2. Public Hearings
A. Continued Public Hearing – Consideration of a Map Amendment for Rezoning
from B-3 (Highway Business) District to B-2 (Limited Business) District, and
ZoningText Amendment within the B-3 (Highway Business) District to allow
Places of Public Assembly as a permitted or conditional use.
Applicant: Quarry Community Church
B. Public Hearing - Consideration of a request for Amendment to the Monticello
Zoning Ordinance Chapter 4 Finishing Standards, Section 4.3 Fences & Walls,
Subsections (G) Prohibited Fences and (J) Appearance regulating Permit
Requirements and allowable materials.
Applicant: City of Monticello Planning Commission
C. Public Hearing - Consideration of a request for Amendment to the Monticello
Zoning Ordinance Chapter 5 Use Standards, Section 5.3 Accessory Use Standards,
Subsection (D) Additional Specific Standards for Certain Accessory Uses
regulating accessory use related to outdoor bulk fuel sales.
Applicant: Quality RV/Machholz, Craig for VHM Holdings/Von Hanson’s Meats
3. Regular Agenda
A. Consideration of an update and recommendation on the Northwest Monticello
Interchange Planning Area.
4. Added Items
5. Adjournment
2015 Industry of the Year Nomination Form
(Feel free to nominate more than one qualified industry – please use one form for each nomination)
NOMINATIONS DUE SEPTEMBER 1st, 2015
Selection Criteria
Must be classified as Industry.
Industry shall be defined as: a business that performs a majority of their
commercial activity with other businesses and a minority of their commercial
activity directly with the public consumer.
The Business has been established for at least (5) five years.
The Business has not received this award in the past five (5) years.
Business Excellence: Successful business practices, i.e., marketing and promotion of
business ethics; promotion of employee growth and development; contribution to its
industry; and research and development
Staff training, motivation, and employee engagement: Philosophy of engaging and
empowering employees. Empowered employees are proactive and persistent, and
make decisions that are consistent with the company’s strategic goals and objectives.
Organizations benefit greatly from having an engaged workforce. Research shows
strong connections between employee engagement and turnover, productivity,
customer service, loyalty and corporate financial performance.
Innovation: Creativity, entrepreneurial, and implementing innovation in business
operations, products and services. Strides to continually distinguish itself from other
businesses in their industry.
Community Involvement: A demonstrated interest in the welfare of the community
through financial contribution, service, and civic leaderships. Actively supports the
community through participating in volunteer programs and/or events
Customer Relations: A high level of customer confidence and excellence in
customer services and relations.
Economic Growth: Continual increase in tax base and creation of liveable wage
jobs.
I would like to nominate___________________________________________.
They are deserving of this award because_____________________________
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Your name Date
PLEASE RETURN NO LATER THAN SEPTEMBER 1st, 2015.
The IEDC will review and select from the nominations received. The winner will be
recognized at the Annual Manufacturing Appreciation Event to be held on October
21st, 2015.
Return to:
Angela Schumann, City of Monticello – 505 Walnut Street, Suite 1
angela.schumann@ci.monticello.mn.us; fax 763-295-4404
IEDC Informational
Tuesday, September 1st, 2015
Business Subsidy Programs
City adopted Business Subsidy Criteria
Goals –Consistent with Comprehensive Plan
Attracting New Businesses & Expanding Tax Base
Attracting New Jobs & Job Retention
Business Retention
Enhancing Downtown
Facilitating Redevelopment
Housing
Subsidy Programs
EDA and Council adopts guidelines for each type of
subsidy:
Tax Increment Financing (TIF)
Greater Monticello Enterprise Fund (GMEF)
Small Cities Economic Development Set Aside Fund
(SCED) –City Council
Guidelines are in accordance with statutes and
state/federal requirements for funding sources and
must be managed to maintain and document
compliance
Tax Increment Financing (TIF)
Tax Increment Financing (TIF)
Relies on the increased value of a project to create
increment which then fills the “gap” for development
Most common types of districts
Redevelopment
Housing
Economic
Manufacturing & warehousing
Renovation & Renewal
Soils
City has 11 active districts –mix of types
Tax Increment Financing (TIF)
All requests must meet the “but for” test: the project would not develop solely
with private investment in the reasonable future.
Cannot be provided to projects that have the financial feasibility to proceed
without the benefit of the subsidy (cannot be used solely to increase profit
margins on a project).
Goals:
JOBS -TIF requests should create the highest feasible number of jobs on site from date of
occupancy.
WAGES -For manufacturing and warehousing TIF requests, at least 90% of the jobs created
must pay at least 160% of the federal minimum wage requirements for individuals over the age of
20 during the term of the assistance.
In the case of a recipient with existing jobs, the EDA may determine that the wage goal is
satisfied if wages are increased by a specified amount over the federal minimum wage.
Annual written reports are required until termination date. Failure to meet the job and wage
level goals require partial or full repayment of the assistance with interest.
TIF requests should result in a substantial increase in property value and/or property taxes.
TIF requests should facilitate redevelopment or elimination of “substandard” or “blighted” areas
where deemed appropriate.
TIF requests should facilitate the “clean-up” of environmentally unsound property where
deemed appropriate.
TIF requests should increase housing options for area residents where deemed appropriate.
TIF is a public purpose tool –benefit of the community as a whole.
Greater Monticello Enterprise Fund
(GMEF)
The purpose of the Greater Monticello Enterprise Fund
(GMEF) is to encourage economic development by
supplementing conventional financing sources available to
existing and new businesses.
Secondary source of financing
Eligibility:
Industrial and commercial businesses.
Businesses currently located or to be located within the City
of Monticello.
Credit-worthy existing businesses.
Start-up businesses with worthy business plan and/or pro
forma in a form acceptable to the EDA (historically non
credit-worthy businesses will be denied).
Greater Monticello Enterprise Fund
(GMEF)
Public Purpose –GMEF loans must meet at least one of the
following:
To provide loans for credit-worthy businesses which create
new jobs.
To provide loans for credit-worthy businesses that would
increase the community tax base. (Must meet a second
criteria)
To provide loans to credit-worthy industrial or commercial
businesses (new or existing) that would allow the ability to
improve or expand their operation.
Job retention.
Greater Monticello Enterprise Fund
(GMEF)
Use of GMEF
Real property acquisition, development, & rehabilitation improvement costs including but not limited to
the following:
Land Acquisition
Engineer/Design Inspection Fees
Building Permit Fees
Architect Fees
Building Materials
Soil Borings
Construction Labor
Appraisal Fees
Landscaping
Legal Fees
Grading
Environmental Study
Curbing/Parking Lot
Recording Fees
Title Insurance
2. Machinery and equipment:
a. Personal property used as an integral part of the manufacturing or commercial business, with a useful life
of at least three years. Acquisition costs would include freight and sales taxes paid. As a general rule, office
equipment would not qualify.
Cannot be used to provide for operating capital
Small Cities Economic Development
Set Aside Fund (SCED) –City Council
SCED funds were originally received in a partnership
between the City, a private project developer, and the
Department of Employment and Economic Development
(DEED).
DEED funding came from a mix of both federal and state sources,
including Community Development Block Grant funds.
City retained a majority of the loan funds after repayment,
including principal and interest, in a revolving loan fund.
DEED allows the City to continue to hold and administer the
funds through the SCED revolving loan program.
SCED funds retain their status as state and federal funds
and the local government and future loans must continue
to comply with all requirements in any reuse of the funds.
Small Cities Economic Development
Set Aside Fund (SCED) –City Council
Revolving loan funds are to be used for business start ups, expansions,
and retention where jobs are created or retained. The grant or loan
must be based on one or more of the following criteria:
Creation of new jobs or retention of existing jobs;
Increase in the tax base;
Investment of public dollars inducing private investment;
Excessive public infrastructure or improvement cost beyond the means
of the affected community and private participants in the project;
Higher wage levels to the community or added value to current
workforce skills;
Necessity of assistance to retain existing business; and
Necessity of assistance to attract out-of-state business.
RLF’s may be used to provide assistance for infrastructure, loans, loan
guarantees, interest buy-downs, and other forms of participation with
private sources of financing.
Small Cities Economic Development
Set Aside Fund (SCED) –City Council
RLF’s may be used for the following activities:
Purchase of land
Construction of a building or other improvements
Renovation of an existing building to accommodate the business
Construction of tenant improvements
Purchase of Capital Equipment
Lease or purchase of an existing building
Site improvements
Public improvements and privately owned utilities
Workforce Development including job training and placement:
Microenterprise Assistance: RLF assistance can be provided to persons
owning or developing a microenterprise, which is defined as a
commercial enterprise that has 5 or fewer employees, one or more of
whom owns the enterprise.
Again, no working capital
For more information:
Community Development Director
Angela Schumann
763-271-3224
Angela.schumann@ci.monticello.mn.us