EDA Agenda 01-12-2011EDA MEETING
Wednesday, January 12, 2011
6:00 p.m.
Mississippi - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, Tracy Hinz, and Council
members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett
1. Call to Order
2. Approve Meeting Minutes:
a. December 15, 2010
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Request by J. Edwin Chadwick asking the EDA to purchase 13.6 acres of residentially
zoned property located adjacent to the Monticello Business Center
6. Marketing Update:
a. Conferences
b. Website
c. Concierge Team
7. Director Report
8. Adjournment
Economic Development Authority Minutes 12/15/10
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MEETING MINUTES
Wednesday, December 15, 2010 - 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, Tracy Hinz,
and Council Members Tom Perrault and Brian Stumpf
Commissioners Absent: Dan Frie
Staff. Executive Director Megan Barnett- Livgard, Angela Schumann, Community Development
Director
1. Call to Order
President Demeules called the meeting to order at 6 p.m.
2. Approve Meeting Minutes
BILL TAPPER MOVED TO APPROVE THE NOVEMBER 10, 2010 EDA MINUTES
AS AMENDED. BILL FAIR SECONDED THE MOTION. MOTION CARRIED 5 -0.
3. Consideration of additional agenda items None
4. Approval of EDA Invoices
Megan Barnett - Livgard noted that she had included an invoice from Kennedy & Graven
related to the Walgreens development for which the EDA had funded a portion of the
improvement of the Highway 25/75 intersection. She indicated that the funds were
expended out the TIF District 1 -22 Administration budget for drafting of the contract.
BILL TAPPER MOVED TO APPROVE THE NOVEMBER INVOICES WITH THE
PROVISION THAT THE EDA RECEIVE A RUNNING TOTAL OF PAYMENTS
MADE RELATED TO THE WALGREENS PROJECT. BRIAN STUMPF SECONDED
THE MOTION. MOTION CARRIED 6 -0.
5. Consideration of adopting revised EDA Bylaws
It came to staff's attention that the EDA bylaws approved in 2009 appear to be missing
pertinent information establishing president and vice president positions and related duties.
Staff contacted Kennedy and Graven to look through the document to ensure the bylaws
contain required State Statute language. The revised document is consistent with state
Economic Development Authority Minutes 12/15/10
statute language, refers to the enabling resolution, establishes an annual meeting, and
defines officers and duties.
BILL FAIR MOVED TO APPROVE THE PROPOSED BYLAWS. BILL TAPPER
SECONDED THE MOTION. MOTION CARRIED 6 -0.
6. Consideration of recommending appropriate zoning classification for EDA owned
property, Monticello Business Center
The City has been working on rewriting the current zoning code for the past year. Public
hearings for various sections of code have been conducted and final adoption is anticipated
by early 2011. Several zoning designations have been eliminated or modified in a
continued effort to streamline and simplify processes and better respond to the evolution of
land use. The revised code involves rezoning in the Monticello Business Center.
The Monticello Business Center is currently zoned I -lA. This zoning district will be
eliminated under the code revision. Properties will be rezoned to either an I -1 (light
industrial) or a newly created district, IBC (Industrial Business Campus). The EDA was
asked to decide which zoning designation best fits the industrial park. The existing
businesses in the industrial park are primarily warehouse and light manufacturing users.
In general, the IBC, while similar to the previous I -lA in terms of building and yard
requirements, would now allow for a limited number of commercial uses including
restaurants, clinics, daycare, etc. An IBC district designation would also limit general
industrial uses such as warehousing. An IEDC sub -group had provided input and
assistance in reviewing and developing the proposed ordinances guidelines for all of the
industrial districts.
There was considerable discussion about the impact of each rezoning option. The EDA
considered what uses would be lost with each option. Bill Tapper indicated that the IEDC
hadn't made a recommendation about this issue. Tom Perrault asked how much industrial
business land would be left if the center were rezoned to I -1. Angela Schumann provided
an overview of the proposed draft zoning classification map. She noted that the area along
7`h Street to north of the interstate and the property between Twin City Die Cast and UMC
would remain I -1. She also indicated that proposed zoning changes would not create
nonconforming uses within the industrial business campus.
Megan Barnett - Livgard noted that there are 40 acres available in the industrial park that not
all are developable and the land is not laid out to necessarily allow for commercial
development. She also pointed out that there is a large commercial district just to the north
on Chelsea Road.
There was discussion about adult uses allowed in the zone I -2. Community Development
Economic Development Authority Minutes 12/15/10
Director Schumann indicated that the city can limit the distance of adult uses to other uses.
Schumann agreed to request clarification as to the definition of general warehousing.
Staff clarified that the use of the Hoglund Bus & Truck facility would be nonconforming if
they sought to expand the facility. Staff noted that an IBC zoning classification would also
require Hoglund to obtain a conditional use permit.
Bill Tapper summarized that the EDA should allow zoning to be as open as possible and
recommended the IBC zoning classification. There was considerable discussion about the
intention of the Monticello Business Center as an industrial park and the need to simplify
the zoning requirements for business owners through code revision. Barnett- Livgard
pointed out that there are already alternative options for commercial development, many
right across the street from the Business Center, but more limited options for industrial land
throughout the City. Angela Schumann suggested the EDA choose the zoning option that
would best achieve the intention for the Business Center given the land uses already there.
BILL FAIR MOVED TO RECOMMEND THAT THE CITY COUNCIL REZONE THE
MONTICELLO BUSINESS CENTER TO I -1. BRIAN STUMPF SECONDED THE
7. Consideration of authorizing a $2,000 contribution to the Initiative Foundation
The Initiative Foundation provides gap financing for new or expanding companies and
grants to non -profit and government agencies. The Foundation provided the City of
Monticello a $5,000 grant in 2010 to assist in completing a BR &E program. The
Foundation requested that the Monticello EDA contribute $2,000 to the organization in
2011. The EDA had authorized a $2,000 contribution in 2010.
BRIAN STUMPF MOVED TO APPROVE CONTRIBUTING $2,000 OF THE 2011
EDA GENERAL FUND TO THE INITIATIVE FOUNDATION. BILL FAIR
SECONDED THE MOTION. MOTION CARRIED 5 -0. BILL TAPPER ABSTAINED.
Tom Perrault stated that he supported this motion because the McKnight Foundation
would match the EDA contribution.
8. MarketinE Update
a. Conferences
Wayne Elam and Sandy Suchy attended the Life Science Alley conference and
staff has since scheduled a meeting with a lead from that conference.
Economic Development Authority Minutes 12/15/10
b. Website
The new Economic Development website has been launched.
www. buildingbusinessimnonticello .com will provide a one -stop City site for
economic development resources available in the area.
C. Concierge Team
The Concierge Team was established as a key component to aggressively bridging
the communication gap that currently exists between businesses, local leaders and
available resources according to BR &E findings. Team photos have been posted
on the new Economic Development website. The team will focus on marketing
activities as well as breakfast meetings with individual businesses and site visits to
begin to build community connections and help businesses grow.
9. Director Report
The Director Report was included as part of the agenda packet submitted to the EDA.
Megan Barnett- Livgard noted that the McComb Group had presented a preliminary retail
market analysis report to the Embracing Downtown Steering Committee. The consultants
will provide a power point presentation which will be forwarded to the EDA. The next step
will be to engage the stakeholders and the Steering Committee in looking at opportunities
and challenges as well as considering alternative design standards. Bill Fair noted that the
report was a good reality check. Staff confirmed that the consultants would put forth a
strategic plan to address issues identified.
Dan Frie decided not to reapply for another term as EDA Commissioner. The EDA had not
yet received any applications for the volunteer position, which is open to all City residents.
10. Adiournment
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:53 PM. BILL FAIR
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Kerry T. Bum:
Recorder
Approved: January 12, 2010
Megan Bamett - Livgard, Executive Director
4. APPROVAL OF INVOICES:
a. Kennedy & Graven $726
*General EDA
* Walgreens
*Dahlheimer
b. Wayne Elam $144.31
*booth table for Life Science Alley Conference
c. McComb Group $11,115.76
*Embracing Downtown Study (have spent $27,127.20 to date on project)
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Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337 -9300
Tax ID No. 41-1225694
December 10, 2010
Statement No. 99627 —'
City of Monticello
Accounts Payable
505 Walnut Avenue, Suite 1
Monticello, MN 55362
Through November 30, 2010
MN190 -00101 General EDA Matters
MN190 -00135 DalheimerPhasell
MN190 -00136 Walgreens Development
I declare, under penalty of I , that this
account, daim or demand i j at and correct
and that rt 't s b e paid.
Signature of G aimant
DEC 1 4 2C:'
Total Current Billing:
528.00
90.00
108.00
726.00
City of Monticello
November 30, 2010
Page: 1
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
MN190 -00101 General EDA Matters
Through November 30, 2010
For All Legal Services As Follows:
Hours
Amount
11/512010
MNI
Review and compare EDA bylaws - K &G version and
0.70
126.00
adopted version; statutory research.
11/10/2010
SJB
Phone call from /to M Barnett regarding TIF question /uses
0.20
42.00
of Jobz Bill for facade
11/1112010
MNI
Review EDA bylaws as revised by Exec Dir in 2009;
1.60
288.00
review EDA Act requirements; amend bylaws to include
material omitted during 2009 revision.
11/11/2010
MINI
Office conference with S Bubul regarding changes to
0.40
72.00
bylaws; create blackline and explanatory email to M
Barnett regarding same; circulate.
Total Services:
$
528.00
Total Services and Disbursements: $ 528.00
City of Monticello
November 30, 2010
Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 65402
MN190 -00136 Walgreens Development
Through November 30, 2010
For All Legal Services As Follows: Hours Amount
11/212010 MNI Review Insurance provisions of CPD; email to Angela 0.60 108.00
regarding same.
Total Services: $ 108.00
Total Services and Disbursements: $ 108.00
City of Monticello
November 30, 2010
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
MN190 -00135 Dalheimer Phase II
Through November 30, 2010
For All Legal Services As Follows:
111512010 MNI Review email request from M Barnett; office conference
with S Bubul regarding same; revise PDA for Dahlheimer,
Total Services:
Hours
Amount
0,50
90.00
$
90.00
Total Services and Disbursements: $ 90.00
CITY OF MONTICELLO
VOUCHER
Please complete, sign, and submit to Accts Payable by due date for check run.
®
VENDOR: Disb. Ck, Batch Pay by:
Name W01), ��,Q —�V4 , I L yd1�
Address 1
Address 2
City/ST/Zip�d� �) /j�/V <j 63� Statement/
Invoice No:
DISTRIBUTION OF EXPENSE
TOTAL: $0.00
APPROVED BY n / DATE;
voucherAs
Megan Barnett
From:
Wayne Elam [welam @commrealtysolutions.comi
Sent:
Saturday, December 11, 2010 9:15 AM
To:
Megan Barnett
Subject:
RE: Thank You
12/11/10
Megan;
Certainly not a problem.
I have done several trade shows and it is certainly nothing out of the ordinary.
At the trade show they had told me they would bring a receipt to the booth within a couple of hours after
ordering the table. They didn't and I forgot to go back to the exhibitors service booth before I left the show.
I pulled this off of my online credit card statement. This was for a table with the fabric over and around it.
Detailed Information
Transaction Date:
i Posted Date:
Transaction Description:
Charge:
Category:
Merchant Information:
December 08, 2010
December 10, 2010
FREEMAN - DES MOINES 05152655601 IA
$144.31
Other Services
FREEMAN . DES MOINES 05152655601 IA
If you need something different let me know. I can contact Freeman which was the trade show organizer.
Wayne
Wayne Elam
rY®Adwl
co 76322940aE
wan 763 662 2400
r. 763 802 4624
Io)o welam @commreaAysolutions.com
no www.commma4sorutlons.com
3 Highway 55 West, Buffalo, MN 55313
ga-:�
crsCO NS
From: Megan Barnett rmailto:Mggan Barnetttcbci.monticello.mn.usl
Sent: Friday, December 10, 2010 9:29 PM
To: Wayne Elam
Cc: Sandy Suchy
Subject: Thank You
1
➢ Badges are required to enter the Ninth Annual LifeScience Alley Conference and Expo.
➢ Exhibitor will be provided with two (2) booth personnel badges for each 10' x 10' booth. These badges
will grant access to the Exhibit Hall and the Luncheon General Session (Including lunch.)
➢ PLEASE PRINT CAREFULLY.
Exhibit Booth Staff 1:
. 1. 1 .
lillf� � " . r, •.1 r L
• . /. 1 A ,Z
11.11,11 . 1i
58 ..11/01111,►. M
Phone ; :IU3. Al. ZgQb
Exhibit Booth Staff 2:
1.:11 .r Wwo
N 16
City:Wat-P1110 L
Zip'Postal Code:
6,j,3uZ
Country: U-S
Email: j%i'( &
/lr1lil
r! �, �f �i�f :ii/ i
Phone:
Badges will be available for pickup at the registration desk:
• Tuesday December 7, 2010 2:30 p.m. — 7:00 p.m.
• Wednesday December 8, 2010 6:30 a.m. — 5:00 p.m.
➢ No badges will be mailed in advance
➢ $25.00 lost badge service fee
These badges grant access to the Exhibit Hall ONLY and are available with ($65) or without ($35) lunch.
Please visit: htto : / /guest.cvent.com /d /3dciOxn /4W to purchase these additional badges. These will be listed under
Sponsorship /Exhibitor Opportunities.
If questions- please feel free to contact Jennifer Pinsch at 763.548.1303 or Jennifer.Pinsch @eventshows.com
08/18 /2010
MCCOMB GROUP Ltd.
❑ ❑❑ A E 5 N S U L T A N T 9
RETAIL TA I L C
December 10, 2010
Statement #3883
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STATEMENT —RE: EMBRACING DOWNTOWN MONTICELLO STUDY
Previous Balance $ 16,011.44
Payments Received $ 16,011.44
Professional Services
McComb Group, Ltd
Architectural Consortium L.L.C.
Westwood Professional Services
Subtotal
Total
BALANCE DUE
Retainer Balance
Statements for each firm are attached.
$ 59,000.00
$ 5,241.85
603.66
5,270.25
$ 11,115.76
$ 11,115.76
$ 11,115.76
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339 -7000 Fax: (612) 338 -5572
CITY OF MONTICELLO
VOUCHER
Please complete, sign, and submit to Accts Payable by due date far check run.
® Disb. Ck. Batch Pay by:
VENDOR: /
Name //�� /%��4 <�� / it
g,1GS
Address 1 )a2 27��-
Address 2
City /ST /Zip IU1l~KU'R iMs ON .S� statement/
— T Invoice No:
DISTRIBUTION OF EXPENSE
TOTAL: $0,00
APPROVEDBY
voucher.xls
1.11.. o) Ic I I
0:0 MCCOMB GROUP, Ltd.
❑❑❑ RETAIL ECSON S ULTANTS
December 10, 2010
Statement #3883A
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STATEMENT -- RE:
Previous Balance
Payments Received
rofessional.Services
James B. McComb
Linda Ole .
Susan M. Nache
Subtotal
Expenses
Mileage
Reproduction
Computer
Report Production
Subtotal
Total
BALANCE DUE
EMBRACING DOWNTOWN MONTICELLO STUDY ,
7.00
hrs. @ $
275
16.25
hrs. @ $
150
3.75
hrs. @ $
100
8.25 11rs. @ $ 45
4.00
39.10
90.00
371.25
$ 3,079.75
$ 3,079.75
$ 1,925.00
2,437.50
'2'7c nn
$ 4,737.50
$ 50435
$ 5,241.85
$ 5,241.85
Terms: Net ten days. Interest (at a rate of 1,5 percent per month) will be charged on all balances outstanding at the
end of the month.
222 South Ninth Street Suite 380 Minneapolis, Miimesota 55402 • (612) 339 -7000 Fax: (612) 338 -5572
CONSORTIUM L.L.C.
701 %r'I '' ? 4;•e ? Ire L '+,". F6 `-Cif}
December 3, 2010
McComb Group Ltd.
222 South Ninth Street, Suite 380
Minneapolis, MN 55402
Attn: Jim McComb
Project: Downtown Monticello
Architectural Consortium LLC Project # 10- 1068 -01 Invoice #3
Billing Period: November l- November 28, 2010
ARCHITECTURAL DESIGN SERVICES
Basic Services:
Team meeting
Architectural fees: $600.00
Reimbursable Expenses:
Copies $3.40
Sales tax @735 % $.26
TOTAL DUE $ 603.66
Payment due within 30 days of receipt of invoice Thank You.
Payable to: Architectural Consorhumt=
901 North Third Street, Suite 220
Minneapolis, MN 55401
Attn: Kathy Anderson
December 7, 2010
McComb Group, Ltd. Project No: 20101228.00
Attn: James B. McComb Invoice No: 1011103
222 South Ninth Street, Ste. #380
Minneapolis, MN 55439
Professional Services from October 31 2010 to November 27, 2010
Project McComb Group /Monticello /Downtown Revitalization Plan
For Professional Services provided per our agreement.
Task 2020 Project Management & Coordination
Service Hours Rendered
.50
Task 2500 Transportation Data Collection
Service Hours Rendered
2.00
Task 2520 Traffic Issues Analysis
Service Hours Rendered
11.50
Task 2600 Constraint & Opportunities Analysis
Service Hours Rendered
22.95
Amount
87.50
Total this Task $87.50
Amount
350.00
Total this Task $350.00
Amount
1,380.00
Total this Task $1,380.00
Amount
3,320.75
Total this Task $3,320.75
Task 9999 Reimbursable Expenses
ESTABLISHED IN 1972 COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will awme at 125% per month on Invoices over 30 days
Westwood P,ofea W.) Services
INVOICE
7699 An.q,arn -W.
Eden P.1,N, MN 553A4
MAIN 952 - 937.4150
FAX 952- 937 -5822
W
rou apse 1- be8-437-5150
[MAIL wps@me oodps.com
www.westwoadps.wrn
Westwood
December 7, 2010
McComb Group, Ltd. Project No: 20101228.00
Attn: James B. McComb Invoice No: 1011103
222 South Ninth Street, Ste. #380
Minneapolis, MN 55439
Professional Services from October 31 2010 to November 27, 2010
Project McComb Group /Monticello /Downtown Revitalization Plan
For Professional Services provided per our agreement.
Task 2020 Project Management & Coordination
Service Hours Rendered
.50
Task 2500 Transportation Data Collection
Service Hours Rendered
2.00
Task 2520 Traffic Issues Analysis
Service Hours Rendered
11.50
Task 2600 Constraint & Opportunities Analysis
Service Hours Rendered
22.95
Amount
87.50
Total this Task $87.50
Amount
350.00
Total this Task $350.00
Amount
1,380.00
Total this Task $1,380.00
Amount
3,320.75
Total this Task $3,320.75
Task 9999 Reimbursable Expenses
ESTABLISHED IN 1972 COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will awme at 125% per month on Invoices over 30 days
Project McComb Group /Monticello /Downtown
Revitalization Plan
Reimbursable Expenses
Reproductions /Photos
Large Format Color Copies -CEF
Large Format Color Copies -CEF
Large Format Color Copies -CEF
Total Reimbursables
Thank you. 2"4
' 4T
Miles Lindberg
Invoice 1011103
66.00
39.60
26.40
132.00 132.00
Total this Task $132.00
Total this Invoice $5,270.25
ESTABLISHED IN 1972 COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will accrue at 1.25% per month on Invoices over 30 days Page 2
5. REQUEST BY J. EDWIN CHADWICK TO PURCHASE 13.6 ACRES OF
RESIDENTIALLY ZONED PROPERTY LOCATED ADJACENT TO
MONTICELLO BUSINESS CENTER.
A. REFERENCE AND BACKGROUND:
City Staff received a letter from J. Edwin Chadwick on January 3, 2011 asking the
EDA if they have any interest in purchasing property he owns located immediately
adjacent to the Monticello Business Center. The subject property is 13.6 acres in
size and currently zoned residential.
jVQ
SublectP or p 1erty `� ,/% ^°°\ ®°�•""°"`•°"•,
*=am awarwoeo.eania Mx.r�
Mr. Chadwick is asking $250,000 for the subject property. It is his opinion the
parcel is desirable to the City due to its contiguous location to the Monticello
Business Center, a road could be connect from 90a' Street to Dalton Way, adds to
the net useable area to the adjacent wetland parcel, and price and terms are
favorable. Mr. Chadwick has submitted a letter with his request and financing
terms he would consider. In essence, he is stating the EDA could purchase the
property at full asking price or he would be willing to work terms that would
include a $50,000 down payment and financing on the balance over 5 years at a
5.50% interest rate.
B. STAFF RECOMMENDATION:
The EDA is currently sitting on approximately 50 acres of vacant industrial land.
Due to the current economy staff is seeing more inquires for vacant buildings
EDA 1.12.11
versus vacant land. Furthermore, the inquires for new construction have typically
been for parcels that are a contiguous 35 -40 acres in size.
At this time City Staff is recommending the EDA respectfully decline to purchase
the 13.6 acre parcel from Mr. Chadwick for the following reasons:
a. Purchase price is $250,000. County value for 2011 is $191,400.
b. The subject property is guided residential in the Comprehensive Plan.
Neighboring residents may have uneasiness with the City processing a
Comprehensive Plan Amendment and rezoning the property to I -1.
c. While the City may have interest in connecting a road through the subject
property, it is typically possible to achieve this objective through the
platting process whether the City or a private developer owns the parcel.
d. At this time the EDA has ample small lot parcels to offer potential
industrial users. Staff would recommend utilizing purchasing dollars for
larger contiguous pieces in order to accommodate larger users.
e. In light of the Embracing Downtown study, staff anticipates the EDA
may desire to utilize purchasing dollars towards potential
redevelopment/revitalization in downtown in the next few years.
While Staff sincerely sympathizes with Mr. Chadwick's financial situation, staff
does not believe there is an overwhelming reason to purchase the subject property
at this time. Purchasing dollars are limited right now and should be put towards key
parcels that will have a greater impact on potential development or redevelopment.
However, if the EDA does desire to entertain a more reasonable offer, a closed
meeting notice will be posted after the EDA meeting to allow the Developer and
EDA members an opportunity to negotiate a purchase price.
C. ALTERNATIVE ACTION:
1. Motion to decline purchasing a 13.6 acre residentially zoned parcel from J. Edwin
Chadwick.
2. Motion to discuss a reasonable purchase price for J. Edwin Chadwick's 13.6 acre
parcel to be further negotiated at a closed meeting.
3. Table action for further research and discussion.
D. ATTACHMENTS:
1. Letter and attachments from J. Edwin Chadwick
J. EDWIN CHADWICK, LLC llj ;i)zicn(:i¢,c
Land and Farms Blco.ivgmn, Minnesu.a 55 -0-
January 3, 2011
Ms. Megan Barnett
Economic Development Director
City of Monticello
505 Walnut Street, Suite #1
Monticello, MN 55362
Re: Outlot F, Otter Creek Crossings
Dear Ms. Barnett:
Office (952)853- _' -i —b
FAX (952) 336 -0492
I have had a long history of cooperation with the City dating back before the year 2000 that I believe has
been mutually beneficial to both parties. My former partner and I helped facilitate the City's creation of
the industrial park through the acquisition and financing of the purchase so that the City would be able
to minimize its annual cash flows in a way that best served the community at the time. This further
assisted in the creation of the Target and Home Depot retail developments by providing a location for
the relocation of industrial businesses, including the controversial AVR relocation.
Throughout this process, we have tried to be good partners with the City, including (albeit grudgingly)
accepting a highly unusual assessment process for the improvements necessary to develop the industrial
park. This assessment has been a severe burden to our undeveloped land holdings ($714.35 per linear
foot for our 3,236.35 feet of frontage along Chelsea Road) both in terms of the unusual split of costs
between ours and the City's property (79 %/21 %) and the fact that a lot more infrastructure was put in
place than we would normally have put in for our immediate purposes (the sale of the Moon Motors
parcel).
When we began the process with the City, the investment in our commercial land along 1 -94 appeared
to be a reasonably safe investment because our research had indicated that the City would soon be
experiencing retail development pressures and had very little retail land to accommodate that demand.
Our analysis ended up being correct with the addition of Target, Home Depot, the movie theater and
Wal -Mart. However, instead of this demand moving towards our parcel, the City undertook an
extraordinary rezoning process of large amounts of industrial land to commercial zoning. A City that
once had very little vacant retail land soon became flooded with new supply, greatly reducing the value
of our holdings and our ability to bear the industrial park's development assessments.
When Otter Creek Crossings was being platted, the City expressed an interest in acquiring Outlot F as
well, but it was determined that it would need to be a future purchase in order to keep the price of the
City's original land investment within an amount that it felt comfortable budgeting for at the time. At
various times in the years since, the issue of Outlot F has come up again as a possible purchase both due
to the additional land area and also because it assists in preventing overlength cul -de -sacs as
development is extended in this area without the expense of a School Boulevard extension.
With the lack of development activity that has occurred on the 1 -94 frontage property with the recession
and the larger retail supply, in spite of price reductions, changing marketing teams etc. it is becoming
extraordinarily difficult to keep up with the large assessments.
I would like to explore whether there is any level of interest in the City's acquisition of Cutlot F in the
near future.
Attributes of Cutlot F.
• It is immediately contiguous to current City holdings allowing for efficient use of management
and infrastructure.
• The land south of the wetland is far more usable as a road does not have to run along the
wetland. Run one in from 901H
• Provides access to 901h St. and reduces or eliminates the over length cul -de -sac streets and
provides for a second access for fire and safety.
• As part of development agreement, offsite ponding is provided by the City, adds to the net
usable area about 10%
• Price and terms are more favorable than they have ever been, interest is cheap at this time.
If there is interest, I have put together the following set of initial terms for discussion purposes. The
terms assume that I'll be financing the City's purchase in a similar manner to the original industrial park
purchase:
Purchase Price $250,000.00
Down Payment $ 50,000.00
Five years payments as follows:
Parcel Size per the plat
Land Price
Down
Payment
Balance due
13.67
Price per acre
$ 250,000.00 $ 18,288.22
$ (50,000.00)
$ 200,000.00
5.50%
Price per foot.
$ 0.42
Payments
Principal
Interest
Total
Remaining balance
Closing
$ 50,000.00
$
-
$ 50,000.00
$
200,000.00
2012
$ 40,000.00
$
11,000.00
$ 51,000.00
$
160,000.00
2013
$ 40,000.00
$
8,800.00
$ 48,800.00
$
120,000.00
2014
$ 40,000.00
$
6,600.00
$ 46,600.00
$
80,000.00
2015
$ 40,000.00
$
4,400.00
$ 44,400.00
$
40,000.00
2016
$ 40,000.00
$
2,200.00
$ 42,200.00
$
-
I look forward to seeing you all at the January meeting. I will be there to discuss any questions, or feel
free to call me in the meantime. I can be reached at 612 - 965 -9730.
Sincerely,
n E. Chadwick
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Economic Development Director Updates:
IEDC:
The IEDC dedicated their January 4, 2011 meeting to transportation discussions. The
transportation BR &E task force would like to assist the City in continuing to move forward
key transportation projects. The most important initiative is to adopt the draft Transportation
Plan. This plan will help guide the City in priorities and obtaining financing for projects. The
IEDC did adopt a resolution asking the City Council to establish a goal of adopting the draft
Transportation Plan in 2011, authorize preliminary designs for alignment of Fallon Avenue,
and work on completing the necessary steps to move forward discussions on a second River
Crossing. The recommendations by the IEDC will be reviewed by the City Council at the
January 24th or February 1,0h City Council meeting.
City Council:
The City Council approved authorizing WSB to apply for federal funding to improve the
intersection of Highway 25/75 (see attached staff report).
Planning Commission: see attached agenda
BR &E:
Please mark your calendars for January 18, 2011 at noon (during Chamber lunch) at the
Community Center for the BR &E Community Commencement meeting. This is when the
final projects and work plan will be introduced to the business community at large. It will be
very important for EDA members to attend to hear business perspective at large and begin
moving the specific projects forward.
inquiries:
Staff met with a business that is looking at relocating their business within the next year. Staff
will continue to monitor the validity of the business and viability of the project.
Industrial Marketing / Venues:
A direct mailing was distributed the first week of January to the top 50 fastest growing
companies.
Business Communications & Retention Initiatives:
The next Business Insider is anticipated to be distributed at the beginning of January.
Embracing Downtown:
The December 14th Steering Committee meeting was well attended and good information was
presented by the consulting team. McComb group provided preliminary findings from the
market analysis study. It is their opinion Monticello should be marketed as the sub regional
center between Maple Grove and St. Cloud. They further believe downtown should include an
area from I -94 to the river. The exact boundary line is still being explored. McComb group
also stated that the "duck/run' ' situation that is currently happening in downtown needs to be
addressed at some point in order to engage a more unified downtown.
Future Meeting Dates:
1. BR &E: Community Commencement meeting January 18, 2011 at noon
IEDC December 7, 2010
City Council Agenda: 12/13/10
11. Consideration of authorizing City staff to apply for Federal funding to reconstruct
the intersection of TH 25 and CSAH 75. (BW /JO)
A. REFERENCE AND BACKGROUND:
The City of Monticello, as a State Aid City, participates in the distribution of federal
funds for transportation projects. This is a competitive process that we have been
awarded funds previously for on the CSAH 75 pathway project and the pedestrian
overpass over I -94. We have not had a roadway project that would score well in the past
and have not had any recent pathway projects that we felt were worthy, so it has been
some time since we have received any funding. Therefore, we are in a very good position
to be selected for a project in the near future.
With the recent opportunity to reconstruct the NE quadrant of the TH 25 / CSAH 75
intersection, we have completed some planning for the ultimate configuration of the
intersection. We believe that the ultimate build -out project has the right combination of
County and Mn/DOT support, as well as the necessary congestion/safety and other
benefits to show the local and regional benefits for utilizing federal funding.
Construction of this intersection will greatly improve the accessability of the downtown
area and will allow better movement through downtown for regional traffic. This project,
combined with the reconstruction of the TH 25 /CR 11 intersection in 2011, would
significantly reduce congestion on TH 25.
These intersection improvements are shown on the attached layout, which is the same
layout approved by the Council for submission to the Minnesota Department of
Transportation for their review and approval several months ago, along with the
accompanying Intersection Control Evaluation (ICE) Report. To date we have not heard
from NWDOT regarding their progress on reviewing the Staff Approved Layout and/or
ICE Report, but we anticipate they will approve these items as submitted with few
comments, if any.
WSB has estimated costs for constructing the complete intersection improvements as
follows:
Construction Costs = $2,050,000
Indirect Costs (30 %) = $ 615,000
Total Project Cost = $2,665,000
The estimated construction costs include the removal of $350,000 from the original total
estimated cost of the intersection improvements ($2,400,000) since these improvements
are now being completed with the NE Quadrant Improvements project. Also, the above
costs do not account for any right -of -way acquisition, which will primarily involve the
SE intersection area. Because the funding is in 2014 dollars, we have increased the costs
assuming a 2014 construction date. It is possible to advance the funding to complete the
project sooner.
City Council Agenda: 12/13/10
The estimated project cost split between TH 25 and CSAH 75 is $1,465,750 and
$1,199,250, respectively. However, due to the 80% federal funding of the construction
cost, the total project cost could be reduced by around $1.6M dollars, which will make
the cost splits much more acceptable.
If the City is successful in securing Federal funding for these improvements, the funding
split would be 80% Federal funding with a 20% local match. Because Federal funding is
involved the City would be required to complete an Environmental Assessment (EA) for
the project, which is estimated to cost between $15,000 and $20,000. In addition, only
construction costs are eligible for Federal funding so all design work, any necessary
environmental documentation, and all costs associated with right -of -way acquisition
would be the City's responsibility to cover, outside of the 20% local match. If the
Council authorizes this application, a complete estimate, including these costs, will be
prepared.
There are two funding applications that Mn/DOT suggested be completed for review by
the Area Transportation Partnership (ATP) Technical Advisory Committee (TAC).
1. The HES application worksheet looks primarily at the safety of the intersection
and how the improvements would provide benefit by improving safety.
2. The Federal urban application worksheet looks primarily at the capacity and
mobility benefits of the improvements on the intersecting transportation
corridors, in this case TH 25 and CSAH 75.
Both application worksheets, which are attached as supporting data, are due to Mn/DOT
by January 14, 2011. They would then be reviewed against all other applications by the
ATP TAC in early 2011, after which they would be ranked accordingly.
The services of WSB and Associates will be required to fill out both applications, and
they have estimated their costs for preparing the applications, including any necessary
calculations and attachments, to be $4,600. Both application worksheets will be provided
to the City Engineer for review by January 7, 2011 to allow for submittal to WDOT by
the January 14th deadline.
Regarding any potential contributions from Mn /DOT or Wright County, we have not yet
had the chance to discuss this project with them in any detail, primarily because we have
not yet been approved for funding. We are unsure of any additional funding from
Mn/DOT, but since they would likely receive a benefit we would request funding from
them. We would work with Wright County on their cost participation for the 20% local
match.
The timing of this project would work well with the Embracing Downtown planning
effort and expected follow -up efforts to attract businesses downtown. Using the detailed
market data and connections to the private sector touted by the McCombs Group, it
City Council Agenda: 12/13/10
would be our hope to attract a business to the SE quadrant block in conjunction with the
downtown redevelopment planning effort.
The proposed plans to improve this intersection could prove useful as the City attempts to
find developers and users for the downtown. Also, TIF revenue from such any
redevelopment could help to pay for the land acquisition needed for the expansion of the
right of way that will be needed with the project. Please note that there may be potential
to use excess TIF funds already available to pay for land acquisition needs in the event a
new project is not forthcoming. This option will need to be explored with the Economic
Development Authority. In other words, the timing of the full reconstruction of this
intersection using Federal funds could dovetail well with downtown redevelopment
efforts.
Al. Budget Impact: The total estimated cost for WSB and Associates to prepare the
application worksheets as noted above is $4,600.
A2. Staff Workload Impact: Staff workload impacts would be minimal. A minimal
amount of time would be required for the City Engineer to review and provide
any input on the applications prepared by WSB and Associates.
B. ALTERNATIVE ACTIONS:
1. Motion to authorize WSB to assist staff in applying for Federal funding for
reconstructing the intersection of TH 25 and CSAH 75.
2. Motion to deny authorization to apply for Federal funding for reconstructing the
intersection of TH 25 and CSAH 75 at this time.
C. STAFF RECOMMENDATION:
City staff recommends approving Alternative Action No. 1.
Securing Federal funding for 80% of the construction costs for this project would allow
the City to reconstruct this intersection sooner rather than later, thereby promoting the
continued redevelopment of our core downtown area. By reducing traffic congestion on
TH 25 and CSAH 75, the City will have addressed a major deterrent for many customers
of our downtown businesses. Furthermore, this improvement project and associated
timing coordinates nicely with the associated downtown redevelopment planning effort.
D. SUPPORTING DATA:
Figure 2 — TH 25 @ CSAH 75 Intersection Improvements
HES Worksheet
Project Ranking Worksheet