EDA Agenda 01-11-2012EDA MEETING
Wednesday, January 11, 2012
6:00 p.m.
Mississippi Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie,
Bruce Hamond, and Council members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett - Livgard, Finance Director Tom Kelly
1. Call to Order
2. Approve Meeting Minutes:
a. December 14, 2011 regular EDA meeting (to be emailed Monday)
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Consideration of approving allocating marketing dollars for a 2012 MNCAR Sponsorship
6. Discuss authorizing appropriate consultants to assist in implementing the Embracing
Downtown Plan
7. Director Report (verbal)
a. Downtown Fund
b. New business start up fiind
c. City branding initiative
8. Adjourn
5. Consideration of approving allocating marketing dollars for a 2012 MNCAR Sponsorship
A. REFERENCE AND BACKGROUND:
The 2012 EDA marketing budget is $20,000. Marketing dollars are typically utilized for print and
electronic marketing messages, applicable tradeshows and conference, and any additional events
that help Monticello get in front of key decision makers.
Staff recently became aware of a sponsorship opportunity through MNCAR. As the EDA may
remember MNCAR is the MN Commercial Association of Realtors. This association allows
Monticello to actively network and discuss opportunities with commercial brokers. MNCAR has
monthly lunch programs, annual Expo and Golf events, monthly email newsletters, and several
additional educational and networking opportunities throughout the year. The proposed
sponsorship package will allow Monticello consistent and continual exposure to commercial
brokers that are well connected to decision makers. The sponsorship package provides many
robust opportunities for the price requested.
B. STAFF RECOMMENDATION:
City Staff recommends allocating $3,500 dollars of the 2012 marketing budget to the 2012
MNCAR Sponsorship Package. Allocating marketing dollars to events and opportunities that can
further expose Monticello to brokers and end users is well worth the expense.
C. ALTERNATIVE ACTIONS:
1. Motion to approve allocating $3,500 of the 2012 EDA marketing budget to be a 2012
MNCAR Sponsorship.
2. Motion to deny allocating marketing dollars towards the 2012 MNCAR sponsorship.
3. Motion to table action for further research and discussion.
D. SUPPORTING DATA:
Information regarding the 2012 MNCAR Sponsorship Package
=:$:� �, 11 ZZZIP
MNCAR
MNCAR sponsorship is a unique chance to drive commercial real estate brokers to your business,
while demonstrating your support of the Minnesota Commercial Association of Real Estate.
Your $3500 annual sponsorship package includes:
• A rotating banner ad on the MNCAR homepage to advertise a property, business, etc.
We received over 19,300 hits on our homepage In the past monthl
• Company logo at the top of the MNCAR homepage, www.mncor.org.
Average time spent on our homepage is over 3 minutes and our homepage visits are up by 1571
• Logo on the Sponsor Page of the MNCAR website, with a link to your website or property.
• Logo on the front cover of the MNCAR E- newsletter, distributed to more than 1600 readers monthly.
• Company name on a large banner at our monthly meetings.
• Recognition of your sponsorship from our event emcee at our monthly meetings.
• Four (4) complimentary tickets total to attend monthly programs.
• Annual sponsors receive a 12 -month "Featured Property" ad space on the MNCAR homepage, valued at $3000.
• Annual sponsors receive the chance to host an event for MNCAR members, subject to MNCAR approval.
• First pick for MNCAR Expo booth location and Annual Golf Outing Sponsor Holes if you choose to participate in
those two events.
If you have questions or would like further information, please contact Terri at terri @mncar.org or 952.908.1784.
❑ Yes, I would like to sponsor MNCAR in 20121
Contact Name: Company N
Address: City:
Zip:
Please send the MNCAR E- newsletter and Event Invites to these additional people in my company:
Name
2.
3.
Email
Please indicate if you will have Featured Properties to display on the MNCAR website.
❑ Yes E] No
Enclosed is my $3500 sponsorship investment to the Minnesota Commercial Association of Real Estate.
❑ Check
❑ VISA, Master Card, Discover, AMEX
Name on card Signature
Exp. Date
Other Visibility Opportunities for Annual Sponsors in 2012
MNCAR Golf Outing, Hole Sponsor; June, 2012 ........ ..........................$1200
MNCAR Expo Exhibitor; October 2012 ..................... ..........................$1000
MNCAR Emerging Brokers' Networking Events; Inquire about dates and pricing
6. Discuss authorizing appropriate consultants to assist in implementing the Embracing
Downtown Plan:
A. REFERENCE AND BACKGROUND:
Staff has been working with Jim McComb and Jana King to detennine the best approach to
continue to solicit their services to most efficiently and effectively implement the
Embracing Downtown Plan. Jim McComb will be present at the meeting to review his
proposals for continued work. Jana King will be sending a proposal to work with the newly
created Leadership Team (creation is in progress) and overall marketing of downtown by
Tuesday, January 10, 2012. Staff will email the proposal to the EDA upon receipt.
Staff would like to have an open discussion with the EDA regarding continued
involvement of Jim McComb, Jana King, and existing consultants. Redevelopment is often
times complex and requires additional steps, however it is important to
B. STAFF RECOMMENDATION:
Recommendation will be based on discussion at the meeting.
C. ALTERNATIVE ACTION:
1. Motion to approve entering into a contract with Jim McComb at a not to exceed cost of
and with Jana King at a not to exceed cost of
2. Motion to deny entering into a contract with Jim McComb and Jana King.
3. Motion to table action for further research and discussion.
D. SUPPORTING DATA:
1. Draft proposals from Jim McComb
2. Proposal from Jana King will be emailed
EDA 1.11.11
♦ OTIIER BUSINESS PROSPECTS
Contact and prepare proposal for a department store and grocery store to locate in downtown.
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339 -7000 Fax: (612) 338 -5572
Ms. Megan Barnett- Livgard
December 8, 2011
Page 2
• Work with potential store to determine appropriate location including pad site, parking,
loading requirements, and other store needs. Identify City actions that will be necessary
to accommodate a new store.
Determine potential assessed value and initial tax increments, building pad site and
parking license land proceeds for a new store.
• Participate in building and site plan design with owner, architects, and City.
OTHER ACTIVITIES
• Meetings and phone conferences with the EDA and/or its members and City staff, as
needed or directed.
• Respond to questions by property owners whose property has been identified for potential
acquisition to address to questions and concerns.
These services will be provided for three months beginning December 12, 2011 through March
15, 2011 This agreement can be extended by mutual agreement of the EDA and McComb
Group, Ltd.
Professional services described above will be provided for $15,000 (averaging $5,000 per
month), plus out -of- pocket expenses, which are to be reimbursed based on actual cost. The
budget is based on our normal hourly billing rates of $275 for principals, $200 -$275 for
executive associates, $150 for senior associates, $125 for associates, and $75 -$100 for
consultants.
Invoices for professional services and expenses will be rendered at mid xrnonth and month -end as
our work progresses. Standard biding terms are net ten days. A finance charge of 1.5 percent
will be charged on all unpaid balances outstanding more than 30 days.
We appreciate being considered for this engagement and look forward to hearing from you soon.
If you have any questions concerning the engagement, please call me at (612) 339 -7000.
Accepted By: _ McComb Group, Ltd.
Company:
Title:
James B. McComb
Date: President
DM o MCCOMB GROUP, Ltd.
❑O❑ RETAA IL ECSO NSULTA NNTS
`December k 2011
Ms. Meganl3arnett- Livgard
Economic Development Director
CITY OF;MONTICELLO -
505 Walnut Street
Monticello, Minnesota 55362
Dear Megan:
In response:to your request, we have prepared an engagement letter to conduct financial analysis
for negotiating development agreements for new stores to locate in downtown.
The objective of the financial analysis.is to determine the estimated City, of Monticello costs to
provide a site, parking, and common area improvements for a new store. These costs. are site
specific, based on design and below surface conditions, and can vary from site to site. Estimate
the revenues that can be collected. for building pad sites, parking license fees, and any other
potential revenues.
In negotiating a development agreement, it is important to have the best cost and revenue
estimates that can be obtained.
WORKPROGRAM
The work program outlined below summarizes financial feasibility work tasks to be conducted
for a new development in downtown.
♦ Site Improvement Costs
Prepare ,a preliminary estimate of the City of Monticello site improvement costs
associated with the proposed store. These estimates will be prepared based on hard line
site plan prepared by an architect. These costs are likely to include hard and soft costs
and financing. Hard construction costs include, but are not limited to: demolition, site
underground infrastructure, parking, sidewalks, curbs, landscaping, stripping, irrigation,
and other costs. Soft costs include design, engineering, professional services, and
contingency.
♦ Development Sources and Uses
Project related revenues and expenses will be estimated including, but not limited to:
acquisition, relocation, site improvement costs, and other project costs. Revenues
include, but are not limited to: tax increments, pad site sales, parking license fees for land
and construction, and other potential revenues.
222 South Ninth Street Suite 380 Mimieapolis, Minnesota 55402 • (612) 339 -7000 Fax: (612) 338 -5572
Ms. Megan Barnett- Livgard
December 8, 2011
Page 2
♦ Annual Sources and Uses
Prepare sources and uses statement containing all revenues: and expenses for a 10 -year
period related to the proposed project. This would include estimated :tax increments,
deferred parking license fees (if any), CAM charges, and CAM costs.
♦ Client/Developer Meetings
eEtings i - devefiper- associated- withthis- taslc- arc- mtimatEdat 16-to 24
hours. Additional meetings will be billed at our normal hourly rates plus expenses..
The results of our work will be documented in technical memorandums designed to meet client
needs. The report will contain appropriate explanations of our principal findings, conclusions,
and recommendations. .
QUALIFICATIONS AND EXPERIENCE
McComb Group, Ltd, is a full- service retail and real estate consulting firm specializing in market
research and financial feasibility. The fnrn has extensive experience in the retail industry and
has conducted market research. for retail stores and shopping centers of all types including
regional.malls, community centers, and specialty centers,
McComb Group, Ltd. has a team that is qualified to conduct the research described in this
proposal. McComb. Group's professional staff associated with this engagement includes the
following:,
♦ James B. McComb, President, founded the predecessor of McComb Group in 1974
following six years as a member of the corporate staff with Dayton Hudson Corporation.
His experiences at Dayton Hudson and daily association with merchants and shopping
center developers provided the impetus for McComb Group's approach to shopping
center and retail market research and financial feasibility, which includes strong elements
of design and merchandise sensitivities. The firm's approach to shopping center research
and marketing has undergone continuous development and refinement over the past 37
years.
♦ Fred Katter, Executive Associate, has 30 years of real estate development experience
including single family, multi - family and senior housing residential including for -rent
and for -sale, office, industrial, and retail stores and shopping centers. He is experienced
with site selection and acquisition, architectural selection and design supervision, general
contractor selection and contract negotiations with subcontractors, construction
supervision, environmental remediation, and construction, mortgage, and equity
financing, During his career, Mr. Katter has developed the following: 4,077 housing
units; 600 apartment units; conversion of 434 rental apartments to condominiums;
360,000 square feet of industrial space; 300,000 square feet of office space; and two
hotels with a total of 725 rooms. He also directed work outs for developments with over
2,789 housing units located in several Minnesota, and Southwest and Midwest markets.
Served as Owner's Representative for developments of 534,000 square feet of
supermarket space and 179 units of condominiums.
Ms. Megan Barnett- Livgard
December 8, 2011
Page 3
Linda Oie, Senior Associate, has 23 years experience conducting market, demographic,
and consumer research. Ms. Oie manages the firm's geographic information systems
(GIS) and demographic databases using a variety of computer platforms and proprietary
software.
Prior to joining McComb Group, Ms. Oie was employed as Marketplace Information
Manager at SuperValu, Inc. Her responsibilities included conducting strategic consumer -
based- analysis -of- existing - and- nospective�-supermarkets,—profrling- SuperValu- customers,
and delineating trade areas for existing and proposed stores.
Susan Nache, Consultant, has 12 years of experience and performs market research,
demographic analysis, and consumer research tasks, Ms. Nache conducts consumer
research analysis.and cross- tabulation on McComb Group's survey processing software;
and utilizes McComb Group software programs for financial feasibility and statistical
analysis.
Mr, McComb will be responsible for managing and directing the overall research program and
will participate directly in findings and conclusions. Individual work tasks will be assigned to
personnel within the firm based on qualifications and experience.
Lan-118-W-1
The budget for the work program and work products described in this proposal depend on the
complexity of the proposed development and are likely to range from costs shown below.
Professional Services
Budget
Site Bnprovement Costs
$ 8,000 - $
12,500
Development Sources and Uses
3,000 -
4,500
Annual Sources and Uses
3,000 -
5,000
Client /Developer Meetings
4,400 -
6,600
Total Professional Services
$ 18,400 - $
28,600
Expenses (Estimated)
Mileage $ 600
Computer & Software 750
Report Production 1,200
Reproduction 100
Miscellaneous 50
Total Expenses $ 2,700
TOTAL BUDGET $ 21,100 - $ 31,300
The professional fees for the services outlined in this proposal range from $18,400 to $28,600.
Expenses, estimated at $2,750, are to be reimbursed based on actual cost. The budget is based
on the amount of time required to perform the work tasks and our normal hourly billing rates of
$275 for principals, $200 -$275 for executive associates, $150 for senior associates, $125 for
associates, and $75 -$100 for consultants.
Ms. Megan Barnett - Livgard
December 8, 2011
Page 4
Invoices for professional services and expenses wilt be rendered at mid -month and month -end as
our work progresses. Standard billing terms are net ten days. A finance charge of 1.5 percent
will be charged on all unpaid balances outstanding more than 30 days,
This proposal was prepared with the understanding that the results of our work will be used by
the client to determine the costs and revenues associated with new developments in downtown.
Our report will be prepared for that purpose and will be subject to the following qualifications:
m Our analysis will not ascertain the legal and regulatory requirements applicable to this
project, including zoning, other state, and local government regulations, permits, and
licenses, No effort will be made to determine the possible effect on the proposed project
of present or future federal, state, or local legislation, or any environmental or ecological
matters.
o Our report and analysis will be based on estimates, assumptions and other information
developed from research of the market, knowledge of the industry and discussions with
the client. Sonic assumptions inevitably will not materialize and unanticipated events
and circumstances may occur; therefore, actual results achieved will vary from the
analysis.
e Our analysis will not evaluate management's effectiveness or be responsible for future
marketing efforts and other management actions upon which actual results are dependent.
Our report will be intended solely for the purpose described above and should not be used
for any other purpose without our prier written permission. Permission for other use of
the report will be granted only upon meeting company standards for the proposed use,
These qualifications will be included in our final report. If the report is used for purposes other
than specified above, we reserve the right to review the materials for proper use of our work,
ACCEPTANCE PROCEDURE
To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us
together with your check for the retainer as authorization to proceed with this engagement.
We appreciate the opportunity to submit this proposal and look forward to hearing from you
soon. If you have any questions concerning the proposal, please call me at (612) 339 -7000.
Accepted By: McComb Group, Ltd.
Company:
Title:
James B. McComb
Date: President