IEDC Minutes 06-05-2012MINUTES
MONTICELLO INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, June 5, 2012 - 7:00 a.m., Boom Island Room
MEMBERS PRESENT: Chair Luke Dahlheimer, Vice Chair Joni Pawelk, Rich Harris,
Patrick Thompson, Bill Tapper, Dick Van Allen, Zona Gutzwiller,
Wes Olson, Don Roberts
MEMBERS ABSENT: Dan Olson, Wayne Elam, Jim Johnson, Tim O'Connor, Chris
Kruse
LIASIONS PRESENT: Glen Posusta, City Council
LIAISONS ABSENT: Sandy Suchy, Chamber
Clint Herbst, Mayor
STAFF PRESENT: Economic Development Director Megan Barnett - Livgard, City
Administrator Jeff O'Neill
1. Call to Order
2.
3.
Chair Luke Dahlheimer called the meeting to order at 7:00 a.m.
Approve Minutes
BILL TAPPER MOVED TO APPROVE THE MAY 1, 2012 IEDC MINUTES.
PATRICK THOMPSON SECONDED THE SECONDED THE MOTION. MOTION
CARRIED 9 -0.
Consideration of adding items to the Agenda None
4. Reports
a) Economic Development
• Downtown Redevelopment - The EDA purchased the two Montgomery Farms
buildings located at the corner of Highway 25 and Broadway Street. Staff is working
through leaseholder agreements for five businesses and two residences. Relocation
specialist Dan Wilson is working to help residential and commercial tenants
transition into new locations. Dr. Wong of Lakeland Dental purchased the old
Monticello Times Building. Site improvements, remodeling, and moving the
business will take approximately 6 months.
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Spec CC /EDA Joint meeting - There will be a special joint City Council /EDA
meeting on Wednesday, June 20th at 4:30 pm. Charlie Pfeffer will discuss EDA
Protocol/ Pfeffer Company opportunities. Jim McComb will provide an update on
implementing downtown issues such as exploring a parking lot fee structure, and the
Ace Hardware project.
EDA Agenda - The regular EDA agenda will include an update to the TIF
Management Plan. The EDA will be asked to approve the use of TIF 1 -5 funds for a
beautification project at TH 25 and 7th Street. $480,000 in TIF funding must be
expended or returned to Wright County. Staff recommended utilizing the funds for
site improvements involved in adding a right turn lane at that intersection,
improving landscaping and adding monument signs. This project that had been part
of the 2014 Transportation plan.
Planning Commission — The Planning Commission and City Council approved a
conditional use permit allowing an indoor athletic facility to occupy a portion of the
Monticello Workforce Center building. The Planning Commission is also being
asked to approve an interim use permit for school district's Alternative Learning
Program.
• Fred's Auto — The EDA authorized Braun Intertec to complete a Phase II
environmental assessment of the property known as Fred's Auto. The EDA is
expected to close on the sale of the property at the beginning of July.
Inquiries — Staff responded to two inquiries for data center requests and is working
with a broker representing a manufacturing company that is interested in the
Monticello area.
b) City Council
Finance Director Position - Jeff O'Neil reported that Tom Kelly accepted a job
with White Bear Township and noted he would be greatly missed. Staff will work
to fill the Finance Director position.
5. FiberNet Monticello Transition
Jeff O'Neill noted that a number of changes would be required to enable FiberNet to
become financially viable. He indicated that City Council had directed staff to identify
additional revenue sources due to the financial stress resulting from the lawsuit, the
changing telecommunications industry. Gigabit2, funded by a company that develops and
designs fiber optic systems, indicated an interest and an ability to generate investment in
the system. At this same time, HBC, FiberNet's current management firm, provided a
90 -day notice of termination. Service will not be interrupted.
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Gigabit2 then presented a proposal to operate and grow the system and share in the
potential long -term revenue. The City is still negotiating a potential contract. The goals
would be to cash,flow operations by end of the year, create a new growth model, refinance
debt and build FiberNet to sustainability. They expect to provide the same customer
service with much lower cost.
Staff have been working with the Trustee's attorney to refinance and to determine how new
management might integrate with bondholder needs. Requirements state that net revenue
shall be used to pay off the bond. Because, at this time there is no net revenue, the City is
not obligated to make payment on the debt and, as a result, decided not to pay the $33,000
per month on the debt as of June 1St. The City had been paying 7% interest and it was
unsustainable. Wells Fargo will appoint an independent review expert to oversee the
transition and protect the City and bondholders.
There was some discussion about options for offering FiberNet service beyond City limits.
The City of Big Lake is interested in obtaining service. State laws limit the ability to sell
phone service to folks out of city.
A special City Council workshop is scheduled for Monday, June 11th at 5:00 p.m. to
discuss FiberNet status.
6. Monticello Business Attraction Strategies
As a result of discussions with Economic Development professionals, staff pointed out the
importance of. a strong and active BR &E program, a 30 -day planning and building
process, access to local manufacturers buyer and seller SIC codes, and a 3 -5 year vision of
what the business community might look like in the future. The IEDC was asked to briefly
consider several strategies for attracting new industries to Monticello.
Staff noted that the City competed fairly well in processing permits but may look to tweak
the process in the fall. A review of industries served by businesses in the community may
help to broaden the scope when trying to attract new businesses. Greater MSP will help
make such contacts. Rich Harris agreed to meet with staff to share SIC codes in an effort to
address this issue. Staff suggested that a broad discussion about vision may provide
direction for targeting a local economic development presence at relevant events and create
marketing which invites attention.
Feedback from the IEDC indicated that it might be useful to review the results of the
BR &E findings and that the current practice of touring local businesses may provide an
opportunity to address some of these issues. Staff had suggested working with SIC codes
and then considering sectors, companies, reviewing the Comprehensive Plan direction and
land use opportunities at the August meeting.
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7. Transportation Update by Bruce Westby
Beautification Project - City Engineer Bruce Westby responded to specific questions about
the proposed beautification project at TH 25 and 7th Street. The proposal is to leave the
fence encircling the cemetery in place and build a new retaining wall 3 -4 feet outside of the
fence. The retaining wall would be two tiered by 7th Street on the south end of the block by
TH 25. Westby indicated that it would make sense to add a right turn lane on 7th Street at
the same time to open up the sight lines. Including this component of the street
improvements would save overall costs and be less disjointed than addressing it as part of
the 2014 Street Reconstruction project. Further work on 7th Street between TH 25 and
Cedar would be completed as part of that later project.
Fallon Avenue Overpass - Staff continue to talk with property owners and answer
questions about the three alignment options recommended by the Transportation Advisory
Committee and approved by City Council. The previous agreement related to the property
owned by St. Henry's Church must be clearly understood before moving forward. Westby
stated that the project could be approved later this year. The City would need to purchase
right -of -way once the preferred alignment is identified. Feedback has been fairly positive
but involves concerns related to the cost to property owners. There will be property
assessments involved in funding the project.
Second River Crossing — Staff expect to schedule a meeting with townships, cities, state,
and the surrounding two counties by early July to address the issue of a second river
crossing. Brett Weiss from WSB participated in a Washington D.C. fly in to share
information about Monticello's transportation funding needs with federal coalitions. The
project is estimated to cost $20 -30 million.
TH 25 1CSAH 75 Intersection — Westby hopes to receive $200- 300,000 in Local Initiative
funding through MnDot for the TH 25 /CSAH 75 intersection project. He outlined the
components and estimated cost of $1.65 million to complete the project. The project
includes improvements to the intersection and one block north and south of CSAH 75 on
TH 25 and a block and half of TH 25 along CSAH 75. Dual left turn lanes and extra
capacity for turn lane lengths will be added on either side of CSAH 75. A wide median will
be constructed at northbound TH 25 onto westbound TH 25. The application for 2016
federal funding was denied this spring. Funding is likely to be approved for 2017. $4.3
million in DEED grant funding has become available for redevelopment projects.
Applications are being accepted through June 261h Wright County will postpone grading
along the portion of the road they maintain and possibly contribute their regular
maintenance cost to the project.
8. Adiournment
RICH HARRIS MOVED TO ADJOURN THE MEETING AT 8:22 AM. PAT
THOMPSON SECONDED THE MOTION. MOTION CARRIED 9 -0.
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Recorder: Kerry T. Burri O"'D
Approved: August 7, 201
Attest: VorA- aA
egan a ivgard, Econo De e o ment Director