EDA Minutes 04-12-2017 (Workshop Meeting)MINUTES
WORKSHOP- ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 12, 2017 — 4:30 p.m.
Academy Room, Monticello Community Center
Present: Bill Demeules, Steve Johnson, Jon Morphew, Lloyd Hilgart, and Jim Davidson
Absent: Bill Tapper and Tracy Hinz
Staff. Jeff O'Neill, Angela Schumann, Jim Thares, Jacob Thunander, Shibani Bisson, and
Wayne Oberg
1. Call to Order
Bill Demeules called the meeting to order at 4:30 p.m.
2. Roll Call
3. Introduction and Purpose of Meeting
Angela Schumann stated that the purpose of the meeting was to help the EDA provide
staff with direction on industrial land availability. Schumann noted that the City has
about 50 acres of available industrial land in the I-1 (Light Industrial) and I-2 (Heavy
Industrial) Districts, with the addition of 57 acres of land zoned as the IBC (Industrial and
Business Campus) District. She also added that only 5 acres of all industrial land allows
for outdoor storage. This is due to the covenants set up in Otter Creek and the Zoning
Ordinance that do not allow outdoor storage in the IBC District.
Schumann stated that there are about 200 vacant acres "guided industrial". In Otter
Creek, there is less than 40 acres of developable land. There are a number of site
constraints such as power lines and topography issues and the adopted covenants.
Schumann reminded that the EDA's established market value based on the cost to acquire
and establish infrastructure at Otter Creek is $2.41 a square foot.
Jim Davidson expressed disappointment in having Groebner, Inc. relocate due to
restrictions on outdoor storage. He asked if it was typical for cities to be low on industrial
land especially for outdoor storage. Schumann responded that the City didn't have the
right dimensions for industrial land that could accommodate outdoor storage. The City
allows outdoor storage in the I-1 and I-2 Districts and new standards are being proposed
to the EDA in the coming month. Schumann noted the comprehensive plan's main goals
of attracting and retaining living wage jobs and increasing tax base; do not further these
areas with having outdoor storage. She stated that the City's trying to balance the amount
of outdoor storage relative to the appropriate building size and lot area. Bill Demueles
added that MPCA doesn't want outdoor storage. Jeff O'Neill also said that the current
zoning ordinance would have allowed Groebner, Inc. to locate in an industrial zoned
district, but because Otter Creek Business Park has covenants in place that restrict
outdoor storage, it was not possible. Schumann added that there are available lots for
industrial development, but there are other factors such as lot dimensions, location, and
property owner's willingness to sell that could hinder development.
O'Neill also stated that they could consider loosening the standards for outdoor storage,
but may inadvertently discourage businesses that don't want outdoor storage nearby from
locating. He encouraged looking at other areas of the ordinance including screening, if
changing the standards.
4. Review Inventory of Industrial Land
Angela Schumann reviewed the zoning map and pointed out areas of the City where
industrial land is located or could be located.
5. Review factors impacting industrial development
a. Marketplace for private industrial development
b. Land Values
6. Review Possible advantageous industrial expansion areas
Angela Schumann stated that the area the EDA should focus on industrial development is
in Otter Creek Business Park, the Spike area, and the Chadwick/Bowers parcels.
7. Spike Property - characteristics/features
Angela Schumann indicated that there are four parcels that represent approximately 106
acres and are outside the current City limits. They are adjacent to Otter Creek Business
Park, Bertram Chain of Lakes Regional Park, and a substation. The current Wright
County Market Rate Value is $686,000.
Schumann stated that Otter Creek is encumbered by a number of things including
wetlands, topography, and one of the most prominent is the power lines. She stated the
power lines do cross the Spike parcels and that there is development limitations
underneath these areas that will need to be better understood.
Schumann noted that part of the Spike parcels are guided commercial and if the EDA
would like to see that area completely industrial, a Comprehensive Plan amendment
would be required. Thares also added there is a pipeline that also has limitations to
development in these areas.
8. Expenses and forecasts
a. Phase 1 ESA, Feasibility Report, Appraisal, Stor mwater Plan, Platting
Utilities and Streets
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Jim Thares encouraged the EDA to complete and/or understand a Phase 1 ESA,
Feasibility Report, appraisal, stormwater plan, platting utilities and streets prior to
the purchase of new industrial land.
Bill Demueles asked if the City Engineer could complete these studies or if it
would need to be hired out.
Angela Schumann stated that attorneys always recommend having an appraisal.
Schumann also added these reports and studies help to understand what there is
for available developable land and any encumbrances prior to purchase.
The EDA discussed the advantages (such as financial assistance) of purchasing
land from the City rather than private developers. Bisson added that the
approximate cost of extending infrastructure and utilities including water, sewer,
and streets is $1.00 per square foot.
Schumann stated that discussions needed to occur regarding if the City should
expand Bertram Chain of Lakes Regional Park and what should be included in the
expansion. The cost to further develop the park should also be investigated. The
EDA discussed their vision of the type of development that should occur
surrounding the park.
Morphew asked if the owners are willing to sell the parcels. Thares confirmed.
Demueles reiterated that there is private land available for industrial development
within the City that developers could apply for public financial assistance, rather
than having the EDA purchase land and then sell to a developer.
Lloyd Hilgart asked what the typical timeframe was for relocating a business.
Schumann responded that there are a lot of moving pieces and it depends on
where the developer purchased the land. If a business owner purchases land inside
the City limits development can occur quickly. Contrary, more time is involved in
annexing new area to the City.
9. Finance Discussion
a. Available Resources
Thares stated that the available cash and investments is 1.9 million dollars
(excluding land values), but that the goal is to also complete some work in the
downtown following the Small Area Study.
b. City of Monticello Participation (Public Works Facility?)
Jeff O'Neill stated that there had been preliminary, inforinal discussion to have a
future Public Works facility located behind the substation in Otter Creek Business
Park. A formal discussion and recommendation to City Council has not been set.
O'Neill discussed some of the benefits to having the facility located there. He
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added that this project would need to be completed in the next couple years due to
the growth of the City over the years.
Jim Davidson asked what size they needed for a new building. O'Neill stated that
staff toured a few other city's Public Works buildings, but that they were unsure
at this time. He also added that during the City Council's goal setting meetings, it
was suggested that a comprehensive facility needs study occur. Building stock
including how current buildings are and could be used/sold and future needs
would be incorporated into a plan that could guide the next 30 years.
c. Option Agreement — Gradual Takedown — Omitted
Jeff O'Neill asked if there were concerns with generating residential development near
the Bertram Chain of Lakes Park. Demueles stated that they have to determine what the
highest and best use of the property. Schumann added that the EDA should keep in mind
the realignment of Chelsea Road with Dalton Avenue would cause much less industrial
land development and more residential development. Steve Johnson stated that the City
should then pursue other options to increase industrial land development as that type of
development brings in more taxes than residential.
Angela Schumann noted that at staff site review, it was determined that a few areas of the
Comprehensive Plan needed to be revisited including the interchange planning area and
industrial development (including location of where it should occur and the costs to
providing industrial land). Lloyd Hilgart asked if additional areas away from Otter Creek
Business Park and the surrounding area could also be looked at for industrial land and
development. O'Neill also added the importance of understanding the changing retail
development sector and land that was originally set aside for commercial that could be
rezoned to industrial.
Bill Demueles asked if the land near the tracks (southeast in the City) should be looked at
for industrial development. O'Neill stated that most of what is developable is outside of
the orderly annexation agreement.
Schumann asked for a final understanding of staff direction. Demueles stated that staff
should examine what the surrounding area has to offer and complete an area market study
to gather numbers on the different types of properties in surrounding communities. He
also added that staff should understand the feasibility of additional land purchases with
the $1.00 per square foot of infrastructure costs. Steve Johnson added that developers
want to know what the land is going to cost per acre with development fees and if it's
feasible. Lloyd Hilgart asked for the takedown of industrial land from the past 5 to 10
years.
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10. Adiourn
LLOYD HILGART MOVED TO ADJOURN THE MEETING AT 5:50 PM. STEVE
JOHNSON SECONDED THE MOTION. MOTION CARRIED, 5-0.
Recorder: Jacob Thunander
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Approved: May 10, 2017
Attest.
rJThares, Economic Development Director