EDA Agenda 10-11-2017
AGENDA
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, October 11th, 2017 – 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Steve
Johnson, Tracy Hinz, Jon Morphew and Councilmembers Jim Davidson
and Lloyd Hilgart
Staff: Executive Director Jim Thares, Jeff O’Neill, Angela Schumann, Wayne
Oberg and Jacob Thunander
1. Call to Order
2. Roll Call
3. Consideration of additional agenda items
4. Consent Agenda
a. Consideration of approving Regular Meeting Minutes – September 13, 2017
b. Consideration of Workshop Meeting Minutes – September 13, 2017
c. Consideration of approving payment of bills
Regular Agenda
5. Consideration of 5th Amendment to Contract for Private Redevelopment with Master’s
Fifth Avenue for property in TIF District 1-35
6. Consideration of entering into contract with displacement relocation consultant for
services for dislocated properties in downtown
7. Consideration of WSB Economic Development Assistance Contract for 2018
8. Consideration of TIF Financial Management Plan Policy and Guidance Statements
9. Consideration of Appointing Member to Downtown Zoning Committee
10. Director’s Report
11. Adjourn
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MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 13th, 2017 – 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present : Steve Johnson, Tracy Hinz, Jon Morphew, and Jim Davidson
Commissioners Absent: Bill Demeules, Bill Tapper, Lloyd Hilgart
Staff Present : Jim Thares and Angela Schumann
1. Call to Order
Steve Johnson called the meeting of the EDA to order at 6:00 p.m.
2. Roll Call
3. Consideration of additional agenda items
Jim Thares added Item 4.5 to t he agenda.
4. Consent Agenda
JIM DAVIDSON MOVED TO APPROVE THE CONSENT AGENDA. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED, 4-0.
a. Consideration of approving Regular Meeting Minutes – August 9th, 2017
Recommendation: Approved the Regular Meeting Minutes – August 9th, 2017.
b. Consideration of Workshop Meeting Minutes – August 9th, 2017
Recommendation: Approved the Workshop Meeting Minutes – August 9th, 2017.
c. Consideration of approving payment of bills
Recommendation: Approved the payment of bills through August 2017.
Regular Agenda
4.5. Consideration of adopting agreement between the Economic Development
Authority, City of Monticello, Swan River School, Swan River Building Company,
and Sherburne State Bank
Jim Thares stated that the item was a housing keeping item and that the City Council
acted on the item in August, 2017. It was an agreement to complete refinancing for the
school. The EDA is involved with this item because many years ago, the HRA was
involved with the financing and there was a leas e agreement involved for the grounds and
the facility. The City Attorney is now asking that the EDA be involved with the new
agreement.
A representative from Sherburne State Bank spoke stating that the bank was prov iding
direct purchase tax exempt finance to benefit from tax exempt interest rates. There is no
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recourse to the City in any capacity, as it ends up being a private relationship between the
bank and the school.
Tracy Hinz asked if the City Attorney has been involved. Jim Thares confirmed and
stated that he has reviewed the agreements.
Steve Johnson asked if this agreement put the City or EDA in a subordinate position to
the bank in terms of a mortgage. Sarah Barthel, Sherburne State Bank,stated that there is
no more debt owed to the City a nd there is no recourse to the City either.
Jon Morphew asked if it was transferring the right of first refusal from the school to the
bank. Morphew clarified that the City would purchase the building from the bank instead
of the school, if necessary. Ms. Barthel confirmed that was correct.
Steve Johnson asked if a price was set. Sarah Barthel stated that it would be determined
at fair market value. Morphew stated that the document indicates an appraisal process
with appointment of a third appraiser to break any ties.
TRACY HINZ MOVED TO ADOPT AGREEMENT BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY, CITY OF MONTICELLO, SWAN RIVER SCHOOL,
SWAN RIVER BUILDING COMPANY AND SHERBURNE STATE BANK
PERTAINING TO PREVIOUS AGREEMENT TERMINATION (WITH EXCEPTION),
AND ESTABLISHING REVISED FIRST OPTION AND RIGHT OF FIRST REFUS AL
TERMS. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 4-0.
5. Consideration of First Amendment to Purchase Agreement for 220 West Broadway
Jim Thares stated that the first amendment to purchase agreement for 220 West
Broadway was sought to extend the deadline of the closing to October 27th, 2017 because
of the complexities involved with completing the easement resear ch. Another reason is to
request the current property owner, Tom Holthaus to pay the 2017 annual easement
maintenance fees before the EDA purchases the property.
Steve Johnson asked for confirmation that the estimated costs of the association fees to
take care of the easement is $700 to $800 per year. Thares confirmed and stated that
Holthaus owns two properties in this area and it was a combined total of $1 ,500 for the
year or $750 per parcel.
Johnson asked if the assessment was a typical amount per year. Thares confirmed and
added that in 2017 there was more maintenance of the parking lot and that it could be
more for the current year. Tom Holthaus stated that a fair amount of patching occurred
this year and did not expect that this would happen annually.
Johnson asked if he would anticipate a larger than normal amount for upkeep of the
parking stalls in the future. Holthaus said he did not expect anything major to occur.
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JIM DAVIDSON MOVED TO APPROVE RESOLUTION 2017-04 AUTHORIZING
THE FIRST AMENDMENT TO THE PURCHASE AGREEMENT FOR THE
VACANT LAND LOCATED AT 220 WEST BROADWAY STREET. JON
MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0.
6. Consideration of Building Inspection Proposal from LHB, Inc.
Jim Thares stated that this item was to enter into a TIF analysis of the former Fred’s
building at 349 West Broadway. To be conservative with the site and preserve the EDA’s
options for future TIF possibilities, Thares asked that LHB, Inc. be hired to qualify the
building and property as blighted and substandard.
Steve Johnson clarified that the company would identify that the property as blighted and
subject it to redevelopment. Thares confirmed and added that it would preserve the
opportunity to set up a TIF district over the next three years.
Steve Johnson stated that at the time the building is removed, the three year clock would
start. Thares confirmed and added that when a building permit is pulled to remove the
building, the time period would begin.
Tracy Hinz asked if the EDA didn’t hire LHB, Inc., that the project wouldn’t be eligible
for redevelopment. Thares confirmed.
Jon Morphew asked if the Pioneer Village was still an option for the existing building.
Thares confirmed and stated that the township where it is proposed to be located has to
issue a permit, which requires a separate inspection of the building by the township
official.
Hinz asked if the study by LHB, Inc. would still be valid and could qualify for a future
project if Pioneer Village decided to not purchase the building. Thares confirmed.
Morphew asked if hiring LHB, Inc. was necessary if Pioneer Village wanted the building.
Thares confirmed.
Johnson asked if the timeframe to complete the study works with the interested Pioneer
Village owners. Thares confirmed that he spoke with the owner and that he was okay
with relocating the building until around Thanksgiving time.
Morphew asked for clarification. Thares stated that the study needed to occur regardless
of the Pioneer Village proposal or a future proposal.
TRACY HINZ MOVED TO AUTHORIZE ENTERING INTO A TIF
QUALIFICATION INSPECTION SERVICES CONTRACT WITH LHB, INC. TO
COMPLETE A REVIEW OF FRED’S GAS STATION BUILDING LOCATED AT 349
WEST BROADWAY STREET. JIM DAVIDSON SECONDED THE MOTION.
MOTION CARRIED, 4-0.
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7. Consideration of Adopting 2018 Marketing Plan
Jim Thares stated that $20,000 to $22,000 was set aside in the EDA budget for marketing.
Thares stated that the subcommittee (Bill Demeules and Bill Tapper) and City Staff met
to discuss options. Thares stated that $21,800 was allocated for marketing in the budget
for four areas: industrial, downtown (commercial and residential), housing, and general.
He provided a detailed summary of what would be included under each category.
Tracy Hinz asked if there would be flexibility. Thares confirmed and added that if and
single expenditure was for more $1,000, the item would be subject to the EDA’s
approval.
JIM DAVIDSON MOVED TO APPROVE THE 2018 EDA MARKETING PLAN. JON
MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0.
8. Director’s Report
Jim Thares stated that the Industry of the Year would be held on October 4 th at 7:00 at the
Monticello Community Center. A save the date would be sent out by City staff in the
coming days.
Thares also stated that the CEDS draft document was available for review and any
comments that the EDA had could be sent to Jenn Russell, Central Minnesota Jobs &
Training Services (CMJTS) or himself. Thares stated that staff has already provided
input to the plan.
Thares also stated some discrepancies were found in the housing study. An updated copy
was provided to the EDA. Steve Johnson asked Thares to provide the changes that were
made to the plan. Thares agreed saying that the revised highlights would be provided to
the EDA.
Thares explained that the Planning Commission unanimously approved the Small Area
Study at their meeting on September 5th. The City Council would consider approving the
plan on September 25th. If the plan is approved, City Staff and boards would meet inf the
future to discuss implementation of the plan. Angela Schumann stated that full
committees would be involved in t he implementation of the plan.
Thares said that the Wright County Broker Event would be held on September 19 th from
8:30 am until 12:30 pm. Johnson asked if public and private owned commercial and
industrial properties would be highlighted. Thares confir med that was the plan and added
that available sites for multi-family developments would also be displayed at the event.
Thares provided a list of prospects and noted that follow up w ill be occurring with
Project #6580 to discuss possible financing options. Staff will also be providing a letter to
Bondhus, Inc. regarding a financing package for an expansion at their current site.
Thares played a video from the Wright County Broker Event that would be presented at
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the upcoming event on September 19th.
Tracy Hinz noted appreciation for the thoroughness of the Economic Development
Director’s Reports. Jim Davidson asked if attention could be made to the Otter Creek
Business Park sign. Thares confirmed that City Staff would look into it.
9. Adjourn
JIM DAVIDSON MOVED TO ADJOURN THE REGULAR MEETING AT 6:38 PM.
JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0.
Recorder: Jacob Thunander ____
Approved: October 11th, 2017
Attest: ____________________________________________
Jim Thares, Economic Developme nt Director
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MINUTES
WORKSHOP- ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 13, 2017 – 4:30 p.m.
Academy Room, Monticello Community Center
Commissioners Present : Steve Johnson, Tracy Hinz, Jon Morphew, Lloyd Hilgart, and Jim
Davidson
Commissioners Absent: Bill Demeules and Bill Tapper
Staff Present : Jeff O’Neill, Angela Schumann, Jim Thares, and Wayne Oberg
1. Call to Order
Steve Johnson called the meeting to order at 4:30 p.m.
2. Roll Call
3. Consideration of TIF Financial Management, Tammy Omdal, Northland Securities
Jim Thares introduced Tammy Omdal to the EDA. Omdal provided a p ower point
presentation regarding the key recommendations from the 2016 TIF Financial
Management Plan which was adopted in September 2016. Staff felt it would be good to
go over the plan with respect to funds that are available for redevelopment and housing
projects. She provided an overview of the funds available for housing redevelopment,
options for using the funds, and then allowed time for questions and direction for staff.
Omdal explained that it was estimated that as of FYE 2016, there was approximately
$843,397 available for redevelopment projects and an additional $335,232 that could be
used for affordable housing projects. Omdal also estimated that in FYE 2025, close to
$1.7 million would be available for redevelopment projects and $1.4 million dollars for
affordable housing projects.
Omdal reviewed the status of each of the TIF district s. She stated that a majority of funds
for redevelopment are in TIF District 1-6.
Omdal discussed a number of staff recommendations for possible projects to use the TIF
funds for which included implementation of the Small Area Study, revitalization of
residential property (either single family or multi-family), or property assembly for
redevelopment purposes.
Omdal also recommended the EDA could adopt general guidelines for the use of
available funds. She mentioned that the EDA could consider the Small Area Study plan
and overall City goals as it considers guidelines.
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The EDA members asked questions regarding the available TIF funds and discussed
potential options. Thares mentioned he would create a menu of statement options guiding
the allocation of the available TIF dollars.
4. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 5:40 P.M. JON
MORPHEW SECONDED THE MOTION. MOTION CARRIED, 5-0.
Recorder: Jacob Thunander ____
Approved: October 11th, 2017
Attest: ____________________________________________
Jim Thares, Economic Development Director
EDA Agenda: 10/11/17
1
5. Consideration to direct preparation of an Amendment to the Contract for Private
Development between Masters Fifth Avenue and the Monticello EDA and
modification of Tax Increment Financing Plan for Tax Increment Financing District
1-35. (JT)
A. REFERENCE AND BACKGROUND:
Consideration of this item is to determine the EDA’s willingness to amend the Contract for
Private Development between Masters Fifth Avenue and the Monticello EDA. Mr. Fluth
provided a letter indicating that he would like to extend the development performance
timeline for an additional 12 months. As you will recall, t he most recent amendment to the
Contract (4th Amendment ) was approved by the EDA at its regular September 14th, 2016
Meeting. When the 4th Amendment was approved, performance language specifying a
timeline to commence construction on a project by December 31, 2017 and fully complete
the development by December 31, 2018 was added to the document.
In the attached letter, the developer states that he is making progress in discussions with
interested parties in completing a development on the site located at the northeast corner of
Locust and 3rd Street . He is asking for a reset of the commencement of development to be
December 31, 2018.
It should be noted that t he Developer is not asking for additional tax increment for this
project.
Additional background information is provided for your benefit. TIF District 1-35 was
certified in 2006, and was created to fund $170,000 in costs associated with the
develop ment of a proposed 11,000 square foot retail commercial project known as
“Landmark Square II”. The tax increment generated in the district was intended to
reimburse the developer for land acquisition through “pay-as-you -go” TIF assistance.
The EDA approved the third amendment of the contract in October 2015. At that time, the
developer indicated there was the potential for an exclusively residential project. The
developer then submitted the all residential proposal to the City Council for review of a
Development Stage PUD in the spring of 2016. That proposal was a 23 unit residential
development. That plan was presented to the EDA as part of the 4th Contract amendment
as well.
If the EDA is willing to consider the amendment and potential mo dification of the district
again, staff will have the EDA’s attorney prepare the required documents for EDA decision
at the November meeting.
A1. Budget Impact: Per the contract with the developer, the developer will be required
to cover all costs associated with the modification.
A2. Staff Workload Impact: An estimate of one hour of staff time has been spent to-
EDA Agenda: 10/11/17
2
date in reviewing and responding to the most recent request.
B. ALTERNATIVE ACTIONS:
1. Motion to direct preparation of an Amendment to the Contract for Private
Development between Masters 5th Avenue and the Monticello EDA and potential
modification of Tax Increment Financing Plan for Tax Increment Financing District 1-
35.
2. Motion of no action.
3. Motion to table this item for additional information.
C. STAFF RECOMMENDATION:
The amendment of the contract and modification of the TIF District is a policy question for
the EDA. When the TIF district was created, it was intended to spur and support private
commercial redevelopment. If the EDA supports the proposed amendment and potential
modification, Alternative #1 is recommended. If the EDA wishes to proceed under the 4th
Contract Amendment, approved on September 14, 2016, the developer would be required
to begin construction by December 31, 2017. This ti meline may not be realistic given the
work tasks required to be completed before that date.
D. SUPPORTING DATA:
A. Letter from Master Fifth Avenue requesting extension of timeline
B. TIF Plan 1-35, excerpt
C. Fourth Amendment to Contract for Private Redevelopment
Master's Fifth Avenue, Inc.
19577 180th Ave NW
Big Lake, MN 55309
763-390-0393
September 20, 2017
TO:
Monticello Economic Development Authority
505 Walnut Street
Monticello, MN 55362
Attention: EDA members
We request consideration at your meeting of October 11th to consider
modification of TIF District 1-35 agreement and amending the contract for private
redevelopment to modify the date to commence construction of the minimum
improvements to read "December 31, 2018". Sufficient progress has been made
with interested developers to make this change a credible reality. Thank you for
your attention to this matter.
Master's Fifth Avenue, Inc.
Barry D. Fluth, president
EDA: 10/11/17
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6. Consideration to authorize entering into a Displacement Relocation Consultant
Services Contract with Wilson Development in the Amount of $53,500 (JT)
A. REFERENCE AND BACKGROUND:
Staff is asking the EDA to consider entering into a Displacement Relocation Assistance
Contract with Wilson Development, Chaska, MN. The proposed contract for
Displacement Relocation Services is anticipated as a follow on step in t he
implementation of the Small Area Study plan. Site assemblage is a key step in moving
redevelopment projects forward. Whether site assemblage is pursued by the EDA or via
private sector parties, in most instances, if public assistance is provided to leverage
private sector investments, relocation of existing businesses may become an important
part of the process.
Any displaced businesses impacted by site assembly will require relocation assistance as
per the Uniform Relocation and Assistance Act. Two quotes for Displacement
Relocation Assistance services were received. One was from Wilson Development and
the second quote was from WSB, Inc. Each proposal is similar in the proposed the scope
of work involved in providing assistance for 15 displacements. They differ in price
comparison. Wilson Development’s proposal comes in at $53,500, while the WSB, Inc.
quote is $30,768. Wilson Development has prepared a scope based on an estimated cost
based on a number of hours per tenant and will be charged based on actual time. The
WSB proposal provides an estimated number of hours by task and has specified a not to
exceed for their amount.
The complexity of the relocation statutes (Federal and State) is a concern for any public
entity supporting redevelopment efforts. By utilizing a firm that specializes in the
business of providing relocation assistance services, the EDA can be confident that the
required URAA steps are being followed.
A1. STAFF IMPACT: Staff impacts in considering the Displacement Relocation
Assistance Contract with Wilson Development consist of time spent drafting the staff
report, and prior to that…reviewing the extent and scope of possible relocation issues if
site assembly begins to occur in the downtown area. Relocation assistance requirements
can be time consuming and daunting. In contracting with Wilson Development, it will
allowing staff to coordinate the overall project and oversee the consultants work on the
many detailed tasks related to the relocation activities. As such, limited additional staff
involvement will be need to assist with potential relocation efforts.
A2. BUDGET IMPACT: The expected budgetary impact from considering entering
into a Displacement Relocation Assistance Contract with Wilson Development will be
about $53,500 +/-. The funding required to cover this proposed expenditure is included
in the redevelopment activities line item of the 2017 EDA budget.
B. ALTERNATIVE ACTIONS:
EDA: 10/11/17
2
1. Motion to authorize entering into a Displacement Relocation Assistance Services
Contract with Wilson Development in the amount of $53,500. Expenses over this
amount are to be authorized by separate approval of the EDA.
2. Motion to deny authorization to enter into a Displacement Relocatio n Assistance
Services Contract with Wilson Development in the amount of $53,500.
3. Motion to table consideration of entering into a Displacement Relocation
Assistance Services Contract with Wilson Development for further review and
discussion.
4. Motion of other.
C. STAFF RECOMMENDATION:
Staff recommends alternative 1. The EDA has prior experience in working with Wilson
Development for downtown relocation projects. In addition, Mr. Wilson’s experience
includes a variety of relocation project type experience. By utilizing the services of
Wilson Development , the EDA can be confident that the required relocation steps are
being completed in accordance with the Uniform Relocation Assistance Act statute.
D. SUPPORTING DATA:
a. Wilson Development Relocation Assistance Services Proposal
b. WSB, Inc. Relocation Assistance Services Proposal
EDA Agenda: 10/11/17
7. Consideration of 2018 WSB Economic Development Assistance Services Proposal
(JT)
A. REFERENCE AND BACKGROUND:
This item is presented to the EDA to consider an Economic Development Assistance
Services Proposal with WSB & Associates. City staff proposes to enter into a 12 month
(1-1-18 to 12-31-18) contract with WSB & Associates for similar services as the past 15
months (10-1-2016 to 12-31-2017). In the years prior to this time frame, the EDA
contracted with WSB for Market Matching service s at the rate of $4,000 per month.
Similar to the most recent contract, the proposed scope of work for 2018 is more focused
and realistic and provides support/engagement in instances where City staff are unable to
cost effectively participate/engage in such activities.
A1. Staff Impact: The City’s Economic Development Manager has spent about 2 to
3 hours reviewing and discussing the proposed renewal of services with
supervisors and Jim Gromberg, WSB ’s lead economic development consultant ,
on a concept proposal.
A2. Budget Impact: The total amount budgeted for Economic Development
Assistance Services in 2017 is $9,000 ($750 per month). The funds for the 2018
WSB Economic Development Assistance Services Proposal are currently
budgeted in the 2018 EDA Marketing line item.
B. ALTERNATIVE ACTIONS:
1. Motion to approve the proposed 2018 WSB Economic Development Assistance
Services Proposal in the amount of $9,000.
2. Motion to deny approval of the proposed 2018 WSB Economic Development
Assistance Services.
3. Motion to table consideration of 2018 WSB Economic Development Assistance
Services proposal for further research and/or discussion.
C. STAFF RECOMMENDATION:
Staff recommends approval of Alternative #1 wherein the EDA accepts the proposed
2018 WSB Economic Development Assistance Services Proposal. Entering into the
proposed contract with WSB will provide a wider reach to the Monticello EDA and also
allow the Economic Development Manager to be more effective the use of time and
resources in the effort s to engage with multiple regional and statewide groups. In
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addition, it is expected that the expertise of Mr. Gromberg in the area of provided
partnership programs which offer maximum funding leverage for potential prospects
would be of significant value to the EDA as an assist in generating financial packages for
a variety of economic development projects.
D. SUPPORTING DATA:
A. Proposed WSB & Associates Economic Development Services Scope of Work
engineering planning environmental construction 701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763-541-4800
Fax: 763-541-1700
Equal Opportunity Employer
wsbeng.com
October 4, 2017
Jim Thares
Economic Development Manager
City of Monticello
505 Walnut Avenue, Suite 1
Monticello, MN 56069
Re: Economic Development Services for the City of Monticello
Dear Mr. Thares:
Thank you for providing WSB & Associates the opportunity to submit this proposal to provide Economic
Development Services for the City of Monticello. The community after the visioning session in June 2016
has made significant progress in working towards the goals and focuses that were identified. These
included the completion of the housing study, updated downtown study and a renewed emphasis on
brand marketing for the community.
Based upon our discussions for the focus of the economic development services for 2018 we have
developed the following summary of the proposed Scope of Services for ongoing support.
PROPOSED SCOPE OF SERVICES
Task 1: Market Engagement
1.1 Active networking with potential market entrants (on-going). It is anticipated that it would
average of 4 meetings each month would be attended. The exact meetings attended
would be determined by the Economic Development Manager and the WSB staff some of
the possible groups would be:
o Central Minnesota Industrial
Partnership
o Central Minnesota Initiative
Foundation.
o Minnesota Medical
Manufacturers Partnership
o Central MN Manufacturer’s
Association
o CoreNet Global
o DEED
o EDAM
o GSDC
o GREATERMSP
o League of Minnesota Cities
o Minnesota Chamber of
Commerce
o Minnesota High Tech
Association
o Minnesota Marketing
Partnership
o NAIOP
o Sensible Land Use Coalition
o Wright County Economic
Development Partnership
o Other Organizations on an
as needed basis.
o Conference and Association Trade Shows – TBD
Jim Thares
October 4, 2017
Page 2 -
.Task 2: Marketing Plan Implementation:
2.1 Assist City Staff, EDA and City in implementing the adopted marketing plan.
o Provide assistance to City staff as needed in developing and/or implementing web or
illustrative marketing materials.
Task 3: Financial Packaging and Site Review/Presentation Technical Assistance
3.1 Economic Development Opportunities - WSB will identify and assist in identifying
potential economic development opportunities: including the following:
o Land acquisition.
o Financial incentive opportunities.
o Preliminary proposal development.
o Assist in closing.
o Act as a conduit for information and resource for prospect and City staff.
o WSB will assist in providing development related information to all qualified leads.
o Assistance with financial package preparation in consultation with City staff, policy
makers, and financial consultant.
o Attendance at pre-design meetings associated with leads.
Task 4: Communication
4.1 WSB will provide consistent and effective communication with City Staff, EDA, and City
Council on a regular-scheduled basis.
o Provide timely e-mail updates and responses to City Staff
o Monthly Meetings with Economic Development Manager to discuss current and
future projects.
In addition to the above tasks, WSB will also assist the City staff in the development of site plan designs
for projects that are requested by the City. The preliminary site plan designs will be completed by the
registered Landscape Architecture staff. These drawings will be billed separately on a project basis and
not included in the retainer fees.
FEE FOR SERVICES
As outlined in the above Scope of Services, the City has the option to retain WSB & Associates for 12
months at the fee of $750 per month, starting January 1, 2018. Travel expenses incurred by WSB within
Minnesota as part of the Scope Services offering are included in the monthly fee. Travel expenses
incurred by WSB for travel outside of Minnesota shall be paid for according to a negotiated price.
Additionally, fees for services outside of the above described scope may be required from time to time
shall be completed at an additional hourly rate.
If you agree with the proposed project Scope of Services and Fee, please sign below and return one copy
to our office. If you have any questions or comments regarding the above information, please contact me
at (763) 762-2846.
Sincerely,
WSB & Associates
Jim Gromberg
Economic Development Coordinator
Approval Signature
By: ______________________________
Title: ______________________________
Date: ______________________________
EDA Agenda: 10/11/17
8. Consideration of approving 2016 TIF Management Plan Policy Statements (JT)
A. REFERENCE AND BACKGROUND:
Approximately one year ago, in August 2016, the EDA accepted the 2016 TIF
Management Plan completed by Northland Securities. The Plan consisted of a
management analysis with possible recommendations regarding compliance and action
steps of the EDA’s many TIF districts. As stated in the Plan Overview, it is “intended to
be a practical guide…for the ongoing management of the City’s TIF Districts and
available funds”.
The Management Plan outlined the history and the current status and funding level of
each district along with management options. Some of the management decision points
are procedural, administrative action steps. Other management activities consist of
formulating general or specific guiding policy statements to help with fund allocation.
That is where this report and attachments come into play.
Outlined below are the TIF Districts that were identified in the Plan which have available
funds. The goal is to enact a policy statement which guides the use of the funds via either
an overarching guidance statement that outlines activities and/or projects to be considered
for the use of excess TIF funds or some such similar document that lists specific projects
with dollars amounts to be supported by the extra available tax increment .
Policy direction is needed regarding fund balance from the following TIF Districts:
Redevelopment Projects
TIF District 1-06 - $707,603 or $845,651 by 2025
TIF District 1-20 - $89,628 or $117,795 by 2025
TIF District 1-22 - $46,167 or $337,550 by 2025
Total funds available by 2025 = $1,666,653
Affordable Housing Projects
TIF District 1-19 - $176,382 or $337,550 by 2025
TIF District 1-24 - $58,025 or $472,057 by 2025
TIF District 1-29 - $100,824 or $254,232 by 2025
TIF District 1-30 - $73,679 by 2025
Total funds available by $2025 = $1,335,162
The workshop held on September 13, 2017 offered the EDA a chance to review the
options and discuss preferences for the potential use of the funds. The attached policy
statement is a first draft reflecting those points for consideration by the EDA.
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A1. Staff Impact: The City’s Community Development Department staff along with
Tammy Omdal, Northland Securities, and Martha Ingram, the EDA Attorney,
have been involved in formulating and reviewing the policy statements outlining
activities and/or potential projects to be supported with the available tax
increment dollars.
A2. Budget Impact: The incurred co nsultant expenses to review and draft policy
statements is fairly modest. The costs will be allocated to the annual TIF District
administrative expenses (10 percent) for each of the districts.
B. ALTERNATIVE ACTIONS:
1. Motion to adopt the 2016 TIF Management Plan Available Funds Policy
Statement.
2. Motion to deny adoption of the 2016 TIF Management Plan Available Funds
Policy Statement.
3. Motion to table adoption of the 2016 TIF Management Plan Available Funds
Policy Statement for further research and information.
C. STAFF RECOMMENDATION:
Staff recommends approval of Alternative #1 wherein the EDA adopts the 2016 TIF
Management Plan Available Funds Policy Statement. By adopting the policy statement,
it will guide the expenditure of the available funds and help ensure the resources are
allocated to the best possible activities and/or redevelopment and affordable housing
projects
D. SUPPORTING DATA:
A. 2016 TIF Management Plan Available Funds Policy Statement DRAFT
B. Estimated Available Funds Table
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Policy Statements for Management of Available Tax
Increment Financing (TIF) Funds
The City of Monticello Economic Development Authority (the “EDA”) has prepared the following policy
statements to guide both staff and EDA members to make consistent and informed financial decisions
regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to
be a guide. The EDA may determine to allocate funds to other types of projects, not included below,
based on other criteria and factors that may exist. The EDA defines “available TIF funds” as both current
and future projected dollars legally available within established TIF funds, and not committed to existing
obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act").
POLICY STATEMENTS:
Redevelopment Projects
The EDA will consider the allocation of available TIF funds, without priority order, to the following
types of redevelopment projects:
1. Acquisition of property – Block 52 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
2. Acquisition of Property – Block 34 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
3. Acquisition of Property - Other downtown sites that provide relatively immediate
development opportunities that support the objectives of the Comprehensive Plan and the
Downtown Small Area Study.
4. Installation of infrastructure and other property improvements directly supporting
redevelopment projects that support the objectives of the Comprehensive Plan and the
Downtown Small Area Study.
Affordable Housing Projects
The EDA will consider the allocation of available TIF funds, without priority order, to the following
types of affordable housing projects:
1. Financial support to lower overall project costs via reimbursement of TIF-eligible expenses
related to projects that meet the EDA’s value-added standards/criteria.
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2. Financial support for underground parking garage and/or value-added site improvements in
connection with a Block 52 market-rate, multi-family facility with an affordable component.
3. Financial support for Masters Fifth Avenue Site for underground parking garage if more than
23 units of housing.
4. Establishment of a scattered-site owner-occupied rehab program in the core area of the
City.
5. Financial support for underground parking garage and/or value added site improvements in
connection with other downtown sites related to the development of market-rate, multi-
family projects with an affordable component.
6. Support for the installation of infrastructure serving sites to be developed with market rate,
multi-family housing with an affordable component.
7. Acquisition of property for purposes of facilitating development of a market-rate, multi-
family housing project with an affordable component consistent with the goals and
objectives of the Comprehensive Plan.
EDA Agenda: 10/11/17
9. Consideration of authorizing and appointing a City Council member to serve on the
Downtown Zoning Ordinance Work Group. (AS)
A. REFERENCE AND BACKGROUND
The EDA is asked to authorize a work group for revising the Monticello Zoning Ordinance
in support of the Downtown Small Area Plan, and to appoint a representative to the
group. The Downtown Small Area Plan was adopted by the City Council on
September 25th, 2017.
The Small Area Plan provides a framework to guide revitalization of the downtown. To
support the realization of the Plan, the City must update its zoning ordinance consistent
with the land use framework, character areas and recommendations of the Small Area
Plan. The zoning ordinance provides the regulations and standards by which
development, redevelopment and related land-use actions or requests are evaluated. At
present, the zoning ordinance relies on the land use framework set up under the prior
downtown plan – Embracing Downtown, along with its companion Design Guidelines.
With the Small Area Plan now in place, these ordinances require update.
Staff is therefore recommending a work group to provide feedback and recommendation
on the companion zoning ordinance amendments. The work group would include a
representative from City Council, the Planning Commission, and EDA, as well as 4
members of the general public. Specific invitation to participate will be sent to those on
the Small Area Plan Steering Committee and those who expressed interest in either the
plan or zoning revision. It is proposed that the City’s consulting planner, Steve Grittman
of NAC prepare the amendments for review. All meetings will be open meetings.
The work group process is similar to that undertaken for the ordinance amendments
prepared after the adoption of Embracing Downtown. It is hoped that the work group
would begin in early November and provide an ordinance for consideration by the end of
January, 2018.
A1. Budget Impact: NAC has provided an estimate of $9,800 for the project, with
funds to complete the work included in the Miscellaneous Professional Services line item
of the Planning and Zoning budget, with costs spread out over 2017 and 2018 budgets.
A2. Staff Impact: Community and Economic Development staff will participate in the
work group discussion and assist in ordinance preparation and revision.
A3. Strategic Plan Impact: The completion of zoning ordinance amendments in support
of achieving the vision of the Downtown Small Area Plan aligns with the Strategic Plan
goals to:
Create and preserve sustainable livability
Build a connected community
Strengthen our image as a destination
Support a vibrant economy
Invest in people
EDA Agenda: 10/11/17
B. ALTERNATIVE ACTIONS
1. Motion to authorize a Downtown Zoning Ordinance Work Group and to appoint EDA
member _______________ to serve.
2. Motion of other.
C. STAFF RECOMMENDATION
Staff recommends Alternative #1 above. Revision of the zoning ordinance in support of
the land use and performance standards of the Small Area Plan is a necessary step in
achieving the vision set by the plan. In addition, outside of the metropolitan area, it is the
City’s zoning ordinance which prevails in land use development. As such, the zoning
ordinance which reflects the Comprehensive Plan’s Downtown Small Area plan is
critical.
D. SUPPORTING DATA - None
EDA Agenda: 10/11/17
1
10. Economic Development Report (JT)
A. Industry of the Year
The Industry of the Year event held on October 4, 2017 was a success. UMC was chosen
as the Industry of the Year.
B. Small Area Study Update
The City Council approved the Downtown Small Area Study 5 -0 at the regular meeting on
September 25, 2017. The next step is the implementation discussion steps by policy
makers. An implementation workshop is being planned for November 1, 2017. Further
information will be provide to you in the near future.
C. Fred’s (349 West Broadway Street)
Staff learned that Steve Bauer, Hasting, MN, the prospective building remover, is in the
process of scheduling final destination inspection permits which are issued by the
Township where the Pioneer Village is located. This process is expected to take several
weeks.
D. Broker Event Update
The Wright County Broker Event held on Tuesday September 19th was a success. Several
new contacts were made and staff is engaged in discussions regarding concept ideas with
developers as a result of the meeting.
E. Prospects – See attached
A spread sheet with the active prospects is attached.
F. Industrial Land Survey and Results
The survey results are being reviewed and initial analysis is beginning. A report will be
compiled and presented to the EDA at a future meeting.
10/11/2017
Date of Contact Company Name Business Category Project Description Building-Facility Retained Jobs New Jobs Total Investment Project Status
11/12/2016 MN DEED Prospect Metal Mfg.Exist Facility + Equip 65,000 sq. ft. 0 55 - 100 $2,500,000 Active Search
11/17/2016 Project Novus Precision Machining New Facility Constr. + Equip 105,000 sq. ft. 0 99 - 105 $10,000,000 Active Search
3/14/2017 Rustech Brewing, LLC Micro Brew-Tap Rm Exist Facility + Equip 2,000 sq. ft. +/-0 3 $423,000 Site Secured
6/22/2017 Project #6580 Metal Mfg.New Facility Constr.80,000 to 100,000 sq. ft.0 80 $6,500,000 Active Search
6/16/2017 Project Basil Bio-Ag. New Facility Constr. + Equip 165,000 sq. ft. 0 77 $11,000,000 Active Search
8/29/2017 Bondhus Tool Mfg.Facility Expansion + Equip.16,000 sq. ft.69 10 $2,000,000 Active Prop.
10/4/2017 Project Shepherd Tool Asmbl-Packag Facility Exp-New Facility 30,000 to 50,000 sq. ft.39 5 $2.4 - $4.0 million Active Review
10/4/2017 Project Kodiak Air Sep-Ind. Gases New Facility 40,000 sq. ft.0 6 $15 to $18 million Active Search
10/5/2017 Project Ajjax Mfg-Industrial New Facility 30,000 sq. ft.14 0 $2,100,000.000 Active Search
PROSPECT LIST