City approves modified Development Agreement with Theisen’s

   Seven items on the Monticello City Council’s Aug. 7 agenda included Theisen Real Estate LLC’s plan to build a new store in Monticello.

   Theisen’s worked with the Monticello Community School District to purchase the former middle school property (217 S. Maple St.) and build a 35,000 to 40,000 square foot facility. This would be a $3 million to $4 million project. Theisen’s would also double their current employment.

   Theisen’s is now asking the city for TIF incentives in order to accomplish their project. This also includes the city amending its Urban Renewal Plan, approving a Development Agreement, re-zoning the property, and holding several public hearings.

   During the meeting, three public hearings were held on these matters.

   Theisen’s has agreed to demolish the former school and grade the site before new construction begins on the 4-acre lot.

   The city would reimburse Theisen’s for asbestos abatement and provide a 10-year tax rebate at 100 percent, a total investment of up to $750,000.

   The city would also purchase the former Family Foods property (Theisen’s garden center) if they’re not able to sell it on their own. Theisen’s has had multiple inquiries about the property.

   The property would also be re-zoned from “School Owned” to C-1 General Commercial.

   During the public hearing, Quinn Phelan said while he’s happy the school district chose to sell to Theisen’s, several years ago when he voted in favor of the new school bond issue, he did so under the impression the school would foot the bill to tear down the old middle school.

   “What is that amount of money that was set aside and earmarked to tear it down?” he asked. “What happened to that money? Will it be returned to the taxpayers of Monticello?”

   The council told Phelan his questions on this matter would have to be directed toward the school board, not the city.

   Brian Jaeger, the MCSD superintendent, was present at the meeting and offered an explanation.

   “That money was allocated as part of the project in the construction account,” he said. (The project, as a whole, also included remodeling the high school entrance and work on the sports complex.) “The school board needs to decide whether to reallocate the money to the PPEL account or vote to put it toward the bond to pay it down.”

   Jaeger said the school board is waiting to see where the city settles on the development agreement with Theisen’s before acting on their own resolution.

   “These are both responsible areas to use taxpayer dollars,” he added.

   In terms of a specific dollar amount, Jaeger said nothing was ever placed on the cost for demolition. But he estimated between $750,000 and $800,000 in the account. Some of those original funds, though, have been spent on small purchases.

   Phelan said it comes down to accountability and transparency.

   “The language in the (school) bond I voted yes for said what they money was supposed to be spent on,” he said.

   Both City Administrator Russ Farnum and Mayor Dave Goedken thanked Jaeger for his comments, noting the city had received some questions on the matter as well.

   “I want to thank the school board for decommissioning the building, which is something the public voted on,” added Goedken. “Thanks for doing their job.”

   Concerning the updated development agreement, the council’s approval included a change regarding the storm water ordinance. Under the new agreement, Theisen’s is only responsible for providing control of any increase in storm water on the redeveloped site.

   Chris Theisen, CEO of Theisen’s, was also present at the meeting and said they are still finetuning the site plan.

   “We appreciate the city working with us on this,” he said.

   He said the updated site plan calls for the loading docks to be built behind the store. The facility will also be moved to the south, with yard space on the north side of the property.

   “This will be better for the neighbors and better for us,” Theisen said. “It’ll be more pleasing.”

   The council approved the development agreement as modified, amendments to the city’s Urban Renewal Plan, and amendments to the city’s zoning ordinance.