Development agreement, TIF rebates approved for Oak Street Mfg. expansion

     A series of agenda items on the Jan. 3 Monticello City Council meeting paved the way for continued expansion of Oak Street Manufacturing.

     With a new Mayor (Dave Goedken) and a new Council Member (Wayne Peach) in office, the council held two public hearings. The first concerned the development agreement between the city and Frontier Warehousing (the “developer”) and Oak Street Commercial Cabinets Inc. dba (doing business as) Oak Street Manufacturing. No public comments were offered.

     The second public hearing was on amending the city’s Urban Renewal Plan to include the Oak Street Manufacturing project in question. Again, no comments were offered.

     Tom Bagge, owner of Oak Street Manufacturing, previously requested a tax rebate incentive from the city for improvements to his facility on Welter Drive. During the Nov. 15 council meeting, the council tentatively approved terms of the development agreement and amending the Urban Renewal Plan.

     This current project is the third expansion to the Oak Street Manufacturing facility. Roughly 2 acres of additional land was purchased for this purpose, to construct a 40,000 square foot building. The estimated cost for the project is around $1.5 million, with anywhere from 10 to 20 additional jobs added in the community.

     The city’s incentive (TIF property tax rebates) offer is not-to-exceed $325,000 over a 10-year period. Rebates would start at 100 percent the first year and step down in 5-percent increments in subsequent years. It also includes a land purchase subsidy of $20,000 per acre, for a total of $40,000.

     The council approved both the development agreement and the amendment to the city’s Urban Renewal Plan.

In other city business:

   • City Administrator Russ Farnum informed the council that the Monticello Airport was projected to receive $159,000 thanks to the Airport Bipartisan Infrastructure Law.

     “We don’t know yet what we can use the money for,” said Farnum. “We’re exploring our options.”

     • A public hearing was scheduled for Monday, Jan. 17, at 6 p.m. to receive input and to preliminarily accept proposals for the purchase of city property located at 449 N. Sycamore St.

     With interest from multiple parties, the city is seeking RFPs (request for proposals), which are due Jan. 12. Following the public hearing on Jan. 17, the council could choose to take action and approve any of the RFPs presented.

     The structure on the property has been demolished and removed, turning the property into a vacant lot, measuring 75 feet wide and 122 feet deep. It is currently zoned R-1 Single Family Residential.

     “Subsequent to the public hearing, you could choose which proposal you feel is in the best interest of the city,” offered Farnum. “If you’re not comfortable moving ahead at that meeting (Jan. 17), you don’t have to.”

     • The council approved designating the Monticello Express as the official publication newspaper for the city.

     • Mayor Dave Goedken suggested the council and department heads hold a series of work sessions to review each department’s budget ahead of a regular council meeting and approving the city budget for Fiscal Year 2023.

     “If you have any questions, that is the time to ask,” Goedken instructed the council. “When I vote, I’d like to understand what I’m voting on.”

     The council plans to meet with departments heads at 5 p.m. on Jan. 17, ahead of the 6 p.m. council meeting. Farnum said if more work sessions are needed, they can be scheduled before the end of the month.