Council approves annual TIF obligations, FY 25 certification

   Multiple TIF resolutions were approved by the Monticello City Council during their Nov. 6 meeting.

   These resolutions appropriate the funds necessary to meet the city's obligation to various developers pursuant to previously approved Development Agreements.

   All incentives set out in these Development Agreements are subject to annual appropriations by the council.

   The following agreements were approved:

   • Karde's Inc.

   • Cobblestone Inn & Suites

   • Orbis Manufacturing

   • Lauren Welter

   • Paige Jacobs, LLC

   • Njs LLC

   • MarcyCare Management, Inc.

   • McMATT Properties

   • BR3 Development LLC

   • Frontier Warehousing and Oak Street Commercial Cabinets, Inc. (dba Oak Street Manufacturing)

   • Theisen's Real Estate LLC

   • Mike Beck and Ken McDermott (Royal Flush Truck Wash, Inc.)

   When it came to appropriating the TIF funds associated with Royal Flush, Council member Brenda Hanken inquired as to whether their fines with the city and the DNR had been worked out yet.

   In July, the council approved the TIF resolution for Royal Flush in an effort to repay the city itself for covering the DNR fines. The intent was to have the TIF rebates go directly to the city versus Royal Flush to deduct the fines first.

   Mayor Dave Goedken said the city has since learned they cannot go this route to recoup the fines.

   "We need to talk to our attorney to find out the best option," offered City Clerk Sally Hinrichsen.

   At the end of June, Royal Flushed owed $40,000 in fines.

   City Administration Russ Farnum said the TIF payments will not be made to Royal Flush until the fines are paid.

   Historically, the city only certifies the TIF necessary to meet its obligations, typically certifying between $550,000 and $750,000. In the last nine years, the council certified $550,000 in FY 2024, $500,000 in FY 2023, $700,000 in FY 2022, $600,000 in FY 2021, $210,385 in FY 2020, $750,000 in FY 2019, and $700,000 in FY 2016, 2017, and 2018.

   This year's TIF certification is proposed to be $550,000. The total incremental available for collection is approximately $1,789,452.

   The $550,000 proposed does not include any future or potential TIF agreements that might arise in the coming year.

   The council approved FY 2025 TIF Certification in the amount of $675,000.