HRA Agenda 10-04-2006
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 4, 2006 - 6:00 p.m.
Bridge Room - Community Center
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews, Dan Frie, Darrin Lahr, and Bill
Fair.
Council Liaison:
Wayne Mayer.
Staff: HRA Treasurer Rick W olfsteller, Executive Director Ollie Koropchak, and Recorder Angela
Shumann.
Guest: Mike Maher, Karisburger Foods, Inc.
1. Call to Order.
2. Consideration to approve the September 6, 2006 HRA minutes.
3.
Consideration of adding or removing items from the agenda.
4. Consent Agenda.
A. Consideration to ratify the execution ofthe second Certificate of Completion related to
the Purchase and Development Contract between the HRA and Vector Tool &
Manufacturing, Inc.
5. Consideration of a request from Karisburger Foods, Inc. for compensation of over-run costs
associated with earthwork on Lot l, Block l, Otter Creek Crossing 2nd Addition. (Purchase
and Redevelopment Contract between HRA and SL Real Estate Holdings, LLC)
6. Consideration to hear follow-up of meeting between Frie, Conroy, and Koropchak.
7. Consideration to authorize payment ofHRA bills.
8. Consideration ofHRA Executive Report.
9. Committee Reports: Marketing
Fiber Optics
10.
Next regular HRA meeting - Wednesday, November I, 2006.
1 1. Adjournrnent.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 6th, 2006
Commissioners Present:
Chair Brad Barger, Bill Fair, Darrin Lahr, Dan Frie, Steve
Andrews
Commissioners Absent:
None
Council Liaison Present:
Wayne Mayer
Staff Present:
Rick Wolfsteller, Ollie Koropchak, Angela Schumann
1. Call to Order.
Chairman Barger called the meeting to order at 6:00 PM.
2. Consideration to approve the August 2. 2006 HRA minutes
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MOTION BY COMMISSIONER FRIE TO APPROVE THE MINUTES OF
AUGUST 2, 2006.
MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED,
5-0.
3. Consideration of adding or removing items from the agenda.
Koropchak added as item 6:
Review of incentive pricing criteria for Otter Creek Business Industrial Park in
relationship to parties interested in land.
4. Consent agenda.
A. Consideration to approve ratification of the Subordination of
Redevelopment Agreement between the HRA, SL Real Estate Holdings,
LLC, and First Federal Savings Bank.
MOTION BY COMMISSIONER ANDREWS TO APPROVE THE CONSENT
AGENDA.
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MOTION SECONDED BY COMMSSIONER FAIR. MOTION CARRIED, 5-0.
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5. Consideration of follow-up bv Commissioner Frie as to discussion with business
property owners.
Frie stated that he had met with or talked to six of the property owners on both
Blocks 52 and 53. Frie stated that the Muller building is vacant, there are no
rental tenants. They are asking for $850,000, which they stated is negotiable.
Barger asked who owned parking lot on 25. Wolfsteller replied that the parking
lot is Allied's; the previous owners had a joint parking arrangement with the
theater.
Frie stated that the old Holker building is by Udal Larson. He noted that
communication with both the owner and agent from Edina Realty has been
difficult. However, they are interested in selling. They would like to talk with the
HRA regarding a sale. Koropchak asked about tenants. Frie stated that it would
be made clear in proposal.
Frie reported that he had spoken with Dennis Anderson, who owns the old senior
center building. Anderson had indicated that it is fully leased, but he does want to
sell. Allied no longer wants to buy this building. He is asking for $625,000. Frie
stated that Anderson is willing to emaillease and value information. Frie stated
that relocation is an issue on this property.
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Frie stated that on Block 52, many are also interested in selling. Springboard is
asking for $299,000. The Springboard building is the warehouse behind
Johnson's. There would be no relocation. Frie stated that he had also spoken
with Cathy Froslie. She stated that she also wants to sell. Her appraisal put the
land and building at $750,000. She has one tenant, plus the antique shop. The
idea of possibly closing within a year was appealing to Fros1ie.
Frie noted that there are two types of valuation that are typically used - the
income approach or replacement approach. Property owners tend to go with
biggest number.
Frie reported that he also met with Steve Johnson, who agreed that numbers are
inflated. Johnson wants to sell and is willing to sell buildings separately. All
tenants in east building are on less than a two year lease. Johnson stated that a
1031 exchange would be preferred, or that he would consider being an investor in
the property.
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Fair asked if the Commissioners agreed on the guidelines set earlier. Frie stated
that perhaps the HRA should target a direction, then use the criteria. Barger asked
what generates the higher valuation numbers. Frie stated cost per square foot.
Frie stated that the Springboard and Froslie buildings would be the more valuable
purchase, considering the location.
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Fair asked about cash on hand. Koropchak responded that Ehlers had projected
that fund balances for redevelopment districts would be estimated at $900,000 to
$1 million for acquisition. Housing dollars could also be used. The pre-I 990
districts are probably in the same range. Koropchak reminded the Commissioners
that the pre-I990 district funding is less restrictive. In any case, all of the cash
isn't available right now.
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Lahr stated that his vote would be to acquire the buildings on the west side of
Highway 25 rather than the east. He stated that he would recommend buying the
Froslie and warehouse buildings, then let Johnson be a partner investor. Mayer
noted River Street closing as a factor in redevelopment plans. Barger noted that
the Froslie and Springboard building have no relocation encumbrances. Frie
noted there is a parking lot owned by the City in that area already. Barger stated
that ifFroslie's tenants need to stay, we could agree to that. Koropchak stated
that the HRA doesn't have a concrete redevelopment plan for that area at this
point, anyway.
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Frie indicated that the HRA will need to find someone to act as its agent in the
negotiations. Frie recommended that the HRA make each offer contingent on the
other, so that one can't hold the HRA up. Andrews suggested perhaps Frie could
represent the HRA and abstain from the vote. Mayer stated that the perception
may be negative if Frie acted on behalf of the HRA as he is a sitting
Commissioner. Local attorney Steve Conroy was suggested as a possible
representative.
Lahr suggested keeping Johnson in the loop as a courtesy. Fair asked ifHRA can
sell bonds to finance the buy. Koropchak answered that the HRA could, and
could also borrow from the City. Frie asked if the HRA had to have an appraisal.
Koropchak stated that it is not required. Fair stated that it should be noted to the
property owners that the land would be purchased for future redevelopment. Frie
stated that he had made that clear.
Mayer asked if when the HRA makes an offer based on market value of/and only,
would they recommend adding a percentage and it so, what percentage. Frie
stated that he would make an offer based on the value of/and. Even using the
most expensive raw land values in Monticello, the offer would still be less than
what the property owners are asking for. Mayer asked ifhe would disregard
taxable value. Frie stated that he doesn't use that number in determining sale
prices. Barger recommended using the 15% premium discussed previosuly. Fair
commented that the HRA would also have the costs of the relocation of utilities
and demolition costs, which should be presented in making the offer.
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Koropchak clarified that the direction of the HRA would be to ask Steve Conroy
to represent the HRA, and to check with Ehlers on other particulars.
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MOTION BY COMMISSIONER FAIR TO AUTHORIZE NEGOTIATION OF
AN OFFER ON THE FROSLIE AND SPRINGBOARD PROPERTIES USING
THE HIGHEST COMMERCIAL SQUARE FOOTAGE LAND VALUE IN THE
CITY AND ADDING A 15% PREMIUM, WITH OFFERS CONTINGENT ON
EACH OTHER.
MOTION SECONDED BY LAHR. MOTION CARRIED, 4-0, WITH FRIE
ABSTAINING.
Fair stated that perhaps the HRA should send a letter to other property owners
regarding the HRA's interest downtown and ask them to contact the HRA if
interested. Andrews stated that it might be best to wait until the negotiations have
commenced on other properties first.
6.
Consideration to review for discussion criteria for extended an offer to interested
industrial park businesses.
Koropchak reported that she had received inquiries for businesses looking at Otter
Creek. With the deal with A VR relatively close to closing and with the closing on
additional land with Chadwick, Koropchak stated that she wanted to clarify the
HRA's position on offering market rate versus incentive pricing on land. Lahr
questioned whether they needed to meet one or all ofthe criteria. Koropchak
stated that Karlsburger had met all of the criteria for jobs, wages and square
footage. Dahlheimer's did not meet the criteria, however, they were given special
consideration due to relocation. Barger stated that if potential buyers want the
discounted rate, they should meet all of the criteria.
Koropchak inquired on whether the HRA wanted to use average hourly wages of
all jobs, or pro-rate the number of jobs meeting the hourly rate. Barger stated that
you almost need to weight the jobs in determining a rate. Lahr pointed out that
many companies have a couple of jobs at higher wages. Andrews stated that we
want wages spread out.
Commissioner Andrews excused himself from the meeting.
Lahr and Fair commented that to get the preferred incentive pricing, they thought
buyers should qualify in each criteria area. They can purchase balance of
property at market rate. Frie stated he would be okay with pro-rating. Koropchak
confirmed that building size would also still be tied to pricing.
Lahr asked if the HRA should give Koropchak direction on land sales in light of
the A VR closing. Lahr stated while A VR isn't a preferred user, he would still
prefer to stick to criteria. Fair stated that it is too early to tell. Barger stated that
if prospective buyers do not meet the criteria, they could still buy at market rate.
Lahr stated that we haven't changed the philosophy.
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Given the discussion, the Commissioners agreed to offer Arch Aluminum & Glass
land at the market rate of $3.00 per square foot plus trunk fees, and Walker In-
store 1.55 developable acres at $1.00 per square foot for Lot 2, Block 1, Otter
Creek Crossing 3rd Addition. The entire lot is 5.8 acres consisting of powerline
and pond easement. The property is adjacent to A YR.
6. Consideration to authorize payment ofHRA bills.
MOTION BY COMMISSIONER LAHR TO AUTHORIZE PAYMENT OF
BILLS.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED,
4-0.
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7. Consideration of Executive Director's Report
Koropchak reported that she had included for the Commissioner's review a labor
market profile.
8. Committee Reports
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Marketing
None.
Fiber Optics
Mayer reported that there would be a task force meeting to present the feasibility
study to the City Council on Sept. 25th.
9. ADJOURN
MOTION BY COMMISSIONER FAIR TO ADJOURN.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED,
4-0.
Recorder
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4A.
BRA Agenda - 10/04/2006
Consideration to ratifv the execution of the second Certificate of Completion related to
the Purchase and Development Contract between the BRA and Vector Tool &
Manufacturinl!. Inc.
A. Reference and backl!round:
The Purchase and Development Contract between the HRA and Vector Tool &
Manufacturing, Inc. was executed on September 14, 1995. Vector Tool agreed to pay the
HRA $33,000 for Lot 5, Block 3, Oakwood Industrial Park, and to complete construction a
15,000 sq ft manufacturing facility by December 31, 1996. The Purchase and Development
Contract was recorded at Wright County on November 28,1995 (Doc. 583737) and the Quit
Claim Deed was recorded also on November 28,1995 (Doc. 583739).
The original Certificate of Completion dated December 4, 1996, was recorded at Wright
County on December 19, 1996 (Doc. 609079); however, only the Quit Claim Deed (Doc.
583739) was noted referring to Sections 1 and 2 (Completion of Minimum Improvements) of
the Deed.
With the planned closing of the Blue Chip Development project on September 20, 2006,
associated with the construction of the 25,000 sq. ft. facility of which Precision Technology,
Inc. will occupy 10,000 sq. ft.; the developer's legal firm requested a replacement Certificate of
Completion be issued to include the Purchase and Development Contract (Doc. 583737)
which refers to ARTICLES IV AND VI (Completion of Minimum Improvements) of the
Contract. This to clear the title and is a housekeeping item.
In order to have the document ready for the closing date of September 20 and to avoid any
conflict of interest, current Vice Chair Andrews and myself executed the document. It is the
request ofthe legal firm to ratifY said execution.
B. Alternative Action:
1. To ratifY the execution of the second Certificate of Completion related to the Purchase
and Development Contract between the HRA and Vector Tool & Manufacturing, Inc.
C. Recommendation:
HRA Treasurer and Executive Director recommend Alternative No.1, as this is a
housekeeping item and clears the title for the developer.
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HRA Agenda - 10/04/2006
D.
SUDDortim! Data:
Copy of the September 19, 2006 and December 4,1996, Certificate of Completions.
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c.;t)\ ~
Cl." ~ ~()-ti-o
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CERTIFICATE OF COMPLETION
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota,/a public body, corporate and politic (the "Grantor"), by a Deed recorded in the Office of
the County Recorder or the Registrar of Titles in and for the County of Wright and State of Minnesota,
as Deed Document Number (s) 583737 and 583739 ,respectively, has conveyed to Vector
Tool & Manufacturing, Inc., a Minnesota general partnership (the "Grantee") the following described
land in County of Wright and State of Minnesota, to-wit:
Lot 5, Block 3, Oakwood Industrial Park, according to the recorded plat thereof in Wright County,
Minnesota.
and
WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections I and 2 of
said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a
manner deemed sufficient by the Grantor to permit the execution and recording of this certificate;
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NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and the above
covenants and conditions in said Deed and the agreements and covenants in Articles IV and VI of the
Agreement (described in said Deed) have been performed by the Grantee therein, and the County
Recorder or the Registrar of TitIes in and for the County of Wright and State of Minnesota is hereby
authorized to accept for recording and to record, the filing of this instrument, to be a conclusive
determination of the satisfactory termination of the covenants and conditions of Articles IV and VI of
the Agreement referred to in said Deed, but the covenants created by Section 2(c) and Section 3 of
said Deed shall remain in full force and effect.
Dated: 'S~~ \ 0...
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By ~ If! /\f2,L'~
Its Vice Chair
,2006.
By CJJ~~,-, y\U\tl ~.:h..~
Its Executive Director "
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DAWN M. GROSSINGER
NOTARY PUBLIC - MINNESOTA
My Commission Expires Jan, 31, 2010
. STATE OF MINNESOTA
SS.
COUNTY OF WRIGHT
On this J.s:L day of '0,,",--~-T. "-,,,^--'oo ^ ,2006, before me, a Notary Public within and for said
County, personally appeared i\b..U.L C\'I\A ^ ^ \ , ..,.., , to me personally known, who, being
by me duly sworn, did say that (s) he is the Vice Chair of the Authority named in the foregoing
instrument; that the seal affixed to said instrument i~tl1lJ. slJ.al()fs<1i4Allthority~that s<lid il1SJIUrnel1t was
signed and sealed in behalf of said Authority by authority of its governing body; and said
S~e.v"- 1.'1.,,) ,-e."'-' J acknowledged said instrument to be the free act and deed of said Authorit
ss.
STATE OF MINNESOTA
COUNTY OF WRIGHT
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On this \ o..*' day of Se.I?\ e."" b ~(/" ,2006, before me, a Notary Public within and for said
County, personally appeared Cl\ \~'" \l..cv-o I(G'wL1:::... , to me personally known, who, being
by me duly sworn, did say that (s) he is the Executive Director of the Authority named in the foregoing
instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was
signed and sealed in behalf of said Authority by authority of its governing body; and said
0\\;... \(,o~Q~Gk~acknowledged said instrument to be the free act and deed of said Authority.
D~ -{'f\. ~s~
Notary Public
Kennedy & Graven, Chartered
Attorney at Law
470 US Bank Plaza
Minneapolis, MN 55402
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CERTIFICATE OF COMPLETION
61.1~~~
<;.~(}..J--'
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.n '.. > l & Q~
.......'Q '"' -
C\ -) , 0 V
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WHEREAS, the Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota, a public body, corporate and politic (the "Grantor"), by a
Deed recorded in the Office of the County Recorder or the Registrar of Titles in and
for the County of Wright and State of Minnesota, as Deed Document Number(s)
583739 and , respectively, has conveyed to Vector Tool &
Manufacturing, Inc. , a Minnesota general partnership (the "Grantee") , the following
described land in County of Wright and State of Minnesota, to-wit:
Lot 5, Block 3, Oakwood Industrial Park, according to the recorded plat
thereof in Wright County, Minnesota.
and
WHEREAS, said Deed contained eertain covenants and restrictions set forth
in Sections 1 and 2 of said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar
as it is able in a manner deemed sufficient by the Grantor to permit the execution and
recording of this certification;
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NOW, THEREFORE, this is to certify that all building construction and other
physical improvements specified to be done and made by the Grantee have been
completed and the above covenants and conditions in said Deed and the agreements
and covenants in Articles IV and VI of the Agreement (as described in said Deed)
have been performed by the Grantee therein, and the County Recorder or the
Registrar of Titles in and for the County of Wright and State of Minnesota is hereby
authorized to accept for recording and to record, the filing of this instrument, to be
a conclusive determination of the satisfactory termination of the covenants and
conditions of Articles IV and VI of the Agreement referred to in said Deed, but the
covenants created by Section 2(c) and Section 3 of said Deed shall remain in full
force and effect.
Dated: December 4
, 199..2-..
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
.,...,..,
BY/~
It hair '
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B ~~CJi~~~)~~
y .........
Its Executive DIrector
DJG92439
MN190-50
C-l
WCR
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STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
. iP7 -". I
On thlSL day of J );Or"/'/cY!!;C/', 199 ,before me, a Notary Public within and
for said County, personally appeared ./:<;C2 , to me personally
known, who, being by me duly sworn, did say that (s)he is the Chair of the
Authority named in the foregoing instrument; that the seal affixed to said instrument
is the seal of said Authority; that said instrument wa.s signed and seal~ in behalf
of said Authority by authority of its governing body; and said . ~7/,.,t:.Ji-d.
acknowledged said instrument to be the free ac~~,;n~1eed ?f said fu~~rity , .
//~,(!// ~ /b{;/~
NOtary Public --
~i'~.:\;~M.i'l()';',' ('-':, -Cio'
'i~q1i~' ",., :<C"!ICH"
,';)~' J"':~~~ r\'~:' t i ,"j,;Lij~ \vH\'JNUiO"i,'J,~'
\~'-':~:~I~3;:' fAy Cormrc Ezp ,Juti_ 31, 2001) ~
. ,,-',>~;v.''f#\i'V''4''l)J,t;i 'i'f!J\l'~'\t'4';J,j';.i:v:,f;.f\i";)',Y/..i\;;
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
.-!/di-; ~, j
On thisL day ofL~//'/,4/;"'/, 199h, b~e me, a Notary Public within and
for said County, personally appeared (JZ:;I'; /zPp'/!4_2/' to me personally
known, who, being by me duly sworn, did say that (s)he is the Executive Director
of the Authority named in the foregoing instrument; that the seal affixed to said
instrument is the seal of said Authority; that said instrument was Sign~nd sea~e~
in behalf of said Authority by authority of its gOve.rningbod.y; and said /?f::;!/;,,?
acknowledged said instrument to be the free act~n~deed, of said Aut orit "
/@(?/(!~&/t0f
Notary Public
~~;J!',t'i.l:il,4\'iV.w41~ ~ ;::i;:,-,-,; ~;...';" .; ~ ;:;" ,;'';';: ;:~'.<;;,~: " :'
'" ./.i1jm~i4' ' , '1'( >, ! 1
"? /t'5~i':&(:~ "
ilt.'~.:4j\ ,;" ,G 1~lm..;,,,..ou,:)
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~'l:~~;I~ t.'I;,~, :)[1;(11 E4J ,inu . '~!.: ~';(~UU, ~
,,'-' ;',;11'.:..',:';":' ";\t",f\"F;.M'f)',?i~I'~"i~j).tL?"ifl
609079
~fFlCf: llf CbUHf Y l'fCUlmrR
WfHGlH CQUN r (. t.I:NNESO fA
cr PilrfFO rr I'i >11 f 11
J\~[:/Ul i,':_r~J:<:-i-0 (.~
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\j~~, 't-\N SS~6~~
RETURN TO:
DJG92439 City of Monticello
MN19D-50 Ollie Koropchak C-2
250 E Broadway
Monticello MN 55362
96 DEe I 9 AM 8: 4 ~
MARCIA LA/HlO.CO RECORDER
BY~OEPUTY
$19,50 INVOICE
WCR
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HRA Agenda - 10/04/2006
5.
Consideration of a request from Karlsbur!!er Foods. Inc. for compensation of over-run
costs associated with earthwork on Lot 1. Block 1. Otter Creek Crossin!! 2nd Addition.
(Purchase and Redevelopment Contract between HRA and SL Real Estate Holdings,
LLC)
A. Reference and back!!round:
A meeting between the Mike Maher and Paul Cserpes, Karlsburger Foods, Inc.; Dave Panek
and Bill Trout, Keystone Design Build, Inc.; Schluender Construction Company; Shibani
Bisson and Roger, WSB, Inc.; and myself was held at the site on September 13, 2006. The
meeting was to discuss the over-run costs associated with the preparation of the site (2.124
developable acres.) The over-run costs total $29,720 according to the attached invoice. I
was informed this was in addition to the grading costs and I requested a copy of the general
grading invoice per the Contract. As of September 25, I have not received the general
grading invoice.
It appears when Schluender was preparing the site an area of black or unsuitable soil was
discovered and corrected. There was some discussion of disagreement between Schluender,
Keystone, and WSB, Inc. Shibani Bisson, WSB, Inc., and perhaps, someone from Keystone
will attend the HRA meeting.
I noted to them that the Purchase and Redevelopment Contract between the HRA and SL Real
Estate Holdings, Inc. dated April 12, 2006, clearly defines the HRA has no responsibility
beyond the General Grading costs of$.12 per square foot for the 2.124 acres upon receiving
an invoice or other reasonable evidence ofthe total general grading costs. [Section 3.6 (b).]
Section 3.6 (a) notes before the closing, the redeveloper has the right to enter the property for
environmental and soils testing ........ and (c) notes the redeveloper acknowledges the HRA
makes no representations or warranties as to the condition ofthe soils ............
Based on the fact that Schluender indicated the City forgave a portion of the replacement costs
for piping associated with the latest Blue Chip project and the HRA reimbursed Dahlheimer's
$27,300, in addition to the $.12 per square foot for general grading, for the removal of the
stockpile of black dirt placed on site prior to Dahlheimer's site selection; the redeveloper
requested to come before the HRA.
For purpose oflender financing: Soil borings, Independent Testing Tech, $800, and excavation,
backfill, and grading, Schluender, $29,630.
For your information, currently the remaining acres of Phase I acquisition (35 acres) and Phase
1
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BRA Agenda - 10/04/2006
II acquisition (53 acres) is being graded which means in the future, the HRA will convey
property as is and the Contracts will not include any language relative to general grading or
general grading costs reimbursement.
B. Alternative Action:
1. A motion to re-affirm the terms and conditions of the executed Purchase and
Redevelopment Contract between the HRA and SL Real Estate Holdings LLC dated
April 12, 2006.
2. A motion to amend the Purchase and Redevelopment Contract between the HRA and
SL Real Estate Holdings LLC agreeing to compensate the redeveloper an additional
$ for earthwork.
3. A motion to table any action.
C. Recommendation.
.
Although it is most unfortunate that Karlsburger incurred additional costs, it is the
recommendation of the HRA Treasurer and Executive Director that the HRA re-affirm the
terms and conditions of the Purchase and Redevelopment Contract.
D. SUDDortinl! Data:
Excerpt from the Contract, invoice for earthwork, soil borings, and email about meeting.
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2
EYSTONE
DESIGN BUILD,INC.
CHANGE AUTHORIZATION
22517 178TH AVENUE
COLD SPRING, MN 56320
320.685.8054 320.685.8853 (fax)
DATE: 09/05106
1"'" .- .=-,,=~ - 'f- --. ,- ^ -
l?'~':\::.;/"1\jl='~;I,,~l<(,,','hli)<~;J~~ -"'1.l~ , , ~
",,-d"- ,'$f""7_~t_"-'''_!i'''(&'~~Y;lo-1
~~~;;.;:;.,J,__~""~_D''->__:;;.w
PROJECT: Karlsburger Foods
CHANGE AUTHORIZATION #
2
TO: S L Real Estate Holdings. LLC
12450 Fernbrook Lane
Dayton, MN 55327
Altn: Mike Maher
KEYSTONE PROJECT #
05003
CONTRACT DATE:
4120/06
It is hereby mutually agreed that when this change authorization has been signed by the contracting parties the following described
changes in the work required by the contract shall be executed by the contractor without changing the terms of the contract except
as herein stipulated and agreed:
DESCRIPTION OF CHANGE:
Cost of soil corrections
Section
2200
Descriotion
EARTHWORK
Remove 6,396 cubic yards of unsuitable soils under building and parking lot
Excavate, stockpile and respread topsoil off of hill behind building
Excavate, place and compact sand from hill behind building
$12,472
$975
$14,858
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Subtotal
5% Contractor Fee
$28.305
$1,415
Total:
$29,720
All Prices include saies tax
CONTRACTOR:
OWNER
S L Real Estate Holdings, LLC
12450 Fernbrook Lane
Dayton, MN 55327
BY (V'\ :J_^.\ 14 iV\ JA
/....-
DATE:
"1-7-0(0
09/05/2005 12:47
7533231745
KARLS BURGER FOODS
PAGE 01/01
FROI" ; 5CHLUENDER C0N5TRLCT I ON
r RX NO, : 7632955544 Aug, 23 2006 09: i7AM P1
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, ,3331- 9Ot!i Strett . MlmtlaCCo, M11I~.5536 " ""."" ,','
~,(163) 29!i-5784 . F~: (763) 195::~~;W" '" ,:'?:~C:H\t~'~.: ":
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Keystone Design Build. Inc.
22517 178th Ave. Suite 210
Cold Spring, MN 56320
320-685-8054 Office
320-685-8853 Fax
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Attn: Dave or Bill
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Karlsburger Foods. Monticello, MN
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Soli Corrections
Unsuitable Soil 6,396 yards @ $L95
Excavate & stockpile Off site
Respread 500 yards @ $1.95'
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$12,4'72:20
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Sand 6,460 yards
Excavate, place & compact
@
$2.30.
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$14,858.00
., $28,305.20
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Robert Schluender
763-295-6784
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Please sign, date and fax back to 763-295-5544
Signature
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ARTICLE rn
Acquisition and Convevance of PropertY
Section 3.1. Convevance of the Property. As of the date of this Agreement, the City owns
the Redevelopment Property and has agreed to transfer title to the Authority. The Authority will
convey title to and possession of the Redevelopment Property to the Redeveloper, subject to all the
terms and conditions of this Agreement. The parties agree and understand that this Agreement
supersedes in all respects the Preliminary Agreement.
Section 3.2. Purchase Price; Provisions for Payment. (a) The purchase price to be paid to
the Authority by the Redeveloper in exchange for the conveyance of the Redevelopment Property is
$101,433.82. The parties agree and understand the purchase price represents 87,120 square feet]
(two acres) at a price of $1.00 per square foot, and 5401.44 square feet (.124 acres) at a price of
$2.65 per square foot. An additional 70,610.76 square feet (1.621 acres) shall be conveyed to the
Redeveloper for no additional consideration, but subject to an easement in favor of the City for
drainage and utility purposes, as described in Section 4.5. The purchase price shall be payable by
the Redeveloper as follows:
(i) earnest money in the amount of $ 10,000, receipt of which the Authority
acknowledges upon execution in full of this Agreement; and
(ii) the balance payable in cash or certified check at Closing.
Section 3.3. Conditions of Convevance. (a) The Authority shall convey title to and
possession of the Redevelopment Property to the Redeveloper by a deed substantially in the form of
the deed attached as Schedule B to tlus Agreement. The Authority's obligation to convey the
Redevelopment Property to the Redeveloper is subject to satisfaction of the following tenns and
conditions:
(1) The Authority having approved Construction Plans for the Minimum
Improvements in accordance with Section 4.2.
(2) The Authority having approved financing for construction of the Minimum
Improvements tn accordance with Article VII hereof, and the Redeveloper having closed on
such permanent financing at or before Closing on transfer of title to the Redevelopment
Property to the Redeveloper.
(3) The Redeveloper having reviewed and approved (or waived objections to)
title to the Redevelopment Propelty as set forth in Section 3.5.
(4) The Redeveloper having reviewed and approved (or waived objections to)
soil and environmental conditions as set forth in Section 3.6.
(5)
No uncured Event of Default under this Agreement.
28141Sv5 MNI iv(N[9Q.123
7
.
Conditions (1), (2). and (5) are solely for the benefit of the Authority, and may be waived by the
Authority. Conditions (3) and (4) are solely for the benefit of the Redeveloper, and may be waived
by the Redeveloper
(b) The closing on conveyance of the Redevelopment Property from the Authority to the
Redeveloper shall occur upon satisfaction of the conditions specified In this Section, but no later
than June 30, 2006 or at such earlier date as the parties hereto agree in writing ("Closing").
(c) [f construction of the trunk sanitary sewer across the Redevelopment Property has
not been completed before Closing, the Redeveloper agrees to grant a temporary construction
easement in favor of the City for construction of said trunk sanitary sewer, encumbering that portion
of the Redevelopment Property legally described as follows:
The north 110.00 feet of the west 176.63 feet of Lot l, Block 1, Otter Creek 2nd
Addition, according to said plat on file and of record in the office of the County
Recorder, Wright County, Minnesota. Except that part which lies within the
existing platted utility and drainage easements.
Section 3.4. Place of Document Execution, Deliverv and Recording, Costs. (a) Unless
othenvise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all
deeds, documents and the payment of any purchase price shall be made at the offices of the title
company selected by Redeveloper or such other location to which the parties may agree.
.
(b) The deed shall be in recordable form and shall be promptly recorded in the proper
office for the recordation of deeds and other instruments pertaining to the Redevelopment
Propelty. At Closing, the Redeveloper shall pay: recording costs for the deed (excluding state
deed tax), title insurance commitment fees and premiums, if any, and title company closing fees,
if any; and a portion of City trunk fees in the amount of $1,635, The parties agree and
understand that the Redevelopment Property is exempt from propelty taxes for taxes payable in
2006.
(c) At Closing the Authority shall payor cause to be paid the state deed tax, costs of
recording any instruments used to clear title encumbrances, all outstanding special assessments
against Redevelopment Property, and all City trunk fees in excess of the amount paid by
Redeveloper under paragraph (b) above. The parties agree and understand that all such costs are
included in the purchase plice payable under Section 3.2, except to the extent otherwise desclibed in
Section 3.7.
.
Section 3.5. Title. (a) As soon as practicable after the date of this Agreement, the
Redeveloper shall obtain a conunitment for the issuance of a policy of title for the Redevelopment
Property. The Redeveloper shall have thirty (30) days from the date of its receipt of such
commitment to review the state of title to the Development Property and to provide the Authority
with a list of wlitten objections to such title. Upon receipt of the Redeveloper's list of written
objections, the Authority shall proceed in good faith and with all due diligence to attempt to cure the
objections made by the Redeveloper In the event that the Authority has failed to cure objections
2314~5v5 \{NI MNI90-12J
8
(b) The Authority shall take no actions to encumber title to the Redevelopment Property
between the date of this Agreement and the time the deed is delivered to the Redeveloper. The
Authority expressly agrees that it will not cause or permit the attachment of any mechanics,
attorneys, or other liens to the Redevelopment Property prior to Closing. Upon Closing, the
Authority is obligated to pay all costs to discharge any encumbrances to the Redevelopment
Property attributable to actions of the Authority, its employees, officers, agents or consultants,
including without limitation any architect, contractor and or engineer.
. within sixty (60) days after its receipt of the Redeveloper's list of such objections, the Redeveloper
may by the giving of written notice to the Authority (i) terminate this Agreement, upon the receipt
of which this Agreement shall be null and void and neither party shall have any liability hereunder,
or (ii) waive the objections and proceed to Closing. Upon termination, the Authority shall promptly
return to the Redeveloper any earnest money. The Authority shall have no obligation to take any
action to clear defects in the title to the Redevelopment Property, other than the good faith efforts
described above.
.
(c) TIle Redeveloper shall take no actions to encumber title to the Redevelopment
Property between the date of this Agreement and the time the deed is delivered to the Redeveloper.
The Redeveloper expressly agrees that it will not cause or permit the attachment of any mechanics,
attorneys, or other liens to the Redevelopment Property prior to Closing. Notwithstanding
termination of this Agreement prior to Closing, Redeveloper is obligated to pay all costs to
discharge any encumbrances to the Redevelopment Property attributable to actions of Redeveloper,
its employees, officers, agents or consultants, including without limitation any architect, contractor
and or engineer.
Section 3.6. Soils. Environmental Conditions, Grading. (a) Before closing on conveyancej
of the Redevelopment Property from the Authority to the Redeveloper, the Redeveloper may enter
the Redevelopment Property and conduct any other environmental or soils studies deemed
necessary by the Redeveloper. If, at least 10 days before Closing the Redeveloper determines that
hazardous waste or other pollutants as defined under federal and state law exist on the property, or
that the soils are otherwise unsuitable for construction of the Minimum Improvements, the
Redeveloper may at its option terminate this Agreement by giving written notice to the Authority,
upon receipt of which this Agreement shall be null and void and neither party shall have any
liability hereunder, except the Authority shall promptly return to the Redeveloper any earnest
money.
.
(b) The Redeveloper will undertake (or cause to be undertaken) General Grading of
the Buildable Redevelopment Property (defined as all of the Redevelopment Property except for
the 1.62 I -acre portion subject to a drainage easement, as shown on the plat attached as Schedule
C) and the Authority will reimburse the Redeveloper for such grading at a rate of $. I 2/square 'f
foot. For purposes of this Section, the term "General Grading" means: stripping top soil off the
Buildable Redevelopment Property to a maximum depth of two feet; saving all such top soil on
the Buildable Redevelopment Property; cutting existing high areas and filling [ow areas with
existing suitable material; applying and grading so much of the saved top soil as to have an
average thickness of four inches of top soil over the Buildable Redevelopment Property; all
according to plans approved by the City's consulting engineer, WSB & Associates, [nc.. If the
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23t415,SMN1MN190-123 'b"''). ,v'Y '-',\
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total cost incUlTed by the Redeveloper to undertake General Grading exceeds S.12/square foot,
such excess cost is the Redeveloper's sole responsibility, The Redeveloper must provide to the
Authority invoices due or payable or other reasonable evidence of the total General Grading cost.
(c) The Redeveloper acknowledges that the Authority makes no representations of]
warranties as to the condition of the soils on the Redevelopment Property or its fitness for
construction of the Minimum [mprovements or any other purpose for which the Redeveloper may
make use of such property. The Redeveloper further agrees that it will indemnify, defend, and hold
harmless the Authority, the City, and their governing body members, officers, and employees, from
any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the
Redevelopment Property
.
Section 3.7. Advance of Land and other Costs: Tax Increment Interfund Loan. (al The
Authority has determined that the fair market price of the Redevelopment Property is
5245,181.82, or 52.65 per square foot. This price represents the total invested or to be invested
by the Authority or City in making the Redevelopment Property available for commercial
development, including the value of the raw land and all costs of special assessments for
infrastructure, City trunk fees (except those paid by Redeveloper under Section 3.3), general
grading, platting, administrative and holding costs. As described in Section 3.2 hereof, the
purchase price for conveyance of the Redevelopment Property represents a reduction from the
fair market price from 52.65 per square foot to $ 1.00 per square foot for a two-acre portion of the
Redevelopment Property. Therefore, at Closing the Authority will forgo receipt of the full
market price of the Redevelopment Property, which represents an advance of Authority funds in
the amount of $143,748,00, less the amount paid by Redeveloper for City trunk fees in the
amount of$I,635.00, for a net advance of$142,113.00.
(b) The Authority will treat the advance described in paragraph (a) as an interfund
loan (the "Interfund Loan") within the meaning of Section 469.178, Subdivision 7 of the TIF
Act. The total original principal amount of the Interfund Loan is $142,113. The terms of the
Interflmd Loan are described in the resolution attached as Schedule C (the "Loan Resolution").
The Authority will pledge Available Tax Increment, as defined in the Loan Resolution, to
payment of the Interfund Loan, The Redeveloper has no rights or interest in any Tax Increment.
Section 3,8. Business Subsidv Agreement. The provisions of this Section constitute the
"business subsidy agreement" for the purposes of the Business Subsidy Act.
(a) General Terms. The parties agree and represent to each other as follows:
(1) The subsidy provided to the Redeveloper consists of the plincipal amount of the
lnterfund Loan described in Section 3,7. The Interfund Loan is payable from a portion of
the Tax [ncrements from the TIT District, an economic development tax increment
financing distlict.
.
(2) The public purposes of the subsidy are to facilitate development of the
Authority's industrial park, increase net jobs in the City and the State, and increase the tax
base of the City and the State.
281415...5 iVNt iv1N190-l23
SEP-26-2006 09:02
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337 31ST AVENUE SOUTH. PO SOX 325. WAITE PARK, MN 56387
OFFICE: 32o.253-43S1I . 'AX: sao.253-4S47
14, 2006
Karlsburpr Foods
Monticello, Minnesota
Re:
.
Dw Mr. Panek,
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"'''''"IIM IS site plill abowiua wbm we believe 10 be 1he approximate locationa of
the klU . P for the abovO ret'=nced projcrt A1i we dlscu8aed prior to, our
ill . OD, it was difDcult for us to IDll8te precisely wherO !be b\lilcUna was to
be loe The diffioulty came from Dot bavin& olearly recognizable )ANlmA.ka in
addition an irrcau1arly shaped lot and IS building DOt altthlg squm: to a curved.
roadWay. 'I'h=e wac no propeftY corner pins visible to us wi tII.e bbilding
comers not llUl'Vt)'ed.
We reco at 11M time tb8t the rito lwt been araded llDd chere were visible
sips of me previous eanhwor\c. It IpJIUlICI! that the tOpSOU had been stripped
and po85i ly some sand removed from the 8Outhem.lower portion of1he site. It
also 'SOlDO topsoil bad been spread aaosa the northenI. h1shor portion of
the atte.
it was O\U' o,Pi:DiOl1 thIt it would be more likely to find tin bell_
spread topsou, rather than bcneadl what appeared to be an area that
had been into native sands. BecI8UIle of this assumption llnd the difficulty in
precisely O"Jlrll\g the buUdlng, our bclrin&' appear to have ".,'.......4 their m-......
wgct, w lOh was the bnnljl-"g area.
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Sp we apolo8lze for the cllfliculty this bas caused cluriDg constructiOl1 a&r
bwied fill 14 tile aouthom area of the lite, where 00 borinS5 were
It was our mtmuon to find my fill or 1mIWtable soUl by ~
OUI' ~ en the blghe: area oftlte site, which ~ bolievcd were most likely to
~ $1 besc4 0!l1he ~on oftM $lte at the time of OW' explaredon.
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U7 316" AVENUE SC\JTH' PO BOX 325' WAITE F'AAl(, MN 61138'1
OFJIICE! S20-25G-4Sae. FAX: 320.2Il1-4ll47
Mr, Dave PWk
~ Dclllp Build, Inc.
22511171l1ll AWlIlUfl', Suite:!10
. Ca1ci spima. MN 56320
at; 06.237 Karlsblqcr Foods
MaIItI;eUo, MinnCIOtI.
.
Dear Mr, PlllSek,
AI reqtUlIted IZki ~ by you, we l'llOIIIIUy Go.lI4\1Ol:Id tbur IIpIit-apoGn IUSllI'
IvwoIotp 1& tbe PfllPlllld Klrilburter Food, buildlDa .11\ MoIltioe1lo. MN. 1:'b'
~ of IlUl' boImp was to asids& ID ~1be pneral autiability!ll:
lluJldIDs JlIllpO.M8.
. TIl6 sill is 10CU84 '011111 ofCheIHa RDId betwes CoIll11)' Road 39 cui SCIboo.l
iirCCt in the new CiI;y IDdI,lIiTlal Padr. lID 1bc aoulbWOlt lido oflbo C~ of
MOlIlicello.. The litll hlIs. be8u. ~ .,....ud _showl . Dt IQIllI JlNV\OUI
_lI>....'CIIk. n ApjlC&l'l ihlt !be tqlsoll have ba:n Sll:ipped 8IIli pouibly aqme II1II1
~ &am 1M I~ low.. por\:ioD o!tho .' and acme Iopaoi1 bai bc:ce
sp:ad.... Ibo '*1tit, hlg1u:r portioll o1tho alt:. .
On.l'lm. 19, 200&, WII aOll~ fllIIr (4) .on barlqJ iii !0C'''Ii,,-1lll'ON lIle lot..
The Dorblaa ItDmIly toOOIIIItINd 8OI:l\I tQJIIoI1 W GIplIII of 16 to :u iDQhea.
Below -.011, bo.nD8I B-11ll4 803 ~ IIlIDIIliIIld,y flU (9, SP-SM)
tD depChs on.5 tMt S,1Icwed I7y Illdlve, c1llA1IlllIIII. Below tile lOpIou. bcrIIlp
B-1 aDd 1)..40 ~'lI_VO, 01_... (SP) 10 -inmon. Oroundwater
waa llQt mcountcI'cd in IllY of tho borillp.
Based em. ~ reaul18 of ou: bariIlp, du: lim ~ to bewellllllW far Ibc
prapcHd COlIIl1'IlOIioo of & wareboun 1ooll'tIi"". .
.
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PIlrick A. J~ PE
GcoIllchnlca1 DiWicm MlDa&er
.
P,05/09
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Page 1 of 1
. Ollie Koropchak
From: Mike Maher [Mike@karlsburger.com]
Sent: Wednesday, September 06,2006 1 :01 PM
To: Ollie Koropchak
Subject: Re: Thanks for attending yesterday late afternoon.
Ollie, When we can set up a meeting to review the additional excavating costs that came up. WSB asked
keystone to move a hili and level the lot, then there aiso was a pocket of topsoil that had to be removed. And
finally the portion of the easement land that Schluender leveied. All together I received an additional ~
$29,000 of which i do not believe any of it should be mine. I have Monday the 11 th and Wednesday t
available. We should probably have WSB, you, Keystone, Schluender and myseif there to figure out who, how
and what should be paid for on the invoice. Let me know what works. Thanks, Mike
----- Original Message -----
From: Ollie Koroochak
To: Mike,Maher
Sent: Wednesday, September 06, 2006 11 :15 AM
Subject: RE: Thanks for attending yesterday late afternoon.
Great.
.
From: Mike Maher [maiito:Mike@karlsburger.com]
Sent: Wednesday, September 06, 2006 11:06 AM
To: Ollie Koropchak
Subject: Re: Thanks for attending yesterday late afternoon.
Hi Ollie, I just received the letter from Wells Fargo and will fax it to you so please look for it. Thanks, Mike
----- Original Message -----
From: Ollie Koroochak
To: Mike Maher
Sent: Wednesday, September 06, 2006 9:46 AM
Subject: Thanks for attending yesterday late afternoon.
Attached is a copy of the Approval Form for you to review and execute. I'm faxing this off to the EDA Attorney
to draft the Loan Agreement as the document must be available for review by public at city hall as part of the
public hearing and business subsidy law. I did check the Purchase and Development Contract and the job
and wage-levels are consistent. I still do need before the September 19 public hearing a letter from Wells
Fargo relative to the $200,000 line-of-credit. Is it my understanding, Karlsburger wili pay cash for the
remaining balance of the total machinery & equipment. In other words, the EDA loan is in first position for
M&E. As I mentioned, the EDA loan will probably be disbursed upon Karisburger accepting the M&E as a
reimbursement and upon evidence of payment by Karlsburger. I'll check this with the EDA attorney. Let you
know about the meeting relative to grading. I'll be out of the office most of tomorrow beginning at 9:30 a.m.
Thanks Ollie
.
9/6/2006
Page 1 of2
.
Ollie Koropchak
".. ._.._..___.".____w_~.,_,. .. "'. ___, .M~' .._,..._,__w....__."..w.__>_._.m ,_ ,._....___._.__,_.... ...__,.__..~_.~,_....,.."..__.._"..__n._"''''__'_''_'__''
From: Shibani Bisson [Sbisson@wsbeng.com]
.
Sent: Friday, September 08,200610:10 AM
To: Ollie Koropchak
Cc: Bret Weiss
Subject: RE: Thanks for attending yesterday late afternoon.
Ollie-
That will work for me. I know that Dave Panek will not be available that day, it would be nice to have him there
since I had all my discussions with him. As I said before, they moved the hill and leveled the lot on their own
because they needed the material to grade the site. That is at their cost, as per the purchase agreement. My
original discussion with Dave before they started grading, was that he was going to have Schluender move the hill
and stockpile the material on the adjacent City property since it would be of benefit to them to level it for when the
expand the site in the future. When they actually starting grading, it turned out that they needed the material from
the hill to fill in the topsoil pocket they had to remove. Apparently, their soil borings did not show this topsoil
pocket. I spoke to Dave Panek about all of this and he acknowledges these discussions. He thought that maybe
Mike thought the site would be "pad ready". Anyway, we should discuss prior to the meeting.
Shibani Bisson, PE
Project Manager
.
WSB & Associates, Inc.
701 Xenia Avenue, Suite 300
Minneapolis, MN 55416
Direct 763-287-7162
General 763-541-4800
Fax 763-541-1700
--~-----~.------~---
From: Ollie Koropchak [mailto:Ollie,Koropchak@ci.monticello.mn.us]
Sent: Friday, September 08, 2006 9:S6 AM
To: Shibani Bisson; Bret Weiss
Subject: FW: Thanks for attending yesterday late afternoon.
-----~,._-------_._~---'~----.-~---'_.~...-~-_.._.__."--~---_.."'----~-.--~~-------_._-_._--_..~--_.__._--'----'-"--
From: Mike Maher [mailto:Mike@karlsburger.com]
Sent: Thursday, September 07, 2006 2:45 PM
To: Ollie Koropchak
Subject: Re: Thanks for attending yesterday late afternoon,
HI Ollie, Does 1 :00 pm at the building site next Wednesday work for you.
.
Please let me know, so I can schedule the people on my end. Thanks, Mike
----- Original Message -----
From: Ollie Koroochak
To: Mike Maher
Cc: Shibani Bisson
Sent: Wednesday, September 06, 2006 2:01 PM
Subject: RE: Thanks for attending yesterday late afternoon.
9/8/2006
.
.
.
HRA Agenda -10/04/2006
6. Consideration to hear follow-up of meetinl! between Frie. Conroy. and Koropchak.
Commissioner Frie, Attorney Conroy, and Koropchak met on September 21 and Frie
explained to Conroy the intent of the HRA. Requesting the use of his service and expertise to
negotiate potential purchase of the Springborg and Froslie properties as a start. Frie provided
some history and said he would contact Heartland Appraisal for some land value comparisons
plus 15% as directed by the HRA commissioners. Offers must be contingent upon each other
and lease-back is an option. Koropchak informed Conroy the HRA must offer relocation
benefits to occupants and that the HRA meets the first Wednesday of each month at 6:00 p.m.
It was agreed that his service to the HRA would be at a reduced rate of$150.00 per hour.
Frie and Koropchak did not expect a report from him by the October meeting.
I
.
.
.
HRA Agenda - 10/04/2006
7.
Consideration to authorize vavrnent ofHRA bills.
Recommendation is to authorize payment of invoices attached.
1
08-03-2006
NS Prepared Document Books
1.00
155.00
.
Ehlers & Associates, Inc.
leaders in Public Finance
3060 Centre Pointe Drive
Roseville, MN 55113
(651) 697-8500
Financial Advisory Services Invoice
Monticello Housing And Redevelopment Authority
505 Walnut Street, Suite 1
Monticello, MN 55362-8822
Invoice #:
Invoice Date:
333470
September 11, 2006
Project: 2006 Modification of District 1-2 and 1-24
Date Worked k Description of Services
Hours
Amount
1.00 $155.00
.
i;
t Amount Due This Invoice
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OK TO PAY? OI\'L
$155.00
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(Detach at perforation and return lower portion to Ehlers & Associates, Inc.)
Monticello Housing And Redevelopment Authority
Invoice #:
Invoice Date:
333470
September 11, 2006
Amount Due This Invoice
$155:00 i
.
Please remit payment to: Ehlers & Associates, Inc.
Attn: Accounts Receivable
3060 Centre Pointe Drive
Roseville, MN 55113
Due Upon Receipt
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
Tax ID No. 41-1225694
September 11, 2006
Throuah Julv 31.2006
MN190-00123 Economic Development TIF i-37 (Karlsburger Foods)
.
637.00
Total Current Billing:
637.00
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no part of it has bee id.
Si9nature of aimant
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City of Monticello
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
September 11, 2006
Invoice # 73236
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
MN190-00123
Economic Development TIF 1-37 (Karlsburger Foods)
Through July 31,2006
For All Legal Services As Follows:
7/12/2006 NKE Phone call with Commercial Partners re title commitment;
review title commitment
7/13/2006
.
7/13/2006
712112006
713112006
713112006
.
Hours
0.25
NKE Intraoffice meeting with M. Ingram; emall with O. 0.25
Koropchak
MNI Revise first amendment to contract, changing closing 0040
date; consultation with N England about estimated date of
closing; verify with Ollie and send amendment.
SJB Review TIF transcript; phone call with Ruff re same 0040
NKE Review development agreement and tille commitment; 3.00
prepare closing documents; emall to 0 Koropchak; phone
call with Commercial Partners.
MNI Review closing documents from N England. 0.70
Total Services:
$
Total Services and Disbursements:$
-
Ol< TO PAY? 011.(;
Code:
Initial
Amount
27.50
27.50
64.00
76.00
330.00
112.00
637.00
637.00
,
Wright County Auditor-Treasurer
10 Second Street NW Room 230
Buffalo, MN 55313-1195
Invoice: A06- TIF 634
Date: 09/13/2006
Nam,
EHLERS &
Address
Description / Service Total
~
TIF DISTRICT CERTIFICATION - #634 r>. :+:p:.- P. -, .. 375.60 24.40 400.00
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.
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Wright County Auditor-Treasurer
10 Second Street NW Room 230
Buffalo, MN 55313-1195
Invoice:
A06. TIF 635
Date:
09/13/2006
Name
Address
Descrrptlon / Service Total
~
TIF DISTRICT CERTIFICATION - #635 375.60 24.40 400.00
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A,O
Wright County Auditor-Treasurer
10 Second Street NW Room 230
Buffalo, MN 55313-1195
Invoice: A06- TI F 636
Date: 09/13/2006
375.60
24.40
400.00
Total
375.60
24.40
400.00
.
.
.
.
HRA Agenda - 10/04/2006
8.
Economic Develooment Director's Report.
LEADS:
a) Out-of-state aluminum and glass company - 65,000 sq ft building, 50 jobs initially up to 80
jobs. Upon receiving and analyzing their preliminary application for the discount price of $1.00
per sq. ft., the company wage levels did not meet the wage criteria of - at least an average of
$16.00 per hour, exclusive of benefit. After review with the HRA, they were offered 8 acres at
$3.00 per sq ft plus trunk fees. Based on a map with proposed boundary lines the company
has indicated a site within the business center. The attached building was recently constructed
in Utah. They are looking at five other communities in MN. Back in MN in October.
b) Albertville company - With the Otter Creek 3rd Addition Plat - Lot 2, Block 1, was offered
this company for a $1.00 per square foot. Looking at 2007 project. Small project 10,000 sq
ft. It appears they accepted our offer, I need to make sure they know the A VR Plant is next
door.
c) Washburn Computer Group - Building permit issued September 7 for renovation of the
Clow Stamping building. Plans call for eliminating front dock doors and reducing the size of the
overhead doors along Fallon Avenue. Inside renovations include office and construction of an
area for repair stations.
d) Precision Technologies - Started moving process from Rogers.
e) Karlsburger Foods, Inc. - EDA loan of $200,000 approved for machinery & equipment.
Construction moving along. Reported kids on the construction area. See attached.
f) Medical treatment facility - According to state, Monticello still on the list.
g) Custom manufacturer of die cut and thermo formed components. Message 9/22/06
OTTER CREEK 3rd ADDITION: The plat for the 53 acres of additional land purchased by the
city from Chadwick is on the Council agenda for September 25 to approve the modifications.
Fourteen acres are for A YR. General grading of the entire area has commenced including
preparation of the A VR site in anticipation of their fall construction. Council will also award
the bid for the construction of the utilities and extension of Dalton Avenue, Dalton Court, and
portion of Dalton Way on September 25.
RECONSTRUCTION OF CHELSEA ROAD: At September 25 Council meeting, Council
members will consider authorizing preliminary survey and feasibility study for reconstruction of
Chelsea Road between Fallon Avenue and County Road 18.
CHELSEA ROAD WEST LIGHTING project in city business center was deleted by the
Council. As the developer of the industrial park, to enhance security and safety, and to set an
example, I was surprised. The companies have been advised that lighting is part of the no
assessment.
FIBER OPTICS - The Council will hear the findings ofthe Feasibility Study and consider the
recommendation ofthe Task Force at the September 25 meeting.
1
.
HRA Agenda -10/04/2006
MEETINGS -
* Out-door Storage - I attended the meeting with Jeff, Angela, Bill, and Mary on September
20
* Gave Steve Sussman, Positively Minnesota, on September II a tour of the Business Center
and other developed areas. Working with him on proposed aluminum and glass company and
medical facility projects.
* Worked a tee-box at the Wright County Economic Development Partnership Golf Outing in
Buffalo on September 7. Marketed the Business Center. WSB Team of Bret, Jeff, Rick and
Steve Grittman took first place.
* Meeting with real estate firm who's client are industrial and technical firm.
* Continue to visit with existing industries on future plans.
* Follow-up meeting for HRA between Frie, Conroy, and myself.
TAX ABATEMENT - Continue to draft policies for HRA and Council to consider.
HOUSEKEEPING - Followup on recorded mortgage for Transformation Horne Loan and
EDA Loan. GMEF Loan No. 019 balloon payment plus accrued interest paid on September
27. Three inquiries on Transformation Horne Loan Program.
.
.
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. Ollie Koropchak
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__" _.._.._.._.~._.__________.___"___ ._.___.____...._____....__ .__ ..___~__,.___w~__..._._._.._ ..___..._,______.,._~_
From: Mike Maher [Mike@karlsburger.com]
Sent: Monday, September 25, 2006 7:57 AM
To: Ollie Koropchak
Subject: Re: HRA Meeting
Hi Ollie,
~ V", We "",, 00'" h,.,", k'd' '0' "",,'," Md d" b;k" ,,,'CO ,rno"d Md ,,,", ""' bo'"", Th~ ~,.,j
....0L-. also been riding on the mound of Dirt behind our property on the cities property.
Mike
----- Originai Message -----
From: Ollie Koropchak
To: Mike Maher
Sent: Wednesday, September 20, 2006 1 :42 PM
Subject: RE: HRA Meeting
.
The HRA meeting is Wednesday, October 4,2006,6:00 p.m. in the Boom Room, in the Community Center. For
your information, I should be getting the revised Loan Agreement this afternoon and I'll forward it to you. I've
written the council agenda item for the 25th of September, they just ratify that the EDA approved your loan
accordance to the Guidelines. No need to be there as on the consent agenda. Secondly, regarding the HRA or
EDA, the commissioners are appointed by the Council each January, those whose term expires. There's also
the IDC (Industrial Development Committee). Thirdly, I mailed you a gratis invitation to the Industrial
Luncheon. Do I have a taker? I've enjoyed working with Karlsburger Foods and look forward to completion of
your facility and involvement in the community. Mike, did you say last night that people are driving within your
property along Chelsea? I need to keep the appropriate people aware of any potential security or safety
issues. Ollie
,--,,-~~----'~---~'-----'--'--
From: Mike Maher (mailto:Mike@karlsburger.com]
Sent: Wednesday, September 20, 2006 12:55 PM
To: Ollie Koropchak
Subject: HRA Meeting
Hi Ollie,
Can you confirm date and time of the HRA meeting so I can put it on my schedule.
Also wanted to let you know that I enjoy working with you and both of your committees. After I am established
as a Monticello Community member I would be interested in becoming involved with the community and
possibly the Economic Development Association.
Maybe at a later point you can let me know what is involved with participating with these projects.
Thanks,
.
Mike
Michael H. Maher
President & CEO
Karlsburger Foods, Inc.
9/25/2006