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EDA Agenda - 02/09/2022AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 9th, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Sarah Rathlisberger and Hayden Stensgard 1. Call to Order 2. Roll Call 6:00 p.m. 3. Annual Business Meeting a. Consideration of electing EDA Officers b. Consideration of reviewing EDA Bylaws c. Consideration of reviewing EDA Enabling Resolution d. Consideration of EDA Financial Statements and Fund Balance Information 4. Consideration of Additional Agenda Items 5. Consent Agenda a. Consideration of Approving Regular Meeting Minutes —January 12th, 2022 b. Consideration of Approving Payment of Bills Regular Agenda 6. Consideration of Adopting Resolution #2022-02 Requesting the City Council call for a Public Hearing regarding the establishment of Economic TIF District #1-44 related to WashburnPOS's proposed facility expansion 7. Consideration of authorizing entering into a Professional Services Contract with Northland Securities, Inc. (NSI) in the amount of $9,200 for TIF District Analysis and Plan Preparation related to proposed establishment of Economic Development TIF District #1-44 8. Economic Development Director's Report 9. Closed Session - Consideration of Recessing to Closed Session to Develop or Consider Offers or Counteroffers for the Purchase or Sale of Real or Personal Property Pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3). PID #s 155010035100, 155223000020 10. Adjourn EDA Agenda: 02/09/22 3. Annual Business Meeting (JT) A. REFERENCE AND BACKGROUND: The EDA is required to hold an Annual Meeting each year to elect officers, make appointments as needed and consider Bylaw changes. The EDA's enabling resolution and Bylaws are attached for review. Staff would entertain any questions or requested clarifications on the documents; some items may require consultation with EDA legal counsel. The offices that need to be filled consist of President, Vice President and Treasurer. Staff can serve as the Secretary for recording meeting minutes. Also attached for review and discussion is the 2021 Year End Financial reports of the EDA Fund(s). Al. Staff Impact: There is minimal staff time involved in preparing the staff report for consideration of the Annual Business Meeting. A2. Budget Impact: No expected budget B. ALTERNATIVE ACTIONS: 1. Motion to elect 2022 officers; as President, as Vice President, and as Treasurer. 2. Motion to table election of 2022 EDA Officers C. ALTERNATIVE ACTIONS: 1. Motion to direct staff to prepare draft amendments to the EDA Enabling Resolution or Bylaws as follows: (amendments to the Enabling Resolution require a public hearing). 2. Motion of other. D. STAFF RECOMMENDATION: Staff defers to the EDA for appointment of officers. Currently, staff do not have any recommended amendments to the Enabling Resolution or Bylaws and defers to the EDA regarding Alternative Action C. E. SUPPORTING DATA: A. EDA Bylaws B. EDA Enabling Resolution C. EDA 2021 Year -End Financial Reports BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.1081, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution"). ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such 1 325599v9MN190-130 time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by any Authority -approved method, including without limitation check, wire transfer, or credit card; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or incapacitated. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the Board of Commissioners, shall be designated as Executive Director of the Authority. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. 2 325599v9MN190-130 Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd and 4d' Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employ. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Section 3. Legal Services. The Authority may use the services of the city attorney or 3 325599v9MN190-130 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Sppplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing. The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution. Section 2. Limitations of Power. Resolution. Shall be in accordance with the Enabling ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution, the Enabling Resolution shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: August 14, 2019. Signed: President (Seal) Executive Director 4 325599v9MN190-130 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO.2012-021 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ("City") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City. 1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title II, Chapter 3 (the "Enabling Ordinance"), the City established the City of Monticello Economic Development Authority ("EDA"), for the purpose of coordinating and administering economic development activities in and for the City. 1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution"), which superceded the Enabling Ordinance in all respects. 1.04. The City Council has now determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.05. The City Council has, in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the modified Enabling Resolution. 1.06. This resolution constitutes an amendment and restatement of the Enabling Resolution of January 14, 2008, and supercedes such Enabling Resolution in all respects. Section 2. Enabling Authority. 2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated by this resolution. 2.02. The EDA shall be composed of 7 members to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the members shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) members shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non -Council members shall be appointed for six -year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership, when any member ends EDA membership prior to expiration of his or her term of office, on the day following the expiration of a member's term of office, or when a member is removed by the City Council subject to the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new term or the balance of the unexpired term, as applicable, in the manner in which the original appointment was made. 2.05. All of the members who are not members of the City Council must be either residents of the City, business -owners in the City, or property -owners in the City. 2.06. All members shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the EDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A member must not serve as president and vice president at the same time. The other offices may be held by the same member. The other offices of the secretary and assistant treasurer need not be held by a member. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each member on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The Economic Development Director shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the FDA may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 5. Functions, Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act. 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the "Fund") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the EDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, famish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following; (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defined in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. ADOPTED BY the City Council of the City of Monticello on this 27th day of February, 2012. CITY OF MONTICELLO eel ze�l—1 Clint Herbst, Mayor ATTEST: JeOW City Administrator Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program Dec 31, 2021 - Unaudited ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Total fund balance TOTAL LIABILITIES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 TIF 29 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch $ 806,224 $ 918,217 $ - $ 18,001 $ 131,947 $ 104,220 $ 504,232 $ 174,076 $ 193,964 1,553 - - - - - 2,898 - - 955 - - - - - 1,835 - - 136,782 - - 731,000 - - - - 3,752 - - - - - - - - - 316,834 - - - - - - - 3,513,757 - - - - - 163,200 - - $ 4,463,023 $ 1,235,051 $ - $ 749,001 $ 131,947 $ 104,220 $ 672,165 $ 174,076 $ 193,964 $ 1,929 $ - $ - $ - $ - $ - $ - $ - $ - - - 45,363 - - - - - - - - - - - - 163,200 - - 17,345 - - - - - - - - 19,274 - 45,363 - - - 163,200 - - 955 - - - - - 1,835 - - 3,752 - - - - - - - - 4,439,042 1,235,051 (45,363) 749,001 131,947 104,220 507,130 174,076 193,964 4,442,794 1,235,051 (45,363) 749,001 131,947 104,220 507,130 174,076 193,964 $ 4,463,023 $ 1,235,051 $ - $ 749,001 $ 131,947 $ 104,220 $ 672,165 $ 174,076 $ 193,964 121912013 12131/2023 1211012018 1213112024 1213112026 12131/2029 Redevelopment Housing Redevelopment Housing & Housing Housing Redevelopment (Continued) li Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program December 31, 2021 - Unaudited (Continued) ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Total fund balance TOTAL LIABILITIES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified TIF 30 TIF 34 TIF 39 (d) TIF 40 CMHP Interchange Otter Creek Briggs $ 113,146 $ 54,503 $ - $ 1,598 $ $ 113,146 $ 54,503 $ - $ 1,598 TIF 41 UMC CITY OF MONTICELLO TIF 42/43 GAAP Total Total )n EDA SCDP - $ 3,020,128 $ 779,363 4,451 - 2, 790 - 3,752 - 316,834 149,567 3,676,957 - $ 7,024,912 $ 928,930 $ - $ - $ - $ - $ - $ - $ - $ 1,929 $ - 91,419 - - - 731,000 - (867,782) - - - - - - - - (163,200) - - - - - - - - - 17,345 - 91,419 - - - 731,000 - (1,030,982) 19,274 - - - - - - - - 2,790 - 21,727 54,503 - 1,598 (731,000) _ 21,727 54,503 - 1,598 (731,000) $ 113,146 $ 54,503 $ - $ 1,598 $ - $ 12131/2029 1213112022 1213112021 1213112045 1213112030 Housing Redevelopment Economic Housing Economic Development Development - 3,752 - 163,200 6,999,096 928,930 163,200 7,002,848 928,930 $ (867,782) $ 7,024,912 $ 928,930 2 Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended December 31, 2021 - Unaudited Revenues Property taxes Tax increments Investment earnings Interest on loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Supplies Professional services - legal Professional services - other LPV Insurance Legal and general publications Property taxes Marketing Dues and membership Utilities IT services Travel and conferences Land adjustment to market Other expenditures Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out Net change in fund balances Fund balance at beginning of year Fund balance at end of year Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 TIF 29 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch $ 368,427 $ - $ - $ - $ - $ - $ - $ - $ - - - - - 39,674 - 308,224 57,716 34,961 (4,445) (5,492) - (69) (628) (583) (2,524) (813) (988) 7,803 7,276 - - - - - - - 29,131 - - - - - - - - 400,916 1,784 - (69) 39,046 (583) 305,700 56,903 33,973 93,267 36,687 54 13,876 21,917 1,664 13,682 501 4,996 3,036 3,002 1,803 321,728 12,688 866 866 - - - 1,914 - - 35 - - 1,538 - - - 35 35 360 35 35 - - - 183,012 - - - - - 11,987 - - 35 35 35 198,811 35 35 (127,985) 1,784 (866) (104) 39,011 (618) 106,889 56,868 33,938 2,368 - - - - - - - - (90,607) - - - - - - - - (216,224) 1,784 (866) (104) 39,011 (618) 106,889 56,868 33,938 4,659,018 1,233,267 (44,497) 749,105 92,936 104,838 400,241 117,208 160,026 $ 4,442,794 $ 1,235,051 $ (45,363) $ 749,001 $ 131,947 $ 104,220 $ 507,130 $ 174,076 $ 193,964 121912013 12/31/2023 1211012018 1213112024 12131/2026 12131/2029 Redevelopment Housing Redevelopment Housing & Housing Housing Redevelopment (Continued) 3 Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended December 31, 2021 - Unaudited (Continued) Revenues Property taxes Tax increments Investment earnings Interest on loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Supplies Professional services - legal Professional services - other LPV Insurance Legal and general publications Property taxes Marketing Dues and membership Utilities IT services Travel and conferences Land adjustment to market Other expenditures Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance at beginning of year Fund balance at end of year Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 30 TIF 34 TIF 39 (d) TIF 40 TIF 41 TIF 42/43 GAAP Total Total CMHP Interchange Otter Creek Briggs UMC Headwaters Reconciliation EDA SCDP $ - $ - $ - $ - $ - $ - $ - $ 368,427 $ - 16,009 217,828 45,247 13,030 - - - 732,689 - (629) (252) - (5) - - - (16,428) - - - - - - - (7,803) 7,276 4,392 - - - - - - - 29,131 - 15,380 217,576 45,247 13,025 - - (7,803) 1,121,095 4,392 - - - - - - 93,267 - - - - - - - 36,687 - - - - 54 - - - - - - - - 16,656 - - - - - - - - 23,490 - - - - - - - - 1,664 - 35 35 35 35 - - - 640 - - - - - - - - 13,682 - - - - - - - 501 - - - - - - - 4,996 - - - - - - - - 3,036 - - - - - - - - 3,002 - - - - - - - - 1,803 - - - - - - - - 321,728 - - - - - - - - 12,688 - - - - - - - - 183,012 - 2,580 - 5,223 - - - (7,803) - - - - - 11,727 - - - 23,714 - 2,615 35 5,258 11,762 - - (7,803) 740,620 - 12,765 217,541 39,989 1,263 - - - 380,475 4,392 - - - - 300,000 - - 300,000 - - - 90,607 - - - - 92,975 - - (198,700) - - - - - (289,307) - - (198,700) 90,607 - 300,000 - - 103,668 - 12,765 18,841 130,596 1,263 300,000 - - 484,143 4,392 8,962 35,662 (130,596) 335 (1,031,000) - 163,200 6,518,705 924,538 $ 21,727 $ 54,503 $ - $ 1,598 $ (731,000) $ - $ 163,200 $ 7,002,848 $ 928,930 12131 /2029 12131 /2022 12131 /2021 12131 /2045 12131 /2030 Housing Redevelopment Economic Housing Economic Development Development 4 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 12th, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmember Jim Davidson Commissioners Absent: President Steve Johnson and Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Angela Schumann, and Hayden Stensgard 1. Call to Order Vice President Jon Morphew called the regular meeting of the Monticello EDA to order at 6:02 p.m., filling in for President Steve Johnson. 2. Roll Call Mr. Morphew took roll. 3. Consideration of Additional Agenda Items None 4. Consent Agenda a. Consideration of Aubrovina Regular Meeting Minutes — December 8. 2021 b. Consideration of Approving Payment of Bills c. Consideration of Approving 2022 Wright County Economic Development Partnership (WCEDP) Membership and authorizing payment of Annual Fee in the amount of $2,606 HALI SITTIG MOVED TO ADOPT THE CONSENT AGENDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. Regular Agenda 5. Consideration of Authorizing Solicitation of Quotes for a Full Vacant Land Appraisal of 16.71-acre parcel, Country Club Manor, Outlot A Executive Director Jim Thares provided an overview of the agenda item. It was noted that this is the EDA owned parcel that Headwaters Development is proposing to develop twin homes and an apartment complex on. The EDA was introduced to this proposal initially at the August 11, 2021, meeting and again for consideration of a TIF application at the December 8, 2021, meeting. The EDA is required to approve expenses greater than $1,000. It is unclear if the appraisal will cost more than that, but it is expected to be slightly above the board approval threshold. An RFP had been drafted to send out pending the EDA's approval. Mr. Morphew asked if it was almost certain that the appraisal would be over $1,000. Mr. Thares confirmed and said this report may be closer to $2,000. OLLIE MOVED TO AUTHORIZE SOLICITATION OF QUOTES FOR A VACANT LAND APPRAISAL OF COUNTRY CLUB MANOR, OUTLOT A. HALI SECONDED THE MOTION... DISCUSSION Treasurer Tracy Hinz asked if once proposals were received for this request, it will be coming back to the EDA to award it to the proposers. Mr. Thares confirmed and said that the deadline for submittals is before the next regular scheduled EDA meeting on January 26, 2022, so the proposals can be addressed at that meeting. ...MOTION CARRIED UNANIMOUSLY, 5-0. 6. Consideration of Adopting Resolution #2022-01 authorizing submittal of Redevelopment Grant application to MN -DEED in the amount of $517,500 Mr. Thares provided an overview of the agenda item to the EDA and the public. It was noted the application is for assistance with the redevelopment project proposed by Deephaven Development LLC in Block 52. The funding may help pay for structure demolition costs and utility relocates. Ms. Hinz noted the high quality of grant writing staff has proved to be capable of in recent years. She supports the effort to seek additional funding to offset expenditures that are yet to be incurred for Block 52 redevelopment work tasks. Mr. Morphew asked if the timeline for submittal was realistic for staff to complete it by. Staff was confident the grant deadline of February 1, 2022, can be met. TRACY HINZ MOVED TO ADOPT RESOLUTION #2022-01, AUTHORIZING SUBMITTAL OF A REDEVELOPMENT GRANT APPLICATION TO MN -DEED IN THE AMOUNT OF $517,500. JIM DAVIDSON SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 5-0. 7. Consideration of 2022 WSB Economic Development Assistance Contract Renewal in the amount of $10,800 Mr. Thares provided an overview of the agenda item to the EDA and the public. Mr. Morphew asked if the work WSB does for the city is mainly behind the scenes, as in the EDA does not do hands-on work with WSB. Mr. Thares confirmed but also mentioned that it is possible that the EDA could work with WSB in strategy meetings etc. Ms. Hinz noted she has a lot of trust in staff s recommendations when it comes to behind the scenes work such as what WSB does for Monticello's economic development. JIM DAVIDSON MOVED TO APPROVE THE PROPOSED 2022 WSB ECONOMIC DEVELOPMENT SERVICES CONTRACT RENEWAL. HALI SITTIG SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 5-0. 8. Consideration of authorizing a Professional Services contract with LHB, Inc. to complete TIF Blight Study Findings for Block 52 in the amount of $16,400 Mr. Thares provided an overview of the agenda item to the EDA and the public. It was noted that this inspection is crucial to defining Block 52 as a redevelopment area. Mr. Davidson asked what percentage of the potential redevelopment area needs to be blighted. Mr. Thares said that it is not 100% of the area, but he is confident that there is enough to qualify. 011ie Koropchak-White asked if there was a timeframe to act following the results of the study. Staff did not have a definitive answer but will provide in the near future. OLLIE KOROPCHAK-WHITE MOVED TO ACCEPT THE QUOTE FOR BLOCK 52 TIF BLIGHT INSPECTION SERVICES FROM LHB ENGINEERING AND AUTHORIZE ENTERING INTO A PROFESSIONAL SERVICES CONTRACT WITH LHB ENGINEERING IN THE AMOUNT OF $16,400 FOR BLIGHT INSPECTION SERVICES. TRACY HINZ SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 5-0. 9. Consideration of authorizing a Professional Services Contract with AE2S for Marketing Service in the amount of $24,971 Mr. Thares provided an overview of the agenda item to the EDA and the public. The source of funding for this proposal will not come from the EDA general fund. It will be provided through the CET Grant awarded to the City in March 2021. The funds will be transferred to the EDA to fulfill the marketing objective in the future. Ms. Sittig asked if there was limit set on what could be spent from the CET Grant award for a marketing service like this. Mr. Thares explained that the total grant award was $500,000, and the amount identified for marketing expenses is $25,000. Mr. Morphew mentioned the reference feedback provided by groups who have worked with AE2S in the past and found them to be very helpful. JIM DAVIDSON MOVED TO APPROVE THE PROFESSIONAL SERVICES CONTRACT WITH AE2S COMMUNICATIONS FOR DEVELOPMENT AND COMPLETION OF AN IMCP IN THE AMOUNT OF $24,971. HALI SITTIG SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 5-0. 10. Consideration of discussion of Proposed 2022-2024 EDA Workplan Mr. Thares provided an overview of the agenda item to the EDA and the public. The EDA will hold a workshop meeting prior to their regular meeting on February 9, 2022, to further discuss the Workplan. Ms. Hinz liked the idea of extending the workplan to a multi -year plan, due to many EDA projects having longer timeframes. No action was taken on the item. 11. Economic Development Director's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. Included in the report was an update on The Pointes at Cedar Small Area Plan, and summaries of progress made by subcommittees created to assist with the development. Mr. Thares also addressed the redevelopment proposal of Block 52 that was introduced to the City Council, EDA, PARC, and Planning Commission on January 10, 2022. He noted that there is potential to help the remaining buildings on the block that will not be a part of the redevelopment by extending the Downtown Fagade Improvement Program to Block 52. Originally, the improvement program was exclusively for Block 35. It was noted that there are three interested applicants on Block 35 still, and the EDA has roughly $200,000 for this program. Ms. Hinz asked if the privately owned buildings on Block 52 would work with the developers to help create similar facades around the block. Mr. Thares said that is the presumption. Mr. Morphew asked if the guidelines for buildings on Block 52 would be the same as on Block 35. Mr. Thares confirmed. Ms. Hinz asked if there were any applications in for this program from businesses on Block 35. Community Development Director Angela Schumann confirmed. Ms. Hinz added that she does not want to count those pending applications out. Mr. Thares asked if the EDA had a volunteer to be a part of a group to work with AE2S and their efforts in developing a marketing strategy. Ms. Hinz expressed interest and said she would volunteer. 12. Adiourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 7:08 P.M. Accounts Payable Transactions by Account CITY F User: Debbie.Davidson �effo Printed: 01/05/2022 - 1:18PM Batch: 00204.01.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - IN 12/31/2021 0 983.72 213-46301-431993 WSB & ASSOCIATES INC 2021 Economic Development Service: 12/31/2021 0 850.00 Vendor Subtotal for Dept:46301 1,833.72 213-46301-443990 LMC REAL ESTATE LLC Funding Dispersement for MIF Grant 01/11/2022 125044 300,000.00 Vendor Subtotal for Dept:46301 300,000.00 Subtotal for Fund: 213 301,833.72 Report Total: 301,833.72 AP -Transactions by Account (01/05/2022 - 1:18 PM) Page 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 01/19/2022 - 11:32AM Batch: 00205.01.2022 Account Number Vendor Description CITY3tjMonticello GL Date Check No Amount PO No 213-46301-443300 WRIGHT COUNTY ECONOMIC E 2022 Membership Dues 01/25/2022 125109 2,606.00 Vendor Subtotal for Dept:46301 2,606.00 213-46301-443990 DEMVI LLC Parking Lot Maintenance - Jan 2022 01/25/2022 125074 198.02 Vendor Subtotal for Dept:46301 198.02 Subtotal for Fund: 213 2,804.02 Report Total: 2,804.02 AP -Transactions by Account (01/19/2022 - 11:32 AM) Page I Accounts Payable CITY F Y Transactions b Account 1b User: Debbie.Davidson 3tjMSo!nti effo Printed: 0l/18/2022 - 3:38PM Batch: 00201.01.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 12/31/2021 0 19.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 12/31/2021 0 37.97 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 12/31/2021 0 37.97 Vendor Subtotal for Dept:46301 95.19 Subtotal for Fund: 213 95.19 Report Total: 95.19 AP -Transactions by Account (01/18/2022 - 3:38 PM) Page 1 Accounts Payable Transactions by Account CITY F � User: Debbie.DavidsonontiPrinted: 01/03/2022 - 2:34PM effo Batch: 00215.12.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 12/31/2021 0 41.86 Vendor Subtotal for Dept:46301 41.86 Subtotal for Fund: 213 41.86 Report Total: 41.86 The preceding list of bills payable totaling $304,779.67 was reviewed and approved for payment. Date: 2/9/22 Approved by Tracy Hinz- Treasurer AP -Transactions by Account (01/03/2022 - 2:34 PM) Page I Accounts Payable Transactions by Account CITY F User: Debbie.Davidson �effo Printed: 01/05/2022 - 1:18PM Batch: 00204.01.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - IN 12/31/2021 0 983.72 213-46301-431993 WSB & ASSOCIATES INC 2021 Economic Development Service: 12/31/2021 0 850.00 Vendor Subtotal for Dept:46301 1,833.72 213-46301-443990 LMC REAL ESTATE LLC Funding Dispersement for MIF Grant 01/11/2022 125044 300,000.00 Vendor Subtotal for Dept:46301 300,000.00 Subtotal for Fund: 213 301,833.72 Report Total: 301,833.72 AP -Transactions by Account (01/05/2022 - 1:18 PM) Page 1 701 XENIA AVENUE S SUITE 300 MINNEAPOLIS, MN 55416 City of Monticello Attn: Sarah Rathiisberger, CPFO Finance Manager 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 Wsb�� December 28, 2021 Project/Invoice: R-014511-000 - 19 Reviewed by: Bret Weiss Project Manager: Penny Rolf Downtown Redev. Project - Monticello City Staff Reviewer - Jim Thares GL Acct # 213.46301.431993 Professional 5ervi es from November 1 2021 to November 30 2021 Phase 001 Downtown Redev. Project Acquisition Assistance Services Hours Rate Amount Rolf, Penny 11/3/2021 .50 184.00 92.00 Sent relo referrals to church Rolf, Penny 11/412021 .25 184.00 46.00 emails to church re: referrals and timeline Rolf, Penny 11/10/2021 .50 184.00 92.00 Call w/ church rep re: church referrals Rolf, Penny 11117/2021 .50 184.00 92.00 conference call w/Jim at the EDA related to project status and budget Rolf, Penny 11/22/2021 .75 184.00 138.00 Relo Efig Drafts - sent to Jim for review and comments Rolf, Penny 11/24/2021 2.75 184.00 506.00 Prep Relo Elig. letters, print out Relo booklets, deliver to PO to mail Totals 5.25 966.00 Total Labor 966.00 Total this Task $966.00 Total this Phase $966.00 Phase EXP Expenses Expenses Reimbursable Expenses Postage & Delivery 11/24/2021 Rolf, Penny Relo. Efig. - Cert. Mails 17.72 Total Reimbursables 17.72 17.72 Total this Task $17.72 Total this Phase $17.72 Project R-014511-000 MONT - Downtown Redev. Project - Montice Invoice 19 Billing Limits Current Total Billings 983.72 Limit Remaining Prior 7,355.45 To -Date 8,339,17 10,208.00 1,868.83 Total this Invoice $983.72 Page 2 0ti.* 144'� p�ZMRT IES ST/.I�sFR F.. WACONIA 208 S ELM ST WACONIA, MN 55387-1405 (800)275-8777 11/24/2021 03:15 PM ---------- ------ ------------------ ProductQty Unit Price Price ---------------------------- --- First -Class Mail® 1 ---- $1.95 Large Envelope Monticello, MN 55362 Weight: 0 lb 4,90 oz Estimated Delivery Date Mon 11/29/2021 Certified Mail® $3.75 Tracking #: 70160340000107201893 Return Receipt $3 p5 Tracking #: 9590 9402 5276 9154 6845 42 Total $8.76 First -Class Mails 1 $2.16 Large Envelope Monticello, MN 55362 Weight: 0 lb 5.20 oz Estimated Delivery Date Mon 11/29/2021 Certified Mail@ $3.75 Tracking #: 70160340000107201862 Return Receipt " $3 05 Tracking #: 9590 9402 5276 9154 6845 59 Total $8.96 -------------------------------------- Grand Total: -Card $17.72 Credit Remitted----------------- $17.72 Card Name; MasterCard Account #: XXXXXXXXXXXX7030 Approval #: 68962S Transaction #: 673 AID: AOOOODO0041010 Chip AL; MasterCard PIN: Not Required X'YCYf)CY[YCXYfIC YC k'yt 71'![]t *]!'vw rwt WXYlw wwrwr r-----..... --- From: Jim Thares To: Julie Chenev Cc: Sarah Rathlisberger; Liz Lindrud Subject: RE: WSB (3) Date: Tuesday, January 4, 2022 5:14:47 PM Attachments: image001.png Julie, two of these are okay to pay through the EDA General Fund. Please see below. All invoices look okay to pay as noted below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 4, 2022 11:13 AM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (3) Jim Attached are the following invoices from WSB for November services: Inv #R017641-000 11— 2021 Economic Development Services - $850.00 Okay by JMT Inv# R019194-000 2 — Shovel Ready Site Certification - $3,088.75 Invoice is in order- Okay by JMT - CET Grant Eligible work tasks — Not EDA funded. Grant contract is with the City. Inv# R014511-000 19 — Downtown Redevelopment Project - $983.72 Okay by JMT (relocation services) Okay to pay as coded? Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 701 XENIA AVENUE S SUITE 300 MINNEAPOLIS, MN 55416 City of Monticello A#tn: Sarah Rathlisberger, CPFO Finance Manager 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 Wsb� December 28, 2021 Project/Invoice: R-017641-000 - 11 Reviewed by: Bret Weiss Project Manager: James Gromberg 2021 Economic Development Services City Staff Reviewer - Jim Thares GL Acct # 213.46301.431993 Professional Services from November 1, 2021 to November 30, 2021 Phase 001 2021 Economic Development Services Monthly Retainer Monthly Retainer 850 / Lump Sum Fee $10,200 for this task. Fee Total Fee 10,200.00 Percent Complete 91.6667 Total Earned 9,350.00 Previous Fee Billing 8,500.00 Current Fee Billing 850.00 Total Fee 850.00 Total this Task $850.00 Total this Phase $850.00 Total this Invoice $850.00 Billings to Date Current Prior Total Fee 850.00 8,500.00 9,350.00 Labor 0.00 7,159.50 7,159.50 Add -on 0.00 -127.00-127.00 Totals 850.00 15,532.50 16,382.50 From: Jim Thares To: Julie Chenev Cc: Sarah Rathlisberger; Liz Lindrud Subject: RE: WSB (3) Date: Tuesday, January 4, 2022 5:14:47 PM Attachments: image001.png Julie, two of these are okay to pay through the EDA General Fund. Please see below. All invoices look okay to pay as noted below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 4, 2022 11:13 AM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (3) Jim Attached are the following invoices from WSB for November services: Inv #R017641-000 11— 2021 Economic Development Services - $850.00 Okay by JMT Inv# R019194-000 2 — Shovel Ready Site Certification - $3,088.75 Invoice is in order- Okay by JMT - CET Grant Eligible work tasks — Not EDA funded. Grant contract is with the City. Inv# R014511-000 19 — Downtown Redevelopment Project - $983.72 Okay by JMT (relocation services) Okay to pay as coded? Thank you, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. CITY OF MONTICELLO VOUCHER Please complete, sign, and submit to Accts Payable by due date for check run. ® Disb. Ck. Batch Pay by: VENDOR: Name (AA /� �% Keot I I Fc�-a +t_ Address I . 5 oo ck c) Address 2 City/ST/Zip �n _V , `OI �t Le l o + /1/Ilam\ 1 5Z Statement/ Invoice No: DISTRIBUTION OF EXPENSE Acct. No. Amount Description Project Code 1'6AJ301,4 50 30Q,0 o 1st Ursa. oI- MIF 2 ♦t dG��-/K K O 1n TOTAL: $ S-00 otx� APPROVED BY DATE: 1 /4-/2 0 voucherAs LOAN AGREEMENT This Loan Agreement ("Agreement') is made this 9th day of March, 2020, between UMC Real Estate, LLC, a Minnesota limited liability company ('Borrower") and the City of Monticello, a Minnesota municipal corporation ("Lender"). RECITALS A. Lender has received Minnesota Investment Fund ("MiF") assistance from the Minnesota Department of Employment and Economic Development ("DEED') in the amount of $300,000, for the purpose of assisting the Borrower with the acquisition of certain machinery and equipment (the "Equipment") necessary for the expansion of its light manufacturing facility (the "Facility") in the City of Monticello (the pursuant to a Minnesota Investment Fund Grant Contract, Grant Number CDAP-20-0004-H-FY20, between DEED and the Lender, dated as of February 7, 2020 (the "Grant Agreement'). B. The MIF assistance is to be structured as a forgivable loan by the Lender to the Borrower. C. In consideration for the assistance contemplated by this Agreement and the Grant Agreement, Borrower is executing and delivering to Lender this Agreement, which sets forth the terms and conditions of the MIF assistance. D. Lender agrees to loan to Borrower the maximum amount of $300,000 (the "Loan") to pay a portion of the costs of the Equipment, which Equipment is listed at Exhibit A hereto. ACCORDINGLY, to induce Lender to make the Loan to Borrower, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. The Loan Amount. Subject to and upon the terms and conditions of this Agreement and the Grant Agreement, Lender agrees to loan to Borrower the sum of Three Hundred Thousand and no/100ths Dollars ($300,000), or so much thereof as is disbursed to Borrower in accordance with this Agreement (the "Loan'). The Loan shall be evidenced by a promissory note ("Note") payable by Borrower to Lender and substantially in the form of Exhibit B attached to this Agreement, which shall be dated as of the date of closing on the Loan (the "Loan Closing Date'). Proceeds of the Loan shall be disbursed in accordance with Section 3 hereof. 2. Repayment of Loan. The Loan shall be repaid as follows: (a) No interest shall be payable on the principal of the Loan. (b) Payments of principal shall be deferred until December 30, 2022 (the "Compliance Date'. All principal payable on the Loan shall be forgiven if the Borrower creates the required number of jobs at the agreed wages, as described in Section 4 of this Agreement, by the Compliance Date. (c) If the Borrower fails to meet the job and wage goals by the Compliance Date, the Lender may, after approval by DEED and after holding a duly noticed public hearing, extend the Compliance Date by one year. If the Borrower fails to meet the job and wage goals by the extended Compliance Date, the amount of the Loan shall be [educed as described in Section 4(c), and the Borrower shall be required to repay all or a pro rata share of the Loan on an accelerated basis. If the Borrower is required to repay a pro rats share, the amount shall be determined as described in Section 4(c) of this Agreement. 3. Disbursement of Loan Proceeds. (a) 7 he Loan proceeds shall be paid to Borrower in accordance with the terms and conditions of this Agreement. Notwithstanding anything to the contrary herein, if the cost of the Equipment exceeds the amount to be reimbursed under this Agreement, such excess shall be the sole responsibility of the Borrower. (b) All disbursements of proceeds of the Loan will be made subject to the conditions precedent that prior to the date of such disbursement: (i) The Lender has received from Borrower, without expense to Lender, executed copies of this Agreement and the Note, and Borrower further having caused to be executed and delivered to Lender a personal guaranty of Donald J. Tomaum in substantially the form set forth hereto at Exhibit C (the "Guaranty"); (ii) The Lender has received a written statement from the Borrower's authorized representative certifying with respect to each payment: (a) that none of the items for which the payment is proposed to be made has formed the basis for any payment previously made under this Section (or before the date of this Agreement); and (b) that each item for which the payment is proposed is included in the Equipment; (iii) Borrower has provided evidence satisfactory to Lender that Borrower has established a separate accounting system for the exclusive purpose of recording the receipt and expenditure of the Loan proceeds; (iv) Borrower has paid to Lender the full amount of the legal fees incurred by Lender in the negotiation and preparation of this Agreement and any other agreement or instrument securing the Loan; and (v) No Event of Default shall have occurred and be continuing. (c) Whenever the Borrower desires a disbursement to be made hereunder, which shall be no more often than weekly, the Borrower shall submit to the Lender a draw request in the form attached as Exhibit D duly executed on behalf of the Borrower, accompanied by paid invoices or other comparable evidence that the cost has been incurred and paid or is payable by Borrower. Each draw request shall constitute a representation and warranty by the Borrower that all representations and warranties set forth in this Agreement are true and correct as of the date of such draw request. (d) If the Borrower has performed all of its agreements and complied with all requirements to be performed or complied with hereunder, including satisfaction of all applicable conditions precedent contained in this Section, the Lender shall make a disbursement to the Borrower in the amount of the requested disbursement or such lesser amount as shall be approved, within twenty days after the date of the Lender's receipt of the draw request 4. Business Subsidy Aereement The provisions of this Section constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. (a) General Terns. The parties agree and represent to each other as follows: (1) The subsidy provided to the Borrower consists of the principal amount of the Loan, or $300,000, (2) The public purposes of the subsidy are to facilitate the expansion of a light manufacturing facility in the City, thereby increasing net jobs in the City and the State and increasing the tax base of the City and the State. (3) The goals for the subsidy are: to acquire the Equipment necessary for expansion of the Facility; to maintain the Facility as a manufacturing facility for the time period described in clause (6) below; and to create the jobs and wage levels required in accordance with Section 4(b) hereof. (4) if the goals described in clause (3) are not met, the Borrower must make the payments to the Lender described in Section 3.8(c). (5) The subsidy is needed to induce Borrower to locate its business at this site, as determined by the Lender and DEED. (6) The Borrower must continue operation of the Facility as a "Qualified Facility" for at least five years after December 30, 2020 (the `Benefit Date"). For the purposes of this Section, the term Qualified Facility means a distribution, warehouse or manufacturing facility, including office space necessary for and related to those activities, all within the meaning of Minnesota Statutes, Section 469.176, subd. 4c. The improvements will be a Qualified Facility as long as the Facility is operated by the Borrower or a tenant for the aforementioned qualified uses. During any period when the Facility is vacant and not operated for the aforementioned qualified uses, the Facility will not constitute a Qualified Facility. (7) The Borrower does not have a parent corporation. (8) The Borrower expects to receive an additional $175,000 from DEED in connection with job creation and capital investment. The Borrower also expects to receive a write -down in the cost of certain real property to be acquired from the City of Monticello Economic Development Authority (the "Authority') in the amount of $731,000. DEED and the Authority are "grantors" as defined in the Business Subsidy Act (b) Job and Wage Goals. The "Benefit Date" of the assistance provided in this Agreement is December 30, 2020. By or before December 30, 2022 (the "Compliance Date"), the Borrower shall cause to be created at least 43 full-time jobs permanent to the Facility. The Borrower shall cause the average hourly wage of 4 of the new jobs to be at least $15 per hour, and the average hourly wage of 39 of the new jobs to be at least $17 per hour, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Borrower's continuing obligations under Sections 3.8(a)(6) and 3.8(d). The Lender may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the Lender's legislative discretion regarding this matter. (c) Remedies. If the Borrower fails to meet the goals described in Section 4(a)(3), the Borrower shall repay to the Lender upon written demand from the Lender a "pro rata share" of the outstanding principal amount of the Loan. The term `pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if both clauses (i) and (ii) apply, the sum of the applicable percentages, not to exceed 100%. In addition to the remedy described in this Section and any other remedy available to the Lender for failure to meet the goals stated in Section 4(a)(3), the Borrower agrees and understands that it may not a receive a business subsidy from the Lender or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Borrower satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Borrower must submit to the Lender a written report regarding business subsidy goals and results by no later than February 1 of each year, commencing February 1, 2021 and continuing until the later of (i) the date the goals stated Section 4(aX3) are met; (ii) 30 days after expiration of the period described in Section 4(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 4(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act The Lender will provide information to the Borrower regarding the required forms. If the Borrower fails to timely file any report required under this Section, the Lender will mail the Borrower a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Borrower fails to provide a report, the Borrower must pay to the Lender a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000. 5. Representations and Warranties. Borrower represents and warrants to Lender that: (a) Borrower is duly authorized and empowered to execute, deliver, and perform this Agreement and to borrow money from Lender. (b) The execution and delivery of this Agreement, and the performance by Borrower of its obligations hereunder, do not and will not violate or conflict with any provision of law and do not and will not violate or conflict with, or cause any default or event of default to occur under, any agreement binding upon Borrower. (c) The execution and delivery of this Agreement has been duly approved by all necessary action of Borrower, and this Agreement has in fad been duly executed and delivered by Borrower and constitutes its lawful and binding obligation, legally enforceable against it. (d) Borrower warrants that it shall keep and maintain books, records, and other documents relating directly to the receipt and disbursements of Loan proceeds and that any duly authorized representative of Lender shall, at all reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of Borrower pertaining to the Loan until the completion of all closeout procedures and the final settlement and conclusion of all issues arising out of this Loan. (e) Borrower warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue to comply throughout the terms of this Agreement. If at any time Borrower receives notice of noncompliance from any governmental entity, Borrower agrees to take any necessary action to comply with the state or federal law in question. (f) Borrower warrants that it will use the proceeds of the Loan made by Lender solely for the Equipment. 6. Event of Default by Borrower. The following shall be Events of Default under this Agreement: (a) failure to pay any principal on the Loan when due; (b) any representation or warranty made by Borrower herein or in any document, instrument, or certificate given in connection with this Agreement, the Note, or the Guaranty is false when made; (c) Borrower fails to pay its debts as they become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or hereafter existing, becomes "insolvent" as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case within thirty (30) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another chapter, or be the subject of an order for relief in such bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within thirty (30) days of the appointment; (d) a garnishment summons or writ of attachment is issued against or served upon Lender for the attachment of any property of Borrower in Lenders possession or any indebtedness owing to Borrower, unless appropriate papers are filed by Borrower contesting the same within thirty (30) days after the date of such service or such shorter period of time as may be reasonable in the circumstances; (e) any breach or failure of Borrower to perform any other tens or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after Lender has given written notice to Borrower specifying such default or breach, unless Lender agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, lender will not unreasonably withhold its consent to an extension of such time if corrective aeon is instituted by Borrower within the applicable period and is being diligently pursued until the Default is corrected, but no such extension shall be given for an Event of Default that can be cured by the payment of money (i.e., payment of taxes, insurance premiums, or other amounts required to be paid hereunder); (f) any breach by Borrower of any other agreement between Borrower and Lender, DEED, or the Authority. 7. Lenders Remedies upon Borrower's Default. Upon an Event of Default by Borrower and after provision by Lender of written notice, Lender shall have the right to exercise any or all of the following remedies (and any other rights and remedies available to it): (a) declare all (or a portion of if the Event of Default relates to the satisfaction of the Borrower's job and wage goals) the principal amount of the Loan thereon to be immediately due and payable upon providing written notice to Borrower, (b) suspend its performance under this Agreement; (c) take any action provided for at law to enforce compliance by Borrower with the terms of this Agreement and the Note; (d) exercise its rights under the Guaranty. 8. Lendees Costs of Enforcement of Agreement. If an Event of Default has occurred as provided herein, then upon demand by Lender, Borrower shall pay or reimburse Lender for all expenses, including all reasonable attorneys' fees and expenses incurred by Lender in connection with the enforcement of this Agreement and the Note, or in connection with the protection or enforcement of the interests and collateral security of Lender in any litigation or bankruptcy or insolvency proceeding or in any action or proceeding relating in any way to the transactions contemplated by this Agreement. 9. Indemnification (a) Borrower shall and does hereby agree to indemnify against and to hold Lender, and its officers, agents, and employees, harmless of and from any and all liability, loss, or damage that it may incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever that may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. (b) Should Lender, or its officers, agents, or employees incur any such liability or be required to defend against any claims or demands pursuant to this Section, or should a judgment be entered against Lender, the amount thereof, including costs, expenses, and reasonable attorneys' fees, shall be secured hereby and shall be added to the Loan, and Borrower shall reimburse Lender for the same immediately upon demand, and upon the failure of Borrower to do so, Lender may declare the Loan immediately due and payable. (c) This indemnification and hold harmless provision shall survive the execution, delivery, and performance of this Agreement and the creation and payment of any indebtedness to Lender. Borrower waives notice of the acceptance of this Agreement by Lender. (d) Nothing in this Agreement shall constitute a waiver of or limitation on any immunity from or limitation on liability to which Borrower is entitled under law. 10. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived, amended, or modified only by a writing signed by Borrower and Lender. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. (b) Assigmnent. This Agreement shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. All rights and powers specifically conferred upon Lender may be transferred or delegated by Lender to any of its successors and assigns. Borrower's rights and obligations under this Agreement may be assigned only when such assignment is approved in writing by Lender. (c) Governing Law. This Agreement is made and shall be governed in all respects by the laws of the state of Minnesota Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (d) Severabiliri. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or presented hereby. (e) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Lender: City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: City Administrator To Borrower: UMC Real Estate, LLC 500 Chelsea Road Monticello, MN 55362 Attn: Chief Operating Officer (f) Termination. If the Loan is not disbursed pursuant to this Agreement by December 30, 2022, this Agreement shall terminate and neither party shall have any further obligation to the other, except that if the Loan is not disbursed because Borrower has failed to use its best efforts to comply with the conditions set forth in Section 3 of this Agreement then Borrower shall pay to Lender all reasonable attorneys fees, costs, and expenses incurred by Lender in connection with this Agreement and the Note. (g) Entire Agreement. This Agreement, together with the Exhibits hereto, which are incorporated by reference, constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Agreement, superseding all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Loan. (h) Headines. The headings appearing at the beginning of the several sections contained in this Agreement have been inserted for identification and reference purposes only and shall not be used in the construction and interpretation of this Agreement. [Me remainder of this page is intentionally blank] M IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the proper officers thereinto duly authorized on the day and year first written above. CITY OF MONTICELLO, MINNESOTA By: Its Mayor Bar v Its Ci Cleric [SIGNATURE PACE TO LOAN AGREEMENr-CITY OF MONIrCEIAZI UMC REAL ESTATE, LLC By: Title: M*Y%bv ISIGNATURE PAGE TO LOAN AGREEMENT- UMC REAL MATE, I1.CJ 10 EQUIPMENT Quantity Equipment Description* Estimated Price Total 2 Matsuura MX520 PC4 5th Axis $630,000.00 $1,260,000.00 4 Okuma Milling 4-axis $330,000.00 $1,320,000.00 2 Fanuc Robot -Automation $45,000.00 $90,000.00 2 Star Swiss Machines $290,000.00 $580,000.00 2 CMM (Inspection Equipment) $50,000.00 $100,000.00 8 Hard Tooling for Machines $75,000.00 $600,000.00 $3,950,000.00 *All equipment is considered comparable and estimated as UMC would purchase with accessories and installation materials. A-] PROMISSORY NOTE -$300,000- -0.0%- April 1, 2020 UMC Real Estate, LLC, a Minnesota limited liability company ("Maker"), for value received, hereby promises to pay to the City of Monticello, a Minnesota municipal corporation or its assigns (City and any assigns are collectively referred to herein as "Holder"), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of Three Hundred Thousand and no/100ths Dollars ($300,000) or so much thereof as may be advanced under this Note, without interest, in any coin or currency that at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Note shall be forgiven or paid as described in the Loan Agreement between Maker and Holder dated as March 9, 2020 (the "Loan Agreement'): 1. Payments of principal shall be deferred until December 30, 2022. If Maker has fully complied with its obligation to create jobs at the wage levels set forth within the Loan Agreement, the entire amount of principal due and payable under this Note shall be forgiven. 2. If Maker fails to comply with its job and wage obligations as described in the Loan Agreement, the Maker shall be required to repay upon demand from the Holder a pro rats portion of this Note as described in Section 4(c) of the Loan Agreement. 3. The Maker shall have the right to prepay the principal of this Note, in whole or in part, on any date. 4. This Note is given pursuant to the Loan Agreement and a personal guaranty of Donald J. Tomann (the "Guaranty"). If any such security is found to be invalid for whatever reason, such invalidity shall constitute an Event of Default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Loan Agreement, the Guaranty, or any other instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If an Event of Default occurs an is continuing beyond any applicable cure period under the Loan Agreement, the Guaranty, or any other instrument securing this Note, then the Holder of this Note may at its right and option, without notice, declare immediately due and payable the principal balance of this Note, together with reasonable attorneys fees and expenses incurred by the Holder of this Note in collecting or FIN enforcing payment hereof, whether by lawsuit or otherwise, and all other sums due hereunder or any instrument securing this Note. The Maker of this Note agrees that the Holder of this Note may, without notice to and without affecting the liability of the Maker, accept additional or substitute security for this Note, or release any security or any party liable for this Note or extend or renew this Note. 5. The remedies of the Holder of this Note as provided herein, and in the Loan Agreement, the Guaranty, or any other instrument securing this Note shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this Note, may be exercised as often as occasion therefor shall occur, and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof, The Holder of this Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. If any term of this Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of such tern to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law. 7. It is intended that this Note is made with reference to and shall be construed as a Minnesota contract and is governed by the laws thereof. Any disputes, controversies, or claims arising out of this Note shall be heard in the state or federal courts of Minnesota, and all parties to this Note waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 8. The performance or observance of any promise or condition set forth in this Note may be waived, amended, or modified only by a writing signed by the Maker and the Holder. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. 9. IT 1S HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. IE IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the _ day of 2020. UMC REAL ESTATE, LLC Title: (SIGNATURE PAGE FOR PROMISSORY NOTE- UMC REAL. ESTATE, I.L.q IN EXHIBIT C PERSONAL GUARANTY This Personal Guaranty is made and entered into this _ day of , 2020, by Donald J. Tomann ("Guarantor") for the benefit of the City of Monticello, Minnesota ("Lender"), a Minnesota municipal corporation. WITNESSETH: WHEREAS, UMC Real Estate, LLC, a Minnesota limited liability company (the "Borrower") proposes to borrow the sum of $300,000 from Lender for equipment acquisition for a light manufacturing facility located in the City of Monticello; and WHEREAS, pursuant to the Minnesota Investment Fund Loan Agreement between Borrower and Lender dated as of March 9, 2020 (the "Loan Agreement") Borrower has agreed to repay to Lender $300,000 upon the terns and conditions stated in Borrower's promissory note of even date herewith ("Note'; and WHEREAS, to secure payment of the Note, Lender has required, and Guarantor has agreed to provide, a guaranty of the indebtedness above descn'bed between Borrower and Lender, and WHEREAS, Guarantor will receive a direct financial benefit from the loan to Borrower by Lender pursuant to the Note. NOW, THEREFORE, to induce Lender to make the loan to Borrower, Guarantor hereby covenants and agrees with Lender, for the benefit of all who at any time become holders of the Note, as follows: Section 1.1. Guarantor hereby unconditionally guarantees to Lender for the benefit of the Holder (as defined in the Note) from time to time of the Note: (a) the full and prompt payment of the principal of the Note if, when and as the same shall become due, whether at the stated maturity thereof, by acceleration or otherwise; and (b) any other amounts due Lender under the Loan Agreement or the Note. All payments shall be paid in lawful money of the United States of America. Each and every default in payment of the principal of the Note shall give rise to a separate cause of action hereunder, and separate suits may be brought hereunder as each cause of action arises. Section 1.2. The obligations of Guarantor under this Guaranty shall be absolute and unconditional and shall remain in full force and effect until the entire principal of the Note shall have been paid or forgiven, and such obligations shall not be affected, modified or impaired upon the happening from time to time of any event, including, without limitation, any of the following: a. The compromise, settlement, or release of less than 0 of the obligations, C-1 covenants or agreements of Borrower under the Note; b. The failure to give notice to any person of the occurrence of an event of default under the tears and provisions of this Guaranty or the Note executed by Borrower: C. The extension of the time for payment of principal of the Note or under this Guaranty; d. Any failure, omission, delay, or lack on the part of Leader to enforce, assert or exercise any right, power, or remedy conferred on Lender in this Guaranty or other instruments executed and delivered in connection with the loan contemplated thereby, or any other act or acts on the part of Lender or any of the holders from time to time of the Note; e. The default or failure of Guarantor to perform any of the obligations set forth in this Guaranty. Section 1.3. No set-off, counterclaim, reduction, or diminution of any obligation, or any defense of any kind or nature that Borrower has or may have Lender shall be available hereunder to Guarantor against Lender. Section 1.4. In the event of a default in the payment of principal of the Note if, when and as the same shall become due, whether by acceleration or otherwise, or upon the occurrence and continuance of any Event of Default under the Agreement, Lender may proceed hereunder, and Lender, in its sole discretion, shall have the right to proceed first and directly against the Guarantor for the full amount due without proceeding against or exhausting any other remedies it may have as to Borrower. Section 1.5. Guarantor hereby expressly waives notice from Lender or the holders from time to time of the Note of acceptance of or any reliance upon this Guaranty. Guarantor agrees to pay all the costs, expenses, and fees, including reasonable attorneys' fees, which may be incurred by Lender in enforcing or attempting to enforce this Guaranty whether the same shall be enforced by suit or otherwise. Section 1.6. This Guaranty is entered into by Guarantor with Lender for the benefit of Lender and the holders from time to time of the Note, all of whom shall be entitled to enforce performance and observance of this Guaranty. Section 1.7. Guarantor is duly authorized and empowered to execute, deliver, and perform this Guaranty and to borrow money from Lender. Section 1.8. The performance or observance of any promise or condition set forth in this Guaranty may be waived, amended, or modified only by a writing signed by Guarantor and Lender. No delay in the exercise of any power, right, or remedy operates as a waiver thereof; nor shall any single or partial exercise of any other power, right, or remedy. C-2 Section 1.9. This Guaranty is made and shall be governed in all respects by the laws of the state of Minnesota Any disputes, controversies, or claims arising out of this Guaranty shall be heard in the state or federal courts of Minnesota, and all parties to this Guaranty waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Section 1.10. If any provision or application of this Guaranty is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Guaranty shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. Section 1.11. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Lender: 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: City Administrator To Guarantor: Donald J. Tomann 6070 5'h St. NE Buffalo, MN 55313 Section 1.12. This Guaranty constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Guaranty, superseding all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Guaranty. Nothing contained herein shall effect or impair Lender's rights under the Loan Agreement or the Note. C-3 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed as of the date first above written. Donald J. Tomann [SIGNATURE PAGE FOR GUARANTY- DONAM J. TOMANM G4 AMENDED PROMISSORY NOTE -5300,000- Date of original issue: April 1, 202 Date of amendment: September 29, 2020 -0.0%- UMC Real Estate, LLC, a Minnesota limited liability company ("Maker"), for value received, hereby promises to pay to the City of Monticello, a Minnesota municipal corporation or its assigns (City and any assigns are collectively referred to herein as "Holder"), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of Tbree Hundred Thousand and no/100ths Dollars ($300,000) or so much thereof as may be advanced under this Amended Note, without interest, in any coin or currency that at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Amended Note shall be forgiven or paid as described in the Loan Agreement between Maker and Holder dated as of March 9, 2020, as amended by a First Amendment thereto dated as of September 28, 2020 (as so amended, the "Loan Agreement'), as follows: 1. Payments of principal shall be deferred until June 30, 2023. If Maker has fully complied with its obligation to create jobs at the wage levels set forth within the Loan Agreement, the entire amount of principal due and payable under this Amended Note shall be forgiven. 2. If Maker fails to comply with its job and wage obligations as described in the Loan Agreement, the Maker shall be required to repay upon demand from the Holder a pro rata portion of this Amended Note as described in Section 4(c) of the Loan Agreement. 3. The Maker shall have the right to prepay the principal of this Amended Note, in whole or in part, on any date. 4. This Amended Note is given pursuant to the Loan Agreement and a personal guaranty of Donald J. Tomann (the "Guaranty"). If any such security is found to be invalid for whatever reason, such invalidity shall constitute an Event of Default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Loan Agreement, the Guaranty, or any other instrument securing this Amended Note are hereby made a part of this Amended Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Amended Note. If an Event of Default occurs under the Loan Agreement, the Guaranty, or any other instrument securing this Amended Note, then the Holder of this Amended Note may at its right and option, without notice, declare immediately due and payable the principal balance of this Amended Note, together with reasonable attorneys fees and expenses incurred by the Holder of this Amended Note in collecting or enforcing payment hereof, whether by lawsuit or otherwise, and all other sums due hereunder or any instrument securing this Amended Note. The Maker of this Amended Note agrees that the Holder of this Amended Note may, without notice to and without affecting the liability of the Maker, accept additional or substitute security for this Amended Note, or release any security or any party liable for this Amended Note or extend or renew this Amended Note. 5. The remedies of the Holder of this Amended Note as provided herein, and in the Loan Agreement, the Guaranty, or any other instrument securing this Amended Note shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this Amended Note, may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. The Holder of this Amended Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Amended Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. If any term of this Amended Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Amended Note, or the application of such term to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each tern of this Amended Note shall be valid and enforceable to the fullest extent permitted by law. 7. It is intended that this Amended Note is made with reference to and shall be construed as a Minnesota contract and is governed by the laws thereof. Any disputes, controversies, or claims arising out of this Amended Note shall be heard in the state or federal courts of Minnesota, and all parties to this Amended Note waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 8. The performance or observance of any promise or condition set forth in this Amended Note may be waived, amended, or modified only by a writing signed by the Maker and the Holder. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. 9. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Amended Note do exist, have happened, and have been performed in regular and due form as required by law. IN WITNESS WHE OF, the Maker has caused this Amended Note to be duly executed as of the day of 2020. UMC RE ESTATE, LLC By: Title: ISICNATURE PACE FOR AMENDED PROMISSORY NOTE- UMC REAL ESTATE, LLCJ DRAW REQUEST TO: City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: City Administrator DISBURSEMENT DMECPION The undersigned Authorized Representative of UMC Real Estate, LLC, a Minnesota limited liability company (the "Borrower 1, hereby authorizes and requests you to disburse from proceeds of the Loan, in accordance with the terms of the Loan Agreement between the City of Monticello ("Lender') and the Borrower, dated as of March 9, 2020 (the "Agreement'), the following amount to the following person and for the following proper cast of the Equipment: 1. Amount: 4%300,OCO 2. Payee: U rn C_ , z o c 3. Purpose: p ;cyio->E e4..�nt n+ �, L,^' er�Fn S'an all as defined and provided in the Agreement. The undersigned fiutber certifies to the Lender that (a) none of the items for which the payment is proposed to be made has formed the basis for any payment previously made under Section 3 of the Agreement (or before the date of the Agreement); and (b) that each item for which the payment is proposed is Equipment, eligible for funding from the proceeds of the Loan. Dated: TaLI n —=� Borrower's Authorized Representative IIMI PO Number: 138728 Account Reference: UMC1 Purchase Order Revised: 10/22/2021 500 Chelsea Road Monticello MN 55362 USA Phone: 763-271-5200 Fax: 763-322-5005 Page: 1 of 2 Vendor: PROD0001 Ship To: Robert North Productivity, Inc Main Plant 15150-25th Avenue North UMC Minneapolis MN 55447 500 Chelsea Road USA Monticello MN 55362 Phone: 763-745-1150 Fax: 763-742-1260 MMIS@productivity.com Ship Via:UPS Ground Order Date:10/8/2021 Terms: Net 30 F.O.B:Destination Prepaid Freight: No Resale No:7677294 **Price Variances Must Be Approved Prior to Invoicing UMC** Three machine package perproposa/number22541 dated 10/0&2021. Payment terms: 10% down with PO, 40% upon delivery of each machine, 50% Net 30 from shipment of each machine. Line Part Number/Rev/Description Order Qty. Unit Price E t Price Tax 1 Matsuura MX330 & Tooling 1.00 EA 642,026.00/1 642,026.00 No M116 Per Proposal#22541 dated 10/08/2021 0 - Shipping Release Requirement - Due Da Quanti Rel 1 1/31/2022 1.00 EA Our Qty: 1.00 Line Part Number/Rev/Description Order Qty. Unit Price E t Price Tax 2 Matsuura MX330 & Tooling 1.00 EA 642,026.00/1 642,026.00 Yes M116 Per Proposal#22541 dated 10/08/2021 0 - Shipping Release Requirement - Due Da t uanti Rel 1 3/31/2022 1.00 EA Our Qty: 1.00 Line Part Number/Rev/Desaiptfon Order Qty. Unit Price E t Price Tax 3 Matsuura MX330 & Tooling 1.00 EA 642,026.00/1 642,026.00 Yes M116 Per Proposal#22541 0 QMS-001028 REV 05 12/02I2020 500 Chelsea Road Monticello MN 55362 USA Phone: 763-271-5200 PO Number: 138728 Purchase Order Fax: 763-3225005 Account Reference: Revised: 10/22/2021 Page: 2 of 2 - Shipping Release Requirement - Due D Quanti Rel 1 5/30/2022 1.00 EA Our Qty: 1.00 Unless otherwise specified: 1) Supplier must comply with QMS-005000 (UMC Supplier Quality Requirements). On parts requiring additional aerospace requirements, information shall be sent through a secured method when transmitting electronically (i.e. encryption, password protection, or secure file share site). 2) UMC requires all material ordered to be DFAR 225.872 compliant and certifications that define country of origin. 3) No UMC parts may be used for advertising, such as posters, product displays, or websites. 4) UMC and UMC's customer or regulatory officials shall be afforded the right to verify at the suppliers premises and the organization's premises that subcontracted product conforms to specified requirements and records. 5) Supplier must inform UMC of any process, operating structure, business ownership, or location changes, and non -conformances before shipping parts. Suppliers must cascade these requirements to sub -tier suppliers. 6) All blueprint and specifications will be provided to the supplier and shall be destroyed upon completion or fulfillment of the PO requirements. 7) Confirmation is needed for all purchase orders and process changes. Send by e-mail to umcourchasina( ultramc com with quantity, price. and delivery date. Confirmation is requested upon receipt of purchase order and before UMC will receive any item. 8) All variances must be requested by e-mail or phone and approved before shipment. 9) Certifications must be clear, legible, signed and dated and are required with all material and outside operations. Items with a shelf life are to have the expiration date listed on the certification. 10) UMC requires that suppliers must reference UMC's PO number on all carrier paperwork or shipment information sent to UMC. 11) UMC requires that all parts sent to a supplier must be returned to UMC. Any parts out of tolerance to be tagged and segregated. 12) UMC is a latex free facility. Any purchases received in latex packaging and/or binding may be rejected and sent back to the supplier for credit. 13) UMC requests your support and engagement in sourcing materials ethically. Our conflict mineral declaration is available for review at ultramc.com/conflict-minerals-declaration/ Authorized By: Richard✓Saionek Lines) Subtotal: 1,926,078.00 dicks@ultramc.com Misc. Charge Subtotal: 0.00 QMS-001028 REV 65 12f02/2020 Total: 1,926, 078.00 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 01/19/2022 - 11:32AM Batch: 00205.01.2022 Account Number Vendor Description CITY3tjMonticello GL Date Check No Amount PO No 213-46301-443300 WRIGHT COUNTY ECONOMIC E 2022 Membership Dues 01/25/2022 125109 2,606.00 Vendor Subtotal for Dept:46301 2,606.00 213-46301-443990 DEMVI LLC Parking Lot Maintenance - Jan 2022 01/25/2022 125074 198.02 Vendor Subtotal for Dept:46301 198.02 Subtotal for Fund: 213 2,804.02 Report Total: 2,804.02 AP -Transactions by Account (01/19/2022 - 11:32 AM) Page I INVOICE Wright County Economic Development Partnership 1405 3rd Ave NE Buffalo, MN 55313 763.496.5632 adm in *wrightpartn ersh i p.org 2022 Partner Dues Please Note 2023 Dues Will Increase Which Will Reflect 2020 Census Numbers. Your Current Est. For 2023 Will Be $3401 Sold To Date: 12/3/2021 Jim Thares City of Monticello 505 Walnut Street Suite 1 Monticello, MN $2,606 213 4� 3w/ -- 443 30 /i a^j i ,z/ZO-2z Total Discount Subtotal $2,606 Sales Tax Total $2,606 Wce'd -P Wright Couraw Economic Develoomenl Panne h., If you have any questions please contact Missy at 763.496.5632 Thank you for your participation! Julie Cheney From: Bullseye Property Management & Realty <mail@managebuilding.com> Sent: Saturday, January 22, 2022 3:06 AM To: AP Subject: Lease statement for Broadway Parking Easement - COMMERCIAL - 2 as of 1/22/2022 Bullseye Property Management & Realty Categories: Red Category Lease statement as of 2022-01-22 City of Monticello Economic Development Authority Account #: 00405914 35 Lake St Suite 500 Big Lake, MN 55309 Date Memo Amount Balance Prior balance $0.00 10/28/2021 Payment ($198.02) ($198.02) 11/1/2021 Common Area Maintenance $198.02 $0.00 11/30/2021 Payment ($198.02) ($198.02) 12/1/2021 Common Area Maintenance $198.02 $0.00 12/16/2021 Payment ($198.02) ($198.02) 1/1/2022 Common Area Maintenance $198.02 $0.00 2/1/2022 Common Area Maintenance $198.02 $198.02 Balance due: $198.02 Payment is due on the 28th of the month. If payment isn't received, a one-time fee equal to 8% of outstanding balances will be charged on the 29th of each month. Manage your account online: http://bullseyeproperties.managebuilding.com Bullseye Property Management & Realty 763-295-6566 Buildium@bullseye411.com 1 Accounts Payable CITY F Y Transactions b Account 1b User: Debbie.Davidson 3tjMSo!nti effo Printed: 0l/18/2022 - 3:38PM Batch: 00201.01.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 12/31/2021 0 19.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 12/31/2021 0 37.97 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 12/31/2021 0 37.97 Vendor Subtotal for Dept:46301 95.19 Subtotal for Fund: 213 95.19 Report Total: 95.19 AP -Transactions by Account (01/18/2022 - 3:38 PM) Page 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Saturday, December 4, 2021 8:37 AM AP Your bill from City of Monticello, MN is ready. BACK OF BILL.pdf; 12-1-21 Winter Insert.pdf 007256-004 MONTICELLO EDA (213-46301) 130 BROADWAY E 11/1/2021 to 11/30/2021 (30 days) 12/3/2021 1/1/2022 Previous Reading Current Reading Serial Date Reading Date Reading Cons Current Charges Water: ACH CREDIT - AUTO PAY ($1.25) Water: EBILL CREDIT ($0.50) Stormwater: STORMWATER / NON-RESIDENTIAL $21.00 Total Current Charges: $19.25 Bill Summary Previous Balance: $19.25 Payments Received: $19.25 Adjustments: $0.00 Current Charges: $19.25 * Total Amount Due by: 1/1/2022 $19.25 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading Serial Current Charges noreply@merchanttransact.com Saturday, December 4, 2021 8:37 AM AP Your bill from City of Monticello, MN is ready. BACK OF BILL.pdf; 12-1-21 Winter Insert.pdf Previous Reading Date Reading Water: Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 1/1/2022 * This was the amount due at the time of billing. 007256-007 MONTICELLO EDA (213-46301) 103 PINE ST 11/1/2021 to 11/30/2021 (30 days) 12/3/2021 1/1/2022 Current Reading Date Reading To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. Cons $0.00 $7.81 ($1.25) ($0.50) $0.81 $10.10 $21.00 $37.97 $37.97 $37.97 $0.00 $37.97 $37.97 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Saturday, December 4, 2021 8:37 AM AP Your bill from City of Monticello, MN is ready. BACK OF BILL.pdf; 12-1-21 Winter Insert.pdf Previous Reading Serial Date Reading 68621907 11/1/2021 43891 Current Charges Water: Water: CITY WATER - NON-TAXABLE Consumption Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Consumption Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 1/1/2022 * This was the amount due at the time of billing. 007256-008 MONTICELLO EDA (213-46301) 112 RIVER ST W 11/1/2021 to 11/30/2021 (30 days) 12/3/2021 1/1/2022 Current Reading Date Reading Cons 12/1/2021 43895 4 $0.00 $0.00 $7.81 ($1.25) ($0.50) $0.81 $0.00 $10.10 $21.00 $37.97 $37.97 $37.97 $0.00 $37.97 $37.97 To view your amount due at the current time and make a payment click here. i Auto payment is setup for this customer account, do not pay. Accounts Payable CITY F Y Transactions b Account 1b User: Debbie.Davidson 3tjMSo!nti effo Printed: 02/01/2022 - 2:50PM Batch: 00215.01.2022 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St O1/31/2022 0 46.74 Vendor Subtotal for Dept:46301 46.74 Subtotal for Fund: 213 46.74 Report Total: 46.74 AP -Transactions by Account (02/01/2022 - 2:50 PM) Page I NORTHERN STATES POWER COMPANY Page 1 of 6 Xcel Energy° RESPONSIBLE BY NATURE® QUESTIONS ABOUT YOUR BILL? See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 EAU CLAIRE WI 54702-0008 PREMISES SUMMARY MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8 01/06/2022 STATEMENT NUMBER STATEMENT DATE 1 0 759252207 12/08/2021 $111.06 ACCOUNT BALANCE (Balance de su cuenta) Previous Balance As of 11/01 $104.18 Payment Received Auto Pay 12/07 -$104.18 CR Balance Forward $0.00 Current Charges $111.06 Amount Due (CanSdad a pagar) $111.06 PREMISES NUMBER PREMISES IDENTIFIER PREMISES DESCRIPTOR CURRENT BILL 302923602 103 PINE ST EDA $46.74 303409149 112 W RIVER ST Pw Split $64.32 Total $111.06 INFORMATION ABOUT YOUR BILL Save energy and money this winter. As we head into the heating season, there is a nationwide increase in natural gas prices. Discover some easy steps to help your business conserve and stay comfortable while saving on your bill. Learn more at xcelenergy.com/NaturalGasUpdates. Thank you for your payment. RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS Energy® ACCOUNT NUMBER DUE DATE r r r 1 1 //. Adel 51-0013295413-8 01/06/2022 $111.06 Automated Bank Payment JANUARY Your bill is paid through an automated bank payment plan. 1 2 3 4 5 7 8 9 10 11 12 13 14 15 ------ manifest line -------- 16 17 18 19 20 21 22 I"I�III"'I''�I'IIIIIII�II�I�II��III�I��II�III�I�I'I�IIII'I��' 23 24 25 26 27 28 29 30 31 CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 I..I�III"�'I'�'�I'IIIIIII�II�I'II�'lll�l��ll�lll�l�l'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 r• rr 32 51010622 00132954138 0000001110600000011106 0 Xcel Energy MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8 ps$:111.067 STATEMENT NUMBER STATEMENT DATE 759252207 12/08/2021 SERVICE ADDRESS: 103 PINE ST MONTICELLO, MN 55362-8564 NEXT READ DATE: 01/07/22 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 302923602 INVOICE NUMBER: 0938201969 READINGMETER i METER 3632365 - Multiplier x 40 Read Dates: 11/01/21-12/02/21 (31 Days) DESCRIPTION CURRENT READING PREVIOUS READING MEASURED USAGE BILLED USAGE Total Energy 21432 Actual 21428 Actual 4 160 kWh Demand Actual 0.4 kW Billable Demand 0 kW ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 160 kWh $0.077570 $12.41 Fuel Cost Charge 160 kWh $0.028938 $4.63 Sales True Up 160 kWh $0.008510 $1.36 Affordability Chrg $1.27 Resource Adjustment $2.40 Subtotal $32.07 City Fees $5.50 Total $37.57 OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 938201933 ADDRESS: 103 PINE ST MONTICELLO, MN 55362-8564 UNIT DESCRIPTION USAGE UNITS CHARGE QTY CHARGE Install Number 157123 11/01/21 to 12/01/21 100 WATT HPS AREA CO OWN Auto Protective Lgt 51 kWh $7.41 1 $7.41 SAVE ON HIGH -EFFICIENCY FANS AND FAN SYSTEMS Rebates are now available for fan systems that are Fan Energy Index or FEI rated. Rebates range from $120 to $9,100, depending on horsepower and if the system is integrated with a VFD. The savings can help off -set your energy improvement project casts. Contact your account manager or one of our energy advisors at EnergyEfficiency@xcelenergiy.com or call 855-839-13862, J Page 3 of 6 jo Xcel Energy® OTHER RECURRING CHARGES DETAILS MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLO ECONOMIC DEV AUTH WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8 STATEMENT NUMBER STATEMENT DATE ;1/;06/202;2505 759252207 12/08/2021 INVOICE NUMBER: 938201933 ADDRESS: 103 PINE ST MONTICELLO, MN 55362-8564 UNIT DESCRIPTION USAGE UNITS CHARGE OTY CHARGE Fuel Cost Charge $1.14 Resource Adjustment $0.62 Total $9.17 Premises Total $46.74 DAILY AVERAGES Last Year N Temperature 36° F Electricity kWh 5.0 Electricity Cost $1.17 INFORMATION ABOUT YOUR BILL f . For a n average non -demand customer, 68% of your bill refers to power plant costs, 15% to high voltage line costs, and 17% to the cost of local wires connected to your }F business. For an average demand -billed customer, 78% of your total bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. ENERGY AT AN AFFORDABLE COST. We're investing in, clean energy. While providing the sarne safe, reliable energy that you've always known at an affordable cost. m 0 0 ED Page 4 of 6 0 Xcel Energy DAILY AVERAGES Last Year Temperature 36' F Electricity kWh 2.3 Electricity Cost $2.65 i MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLO ECONOMIC DEV AUTH WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8 STATEMENT NUMBER STATEMENT DATE ;1/;06/202;2505 759252207 12/08/2021 SERVICE ADDRESS: 112 W RIVER ST MONTICELLO, MN 55362-8766 NEXT READ DATE: 01/07/22 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303409149 INVOICE NUMBER: 0938209028 INFORMATIONMETER READING METER 15062258 Read Dates: 11/01/21-12/02/21 (31 Days) DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 69386 Actual 69341 Actual 45 kWh Demand Actual 2.63 kW Billable Demand 0 kW ELECTRICITY CHARGES RATE: General Service DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $25.64 Energy Charge 45 kWh $0.034070 $1.53 Fuel Cost Charge 45 kWh $0.028000 $1.26 Sales True Up 45 kWh $0.008780 $0.40 Energy Chg Crd 45 kWh - $0.015180 - $0.68 CR Demand Charge Winter 0 kW $10.490000 $0.00 Affordability Chrg $3.60 Resource Adjustment $1.57 Subtotal $33.32 City Fees $31.00 Total $64.32 Premises Total $64.32 INFORMATION ABOUT YOUR BILL For an average non -demand customer, 68% of your bill refers to power plant costs, 15% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of your total bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. ENERGY AT AN AFFORDABLE COST. We're investing inclean energy. While providing the same safe, reliable energy that you've always known at an affordable cost. M 0 XcelEnergy& TT i� COOL YOUR REFRIGERATION ERATION COSTS Upgrading to energy -efficient refrigeration eguiprnent and systems can save energy and iowe r operating costs. e have rebates available on qualifying display eases, dOOfs, defrost controls for walk. in coolers and more. TO get started, gO tO xcelenergy-corn/Refrigerabon to complete the digital appiication for a free, Onsite refrigeration assessment. The assesame nt will help identify energy -saving opportunities at your facility, AREE IHARASHIA GABOOJINTA Casriyeynta g81abka iyo nidaaniyada claboojinta ee tamar-tashiilkC Ieh waxay kuu badbaadin karaan tamar waxayna yarayn karaan kharashkaaga hawlgabadka. Waxaanu u diyaarinay giime-dhimis khasnadaba alaabta la dhigOr albaabadar xakamaynta dhalaalidda ee gabOojiyayaasha is dhex socan karo iyo adeegyo dheeraad ah, For more information call an energy specialist at Si aad u bilaVVdOr bongo halkan xcelenargy-corm 855-839-8862 or email us at Refrigeration si aad u buuxiso daIabka elektarooniga EnergyEffidwricy@xcelenergy.eom, aft ee giimaynta gaboojlnta oo biIaashka ah, ee Isla goobta ka dhacaysa. Qiimaymu waxay gacan ka gaysaneysaa inaad agoonsato fursadaha tamar-ta9hiilka ee xai-u laiada Ica JIra, Macluumaad dheeraad ah, ka wac xeeidheore gaabbilsan arrimaha tamarta 856439-8862 ama iirneyl rkoogu soo dir E=nergyEfficiertcy:Oxcelennegy-corn. xcel9n9Nycom 10 2021 k6al Er -orgy Inc- I Kaol Emrgy is a e9gimurw #aNrnark VXcel Enprly Inc. 1 1221ONO2 M EDA Agenda: 02/09/22 6. Consideration of Adopting Resolution #2022-02 Requesting the City Council Call for a Public Hearing related to establishment of Economic Development TIF District #144 Supporting WashburnPOS's Facility Expansion (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution #2022-02 requesting the City Council call for a public hearing related to the proposed establishment of an Economic Development Tax Increment Financing (TIF) District (#1-44). The recent submittal of a TIF Application by WashburnPOS indicates that the company plans to construct a 42,000 to 50,000 square foot addition on the south side of its existing 33,000 square foot facility located at 218 Chelsea Road. WahsburnPOS is involved in the business of repair and light assembly of point -of -sale computer systems. They have been operating from the current location in Monticello since the 1990s. Due a recent spurt of growth, WashburnPOS is also leasing a portion of building on Edmonson Avenue and just entered into a lease for a building on Dundas, both of which are used as warehouse space. WashburnPOS's customers include large retailers such as Target, Home Depot, Tractor Supply Company, hotels, casinos, cruise lines, grocery stores and a variety of small retail companies. The company currently employs 43 FTE and will add 44 new FTE workers as part of the expansion proposal. For the expansion, WashburnPOS is proposing to have the new building addition extend nearly to the south property line of its current 4.21-acre lot. The semi -truck parking area on the south side of the existing building will be displaced with the building expansion proposal. Hence, the company is seeking to purchase the 1.46-acre lot directly south of the WashburnPOS site. The company ownership believes this area will allow it to place a semi - truck staging area on the newly acquired land as well as allow for another potential future building expansion. A project sources and uses provided by WashburnPOS shows the various proposal components. The total project cost is $6,251,000. A financing gap of $1,543,599 has also been identified. To fill the projected gap, City staff have suggested several potential assistance programs as possible solutions. Those economic development assistance tools include: • Tax Increment Financing (TIF) • MN -DEED Job Creation Fund (JCF) Grant program • Greater Monticello Enterprise Fund Loan Program As noted, in the TIF application, WashburnPOS is indicating that without TIF and other assistance, to fund the project and specifically write down the land purchase costs, site preparation and grading components, the proposed expansion will not occur at this site. The alternatives for the company would be to continue to rent off site space for a period of time until it could find a new facility of the appropriate size to relocate to. Currently, there are no available buildings in the range of 75,000 to 85,000 square feet (33,000 + 45,000 = 78,000) in 1 EDA Agenda: 02/09/22 the City of Monticello. The company ownership's preference is to stay in the existing building and add sufficient square footage to be used as a warehouse and distribution facility so it can avoid significant disruptions to the business and the current workforce. Staff have developed a scoring system to evaluate the merits of economic development projects. It has been used consistently since 2016. Based on the metrics, the score for the WashburnPOS expansion proposal as it has been identified is 32.5. This is comparable to the UMC facility 2020-2021 expansion score of 33 points. The fact that WashburnPOS is adding a large number of jobs as well as significant new tax base on a relatively small land parcel are the biggest contributing factors in the score. The amount of public assistance is at a lower level than the UMC project as well. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community Development Director have been involved in the initial work tasks related to the WashburnPOS expansion proposal. Several meetings have been held with the company and the Economic Development Manager, the WSB Consultant staff and MN -DEED representatives for the JCF program and the MIF program. It should be noted that if the EDA approves moving forward with the TIF assistance, a sizeable number of action steps and tasks lie ahead for the proposal. A TIF review and approval calendar is included illustrating the key milestones. A projection of the number of hours that will be allocated to the proposal is approximately 55 to 75. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of Resolution #2020-02 asking the City Council to call for a public hearing related to establishment of an Economic Development TIF District is minimal at this point in time. Washburn will be responsible for submitting the TIF application fee of $12,500 if the EDA adopts the Resolution kickstarting the process. Those dollars will be used to pay the consulting staff fees. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2020-02 requesting the City Council call for a public hearing related to the establishment of Economic Development TIF District #1-44 supporting WashburnPOS's proposed 45,000 square foot facility expansion. 2. Motion to table consideration of Resolution #2020-02 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. WashburnPOS is proposing a sizeable physical expansion at its current site. The proposal involves the purchase of the existing building, new construction of a 45,0000 square foot addition and acquisition of a 1.42-acre parcel which Ua EDA Agenda: 02/09/22 will allow it to maintain adequate semi -truck staging at the site and provide the capability of another future building expansion as well. The total proposal cost for all components is projected at $6,251,000. D. SUPPORTING DATA: A. Resolution #2022-02 B. TIF #1-44 Review and Approval Calendar C. TIF Application with supporting exhibits CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-02 RESOLUTION REQUESTING A PUBLIC HEARING ON THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-44 BE IT RESOLVED, by the Board of Commissioners (the "Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: WHEREAS, the City Council (the "Council") of the City of Monticello, Minnesota (the "City") previously established its Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") and has previously created multiple tax increment financing districts within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"), in an effort to encourage the redevelopment and development of certain designated areas within the City; and WHEREAS, the City has transferred the administration and control of its tax increment financing districts to the Authority; and WHEREAS, the Authority recognizes an ongoing need to encourage economic development opportunities within the Redevelopment Project; and WHEREAS, the Authority is proposing the creation of Tax Increment Financing District No. 1-44 (the "TIF District"), an economic development district, within the Redevelopment Project, and the approval of a Tax Increment Financing Plan ("TIF Plan") for the TIF District, pursuant to and in accordance with Section 469.175 of the TIF Act, for the purpose of assisting the expansion of an existing warehouse, distribution, and manufacturing facility and fostering the creation of jobs within the City; and WHEREAS, the creation of tax increment financing districts must be approved by the City Council of the City after a duly noticed public hearing. NOW, THEREFORE BE IT RESOLVED by the Board as follows: The Authority hereby requests that the Council call for a public hearing to be held on or after April 11, 2022, to consider the proposed establishment of the TIF District and the adoption of a TIF Plan for the TIF District, and to cause notice of said public hearing to be given as required by law. 2. The Authority directs the Executive Director to transmit copies of the TIF Plan to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed TIF Plan is in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. MN190\172\777461.v1 3. The Executive Director of the Authority is hereby directed to submit a copy of the TIF Plan to the Council for its approval. 4. The Authority directs the Executive Director to transmit the TIF Plan to Wright County and Independent School District No. 882 (Monticello Public Schools) not later than March 11, 2022. 5. Staff and consultants are authorized and directed to take all other steps necessary to prepare the TIF Plan and related documents and to undertake other actions necessary to bring the TIF Plan before the Council. Adopted by the Board of Commissioners of the City of Monticello Economic Development Authority this 9t' day of February, 2022. President Attest: Executive Director MN190\172\777461.v1 S M T W T F S 1 2 3 4 5 6 7 8 ■ 10 11 12 13 14 15 16 17 18 19 20 21 22 A 24 25 26 27 EM S M T W T F S 1 2 3 4 5 6 7 8 i 10 11 12 13 - 15 16 17 18 19 20 21 22 - 24 25 26 27 - 29 30 31 S M T W T F S 1 2 3 4 6 7 8 9 10 12 14 15 16 17 18 19 20 21 22 23 24 - 26 - 28 29 30 S M T W T F S 1 2 3 4 5 6 7 8 - 10F1 12 13 14 15 16 17 18 19 20 21 22 M 24 _ 25 26 27 28 29 30 31 City of Monticello Central Monticello Redevelopment Project No. 1 Establishment of Tax Increment Financing District No. TIF 1-44 Economic Development TIF District Washburn POS Expansion Public Hearing on April 11 February 9 EDA request City Council call for hearing February 14 City Council calls for public hearing March 11 Last day for notice and TIF plan and fiscal implications to County and School District March 28 Last day to submit notice to newspaper March 31 Publication date for hearing notice April 5 Planning Commission review April 11 Public hearing and establishment of TIF District April 13 EDA approval of TIF May 2 Request certification by County May 2 Submit plan to State June 30 Certification of TIF District by this Date Notes: 1 1 Denotes City Council meeting dates 2 Denotes EDA meeting dates 4 Denotes Planning Commission meeting date 5 City publication dates need to be confirmed and added to calendar TIF for Economic Development NORTHLAND �,,r- PUBLIC FINANCE 1/25/2022 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicant: Washburn Computer Group Address: 218 Chelsea road Telephone number: Name of contact person: 763-271-3000 Mike Willard REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created, hourly wages and other community assets. 6. A written description of the developer's business, principals, history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. SIGNATURE Applicant's signature Date: 1 /28/2022 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Business Assistance Financing GENERAL INFORMATION: Business Name: Washburn Computer Group Address: 218 Chelsea Road, Monticello, MN Type (Partnership, etc.): LLC Authorized Representative: Mike Willard Datc: 1 /28/2022 Phone: 763-271-3000 Description of Business: Repair, refurbish, and remanufacturer of POS equipment for the retail industry Legal Counsel: Lee Viorel, Lowther Johnson Attorneys at Law Address: 901 St. Louis Street 20th Floor, Springfield MO i'hone: 417-866-7777 x242 FINANCIAL BACKGROUND: 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? No 3. Have you applied for conventional financing for the project? Not at this point although Riverwood bank in Monticello has been engaged and is assisting in that process 4. List financial references: a. Bremer Bank St. Cloud b. Riverwood Bank Monticello C. Central bank of Branson 2 5. Have you ever used Business Assistance Financing before? SBA 504 through a previous business If yes, what, where and when? 2014 in Missouri. DirtZero, LLC was the borrower fora building purchase PROJECT INFORMATION: 1. Location of Proposed Project: 218 Chelsea road 2. Amount of Business Assistance requested? The GAP for this project is 1,543,599.15 3. Need for Business Assistance: Without adequate assistance the project doesnt happen need to expand 4. Present ownership of site: 218 Chelsea WCG Building partners, subject rroo��r Powersports Services, LLC. 5. Number of permanent jobs created as a result of project? A m i n i m u m of 44 6. Estimated annual sales: Present: 13-15 million 7. Market value of project following completion: $6 million 8. Anticipated start date: 5/1 /2022 FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition $ b. Site development c. Building cost d. Equipment e. Architectural/engineering fee f. Legal fees g. Off -site development costs Future: 17 million Completion Date: 300.000.00 3/30/2023 See attached sources and uses 3 2. Source of financing: a. Private financing institution b. Tax increment funds c. Other public funds d. Developer equity See attached sources and uses PLEASE INCLUDE: 1. Preliminary financial commitment from bank. 2. Plans and drawing of project. 3. Background material of company. 4. Pro Forma analysis. 5. Financial statements. 6. Statement of property ownership or control. 7. Payment of application fee of $10,000. Overview Washburn Computer Group, Inc is a corporation that provides, repairs, and services point -of -sale (POS) products to the grocery, retail, and hospitality industries. The Company also repairs and sells POS products from front-end registers to back -end servers. The Company incorporated over 30 years ago and operates out of two locations; its headquarters in Monticello, Minnesota and Las Vegas, Nevada. Financial Summary The Company has reported net income in each of the last sixteen quarters. There are five main revenue streams. • Sales -Repair: Revenue from repairing downed customer equipment. • Sales -Retail: Income related to retail sales and their AE (Advanced Exchange) program. • Sales -Returns: Fees charged to customers for restocking. • Service -Income: Includes fees for service technicians labor and processing warranties for downed equipment. • Shipping -Income: Consists of margins made on shipping items or products for customers. Leadership Current leadership assumed ownership control at the end of August of 2021. The current owner, Mike Willard has 31 years of previous experience in the POS industry. Mostly recently with a nationwide POS service provider (Truro Retail Technologies) that Mr. Willard sold in 2011 but remained active with through 2021 on the service side. Most recently as the Director of Service. He stepped down from that role to assume his duties at Washburn in August of 2021. Dilemma The most recent quarter has seen explosive growth and the need for additional space to warehouse equipment. Currently with one offsite warehouse 2 blocks from the Monticello HQ and another auxiliary warehouse secured nearby for occupancy in March the need is still not met. With the 30+% growth in gross sales and clear demand for additional growth it has been determined that either an addition to the current location or moving to a larger facility that can accommodate this growth are the only viable options. 218 Chelsea Road I 5000 W Oakey Blvd, #14 Monticello, MN 55362 Las Vegas, NV 89146 WashburnPOS.com Washburn Computer Group Monticello project Purchase 218 Chelsea 2,000,000.00 Fallon Ave Lot 1.5 Acres 300,000.00 New addition/sq ft 87 40,000 3,480,000.00 Construction overrun 12% 417,600.00 Projected closing costs 54,000.00 Total Project COST 6,251,600.00 Riverwood Bank note 2,740,000.50 SBA note 1,968,000.35 Total commited financing 4,708,000.85 GAP 1,543,599.15 Current applicable Cash Flow items Chelsea rent 15,000.00 Edmundson rent 7,800.00 Fallon rent 3,800.00 Total rent 26,600.00 Riverwood payment 4.99%/25 yr 16,060.21 SBA payment 3.026%/25 yr 9,411.43 Total payments 1 25,471.64 Additional Monthly Cash Flow burden 1 -1,128.36 Title Director of IT Director of HR IT technician Tech 1 Tech 1 Tech 2 Tech 2 Tech lead Tech lead Cleaners Cleaners Receiving Receiving Shipping Shipping Warehouse Warehouse Warehouse supervisor Administrative Administrative Total Year 1 Total Year 2 Grand Total Description Responsible for all INTERNAL IT necessary for Washburn to function. Network, software, hardware, training, etc. Responsible for Human Resources inside of Washburn. Job descriptions, hiring, employee benefits, policies and p Responsible for all RMA functions with external companies. Responsible for internal networks and software. Entry level bench repair technicians. Repair mechanical/electronic POS equipment. Entry level bench repair technicians. Repair mechanical/electronic POS equipment. Advanced level bench repair technicians. Repair mechanical/electronic POS equipment. Advanced level bench repair technicians. Repair mechanical/electronic POS equipment. Supervisory level bench repair technicians. Repair mechanical/electronic POS equipment. Supervisory level bench repair technicians. Repair mechanical/electronic POS equipment. Entry level disassemble and cleanning of POS equipment prior to repair process. Entry level disassemble and cleanning of POS equipment prior to repair process. Receiving of defective inventory shipped from the field. Logging into Washburn inventory system. Receiving of defective inventory shipped from the field. Logging into Washburn inventory system. Shipping of repaired inventory back to customer and removing from Washburn inventory package. Shipping of repaired inventory back to customer and removing from Washburn inventory package. Moving of inventory between departments. Boxing and storage of good inventory in the warehouse. Keeping loc Moving of inventory between departments. Boxing and storage of good inventory in the warehouse. Keeping loc Supervisory of the Warehouse staff. Support role for AP/AR/HR. Support role for AP/AR/HR. Count Wage Extended Year added 1 $95,000 $95,000 1 1 $95,000 $95,000 1 1 $38,000 $38,000 1 10 $32,000 $320,000 1 1 $32,000 $32,000 1 4 $38,000 $152,000 1 1 $38,000 $38,000 1 4 $44,000 $176,000 1 1 $44,000 1$44,000 2 3 $32,000 $96,000 1 1 $32,000 $32,000 2 4 $32,000 $128,000 1 1 $32,000 $32,000 2 4 $32,000 $128,000 1 1 $32,000 $32,000 2 2 $32,000 $64,000 1 1 $32,000 $32,000 2 1 $44,000 $44,000 2 1 $32,000 1$32,000 1 1 $32,000 $32,000 1 38 $1,426,000 6 $216,000 44 $1,642,000 1 2 3 4 5 6 7 8 9 10 11 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Sworn Construction Statement vs. Draws Borrower: Washburn POS Budget Price 1/27/22 Loan #: Loan Amount: Sworn Construction Stmt Paid by % Budget Customer Balance Draw Request One Balance Date of Draw CONTRACTOR Land $0.00 $0.00 Original Survey $0.00 $0.00 Bldg Permit Conlon SAC/ WAC, Trunk fees NW Exc Architectural Services Mahler Civil Engineer Services Schultz Temp fac Conlon Water Meter Fee (Dom.) Molitor Special Inspections ITT Curb Survey marking Allowan $11,165.00 $11,165.00 $11,165.00 $15,225.00 $15,225.00 $15,225.00 $34,005.00 $34,005.00 $34,005.00 $6,600.00 $6,600.00 $6,600.00 * $15,160.00 $15,160.00 $15,160.00 $0.00 $0.00 $8,628.00 $8,628.00 $8,628.00 $0.00 $0.00 $0.00 $0.00 Sub Total $90,783.00 $49,230.00 $49,230.00 Clearing Bldg Site/ silt fence NW Exc Excavating, Grading NW Exc Erosion Control NW Exc Utilities, Water and Sewer Molitor Black Dirt NW Exc Demo / Framing Ext Building Conlon Grass Seeding Irrigation $15,500.00 $15,500.00 $15,500.00 $222,000.00 $222,000.00 $222,000.00 $8,600.00 $8,600.00 $8,600.00 $54,305.00 $54,305.00 $54,305.00 $6,600.00 $6,600.00 $6,600.00 * $34,000.00 $34,000.00 $34,000.00 $0.00 $0.00 $0.00 $0.00 Sub Total 9.78% $341,005.00 $341,005.00 $341,005.00 Underground insulation Curb and gutter Apron and Sidewalks Trench Drains Emil Poly Under slab entire bldi Concrete Floors/ flatwork Bastien $8,630.00 $8,630.00 $8,630.00 Hansen $0.00 $0.00 $0.00 Bastien $10,000.00 $10,000.00 $10,000.00 $0.00 $0.00 Bastien $0.00 $0.00 $0.00 Bastien $458,862.00 $458,862.00 $458,862.00 25 26 27 Asphalt/ paving Hansen $84,200.00 $84,200.00 $84,200.00 Sub Total 1 16.12% $561,692.00 $477,492.00 $477,492.00 Handicap signage, inside and out Conlon Monument Sign Allowance Sub Total $610.00 $610.00 $610.00 $0.00 $0.00 0.02% $610.00 $610.00 $610.00 FIRE SPRINKLER Building Shell B&z Fire * 3.75% $130,630.00 $130,630.00 $130,630.00 WellsConc* 37.68% $1,313,131.00 $1,313,131.00 $1,313,131.00 Sub total 41.43% $1,443,761.00 $1,443,761.00 $1,443,761.00 Framing for Interior office Conlon Interior Trim, doors, hdwr. Lum Conlon INT / EXT Doors Frames Conlon Interior windows? Allowance Conlon Misc, Building Materials Conlon EPDM Roofing Buysse EXT Flashing / Joint Sealing Buysse Fire Cabinets Conlon Counter Tops, Breakroom (allot Drywall - Taping Office Ceiling, Accoustical tile Painting Interior Glass, Mirrors, Blinds Appliances FFE $9,643.00 $9,643.00 $9,643.00 $6,600.00 $6,600.00 $6,600.00 $18,270.00 $18,270.00 $18,270.00 $5,278.00 $5,278.00 $5,278.00 $10,500.00 $10,500.00 $10,500.00 $440,000.00 $440,000.00 $440,000.00 $6,400.00 $6,400.00 $6,400.00 $1,525.00 $1,525.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sub Total 14.30% $498,216.00 $1,525.00 $1,525.00 Xcel Energy Utilities Centerpoint Energy Gas Fibernet Internet TDS utilities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sub Total 0.00% $0.00 $0.00 $0.00 Plumbing Plumbing Permit OPEN SPOT Heating / Air Conditioning Weidners $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $143,625.00 $143,625.00 $143,625.00 Sub Total 1 4.12%1 $143,625.00 $143,625.00 $143,625.00 Electrical Erickson Low voltage, Internet (Allowan Security System Phone system $194,271.00 $194,271.00 $194,271.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sub Total 5.57% $194,271.00 $0.00 $0.00 Flooring Installation labor Carpeting allow. Offices Laminate showroom/ conf. rm Ceramic Tile, bathrooms $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Sub total 0.00% $0.00 $0.00 $0.00 Rental of temp heaters Frost blankets Porta Potty Rental Utilities during construction? $0.00 $0.00 $0.00 $0.00 Conlon $900.00 $900.00 $900.00 $0.00 $0.00 $0.00 $0.00 Sub total 0.03% $900.00 $900.00 $900.00 Pallet racking, shelving $0.00 $0.00 Sub Total 0.00% $0.00 $0.00 $0.00 Garbage - Dumpster $5,600.00 $5,600.00 $5,600.00 Landscaping Escrow $0.00 $0.00 Interest on Loan Closing costs pd from first drai $0.00 $0.00 10% Overrun $39,000.00 $39,000.00 $39,000.00 Buildings Contract Bid $165,537.00 $165,537.00 $165,537.00 $0.00 $0.00 Total 91.37% $3,485,000.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 Bank Loan $0.00 $0.00 Note- This means price is confirmed Draw Draw Request Request Two Balance Three Draw Request Balance Four Draw Request Balance Five Draw Request Balance Six Balance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $11,165.00 $11,165.00 $11,165.00 $11,165.00 $11,165.00 $15,225.00 $15,225.00 $15,225.00 $15,225.00 $15,225.00 $34,005.00 $34,005.00 $34,005.00 $34,005.00 $34,005.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $15,160.00 $15,160.00 $15,160.00 $15,160.00 $15,160.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8,628.00 $8,628.00 $8,628.00 $8,628.00 $8,628.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $49,230.00 $49,230.00 $49,230.00 $49,230.00 $49,230.00 $15,500.00 $15,500.00 $15,500.00 $15,500.00 $15,500.00 $222,000.00 $222,000.00 $222,000.00 $222,000.00 $222,000.00 $8,600.00 $8,600.00 $8,600.00 $8,600.00 $8,600.00 $54,305.00 $54,305.00 $54,305.00 $54,305.00 $54,305.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $34,000.00 $34,000.00 $34,000.00 $34,000.00 $34,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $341,005.00 $341,005.00 $341,005.00 $341,005.00 $341,005.00 $8,630.00 $8,630.00 $8,630.00 $8,630.00 $8,630.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $458,862.00 $458,862.00 $458,862.00 $458,862.00 $458,862.00 $84,200.00 $84,200.00 $84,200.00 $84,200.00 $84,200.00 $477,492.00 $477,492.00 $477,492.00 $477,492.00 $477,492.00 $610.00 $610.00 $610.00 $610.00 $610.00 $0.00 $0.00 $0.00 $0.00 $0.00 $610.00 $610.00 $610.00 $610.00 $610.00 $130,630.00 $130,630.00 $130,630.00 $130,630.00 $130,630.00 $1,313,131.00 $1,313,131.00 $1,313,131.00 $1,313,131.00 $1,313,131.00 $1,443,761.00 $1,443,761.00 $1,443,761.00 $1,443,761.00 $1,443,761.00 $9,643.00 $9,643.00 $9,643.00 $9,643.00 $9,643.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $6,600.00 $18,270.00 $18,270.00 $18,270.00 $18,270.00 $18,270.00 $5,278.00 $5,278.00 $5,278.00 $5,278.00 $5,278.00 $10,500.00 $10,500.00 $10,500.00 $10,500.00 $10,500.00 $440,000.00 $440,000.00 $440,000.00 $440,000.00 $440,000.00 $6,400.00 $6,400.00 $6,400.00 $6,400.00 $6,400.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $194,271.00 $194,271.00 $194,271.00 $194,271.00 $194,271.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $900.00 $900.00 $900.00 $900.00 $900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $900.00 $900.00 $900.00 $900.00 $900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,600.00 $5,600.00 $5,600.00 $5,600.00 $5,600.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $39,000.00 $39,000.00 $39,000.00 $39,000.00 $39,000.00 $165,537.00 $165,537.00 $165,537.00 $165,537.00 $165,537.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $0.00 $0.00 $0.00 $0.00 Draw Draw Draw Request Request Balance Nine Balance Ten Draw Request Request Seven Balance Eight $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $11,165.00 $11,165.00 $11,165.00 $15,225.00 $15,225.00 $15,225.00 $34,005.00 $34,005.00 $34,005.00 $6,600.00 $6,600.00 $6,600.00 $15,160.00 $15,160.00 $15,160.00 $0.00 $0.00 $0.00 $8,628.00 $8,628.00 $8,628.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $49,230.00 $49,230.00 $49,230.00 $15,500.00 $15,500.00 $15,500.00 $222,000.00 $222,000.00 $222,000.00 $8,600.00 $8,600.00 $8,600.00 $54,305.00 $54,305.00 $54,305.00 $6,600.00 $6,600.00 $6,600.00 $34,000.00 $34,000.00 $34,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $341,005.00 $341,005.00 $341,005.00 $8,630.00 $8,630.00 $8,630.00 $0.00 $0.00 $0.00 $10,000.00 $10,000.00 $10,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $458,862.00 $458,862.00 $458,862.00 $84,200.00 $84,200.00 $84,200.00 $477,492.00 $477,492.00 $477,492.00 $610.00 $610.00 $610.00 $0.00 $0.00 $0.00 $610.00 $610.00 $610.00 $130,630.00 $130,630.00 $130,630.00 $1,313,131.00 $1,313,131.00 $1,313,131.00 $1,443,761.00 $1,443,761.00 $1,443,761.00 $9,643.00 $9,643.00 $9,643.00 $6,600.00 $6,600.00 $6,600.00 $18,270.00 $18,270.00 $18,270.00 $5,278.00 $5,278.00 $5,278.00 $10,500.00 $10,500.00 $10,500.00 $440,000.00 $440,000.00 $440,000.00 $6,400.00 $6,400.00 $6,400.00 $1,525.00 $1,525.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,525.00 $1,525.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $143,625.00 $194,271.00 $194,271.00 $194,271.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $900.00 $900.00 $900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $900.00 $900.00 $900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,600.00 $5,600.00 $5,600.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $39,000.00 $39,000.00 $39,000.00 $165,537.00 $165,537.00 $165,537.00 $0.00 $0.00 $0.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $3,360,769.00 $0.00 $0.00 $0.00 $0.00 PROPERTY INFORMATION * Sale Price $300,000.00 * Lot is 1.5 Acres * Post Frame Building Allowed * Outdoor Storage Allowed with CUP * Wright County * PID 155-249-001010 2021 Taxes $2,594.00 * Zoned: I-2 Industrial District * Businesses in Area Include: Dakota Supply Group, Washburn, Fleet Farm, UMC, Copperhead Industries, WSI Industries, McDonald's, Dairy Queen Grill & Chill, Pizza Ranch, Hoglund Bus Co., Holiday Station, General Rental, Best Western and more... .f 5t FrdadeAm. : ' • , ' i V � i7At CM 41ri zONTICETinnlr Far rn*"LO ' linPf i t 9tA5cha t au elo Hoorn Rapids ElnoyLA 2r. 4 F PgFk- Crlx v L� plp'w"u111 waietios+„ Wny,nrn Minneapolis Map��wooa 4�a�nY Minnetonka — Fd inn — 'l+acana Menlo Ys r r^i Blaom:nglon !iiver =i r.- Height- Harwood is Shaicaaee Eagan Contact: WAYNE ELAM (763) 229-4982 WElam@crs-mn.com COMMERCIAL REALTY SOLUTIONS For Sale Industrial Land xxx Fallon Ave, Monticello 55362 -.- ; 'lift P. - I - - - SITE - VAN j or - i �- •rair - j � 3 Highway 55 West, Buffalo, MN 55313-4320 1 763-682-2400 1 info@crs-mn.com 1/28/22, 9:49 PM Beacon - Wright County, MN - Report: 155249001010 BeaconTM Wright County, MN Summary Parcel ID 155249001010 Property Address Sec/Twp/Rng 14-121-025 Brief Tax Description Sect-14Twp-121 Range-025 OAKWOOD IND PARK 3RD ADDN Lot-001 Block-001 (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 234-(NON-HSTD)INDSLAND &BLDGS District (1101) 1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 08/30/2018 Note: Class refers to Assessor's Classification Used For Property Tax Purposes Valuation 2021 Assessment 2020 Assessment 2019 Assessment 2018 Assessment + Estimated Land Value $159,300 $144,200 $144,200 $111,500 + Estimated Building Value $0 $0 $0 $0 + Estimated Machinery Value $0 $0 $0 $0 = Total Estimated Market Value $159,300 $144,200 $144,200 $111,500 Taxation 2021 Payable 2020 Payable 2019 Payable Estimated Market Value $144,200 $144,200 $111,500 Excluded Value $0 $0 $0 Homestead Exclusion $0 $0 $0 = Taxable Market Value $144,200 $144,200 Net Taxes Due $2,594.00 $2,626.00 + Special Assessments $0.00 $0.00 = Total Taxes Due $2,594.00 $2,626.00 Change -1.22% 35.64% 0.00% Taxes Paid Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1742930 12/8/2021 2021 $0.00 $0.00 $116.73 ($1,413.73) 1709383 5/20/2021 2021 $0.00 $0.00 $51.88 ($1,348.88) 1671461 12/21/2020 2020 $0.00 $0.00 $275.73 ($2,901.73) 1595778 1/29/2020 2019 $0.00 $0.00 $117.72 ($1,125.08) 1555296 5/24/2019 2019 $0.00 $0.00 $38.72 ($987.36) Map No data available for the following modules: Sketches. https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&Q=235116054&KeyValue=15524900... 1 /2 1/28/22, 9:49 PM Beacon - Wright County, MN - Report: 155249001010 The information provided on this site is intended for reference purposes only. The information is not suitable for legal, engineering, or Developed by surveying purposes. Wright County does not guarantee the accuracy of the information contained herein. Qq1 Schneider User Privacy Policy GEOSVAT IA L GDPR Privacy Notice Last Data Upload: 1/28/2022,11:02:58 AM Version 2.3.174 https:Hbeacon.schneidercorp.com/AppIication.aspx?AppID=1 87&LayerlD=2505&PageTypelD=4&Pagel D=1310&Q=235116054&KeyVal ue=15524900... 2/2 1/28/22, 9:46 PM https://web.co.wright.mn.us/proptax/resuIts.asp?pid=155249001010&stype=prop&taxyear=2022 Wright County MINNESOTA Property Tax Search/Payments The property information database is updated daily. Last update&112812022 3: 00 AM Parcel Eva � Property ID: 155-249-001010 Tax Year: 2022 Property Address: Municipality: CITY OF MONTICELLO School Dist: 0882- SD 0882 MONTICELLO Owner Name: (FEE OWNER) Taxpayer Name & Address: PLATINUM TECHNOLOGIES LLC POWERSPORTS SERVICES LLC 525 PROGRESS RD 15608 COUNTY ROAD 7 NW WAITE PARK MN 56387-1719 CLEARWATER MN 55320-2118 Lot: 001 Section: 14 Plat Name: Block: 001 Township: 121 OAKWOOD IND PARK 3RD ADDN Range: 025 Deeded Acre: 0 Legal Description: N/A Note: Legal descriptions here are for tax purposes only. Do not use them for recording purposes. New Search :: Parcel Data :: Tax Summary_ :: Tax Statements :: Assessment :: Appraisal :: Sales Detail Valuations :: Pay Taxes As a public service Wright County is providing access to information maintained by Wright County for individual parcels of property. This information is to be used for reference purposes only. Although reasonable efforts are taken to publish the most current property information, Wright County does not guarantee accuracy of the material contained herein and is not responsible for misuse or misinterpretations. https://web. co.wrig ht. m n. us/proptax/results.asp?pid=15524900101 O&stype=prop&taxyear=2022 1 /1 Wright County 2 WRIGHT COUNTY FINANCE & TAXPAYER SERVICES m 10 SECOND STREET N.W. ROOM 230 4 o BUFFALO, MN 55313-1194 Tess a 763-682-7573 or763-682-7574 www.co.wright.mn.us Property ID#: R155-249-001010 2021 2020 Values for Taxes Payable in VALUES & CLASSIFICATION Sentin March 2020 Taxes Payable Year: 2020 2021 Estimated Market Value: 144,200 144,200 Homestead Exclusion: Taxable Market Value: 144,200 144,200 New Improvements: Expired Exclusions: Property Classification: INDUSTR INDUSTR Taxpayer ID Number: 289157 POWERSPORTS SERVICES LLC 15608 COUNTY ROAD 7 NW Step PROPOSED TAX Sent in November 2020 CLEARWATER MN 55320-2118 Proposed Tax: 2,594.00 PROPERTY TAX STATEMENT First-half Taxes: 1,297.00 Second -half Taxes: 1,297.00 Total Taxes Due in 2021: 2,594.00 REFUNDS? $$$ You may be eligible for one or even two refunds to reduce your property tax. Read the back of this statement to find out how to apply. Property Tax Statement Property Address: Property Description: Sect-14 Twp-121 Range-025 OAKWOOD IND PARK 3RD ADDN Lot-001 Block-001 Special Assessment Breakdown: Taxes Payable Year 2020 2021 1. Use this amount on Form M1 PR to see if you are eligible for a homestead credit refund. File by August 15. If this box is checked, you owe delinquent taxes and are not eligible. ❑ 2. Use these amounts on Form M1 PR to see if you are eligible for a special refund. 1 x 3. Your property taxes before credits 2,626.00 2,594.00 4. Credits that reduce your property taxes 0 A. Agricultural and rural land credits 'm B. Other credits °' 5. Property taxes after credits 2,626.00 2,594.00 U) v 'o a 6. County 7. City or Town (CITY OF MONTICELLO ) 8. State General Tax fD 9. School District (0882) A. Voter approved levies B. Other local levies sv 10. Special Taxing Districts A. MONTI HRA B. o C. D. 0 11. Non -school voter approved referenda levies 12. Total property tax before special assessments 13. Special Assessments on Your Property See Left for Breakdown of Special Assessments Special Assessment Totals 14. YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS 960.13 945.98 756.34 771.30 257.55 238.53 237.67 230.59 388.61 382.05 25.70 25.55 2,626.00 2,594.00 2,626.00 2,594.00 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — - PAYABLE 2021 2 N D HALF PAYMENT STUB PLEASE READ THE BACK OF THIS STATEMENT FOR IMPORTANT INFORMATION TO AVOID PENALTY PAY ON OR BEFORE: OCTOBER 15, 2021 Total Property Tax for 2021 $2,594.00 0 Property ID Number: R 155-249-001010 2nd Half Tax Amount $1,297.00 rn x� Bill Number: 76763 Penalty o, 0Wm ID Number: 289157 2nd Half Total Amount Due z M n POWERSPORTS SERVICES LLC 15608 COUNTY ROAD 7 NW CLEARWATER MN 55320-2118 nz OZ0 MAKE CHECKS PAYABLE & MAIL TO: Cn 0 m Wright County c Wright County Finance & Taxpayer Services m z 10 Second Street N.W., Room 230 j = Buffalo, MN 55313-1194 K to m rn ❑If your address has changed please check this box and z--i �c °J show the change on the back of this stub. No Receipt Unless Requested. Your cancelled check is your receipt. This Receipt is void if check is not honored --———————————————————————————————————————————————— PAYABLE 2021 1ST HALF PAYMENT STUB PLEASE READ THE BACK OF THIS STATEMENT FOR IMPORTANT INFORMATION TO AVOID PENALTY PAY ON OR BEFORE: MAY 15, 2021 Total Property Tax for 2021 $2,594.00 0 Property ID Number: R 155-249-001010 1st Half Tax Amount $1,297.00 g D _q> Bill Number: 76763 Penalty o= Ulm A A ID Number: 289157 1st Half Tax Amount Due ° -n v POWERSPORTS SERVICES LLC 15608 COUNTY ROAD 7 NW CLEARWATER MN 55320-2118 :v MAKE CHECKS PAYABLE & MAIL TO: = m Wright County T c Wright County Finance & Taxpayer Services m $ z 10 Second Street N.W., Room 230 3 z Buffalo, MN 55313-1194 m m zca 71� ❑If your address has changed please check this box and c Q1 show the change on the back of this stub. No Receipt Unless Requested. Your cancelled check is your receipt. This Receipt is void if check is not honored 1/28/22, 9:45 PM https://web.co.wright.mn.us/proptax/results.asp?pid=155249001010&stype=tax&taxyear=2022 Wright County MINNESOTA Property Tax Search/Payments The property information database is updated daily. Last update&112812022 3: 00 AM = M = = Tax swiiirtary Property ID: 155-249-001010 Tax Year: 2022 Tax information for Payable 2022 is preliminary. Taxable Market Value 159,300 Total Improvement Amount 0 Tax Capacity Amount 2,436 F Green Acres? No F Total Tax 2,992.00 Total Adjustments 0.00 Penalty Collected 0.00 Interest Collected 0.00 Tax Collected 1st Half 0.00 Tax Collected 2nd Half 0.00 Special Assessments Collected 0.00 Prior Years Unpaid? No Total Payoff Amount for all years::IF (click the amount for details) 0.00 Confession of Judgement (COJ) Total Amount Unpaid and Total Payoff Amount are not correct for COJ parcels. Please call 763-682-7587 or 763-684-4540 for these amounts. New Search :: Parcel Data :: Tax Summary :: Tax Statements :: Assessment :: Appraisal :: Sales Detail Valuations :: Pay Taxes As a public service Wright County is providing access to information maintained by Wright County for individual parcels of property. This information is to be used for reference purposes only. Although reasonable efforts are taken to publish the most current property information, Wright County does not guarantee accuracy of the material contained herein and is not responsible for misuse or misinterpretations. https://web. co.wright. m n. us/proptax/results.asp?pid=15524900101 O&stype=tax&taxyear=2022 1 /1 (�2 e Name of Project: l 1. Number of New Employees Point Value Number +1 1-5 +2 6 - 15 +3 16 - 30 +4 �1-50 +5 51 + 2. Number of Jobs Per Acre Point Value Number Per Acre +1 1— 2 per acre +2 3 — 4 per acre +3 5 — 6 per acre +4 6 — 7 per acre +5 8 + rye--- 3. Average Wages for New Jobs -4/T �'J -e-%.Xj F- -FE S(�2 PIP-q G erg Point Value Pay Range Dollar Weighting Total Empl. Weighted $ Amt. +1 $15,000-24,999 $20,000 $ +2 $25,000-291,999 $27,500 $ +3 $30,000-44,999 $37 500 _ G $ COD + 94 $45,000-5,999 $52,500 $ +5 $60,000 + $60,000 $ 4. Public Assistance per New Jobs 0 O 04ublic Assistance Number of new jobs created 2 7, dublic Assistance 1 per new job p Point Value Public Dollars Invested Per New Job +1 Over $50,000 +2 $40,000 to $49,999 +3 $30,000 to $39,999 +4 $20,000 to $29,999 +5 $0 to $19,99 S. Number of Years of TIF Assistance Needed + 0 9 years + 8 years +2 7 years or less 6. Developed Assessed Value Per Acre Point Value Value Per Acre +1 $150,000-199,999 +2 $200,000-349,999 +3 $350,000-499,999 +4 $500,000-599,999 +5 $600,000 + 7. Business Retention Point Value Number of Retained Jobs +0.5 1-5 jobs +1 6-10 jobs +1.5 11-30 jobs +2 31-50 jobs +2.5 50-100 jobs +3 101 + jo s 3 8. Ratio of Private versus Public Investment in Project icy .51, 6 O ( Private Investment �0L) EDA/Public Investment -60 CTotal Investment 14o37.7 Ratio of Private versus Public financing Point Value Ratio +1 over 2:1 +2 over +3 over 4:1 +4 over 5:1 (f+5 6:1 o=greater 9. Significant Community Impact Point Value Unsubsidized Spin -Off development potential �+I��Lo�wot�'J=�_s�-- �u�nsub�sidi�zedd�evel�om�ent +2 Moderate potential for spin-off unsubsidized development +3 High potential for spin-off unsubsidized development 10. Tenure in Business Operation Point Value Number of Years in Business +1 Five years or ess +2 6 to 10 years +3 11 years or more 4 11. Environmental Impacts Point Value Tvoes of Environmental Issues '+1 Enhances the environmental aspects of a site via clean-up of contaminants or improved aesthetics via unique site or architectural features ,-/ -0- o impacts -1 Noise Issues -2 Noise and negative visual aesthetics -3 Noise, odors, dust, traffic and negative visual aesthetics WORKSHEET SUMMARY Factors Total Points #1. Number of New Employees-4 �— #2. Number of Jobs Per Acre #3. Average Wages for New Jobs (1-5) #4. Public Assistance Per New Job o 6 #5. Number of Years of TIF Assistance b (1-2) l C b �C #6. Developed Assessed Value Per Acre #7. Business Retention (# of Jobs) S-' (.5-3) #8. Ratio of Private to Public Invest. (1-5) #9. Significant Impact/Comp Plan Goals ) (1-3) #10. Number of Years of Business Oper. (1-3) #11. Environmental Impacts (-3 to +1) Total Points 3-Z.5 4,4( Total Possible Points = 42 Total Worksheet Points Equated to Land Price Total Overall Points Price for Otter Creek Land 1-5 $3.16 per sq. ft. (No TIF) 5-10 $3.16 per sq. ft. with TIF as a land reimbursement to developer 11-15 20 percent discount from market price = $2.53 per sq. ft. 16-20 40 percent discount from market price = $1.90 per sq. ft. 21-25 60 percent discount from market price = $1.26 per sq. ft. 26-30 80 percent discount from market price = $.63 per sq. ft. 31-42 100 percent discount from market price = $1.00 for the entire lot 5 EDA: 02/09/22 7. Consideration of approving a Contract with Northland Securities, Inc. (NSI) in the amount of $9,200 for Financial Planning Services related to establishing Economic Development Tax Increment Financing (TIF) District #1-44 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider approving a specific project -based Contract with Northland Securities, Inc. (NSI) related to creation of Economic Development Tax Increment Financing (TIF) District #1-44 in support of WashburnPOS's 45,000 square foot expansion proposal. The expansion proposal's total price tag is $6,251,000. WashburnPOS is planning to add 44 new FTE jobs to its current workforce of 43 FTE jobs as part of the expansion. WashburnPOS is a technology, point -of -sale systems equipment repair, refurbishing and light assembly firm located at 218 Chelsea Road. Their customers include: Target Corporation, Home Depot, Tractor Supply Company, grocery stores, casinos, hotels, cruise lines and small retail stores. They have been in their current location in Monticello since the 1990s. On Wednesday, February 2, 2022, WashburnPOS submitted a TIF application and also participated in a meeting with MN -DEED staff regarding a potential Job Creation Fund (JCF) Grant award to support the expansion proposal financing. The submittal of the TIF application by WashburnPOS warrants EDA consideration of entering into a contract with NSI to obtain financial planning and analysis services as well as guidance in the required steps in establishing a new TIF District. The attached proposal outlines specific services related to development parcel valuation data, review of the proposed financing structure, the project pro forma and preparation of the critical "but for" findings. It also covers formatting and distribution of various notices, planning documents, completion of a TIF Plan and attendance at two key meetings. It does not include legal documents such as resolutions and development agreements. Ultimately, if a new Economic Development TIF District is not approved by the City Council or the EDA, NSI will only bill for actual work performed based on an hourly rate of $215. NSI will also coordinate with the City's legal counsel as required for the project. Al. STAFF IMPACT: TIF Districts are extremely complicated tax -based financial assistance tools used to support new economic development proposals. There are several legal and critical financial review steps that are required in establishing a new TIF District. Under the proposed contract, NSI will analyze property value and financing data and prepare a TIF Plan specifically tailored to the proposal and the development site. They will also prepare the essential "but -for" findings. In-house staff will support and collaborate with NSI by providing application submittal materials and guidance related to EDA discussions regarding potential TIF assistance for WashburnPOS's proposed facility expansion. EDA: 02/09/22 A2. BUDGET IMPACT: The funds to pay for the proposed NSI contract will come from the $12,500 TIF application fee from WashburnPOS. Additional costs beyond the initial TIF fee will be invoiced to WashburnPOS as per NSI service invoices. Fees incurred for legal documents, contracts, resolutions, etc. related to establishing the TIF District are not included in the NSI services contract. Those costs will be separate and will also be invoiced to WashburnPOS. B. ALTERNATIVE ACTIONS: 1. Motion to approve NSI Financial Planning Agreement for services related to creation of an Economic Development TIF District. 2. Motion to table consideration of the NSI Financial Planning Agreement for services related to creation of an Economic Development TIF District. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The NSI Financial Planning Services Agreement is essential to ensure the EDA stays within the bounds of all required steps and notices when creating a new TIF District. TIF districts have impacts across several taxing jurisdictions (city, school district and county). Therefore, it important that staff have the support of consultants such as NSI to perform specialized TIF Plan analytical work and preparation of specific documents that are required in creating a new TIF District. D. SUPPORTING DATA: a. NSI Financial Planning Services Agreement —TIF District #1-44 b. TIF Review and Approval Calendar —TIF District #1-44 2 FINANCIAL PLANNING AGREEMENT BY AND BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND NORTHLAND SECURITIES, INC. TAX INCREMENT FINANCING (ECONOMIC DEVELOMENT) DISTRICT NO.1-44 This Agreement made and entered into by and between the City of Monticello Economic Development Authority, Minnesota (hereinafter the "EDA") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI"). WITNESSETH WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related to the proposed establishment of a Tax Increment Financing (Economic Development) District No.1-44 (the "TIF District") to provide financial assistance to a private company for the construction of abuilding expansion for manufacturing purposes (the "Project"). WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice on the timing, terms, structure or similar matters related to a specific bond issue. WHEREAS, NSI desires to furnish services to the EDA as hereinafter described. NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI The scope of work will undertake the process and financial planning to establish the TIF District. Legal services to draft or review the plan for the establishment of the TIF District (the "TIF Plan"), resolutions, and agreements are not provided by NSI and are not subject to this agreement. NSI will provide the following services: 1. Collect data for the TIF District and the Project, including: a. Parcel identification numbers for all parcels within the Development District and the TIF District. b. Estimated market value and tax capacity value for all parcels within the TIF District. c. Current property tax rates for all jurisdictions. d. Map showing project location and parcel boundaries. 2. Evaluate and advise the EDA on the type of tax increment financing district and provide guidance on statutory findings. 3. Collect data about the Project, including: a. Type, size, value, and timing of proposed development. b. Activities and estimated costs (project budget) to be paid by the TIF District. 4. Review basis for findings for establishing TIF District, including: a. Statutory criteria for proposed district. Agreement (Economic Development TIF Page 1 b. Developer justification ("but for') for the use of tax increment. c. Review and analyze Developer construction pro forma and operating pro forma for the Project. d. Prepare memorandum for the EDA presenting the findings. S. Review and analyze developer financial information, including project pro forma, and other relevant information provided by the developer. 6. Prepare memorandum for the EDA with the results of the evaluation of the information provided by the developer and the need for financial assistance as requested by the developer. 7. Determine basic understanding of key criteria for the process including: a. Boundaries of Development District and the TIF District. b. Specific development objectives to address in the planning documents beyondthe Project, including decertification of an existing tax increment financing district. 8. Obtain any additional data not collected in item #1, including: a. Building permits issued for parcels in the TIF District over the past 18 months. b. Current comprehensive plan. 9. Set and distribute calendar of meetings and key dates. 10. Assist with preparation of notice of hearing and comply with statutory requirements for mailing and publication. 11. Assist the EDA's attorney with drafting of the development agreement for the Project. 12. Prepare planning documents including modification of the Redevelopment Project, if necessary, and Tax Increment Financing Plan for the TIF District. 13. Distribute draft planning documents with letter of explanation and other supporting information to the county and the school district. 14. Assist with preparation of resolutions authorizing the TIF District and approvingthe TIF Plan. 15. Prepare and distribute resolution for planning commission findings, if necessary (scope does not include NSI attendance at planning commission meeting). 16. Prepare and distribute packet for public hearing including the TIF Plan and approving resolution and interfund loan resolutions (if loan is proposed). 17. Attend and facilitate the EDA meeting to consider approval of the TIF Districtand agreement for the Project. 18. Assist City staff in preparing presentation for the public hearing and City Council meeting to consider approval of the TIF District. 19. Prepare electronic transcript of documents for the establishment of the TIF District. 20. Submit request to the county for certification of the TIF District. 21. File district with the Office of the State Auditor and the State of Minnesota. Agreement (Economic Development TIF Page 2 COMPENSATION The budget for undertaking the tasks in this agreement is an amount not to exceed $9,200. The amount is based on the estimated number of hours required to complete these tasks at an hourly billing rate of $215 per hour plus reimbursable expenses for travel, printing, and mailing. NSI will bill monthly for actual services performed and reimbursable expenses. The EDA may at its discretion authorize NSI to undertake additional tasks, including meeting attendance, beyond the tasks listed above. Additional planning services will be billed monthly at a rate of $215 per hour. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed. ASSIGNED NSI EMPLOYEE The NSI employee responsible for providing services pursuant to this agreement and for the services performed is Tammy Omdal, Managing Director. SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA and NSI and their successors or assigns. DISCLAIMER In performing service under this agreement, NSI is relying on the accuracy of information provided by the developer for the proposed project, and the EDA. Services provided by NSI will be based on current state law of Minnesota. The parties agree that the State of Minnesota property tax system and other laws may change and may affect the accuracy and validity of services provided by NSI. NSI will perform its work using the best available information. The EDA recognizes and accepts that future property values, tax levies and tax rates may vary from the assumptions used byNSI and such changes may affect the work product produced and provided by NSI. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI. In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly statement of services already provided. All billable hours by NSI shall be billed at the stated hourly rates should early termination occur. Agreement (Economic Development TIF Page 3 Dated this day of 2022. Northland Securities, Inc. By:. Tammy Omdal Managing Director, Public Finance City of Monticello Economic Development Authority Title Agreement (Economic Development TIF Page 4 S M T W T F S 1 2 3 4 5 6 7 8 ■ 10 11 12 13 14 15 16 17 18 19 20 21 22 A 24 25 26 27 EM S M T W T F S 1 2 3 4 5 6 7 8 i 10 11 12 13 - 15 16 17 18 19 20 21 22 - 24 25 26 27 - 29 30 31 S M T W T F S 1 2 3 4 6 7 8 9 10 12 14 15 16 17 18 19 20 21 22 23 24 - 26 - 28 29 30 S M T W T F S 1 2 3 4 5 6 7 8 - 10F1 12 13 14 15 16 17 18 19 20 21 22 M 24 _ 25 26 27 28 29 30 31 City of Monticello Central Monticello Redevelopment Project No. 1 Establishment of Tax Increment Financing District No. TIF 1-44 Economic Development TIF District Washburn POS Expansion Public Hearing on April 11 February 9 EDA request City Council call for hearing February 14 City Council calls for public hearing March 11 Last day for notice and TIF plan and fiscal implications to County and School District March 28 Last day to submit notice to newspaper March 31 Publication date for hearing notice April 5 Planning Commission review April 11 Public hearing and establishment of TIF District April 13 EDA approval of TIF May 2 Request certification by County May 2 Submit plan to State June 30 Certification of TIF District by this Date Notes: 1 1 Denotes City Council meeting dates 2 Denotes EDA meeting dates 4 Denotes Planning Commission meeting date 5 City publication dates need to be confirmed and added to calendar TIF for Economic Development NORTHLAND �,,r- PUBLIC FINANCE 1/25/2022 EDA Agenda: 02/09/22 8. Economic Development Director's Report (JT) A. The marketing committee will be planning a meeting in the next week. AE2S Communications will be reaching out to the committee members regarding the time. B. Redevelopment Grant Update: A $517,500 Grant application was submitted to MN -DEED on 2-1-22. Staff have responded to a couple of follow up questions from the DEED review team. If the grant is awarded to the EDA, it will help with demolition and hazardous materials mitigation in the existing structures. C. Prospect List Update: Please see the updated Prospect List as Exhibit A. Date of Contact L/12/2016 L/17/2016 /22/2017 )/17/2017 /22/2018 /30/2018 8/10/2018 11/29/2018 12/14/2018 3/28/2019 5/9/2019 8/16/2019 9/19/2019 1/20/2020 PROSPECT LIST Company Name Business Category Project Description MN DEED Prospect Metal Mfg. Exist Facility + Equip Project Armstrong Precision Machining New Facility Constr. + Equip UMC Project #6580 Metal Mfg. New Facility Constr. Project Ted Equipment Mfg. New Equipment Karlsburger Foods Food Products Mf Facilty Expansion Project Saturn Plastic Products Mfg. New Construction 02/04/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55 - $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold N/A 45 ? $650,000 Concept Stage 20,000 sq. ft. +/- 42 10 to $4,500,000 20 Am 5,000 +/- sq. ft. 4 +/- $830,000 Active Search Project Jupiter Metal Mfg. New Construction 5,000 sq. ft. +/- 3 $800,000 Active Search Project Blitzen Precision Machining Exist Bldg or New Const. 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stage Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20 +/- $1,400,000 Active Search Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active Search Project Kata Service New Construction 22,000 to 35,000 sq. a 0 25 $7,900,000 Concept Stage Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active Search 3/31/2020 8/27/2020 1.2/23/2020 11/5/2020 2/16/2021 2/18/2021 2/18/2021 3/19/2021 4/23/2021 6/3/2021 Project GiaSaurus Medical Prod. Mfg. New Construction 175,000 sq. ft. 0 75 $50,000,000 Active Search Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 20 to $3,500,000 Almost Done 30 Project TO Industrial Existing or New Construction 10,000 to 15,000 sq. 0 5 to 7 $800,000 Concept Stage ft. Project Flower Office Existing 7,000-8,000 sq. ft. 0 12 $750,000 Concept Stage Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 21 $12,000,000 Concept Stage stri Project Shay Lounge -Restaurant Existing Bldg. 2,200 0 4 $150,000 Concept Stage Project Counsel Office -Service New Construction 5,600 sq. ft. A 24 3 $1,120,000 Building Completed Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 500 $125,000,000 Active Search on Project Emma Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search Project FCW Service New Construction w Redev 4,000 sq. ft. 0 9 $4,619,000 Concept Sta 6/16/2021 Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 6/30/2021 Project Ecosphere Industrial Tech Mfg. New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search 7/29/2021 Project BA710 Lt Assem-Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search 8/12/2021 Project Integrity Precision Mfg. New Construction 100,000 sq. ft. 0 60 $14,800,000 Cancelled 10/28/2021 Project Stallion Technology Service New Construction 42,000 sq. ft. 40 $3,600,000 Active Search Contacts: M =02 YTD = 02