EDA Agenda 04-24-2007
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ANNUAL MEETING AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, April 24, 2007 - 4:00 p.m.
City Hall - Academy Room
MEMBERS:
Chair Bill Demeules, Vice Chair Barb Schwientek, Council members Wayne Mayer and
Tom Perrault, Ron Hoglund, and Darrin Lahr.
STAFF:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Angela
Schumann.
Call to Order.
RollCall.
Consideration to approve the September 19, 2006 EDA minutes.
Consideration of adding or removing agenda items.
Bills and communications.
Executive Director's Report.
Committee Reports.
Unfmished business:
A. Update on GMEF Loan No. 025 (Karlsburger).
9. New Business:
A. Consideration to elect 2007 EDA officers.
B. Consideration to review and accept the year-end EDA Financial Statements, Activity
Report, and proposed 2007 Budget.
C. Consideration to review the summary year-end balances of other sources of revenue.
D. Consideration to review for amendment the Business Subsidy Criteria and Bylaws of the
EDA.
E. Other Business.
10. Adjournment.
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, September 19, 2006 - 4:00 PM
City Hall- Academy Room
Members Present:
Chairman Bill Demeules, Ron Hoglund, Susie Wojchouski,
Tom Perrault
Members Absent:
Darrin Lahr, Barb Schwientek, Wayne Mayer
Staff Present:
Ollie Koropchak, Angela Schumann
1. Call to Order.
Chairman Demeules called the meeting to order at 4:00, noting a quorum of the
EDA.
2. Roll Call.
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Chairman Demeules noted the absence of Commissioners Lahr, Mayer and
Schwientek. Chairman Demeules also noted the presence of guest Mike Maher of
Karlsburger Foods.
3. Consideration to approve the November 29th, 2005 and September 5th, 2006 EDA
minutes.
A correction to amend the minutes to be reflected as the EDA minutes rather than
HRA minutes was requested for the November 29th minutes.
MOTION BY COMMISSIONER HOGLUND TO APPROVE THE MINUTES
OF NOVEMBER 29t\ 2005 AS AMENDED.
MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION
CARRIED, 4-0.
MOTION BY COMMISSIONER WOJCHOUSKI TO APPROVE THE
MINUTES OF SEPTEMBER 5th, 2006.
MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION
CARRIED, 4-0.
4. Bills and Communications.
NONE.
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EDA Minutes - 09/19/07
. 5. Executive Director's Report.
NONE.
6. Committee Reports.
NONE.
7. Unfinished Business:
a. Update on GMEF Loan No. 019 (GWJ, LLC.)
Koropchak reported that she had called the owner of the loan. He had
received letter and had indicated that he is in process of refinancing his
business loan, which affect his payment. As such, he indicated to Koropchak
that the balloon payment will be late.
8. New Business
a. Public Hearing - Consideration to approve the Business Subsidy
Agreement and authorize entering into the Loan Agreement between
Karlsburger Foods, Inc. and the Monticello EDA.
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Chairman Demeules opened the public hearing.
Koropchak noted that a copy of the loan agreement had been included, as well
as the publication notice for the public hearing. Koropchak stated that she had
included the wages information and Wells Fargo's information on the line of
credit. Koropchak asked if the EDA is satisfied with the lines of credit, which
were not specified in exact amounts.
Maher inquired if the loan could be amortized over a longer period, such as 15
years, with a balloon in 5 years. Koropchak commented that the EDA
guidelines stated that machinery and equipment loans are to be amortized over
a 5-7 year period, but that the EDA had done other loans amortized over
longer periods. Hoglund noted that if the EDA considered a longer period, it
could still balloon in five years. Koropchak stated that she would like a
motion to amend the term approval. If approved, the attorney will amend the
agreement and it will go forward to Council. Demeules confirmed that no
public hearing was needed to amend the term. Koropchak stated that the
public hearing is needed on the business subsidy agreement only.
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Maher explained that the loan payment is lower with a longer amortized rate.
Perrault confirmed that the agreement language would then be changed to
read that it will be amortized over 15 years with balloon in 60 months.
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EDA Minutes - 09/19/07
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Perrault inquired about the interest rate. Koropchak stated that the interest
rate is based on date ofloan approval, which was September 5th. Interest will
begin to accrue at time of closing.
Hearing no public comment, Chairman Demeules closed the public hearing.
MOTION BY COMMISSIONER HOGLUND TO APPROVE AN
AMENDMENT TO THE LOAN AGREEMENT AUTHORIZING AN
AMORTIZATION OVER 15 YEARS WITH A BALLOON PAYMENT
DUE IN 60 MONTHS, AND TO APPROVE THE BUSINESS SUBSIDY
AGREEMENT AND AUTHORIZE ENTERING INTO THE LOAN
AGREEMENT BETWEEN KARLS BURGER FOODS, INC. AND THE
MONTICELLO EDA.
MOTION SECONDED BY COMMISSIONER WOJCHOUSKI.
Perrault asked if Karlsburger could move the equipment to another location or
change it out. Koropchak stated that there would be a UCC filing and the
guidelines state that the equipment is to be located in the Monticello facility.
Koropchak also noted the amount of the security backing the loan.
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MOTION CARRIED, 4-0.
Demeules reported that upon further review of the agreement, it does state that
Karlsburger needs to use the specified equipment on site for five years from
date of benefit.
9. Adjournment.
MOTION BY COMMISSIONER WOJCHOUSKI TO ADJOURN.
MOTION SECONDED BY COMMISSIONER DEMEULES. MOTION
CARRIED, 4-0.
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EDA Agenda - 04/24/07
5.
Bills and communications.
Attached is an invoice from the EDA Attorney for costs associated with the loan to Karlsburger
Food, Inc. Karlsburger paid the $200 application fee and reimbursed the EDA for the legal
fees at closing, $1,144.00. Since the closing, another invoice of$264.00 was received and an
EDA legal cost of $48.00 was billed to the TIF District. Total additional EDA legal fees, $312.
I had called Kennedy & Graven for an account of all legal fees prior to closing.
You will note on the year-end statements, the expense of $201.08. That was for the
Monticello Times. Because the Business Subsidy Law states: If the business subsidy is greater
than $100,000, the governing body must hold a public hearing. The Times invoice was for the
public hearing notice. Our Business Subsidy Criteria states the applicant is responsible for the
EDA legal fees. In the future, you may wish to remember the public hearing notice expense
when determining the amount ofthe EDA application fee.
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Au9~st 31, 2006
812112006
812212006
812812006
812812006
MNI
MNI
Page: 2
Kennedy & Graven, Chartered
200 south S',xth Street
suite 470
Mlnr.eaoo1is. MN 55402
NKE
table of contents and closing book.
Follow-uP with N England and S Bubul regarding
subordination agreement for Karlsburger.
Phone call to Ollie K to request that HRA approve
subordination agreement on its consent agenda at next
HRA meeting; question from Ollie on right of first refusal
concept.
Look up statute for publication requirement; phone call
with 0 Koropchak; phone call with M Ingram', email 0
Koropchak.
Call from Ollie regar.sJjoQ FDA loan to Karlsburger - will
constitute business subsidy, but iOA-naS not decided on
terms yet.
030
020
020
050
MNI
Total Services:
For All Disbursements As FollOws:
812312006
Photocopies
postage
American Office Products - Tabs
Total Disbursements:
Total Services and Disbursements: $
3200
3200
55.00
,~--1":'~::=:::-\
(4800 /
~IL'
$
1,781.50
$
4760
126
520
54.06
1,835.56
."'......_,.,_",..."':"'f_'i')~~;y_,'l.,_.,;;~')!:~\~.\'?{.,,:~:,I':'.':~!i'_~,,!';:;_'{q'::,~;n:c~;;;L::::?))T"~;:t,;''!it,m.S
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Monticello EDA
Ollie Koropchak
505 Walnut Street
Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
TaxlD No. 41-1225694
March 21, 2007
Throuah Februarv 28. 2007
MN325-00019 GMEF Loan T. Karlsburger
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Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no part of it has been pa.
264.00
264.00
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Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
March 21, 2007
Invoice # 76187
Monticello EDA
Ollie Koropchak
505 Walnut Street
Suite 1
Monticello, MN 55362
MN325-00019
GMEF Loan T. Karlsburger
Through February 28, 2007
For All Legal Services As Follows:
1/16/2007 MNi Revise loan agreement to refine interest and principal
payment provisions as per request by Ollie K.
Hours
0.70
2/16/2007
MNi
Phone conversation with Ollie at City regarding closing on 0.30
Karlsburger loan.
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MNI Review Karlsburger loan agreement; phone conversation
with Ollie at City regarding UCC filing.
Total Services:
2/21/2007
0.60
$
Total Services and Disbursements:$
~o\\ 0
00\
\..--\ Iv 0 ~ 0
~(), Q- 'v ",d-
')- '2 \.
G~
o~
~
"-...-\~
r
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Amount
115.50
49.50
99.00
264.00
264.00
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EDA Agenda - 04/24/07
6.
Executive Director's Renort:
a) Merger of HRA and EDA - I believe some of you may have been contacted by the
City Administrator for input about the potential to merge the two authorities. This was
the reason the EDA did not advertise and the Council did not appoint an EDA
commissioner to fill the vacancy created by Wojchouski. The Council appoints
commissioners at the first Council meeting each January. The Council will be asked to
authorize the merger and authorize hiring Kennedy & Graven to guide the process and
prepare the necessary documents. This is tentatively scheduled for the Council meeting
of April 23, 2007. If the Council wishes to merge the two authorities, the question then
becomes which authority prevails. The make-up of the commissioners and the
numbers of commissioners will be designated in the new Bylaws since there are options
within the Statutes. I have talked to Attorney Bubul on the process and can inform you
at the EDA meeting if interested.
b) Feasibility Study - The Marketing Subcommittee partnered with St. Cloud State
University (SCSU) and the Small Business Development Center to complete a
feasibility study to identify the current assets and shortcomings of Monticello as a
potential location for a life science industrial park. The committee met with the SCSU
students in January to define the context of the study. On Monday, April 30, some of
the committee members and the Mayor will hear the results based on the research
completed by the students. Kleinwachter, Barger, Tomann, Dahl-Fleming, Herbst, and
myself plan to attend.
c) Washburn Computer Group - I need to contact this company who purchased the
Clow Stamping building to set up a tour.
d) Walker In-Store - A new TIP District is being created for this company. The
company plans to purchase a city-owned site along Dalton Court and construct a
10,240 sq fl facility. The Albertville company will employ II people at an average
wage-level of $18.81 per hour without benefits. One item within the Purchase and
Redevelopment Contract yet to be resolved is conveyance of the property via a quick
claim deed or warranty deed.
e) Annual Business Subsidy Reports - The annual reports due to the State of
Minnesota Department of Employment and Economic Development were due April I.
As you recall within the Business Subsidy Agreement, a company agrees to create a
certain number of job and wage-level goals commencing from the benefit date. Should
they not comply, remedies are also outlined in the agreement. Monticello has a rich
history of companies meeting their goals.
1) Manufacturinglindustrialleads have been slow - good time to work on economic
development goals.
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EDA Agenda - 04/24/07
g)
Others - Council commissioners Mayer and Perrault may wish to update the EDA
commissioners on the recent Annexation Agreement, Stabilization Agreement, Fiber
Optics, YMCA status, and Comp Plan update.
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EDA Agenda - 04/24/07
8.
Unfinished business:
A. UDdate on GMEF Loan No. 025 (Karlsburl!:erl.
Karlsburger Foods moved into their new Monticello facility sometime mid-March. The building
department issued an occupancy permit on February 28 and the HRA approved their
Certificate of Completion on April 11 noting the need to complete the landscaping and
irrigation.
GMEF Loan No. 025 closed and the dollars were disbursed on February 28,2007. Both the
application and reimbursement ofthe EDA legal fees were paid by Karlsburger. The first
principal and interest payment on the loan begins April 2007.
I visited the facility a couple oftimes prior to the loan closing. Arrangements with Mike Maher
are being made for a tour of the facility. I believe the date will be Thursday, May 10, 3 :30 p.m.
The EDA commissioners will receive an invite.
Attached is a list of the machinery and equipment financed by the EDA. The company
provided evidence of purchase and payment prior to the loan closing. The EDA Attorney has
been requested to file the DCC.
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Karlsburger Foods
Machinery & Equipment List
2/20/07
GMEF LOAN NO. 025
One (1) Model HPS-3672 Marion Batch Mixer, Serial No. 07011
One (1) Demo Bendl Model B35/42E-180D Vary Narrow Aisle
Articulating Battery Powered Forklift, Serial No. 02387
One (1) Walk-in Freezer, Carroll Coolers, Serial No. 22528
One (1) Walk-In Cooler, Carroll Coolers, Serial No. 22529
One (1) National Gas Burner, Model 946L and Serial No. 155358
One (1) K.E.W. Pressure washer system with boiler,
Cleveland Range Inc., Model No. KDL-I00, Serial No. 705426
TOTAL
$ 61,097.00
$ 54,400.00
$ 61,732.00
$ 9,585.00
$ 14,164.50
$200,978.50
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. EDA AGENDA - 04/24/07
9A. Consideration to Elect 2007 EDA Officers.
A. Reference and Backqround.
In order to comply with EDA Ordinance Amendment No. 172, Section
2-3-2: The Authority shall annually elect a president, vice
president, treasurer, assistant treasurer, and secretary. The
current list of officers are:
President
Vice President
Treasurer
Assistant Treasurer
Secretary
Bill Demeules
Barb Schwientek
Rick Wolfsteller
Ron Hoglund
Ollie Koropchak
Nominations will be made at the meeting; therefore, any EDA member
unable to attend the meeting and doesn't wish to be re-elected or
nominated, please contact me.
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NO ACTION REQUIRED, FOR INFORMATION PURPOSES ONLY
In order to comply with EDA Ordinance Amendment No. 172, Section
2-3-1: Creation: (Cl Thereafter the initial appointment, all
commissioners shall be appointed for six-year terms, except that
any person appointed to fill a vacancy occurring prior to the
expiration of the term which his/her predecessor has been
appointed shall be appointed only for the remainder of such term.
2007 EDA membership and 6-year term:
Ron Hoglund
Vacant
Wayne Mayer, Council
Darrin Lahr
Barb Schwientek
Bill Demeu1es
Tom Perrault, Council
12-2007
12-2008
12-2008
12-2009
12-2010
12-2011
12-2008
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Page 1
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B.
EDA AGENDA - 04/24/07
Alternative Action:
1. Motion to nominate and elect the following
President,........ Vice President, .... ..... Treasurer,
......... Assistant Treasurer, and ............ Secretary as
2007 EDA officers.
2. A motion to table election of 2007 EDA officers.
C. Recommendation:
No recommendation is given.
D. Supportina Data:
None.
Page 2
. EDA Agenda - 04/24/07
9B. Consideration to review and acceDt the 2006 Year-End EDA Financial Statements.
Activitv ReDort. and 2007 ProDosed Budl!et.
A. Reference and Backl!round:
In order to comply with EDA Ordinance Amendment No. 172, Section 2-3-6: The Authority
shall prepare an annual budget projecting anticipated expenses and sources ofrevenue. And B:
The Authority shall prepare an annual report describing its activities and providing an accurate
statement of its fmancial condition. Said report shall be submitted to the City Council each
year.
Enclosed are the year-end statements, proposed budget, and activity report. I'm happy to
report after the efforts of the EDA Treasurer Wolfsteller, Senior Accountant Mastey, and
myself, the EDA Financial Statements and the City Audit Reports are consistent.
In year 2006, the balloon payments for GMEF Loan No. 014 (T.J. Martin) and No. 019
(EDMA) were made.
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The Executive Director with review the statements with the EDA for questions and comments
prior to consideration of the following alternative action.
B. Alternative Action:
I. A motion to accept the 2006 year-end financial statement and activity report for
submission to the City Council on May 14 or 29, 2007.
2. A motion to not accept the 2006 year-end financial statements and report.
3. A motion to table any action.
C. Recommendation:
If the EDA commissioners make a finding that the statements and report are acceptable,
recommendation is alternative no. 1. All GMEF loan paybacks are current.
D. SUDDortinl! Data:
Copies of financial statements and report.
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MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND
REVISED STATEMENT
STATEMENT OF REVENUES AND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2006
REVENUES:
Interest Income - Notes $ 20,325.12
Investment Interest Income $ 56,689.50
Loan Fees Revenue $
Reimbursable Fees Revenue $
TOTAL REVENUES: $ 77,014.62
EXPENDITURES:
Legal Fees $ 1,144.00
Professional Fees $
Service Fees $
Mlsc I Reimbursable Fees Revenue $ 201.08
TOTAL EXPENDITURES: $ 1,345.08
EXCESS OF REVENUES OVER EXPENDITURES: $ 75,669.54
. FUND BALANCE - Beginning of Year: $ 1,459,675.53
FUND BALANCE. End of Year: $ 1,535,345.07
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MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND
REVISED STATEMENT
BALANCE SHEET
DECEMBER 31, 2006
ASSETS
Cash & Investments
$ 815,355.45
Notes Receivable - T J Martin
Notes Receivable - GWJ, LLC
Notes Receivable - UMC
Notes Receivable - Tapper's 3
Notes Receivable - WSI
Notes Receivable - Tapper's 4
$
$
$ 169,668.08
$ 36,563.59
$ 321,386.16
$ 192,371.79
TOTAL ASSETS:
FUND EQUITY
Fund Balance
Reserved for Economic Development
Participation Loans
$ 1,535,345.07
TOTAL LIABILITIES AND FUND EQUITY:
$ 1,535,345.07
$ 1,535,345.07
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
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2007 CASH FLOW PROJECTION
BEGINNING CASH BALANCE, January 2007
RECEIPTS
Appropriations, Expected -
MIF Fed or State
Notes Amortization Payments -
Tapper Inc.
Muller Theater
SMM, Inc.
Aroplax Corp.
Custom Canopy, Inc.
Standard Iron
Vector Tool
Tapper's II
SELUEMED
T.J. Martin
Mainline Distrib.
Aroplax Corp. II
TCDC
IRTI
EDMA
. VisiCom
UMC ($1,084.33 Mo.) 3-08
Tapper 111($524.76 Mo.) 5-08
WSI ($1,483.49 Mo) 6-09
Tapper Holdings ($1,417 Mo.) 7-10
Karlsburger Foodsl$I,714.83 Mo.)
Interest Income - Investment lest.)
Loan Fees
Loan Fees Other
Miscellaneous
TOTAL RECEIPTS
TOTAL BEGINNING BALANCE AND RECEIPTS
EXPENDITURES
GMEF Loans -
Karlsburger (2-07)
Other
Re-payment to Liquor Fund 2006
(Budget year 2007)
Liquor Fund Balance
.gal Fees
.scellaneous
TOTAL EXPENDITURES
EXPECTED CASH BALANCE, December 2007
$
-0-
$
$
$
$
3-12 $
$
$
$
$
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
13,011.96
6,297.12
17,801.88
17,004.00
15,433.65
50,000.00
200.00
3,000.00
-0-
$ 200,000.00
$ 100,000.00
$ 80,891.00
$ 100,000.00
$ 3,000.00
$ 1.000.00
$ 815,355.45
$ 122.748.61
$ 938,104.06
$ 484.891.00
$ 453,213.06
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2006
ECONOMIC DEVELOPMENT AUTHORITY ACTIVITY REPORT
MEETING DATE
SUBJECTS
April 25, 2006
Motion to approve EDA Officers for 2006:
President Bill Demeules
Vice President Barb Schwientek
Treasurer Rick Wolfsteller
Assistant Treasurer Ron Hoglund
Secretary Ollie Koropchak
Motion to approve transferring reserve Liquor Funds in an
amount of$80,891 for bonded indebtedness.
Motion to accept the draft copy ofthe EDA 2005 Year-End
Financial Statements with the adjustment for the Liquor Fund
transfer and Activity Report for submission to the City Council
in May.
Motion to accept the Business Subsidy Criteria and Bylaws of
the EDA as written (no amendments.)
September 5, 2006
Reviewed the revised EDA 2005 Financial Statements.
Reviewed the preliminary GMEF Loan Application from
Karlsburger Foods, Inc.
Motion to approve GMEF Loan No. 025 for Karlsburger
Foods, Inc. in the amount of $200,000, with terms of 7 years,
interest rate of 6.25% and a loan fee of $200. Collateral,
guarantees and other condition requirements to be determined
and prepared by the EDA Attorney. Approval is subject to
public hearing on the Business Subsidy, lender line of credit,
and council ratification of EDA action.
A motion to call for a public hearing on September 19, 2006 at
4:00 p.m. for the proposed business subsidy to Karlsburger
Foods, Inc
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. 2006 EDA Activity Report continued
September 19, 2006
Public Hearing on Business Subsidy for Karlsburger Foods,
Inc.
A motion to approve the Business Subsidy Agreement and to
authorize entering into the Loan Agreement between
Karlsburger Foods, Inc. and the Monticello EDA with the
approved amendment: to the loan terms: Fifteen year
amortization with balloon payment in year five.
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. EDA Agenda - 04/24/07
9C. Consideration to review summary vear-end balances of other sources of revenue.
A. Reference and Back2round:
In addition to the EDA cash and investments of$815,355.45, the EDA has two other sources
of revenue for loan disbursements. The payback (P&I) received from the Twin City Die
Casting (Federal) Loan is $392,483.95 with the balloon payment due in June 2007. The
payback received from the UMC (State) Loan is $61,061.26 with balloon payment due in
March 2008. The current balance of these two other sources of revenue including interest
income - investment minor expenditures is $460,997.24. Restrictions do apply to the TCDC
Loan. See Exhibit A.
All GMEF loan paybacks were current year-end 2006.
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Exhibit B shows the revenues the EDA received from the City Liquor Store Fund and the
approved paybacks and grants. As noted, this includes the approved 2006 payback which is
in the 2007 City Budget and DMRF Grants. The balance of the Liquor Store Fund that the
EDA may wish to consider for payback is $100,000. Given the cash and investment
balance of the EDA and the interest to merge the HRA and EDA; the EDA Treasurer
and Executive Director suggest the commissioners consider approving payback of the
remaining $100,000 for budget year 2008. This would simplify matters and make the
EDA funds whole.
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MINNESOTA INVESTMENT FUND
FINANCIAL REPORT
December 31,2006
GRANT TOTALS - TWIN CITIES DIE CAST (federal)
Payback began in July, 2000 for 7 years ending in June, 2007.
Annual principal and interest payback total is $61,176.72.
Principal
Interest
TOTAL
EXPENDED:
ORIGINAL
$500,000.00
$95,747.11
$595,747.11
$468,266.60
$20,859.00
$10,874.40
$500,000.00
PAID
$300,504.12
$91,979.83
$392,483.95
6/2/00
8/9/00
8/15/00
GRANT TOTALS - UMCrrOMANN (statel
Payback began in October 2003 for 5 years ending in March 2008.
Annual principal payback is $19,280.64.
City keeps first $100,000 plus interest.
Principal
Interest
TOTAL
EXPENDED:
ORIGINAL
$290,000.00
$33,439.16
$323,439.16
$92,138.56
$109,377.84
$88,483.60
$290,000.00
PAID
$36,538.97
$24,522.29
$61,061.26
4/17/03
6/26/03
9/4/03
e" \v,' ~ ,:\
REMAINING
$199,495.88
$3,767.28
$203,263.16
REMAINING
$253,461.03
$8,916.87
$262,377.90
-,----------------------------------------------------------~
REVENUES
Principal Payback - TCDC (fed)
Interest Payback -TCDC (fed)
Principal Payback - UMC (st)
Interest Payback - UMC (st)
Interest Income - Investment:
2000
2001
2002
2003
2004
2005
2006
TOTAL REVENUES
EXPENDITURES
Prof Svc fees - TCDC (fed)
Legal fees - TCDC (fed)
Transfer to GMEF - 2004 WSI 023 (st)
TOTAL EXPENDITURES
FUND BALANCE FOR MN INV FUND
EDA annual reports 2006.xls: 4/16/2007
$300,504.12
$91,979.83
$36,538.97
$24,522.29
$119.19
$3,071.00
$5,356.00
$7,678.00
$9,157.00
$0.00
$34,659.48
$478,926.40
$3,306.55
$824.75
$13,797.86
$17,929.16
$460,997.24
(4.
.
.
.
EDA - LINE OF CREDIT FROM CITY
SOURCE - CITY LIQUOR STORE FUND
Report - April 2007
Revenues from City Liquor Store Fund to EDA:
1991 Tapper GMEF Loan
1992 Suburban GMEF Loan
1992 Aroplax GMEF Loan
1994 Standard Iron GMEF Loan
1995 Victor Tool GMEF Loan
1996 Standard Iron GMEF Loan
TOTAL REVENUES
Approved Paybacks and Grant::
2001 to city debt service fund
2003 to city debt service fund
2006 to city debt service fund
DMRF Grants
TOTAL PAYBACKS AND GRANTS
BALANCE, APRIL 2007
$ 73,000.00
$ 50,000.00
$ 65,000.00
$75,000.00
$ 50,000.00
$ 70,000.00
$ 77,000.00
$ 70,000.00
$ 80,891.00
$ 55,109.00
El' V'JJ~h~ ~.
$383,000.00
$283,000.00
$100,000.00
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.
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
It LOAN STATUS
December 31,2006
Economic Development Authority (EDA) was created in 1989.
It
APPROVED LOANS
Tapper/Genereux (1990)
Muller/Monti Theatre (1990)
Barger/Suburban #004 (1992)
Schoen/Aroplax #005 (1992)
Birkeland/Custom Canopy #006 (1993)
Demeules/Standard Iron #007 (1993)
Blue Chip DevNector Tool #010 (1995)
Tapper's #011 (1996)
Standard Iron/Seluemed #013 (1996)
T J Martin #014 (1998)
Mainline Distr #015 (1999)
Aroplax#016 (1999)
TC Die Cast #017 (2000)
Integrated Recycling #018 (2001)
EDMA #019 (2001)
Tapper's #021 (2002)
Tomann/UMC #022 (2002)
WSllndustries #023 (2004)
Tappers Holdings #024 (2005)
TOTAL APPROVED LOANS
$88,000.00
$50,000.00
$50,000.00
$85,000.00
$42,500.00
$75,000.00
$50,000.00
$100,000.00
$70,000.00
$87,500.00
$100,000.00
$100,000.00
$100,000.00
$72,500.00
$30,000.00
$55,000.00
$200,000.00
$350,000.00
$200,000.00
$1,905,500.00
APPROVEDPAYBACKS
2001 to Hwy Liquor
2003 to Hwy Liquor
TOTAL APPROVED PAYBACKS
($77,000.00)
($70,000.00)
($147,000.00)
APPROVED GRANTS
DMRF Liquor Fund Grants
($55,109.34)
($55,109.34)
TOTAL APPROVED LOANS & PAYBACKS
$1,703,390.66
It
EDA annual reports 2006.xls: 4/18/2007
1
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
. LOAN STATUS
December 31, 2006
LOAN DISBURSEMENTS (transferred to GMEF)
Liquor Fund:
1991 to Tapper $73,000.00
1992 to Suburban $50,000.00
1992 to Aroplax $65,000.00
1994 to Standard Iron $75,000.00
1995 to Vector Tool $50,000.00
1996 to Standard Iron $70,000.00
2001 payback from EDA ($77,000.00)
2003 payback from EDA ($70,000.00)
DMRF Liquor Fund Grant ($55,109.34)
Total Liquor Fund $180,890.66
UDAG Fund:
1991 to Tapper
1991 to Muller
1992 to Aroplax
1993 to Custom Canopy
1996 to Tapper's
1999 to Aroplax (016)
1999 (2000) to Mainline
2000 to ;rC Die Cast
Total UDAG Fund
.
$15,000.00
$50,000.00
$20,000.00
$42,500.00
$100,000.00
$100,000.00
$39,546.38
$56,781.04
$423,827.42
UDAG (recycled funds):
2001 to Integrated Recycling
2001 to EDMA
2003 to UMC 022
2004 to WSI 023
Total Recycled UDAG
$72,500.00
$30,000.00
$125,000.00
$260,000.00
$487,500.00
SCERG Fund:
1998 to T J Martin 014
1999 to Mainline 015
2000 to TC Die Cast 017
2004 to WSI 023
Total SCERG Fund
$87,500.00
$60,453.62
$23,198.02
$16,202.14
$187,353.78
.
SCERG (recycled funds):
2004 to WSI 023
Total Recycled SCERG
$60,000.00
$60,000.00
MN INV Fund:
2004 to WSI 023 (recycled state fundS)
TS,lrll MIF
EI A-annual reports 2006.xls: 4/18/2007
$13,797.86
$13,797.86
2
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
. LOAN STATUS
December 31, 2006
.
.
GMEF (recycled funds):
2000 to TC Die Cast 017
2003 to UMC 022
2003 to Tapper 021
2005 to Tapper Holdings 024
Total GMEF Fund
TOTAL LOAN DISBURSEMENTS
EDA annual reports 2006.xls: 4/18/2007
$20,020.94
$75,000.00
$55,000.00
$200,000.00
$350,020.94
$1,703,390.66
3
. EDA Agenda - 04/24/07
9D. Consideration to review for amendment the Business Subsidv Criteria and Bvlaws of
the EDA.
A. Reference and back2round:
EDA Business Subsidv Criteria
This is a housekeeping item. According to the Business Subsidy Criteria: "At a minimum, the
EDA shall review the Fund Guidelines on an annual basis. No changes to the GMEF guidelines
shall be instituted without prior approval ofthe City Council." "Amendments to these criteria
are subject to public hearing requirements pursuant to Minnesota Statues, Section 116J.993
through 116J.994. "
The criteria is attached for your review.
EDA Bvlaws
.
This a housekeeping item. According to the Bylaws: "The Bylaws of the Authority shall be
amended by a majority vote of the Authority membership at a regular or special meeting. The
amendment must be in written form."
B. Alternative Action:
EDA Business Subsidv Criteria
I. A motion to recommend amending the Business Subsidy Criteria as follows
............................., requesting approval from City Council, and calling for a public
hearing.
2. A motion to accept the Business Subsidy Criteria of the EDA as written.
EDA Bvlaws
I. A motion to recommend amending the Bylaws as follows ............... to be drafted in
written form.
2. A motion to accept the Bylaws of the EDA as written.
.
I
.
EDA Agenda - 04/24/07
c.
Recommendation:
Recommendation is alternative no. 2 for both the Criteria and Bylaws.
D. SUDt>ortin~ Data:
Copy of Business Subsidy Criteria and Bylaws of the EDA.
.
.
2
~-, .I
.( ,
~
MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 31 st day of August, 1999
Public Hearing and Adoption of Amendments the 8th day of November, 2000
Public Hearing and Adoption of Amendments the 24th day of April, 2001
Public Hearing and Adoption of Amendments the 13th day of December, 2005
1. PURPOSE
1:01 The purpose of this document is to establish the Economic Development Authority's
criteria for granting of business subsidies, as defined in Minnesota Statutes 116J.993,
Subdivision 3, for private development. This criteria shall be used as a guide in processing
and reviewing applications requesting business subsidies.
.
1 :02 The criteria set forth in this document are guidelines only. The Economic Development
Authority reserves the right in its discretion to approve business subsidies that vary from
the criteria stated herein if thc Economic Development Authority determines that the
subsidy nevertheless serves a public purpose. The Authority will file evidence of any deviation
from these criteria with the Department of Trade and Economic Development in accordance
with Minnesota Statues, Section] 16J.994, Subd. Z.
] :03 The Economic Development Authority may amend the business subsidy criteria at any
time. Amendments to these criteria are subject to public hearing requirements pursuant to
Minnesota Statutes, Sections 116J.993 through 116J.994.
2. STATUTORY LlMITATIONS
2:01 In accordance with the business Subsidy Criteria, Business Subsidy requests must comply
with applicable State Statutes. The Economic Development Authority ability to grant business
subsidies is governed by the limitations established in Minnesota Statutes
116J.993 through 116J.994.
3. PUBLIC POLICY REQUIREMENT
.
3:01 All business subsidies must meet a pLlblic purpose in addition to increasing the tax base. Job
retention may only be used as a public purpose in cases where job loss is imminent and
demonstrable.
Monticello CIty Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 . (763) 295-2711 . ['ax: (763) 295-4404
Otlice of Public \\lorks, 909 Golf Course Rd., Monticello, ~ 55362. (763) 295-3170. Fax: (763) 271-3272
.
4. BUSINESS SUBSIDY APPROVAL CRITERIA
4:01 All new projects approved by the Economic Development Authority should meet the
following minimum approval criteria. However, it should not be presumed that a project
meeting these criteria will automatically be approved. Meeting these criteria creates no
contractual right on the part of any potential developer or the Economic Development
Authority.
4:02 The project must be in accord with the Comprehensive Plan and Zoning Ordinance, or
required changes to the plan and ordinances must be under active consideration by the
City at the time of approval.
4:03 Prior to approval of a business subsidies financing plan and when deemed appropriate by
the Economic Development Authority, the developer shall provide any required market
and financial feasibility studies, appraisals, soil boring information provided to private
lenders for the project, and other information or data as requested.
.4:04
A recipient of a business subsidy must make a commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
4:05 (Recipients of any business subsidy will be required to meet wage and job goals determined
by the Economic Development Authority on a case-by-case basis, giving consideration to
the nature of the development, the purpose ofthe subsidy, local economic conditions, and
situational circumstances.)
The Economic Development Authority may determine after a public hearing that job creation or
retention is not a goal of the subsidy. In those cases, the recipient must instead meet at least one
of the following minimum requirements (in addition to all other criteria in this document other
than those relating to jobs and minimum wages):
(I) The proposed subsidy must accomplish removal, rehabilitation or redevelopment
of "blighted areas" as defined in Minnesota Statues, Section 469.002, Subd.ll,
or must constitute a cost of correction conditions that allow designation of
redevelopment districts under Minnesota Statues, Sections 469.174 to 469.179;
or
(2) The proposed subsidy must result in improvements to public infrastructure or
public facilities, including without limitations, sewers storm sewers, streets,
parks, recreational facilities, and other City facilities; or
.
(3)
The proposed subsidy must remove physical impediments to development of
2
.
EDA Business Subsidy Criteria
land, including without limitation poor soils, bedrock conditions, steep slopes, or
similar geotechnical problems.
4:06 For any business subsidy that does not meet the requirements of Section 4:05, the recipient must
create or retain jobs as determined by the Economic Development Authority, as must meet the
minimum wage thresholds, described in Section 5:03, Greater Monticello Enterprise Fund
Guidelines, l.(b) (whether or not the source of the subsidy is tax increment financing).
5. GREATER MONTICELLO ENTERPRISE FUND PROJECT EV ALVA TION CRITERIA
5:0] The Economic Development Authority will utilize the Greater Monticello Enterprise fund
to support the community's long-term economic goals.
5:02 Each Greater Monticello Enterprise Fund subsidy will be analyzed and evaluated by the
Economic Development authority. Each project shall be measured against the general
criteria in Sections I through 4 and the specific criteria in this Section 5 applicable to the
Greater Monticello Enterprise Fund subsidies.
5:03 Following are the evaluation criteria that will be used by the Economic Development
. Authority:
.
DAWN/WORD/POLICIES: 10/30100
3
-
EDA Business Subsidy Criteria
GREATER MONTICELLO ENTERPRISE FUND GUIDELINES
CITY OF MONTICELLO
505 WALNUT STREET, SUITE #1
MONTICELLO, MINNESOTA 55362
(763) 271-3208
INTRODUCTION
The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic
development by supplementing conventional financing sources available to existing and new
businesses. Through this program administered by the Economic Development Authority and
participating lending institution(s), loans are made to businesses to help them meet a portion of their
financing needs. All loans must serve a public purpose by complying with four or more of the criteria
noted in the next section. In all cases, it is mandatory that criteria # I be satisfied, which requires the
creation of new jobs. It is the responsibility of the EDA to assure that loans meet the public purpose
standard and comply with all other GMEF policies as defined in this document. Along with
establishing the definition of public purpose, this document is designed to outline the process involved
in obtaining GMEF financing.
-
5.
-6
DEFINITION OF PUBLIC PURPOSE
I. To provide loans for credit worthy businesses that create new jobs.
(a)
One job is equivalent to a total of 37.5 hours per week.
(b) At least 90% of the jobs created must pay a wage of the higher of$9.00 per hour, or at
least 160% of the federal minimum wage, exclusive of benefits, for individuals over the
age of 20 during the term of the assistance. Annual written reports are required until
termination date.
Failure to meet the job and wage level goals require partial or full repayment of
the assistance with interest.
2.
To provide loans for credit worthy businesses that would increase the community tax base.
o
~.
To assist new or existing industrial or commercial businesses to improve or expand their
operations. Considerations for loans shall take into account factors including, but not limited
to, the nature and extent of the business, the product or service involved, the present availability
of the product or service within the city of Monticello, the compatibility of the proposed
business as it relates to the comprehensive plan and existing zoning policies, and the potential
for adverse environmental effects of the business, if any.
4.
To provide loans to be used as a secondary source of financing that is intended to supplement
conventional financing (bank financing).
To provide loans in situations in which a funding gap exists.
To provide funds for economic development that could be used to assist in obtaining other
funds such as Small Business Administration loans, federal and state grants, etc.
4
DAWN/WORD/POLICIES. 10/30100
.
.
.
I.
EDA Business Subsidy Criteria
THE GREATER MONTICELLO ENTERPRISES
REVOLVING LOAN FUND POLICIES
BUSINESS ELIGIBILITY
*
Industrial businesses
Non-competitive commercial businesses which enhance the community
Businesses located within the city of Monticello
Credit worthy existing businesses
Non-credit worthy start-up businesses with worthy feasibility studies (Deny all historical
non-credit worthy businesses)
$10,000 loan per each job created, or $5,000 per every $20,000 increase in property
market valuation, or $5,000 per every $20,000 increase in personal property used for
business purposes, whichever is higher.
*
*
.
*
.
II. FINANCING METHOD
*
COMPANION
DIRECT LOAN -
Example: Equity 20%, RLF 30%, and bank 50%. (All
such loans may be subordinated to the primary lender(s) if
requested by the primary lender(s). The RLF loan is
leveraged and the lower interest rate of the RLF lowers the
effective interest rate on the entire project.)
.
PARTICIPATION LOAN - RLF buys a portion of the loan (the RLF is not in a
subordinate position, no collateral is required by the RLF,
and the loan provides a lower interest rate).
.
GUARANTEE LOANS - RLF guarantees a portion of the bank loan. (Personal and
real estate guarantees handled separately.)
III. USE OF PROCEEDS
.
Real property acquisition and development
Real property rehabilitation (expansion or improvements)
Machinery and equipment
*
*
IV. TERMS AND CONDITIONS
*
LOAN SIZE -
Minimum of$5,000 and maximum not to exceed 50% of the
remaining revolving loan fund balance; for example, if the
remaining revolving loan fund balance is $50,000, the maximum
loan issuance is $25,000.
.
LEVERAGING -
Minimum 60% private/public non-GI\1EF
Maximum 30% public (GMEF)
Minimum 10% equity EDA loan
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EDA Business Subsidy Criteria
* LOA)! TERM - Personal property term not to exceed life of equipment (generally
. 5-7 years). Real estate property maximum of 5-year maturity
amortized up to 30 years. Balloon payment at 5 years.
* INTEREST RATE - Fixed rate not less than 2% below Minneapolis prime rate. Prime
rate per National Bank of Minneapolis on date of ED A loan
approval.
* LOAN FEE - Minimum fee of $200 but not to exceed 1.5% of the total loan
project- Fees are to be documented and no duplication of fees
between the lending institution and the RLF. Loan fee may be
incorporated into project cost. EDA retains the right to reduce or
waive loan fee or portion of loan fee.
*Fee to be paid by applicant to the EDA within 5 working
days after City Council approval of GMEF loan.
Nonrefundable.
* PREP A YMENT
POLICY - No penalty for prepayment.
* DEFERRAL OF
. PAYMENTS -I. Approval of the EDA membership by majority vote.
2. Extend the balloon if unable to refinance, verification
letter from two lending institutions subject to Board
approval.
* LATE PAYMENT Failure to pay principal or interest when due may
POLICY result in the loan being immediately called.
In addition to any other amounts due on any loan, and
without waiving any right of the Economic Development
Authority under any applicable documents, a late fee of
$250 will be imposed on any borrower for any payment
not received in full by the Authority within 30 calendar
days ofthe date on which it is due. Furthennore, interest
will continue to accrue on any amount due until the date
on which it is paid to the Authority, and all such interest
will be due and payable at the same time as the amount on
which it has accrued.
*
INTEREST
LIMITATION ON
GUARANTEED
LOANS-
Subject to security and/or reviewal by EDA.
.
* ASSUMABILITY
6
DAWNfWOROiPOUCIES: 10/30/00
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EDA Business Subsidy Criteria
OF LOAN-
None.
*
BUSINESS EQUITY
REQUIRErvlENTS -
Subject to type ofloan; Board of Directors will determine
case by case, analysis under normal lending guidelines.
*
*
Liens on real property in project (mortgage deed).
Liens on real property in business (mortgage
deed) .
Liens on real property held personally (subject to
Board of Directors - homestead exempt).
Machinery and equipment liens (except equipment
exempt from bankruptcy).
Personal and/or corporate guarantees (requires
unlimited personal guarantees).
COLLATERAL-
*
*
*
*
*
An approved GMEF loan shall be null and void if funds
are not drawn upon or disbursed within 180 days from
date of ED A approval.
NON-PERFORMANCE -
*
NON-PERFORMANCE
EXTENSION -
The 180-day non-perfOlmance date can be extended up to
an additional 120 days.
1. A written request is received 30 days prior to
expiration of the 180-day non-performance date.
2. Approval of the EDA membership by majority
vote.
*
Responsibility of the GMEF applicant.
LEG AL FEE -
The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants
shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal
characteristics.
v. ADDITIONAL CRITERIA FOR LOANS ORIGINATING THROUGH SMALL CITIES
ECONOMIC DEVELOPMENT SET-ASIDE GRANT FUNDS
*
Compliance with federal labor standards laws, including:
The Davis-Bacon Act, which requires that workers receive no less than the
prevailing wages being paid for similar work in the locality when the contract,
financed in whole or part with federal funds, exceeds $2,000;
7
DAWNiWORD/POLlCIES 10/30/00
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.
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EDA Business Subsidy Criteria
The Contract Work Hours and Safety Standards Act, which requires that workers
receive overtime compensation at a rate of 1-] /2 times their regular wage after
they have worked 40 hours in one week;
The Copeland "Anti-Kickback" Act, which requires that workers be paid at least
once a week without any deductions or rebates except pemlissible deductions
which include taxes, deductions the worker authorizes and those required by
court processes.
*
Compliance with federal fair housing and civil/human rights laws and with the
Mirmesota Human Rights law, which forbids discrimination in credit, employment,
housing, public accommodations, public service and education on the basis of race,
color, creed, religion, national origin, sex, marital status, disability, sexual orientation,
public assistance or familial status.
.
Compliance with the Low and Moderate Income (LMI) Benefit National Objective,
which, in the economic development context, has as its goal the creation and retention
of jobs, of which a minimum of 51 % must be held by LMI persons, defined as a member
of a family having an income less than or equal to the Section 8 low-income limit
established by the U.S. Department of Housing and Urban Development (HUD).
*
Compliance with requirements of the National Environmental Policy Act (NEPA) of
1969, as amended, and preparation of an Environmental Review Record.
*
Compliance with Section 104(d) of the federal Housing and Community Development
Act of 1974, as amended, which requires that any reduction in LMI dwelling units in the
community must be offset by the creation of similar affordable units and relocation
assistance to displaced LMI families; and with the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, as amended, which mandates
procedures to ensure fair and equitable treatment for persons displaced by projects
designed for the public good.
.
Terms and conditions for federal money:
- Interest Rate: 0% with balloon payment in three years or fixed rate not less
than 3% below Minneapolis prime rate with balloon payment in five years.
- All other terms and conditions are as outlined in The Greater Monticello
Enterprises Revolving Loan Fund Policies, Section IV, above.
DAWN/WORDiPOLlCIES 10/30/00
8
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EDA Business Subsidy Criteria
ORGANIZATION
The Greater Monticello Enterprise Fund is administered by the City of Monticello Economic
Development Authority (EDA), which is a seven-member board consisting oft\,;'o Council members
and five appointed members. EDA members are appointed by the Mayor and confirmed by the City
Council. Formal meetings are held on a quarterly basis. Please see the by-laws of the EDA for more
information on the structure of the organization that administers the Greater Monticello Enterprise
Fund.
PARTICIPATING LENDING INSTITUTION(S)
I. Participating lending institutions(s) shall be determined by the GMEF applicant.
2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the
policies of the GMEF as approved by the City Council.
3. Participating lending institution(s) shall analyze the formal application and indicate to the EDA
the level at which the lending institution will participate in the finance package.
LOAN APPLICATION/ADMINISTRATIVE PROCEDURES
The EDA desires to make the GMEF loan application process as simple as possible. However, certain
procedures must be followed prior to EDA consideration of a loan request. Information regarding the
program and procedures for obtaining a loan are as follows:
Citv Staff Duties:
The Economic Development Director, working in conjunction with the Assistant City Administrator,
shall carry out GMEF operating procedures as approved by the EDA and Council. Staff is responsible
for assisting businesses in the loan application process and will work closely with applicants in
developing the necessary information.
Application Process:
1. Applicant shall complete a preliminary loan application. Staff will review application for
consistency with the policies set forth in the Greater Monticello Fund Guidelines. Staff
consideration of the preliminary loan application should take approximately one week.
Staff will ask applicant to contact a lending institution regarding financing needs and indicate to
applicant that further action by the EDA on the potential loan will require indication of support
from a lending institution.
2.
If applicant gains initial support from lending institution and if the preliminary loan application
is approved, applicant is then asked to complete a formal application. If the preliminary loan
application is not approved by staff, the applicant may request that the FDA consider approval
of the preliminary application at the next regularly scheduled meeting of the FDA.
9
DAWNlWORD/POllCIES: 10130100
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.1.
EDA Business Subsidy Criteria
If the preliminary loan application is approved, applicant shall complete a formal application.
Formal application shall include a business plan which will include its management structure,
market analysis, and financial statement Like documentation necessary for obtaining the bank
loan associated with the proposal is acceptable. Attached with each formal application is a
written release of information executed by the loan applicant.
4.
City staff will meet with applicant and other participating lender(s) to refine the plan for
financing the proposed enterprise.
5.
City staff shall analyze the formal application and financial statements contained therein to
determine if the proposed business and finance plan is viable. Staff may, at its discretion,
accept the findings of a banking institution regarding applicant credit and financial viability of
the project. After analysis is complete, City staff shall submit a written recommendation to the
EDA. A decision regarding the application shall be made by the EDA within 60 days of the
submittal of a completed formal application.
6.
The EDA shall have authority to approve or deny loans; however, within 2] days of EDA
approval, the City Council may reverse a decision by the EDA to approve a loan if it is
determined by Council that such loan was issued in violation ofGMEF guidelines.
7.
Prior to issuance of an approved loan, the City Attorney shall review and/or prepare all
contracts, legal documents, and intercreditor agreements. After such review is complete, the
City shall issue said loan.
ORIGINAL REVOLVING LOAN FUNDING
"LETTER OF CREDIT" FROM MONTICELLO CITY COUNCIL - $200,000
SOURCE - City Liquor Store Fund
City shall transfer needed loan amount from existing accounts at such time that individual loans are
approved. Revenue created through this program shall be under the control of the EDA and shall not
be transfelTed to City funds unless the City Council determines that reserves generated are not
necessary for the successful operation ofthe Authority. If such is the case, such funds must be
transferred to the debt service funds of the City to be used solely to reduce tax levies for bonded
indebtedness of the City (see Section 5 B of the ordinance establishing the Monticello EDA).
REPORTfNG
1. Staff shall submit quarterly summaries and/or annual report detailing the status of the
Monticello Enterprise Fund.
FUND GUIDELINES !vIODIFICA TION
At a minimum. the EDA shall review the Fund Guidelines on an annual basis. No changes to
the GMEF guidelines shall be instituted without prior approval of the City CounciL
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EDA Business Subsidy Criteria
LOAN ADMINISTRil.TION
I.
City staff shall service City loan, shall monitor City position with regard to the loan, and shall
assure City compliance with intercreditor agreement,
2,
All loan documents shall include an intercreditor agreement which must include the following:
A, Definition of loan default, agreements regarding notification of default.
B, Agreements between lending institution and City regarding reproduction of pertinent
information regarding the loan,
], All loan documentation shall include agreements between borrower and lenders regarding
release of privacy regarding the status of the loan,
11
DAWNiVVORDiPOlICIES: 10/30/00
Under the GMEF Guidelines use of proceeds for real property acquisition and
. development, real property rehabilitation (expansion or improvements) and machinery
and equipment. The following commentary is intended to assist developers with those
costs typically considered eligible:
Real Property ACQuisition and Improvement Costs
Land Acquisition
EngineerlDesign Inspection
Fees
Architect Fees
Soil borings
Appraisal Fees
Legal Fees
Environmental Study
Recording Fees
Title Insurance
Building Permit Fees
Building materials
Construction labor
Landscaping
Grading
Curbing/Parking Lot
Machinery and EQuipment Costs
Personal property used as an integral part of the manufacturing or commercial
business, with a useful life of at least three years. Acquisition costs would include
. freight and sales taxes paid. As a general rule, office equipment would not qualify.
.
.
.
.
BYLAWS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I - THE AUTHORITY
Section I. Name of Authoritv. The name of the Authority shall be the
"City of Monticello Economic Development Authority."
Section 2. Office of Authoritv. 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 Authoritv. The seal of the Authority shall be in the form ofa 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 e
established pursuant to Minnesota Statutes, Section 469.090 to 469.108, and adopted by Ordinance
Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota.
ARTICLE II - THE COMMISSIONERS
Section I. Appointment. Terms. Vacancies. Pav. and Removal.
Shall be in accordance to the Monticello Ordinance Amendment No. 172, Chapter 3,
Economic Development Authority, Section 2-3-1: Creation.
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 office of secretary and treasurer need not be held by a commissioner.
Section 2. Duties and Powers. The officers have the usual duties and powers of
their offices. They may be given other duties and powers by the Authority.
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Page 1
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Section 3.
Treasurer.s Duties. The treasurer:
(I)
shall receive and is responsible for Authority money;
(2) is responsible for the acts of the assistant treasurer;
(3) shall disburse Authority money by check only;
(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.
(6) shall prepare and submit an annual report describing its activities and providing an
accurate statement of its financial condition to the City of Monticello by March I
each year.
Section 4. Assistant Treasurer. The assistant treasurer has the powers and duties of the
treasurer if the treasurer is absent or disabled.
Section 5.
Public Monev. Authority money is public money.
ARTICLE IV - EXECUTIVE DIRECTOR
The Economic Development Director shall be designated as Executive Director of the Authority.
Section I. Duties. The Executive Director shall have general supervision over the
administration of its business and affairs subject to the direction of the Authority. As secretary,
the Executive Director in his own name and title shall keep the records of the Authority, shall
act as Secretary 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 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.
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 this office.
ARTICLE V - MEETINGS
Section I. Regular Meetings. Quarterly meetings shall be held upon oral or written
notice at the regular meeting place of the Authority on the 41h Tuesday of January, April, July, and
October.
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Section 2. Annual Meeting. The annual meeting of the Authority shall be held in
conjunction with the regular April meeting at the regular meeting place of the Authority.
Section 3. Special Meetings. Special meetings of the Authority may be called by the
president or two members of the Authority 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. Order of Business. At the regular meetings of the Authority the following
shall be the order of business:
1.
2.
,
~.
4.
. 5.
6.
7.
8.
9.
Call to order.
Roll call.
Reading and approval of the minutes of the previous meeting.
Bills and communications.
Report of the Executive Director.
Report of committees.
Unfinished business.
New business.
Adjournment.
All resolutions shall be in writing and shall be copied in the journal of the proceedings of the
Authority.
Section 6. Unless otherwise specified in the agreement or in these bylaws, all meetings
of the Authority shall be conducted in accordance with Roberts' Rules of Order revised.
Section 7. Manner of Voting. The voting on all questions coming before the Authority
shall be by roll call, and the yeas and nays shall be entered upon the minutes of such meetings.
ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES
Section I. Emplovees. Subject to limits set by the appropriations or other funds made
available, the Authority may employ such staff, technicians, and expel1s as may be deemed proper
and may incur such other expenses as may be necessary and proper for the conduct of its affairs.
.
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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
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. Supplies. The Authority may purchase the supplies and materials it needs to
earry out Sections 469.090 to 469. I 08.
Section 5. Citv Purchasing. An 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. A city may furnish oftices, structures and space,
and stenographic, clericaL engineering, or other assistance to its 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 VB - POWERS
Section 1. Functions. Powers. and Duties. Shall be in accordance to the Monticello
Ordinance Amendment No. 172, Chapter 3, Economic Development Authority, Section 2-3-4:
Functions, Power, and Duties.
Section 2. Limitations of Power. Shall be in accordance to the Monticello Ordinance
Amendment No. 172, Chapter 3, Economic Development Authority, Section 2-3-5: Limitation of
Power.
ARTICLE VIII - AMENDMENTS
Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a
majority vote of the Authority membership a regular or special meeting. The amendments must be
in written form.
Section 2. In any instance where these bylaws are in cont1ict with the Ordinance
Amendment No. 172, Chapter 3, Economic Development Authority, such Ordinance Amendment
shall controL
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Section 3.
These bylaws are effective upon their adoption by the Authority.
Dated:
,1990.
(Seal)
BYLA WS.EDA: 5/13/91
AMENDED: 5/22/01
Signed:
President
Executive Director
Page 5