HRA Agenda 06-06-2007
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 6, 2007 - 6:00 p.m.
Bridge Room - Community Center
Commissioners:
Vice Chair Bill Fair, Brad Barger, and Dan Frie.
Council Liaison:
Wayne Mayer.
Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
1. Call to Order.
2. Consideration to approve the April 11, 2007 and May 2, 2007 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda:
5. Consideration to authorize preparation of a resolution and to approve a resolution entering into
a Loan Agreement between the Housing and Redevelopment Authority in and for the City of
Monticello and the City of Monticello for 201 East Broadway.
6. Consideration to accept the resignations ofHRA Commissioners Steve Andrews and Damn
Lahr.
7. Consideration to authorize payment ofHRA bills.
8. Consideration ofHRA Executive Report.
9. Committee Reports: Marketing
Fiber Optics
EDA/HRA merger
10. Next regular HRA meeting - Wednesday, July 4, 2007. (Need to reschedule)
11. Adjournment.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 11, 2007
Commissioners Present:
Vice Chair Steve Andrews, Bill Fair and Dan Frie
Commissioners Absent:
Chair Brad Barger, Damn Lahr
Staff Present:
Ollie Koropchak, Angela Schumann, Rick Wolfsteller
1. Call to Order.
Vice Chairman Andrews called the meeting to order and declared a quorum, noting
the absence of commissioners Barger and Lahr.
2. Consideration to approve the February 7. 2007 minutes.
MOTION BY COMMISSIONER FRIE TO APPROVE THE MINUTES OF
FEBRUARY 7TH, 2007.
MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 3
YEYS - 0 NEYS.
3. Consideration of adding or removing items from the agenda.
NONE.
4. Consent Agenda
a. Consideration to approve the Certificate of Completion for SL Real Estate
Holdings, LLC dba Karlsburger Foods.
Koropchak noted that she has a call in to Kennedy and Graven about
charges that are not related to the Karlsburger site. She indicated that the
invoiced amount was for $17,055.56, but that there is a $688 that should
be removed. Koropchak also noted that Karlsburger has not provided the
invoice to pay for grading.
MOTION BY COMMISSIONER FAIR TO APPROVE THE
CERTIFICATE OF COMPLETION FOR SL REAL ESTATE
HOLDINGS, LLC.
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION
CARRIED, 3 YEYS - 0 NEYS.
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4.5 Consideration of a presentation on the Cedar Street Garden Center propertv bv Zach
Adams. Wright-Sherburne Realtv.
Zach Adams, representative of Wright Sherburne Realty, addressed the HRA
representing Leslie Delise, Cedar Street Garden Center. Delise is seeking to sell the
land and buildings, although the value is essentially in the land. Adams noted that the
Garden Center parcel is the largest contiguous piece in the downtown at 1.2 acres.
Adams stated that it is the client's intent to propose the HRA purchase the property as
a redevelopment opportunity.
Adams stated that he had spoken with Allied properties in tenus of a possible project
on their block. Allied had indicated that the timing wasn't right for their project due
to monetary and parking concerns. Adams suggested that if the City could acquire
the garden center property, it could be used to alleviate those issues for the Allied
project. Adams reported that Allied couldn't purchase the property, but had indicated
that they believes that when the time comes, they will be able to put something
together.
In summary, Adams stated that they are offering it to the HRA for purchase for
parking. He indicated that it is listed at $459,900, for a per square foot cost ofless
than $9.53.
Fair asked Delise if she would open this year. Delise confirmed. Andrews asked
how long she would need to make a transition. Delise explained that traffic pattern
had already changed with recent commercial developments, so this was the first year
that they hadn't been open all winter. The market has changed. Adams stated that
leasing back would be an option. Schumann asked if she would relocate. Delise
indicated that she wasn't sure, but most likely not.
Wolfsteller asked what Allied owns on Block 35. Koropchak replied that they own
the Times building, the old theater parking lot and the bank building. Adams stated
that Allied essentially owns about 2/3 of the block.
Andrews suggested that the HRA should take the matter under consideration, do
some research and bring back the item back for discussion at the next meeting.
Andrews thanked Adams and Delise for presenting the option to the HRA. Delise
stated it has been 2 years since the first listing of the property.
Frie asked if Delise required any kind of terms. Adams stated that as there are two
owners of the property, she would prefer to cash out. Frie asked if the HRA did
purchase the property, would she rent it back. Delise stated that she was unsure at
this time.
MOTION BY COMMISSIONER FAIR TO PLACE CONSIDERATION OF
PURCHASE OF THE CEDAR STREET GARDEN CENTER PROPERTY ON THE
MAY HRA AGENDA FOR DISCUSSION AND DECISION.
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Andrews stated that research on the option needed to be done in the interim.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3
YEYS - 0 NEYS.
5. Consideration to approve a resolution adopting a modification to the Redevelopment
Plan for Central Monticello Redevelopment Proiect No. I and establishing TIF
District No. 1-38 therein and adopting a TIF Plan therefore. Applicant: Walker In-
Store.
Koropchak reported that the resolution the HRA is being asked to consider establishes
a TIF district for a 5 acre, 1.5 acre developable site. Koropchak explained that all
statutory requirements have been met and that the Planning Commission had
approved their resolution supporting the land use as consistent with the plan.
Koropchak stated that EWers' projections indicate that the district should generate
$75,000 in increment.
MOTION BY COMMISSIONER ANDREWS TO APPROVE A RESOLUTION
ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR
CENTERAL MONTICELLO REDEVELOPMENT PROJECT NO. I AND
ESTABLISHING TIF DISTRICT NO. 1-38 THEREIN AND THE ADOPTION OF
THE TIF PLAN THEREFORE.
MOTIONED SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3
YEYS - 0 NEYS.
6. Public Hearing on the Business Subsidv Agreement and Land Sale.
a. Consideration to adopt a resolution approving the Purchase and
Redevelopment Contract between the HRA and WRE, LLC including the
business subsidy agreement and land sale.
Koropchak stated that she had talked with the HRA attorney, who had
spoken with WRE about the proposed changes. Koropchak reviewed the
proposed changes. In section 3.6 referencing indemnification, Walker
does not want to indemnify the City and HRA until after closing.
Walker's attorney was adamant on this item. Frie asked if this was an
disagreement between two attorneys. Frie noted that it is hard to get
insurance on something you don't own. Koropchak stated that the HRA
attorney didn't seem to have a good reason to keep it in. Andrews stated
that perhaps the HRA could acquiesce on that item.
Koropchak also explained that Walker's attorney had requested a change
regarding capping the amount of expenses for creation of the district and
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City project fees. The HRA Commissioners agreed that Walker should be
required to pay actual costs.
Koropchak explained that she had also further defined employment items
to the applicant. That being that two part times jobs must equal 37.5
hours, and that a permanent employee is not temporary or seasonal.
Koropchak noted that the applicant is purchasing 1.5 acres for $43,560.
The balance of 4.6 acres Walker is getting at no cost due to power lines
and ponding.
Vice Chair Andrews opened the public hearing.
Hearing no comment, Vice Chair Andrews closed the public hearing.
MOTION BY COMMISSIONER FAIR TO ADOPT A RESOLUTION
APPROVING THE PURCHASE AND REDEVELOPMETN
CONTRACT BETWEEN THE HRA IN AND FOR THE CITY OF
MONTICELLO AND WRE, LLC, INCLUDING THE BUSINESS
SUBSIDY AND LAND SALE, WITH A CHANGE TO SECTION 3.6
OF THE CONTRACT, REGARDING INDEMNIFICATION
REQUIREMENTS.
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION
CARRIED, 3 YEYS - 0 NEYS.
b. Consideration to approve a resolution authorizing Interfund Loan for
Advance of certain costs in connection with TIF District No. 1-38.
Koropchak stated that the HRA is being asked to consider a resolution
which approves a loan for certain costs for the district. The loan
authorizing the HRA to advance funds of $152,460 with 8% interest rate.
MOTION BY COMMISSIONER FAIR TO ADOPT A RESOLUTION
AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN
COSTS IN CONNESTION WITH TIF DISTRICT NO. 1-38.
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION
CARRIED, 3 YEYS - 0 NEYS.
7. Consideration to approve the election ofHRA officers and approve appointment of
commissioner to subcommittees.
Fair questioned whether Frie still intended to refrain from acting as chair in the
coming year. Frie asked who would be chair in the rotation, should be choose to
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W olfsteller stated that much of the report was put together by Senior Accountant
Paula Mastey. He stated that the report provided to the HRA is somewhat different
than the TIF reports that go to the state auditor. However, the revenues and
expenditures are accurate for 2007. W olfsteller indicated that the one item that hadn't
been completed is a break out of the main district downtown (1-22); most of the
revenue and expenditures are listed together. Wolfsteller noted that the end total is
correct. In summary, there is a net of almost $300,000 in all of the downtown
districts combined.
refrain. Koropchak stated that it would be Andrews. Fair asked if the new officer
slate would be in effect as of July. Koropchak confirmed.
MOTION BY COMMISSIONER FRIE TO NOMINATE AND ELECT STEVE
ANDREWS AS CHAIR AND BILL FAIR AS VICE CHAIR OF THE HRA FOR
YEAR 2007, AND APPROVE THE APPOINTMENT OF RICK WOLFSTELLER
AS SECRETARY-TRESURER FOR 2007.
MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 3
YEYS - 0 NEYS.
Koropchak reported that currently, Commissioners Lahr and Barger serve on the
marketing committee, Commissioner Frie is the HRA representative to the Comp
Plan Task Force and Commissioner Andrews serves on the Fiber Optics Committee.
MOTION BY COMMISSIONER ANDREWS TO ADOPT THE APPOINTMENT
OF COMMISSIONERS TO COMMITTEES BASED ON 2006 APPOINTMENTS.
MOTION SECONDED BY COMMISSIONER F AIR. MOTION CARRIED, 3
YEYS - 0 NEYS.
8. Consideration to review and accept the vear-end financial reports for the HRA
General Fund and TIF Fund as prepared bv HRA Treasurer Wolfsteller and Senior
Accountant Paula Mastev.
Koropchak stated that the revenues transferred to the HRA general fund include the
transfers from City to HRA for land sale at the business campus, including A VR,
Dahlheimer and Karlsburger. The expenditures for the improvements at Otter Creek
do have the impact of appearing to decrease fund totals. Koropchak stated that
internally staff need to discuss whether improvement costs should be allocated to
individual TIF districts. Wolfsteller stated that the balance sheets in essence show the
HRA as land rich and cash poor. Frie asked if the remaining payments for the
Chadwick land show up. W olfsteller stated that they do not.
Fair recommended tabling approval until the final version of the statement comes
forward.
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Koropchak inquired of Wolfs teller where advance payments come from. Wolfsteller
replied that they should come from the HRA general fund to the districts. Wolfsteller
stated that the City shouldn't take money from the HRA to buyout the remaining
land from Chadwick. He suggested that perhaps each year, the HRA would make a
payment to the City to for property sold. Wolfsteller stated the remaining amount
owed to Chadwick is $750,000.
9. Consideration to review for amending the HRA Business Subsidy Criteria and HRA
Bylaws for possible amendment and to call for a public hearing if determined.
Koropchak explained that the City had begun preliminary discussions regarding a
possible merger of the HRA and EDA. Koropchak stated that she has been asked to
start working on the item Koropchak commented that her recommendation would be
that the new entity be structured as an EDA, as the EDA has more statutory powers.
Koropchak noted that the HRA's assets and powers will need to be transferred and
accepted by the EDA. The make-up of the board will also need to be determined.
Koropchak stated that it would be her recommendation that appointments are limited
to City residents because of the dollars involved.
Due to the pending restructuring, the Commissioners chose not to seek amendments
to the bylaws and subsidy criteria. Koropchak indicated that as such, no public
hearing would be required.
10. Consideration of an update on the Comp Plan (downtown) and discuss Froslie
purchase offer.
Frie reported that he and Fair had shared attendance at the Comprehensive Plan Task
Force meetings. Frie stated that the process has been somewhat disappointing and
that perhaps it was not an ideal place to have a serious discussion about the future of
Monticello. Schumann explained that the findings from the neighborhood meetings
and the task force will now go forward to the Planning Commission and City Council
for review and direction.
Frie asked if there were any pending proposals in the legislature to eliminate TlF or to
adjust requirements. Koropchak stated that to her knowledge, TlF will continue to
exist much as it is, but perhaps with minor adjustments. There has not been much
discussion to do away with the program this session.
Koropchak stated that she had received another email indicating that Froslie will sell
her property for $500,000. Fair noted that as the Springborg property is no longer
available, purchase of this property is less interesting. Koropchak stated that at the
based on the recent email asking price, the rate is $25 per square foot. Fair stated that
he believes the price is excellent on garden center and involves little demolition and
no relocation. He also noted that on the adjacent block, Allied is actually interested
in putting together a project. Wolfsteller commented that parking wasn't the issue in
moving the Allied project forward; it was overall cost.
MOTION BY COMMISSIONER FAIR TO WITHDRAW ANY OFFERS ON THE
FROSLIE PROPERTY, AND TO INDICATE THAT THE HRA IS LOOKING AT
A DIFFERENT DIRECTION.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3
YEYS - 0 NEYS.
II. Consideration to authorize payment ofHRA bills.
MOTION BY COMMISSIONER FAIR TO APPROVE THE BILLS.
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED,
3 YEYS - 0 NEYS.
12. Consideration ofHRA Executive Report.
Koropchak referred to the report included in the packet.
13. Committee Reports:
a. Andrews stated that he had missed recent fiber meetings, but indicated that
the Council had taken action to move forward on an RFP for financing the
system.
b. Koropchak reported that the Marketing Committee is working with
students from SCSU on a Monticello bio-science campus feasibility study.
A presentation of results will take place on April 30th at SCSU.
14. Next meeting: Wednesday, May 2,2007
15. Adiourn
MOTION BY COMMISSIONER FAIR TO ADJOURN.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 2, 2007 - 6:00 p.m.
Bridge Room - Community Center
Commissioners Present:
Brad Barger, Dan Frie, and Vice Chair Bill Fair.
Commissioners Absent:
Vice Chari Steve Andrews, Darrin Lahr
Council Liaison Present:
Wayne Mayer
Staff:
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Guest:
Mike Cyr, MLC Building and Remodeling, Inc.
1. Call to Order.
Vice Chairman Fair called the meeting to order and noted a quorum, and the absence of
Commissioners Lahr and Andrews.
2. Consideration to approve the April 11, 2007 HRA minutes.
Koropchak indicated that the minutes have not been prepared. As such, they will be
considered for approval at the June meeting.
3. Consideration of adding or removing items from the agenda.
Koropchak added as part of item 5 a consideration to discuss information regarding
another proposal for downtown development interest. Koropchak stated that she thought
the information was relevant to the Cedar Street Garden Center discussion.
4. Consent Agenda.
NONE.
Frie recommended moving item 7 forward as Mike Cyr was present for the discussion.
Item 7 was brought forward for discussion prior to item 5.
5 Consideration to discuss the presentation on the Cedar Street Garden Center for possible
acquisition and to take action accordinglv.
Fair noted that there had been a presentation, after which staff was to put together more
information. Koropchak stated that the asking price is now $459,900, which has dropped
significantly.
Koropchak stated that the property is within the downtown redevelopment district. Based
on the financial information available, the HRA's cash balance is $299,000. Projections
over the life of district are $1.4 million from 25% pooling rule. Koropchak stated that the
HRA doesn't have the cash to pay for the land today, but would over the time of the
district.
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Fair asked ifthere would be a new appraisal needed at that time. Koropchak responded
that it would be more important to complete it at the beginning of the project. Koropchak
stated that the decision to purchase the property relates to how important the HRA views
the property in terms of redevelopment.
Koropchak explained that if the HRA wanted to demolish the building and create a new
TIF district, the City's Building Official would need to perform an inspection, and the
property would need to qualify as substandard. Koropchak noted that while an appraisal
isn't required to purchase the property, if the HRA would use any Community
Development Block Grant, it may be required.
Koropchak indicated that she had spoken with Greg Hayes of Shingobee Development.
He had stopped by and inquired about redevelopment. He explained that they had
worked with Ehlers and Mark Ruff on the St. Michael redevelopment project. The
project took two years and their EDA had acquired properties over time.
Fair stated that as the HRA starts acquiring buildable parcels, it will start to see things
happen. He noted the reluctance of some property owners to come together on a
proposal.
Fair stated that he believes the Cedar Street property has potential. Frie noted that the
parcel could be developed on its own. Fair indicated that he thinks numbers are right for
the purchase and would like the HRA to offer a purchase agreement.
Frie suggested that the HRA could allow the property owner to not give up possession
until after season. Frie noted that 3 years ago the price for the property was slightly
higher. Barger stated that there would be no relocation because the property owner had
approached the HRA. Mayer stated that purchase of the property would make a statement
that the City is serious about redevelopment.
Frie stated that real estate market is low and suggested offering perhaps 3% less than the
asking price with possession in October. Fair commented that a January I'" 2008
possession date would gives her time to clear out.
Korochak inquired where the HRA would obtain funding for the purchase. Fair stated
that the HRA would have to go City Council to see if they'll lend the funds. Frie noted
that the loan would be paid back out of the district.
MOTION BY COMMISSIONER BARGER TO OFFER $450,000 FOR THE CEDAR
STREET GARDEN CENTER PROPERTY WITH POSSESSION OF THE PROPERTY
NO LATER THAN JANUARY I 2008, SUBJECT TO NO RELOCATION BENEFITS,
WITH OFFER CONTINGENT UPON FINANCING.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3 YEYS - 0
NEYS.
Koropchak asked ifFrie would be willing to prepare the purchase agreement.
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6. Consideration of a request from Lyle Trunnell for HRA purchase of residential property.
MOTION BY COMMISSIONER FRIE TO EXPRESS NO INTEREST IN 33 FOOT
LOTS TO THE PROPERTY OWNER. MOTION SECONDED BY COMMISSIONER
BARGER. MOTION CARRIED; 3 YEYS - 0 NEYS.
7. Consideration of a request for advancement of the pay-as-you-gO finance method
associated with TIF District No. 1-29 (Front Porch.)
Koropchak provided background stating that TIF District 1-29 is a housing district. The
HRA entered into a contract for private redevelopment, which was then assigned to 1 st
National Bank. The TIF total was $220,000 at 7.25% interest. The note goes to February
1 st, 2020, and the life of the district can go through 2029.
Koropchak stated that payments through the end of December, 2005, did not include any
principal, only interest payments. At the end of 2006, there was $22,000 fund balance in
that district.
Mike Cyr stated that the contract indicates that the authority may pre-pay part or all of
land acquisition. Koropchak stated that the language is put in all contracts, as it allows
HRA the option of pre-payment. Koropchak stated that the developer was to complete 18
homes by December of 2004, which was accomplished in March of 2005. She noted that
there were 8 additional units to be created which were outside of the district, but within
the project area. Koropchak reported that Cyr has Certificates of Occupancy for 4 of the
remaining 8 to be completed, and two more will be completed by the end of this year.
Cyr corrected that there are 5 Certificates of Occupancy and that they have a purchase
agreement on six of the remaining eight units.
Cyr stated that he would like to know if there is a possibility for an advance in tax
increment. He is requesting this due to the unexpected slow sales. He noted that he had
projected to be done in 2005. In the time since then, financing costs have ballooned. And
he had an unexpected cost on inspections from the City. Schumann explained the City's
preliminary and construction and review process.
Cyr stated that he has 23 of26 units sold, with one purchase pending and construction on-
going on the final two units. Cyr stated that he had expected enough cash flow to payoff
a bridge loan. He indicated that he has achieved that, which leaves a balance of about
$65,000. He stated that his final three closings should generate $60,000 in cash flow. As
such, in the short term, there are no profits associated with the sale of these townhomes.
Right now, Cyr stated that there is approximately $60,000 in expenses for closing out the
project, including paving landscaping and additional financing costs. In summary, he
stated that the project will be in the hole until the TIF catches up.
Cyr stated that his request is for pre-payment of $35,000 at minimum, perhaps up to
$65,000. He stated that he would use that to pay City invoicing and then pay on the bridge
loan. He said that the sales of the final homes would finish bridge loan and last punch list
items.
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Frie asked how much annual payment is. Koropchak stated that it is $22,000 for 2007.
Cyr stated that according to his calculations, he would be owed about $32,000 interest at
this point, plus principal of $220,000. Koropchak stated that the accrued interest starts
from date of closing. Koropchak stated that she had not checked what the 2006 payment
was made to the bank. Barger stated that the increment now is being paid directly to the
bank.
Fair confirmed that that the advance would go to the bank. Koropchak stated that if a
portion of pay-as-you-go is to be paid up front, normally the HRA would have an
assessment agreement. Koropchak stated that in this case, the assessment agreements
would have to come from the homeowners, which they most likely wouldn't want to do.
Cyr stated that he wasn't aware of that, and he agreed that they wouldn't want to do that.
Cyr asked what the HRA would need to act as a guarantee. Koropchak stated that each
would have to agree that properties would meet a certain value. Barger noted that could
become expensive with attorneys. Koropchak commented that the County assessor also
has to agree and that the assessment agreement is tied to both the building and land. Cyr
asked what the HRA is securing against. Koropchak referred to a situation where perhaps
homeowners do not pay their property taxes.
Fair stated that he doesn't know what the HRA can do, as the fees would just add to the
problem. He noted that because the TIF funds are public dollars, the HRA would have to
show and sign agreements.
MOTION BY COMMISSIONER FRIE TO DENY THE REQUEST FOR
ADVANCEMENT OF THE PAY -AS- YOU-GO FINANCE METHOD ASSOCIATED
WITH TIF DISTRICT NO. 1-29 (FRONT PORCH.).
MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 3
YEYS -0 NEYS.
Cyr inquired whether the City would be interested in purchasing the Stumpfhousenear
the Ruff Auto site. The HRA discussed alternatives. After discussion, the HRA directed
Cyr to act as a facilitator between Stumpf and Rollings and report to Koropchak.
8. Consideration to authorize pavrnent ofHRA bills.
Koropchak added invoices for Walker In-Store public hearing notice and Steve Conroy's
final invoice.
MOTION BY COMMISSIONER BARGER TO AUTHORIZE PAYMENT OF HRA
BILLS.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3 YEYS -
o NEYS.
9. Consideration ofHRA Executive Report.
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Koropchak indicated that with market conditions as they are, she has been receiving more
requests for transformation home loans.
Koropchak outlined the possible merger of the HRA and EDA. She stated that she is
recommending a transfer of powers to the EDA, as that body has more statutory authority.
A discussion commenced regarding the resignation of Commissioners Andrews and Lahr,
and how other EDA openings could influence the future make-up of the new entity.
Koropchak stated that an item is likely to go before the Council on May 14th.
10. Committee Reports.
Marketing -
Frie reported that a group had attended a presentation of the SCSU
feasibility study. Frie explained main points of the study,
including the need to build partnerships with bioscience
industries such as Cargill and educational facilities. He
also noted the lease space often set up as "incubators" for
these types of industries.
Koropchak noted that the IDC had requested a presentation
of the study to stakeholders within the community, which
she will be arranging.
Fiber Optics -
Fair asked for an update on the timing and cost for the proposed project.
Mayer stated that it is hoped that the building housing the system
electronics would begin this fall. He stated that the Council has agreed to
move forward; the last item to approve is the bond sale. The Task Force is
evolving into a committee to keep things secure from bidders. It will be a
separate enterprise. Fair asked what happens with TDS and Charter.
Mayer stated that the City will be a third service choice.
10. Next regular HRA meeting - Wednesday, June 6, 2007.
11. Adiournment.
MOTION TO ADJOURN BY COMISSIONER FRIE.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 3
YEYS - 0 NEYS.
BRA Agenda - 06/06/07
5. Consideration to authorize preparation of a resolution and to aoprove a resolution
enterinl! into a Loan Al!reement between the Bousinl! and Redevelopment Authoritv in
and for the Citv of Monticello and the Citv of Monticello.
A. Reference and backl!round:
At the HRA meeting in May, the commissioners approved a motion making an offer in the
amount of$450,000 for the Cedar Street Garden Center, 201 East Broadway, subject to no
relocation costs, closing date of no later than January 1, 2008, pending funding approval by
Council, and authorized preparation of a purchase agreement. The HRA agreed to request
funding, a loan from the City Council, with loan payments from 25% of the pooling dollars of
TIF District No. 1-22 as projected over the life of the district. The HRA is land rich and cash
poor after paying for 88 acres of the Otter Creek Crossings property. The 201 East
Broadway (two PID numbers. 1.12 acres) parcels were certified as part of Redevelopment
TIF District No. 1-22 in 1997.
The purchase agreement was prepared as directed with funding approval by June 6, 2007, and
closing date of January 1, 2008. The seller executed the Purchase Agreement as presented
except for one change: closing date moved up to July 16, 2007. The Purchase Agreement was
executed by the buyer accepting the one change. An earnest check of$l,OOO from the buyer
to the agent was issued and is held in escrow.
On May 29, 2007, the Council was requested to grant a conceptual approval of a loan
($450,000) to the HRA for the purchase of the property located at 201 East Broadway. The
motion passed on a 3-2 vote after some discussion. Concerns raised were: Status of the city
general reserve fund; lack of downtown redevelopment plan; fast-track request; and given the
real estate market, does it open the door for others to ask the HRAlcity and where does it end?
Wolfsteller did ask if the closing date could be prior to July 1, as July 1 is the deadline date for
tax exempt recording at the county for year payable 2008. The agent was contacted the next
morning to check with the sellers for acceptance of an earlier closing date and to begin the title
work in preparation of an earlier closing date. I will hear within a few dates if that's possible.
Approval of the resolution and loan agreement between the HRA and City is scheduled for the
June 1 I Council meeting.
TERMS AND CONDITIONS OF THE LOAN:
At the suggestion of the HRA Attorney, the interest rate could be determined according to the
city's current interest rate on investments. Wolfsteller suggested about 5%. The HRA needs to
determine the interest rate, length of term, and other conditions. It was previously determined
to use the 25% pooling dollars from TIF District No. 1-22 as the projections by Ehlers
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BRA Agenda - 06/06/07
indicated 1.4 millions generated over the life of the district (2024). However. given the
council's concern about the city reserve fund and to reduce the amount of interest paid by the
HRA, I suggested and talked with Wolfsteller about the HRA using $250,000 (from the
estimated existing $300,000 net balance ofNo.I-22) resulting in a loan amount from the city of
$200,000. This would appear to be a win/win for both governmental entities. In the meantime,
I wili continue to research this and distribute comparative amortization schedules at the HRA
meeting.
B. Alternative Action:
I. A motion to approve authorization to prepare a resolution and to approve a resolution
entering into a Loan Agreement between the HRA and City for the purchase of the
property at 201 East Broadway. Amount ofloan , interest
rate , length of term , source of revenue for
loan payment, and others
2. A motion to deny approval to authorize preparation of a resolution for entering into a
Loan Agreement between the HRA and City.
3. A motion to table any action.
C. Recommendation:
The Finance Director and Executive Director recommend alternative no. I as the purchase price
appears to be a fair market land price, property lies within the existing downtown
redevelopment district, no relocation costs, and sends a message of governmental interest in the
downtown. Given further research, the recommendation for the loan amount is withheld. It is
recommended the HRA discuss immediate plans for the property upon completion of the
acquisition.
D. SUDDortin~ Data:
Copy ofthe purchase agreement, maps, tax information, and council agenda item.
2
*
MONTICELW
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET. SUITE 1
MONTICEllO, MN 55362
763.295.2711
17-1
-910
NO. 88908
WELLS FARGO BANK
MONTICEllO, MjNNESOTJ'l, 56362. (16J) 295.2290
DATE
CHECK NO.
AMOUNT
05/10/2007
88908
$1,000.00
ONE THOUSAND AND 00/100 DOLLARS
PAY TO
THE
ORDER
OF
WRIGHT-SHERBURNE REALTY
200 BROADWAY WEST
MONTICELLO MN 55362
j ._'
- t~~f!~?~f(;!;J
11'08890811' 1:09 l.D000 l. 91:
71;0 00 l. 711'
P.O.# INVOICE
05/10/2007
DESCRIpTION
CHECK
88908
TENDOR 003745 WRIGHT-SHERBURNE REALTY
;'.:,,':>,,,,,'.',','.,',,.,,,;;_,,:;'j:\:,;,:;,,;'~(,,_;i:;~:';,.:},::'y
"UND & ACCelUNrP'.
AMOUNT
n3. 46522.5101
EARNEST MONEY 201 BROADWAY E
1,000.00
TOTAL
1,000.00
CITY OF MONTICELLO. MONTICEllO, MN 55362
..
3. Received of Housing and Redevelorxnent Authori ty (HRA)
4. the sum of one Thousand
COMMERCIAL-INDUSTRIAL
PURCHASE AGREEMENT
This fonn approved by the Minnesota Association of
REAL TORS4ll. which disclaims any iiability
arising out of use or misuse of this form.
@ 2004 Minnesota Asscciation of REAL TORS@, Edina, MN
1. Date May 9. 2007
2. Page 1 of 6 pages
in and for the City of Monticello
($ 1,000.00 ) DOLLARS
5.
6. at
7. County of
in the form of a check as earnest money and in part payment for the purchase of property
(check, cas/1 or note-state whicl1)
201 East Broadway Monticello , MN 55362 situated in the
Wriqht , State of Minnesota. and legally described as follows: Lots 1 ,2,3 ,4.5. 6 , 7 ,8 , 9
8. Block B Original Plat for Monticello. Wright County. MN
9.
10. together with the following personal property: None
~~
r-/~
13. all of which property the undersigned has this day sold to the Buyer for the sum of: Four Hundred Fift Thousand
14. ($ 450.000.00 ) DOLLARS, which the Buyer agrees to pay I
15. Eamest money herein paid $ 1 ,000.00 and $ 449.000.00 , cash. on
16. , the date of Closing and the balance of $ -0- by financing as shown on the attached Addendum.
11.
12.
17. 1.
18.
19.
20.
21.
DEED/MARKETABLE TITLE: Subject to performance by the Buyer, Seller agrees to execute and deliver a -----------------
Warranty Deed conveying marketable tiUe to the property subject only to the following exceptions:
(a) building and zoning laws, ordinances, State and Federal regulations; (b) restrictions relating to use or improvement of the premises
without effective forfeiture provision; (c) reservation of any minerals or mineral rights to the State of Minnesota; (d) utility and drainage
easements which do not interfere with present improvements; (e) rights of tenants as follows: None
22.
23.
24.
25. 2. REAL ESTATE TAXES: Real estate taxes due and payable in the year of closing shall be prorated between Seller and Buyer on a calendar
26. year basis to the actual date of closing unless otherwise provided in this Purchase Agreement Real estate taxes payable
27. in the years prior to closing shall be paid by Seller. Real estate taxes payable in the years subsequent to closing shall be paid by Buyer; ,.,'., C -- - ~
28, 3. SPECIAL ASSESSMENTS: : ,', . ' .. .~.
29. 0 BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING' ~ SELLER SHALL PAY on the dale of closing --
..... - ---- - -- - -- -- -. - --. -- -- --- ---- - - - - -- -- ---- - -- - - --- (ch<<k0llft) --- ----- ---- - - -----. -- - - -- -- -- - -- -- --. - - -- - - -- - - ---~ --. - _.-
- -- --- .
all installments of special assessments certified for payment with the real estate taxes due arid payable in the year of c1osing.m
o BUYER SHALL ASSUME 00 SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as Cot-the
- - - - - - --- - --- --- -- -- - - - --- -- -- --- --.. -- (checK OfIe)-- -- ---- ---. - --- ~ - - - - -- - ~..- -. - - --- --- ---
date of this Agreement ,".' -
o BUYER SHALL ASSUME ~ SELLER SHALL PROVIDE FOR PAYMENT OF sPecial assessments "penQing as of the
_ _ _ _ _ _ ___ _ __ _ _ _ _ __ __. _ _ _ _ _ _. -_ _ __ __ -- -- -- --(check one,- ___ _. ____ _.. _. _ _ _ n - ---- ----- ---. ---- - - -. - .
34. date of this Agreement for improvements that have been ordered by the City 'CouncilOr any other governmental orptivate assessing , , m
35. authorities. (Seller's provision for payment shall be by payment into escrow of1 112 times the estimated amount of the assessments.)
36. If a special assessment becomes pending after the date of !his Purchase Agreement and before the dale of closing. Buyer, maY,~:!l[
37. Buyer's option: (a) assume payment of the pending special assessment without adjustment to the purchase price; or (b) require Seller
38. to pay the pending special assessment (or escrow for payment of same a sum equal to 11/2 times the projected pending assessment),
39. and Buyer shall pay a commensurate increase in the purchase price <1!the property; which increase shall be the same as the estimated "
40. amount of the assessment or (e) declare this Purchase Agreement terminated by written' notice to Seller or ;licensee representin!f"llF-~~
41. assisting Seller. If Buyer terminates this Purchase Agreemen~ Buyer and Seller shall immediately sign a cancellation of purchase
42. agreement directing all eamest money paid hereunder to be refunded to Buyer. Seller shall pay on date of closing any deferred real
43. estate taxes or speciai assessments payment of which is required as a result of the closing of this sale.
44. 4. PRORATIONS: A1i items customarily prorated and adjusted in connection with the closing of the sale of the property hereln including but
45. not limited to rents, operating expenses. interest on any debt assumed by Buyer, shall be prorated as of the dete of sIG6iRg. It ~hall be
46. assumed that Buyer will own the property for the entire date of the closing. possesswn
MNCI: PA-l (8104)
Wright Sherburne Realty P,O. Box 25, Monhcello MN 55362
Phone, 7632955990 Fax, 7632955723
Produced with ZlpFormllll by RE FormsNet. LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.ziotmn.com
30.
31.
32.
33.
blank.z1X
COMMERCIAL-INDUSTRIAL
PURCHASE AGREEMENT
47. Address 201 East Broadwav Monticello, MN 55362
48. Page 2
49. 5 DAMAGES TO REAL PROPERTY: If there is any loss or damage to the property between the date hereof and the date of closing, for any
50. reason, the risk of loss shall be on Seller. If the property is destroyed or substantially damaged before the closing, this Purchase
51. Agreement shall terminate, at Buyers option, if Buyer gives written notice to Seller or licensee representing or assisting Seller of such
52. termination within thirty (30) days of the damage. Upon said lemnination, Buyer and Seller shall immediately sign a cancellation of
53. purchase agreement directing all eamest money paid hereunder to be refunded Buyer.
54. 6. EXAMINATION OF TITLE: Within a reasonable time after acceptance of this Purchase Agreement, Seller shall provide evidence of tiffe
55. to Buyer or Buyers designated title service provider, which shall include proper searches covering bankruptcies, slate and federal
56. judgments and liens, and levied and pending special assessments, as follows:
57. IF THE PROPERTY IS ABSTRACT, Seller shall provide either (a) a commitment for an owners policy of title insurance on a current
58. AL T A fonm issued by an insurer licensed to write title insurance in Minnesota and Seller shall pay the costs of evidence of title for such
59. title insurance policy, and Buyer shall pay the premium for any owners policy or lenders policy issued by the title insurance company,
60. the title examination fee and the fee for any endorsements or other coverages requested by Buyer, or (b) Abstract of Title certified to
61. date. Seller shall pay for all abstracting fees and sumender any abstract in Sellers possession or control to Buyer at Closing.
62. IF THE PROPERTY IS TORRENS, Seller shall provide, at Buyers option and reques~ either: (a) a Registered Property Abstract
63. certfied 10 date; or (b) a commitment for an owners policy of title insurance on a current AL T A fonm issued by insurer, licensed to write
64. title insurance in Minnesota. Seller shall be responsible to pay, under either option, only those costs necessarY 10 prepare the
65. Registered Property Abstract or commitment Buyer shall, at Buyer's option, pay for either an attorney's title opinion or the title
66. insurance premium (for both an owners policy and any lenders policy and the examination fee, together with the costs for any
67. endorsements or other coverages requested by Buyer).
68. Buyer shall have ten (10) business days after receipt of the Abstract of Title, Registered Property Abstract or title insurance
69. commitment to provide Seller, or licensee representing or assisting Seller, with written objections to title. Buyer shall be deemed
70. to have waived any title objections not made within such ten (10) day period, except that this shall not operate as a waiver of
71. Seller's covenant to deliver a Warranty Deed, if a Warranty Deed is specified in this Purchase Agreement Seller shall use Seller's
72. best efforts to correct any title objections noted by Buyer and to provide mlrtetable title by the date of Closing. In the event Seller has
73. not cured the tiffe objections or otherwise provided marketable title by the date of Closing, Seller shall have an additional thirty (30) days
74. to correct the title objections or otherwise make title marketable. Buyer may waive title objections or other defects by written notice to Seller
75. or licensee representing or assisting Seller. In addition to the thirty (30) day extension, Buyer and Seiler may by mutual agreement further
76. extend the Closing date. Lacking such extension, either party may declare this Purchase Agreement terminated and neither party
77. shall be liable for damages to the other. Buyer and Seller shall immediately sign a cancellation of purchase agreement directing all
78. earnest money paid hereunder to be refunded to Buyer.
79. 7. POSSESSION: Seller shall deliver possession of !he property on tile date of ClosiRg. January 1, 2008
80. 8. REPRESENTATIONS AND WARRANTIES: See attached Addendum.
81. 9. TIME IS OFTHE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT.
82. 10. SELLER CERTIFIES THAT SELLER 0 DOES !Kl DOES NOT KNOW OF A PRIVATE SEWER SYSTEM ON OR SERVING
. __.u _.._ (checkono'-,. __ __ ___
83. THE PROPERTY: (If answer is DOES, see Private Sewer System Disclosure.)
84. 11. SELLER CERTIFIES THAT SELLER 0 DOES !Kl DOES NOT KNOW OF ANY WELLS ON OR SERVING THE PROPERTY.
-..-----...... (CheckOlle) --..--.--..---
85. (If answer is DOES, see Well Disclosure Statement)
86. 12. ADDENDA. Attached are (number) 1
87. 13. MISCELLANEOUS PROVISIONS.
88. (a) Survival. All of the warranties, representations and covenants of this Agreement shall survive and be enforceable after the closing.
a9. (b) Entire Agreement; Modification. This Purchase Agreement oonstiMes the complete agreement between the parties and
90. supersedes any prior oral or written agreements between the parties regarding the property. There are no verbal agreements
91. that change this Purchase Agreement and no waiver of any of its terms will be effective uniess in writing executed by the parties. ..
92. (c) Successors and Assigns. If this Purchase Agreement is assigned, all provisions of this Purchase Agreement shail be bmdlng
93. on successors and assigns.
94. 14.ACCEPTANCE DEADUNE. This offer to purchase, unless accepted sooner, shall be nuil and void at 11:59 p.m.,
95. June 6 2007 , and in such event all eamest money shall be refunded to Buyer.
Addenda which are made a part of this Purchase Agreement
MNCI:PA-2 (8/04)
Produced wrth ZipFormnl by RE FoonsNet, LLC 18025 Fifteen Mite Road, Clinton Township, Michigan4S035 www.zitltorm.com
blank.zfx
COMMERCIAL-INDUSTRIAL
PURCHASE AGREEMENT
96. Address 201 East Broadwav Monticello , MN 55362
97. Page 3
98.
99.
NOTICE
Zachary J. Adams
(Agent)
Wright Sherburne Real ty, :tnr:::
(Company Name)
Represents
Lesli.e DeLisi
Anthonv P DeLisi
100.
Represents
(Agent)
(Company Name)
101. /tJ(!f (jJ ~
(Seller's SignabJre) :
(~~ ~~, \2i,uh- ,
[0al0I
f' / loll) rJ
/ / {Date)
'5 -C\.-ol\
102. Anthony P DeLisi
(Seller's PrintEtd Name) .... F 0
...... . .
Ollie Koropchak
(BuYer'sPrfntedNa'nl) .
Executl.ve Directq1:' - HRA
"
103.
(Social Securtly Number or Fadl!lral Tax ID number. optional)
(MsrilaIStaI1Js)
(Social 5eaJrtty Ntanber or FederaJ Tax 10 numtler-optIonal)
(MatitalSlBUSI
104. ~.f..i.. f)..4i1~ "
( r'sSlgnatute)
</to / ()1
f I
(Date)
(Buyer's SIgnaIurI)
{Oldll)
105. Leslie DeLisi
[_ro_Namo) President DeLisi Inc.
(8uyer'sPrtnteclN8Ilef
106. '1--1- /77 b J-.3 )
(Social Sec:u.r1ty Numoer.or Fedlnl Tax 10 numoer. optional)
(Socl8~Sec:unIr.Nurnblr,OfFederal Tax ID nunber-OPtfofl8l)
107.
THIS IS A LEGALLY BINDING CONTRACT. IF NOT UNDERSTOOD, SEEK COMPETENT ADVICE.
MNCI:PA-3 (8/04)
Produced wtth ZipForm™ try RE FormsNet. LLC 18025 Fifteen MReRoao, Clinton Township, Mk:higan48035 WNW.zioform.com
,Iank.zli<
Page 4
Addendum to purchase agreement
Addendum to Purchase Agreement between parties dated May 7. 2007 pertaining to the purchase and
sale of the property at 20 I East Broadway Monticello, Minnesota.
1. REPRESENTATIONS AND WARRANTIES OF SELLER:
(a) There is no action, litigation, investigation, condemnation or other proceeding of any kind
pending or to the best of Seller's knowledge threatened against Seller or any portion of the
property. In the event Seller becomes aware of any such proceeding prior to closing, Seller
will promptly notifY Buyer of such proceeding.
(b) Seller will make available to Buyer on or before June 6, 2007, a true, correct and complete
copy of each lease applicable to the Property. Such leases are in full force and effect neither
Seller nor any tenant is, to the best of the Seller's knowledge, in default under any such lease.
There are no other leases or possessory rights regarding the Property except such leases as are
being provided to Buyer.
(c) The property is not within a flood zone.
(d) The buildings are entirely within the boundary lines of the Property.
(e) To the best of Seller's knowledge, the Property is free of Hazardous Substances as hereinafter
defmed and is not subject "Super Fund" type liens or claims by governmental regulatory
agencies or other third parties arising from the release or threatened release of Hazardous
Substances in, on or about the Property. Seller has not used the property in connection with
the generation, disposal, storage, treatment or transportation of Hazardous Substances. To the
best of Seller's knowledge, there are no aboveground or underground storage tanks located in
or about the Property; nor have any such tanks been located under, in or about the Property
that have been subsequently removed or filled except as otherwise set forth herein. To the best
of the Seller's knowledge, there are no inoperative wells on the property except as disclosed
on the Well Disclosure Statement provided Buyer. Seller has disclosed to Buyer all
environmental reports and studies with respect to the Property of which Seller is aware. As
used in this agreement, "Hazardous Substance" means any hazardous or toxic substance, waste
or contaminant including, without limitation, asbestos and polychlorinated biphenyls ("PCBs")
and any other substance, waste, mixture, compound, odor or emission, declared pr designated
hazardous or toxic by federal, state or local laws, rules or regulations.
(f) Seller acknowledges that Cedar St. Garden Center will cease to exist at this site as of date of
possession. Seller is not requesting relocation costs from the City of Monticello.
2. Right and Duty of Inspection: Buyer shall have the right and duty to inspect the Property or have it
inspected by a person of Buyer's choice at Buyer's expense.
Settlement is final: It is understood that Buyer accepts the Property "as is." Any warranties of physical
condition of the Property contained in this Purchase Agreement are void. The Seller has no further
responsibility or liability with respect to the condition of the Property. This provision shall survive
delivery of the deed or contract for deed.
Page 5
3. REPRESENTATIONS AND W ARRANTlES BY BUYER: Buyerrepresents and warrants to Seller
that buyer is duly incorporated and is in good standing under the laws of the state of Minnesota; that
Buyer is duly qualified to transact business in the State of Minnesota; that Buyer has the requisite
corporate poser and authority to enter into this Purchase Agreement and the Buyer's Closing Documents
signed by it; such documents have been duly authorized by all necessary corporate action on the part of
Buyer and have been duly executed and delivered; that the execution, delivery and performance by Buyer
of such documents do not conflict with or result on a violation of Buyer's Articles of Incorporation or
with or result in a violation of Buyer's Articles of Incorporation or Bylaws or any judgment, order or
decree of any court or arbiter to which Buyer is party; and that such documents are valid and binding
obligations of Buyer, and enforceable iri accordance with their terms. Buyer will indemnify Seller, its
successors and assigns, against and will hold Seller, its successors and assigns, harmless from, any ,
expenses or damages, including reasonable attorneys' feed, that Seller incurs because of the breach of any
above representations and warranties, whether such breach is discovered before or after closing.
4. MUTUAL INDEMNFICA TION: Seller and Buyer agree to indemnify each other against, and hold
each other harmless from, all liabilities (including reasonable attorneys' fees in defending against
claims) arising out of the ownership, operation or maintenance of the Property for their respective
period of ownership. Such rights to indemnification will not arise to the extent that (a) the party
seeking indemnification actually receives insurance proceeds or other cash payment directly
attributable to the liability in question (net of the cost of collection, including reasonable attorneys'
fees); or (b) the claim for indemnification arises out of the act or neglect of the party seeking
indemnification. If, and to the extent that, the indemnified party has insurance coverage, or the right to
make claim against any third party for any amount to be indemnified against, as set forth above, the
indemnified party will, upon full performance by the indemnifying party of its indemnification
obligations, assign such rights to the indemnifying party or, if such rights are not assignable, the
indemnified party will diligently pursue such rights by appropriate legal action or proceeding and
assign the recovery arid/or right of recovery to the indemnifying party to the extent of the
indemnification payaI)le made by such party.
5. ASSIGNMENT. Either party may assign its rights under this Purchase Agreement at any time prior
to the closing with the prior written consent of the other party. Any such assignment will not relieve
such assigning party of its obligations under this Purchase Agreement.
Page 6
6. CONTINGENCY. The HRA funding for this purchase agreement must be approved by the City
Council of Monticello. In the event funding is not approved by June 6, 2007 buyer and seller shall
immediately sign a "cancellation of purchase agreement" directing all earnest money paid hereunder
to be refunded to buyer.
7. PRORATIONS: Utilities costs will be prorated to the date of possession.
~~~
(Sel er) Leslie DeLisi
President DeLisi Inc.
t)~ ~cI\~~
(Buyer) Ollie Koropchak
Executive Director (HRA) ,
~ 0 )SPi.-
(SeHer) Anthony P. DeLisic. . f. O.
.
Wright County >> Property Search >>
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Property Search View Parcel Parcel Data
The property information daiabase is updated daily. Last updated:5/30/2007
I Parcel Data I
Property 10: 155-010-067010 Tax Year: 2007.
New Search
T ax Summary
Tax Statement
Assessment
Appraisal
S,lles Deta.1
Property Address:
201 BROADWAYE
MONTICELLO MN 55362
Municipality: CITY OF MONTICELLO
School Dist: 0882- MONTICELLO
Owner Name: (CONTRACT FOR DEED)
ANTHONY P & LESLIE DELISI
%DELISI INC
201 BROADWAYE
MONTICELLO MN 55362
Taxpayer Name & Address:
DELISI, INC
PO BOX 746
MONTICELLO MN 55362-0746
I Lot:
Block:
Deeded Acre: 0
Legal Description: LOTS 1,2,3,4&5 BLK B
I Section: 11
Township: 121
Range: 025
Plat Name:
ORIGINAL PLAT
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Detail
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.
HOME PAGE I YOUR COUNTY GOVERNMENT I HEALTH FINANCIAL & SOCIAL SERVICES I PUBliC SAFETY LAW & LEGAL
liCENSES & CERTIFICATES I PROPERTY ENVIRONMENT & PARKS I HIGHWAY MANAGEMENT & TRANSPORTATION
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C12006 Wright County All Rights Reserved Contact the Webmaster
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The property information database is updated daily. Last updated:5/30/2007
ITlIX Summary I
Property ill: 155-010-067010 Tax Year: 200~.
New Sear ell
Parcel Data
,
T ax Statement
AsseSSlllent
Appr,"sal
Sales Deta,l
Taxable Market Value 351,700
Total Improvement Amount 0
Tax Capacity Amount 6,284
Green Acres? No
Total Net Tax 9,542.47
Total Specials 2,067.53
Total Gross Tax 11,610.00
Total Adjustments 0.00
Penalty Collected 0.00
Interest Collected 0.00
Tax Collected 1st Half 4,771.24
Tax Collected 2nd Half 0.00
Special Assessments Collected I,03l}6-
Total Amount Unpaid C 5,805~
Prior Years Unpaid? Yes
· The Total Amount Unpaid does not include late payment penalties. If you are paying after the due date, call 763-
682-7572 or 763-682-7573 to acquire the total aroonot due. Late payments received without the peoalty will be first
applied to the peualty owed, leaving a tax aroount due.
New Search :: Parcel Data:: Tax Summary:: Tax Statement:: Assessment :: Appraisal :: Sales
Detail
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 refereoce purposes only. Although reasonable efforts are lakeo
to publish the most current property information, Wright Conoty does not guarantee accuracy of the material contained
herein and is not responsible for misuse or misinterpretations.
HOME PAGE I YOUR COUNTY GOVERNMENT I HEALTH FINANCIAL &. SOCIAL SERVICES I PUBLIC SAFETY LAW &. LEGAL
LICENSES &. CERTIFICATES I PROPERTY ENVIRONMENT &. PARKS I HIGHWAY MANAGEMENT &. TRANSPORTATION
SALARY DATA NOTIFICATION I SEARCH I ~ I SITE MAP I GOVERNMENT PORTAL I J;Mlill.
@2006 Wright County All Rights Reserved Contact the Web master
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Property Search View Parcel Assessment Summary
The property information database is updated daily. Last updated:5/30/2007
I Assessment I
New Search
Parcel Data
Tax Summary
T ax Statement
Appraisal
Sales Deta,l
Property ID: 155-010-067010
Tax Y ear:20E7 .
Values 1 2 11 3 T 4 II 5
Estimated Land Market 217,600
Estimated Building 134,100
Market
Estimated Machinery 0
Market
Excluded Market 0
Total Estimated Market 351,700
Land Limited 0
Building Limited 0
Total Limited 0
Classifications
COMM
Property Type LAND &
BLDGS
Homestead Status NON-
HOMESTEAD
Exempt Status Not Exempt
New Search :: Parcel Data :: Tax Sununary :: Tax Statement :: Assessment :: Appraisal :: Sales
Detail
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,
HOME PAGE I YOUR COUNTY GOVERNMENT I HEALTH FINANCIAL & SOCIAL SERVICES I PUBLIC SAFETY LAW & LEGAL
LICENSES & CERTIFICATES I PROPERTY ENVIRONMENT & PARKS I HIGHWAY MANAGEMENT & TRANSPORTATION
SALARY OATA NOTIFICATION I SEARCH I FAQ'S I SITE MAP I GOVERNMENT PORTAL I EMAIL
@2006 Wright County All Rights Reserved Contact the Webmaster
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Wright County )) Property Search ))
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Property Search View Parcel Parcel Data
The property information database is updated daily. Last updared:5/30/2007
I Parcel Data I
Property ill: 155-010-067060 Tax Year: 2007.
New Search
T ax Summary
Tax Statement
Assessment
Appraisal
Sales Detail
Property Address:
249 BROADWAY E
MONTICELLO MN 55362
Municipality: CITY OF MONTICELLO
School Dist: 0882- MONTICELLO
Owner Name: (CONTRACT FOR DEED)
ANTHONY P & LESLIE DELISI
%DELISI INC
201 BROADWAYE
MONTICELLO MN 55362
Taxpayer Name & Address:
DELISI, INC
PO BOX 746
MONTICELLO MN 55362-0746
Lot:
Block:
Section: II
Township: 121
Range: 025
Plat Name:
ORIGINAL PLAT
Deeded Acre: 0
Legal Description: LTS 6,7,8& 9 BLK B
New SeaTch :: Parcel Data:: Tax Summary :: Tax Statement:: Assessment :: AppTaisal :: Sales
Detail
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.
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Property Search View Parcel Tax Summary
The property information database is updated daily. Last updated:5/30/2007
ITax Summary I
Property 10: 155-010-067060 Tax Year: 2007.
New Search
Parcel DaM
T ax Statement
Assessment
AppraIsal
Sales Detail
Taxable Market Value 178,400
Total Improvement Amount 0
Tax Capacity Amount 3,568
Green Acres? No
Total Net Tax 5,403.19
I Total Specials I 1,014.81
I Total Gross Tax I 6,418.00
I Total Adjustments I 0.00
Penalty Collected 0.00
Interest Collected 0.00
Tax Collected 1st Half 2,701.60
Tax Collected 2nd Half 0.00
Special Assessments Collected 507.40
)
Total Amount Unpaid ~09.00/ }'
Prior Years Unpaid? Yes
· The Total Amount Unpaid does not include late payment penalties. If you are paying after the due date, call 763-
682-7572 or 763-682-7573 to acquire the total amount due. Late payments received without the penalty will be first
applied to the penalty owed, leaving a tax amount due.
New Search :: Parcel Data:: Tax Summary:: Tax Statement :: Assessment :: Appraisal :: Sales
Detail
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.
HOME PAGE I YOUR COUNTY GOVERNMENT I HEALTH FINANCIAL & SOCIAL SERVICES I PUBLIC SAFETY LAW & LEGAL
LICENSES & CERTIFICATES I PROPERTY ENVIRONMENT & PARKS I HIGHWAY MANAGEMENT & TRANSPORTATION
SALARY DATA NOTIFICATION I SEARCH I ~ I SITE MAP I GOVERNMENT PORTAL I EMA!!.
@2006 Wright County All Rights Reserved Contact the Webmaster
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Wright County >> Property Search >>
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Can't find it'? Help ns improve...
Home >>Prooerty. Environment & Parks>> Propertv>> Prooertv Search>> Results List>> Assessment Summary
Property Search View Parcel Assessment Summary
The property information database is updated daily. Last updated: 5/30/2007
I Assessment I
Property ID: 155-010-067060 Tax Year: 2007.
New Search
Parcel Data
Tax Summary
Tax Statement
Appr alsal
Sales Detail
Values I I 2 II 3 I 4 I 5
Estimated Land Market I 172,600 I
Estimated Building I 5,800 I
Market
Estimated Machinery I 01
Market
Excluded Market I 01
Total Estimated Market I 178,400 I
Land Limited 0
Building Limited 0
I Total Limited I 0
ClassIfications
COMM
Property Type LAND &
BLDGS
Homestead Status NON-
HOMESTEAD
Exempt Status I Not Exempt I
New Search :: Parcel Data :: Tax Summary :: Tax Statement :: Assessment :: Appraisal :: Sales
Detail
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.
HOME PAGE I YOUR COUNTY GOVERNMENT I HEALTH FINANCIAL & SOCIAL SERVICES I PUBLIC SAFETY LAW & LEGAL
LICENSES & CERTIFICATES I PROPERTY ENVIRONMENT & PARKS I HIGHWAY MANAGEMENT & TRANSPORTATION
SALARY DATA NOTIFICATION I SEARCH I FAQ'S I SITE MAP I GOVERNMENT PORTAL I EMAIL
Q 2006 Wright County All Rights Reserved Contact the Webmaster
http://www.co.wright.mn.us/department/audtreas/proptax/results.asp?pid= 1550 10067060&... 5/30/2007
4/1112007
201 E Broadway St, Monticello, MN 55362-9317
Customer Full Report, CommerciaUMixed Use, MLS#: 3348975
MLS Area: 341 - Wright County (Except Buffalo)
CMU Style: Industrial/Warehouse, Other, RetaillShopping Center
Current Use: Commercial
Const Status: Previously Owned
Total Units: 1
Foundation Size:
Building Finished SqFt:
6,494
6,494
--'"~.
"'^"" ~. MapPoinl"
-"". . '. (J.' ",4",
",'" "".. .... ". ..~,' .
~ S, 25'_.
~ ., ~J- .....
:! j~: Sf;s{,. rl2D 1 B~a~~ay E
-.' ~.Ilio,.
~, ~ ~ -~ ~~
fSJ':, ~ .,
...~ :i .,. # : .,
J l' /:.."
J//" ...1fo .
~--jf' 7thstE """F
~d::""sootCotlJ<<ZOO6liUl!q.~/...TtI'''~I,...
Year Built:
Acres:
Lot Dimen:
1970
1.12
see plat
General Property Information
Legal Description: Lenghty
County: WRIG - Wright
School District: 882 - Monticello, 763-271-0300
ComplexlDev/Sub:
_Lot Description:
oad Frontage:
oning:
Accessibility:
LakelWaterfront:
Owner is an Agent?:
Public Remarks:
Business/Commercial
None
Lake Name:
Status: Active
List Price: $459,900
Map Page: 31 Map Coord: 02
Directions:
94 to Hwy 25 North, East on Broodway
to Garden Center on Left
TAX INFORMATION
PropertylD: T155010067010
Tax Year. 2007
Tax Amt: 14,963.00
Assess Bal: 0.00
Tax w/assess: 14,963.00
Assess Pend: No
Homestead: No
Owner Occupied: Yes
No
1.12 acres of prime commercial land on high traffic mainstreet, sale price includes land and
buildings, 6494 sq ft building currently used as garden retail center. great location for
possible redevelopment, traffic counts are high wi great fronlage'
Structure Information
Forced Air
Na1ural Gas
Heat:
Fuel:
AirCnd:
Garage Stalls:
Other Parking:
Parking Char.
Utilities:
Miscellaneous:
Sale Includes:
Appliances:
No. of Ranges:
No. of Refrig:
Basement:
Pool:
Shared Rooms:
AAmenitieS-Shared:
',.Amenities-Unit:
0.00
o
Other
Building, Land
Exterior:
Fencing:
Root
Water:
Sewer:
Wood
tnfonnation Deemed Reliable But Not Guaranteed. @2007 Regional MLS of Minn., Inc. All Rights Reserved.
Page 1 of2
City Water - Connected
City Sewer - Connected
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5L. Consideration of a reauest from the Housing and Redevelopment Authority ffiRA)
reauesting the City Councill!rant a conceptual approval of a loan to the BRA for
Durchase of the DroDertv located at 201 East Broadwav. (O.K.)
A. Reference and backl!round:
The HRA is requesting a loan from the City for purchase of the Cedar Street Garden Center
located at 201 East Broadway. This 1.12 acre parcel includes a 6,494 sq. ft. facility and lies
within the boundaries of Downtown Redevelopment TIF District No. 1.22. The property was
determined to be "structurally substandard" according to the 1997 Minnesota Statutes, the year
the District was certified.
At the HRA meeting in April 2007, the owner and an agent made a presentation including an
asking price of$459,900. The commissioners tabled the item to their May meeting in order to
gather more information.
Additional information gathered indicated the asking price for the Garden Center in 2006 was
$690,000. In 2006/07, the HRA hired a local attorney to serve as a facilitator to negotiate
offers to purchase two properties located within Block 52 (Froslie (previous church/clinic) and
Springborg (previous Johnson warehouse). In those negotiations, the HRA determined their
offers by using the highest commercial land values plus 15% or $15.3065 per square foot.
They raised their offers to $17.50 per square foot and after eight months of unsuccessful
negotiations, the HRA determined they were no longer interested in those properties.
Using the same land value analogy, the $459,900 asking price for the Garden Center was
$9.4266 per square foot. At the May HRA meeting, the commissioners approved a motion to
offer $450,000 ($9.2237 per sq ft) for the Garden Center subject to no relocation benefits
(going out-of-business and they approached the HRA) and pending approval of funding. The
executed Purchase Agreement is contingent UDon fundinl! annroval bv June 6. 2007. and has a
closing date ofJulv 16. 2007.
FUNDING: Prior to their motion in May, the commissioners discussed their source ofrevenue
to purchase the said property. The TIF Analysis completed by Ehlers & Associates in 2006
projects $1.4 million available within the 25% pooling rule over the life of District 1-22 (2024).
The HRA does not have cash readily available within TIF District 1-22 (25% pooling rule) and
the HRA General Fund is land rich and cash poor. The purchase of the 88 acres from John
Chadwick (Otter Creek Crossings) and the annual payments on the contract for deed
(remaining 32 acres) are paid from the HRA General Fund.
1
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City Council Agenda - OS/29/07
Therefore, the commissioners are requesting a conceptual approval of a loan in the amount of
$450,000. At the June 11 Council meeting, the Council will be asked to approve a resolution
to authorize entering into a Loan Agreement between the City and the HRA. The Loan
Agreement will outline the terms and conditions of the loan. In talking with the Finance
Director, an interest rate of approximately 5% is anticipated based on current investments by
the city. Annual payments by the HRA to the City will be from TIP District No. 1-22. The
HRA agreed to purchase the Garden Center property because of the fair market price and it
sends a message that the HRA/City is interested in redevelopment of the downtown but at fair
market price.
?
B.
Alternative Action:
1.
A motion to grant conceptual approval of a loan in the amount of $450,000 to the
:;~~~~ :d~~::;:~:~t:::~~i :as~:::~~:~ity<3~Onti~I~O ~the ~
. c.. K '1,.t> ~
A motion to deny granting conceptual approval ofa loan in the amount of $450,000 to
the HRA. State reasons.
2.
C. Recommendation:
. The City Administrator, Finance Director, and Economic Development Director recommend
Alternative No.1. The negotiated purchase is a fair market price, it sends a message the
HRAlCity is interested in downtown redevelopment, no relocation benefits,and allows the HRA
to move forward with preparation of the Loan Agreement and preparations for a closing on July
16,2007.
D. SUDDOrtinl!: Data:
Excerpt from TlF 1-22 Analysis and site information.
2
HRA Agenda - 06/06/07
6. Consideration to acceDt the resilmations of BRA Commissioners Steve Andrews and
Darrin Lahr.
A. Reference and backl!round:
The HRA and Council have received resignation letters from HRA Commissioners Steve
Andrews and Damn Lahr. I will try to look back to find their years of service on the HRA and
in Damn's case the EDA also. In addition, to accepting their resignations as a housekeeping
item, I would like to discuss a time and date for a social event. Since as an HRA, we have
experienced some fun times together, my thought was to meet at a local place (JP's, River Inn,
etc) for a social gathering. No plaque but maybe a gift certificate to Crostini's for each. I need
to check city policies and source of dollars. Actually, maybe we need a "going away party for
the HRA" with the upcoming merger to the EDA. The HRA was formed when the City
Council in November 1970 adopted a resolution declaring the need for an HRA, the Bylaws,
and appointed its first commissioners. Arve Grimsmo is the only remaining first appointed
commissioner. Let's discuss this.
B. Alternative action:
1. A motion to accept the resignation of Steven Andrews and Damn Lahr.
C. Recommendation:
This is a housekeeping item and the Council received a copy of the resignations in their May
29, 2007 agenda.
D. SUDDortinl! Data:
Letters of Resignation.
1
Message Page 1 of 1
Ollie Koropchak
. From: Bubul, Stephen J. [sbubul@Kennedy-Graven.com]
Sent: Monday, June 04, 2007 5:18 PM
To: Ollie Koropchak
Subject: HRA commissioner recognition
Ollie: Based on our research, we advise against a monetary benefit for outgoing HRA commissioners, such as a
gift certificate. Even though no per diems have been paid to date, any amount provided now would probably be
considered an illegal gift because it is "after the fact." The rules regarding public purpose for expenditure of public
funds are fairly strict, and make it difficult to provide the kinds of recognition you mentioned.
Instead, you might consider a plaque, or naming something after the commissioners (think of some of the HRA
projects over the years). You could also hold a dinner, but attendees would need to pay for their meals.
Let me know if you have other questions.
Stephen Bubul
Kennedy & Graven
470 U.S. Bank Plaza
Minneapolis, MN 55402
612-337-9228
S This notice is required by IRS Circular 230, which regulates written communications about federal tax matters between tax
advisors and their clients. To the extent the preceding correspondence and or any attachment is a written tax advice
communication, it is not a full "covered opinion." Accordingly, this advice is not intended and cannot be used for the
purpose of (1) avoiding penalties that may be imposed under the Internal Revenue Code of 1986, as amended, or (2)
promoting, marketing, or recommending to another party any matters addressed herein.
This message (including any attachments) is from a law firm and may contain confidential client information or an attorney-
client communication that is confidential and privileged by law. The information is intended only for the use of the individual
or entity to whom it is addressed. If you are not the addressee or the employee or agent responsible to deliver this a-mail to its
intended recipient, please delete this message (and any attachments) without any review, distribution, or copying and notify
the sender of the inadvertent transmission.
•
6/5/2007
Steve Andrews
20015 County Rd 14
Big Lake Twsp, MN 55309
May 16, 2007
Ollie Koropchak
505 Walnut St. Suite #1
Monticello, MN - 55362
Dear Ollie:
I am submitting my resignation from the HRA due to the fact there is a residency
requirement to sit on the HRA and I have moved 100 feet into Big Lake Township, to
a home located on the river across from Monticellds Ellison Park.
rve enjoyed being a member of the HRA and I would like to be considered if any
community board positions become available where my mailing address can
be Big Lake, like membership currently is for the EDA membership, rve spoken
with Wayne Mayer and the Fiber Committee and 111 still remain on the Fiber Optic
. group as a non-resident member. I am willing to continue to sit on the group as the
HRA proxy designee/representative if its permitted and/or desired or you11 need to
appoint another active HRA/EDA member to the group,
I appreciate the friendships that have developed over the years during my service
with the group, Weve all had a lot of skin in the game at times as weve worked on a
vision for Monticello, Even though rve had no monetary gain from my participation
on the HRA I sure have benefited from participating with the group. You and the
HRA members make up a class act and the City is a better place because of your
involvement. Monticellds a great community and continues to be"my kind of place',
Sincerely,
Steve Andrews
--
May 17, 2007
Honorable Mayor Clint Herbst, City Council Members
City of Monticello
505 Walnut Street Suite 1
Monticello, MN 55362
Dear Clint, et aI.,
It is with regret that I must resign my commission on the HRA and EDA. Due to
time constraints, I am unable to provide the level of energy and attention that the
position requires and quite frankly that the City deserves.
It has been an honor to work with the excellent city staff, elected officials, and our
various business partners over the years. I believe when properly engaged
commissions like the HRA and EDA have the ability to "share the load" and help
expedite progress toward the vision of the city. I am proud to have been a part of
that progress and thank you for the opportunity.
I also want to thank you for your time and patience over the years, at times,
making public policy is messy - and that's okay. I continue to enjoy our
community and am always proud to say - "I live in Monti!"
Sincerely
~~~CJJ-
Darrin Lahr
125 E. 4th SI.
Monticello, MN 55362
763-295-2491
cc Ollie Koropchak, Economic Development Director
Jeff O'Neill, City Administrator
BRA Agenda - 06/06/07
7. Consideration to authorize navrnent of BRA bills.
The HRA has received no invoices for payment. For your information, is a copy of a
reimbursement check from Conroy.
No action required.
1
STEPHEN R. CONRO
AlTORNEY AT LAW
POBOX 999 .,.
MONTICELLO. MN 55362-o9l!9
DATE 5-\\-0\
> PAY ;1 I \' -H
~ b~~~OF Li-t'! Dl- mOn
rb""\-V- hve... ce/'ot)
II =Iri,NA
-~~
CD
$ L/5 -
7527
17-119106367
0001022463
J
DOUARS ED ~~.:.~.
FOHOi e.t oy"'.\- reW
11'000000752711' I:oq WOOD l. ql:
~l~~~
000 W 2 21,1;311'
City of Monticello
505 Walnut Street
Monticello, MN 55362
Dear Ollie:
Enclosed is a check payable to the City of Monticello in the amount of $45.00, which represents
overpayment of the April invoice. The total amount billed was $75.23. I received check no.
88793 in the amount of$120.23.
J.f' ~
,.I! cI"--.-.v.",_ .
Sincerely,
~J-'<;J., I;,~~.,
crt;. /
Stephen R. Conroy
01:)~O
SRClbv
Enclosure
~~f) S ').,:'1.
\,,> ..-- ~ \.t
'1A':b
..
BRA Agenda - 06/06/07
8. Economic DeveloDment ReDort.
a) HRAlEDA merger - Council Members Wayne Mayer and Tom Perrault, HRA Vice Chair
Bill Fair, EDA Chair Bill Demeules along with staff and Attorney Bubul are scheduled to meet
on Wednesday, June 6,5:00 p.m. prior to the regular 6:00 p.m. HRA meeting. The purpose of
the meeting is to discuss the intended powers and organizational structure of the EDA.
b) SCSU Feasibility Study - Approximately 35 individuals attended the community meeting on
May 22 to hear the presentation by SCSU Student Lundgren. The Marketing Group has a
meeting scheduled for June I to assess the feedback forms and to begin to define a plan
identifying Monticello as a future site for the bio-science industries based on recommendations.
It was suggested by Anoka-Ramsey Community College Representative that O'Neill and
myself meet with the Eden Prairie Economic Development Director to discuss how Eden Prairie
developed into a high-tech and 40+ biotech company location. A Bio-Science article has been
written for the June City Newsletter.
c) Fiber Optics Finance meeting is scheduled for June II at the bond attorney's office and
Fiber Optics Committee is scheduled to meet June 20.
d) Maus Foods building along Highway 25 has been purchased by Standard Iron & Wire
Works. They plan to relocate their corporate headquarters from the Dundas Road location to
this facility when their lease expires. In addition to Standard Iron's needs, they will lease-out
the remaining 20,000 sq ft of the Maus building.
e) Leads: 5,000-8,000 sq ft space to lease for manufacturing.
40,000 sq ft warehouse/office, 8-10 employees, 3 acres. (Talk about criteria)
f) Thanks to those who attended the Karlsburger Open House on May 10. A photo book was
mailed to them.
g) Our next visit to schedule is to Washburn Computer Group (previous Clow building) along
Chelsea Road.
h) HRA and Cedar Garden Center have an executed Purchase Agreement pending Council
approval of a loan to the HRA. (Conceptual approval 5/29/07) Also working with a
developer interested in redevelopment of different downtown block.
i) Walker In-Store - Purchase and Development Contract between the HRA and WRE, Inc. is
waiting for Mr.Walker to fill in two blanks: Anticipated construction commencement date and
closing date not later than .........
j) According to the West Sherburne, Big Lake is proceeding to purchase about 50 acres of
land extending their current industrial park. They have inquired a couple times as to
Monticello's interest and projects in our park.
k) Green house at 6th Street and Elm Street - In conversation with Mike Cyr since the May
HRA meeting, Mike has facilitated getting Kevin Stumpf and Mr. Rollings in conversation to
potentially negotiate a purchase of the property. In my conversation with Mr. Rollings, it is their
intent to follow through with their approved conditional use permit for development stage PUD
and preliminary plat (June 26, 2006).
1
BRA Agenda - 06/06/07
I) Lyle Trunnell- I've been unable to contact Mr. Trunnell about the HRA's May motion of no
interest to purchase the property at 301 East Broadway. The phone number I have is incorrect
and it is an unlisted number. He has not called.
m) Downtown Redevelopment - Mayor's idea and response by Attorney Bubul.
n) Criteria for $1.00 per square foot land. Attached FYI.
2
Page 1 ofl
Ollie Koropchak
From: Clint Herbst Outside
Sent: Thursday, May 17, 2007 7:06 AM
To: Ollie Koropchak
Cc: Wayne Mayer Outside; Brian Stumpf Outside; Tom Perault; Susie Wojchouski Outside; Jeff O'Neill
Subject: Re: downtown funding option
Certainly it would be difficult, other wise it would have already been done.
I feel that this is truly "Economic Development" and should be given a high priority. Let's try to
work on some sort of game plan to bring back to the council for their input.
Thanks for getting the ball rolling.
Clint
----- Original Message ----
From: Ollie Koropchak <Ollie.Koropchak@ci.monticello.mn.us>
To: Clint Herbst <Clint.Herbst@ci.monticello.mn.us>
Sent: Wednesday, May 16,200711:16:44 AM
Subject: downtown funding option
On May 9, I asked the HRA Attorney and financial consultant about your question: If they were aware of a
funding source for downtown redevelopment that is structured with current property owners or other's buying
shares of the project as an investment?
Response from Attorney Bubul: I haven't been involved in a project where current owners or others are
investors, but there's no reason they can't. You still need an experienced developer to put it together. My guess
is that this would be difficult.
I have not heard from Mark Ruff, Ehlers.
Oilie
Luggage? GPS? Comic books?
Check out fitting gifts for grads at Yahoo! Search.
5/17/2007
1
2007
MONTICELLO BUSINESS CENTER
OTTER CREEK CROSSING
PREFERRED PACKAGE CRITERIA
PREFERRED PRICE - $1.00 PER SQUARE FOOT UP-FRONT (CASH)
NO 2005 IMPROVEMENT ASSESSMENTS, NO TRUNK FEES
*********
PREFERRED MEASURES*
Jobs per acre:
8 full-time permanent jobs/acre
(5,445 per sq ft per job)
Average hourly wage:
At least $16.00 ph excluding benefits
Building to land ratio:
25% building: 1 acre land (10,890 sq ft: 43,560 sq ft)
Minimum size lot
2.5 acres (case by case)
Building Market value:
At least $50 per sq ft.
* MUST MEET ALL MEASURES
**********
FORMULA FOR MAXIMUM ACREAGE TO SELL ONE USER
(Property not intended for speculation)
1) Building size X 2 = max area for building 2) max area for building X 2 = area of parking. 3) 1 + 2 X
15% =? 4) 1 + 2 + 3 = Total maximum acreage to sell one user.
EXAMPLE: 1) 50,000 X 2 = 100,000 sq. ft. 2) 100,000 x 2 = 200,000 sq ft. 3) 100,000 + 200,000
= 300,000 sq ft x .15% = 45,000 sq ft. 4) 100,000 sq ft + 200,000 sq ft + 45,000 sq ft. = 345,000 sq
ft or 7.92 acres.
EXCESS LAND PRICE - $3.00 PER SQUARE FOOT PLUS TRUNK FEES
"Excess Land" means the difference between maximum acreage less preferred acreage. The "Excess
Land" is sold at market value. Developer pays for trunk fees on "Excess Land" at the current rate at
time of expansion or closing. No assessment for 2005 improvements and no park fees. "Excess Land"
subject to five-year re-verter clause.
EXAMPLE: 7.92 acres less 4.59 acres = 3.33 acres or 145,055 sq ft.@ $3.00 per sq ft = $435,165.
******************************************************************************
2007 TRUNK FEES PER ACRES - INDUSTRlAL
Trunk Storm Sewer Fees: (Net acre)
Alternative Ponding Area
$3,245
$8,176 (not city-owned property)
Trunk Sanitary Sewer
$3,065
Trunk Water
$2,267
TOTAL PER ACRE
$8,577
TOTAL PER ACRE WITH PONDING
$16,753
2
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Ollie Koropchak
. From: Ollie Koropchak
Sent: Monday, June 04, 2007 9:48 AM
To: 'dontomann@ultramc.com'
Cc: Jeff O'Neill; Clint Herbst; Angela Schumann; 'Rusty Fifield'
Subject: Follow-up from Marketing Graup meeting of Friday - Ollie's check list
1. Call Sherri at Anoka-Ramsey for suggestions on potential consultant with expertise and leadership to hire
(use model of Fiber Optics)
2. Check fund source of HRA and request HRA for funds to finance consultant fees.
3. Arrange meeting with EDD in Eden Prairie: Jeff, Lynn, Ollie, and maybe Paul.
4. Need to be included in Comp Plan Update: Meet with Rusty.
5. Need to preserve land for potential training facility with freeway accessibility/visibility and bio-science park.
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6/4/2007
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