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EDA Agenda 01-20-1998 , II . AGENDA MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, January 20, 1998 ~ 5:00 p.m. City Han MEMBERS: Chair Ron Hoglund, Vice Chair Barb Schwientek, AssistantTreasurer Ken Maus, Clint Herbst, Roger Carlson, Bill Demeules, and Darrin Lahr. STAFF: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak. GUESTS: Eric or Carl Bondhus, Lake Tool, Inc. Chad Vitzthum, Marquette Bank 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE OCTOBER 21, 1997 EDAMINUTES. 3. CONSIDERATION TO REVIEW FOR APPROVAL THE PRELIMINARY GMEF LOAN APPLICATION FROM LAKE TOOL, INC. 4. CONSIDERATION TO APPROVE OR DENY APPROVAL OF GMEF LOAN NO. 014 FOR LAKE TOOL, INC. 5. CONSIDERATION TO REVIEW FOR APPROV ALIDISAPPROV AL THE DMRF APPLICATION (REIMBURSEMENT FEES) FOR 103 PINE STREET. 6. CONSIDERATION OF EXECUTIVE DIRECTOR'S REPORT: a) Annual meeting - Tuesday, February 24, 1998, 7:00 p.m. b) Downtown Revitalization Design Workshop Payment. c) Annual appointment of ED A Commissioner. d) GMEF No. 004. 7, OTHER BUSINESS. 8. ADJOURNMENT. . . . Minutes Monticello Economic Development Authority Tuesday, October 21,1997 - 7:00 p.m. City Hall MEMBERS PRESENT: Chair Ron Hoglund, Vice Chair Barb Schwientek, Assistant Treasurer Ken Maus, Clint Herbst, Roger Carlson, Bill Demeules, and Darrin Labr. STAFF PRESENT: Ollie Koropchak, Executive Director STAFF ABSENT: Rick Wolf steller and Jeff O'Neill. GUESTS: Rita Ulrich, MCP Manager and Pam Campbell, Design Chair. 1. Call to order. Chair Hoglund called the EDA meeting to order at 7:00 p.rn. 2. Consideration to approve the July 22. 1997 EDA Minutes. Bill Demeules made a motion to approve the July 22, 1997 EDA minutes. Seconded by Roger Carlson and with no corrections or additions, the motion was approved. Yeas: Demeu1es, Carlson, Hoglund, Schwientek, and Lahr. Nays: None. Abstention: Herbst and Maus (not present at July meeting). 3. Consideration to review for approval/disapproval the DMRF application for 112 East Broadway. EDA members accepted the recommendation of the MeP-Design Advisory Team. Recommendation was to table for consideration by the future owners as the current owner is negotiating to sell the business and property at 112 East Broadway. 4. Consideration to review for approval/disapproval the DMRF application for 103 Pine Street. EDA members reviewed the application for funding for facade improvements at 103 Pine Street. Applicant Kathy Froslie. Some confusion existed among commissioners as to the true front, rear, and side facade of the building as described for funding. Maus recommended in the future the front facade be consistent with the city designated street address. Hoglund, a member of the Design Team, informed commissioners that Froslie consulted the recommended preservation consultant for suggestions. Entry, roofline and window changes are proposed with respect to the era the building was constructed. 1 . . . EDAMINUTES OCTOBER 21, 1997 The commissioners found the application to be consistent with the DMRF purpose and criteria where applicable. Barb Schwientek made a motion to approve DMRF No. 001 in the amount of $2,500 for front facade and signage improvements, $2,500 for rear facade improvements, and $710 for side facade improvements at 103 Pine Street (Going-In-Style, Kathy Froslie). Disbursal of the matching grant funds in the amount of$5,71O subject to compliance ofthe facade designs as recommended by the MCP Design Advisory Team, compliance of codes and ordinances by the Building Official, and evidence of payment of approved improvement costs. DMRF No. 001 becomes null and void July 21, 1998 if funds are not disbursed. Clint Herbst seconded the motion and with no further discussion, the motion passed unanimously. 5. Consideration to review for a,pprovaVdisapproval the DMRF application for 121 West Broadway. EDA members reviewed the application for funding for facade improvements and fee reimbursement at 121 West Broadway. Applicant Steve Johnson. Hoglund reported that the Design Team reviewed two front facade designs: One consisted of an all new brick and the second consisted of panel inserts. The applicant utilized the recommended architect for assistance and both designs met the design guidelines. Panel inserts are economically more feasible than full replacement; therefore, panel inserts were acceptable to the design team. The rear facade improvement included a painted mural. The design team will review the mural sketches when available. The applicant proposes to make appropriate treatment to the east side facade which is proposed to consist of a painted tum-of-the-century sign. The painted sign may not be in coIlfoJ'fMD-ce because of size and perhaps creates to many signs. The MCP continues to wo* with Steve Grittman to amend the sign ordinance within the CCD. The proposed imPrpvements will be done in two phases in 1997 and 1998. p~ Lahr made a motion to approve DMRF No. 002 in the amount of $2,500 for front f~~~4e and signage improvements, $2,500 for rear facade improvements, $1,000 for east ~,q~ facade improvements, and $200 for fee reimbursement at 121 West Broadway. Pi~\1Yfsal pfthe matching grant funds in the amount of $6,000 and fee reimbursement of $200 subject to compliance of the facade designs as recommended by the MCP Design Advisory Team, compliance of codes and ordinances by the Building Official, and evidence of payment of approved improvement costs. DMRF No. 002 becomes null and void July 21, 1998 if funds are not disbursed. Clint Herbst seconded the motion. EDA members found the application to be consistent with the DMRF purpose and criteria where applicable. Without further discussion, the motion passed l1n:mimously. 2 . . . EDA MINUTES OCTOBER 21, 1997 6. Consideration of a request for funding to provide a one-day training session for members ofthe Design Advisory Team and others. MCP Design Chair Pam Campbell requested $1,000 from the EDA to provide a one-day training session for members of the design team and other designated commissioners. The Design Committee did not budget this expenditure in their 1997 Budget. The RFP from Bob Claybaugh had a cost of$l ,500 attached for the one-day session. The Design Committee would pick-up the remaining $500. Claybaugh is a historical rehabilitation and commercial architect who understands economic ramifications and is capable of assisting with determinations of what lies underneath existing facades. The session would inform the advisory team as to their responsibilities and how to prepare reports with recommendations to the City Council. Barb Schwientek made a motion authorizing the expenditure of$l,OOO from the $200,000 DMRF appropriations. Bill Demeules seconded the motion and with no further discussion, the motion passed unanimously. 7. Consideration to review for discussion and to measure the interest-level to construct an industrial buildini for lease. EDA members reviewed the explanation from Mark Ruff relating to an EOA owned building leased to private business. The explanation was requested as perhaps a means to assist m the recruitment of new industrial business and the idea was first suggested in 1974 by th~ IDC. Some EOA members had concerns that the principal and interest payments may Wain the EDA funds and how a spec building would cashflow ifvacant. Some felt thi& )Vas best left to the private sector. Members asked when is an HRA or EOA tax ex~wpt'? They requested further defining of construction numbers and square footage reqwr.... ements, land costs, loan requirements and cashflow. Provide examples using two dq*H~ns: Tip-up panel and steel. 8. ~er business: EpA members received a copy of the Monticello Downtown Revitalization Loan Program offered by First National Bank of Monticello. . 9. AQ,joumment. The EOA meeting adjourned at 8:30 p.m. ':-) ~ \<: ll\ ~ Ollie Koropchak, Executive Director 3 I II . EDA AGENDA JANUARY 20, 1998 3. Consideration to review for approval the preliminary GMEF loan application from Lake TooL Inc. A. Reference and Background: GMEF Loan Request: $100,000 M&E loan, seven years. Project Summary: Lake Tool, Inc., a tool shop which-builds plastic inject-ion melds, is owned by Carl, Eric, and Denni$ Bondhus. T.J. Martin, Inc., a Minnesota corporation, constructed and leases the new 9,000 sq ft manufacturing/office facility located at 1347 Dundas Circle to Lake Tool. The company relocated. and moved. into the new location in September of 1997. The City provided. l'lF assist-ance in the amount of $37 ,-9D{) for land acquisition and site improvem~ts. TIF District No. 21 was certified by Wright County on December 6, 1996 and the construction project was to create five new jobs within two years at an average annual wage of $40,000. Since application ofTIF in October, 1996, Lake Tool employment has grown ft-em two to seven satisfying the TIF job requirement. The company originally planned to apply for the GMEF at time of construction; however, elected to purchase machinery and equipment at a later date. The machinery will be purchased by T.J. Martin, Inc., leased to Lake Tool, Inc. and guaranteed by the owners. The total number of employees today is seven--exc1uding the owners, and the company plans to hire five new employees at an annual average wage of $30,000-$40,000 within two years. The purchase ofthe following machinery will cause the company to be more viable, increase effIciency, and provide job security. Uses of Funds SuperMax Max-4 Rebel CNC Bedmill Mitsubishi EX8 CNC EDM Fadel VMC3016 CNC Bedmill and miscellaneous tooling 2 - Chevalier Accugrind Super Precision Surface Grinders TOTAL USES OF FUNDS $11 0,-000 $130,000 $ 94,000 $ 16,000 $350,000 1 I .. . EDA AGENDA JANUARY 20, 1998 Sources of Funds Marquette Bank SBA(7a)* GMEF Equity TOTAL SOURCES OF FUNDS $1-00;000 $153,750 $ 87,500 $ 8,750 $350,000 * If the SBA(7a) program is not approved, Marquette's Lease Financing Companywi11 provide the funding. GREATER MONTlCEL-LQENTERP-RlSE--FUND Gl IIDELINES PUBLIC PURPOSE CRITERIA: Must comply with four or more of the criteria listed below, criteria #1 being mandatory. 1. Creates new jobs: Seven jobs currently, five additional (37.5 hpw) jobs within two years. Annual average wage, $30,000-$40,000. 2. Increases the community tax base: The purchase of machinery does not increase the tax. base. 3. Factors: To assistan--existingindustrial-businessto improve their operations. The company's business environment meets the City's industrial objectives: Nature of business, service and product, no adverse environmental effects, the comprehensive plan and zoning policy. 4. U sed as a secondary-souroe to-supplement conventional financing: The GMEF will be the secondary source of funding to the lender, Marquette Bank. 5. Used as gap financing: Used as gap financing (see Letter from Lender) and as an incentive to encourage economic development. 6. Used to assist other funds: In addition to the lender, an SBA application is submitted for funding approval. Per the lender, time constraints prevent applying for CMIF or Wright County funds. 2 I II . EDA AGENDA JANUARY 20, 1998 GREATER MONTICELLO ENTERPRISE FUND POLICIES I. BUSINESS EL-lGIBILITY: Industrial business: Yes. Located withincit-ylimits: Yes, ZQBed 1-2. Credit worthy existing business: For determination by Marquette Bank. $10,000 loan per each-jebcreated. $10,000 X 5-= S50,000. $5,000 per every $20,000 increase in personal property used for business purposes, whichever is higher. $20,000 divided by $350,000 = 17.5 X $5,000 = $87,500. Recommendation: $81,500. II. FINANCING METHOD: Companion Direct -Loan: All suc-h loans may be -subordinated to the primary lender(s) ifrequested by the primary lender(s). The GMEF is leveraged and the lower interest rate of the GMEF lowers the effective interest rate on the entire project. Recommendation: Tbe GMEF take a second position bebindMarquette BanklSBA on all tbe machinery. III. USES OF PROCEEDS: Machinery and equipment. IV. TERMS AND C-oNDITlONS: Loan Size: Maximum not to exceed 50% of the remaining GMEF balance. Annual GMEF Appropriation Balance, January 20, 1998, $200,000. Request: $100,000. Recommendation: $87,500. RemainingGMEF Balance: $112,500. 3 I .. . EDA AGENDA JANUARY 20, 1998 Leveraging: Minimum 60% private/public non-GMEF. Maximum 30% GMEF. Minimum 10% equity of GMEF loan. Marquette Bank (9.-1 %, 7 yrs) SBA7a (9.1%,7 yrs) GMEF Equity TOTAL $-100,000(28.5%) $153,750(44%) $ 87,500(25%) $ 8,750(2.5%[10%]) $3SO,000(lDO%) Loan Term: Personal property not to exceed life of machinery or equipment (generally 5- 7 years) Requested: 7 years Recommendation: 7 years, same as lender. Interest Rate: Fixed -rate-not-less than 2% -below Minneapolis prime rate. Prime rate per National Bank (First Bank) of Minneapolis on date of ED A loan approval. o Prime rate January 14,1998 - ~ ~,S 10 Prime 1-20.97, to be determined. Recommendation: Fixed interest rate of Loan Fee: Minimum fee of$200butnettoexceed 1.5% of the total loan project. Paid by applicant to the EDA within five working days after City Council approval of GMEF loan. Nonrefundable. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan -fee or port-ion-ofloan fee. It has been the past practice ofthe EDA to collect the 1.5% of the total loan. For this application, that fee would be $1,312.50. The GMEF fee hasrece-ived criticism from some applicants as the applicant is also responsible for legal fees associated with the GMEF. Recommendation: At least, the minimum fee of $200. 4 I .. . EDA AGENDA JANUARY 20,1998 Prepayment Policy: No penalty for prepayment. Deferral of Payments: 1.. Approval efthe EI>Amembership by majority vote. 2. Extend the balloon if unable to refinance, verification letter from two lending institutions subject to Board approval. Interest limitation on guaranteed leans: Net applicable. Assumability ofloan: None. Business equity requirements: Subject-to type of loan; Board of Directors will determine case by case, analysis under normal lending guidelines. Equity requirement forGMEF loans is 10% of the GMEF loan or $8,750 for this application. Previously, up-front TIP has been used as equity; however, this is not applicable. For SBA approval, the EDA is requested to structure the GMEF loan with interest payback payments amortized ever 84 months and principal payback payments jimortized over last 60 months of the 7-year loan. In other words, the EDA would be subordinating the equity for the first twenty-four months. Recommendation: Grant request to encourage industrial growth of existing businesseswbo pay livable wages. Collateral: Machinery and equipment liens (except equipment exempt from bankruptcy) and personal and/or corporate guarantees (requires unlimited personal guarantees) -as per the GMEF attorney. Non-performance: An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. January 20, 1998 approval- loan becomes null and void July 20, 1998. Non-performance extension: Net applicable. Legal Fee: Responsibility of the GMEF applicant. 5 I .. . EOA AGENDA JANUARY 20, 1998 B. Recommendatien~ Recommendation is to review this infonnation prior to the EDA meeting for discussion and potential questions. Carl or Eric Bondhus or Chad Vitzthum, Marquette Bank will be present at the EDA meeting. Consideration to approve or disapproveGMEF Loan No. 014 is the next agenda item. C. Supportin~ Data: PreliminaryGMEF application, list of equipment, and tetter of intent fromlender if received prior to agenda mailing. 6 . . . DEe 30 '97 11: 34Ar1 CITY OF MONTICELLO G?.9.;:'~ ~ON':IC~O ENT~R:::S2 250 EASJ: BROADVi'A~ ~ONTIc=:r...LO, MImlESOTA P.2/8 PR~L~~!~A?~ A2P~I~\TION ~OR LOAN . APPL:;:C~; Lake Tool, Inc. FI?l1 03. ~'\DE HA..'1E: cOSINZSS ADDR!SS: Mont1cello, MN ~~j62 (City << Stace) (Zip coce) E~..E ( ) N / A EMl?LOY::R I. D. ,: 41-18 51 0 2 9 TSLZ:?=::ONL: 134/ Dundas Ci~cle, (ii &. St:eec) BIJ5:LNESS ( ) 612/295-6fi5.5 DA'.::S ESTABLISc..:..u: 6-1-86 SOLE ?p,OPRIETOR x~ CORPORA'!'ION ~.AR~nIP ~l'>NAG2!4~ NAME Dennis Bondhus TITLE Owner o'joj~al? % 33.33% Eric Bondhus 33.33% Owner Carl Bondhus Owner 33.34% ?ROJEC: tCCATION; 1i<17 nllnil.::l~ r;r,...11<> Mnpti(;pllo. MN '=i'=iifi? NEVi BUS!NESS xxx EXIS':'ING BcrS:r~SS TO'!AL PROJZc:::' COST ESTL"!A'XE: ~ 3 5 0 , 0 0 0 . 0 0 . PROPOSED OSZS: R.::QUEST: '. L?ND $ txlST!NG BOILDING CONS':'?OCT!ON ~~CEI~ ~!~ 350.000.00 WOI1.XING c.\PI~ O'F...Z3. TCTAL USZS ~ P?'OPOSZD BEGINNING DA~: 1-15 - 9 8 ESTD".AT;JJ caMPLE':'ION DA~!: 1.~ 3 0 - 9 8 AMOtJNT OF t.OAN 1 0 0 , 0 0 0 . 0 0 t'"A~'!"I!' & 'rEm'..$ REQOESTI:D 7 Y r s APPLIc..\N":' S rQUI~ LOAN P~OS1!: 1'19 ~h i np puq::hase TI!LZ TO PE\OVEC! ASSZ':'S TO BE t::"::TD B"!: Ol?~~ING ENTI'!'Y x x x ALTI:P, E'"'..,o PAR'!'ICI?A1'ING LENDER: Marquette Bank, 106 pine st,. Monticello, MN 55362 (Name) (Accress) Chad Vitzthum ,Con1:.2.c:: P'=t"scn) { )612/295-2952 (Telephone ~) \..U JI..... ':;l '1f ll''4.- PP.ESENT i OF E.."'PLOYEES: .ale '1 .~ \ ').. P~OJEC'::n * OF FlPLOY.::ES ADDI':'IONlo.L p~.o.;t:C! m?O~}I.'!':CN: Purchase of new SuperMax Max-4 Rebel CNC Bedmi I & Fadel VMC3016 CNC Bedmill, & Mitsubishi EX8 CNC EDM & (2) Chevalier Accugrind Super p. recisi~. S\lrface Grinders. A??!'..!CANT SIGNA.':"J?.E~~~C) ~ DA'!.'l;: SIGNED: 1/R/98 . DEC 30 '97 11:34RM CITY OF MONTICELLO P.3/8 MONTICELLO 250 East Broadway P. O. Box 1147 Montic~llo, MN 55362-9245 Phone: (612) 295.2711 Metw: (612) 333,5739 Fa.x: 'I(IlH2) 295A404 Name of AUTHORIZATION RELEASING INFORMATION Marquette Bank Financial Institution 106 pine street Street Monticello, Minnesota State 55362 Zip City -I I hereby authorize any person to furnish to the Monticello Economic Development Authority, 250 East Broadway, PO Box 1147, Monticello, Minnesota 55362, any and all financial records, reports, statements, or other documentation or information in their possession regarding: Lake Tool, Inc. Developer's name(s) 1147 nnndas cir.. Monticello, MN 55362 Developer's address Upon presentation of this authorization or an exact copy thereof, you are directed to permit the personal review, copying, or photostating of such records, information, and evidence and provide same to the Monticello Economic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire term of the loan. 1/8/98 Dated: .dJ~ Authorized ignat~ One copy for each principal of a partnership or corporation as well as the entity itself. I . . . Lal~e Tool, Inc. 1347 Dundas Circle, Monticello MN 55362 ph: (612) 295-6655 Fx: (612) 295-6555 Mitsubishi EX 8 Sinker EDM Machine List Price Macro Combi - 32 position tool changer Combined List Price $ 129,000.00 $ 36,000.00 $ 165,000.00 ** Machine is currently offered for $132,000.00 ** Lake Tool's expected price for machine: $126,000.00 -1997 Super Max Max-4 Rebel CNC Bedbill WI Probing Tool Cost --",~"'., .........;"" ., " \\ I. r' i..... \ i $110,000 From: To: Child Dilte: 12/22/97 Time. 1'::10:015 Pilge 2 of 4 ... USED EQUIPMENT LIST D!3SCRIPTION PRICl-: . N'-:,W OU.~ PRlCF. % OfF 1 Fadel VMC-3016 $90,845 $63,500 30.10% 2 Deckel Single Lip Cutter Grinder Model $6,305 $4,000 36.56% SO (wired for 11 OV) 3 Torit Vibra - Shake Dust Collector $4,691 $2,000 57.37% 4 Tool Cart (full of tools) $8,108 $3,200 60.53% 5 Westhoff 100-1 Drilling Machine $2,250 $1 .400 37.78% Chevalier Accugrind 618SP Super 6 Precision Surface Ginder wi Walker $11,420 $7.500 34.33% Ceramax 6X18, Coolent System Chevalier Accugrind 818SP Super 7 Precision Surface Grinder wI Walker $12,170 $8,500 30.16% Ceramax 8X181 Coolent System 8 Ultramax-DF #5000210 Ultrasonic $4,990 $2,600 47.90% Polishing Machine 9 Scheer Tumico 20-3500 Optical $8,364 $3,500 58.15% Comparitor 10 Clausing 20" Drill Press $2,750 $1,000 63.64% --~."...- 11 Air Compressor 5 hp $1.328 $700 47.29% 12 Baldor 8" Grinder $546 $200 63.37% 13 NSK Luster LS-100 $1,264 $400 68.35% 4 Shop Cart $850 $350 58.82% 15 (3) Kurt Vises D675 $1,230 $770 37.40% From: To: Chad Dilte: 12/22/97 Time: 10:10:40 Page 3 of4 USED EQUIPMENT LIST DESCRIPTION PRICE. NEW OUR PRICE %OFF (1) PROD NL50UR24F 4 1/2X5X8 PRe 16 ANG (1) PROD NL4035USA 6X6X6 Pre $203 $90 55.67% Grd Ang Pit 17 0-8" Mike Set $912 $600 34.21% 18 0~1 Step Mike $141 $70 50.35% 19 Drill & Screw Cabinets $285 $160 43.86% 20 1" Belt Sander $170 $100 41.18% 21 Suburban ex 15 Mag Chuck $1,136 $400 64.79% .2 Metal Strapper $342 $100 70.76% 23 10 Pieces Angle Block Set $100 $60 40.00% 24 4" Grinding Vises (no name) $337 $100 70.33% 25 12" Height Gage $170 $60 64.71 % 26 81 Pieces Gage Block Sets $235 $140 40.43% 27 Parrell Set $70 $30 57.14% 28 Counter Bore Set $160 $50 68.75% (1) - Teco 20401 Clamp Kit 9/16 Slot (2) $250 $120 52.00% Teco 20402 PL Clamp Kit 5/8 Slot 30 Polishing Stones $175 $50 71.43% From: To: Chad Date: 12/22/97 Time: 10:11:11$ Page 4 of 4 ~ . .. USED EQUIPMENT LIST ! DESCRIPTION PRICE. NEW OUR PRICI~ "10 OFF l Criterian Boring Head DBl 203 & R8 I 31 $281 $140 50.18% Shank for Boring Head #20063 i I I 32 Kennedy Tool Cart $407 $150 63.14% 33 Safety Clean Tank $535 $150 71.96% 34 3 Tall Cabinets $360 $180 50.00% MiSe: Table, Fire Extinguisher, 35 Vacumme, Mop Bucket, Ladder, $590 $320 45.76% I Microwave, 2 Vacu Guards (8) . 30X6D Maple Top Benchs (1) 36 $1,640 $1 ,000 39.02% 36X72 Maple Top Bench 7 Kuhn 215-895 Clearview Radius Dresser $950 $600 36.84% Meyer 230-5180 C-10 Minus Set Pin 38 Gages & Meyer 230-5190 M-2 Minus Set $335 $210 37.31 % Pin Gages , 39 MasterCam $14,000 $6.500 53.57% ! 40 Matoh Plotter $500 $300 40.00% TOTALS: $181,395 $111,300 38.64% . . !'J. Marquette Bank Monticello Ms. Ollie Koropchak Director Office of Economic Development Monticello, Mn 55362 Dear Ms. Kropcheck . TJ Martin Inc., / Lake Tool, Inc. is applying for additional credit in order to enhance the production capabilities of their new facility @ 1347 Dundas Cr. in Monticello, MN. From the Bank's standpoint, the credit risk is considered reasonable based on the information received to date. The gap financing the EDA offers is an essential factor in the Bank's consideration of an SBA application or lease financing package. The gap financing with the EDA's second position to Marquette Bank NA and the SBA, or a Lease Finance Company, will enhance the viability of this potential transaction. Sincerely Chad A. Vitz1h~d Assistant Vice President . Office of Marquette Bank, NA 106 Pine Street Monticello, MN 55362 Phone (612) 295-2952 200 W. 6th Street Monticello, MN 55362 Phone (612) 295-2952 Mailing address: P.O. Box 729, Monticello, MN 55362 . . ,. ~. rtl .... / , ,"". LAKE TOOL, INC. FINANCIAL STATEMENTS (Compiled) Year Ended December 31, 1997 And INDEPENDENT ACCOUNTANT'S REPORT . CONTENTS INDEPENDENT ACCOUNTANT'S REPORT ON THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS Balance Sheet 2 Statement of Income and Retained Earnings 3 . SUPPLEMENTAL INFORMATION Schedule of Costs of Revenues 4 Schedule of Operating Expenses 5 ~. . ANDERSON BOWEN & COMPANY, LLP . -. "" .. Certified Public A<<~ and ConnJianu INDEPENDENT ACCOUNTANT'S REPORT To the Stockholders Lake Tool, Inc. Monticello, Minnesota We have compiled the accompanying balance sheet of Lake Tool, Inc. (an S Corporation), as of December 31, 1997, and the related statement of income and retained earnings for the year then ended, and the ac:;::;mpanying supplemental infonnation that is presented only for supplemental analysis purposes, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements and supplemental schedules information that is the representati<?n of management. We have not audited or reviewed the accompanying financial statements and supplemental information and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by generally accepted accounting principles. If the omitted disclosures and statement of cash flows were included in the fmancial statements, they might influence the user's conclusions about the Company I s financial position, results of operations and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. The Company, with the consent of its shareholders, has elected under the Internal Revenue Code to be an S Corporation. In lieu of corporation income taxes, the shareholders of an S Corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for corporate income taxes has been induded in these financial statements. AN~ t,.,,,,,,,, 4 c,-r"!J LLP Roseville, Minnesota January 16, 1998 -1- . . . LAKE TOOL, INC. BALANCE SHEET December 31, 1997 ASSETS CURRENT ASSETS Cash Accounts receivable Work-in process inventory Total Current Assets PROPERTY & EQUIPMENT Leasehold improvements Office equipment Small tools Machinery Accumulated depreciation Total Property & Equipment OTHER ASSETS Note receivable - affiliate Due from officers Total Other Assets $ 44,650 64,801 90,878 200,329 1,586 4,669 1,843 4,250 12,348 (2,470) 9,878 35,845 23,034 58,879 $ 269,086 See independent accountant's report. -2- . .i-",j . -I ^, I .--, LIABILITIES AND STOCKHOLDERS' EQUITY December 31, 1997 CURRENT LIABILITIES Line of credit Current portion of long-term debt Accounts payable Accrued expenses Interest Payroll taxes Sales tax Salaries and wages State minimum fee $ 20,000 10,301 80,145 469 1,566 421 16,518 100 129,520 Total Current Liabilities LONG-TERM DEBT Note payable, net of current portion Total Liabilities 44,140 173,660 STOCKHOLDERS' EQUITY Common stock; $1.00 par value; 300 shares authorized, issued and outstanding Additional paid-in capital Retained earnings Total Stockholders' Equity 300 1,136 93,990 95,426 $ 269,086 . . -'1 LAKE TOOL, INC. STATEMENT OF INCOME AND RETAINED EARNINGS Year Ended December 31, 1997 REVENUES COSTS OF REVENUES Gross Profit EXPENSES Operating Income OTHER INCOME (EXPENSE) Interest expense Interest income Total Other Income (Expense) Net Income RETAINED EARNINGS, Beginning of Year Shareholder distributions RETAINED EARNINGS, End of Year $ 744,685 241,885 502,800 440,040 62,760 (7,631) 29 (7,602) 55,158 64,816 (25,984) $ 93,990 See independent accountant's report. -3- . . . LAKE TOOL, INe. SCHEDULE OF COSTS OF REVENUES Year Ended December 31,1997 COSTS OF REVENUES Beginning inventory Purchases of mold supplies Labor Expendable tooling Commissions Depreciation $ 51,461 157,186 108,868 10,478 2,300 2,470 332,763 Ending inventory Total Costs of Revenues (90,878) $ 241,885 See independent accountant's report. -4- . . tIo". -. LAKE TOOL, INe. SCHEDULE OF OPERATING EXPENSES Year Ended December 31,1997 OPERATING EXPENSES Advertising Bank Charges Freight and postage Insurance Laundry services Legal and accounting Meals and entertainment Miscellaneous Office Expense Office supplies Officers' compensation Officers' life insurance Payroll taxes Property taxes Rent Repairs and maintenance Retirement plan Salaries and wages Seminars Supplies State minimum fees Telephone Utilities $ 673 622 10,640 13,385 1,498 6,155 973 9,814 4,302 12,995 69,231 2,378 24,940 1,437 31,919 9,800 6,485 215,732 171 4,179 235 4,335 8,141 $ 440,040 Total Operating Expenses See independent accountant's report. -5- . TJ MARTIN, INC. FlNANCIAL STATEMENTS (Compiled) Year Ended December 31, 1997 And INDEPENDENT ACCOUNTANT'S REPORT . . . CONTENTS INDEPENDENT ACCOUNTANT'S REPORT ON THE FINANCIAL STATEMENTS 1 FINANCIAL STATEMENTS Statement of Assets, Liabilities and Stockholders' Deficit-Income Tax Basis 2 Statement of Revenues, Expenses and Accumulated Deficit-Income Tax Basis 3 . . . ANDERSON BOWEN & COMPANY, LLP . . Cmif/<d PuhJjc AccOU/tlalllS and ConsulJan:.r INDEPENDENT ACCOUNTANT'S REPORT To the Stockholders TJ Martin, Inc. Monticello, Minnesota We have compiled the accompanying statement of assets, liabilities and Stockholders deficit~income tax basis, of TJ Martin, Inc. (an S Corporation), for the year ended December 31, 1997, and the related statement of revenues, expenses and accumulated deficit~income tax basis for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The financial statements have been prepared on the accounting basis used by the Company for income tax purposes, which is a comprehensive basis or accounting other than generally accepted accounting principles. A compilation is limited to presenting in the form of financial statements and supplemental schedules information that is the representation of management. We have not audited or reviewed the accompanying financial statements and supplemental information and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared on the income tax basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Company's assets, liabilities, equity, revenues, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. The Company, with the consent of its shareholders, has elected under the Internal Revenue Code to be an S Corporation. In lieu of corporation income taxes, the shareholders of an S Corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for corporate income taxes has been included in these financial statements. AN~ E>OU>0i\ '" C4<1nu.j, LL I' Roseville, Minnesota January 16, 1998 -1- . . . TJ MARTIN, INC. STATEMENT OF ASSETS, LIABILITIES AND DEFICIT -INCOME TAX BASIS December 31, 1997 ASSETS CURRENT ASSETS Cash $ 9,182 PROPERTY, PLANT AND EQUIPMENT Office equipment Leasehold improvements Machinery and equipment Tools and Molds Construction in progress 4,386 28,984 66,354 8,779 496,621 605,124 Accumulated Depreciation Total Property, Plant and Equipment (31,024) 574,100 $ 583,282 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Current portion of long-term debt Note payable-officers Note payable-affiliate Total Current Liabilities $ 12,619 30,688 20,300 63,607 LONG-TERM DEBT Note payable-machine Note payable-affiliate Note payable-construction in progress Less current portion Total Long-Term Liabilities Total Liabilities 49,001 15,545 498,974 (12,619) 550,901 614,508 STOCKHOLDERS' EQUITY (DEFICIT) Common stock; $ .50 par value; 300 shares authorized, issued and outstanding Additional paid-in capital Accumulated deficit Total Stockholders' Deficit 150 2,850 (34,226) (31,226) $ 583,282 See independent accountant's report. -2- TJ MARTIN, INC. . STATEMENT OF REVENUES, EXPENSES AND ACCUMULATED DEFICIT-INCOME TAX BASIS Year Ended December 31,1997 RENTAL REVENUES $ 14,315 OPERATING EXPENSES Bank charges 55 Depreciation 20,041 Office expense 337 Professional fees 488 Repairs and maintenance 1,944 Total Operating Expenses 22,865 Operating Loss (8,550) OTHER INCOME (EXPENSE) Interest expense (17,081) Other income 2,523 Total Other Income (Expense) (14,558) . Net Income (Loss) (23,108) ACCUMULATED DEFICIT, Beginning of Year (11,118) ACCUMULATED DEFICIT, End of Year $ (34,226) . See independent accountant's report. -3- . . . EDA AGENDA JANUARY 20, 1998 4. Consideration to approve or deny approval ofGMEF Loan No. 014 for Lake Tool. Inc. A. Reference and Backiround: After review and discussion ofthe preliminary application from Lake Tool, Inc., the EDA is asked to consider approval or deny approval of the request for a $100,000 GMEF loan. Carl or Eric Bondhus, Lak-e Tool, and Chad Vitzthum,Marquette Bank, will be present at the meeting. Eric and Dennis will be executing an authorization releasing information form in addition to Carl. Marquette Bank will submit to the EDA Office a copy ofthe requested financial and company data per the EDA final application. Additionally, the bank will submit a letter expr-essing need fer-gap fundingand-determining the financial credibility of Lake Tool. Mr. Vitzthum informs me that company sales for 1997 were down as the company informed customers of plans to relocate in 1997. The sales are now beginning to pick up. First, the EDA needs toaetennine ifthis.(;MEFloan-application from Lake Tool will encourage economic development. Secondly, the EDA must determine if the proposed purchase of machinery and the application complies with the GMEF public purpose criteria and policies. Note: the loan will not increase the tax base of the community; however, this in not a mandatory requirement ofthe guidelines. Lastly, the EDA must determine the amount and terms ofthe loan for approval. The City Council will consider ratification of the EDA's action ofGMEF Loan No. 014 for Lake Tool on January 26, 1998. It is anticipated disbursement of the GMEF to the company or lender will follow quickly. B. Alternative Action: 1. A motion to approve-GMEF Loan NQ.--o14 for Lak-e Tool, Inc. -in the amount of $87,500 with terms and conditions as recommended. Collateral, guarantees, and other condition requirements to be determined and prepared by the GMEF attorney. Loan approval subject to lender and SBA approval. 2. A motion to approve GMEF Loan No. 014 for Lake Tool, Inc, in the amount of with terms and conditions as recommended. 3. A motion to deny approval ofGMEF Loan No. 014 for Lake Tool, Inc. 4. A motion to table any action. 1 . . . EDA AGENDA JANUARY 20,1998 c. Recommendation: Recommendation is for Alternative -Ne. 1 -with the terms andcenditiens as recommended within the supplement of agenda item no. 4. $87,500 meets criteria of the GMEF Guidelines. D. Supporting Data. Financial and company data submitted by the lender or may be submitted at meeting. 2 . APPROVAL OF GREATER MONTICELLO ENTERPRISE FUNDS BY ECONOMIC DEVELPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA Preliminary Loan Application Approval. Loan terms negotiated and agreed upon betweeen the developer, the lending institution, and the EDA Executive Director. Formal Loan Application and Financial Statements analyzed by the lending institution, BDS, Inc. or city staff. LENDER Building and Site Plan Preliminary and/or Final Review. NOT APPLICABLE Building Permit approval or construction commitment. NOT APPLICABLE Loan documents reviewed and/or prepared by the City Attorney. tit ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL: LOAN NUMBER GMEF NO. 014 LOAN APPROVED BORROWER T. J. MARTIN, INC. dba LAKE TOOL, INC. ADDRESS 1347 DUNDAS CIRCLE, MONTICELLO LOAN DISAPPROVED LOAN AMOUNT RATE DATE TERMS FEE A motion was made by EDA Commissioner to (approve - disapprove) Greater Monticello Enterprise Funds in the amount of dollars and cents to developer this day of Seconded by EDA Commissioner YEAS: NAYS: GMEF disbursed 19 _ by Check No. EDA Treasurer . CITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITHIN TWENTY-ONE DAYS OF EDA APPROVAL. . . . " GMEF Approval Page 2 ACCEPTANCE OF TERMS I (We) hereby accept the terms stated above as approved by the Economic Development Authority in and for the City of Monticello. DATED: . . . EDA AGENDA JANUARY 20, 1998 5. Consideration to review for approval/disapproval the DMRF application (reimbursement fees) for 103 Pine Street. A. Reference and Background: The October 1, 1997, DMRF application for 103 Pine Street from Kathy Froslie did not include a request for reimbursement fees; therefore, is the enclosed application. The original application was for the front, rear, and side facade matching grant. Kathy elected not to complete the side (Pine Street) facade. The Design Advisory Team will assess the completed front and rear facade on January 16, 1998. Upon evidence of voices and payment and sign-off by the design team; a check will be disbursed to Kathy for $5,000. Please consider the following when reviewing this application. PUI:pose Does the proposed project seek to promote the revitalization of downtown Monticello'? 1. Enhances storefronts and facades in accordance with the design guidelines in the Plan. Yes .....1L- No 2. Encourages the rehabilitation of building interiors to bring them into compliance with local codes and ordinances. Yes _ No _ Not applicable --X-. 3. Encourages building rehabilitation to provide space suitable for the proposed use. Yes-x-No_. 4. Provides funding to close the "gap" between financing needed to undertake the project and the amount raised by equity and private loans. Yes _ No _ Not applicable.....1L- 5. Provides economic incentives to locate businesses in the downtown. Yes.....1L- No_ TarJ:et Area Preference given to Blocks 35,36,51, and 52, Original Plat. This proposed project lies within the preferred area. Location Block 52. Fee Reimbursement 1 . I. II. . DOWNTOWN MONTICELLO REVITALIZATION FUND Monticello Economic Development Authority - 271~3208 250 East Broadway, POBox 1147 Monticello, MN 55362 FUND APPLICATION Basic Information: ~ A+hl-t>i'-J A" fRo s \ \ i 1)5 3 ~ {-teA f\J A- Auf < (\.L <( . cXCfS-17JV:> Soc/ - 5 5S - Cj{) (p L/ ~ 1-0 q 9(0 17-:J-.- Name of Applicant/Property Owner Address of Applicant/Property Owner Telephone Number of Applicant/Property Owner Social Security of Applicant/Property Owner Tax ID#of Applicant/Property Owner Nature of Revitalization Fund Request: Street Address of Revitalization Property / 0 3 P ~ PID Number of Revitalization Property -----l S sol 6 6 <) J... \ \ 0 Legal Description of Revitalization Property - Block ~ ?~ot(s) J j...J J-L- Revitalization Property is currently: Occupied X Unoccupied Prospective Occupant If applicable. Name of Occupant (Business) or Prospective Occupant (Business) If applicable. brief description of the nature of the business of the occupant: I . . . Downtown Monticello Revitalization Fund Fund Application III. Type of Revitalization Fund Request: A. Facade Grants 1. Front Facade and Signage Grant (Matching funds of up to $2,500) Amount of Request $ Projected Cost of Improvements $ Amount of Equity $ Amount of Private Loans $ Brief description of the improvements for which applicant is seeking funds: 2. Rear Facade Grant (Matching funds of up to $2,500) Amount of Request $ Projected Cost of Improvements $ Amount of Equity $ Amount of Private Loans $ Brief description of the improvements for which applicant is seeking funds: 3. Side Facade Grant (j.f~plicable) (Matching funds of up to $2,500) Amount of Request $ Projected Cost ofImprovements $ Amount of Equity $ Amount of Private Loans $ Brief description of the improvements for which applicant is seeking funds: 2 . . . Downtown Monticello Revitalization Fund Fund Application B. Rehabilitation Loan (Maximum amount is the lesser of25% of total cost of the improvements or $20,000) Amount of Request $ Projected Cost of Improvements $ Amount of Equity $ Amount of Private Loans $ Brief description of the improvements for which applicant is seeking funds: 1; c. Fee Reimbursement (Reimbursement of City fees in an amount equivalent of 10% of the total cost of the improvements up to a maximum of $500) Amount of Request $ 500 Projected Cost of City Fees $ !o5. 0 - / CaS1- Q~ I O~ ~cP':} O(fD IV. Lender Information: Name of Participating Lender Contact Person Telephone number Ifwe certifY that all information provided in this application is true and correct to the best of my/our knowledge. ~,~~ )-&-78 ~~e of ApplicantlProperty Owner Date 3 CITY OF MONTICELLO / BUILDING PERMIT 250 E Broadway/PO Box 1147/Montlcello. MN 55362 (612) 295-3060 /D3 Site Address: ~ PINE STREET NORTH Legal: Lot 11 & 12 Block aerty Owner Name: MICHAEL W. FROSLIE Address: 7833 AETNA AVENUE NE PERMIT # j ,., j I V..J PID # IS') - 010 -- o';-d/I 0 51 Plat Zone: TOWNSITE OF MONTICELLO City: MONTICELLO Contractor Name: BRUCE STODKO / KATHY FROSLIE State License # Address: City: Phone # 295-1776 State: MN Zip: 55362 Phone # 295-1776 State: Zip: Phone # 682-9530 State: Zip: Phone # State: Zip: Phone # State: Zip: Eng./Architect Name: Address: Plumber Name: Address: Mechanical Name: Address: JED LARSON City: City: City: Description of work: REPLACE EXISTING PLAT ROOF 'WITH A NORMAL ROOF & SEE ATTACHED BLUEPRINT. GOING IN STYLE TO MOVE INTO THE SPACE. Est. Value: $ 25,000.00 1'VIH! of Work~ 'New Addition Alteration o Repair o Move o Other Tree Ordinance Applies: 0 Y es ~ No Other Handouts Required: 0 Yes (] No Additionsllnformation: Const. type: Occ. group: Division: Sq. Ft.: # Stories: # Res. units: Max. occ. load: Fire zone: Fire sprinklers: 0 yes 0 no Off-street parking covered: Off. street parking uncovered: _ Tvne of Construction: o Single Family o Duplex o Multi-Family IJ Commercial o Industrial o Res. Garage o Other ******************* Work performed without required inspections will result in removal of materials at owner/contractor's expense until inspections are completed. NO EXCEPTIONS. I have read and examined this permit and agree to comply with the building code in effect at the time of this application. I agree to comply with the ordinances of the City of Mooticello. ~ISi J Building 0 Ii Date 9-s - 9/ Date FEES: Big. pennit 252.00 Plan review 12.50 S tate surtax Big. Total 264.50 Plbg. pennit Fixtures State surtax . Plbg. Total Mech. pennit Fixtures State surtax Mech. Total 1500.00 Sewer access 1 UNIT Water access Water meter Meter sales taX Meter Total Sew & water pennit Trunk water Trunk san. sewer Stann sewer Lift station TOTAL FEES 1764.'i0 Recei~ Date ,.-, CITY OF MONTICELLO BUILDING PERM~T APPLICATION (612) 295-3060 PERMIT # '}). S / t::,j PID# P~E PRINT--INCOMPLETE APPLICATIONS WILL NOT BE ACCEPTED. · /D3 0 . td .Site Address: ~ I I f\J [ ~ 1ft' e* Legal: Lot_II + I ^ Block 50? Plat lOW^, :sdc Contractor Name: State License # Address: 66iuCF w. t<Lf , :;;-fo~Vo, F-RosLI f . iJ, C City: (>)dTd IC1JJ tJJ Zone: or-- ~ Phone #dqS-/77 (.. State: m /J Zip: C;SSI.a.L Property Owner Name: (Y) I 'cJ1t\ e L Address: {g 33 A-ehic- d(A--IAa - Ft;tJ5L Ie Phone #:)95 -J 77 0 City: State: Zip:__ Phone # (08 ~ - 9 '53 () State: Zip: Phone # State: Zip:__ ph he # ;~9 "."State: Zip: Eng./Architect Name: -=s- e'D Address: Plumber Name: Address: M:.::chanical Name: Address: 1, iH<- sa N City: City: City: /' type of Work: o New o Addition 'Alteration Repair Move o Other Type of Construction: o Single Frunily D Duplex o Multi-Frunily g Commercial D Industrial o Res. Garage o Other Buildinl! Informatiwl.;, Use of building: # of stories: Floor area sq. f1.: Estimated value: Water meter size: Water line size: Sewer access units (#): Description of work: , \1"\ r ~DO\': WI 00 ~ -=+ 5 C? e t4- "i-I(J A- CAlVO ~ * <- NEW CONSTRUCTION: Please record any pre-construction site damage such as but not limited t()'damage to curb; water shut- off; public utilities (no utility markers in place); street; sighs; etc.: ^)O AJ F **************************** Work performed without required inspections will result in removal of materials at owner/contractor's expense until inspections are COmf)letcd. NO EXCEPTIONS. I have read and examined this permit application and' I agree to CO~rWY with tbe ordinances of tbe City of M above wHI b')paked at my expens.. BLnAPP,!'!v/4: 1112m iOUNSELOR RLTY L--- LM....on ^""oellllICl~.I"t. A,d\ll<<:lll tint! Ullglnocr. ':.,C1 ."',,". AYI'III1I1 N.Il. .ull~I". Wllp'........n .,,'" I.. 'J\'J. ((w.1) loll' \I!I.,n JI... (61 n IIN' II"" . . TEL: G 1_Z=5!1).:.. -9.?~(2 U c t _.s ~..:.~ I:' . d . 1 J r. u . U U J. ,. U J. d9S- Lr't./o'Y OCtober 22. I'iV7 Ms, Kathy l1roalic J 0) .'ine StTeel Monliuello. MN "~62 Re: Bllitdins Rcmode1ill& and Addition I U3 Pine Suee\ Monticello, Minn.lota Dear Kathy: All requested 1 bave li7.cd the sleel lintel for the nCW waU openln" in the u-ppeT Jevel east wan ofthe above referenced cxi.tinu building. The opening will be cut into the existing mllOnry Win c;:.ompoacd of K" co.u,:rctc block wiLh 4" lace brick at tho oxtorlor to .now 11\e mlltaUut.ion of. 6'-0" wide x 4'~O'. hiah window. I recom,,",,'" thal the lintel be a W K " 10 wide flanac beam wIth . Xi" x 11" 1tce1 plate welded to lhe b\.'t\lOln l1anlc- The boaln mould extend ;nlo lhe walla minimum 014" on each end. }1m the block corcs below the end bc.rin~ ofthc bel,,,, with concrete LO a minimum depth of24" below lhe beam. ) calculalc t.he maximum total deflection otthil lint.el to be 0,054" which ), within the maximum denection criteria. Jf)'Ou have lIn}' qu.,.tion.. please feoJ ITce to can me. Sincerely; "'77Sltl jkl-w4 - / / ;." / "," . / - Receipt and Waiver of Mechanic's Lien Rights Draw Number: Date: 03/19/96 The undersigned hereby acknowledges receipt of the sum of $~1OJOro & ()() as PARTIAL PAYMENT for material, labor or service FULL AND FINAL PAYMENT for material, labor or service furnished to the following described property: Project Name: Dustin L. Ewing 17912182nd Ave. Big Lake Minnesota 55309'1 Address: General Contractor: \ \ \ CTIC File No: 51228P Contract $ 3D 0 GO. a 0 I ) , \ and for value received hereby waives any and all rights to file a mechanic's lien against said property for material, labor or service furnished to said property." .. . Proj~ct Manager: \ \ The undersigned affirms that all materials and labor furnished on behalf of the undersigned have been paid In full, EXCEPT: ,. \,.. \ ~ I'AYTOTJ~ ~ ORDER ai' ~~" I If 'If l'~I~ - ~) I:dq }.qoq u.\ }.I:... .O-T LWl 7/~ . . . EDA AGENDA JANUARY 20, 1998 6. Consideration of Executive Director's Report: a) Annual meeting - Tuesday, February 24, 1998, 7:00 p.m. Although the EDA Bylaws have the annual meeting date as the fourth Tuesday in January, this does Ilot allow the Finance Department adequate time to determine the Interest Income _ Notes and Investments. Therefore, the annual meeting is scheduled for February 24 providing this meets everyone's schedule. Annual financial and activity reports are due as well as election of officers. Any officer not willing to be -considered for re-election, please so advise. b) Downtown Revitalization Design Workshop Payment. Enclosed is a copy of the invoice and check in payment to Claybaugh Preservation Architechs for $1,000 as authorized by the EDA. The workshop was conducted for members Qfthe MCP Design Advisory Team and others. c) Annual appointment of ED A Commissioners. EOA Commissioner Oarrin Lahr was appointed by the City Council on January 12, 1998 to a five-year term on the EOA, -expiration date December 2002. Staggered terms as follows: Roger Carlson, Council 12/2001 Clint Herbst, Council 12/1998 Ken Maus 12/2001 Danin Lahr 12/2002 Barb Schwientek 12/1998 BillOemeules 12/1999 Ron Hoglund 12/2000 d) GMEF Loan No. 004. The balloon payment of$41,51O.65 was paid by Suburban Manufacturing on November 12, 1997. The original amount of the loan was $50,000. 1 .,.... C I ^ Y n ^ I J (-; II ,), l' ~ ~, r~ v ^ ~ 361 W. Government St. Taylors Falls, Minnesota . liON 55084 STATEMENT CLIENT: STATEMENT NO.: ONE DATE: NOV 18,1997 MONTICELLO COMMUNITY PARTNERS PO BOX 984 MONTICELLO, MN 55362 PROJECT NO.: 9709 \, ATr: RJTA ULRICH PROJECT NAME: DOWNTOWN BLOO DESIGN WORKSIIOP SERVICES TOTAL COMPENSATION PREVIOUSLY BILLED CURRENT AMOUNT DUE WORKSHOP $1,500.00 $1,500.00 . SERVICES TOTAL $1,500.00 $1,500.00 REIMBURSABLE EXPENSES PREVIOUSLY BILLED CURRENT AMOIJNT DUE MILEAGE 140 @ $.30 $42.00 ~ Y-Cl "<"r--. /. ~ \ \ 0 0-0 e 'Q f\. G...- c. C ~ ~ 0 Q.g~6c...v~ \' ~.lU..J-~ ~ ~~~ ~ ~-"-~ -'" $42.00 \\. 'J \-- Clt l REIMBURSABLE EXPENSES TOTAL TOTAL AMOUNT DUE: $1,542.00 Payment i" full is due ul"'" receipt of statement. Interest of .67% per month may be charged on all balances remaining unpaid 30 days from date of this statement. FILE:MCP-I . tel 612.465.7900 . fax 612.465.3505 ,2, ~'1- Q... - 'J-lt S ,- ') '1tl S ~ ~ GEN CKS . CITY OF MONTICELLO GENERAL FUND 250 EAST BROADWAY MONTICEllO, MN 55362 75.1152 -9;'9- NO. 43472 MARQUETTE BANK - MONITCELLO PO BOX 729 MONITCELLO. MN 55362 DATE 12/04/1997 CHECK NO. 43472 AMOUNT $1,000.00 ONE THOUSAND AND 00/100 DOLLARS PAY TO THE ORDER OF CLAYBAUGH PRESERVATION 361 W GOVERNMENT STREET TAYLOR FALLS MN 55084 i...-.....---.-""'=-.--------c~.....~. _ ...' ,.,,-.--- '.:.--.>.1 \.. . ",' . ~....,-.' -.,~._.. ,"-:'-="".- ....-..;;...,.; ':'l__. ./ 11105 3BO 3111 ':0'1.'1..522': ? bOO O. 7 III 250.46501.3199 EDA-WORKSHOP 1, 000 . 00 . TOTAL 1,000.09- CITY OF MONTICEllO . . . . Monticello Community Partners PO Box 984 Monticello MN 55362 295-0999 MEMO January 9, 1998 To: Mayor Bill Fair; Councilman Roger Carlson; Councilman Clint Herbst; Councilman Brian Stumpf; Councilman Bruce Thielen From: Rita Ulrich, MCP Manager ~ Re: Suggested list of aooointments to the Design Advisorv Team In keeping with our work on the Downtown and Riverfront Revitalization Plan and the Central Community District Ordinance recently approved by the City Council, Monticello Community Partners (MCP) hereby submits for your consideration the following people for appointment to the Design Advisory Team: Pam Campbell, Gail Cole, Ronald Hoglund, Rita Ulrich, and Susie Wojchouski. Each of these nominees is well versed in the design guidelines incorporated in the Downtown and Riverfront Revitalization Plan and has participated in training on design considerations and building rehabilitation for downtown Monticello. It is our understanding that Fred Patch and Ollie Koropchak will serve as advisors and city liaisons on the Team. Monticello Community Partners is committed to providing ongoing training and education for Team members so that they may carry out their duties in a knowledgeable and professional manner. We will be convening a meeting of the Team in the third or fourth week of January to work out procedures and guidelines for reviewing proposals and applications in accordance with the Central Community District Ordinance. It is our belief that the Design Advisory Team will make a valuable and lasting contribution to the visual enhancement and economic revitalization of Monticello. Thank you for your consideration. cc: MCP Board of Directors Fred Patch, City of Monticello Ollie Koropchak, City of Monticello Design Advisory Team members . . . Monticello Community Partners PO Box 984 Monticello MN 55362 295-0999 MEMO January 9, 1998 To: MCP Board of Directors Fred Patch, City of Monticello Ollie Koropchak, City of Monticello Design Advisory Team members From: Rita Ulrich, MCP Manager ~ Re: Attached memo to City Council regarding DA T aooointments I am copying the attached memo for your information. At this point, I have asked Rick Wolfsteller to put the Design Advisory Team appointments on the City Council agenda for Monday, if possible. Call me if you have any questions. DA T members: Pam or I will get in touch with you to set up a meeting for the week of Jan 19th or 26th. #, gr"A' ~b~rf,a-" I1C/I~ ~'lA/q,( ;.fO,31"Jt3 2fo. {~}J3 u 7-0;.(.1.- 1(1 'Vi;)d'ifpr,..r,.. '; ,/3 0!-Aug--951D 45,628,70 171,111"" $145.2tv 45,483.54/876/tt 11~.7JCM~C-/J 1fOo 'f{f;V>'v~ 1.'f,~"34 LSep-951f 45,483.54 170 .~.tfV' $145.76 v 45,337. 78'~/8'133 LI)0.7 f - ~ - 2. '1- '7 J ? ~ - tit. 'i'f ~/1(.1 I-Oct-95..- 45,337.78 170.02'/ $146.3'..-" 45,191.47Jf'/~";u:r f ( q 1~i.16.-..0H(ly-95))1 45,191.47 169.Hc"(,v $146.8fv 45,044.62/9o.)() I~b~ (fi"'~() r3/G"J;;L.7/tlH1 .;.....)7 -Dl-Dec-95 3J 45,044.62 ~/,t'N( $14Ub ,/ 44,897.21 J'i17~ ;..()tr~~'I.#'1 J%'1/f.3 n . LI'{C,7 t ' '!E....38.---0Han-961-i( 44,897.21 ~/"g.g $147.96""""'- 44,'149.25/1,Jf..3 f. )),08' rt]. t'i 11l~y ~11m.-01-Feb"96t-ff 44,749.25 +6-t-:-&4J"U(\$148.51v 44,600.74 /?3'88 1)(,,1/1., 99 YO ')O)J.7'1 ~!L-01-Mar-961t. 44,600.74 ~/t.?,4~ $149.07"/ 44,451.661'14/'3 {1.J3.H 173.o"V CJIl.7L. ~~r41 .Jl1--Apr-96?1 44,451.65 r&tr-;-&9/".9~$149.53v' 44,302.031'1'''Or jor0v- (67.7() t/2.j, 7..1.-- 1;~01-May-96 2\ 44,302.03 -+~tjll.l.,3.l $150.19..-" 44,151.84/9713 / /GOI ')0,.31 '27/,'11 (/1~Hun-963J 44,151.84 ~/(,S-.-i'4>$150.7("/ 44,OO1.09/'ig'f;. f7'ivZ !3C.VI r'Jf'F-$7 3kA..4_01~Jul-95)0 44,001.09 ~/7'1,ql $151.32....... 4~.849.75 )tjCj2J3 I bj of.,; fr3, J(.. '15, '7J2.~ I !(fi;LA~L-01-Aug-951'1/ 43,849.75 164.44 ~ $151.89-1/ 4 .~ ~DJif8 113'12- ,y~ - ?f'i.51 V!3..!6 ~01-Sep.-95 3' 43,597.88 +&a-:-B-t/''/.Or.. $152.46'...... <)/"/" ' ....,- I f.>7.){' (!f1,1" G,YJ.;/''- ~%L1..L- 01-0ct-96 te1 43,545.42 ~1"3,~i$153.0~y' V"f (f ./" , I Sb o~ ,(p~ .1'7 <[m.Or:, :r;... 48 0 Hoy-96).1.- 43,392.39 162.11 v" $153.60 v' ' . W r 1f(f':1 f 33 j. 1...? 1;t,J.49 01-Dee-96 JO 43,238.79 ~1t.a-.11 $154.11'{ T- '. "{p,'" \ {71.2Y l/Jl~L91::.~a.~~~'1:'_g,_0_84_JJ____~__1tL_~.!LH1b.H~4. 7(' ~. 0rZr:1 A/ f fi o.?; 27 )fii~L_..Q-.t.Eeh~97__37.4?~?L8~___d_j,69..,_~_9J~/'.[?lt5_~.J_J. 7t?t. ~ . . ~'U~~-( -/-/ 1/2., fll}, 2J- ..'~p~_Q.1':~2!:~:~_L(J~___111J7.4:_~L.._..!~.!9-lbJ)/S7J.1~~:~' If "/./r~J' ;;'>'__"''''7'' ." /;:.-(.,1- .) bJ/.j-,f l~~3_QJ:-Apr__:nJ'1 42 ,5)?_~L__._.]:?~f",~.(JJ.ll~:r I I r I I /:~-'fJ;(7 0 $'7,), Cfy .r,I;l<'_s.!.~~~y.:9IJ(L_E,452.09.~ IS'I.'fJ. $157 .A!.~.1 "'. I ,3t ll'tJ/IJ ~!r_~5~___9J::lll.rl:-9lJ7_4?,304-.99---'~-(t.s-g-.g3$157 1::- J.? r. ~~?Y~~ : 0'( zc.g,O(.. 1M.~~.____Jl_~},~..,..1...-._. 9L.1/i4..2. ,147: 3..1. . -t._ .s-...a-.0.5.1S.~.,~). V..j.1r 011 p C <:) 1<..y~....I... /'J /J 7/ ,S'.20 (0 L f? 4tB.~- ~....lt~~9.p.,-.__~.:7.7.::j.-__.L.~\~1~\o~=:k.r.:r~,li\' 'f-j~-?-~~: M A'l a,t':/t"'fi ~j.~ / lff' ~~;::; '%,>L...O 1::001- 91) 1/ JLEILlL 4>Wl., '", ", "'7 ~ - d.J o,c , ,.- ,"-~ "jl- ~/ 1;Y 1 :l" ~q o. ~} ---:~ ~pcif.;jJbr>--n~b: p ~ ;4t",;< f]iLff::; 12 '9? '--! \-1- (J? v7 52 01~~n-98 41,188,73 154/45 $Iu,. '/?.1. fro_.I' ,-(' cui., 53 01-Fe'h-98 41.025.87 ;,f;.85 - ~ (, .-> IJ ...~ -- 1. ~ 0 64 0 l-Mar~~8 40,864.39 53.24 -r(n,\.) " /i:!!!..!. (~(, n). .. 65 01-Apr-9a 40.701.31 152.63 ,. tA""rl A ',., 56 01-May-98\ 40,537.61 / 152.02 1/ 5/0. &.___ ~'t'(r r: 67 01-Jun-98 \ 40,373.31/ 151.40 .) ) /' d (\/ \ {' 68 OHlIl-98 40,208.3S 150.78 tJIA/) /J'j!C!..,;--IJ // '/~ 97 ' r.2 ,/ 69 01-Aug-98 \ 40,042 ~4 150.16 f'/l...(j /L. c..z 1-lP"J ;i ~11:.~~:~:: \~:::\.':~ 11::..:: t .) ~ A ~ Ll -. ) ;: ~11~~~;~:: ;'9 3~:.':; 11::',:: t/fY'JS/ c7:~ {~~&v, d -- e') 74 01-Jiln-99 ~9,\~05. 75 147.02 _u..t}-tI.A./O{(/'ff./ /' f ,ocn/../YtV I 75 01--Feb-99 9,0'\5.46 145,39 ./' 75 01-Mar-99 38,85&.,.52 145.75 I 7'/ 01..Apr-99 38, 595.~5 145.11 78 01-May-99 38,524.7 144.47 79 01-Jun-99 38,352.87 143,82 I 80 OHul-9 38,180.37 143.18 81 01-Aug- 9 38,007.22 142.53 82 01-Sep 99 37,833.43 141.88 8301-0ct;l9 37,658.9B 141.22 84 01-Nov-99 37,483.87 140,55 .-' .' ! .,/).. \.':--'i. .)/ (, -J () , ,. ) l/ ,).. .J u -- .~ ~ II J .'J4l $174.4(1 $175.10 $175.76 37,833.43 37,658.98 37, 483.87 37, 308.11 ~ \ ~.~~ ~J-~ Lc. \__ \ ~ -- q S; . . . . draft Monticello COlnmunity Partners po. Box 984 · Monticello. MN 55362 Design Advisory Team Friday, January 16,1998,11:30 am Monticello Area Chamber of Commerce Office Members Present: Members Absent: Meeting Minutes Pam Campbell, Ron Hoglund, Rita Ulrich Gail Cole, Susie Wojchouski Those present went to see the work on the Froslie propefty at 103 Pine-Street. After viewing the building, members agreed that north side of the building had been completed, but suggested that all of the window trim on the north and west sides of the build match, There was also some debris left on site. No work has been started on the east facing entrance of the building. Members noted that the main entrance to the building on the South side did not have all of the work completed as proposed in Ms. Froslie's application. The steel columns are to be painted and the lower portion enclosed with brick. The metal railing around the entrance were to be replace with brick fin walls. The remainder of the work appeared to be completed. Action: The Design Advisory Team approved the work on the rear facade, and tabled any decision on the east and north sides until the work is completed. 1/19/98 RU . Design Advisory Team Final Review of Project Date ,lit.,. 19 8' I , ftf1f!. f'I1O-#D f:- Project Name of Property Owner Kri 7)-1'-1 ~i!osu:c.... Address of Property } () ::s I; :..J t. ar". ~::. t/rrr UL,eItl.1f /loG> L#-~,:J 0-1'J7n ,o6L? L.. Team Members Present . Findings: _ I!ro;:"L/NL Mrn pC-fort'" ;..(e-.:.U w"Jj)tJw5 14,. '7r/E- !109,..JS ~/2-L(19j /;;i),~,4rL Pv'f",t-c...- t> r I W o)4J 0,,) S, .... -rift. )) u,;1 ",,.,; lH;d t.$ t liLy -rt/f?n II PI' ,4"'/h D 1)1 t.- f'LA AI lie ItH ole W~.!!!!JU. r 7H ,.If (l(IYr1 pln/t ,.J L Approve ~ Disapprove Comment: IV f. t.<J w I,...J i) () <..-r.) 7;!!..1 /1'J I .:; li)HIT't: ~/t.,f(.rn...Jc.,. w;,..tbtJl<J -rt8I~ is t6L/Jc!-K. ) ]) fJ /. t f..-d.-.om In of: "-' .D <; 7;O/- -r ""T}I t: I/LI /'Y"l M I-D.e 5 /J7/f'TOI/. /}L$O 7Jtf- i).A./: , 5:J l.l &. & t c 7'S mL W I t-1 Do 0 If I R... (It:m1 t:J , r; or? f: /l..../Ji ~5 a,e tf;J 'i:../.) .$ O"m-'i /.j.r...J '7'7.7 fYJl1j{J'( I r L f...S 5 fLeth.&-PI/!....t..LL.-tu-S I/;{D, 11-5 of I !)u!q,y /JoltIL-t:>S, .jJ/I,Ji-(j (f{)5~/;3't- (1trn~TR...uLTl;Yl bt/J/!-iS) /5, Sr;L-L- 61/' $.1"-& D,II., tf.-cL.crmtn'f./l)/)s ") ~c <"-A"U,, u...P. . . . Date \ fl/ /9 i / I Project Design Advisory Team Final Review of Project Name of Property Owner ft1)-/1.. Address of Property /03 s.- I . Team Members Present t:;- /J LJL-I!?-;t!.. rI J;~ ~::tL L Findings: f If D.J ECl.'- .;..Ill ~ Jv tJ'/ I3f&t-l N. Approve Comment: ;:- ~lf-D L Disapprove G .e1'11.J-r'" WI '- L is L . }"S ai-I'm PL 'Lit. - S;DL r4c1AI.)L (t A $'1 T A <l 1...0 t,.. E rJjf4./~ ""-flt3LfD /' l!?-f..-dtyn5d:JL,eE..t) UJ-IIf=N l'evJLc"l' . Design Advisory Team Final Review of Project Date I Ii II /:; f' . Project nON-l ;C11C1/1j)L J/ --. Name of Property Owner I'Clfnly r/ltJ.su(., Address of Property /LJ3 ~;Y7:... 6/. T earn Members Present ,1(; r ,q ~~ LlL~~t If ~"}Jj) . PL'>iLG. . Findings: ;VIetU xtJOf"i-IAlt:-- /-/'19.$ ,6€:.fd e9Yr7pu<.r~I-)/ ;::-"q(!,qi::>~ iI,4~ t3E..t'N SIi)(j:) i.C177f- W 60 D Ik u)'i:-;} 'itf... ?II i. ..souTH ::';"';7M II;1S / , tLo J.-U. m AI 5 fi ~ f:- 1'1 t I I' ,q-olrf..l:>, I'f I> .e. f /{tLi-t.> 5. 'i-D merl1L i!41l.-'/.J& ,III-So /oJ/:)"1"' tu..t:/./ I!..f.../"I../Mi$.'::' Approve Disapprove Nor ~€.€.r./ tLh'nPt(cTW. 'Nt.. => -r.€ t.L, IP' 7H 13/:'.d.K- ~II/ I.. ow c...e pc /?rlC,Y 1 . <.VI t5&'qt:... r/"A/ (.<..)/fL.i{;.. .fA6l'~O . V 7).If.. ft;) i;:>"J " t1ftrl pI.. {. ~.: ..{ . Comment: C" A{' D.t" , -r .$;,,4'-1 S m"-6.-r c, :'1' f- t...:> I!. 117I,y ~ N (J U;U...of. tJ'- E I'n 'Ii,oJ,-- ])me~ &ll/O&'/.JIJ; 0,.,[ 1'/1(,l. .:JP' ~ i~ I!O/JI' P/ldl'1i:> L. II 77-1147 ~ IInf7RtJ/lEm'P"':'7'5. IU.'i- " (Urn.-, I'L t.., E.. ;q,.Ji::> '7}I/s I IS' JJol. .