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EDA Agenda 10-25-2005 . I. 2. 3. 4. 5. . 6. 7. 8. 9. . AGENDA MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, October 25,2005 - 4:00 p.rn. City Hall - Academy Room MEMBERS: President Bill Demeules, Vice President Barb Schwientek, Council Members Wayne Mayer and Tom Perrault, Ron Hoglund, Darrin Lahr, and Susie Wojchouski. STAFF: Treasurer Rick Wolfsteller, Executive Director Ollie Koropehak, Recorder Angela Schumann. GUEST: Bruce Hamond. Call to Order. Consideration to approve the April 26, 2005 and the August 9, 2005 EOA minutes. Consideration of adding or removing agenda items. Consideration of a presentation and proposal tor VisiCom, Inc. DMRF Loan No. 111. Consideration to discuss and to authorize payback of the BOA Fund. Consideration to discuss incentive for use of Federal grant dollars. Executive Director's Report. Other Business. Adjournment. . . . MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Thursday, April 26th, 2005 - 4:00 p.m. City Hall - Academy Room MEMBERS: Chair Bill Oemeules, Barb Sehwientek, Torn Perrault, Wayne Meyer, Susic Wojchouski, Darrin Lahr, Ron Hoglund ABSENT: None STAFF: Executive Director Ollie Koropchak, Rccorder Angela Schumann, Rick W olfsteller 1. Call to Order. Chair Demeules called the mecting to order at 4:00 PM, dcclaring a quorum. 2. Considcration to approve the Februarv loth. 2005 and October 26th, 2004 EOA minutes. MOTION BY COMMISSIONER SClIWIENTEK TO APPROVE THE MINUTES OF OCTOBER 26th, 2004. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED. Prior to a motion on the Fcbruary minutcs, Koropchak noted corrections, including a notation that the loan rate would be 2% below prime, with a minimum fce of $200 or maximum fee not to cxceedl.5% of the EDA loan. MOTION BY COMMISSIONER PERRAUL'r TO APPROVE THE MINUTES OF FEBRUARY 10th, 2005. MOTION SECONDED BY COMMISSIONER LAflR. MOTION CARRIED. 3. (~onsidcration of adding or rCIllOving agenda itell'ls. NONE. 4. Consideration to elect 2005 EDA officers. Commissioner Perrault noted an inconsistency bctween the bylaws and slate of olIiccrs. Koropchak clarificd that the corrcct position title should be assistant sccretary rather than treasurer. . . . EDA Minutes - 04/26/05 MOTION BY COMMISSIONER LAHR TO APPROVE THE SLATE OF CANDIDATES WITH THE CORRt~CTION TO ASSISTANT SECRETARY AS FOLLOWS. Prcsident: Bill DeMueles V ice President: Barbara Schwientek Treasurer: Rick Wolfsteller Assistant Secretary: Ron Hoglund Secretary: Ollie Koropchak MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED. 5. Consideration to review and accept the year-end EDA Financial Statements. Activity Report. and proposcd 2005 Buduet. In reviewing the budget, Koropchak stated that for 2004, there were only two appropriations, as in many cases recycled funds has been used. For WST, the Small Cities Economic Recovery fund and Minnesota Investment fund, both using recycled dollars, had been used. Koropehak commented on the loan and investment interest, as well as the collection of legal fees, which resulted in revenues of over $83,000. She noted that some expenses, including legal, planning, and engineering costs, havc not yet shown up on the records. Koropchak stated that she expccts approximately $1,848 in total expenses in those areas. For thc end of 2004, the report shows $1,625,000 balance. Koropchak reportcd on accounts receivable. Wojchouski inquired who the TJ Martin loan was for. Koropchak indicated that the party was Lake Tool. Koropchak explained that most loans had been paid off. She reportcd on remaining principal balances and cash in the bank. Koropehak estimated cash flow projections for 2005, noting that the first payment on the Tappcr loan was due in July. Koropchak stated that the total receipts for 2005 are estimated at $1,072,941. Koropchak statcd that the EDA has made payments back to the liquor store in the past, usually waiting until later in the year to make that decision. Koropchak rcported that the expected cash balanec without repayment is $627,850.72. She noted that the recycling funds will change thc total funds available amount. Perrault asked about the parking lot project on Block 35 and whether the funds for that project could come from recycled funds. Koropchak noted the original funding had been intended for fayade improvements. Hoglund noted that the $200,000 originally allottcd by the FDA would have been matching funds. Koropchak noted that the reports presented would be going on to the Council for review and approval as requircd by the by-laws. 2 . EDA Minutes - 04/26/05 Koropchak noted that the summary included details the EDA's activity throughout the year. Koropchak stated that funding for the I3lock 35 project would have come from the Downtown Monticello Revitalization Fund. Lahr stated it was a fayade improvement program and was geared toward improving the back of the Block 35 buildings. The loan would have essentially matched $195,000 for $25,000 worth of improvements by the property owners. Mayer asked why the project fell apart. Schwientek explained that there were issues regarding parking coneerns. It was also noted that not all property owners wanted to participate in the project. Koropchak explained that when using EDA or HRA funds, a public purpose must be established. Koropehak continued with the 2004 report, noting that the EDA was created in 1989. The report shows approved loans through 2004, including approved paybacks and loan disbursements. She commented that since inception, the EDA has only had to forgive $27,000 in loans. . In explaining the tracking for specific funds and when they get paid back, Koropchak stated that the UDAG funds have been paid back and that the two of the SMERG have been paid back in full. The EDA is now into recycled funds 1()[ those programs. Schwientek asked how much the EDA owes to the Liquor Store. Koropchak stated that amount is $236,000. Lahr clarified that original purpose of the liquor store fund was to be start-up funds for industry. The City set aside funds from the liquor store for start-up enticement. Additionally, there are federal and state grants that can be received by businesses. The City has to match certain amount of those grants. Koropchak explained that the interest and principal on the loan is paid back to the City, which can then be used only for economic development. In terms of the federal funds, the City gets to keep all the principal and interest. The caveat is that the funding has to be accounted f(Jr separately. A recycled loan has to meet federal guidelines for job income by HUD guidelines. Koropchak stated that with state grants, the City keeps the first $100,000 in principal and interest, with the balance going back to the state. Those do not have to meet Hun standards. Wolfsteller asked which EDA loan returned principal and interest to the County. Koropehak responded that it was the loan to Standard Iron and noted that the City is only allowed a certain amount of grant funding per year. As Standard Iron paid their loan back, the funding went back to the County. . .., .) . . . EDA Minutes - 04/26/05 Mayer asked about which fund could be used for Block 35 improvements. Koropchak answered that the liquor store funding could be spent on anything. However, the EDA chose to spend it downtown. Demeules asked if the loan paybacks could be used to pay back the liquor store funds. Koropchak stated about $106,000 in cash could be paid back to the liquor store, which would deplete funds for projects downtown. Perrault asked if the funding could be used for the industrial park. Koropchak stated that was originally what it was intended to do. MOTION BY COMMISSIONER SCHWIENTEK TO ACCEPT TIlE 2004 YEAR-END FINANCIAL STA'fEMENT AND ACTIVITY REPORT FOR SUBMISSION TO THE CITY COUNIL ON MA Y 9th or 231W, 2005. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED UNANIMOUSLY. MOTION TO BY COMMISSIONER SCIIWIENTEK TO TABLE DISCUSSION ON PA Y BACK TO LIQUOR STORE fUNDS TO THE OCTOBER MEE'fING OF THE EDA. MOTION SECONDED BY COMMISSIONER WOJCHOUSKI. MOTION CARRIED UNANIMOUSL Y. 6. Consideration to review year-end balances of the GMEF, DMRF, UDAG, and LRG Funds. Koropchak reviewed the re-payments and disbursements of loan payments. Koropchak noted that additional funds are available for BDA in the MN Investment Fund. All other funds have been recycled from SCERG and UDAG fi.mds. Koropchak reported that the final close-out report for the Twin City Die Cast loan was submitted to the State. Oncc confirmed by the State, the EDA can start recycling those funds. Koropchak stated that the City had to extcnd timeframe for job creation. The State advised the City not to use the funds until jobs created. Koropchak completed a review of the summary of activity and financial reports for the noted funds, which was included in the EDA Commissioner's packets. 7. Considcration to review for amendment the Busincss Subsidy Criteria and bylaws of the EDA. Koropchak stated that it is requircd by thc bylaws for the EDA to review for amendment both the Business Subsidy Criteria and bylaws each year. 4 . . . EDA Minutes - 04/26/05 Koropchak explained that in terms of the Business Subsidy Criteria, amendments to the business subsidy criteria rcquirc a public hearing notice. MOTION BY COMMISSIONER HOGLUND TO ACCEPT THE BUSINESS SUBSIDY CRITERIA AS WRITl'EN. MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED UNANIMOUSL Y. MOTION BY COMMISSIONER SCHWIENTEK TO ACCEPT THE BY-LAWS OF THE EDA AS WRITTEN. Commissioner Perrault asked to staff to eonfirm that the by-laws ref1eet eorrect offieer appointments as noted earlier. Koropchak indicated that she will verify appointments are eorreet as listed. MOTION SECONDED BY COMMISSIONER WOJCHOUSKL MOTION CARRIED UNANIMOUSL Y. 8. Consideration of an update on the approved GMEF Loan No. 024 between the EDA and Tapper's Holdings, LLC. Koropehak statcd that no action was required on this item. Koropchak rcported that the attorney did request some minor changes to the loan document. The EDA' s attorney advised the EDA to stand firm on the request for promissory note and pcrsonal guarantee. Koropchak noted that the SBA may also eontributc financing, which puts the EDA in third position on the loan. Demeules stated that will not require action as it was not part of critcria. 9. Exccutive Director's Report Koropchak provided a brief report on UMC's and WSI'sjob creation. Koropchak stated that the lIRA's Transformation Ilome Loan had started to gencratc Icads. 7. Othcr Business. Mayer reportcd that the Council had authorized research of a fiber-optie baekbone for the City. Maycr stated that a workshop had been set for the 23fd of May. 8. Adjournment. MOTION BY COMMISSIONER LAIIR TO ADJOURN. 5 . EDA Minutes - 04/26/05 MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED UNANIMOUSL Y. -~.,-~,._,~,,-_... Recorder . . 6 . . . MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, August 9th, 2005 - 4:00 p.m. City Hall - Academy Room MEMBERS: Chair Bill Demcules, Tom Perrault, Waync Meyer, Susie Wojchouski, Darrin Lahr, Ron Hoglund ABSENT: Barb Schwientek STAFF: Executive Director Ollie Koropchak, Recorder Angela Schumann, Rick W olfsteIIer 1. Call to Order. Chair Demeules called the meeting to order at 4:00 PM, declaring a quorum. 2. Consideration to approve the April 26th, 2005 EDA minutes. Tom Perrault suggested that the slate of officers be listed within the minutes, and noted other corrections that should be made to the minutes. MOTION BY COMMISSIONER PERRAULT TO TABLE APPROVAL OF THE APRIL 261'1-1 MINUTES TO TJ-IE NEXT REGULAR MEETING OF THE EDA. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED. 3. Consideration of adding or removing agenda items. NONE. 4. Consideration to approve extending the non-performance date and to amend the loan position for approved GMEF Loan No. 024. Applicant: Tapper's Holdings, Inc. Koropchak reported that the GMEF Loan was a real property rehabi litation loan, which was approved by the EDA on February 1011\ 2005. The EOA had approved the loan for an expansion to the "H Window" building. The loan amount was for $200,000 at a 3.5% interest rate, which was amortized over 20 years with a balloon payment due in 5 years. Koropchak stated that in reviewing the loan criteria, it included a non-performance clause, which required funds to be disbursed within ISO-days. The guidelines allow for the disbursement payment to be extended up to 120 days based on a written request. Koropchak noted that the extension needs to be approved by the majority of the EDA members. Koropchak referenced a letter from Bill Tapper requesting the extension and . EDA Minutes - 08/09/05 requested forgiveness on the written 30-day notice prior to expiration of the non- performance date. Tapper was not informed of that requirement by statI. Koropchak stated that it is staff's recommendation to grant the extension for the full 120 days to December 101\ 2005. That time period allows Tapper the time needed to close on the loan. Perrault asked if the 30-day notice required was a City or State guideline. Koropchak confirmed that was a City requirement. Wojchouski noted that the 30- day waiver should also be included in the motion. Koropchak commented that when the EDA approved the loan, the EDA was in 2nd position to the lender. By the time the EDA and Tapper had signed loan agreement, the bank had requested that the EDA also he behind their loan fe.)l" acquisition of the building. Koropchak noted that she had subsequently received a call from the Central Minnesota Initiative Fund, who indieated that they were participating in the loan, as well. Koropchak provided the CMIF with the latest use and sources statement. It is her understanding that the City of Monticello and CM IF could be a shared position. Currently the loan is set up for the EDA to he in the 41h position and CMIF in 51h. Koropchak stated that when changing the agreement for these purposes, thcre will be added costs to Tapper. . Bill Tapper stated that he has not received notification of approval on the loan from CMIF. Koropchak stated that she had talked with CMIF who had confirmed it was approved, contingent on the EDA positioning. Koropchak noted that CMIF indicated that they would not accept the 51h position. Koropchak reviewed the process of the Small Business Administration approval. The SBA had involved the CMIF. Tapper explained that the SBA has originally approved an estimated loan of 1.2 million, based on the total project cost, which was after the EOA had approved the original loan. 'rapper stated that in the beginning, financing was coming only from the bank and the EDA as the SBA had denied the loan. However, the SBA looked at it again and approved it both locally and in California office. Whcn the loan came back to the local SBA for due diligence, it didn't qualify because the majority of the work done was for Strategie and not for Tapper's Holdings. So, Tapper re-submitted the loan for 'rapper's building purchase rather than the Strategic expansion. In turn, then the SHA brought in CMIF. Koropchak stated that currently, the fees lor the loan documents are close to $1200. The modification of the agreement will incur more. . Wojchouski asked Tapper ifin the case the 120 day extension is approved, will they he able to draw on it within that timct'rame. Tapper clari tied that they will get no money until they close. Wojchouski asked if the extension is adequate, Tapper indicated it would be. Koropchak stated that it can only be extended up to 120 days. Koropchak 2 . . . EDA Minutes - 08/09/05 noted if the extension is not approved, the EDA would approve for new application at a higher interest rate. MOTION BY COMMISSIONER W01CHOUSKI TO EXTEND TilE NON- PERFORMANCE DATE UP TO AN ADDITIONAL 120 DA YS FROM AUGUST IOTll, 2005, TO DECMBER 10,2005 FOR APPROVED GMEF LOAN NO. 024 WITII THE APPLICANT TO PAY LEGAL EXPENSES TO AMEND 'l'HE LOAN AGREEMENT AND TO WAIVE THE 30 DAY NOTTFICA nON PERIOD FOR EXTENSION. MOTION SECONDED BY COMMISSIONER HOGLUNO. MOTION CARRIED. Wojchouski asked Wolfsteller if there were repercussions to the positions on the loan. Wolfsteller stated that the difference between the 4th or 5th position does not really have a definable impact. However, the recommendation would be to share the 41h position. Tapper asked that the EDA make the motion on the positioning. Mayer agreed. Lahr noted that the difference between 4lh and 5th position was not worth CMIF possibly walking away. MOTION BY COMMISSIONER LAHR TO AGREE TO SHARED FOURTH POSITION ON THE LOAN TO TAPPER'S HOLDINGS, LLC, WITH OPTION TO MOVE TO 5th IF NECESSARY, WITH TI IE NOTATION THAT TilE APPLICANT PAY TIlE ASSOCIATED LEGAL FEES FOR THE IJOClJMENT CIIANGES. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED. 5. Consideration to discuss the late payment policv and continued delinquent payment of GMEF Supplement Loan No. 014. (Carl Bondhus. Eric Bondhus and Dennis Bondhus). Koropchak stated in February of 199X, the EDA had approved a loan for T1 Martin, located in the Oakwood Industrial Parle The original loan amount was an $87,500 machinery and equipment loan. At the request of the owners, the EDA had accepted a settlement of $18,000 out of the $45,000 still owed. Wojchouski asked why that was accepted. Koropchak explained that the EDA tried to work with the owners and created a supplement loan agreement, which was entered into with three owners as borrowers and a replacement promissory note. Koropchak noted that payments on this new loan amount arc due on the 1 SI of each month. Koropchak reported that they are in def~lUlt of their contract, as payments are delinquent. Administratively, the City has been accepting three independent checks, as loan was with the three individuals. Koropchak stated that the City consistently gets two of the three checks only, which puts the loan into default. Koropchak explained that after this loan, the EDA amended their criteria to add a late penalty for $250 if payments " -) . EDA Minutes - 08/09/05 are more than 1 month late. Koropchak stated that for June, the 3rd check was again not received, triggering the late fee. In summary, the owners do not want to pay the late fee. Koropchak stated that she had brought this matter to the EDA as she is concerned about the administration problem this has created. Koropchak stated that the EDA could go to conciliation court, or call the loan. Koropehak stated that the balance due is about $4800, with the loan to bc paid ofT in May. Koropchak stated that the EDA could also send a letter requiring one check. Lahr stated that they could also accrue the late payment and then go to court at last payment. MOTION BY COMMISSIONER LAI-IR TO CONTINUE TO TRACK THE LA'fE FEES PER LOAN AGREEMENT AND ACCEPT PA YMENTS ON A MONTHLY BASIS AS REQUIRED. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED UNANIMOUSLY. 6. Executive Director's Report . Koropchak presented the HRA' s annual TIF reports, noting that the Twin City Dic Cast loan was closed by the state, and the funding could be reused by the EDA. Koropchak reported that Dahlheimer's is relocating to the industrial park, the HRA is currently working on contract for privatc development. Koropchak stated that the inlh1structure will be completed by August 2005. Koropchak also reported on conversations with other business prospects for the City industrial park Wojchouski inquired where leads are from. Koropchak responded that they come trom various sources. Koropchak stated that not aU leads meet the required criteria for job and wage levels. Koropchak inquired ofthe EDA if businesses arc willing to pay the market ratc, does the City still want them to be able to purchase property at market ratc. Lahr stat cd that if they mcct the covenants, there may not bc a way to prevent that. Lahr stated that the goal is to grow the local high end job employment base. If businesses do not meet that goal, they should need to pay a premium for the land. Mayer stated that another good question for businesses is the rctcntion of employces. Dcmueles notcd that the covcnants also would protect that land values. Wolfstellcr pointcd out that thcse potential businesses would be paying market rate and building a good bui lding. Lahr stated that this group believcs there is more bencfit to the high-cnd jobs and thc City owned park allowcd us to set the parameters with high paying jobs being the goal. Bill DeMueles mentioned Standard Iron's upcoming birthday celebration. . 4 . EDA Minutes - 08/09/05 Koropchak indicated that the Fiber Optics task force will go to Council on August 22nd with a recommendation. Charier and TDS will be invited to an upcoming Fiber Optics meeting in terms of long term planning for services. Lahr reported on tbe meeting held to look at efficiencies in the City's organizational structure. The meeting was set up to look at the potential of merger of some of the organizations. Koropchak stated there arc pros and cons of mergers. She stated that the EDA by statute has more powers than the I IRA. The EDA powers arc created by ordinance rather than an enabling resolution. I lowever, the EDA cllrrently only administers the loans. A potential recharter could absorb HRA and EDA. Koropchak notcd that the EDA includes 2 Council members as voting members, and represents a more direct rcpresentation. Koropchak stated wbile a merger may cut down on meeting times, there would still be tbc same amount of preparation and potentially a longer meeting. Koropchak urged the bDA to voice their opinion on the matter to the Council. Lahr stated that at the time of previous discussion on a merger, the Cllrrent structure stayed due to the feeling that there was more community representation and citizen involvement in the decision-making process. 7. Other Business. . NONE. 8. Adjournment. MOTION BY COMMISSIONER LAHR TO ADJOURN. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED UNANIMOUSL Y. Recorder . s . . . EDA Agcnda - 10/25/05 4. Considcration of a presentation and proposal for VisiCom, Inc. DMRF Loan No. 111. A. Refcrence and backeround: Bruce Hamond, VisiCom, Inc., will give a brief presentation on the improvements to the existing building and future plans for the vacant lot along West Broadway. Additionally, he will present two proposals to the EDA for DMRF Loan No. Ill. The outstanding principal balance ofDMRF Loan No. III is $S,OOO. Principal and interest are due November I, 200S, thc extended balloon payment date. Background: This intcrior rehabilitation loan in the amount of $1 0,644 was the only DMRF loan approvcd by the EDA. Unlike the GMEF Guidelincs and Busincss Subsidy Criteria, the DMRF Guidelines for rehabilitation loans are less restrictive only stating: Loan amortization schcdule not to exceed ten ycars, balloon payment in five years. There is no reference to cxtending thc balloon payment, perhaps, becausc the maximum loan amount is the Icsser of 2S% of total cost of improvements or $20,000. On October 26,2004, the EDA approved extcnding the balloon paymcnt date ii-om November 1,2004, to Novcmber 1, 200S, associatcd with the Loan Agreement between thc FDA and VisiCom, Inc. dated April 10,2001, and requesting a principal and interest payment which would result in a remaining principal balance of$S,OOO, paymcnt due Novembcr 1, 200S. In April, 2004, the FDA approvcd extending the balloon payment date from May I, to November 1, 2004, or six months. This was to coincide with such time the lender, First Minnesota Bank, approved a new loan combining thc cxisting bank loan and thc new loan for the proposed construction of a building on the vacant lot locatcd on the second block along West Broadway. At that time, it was Mr. Hamond's plan to construct a two~story 1,600 sq ft per 11oar, rctail/office building. Sccond 110ar bcing rental housing or officc. The extcrior facade of the existing building and the ncw constructcd building was proposed to have a uniform look. With a confirmation letter from First Minnesota 8ank and a $2,000 paymcnt from VisiCom, Inc., the request for the extension was approved. Principal balance as of May 1, $6,073.01. The EDA approvcd DMRF Loan No. III on August 29, 2000, and the rehabilitation loan was disbursed on April 10, 2001, in the amount 01'$10,644, S.S% interest rate, amortized over 10 years; provided, however, the entire remaining unpaid balance of principal and interest shall be due and payable in full on May I, 2004. The paymcnts of pri ncipal and interest shall . 2. . 3. 4. 5. C. EDA Agenda - 10/25105 commence on May I, 2001 and continue on the first day of each and every month thereafter until paid in full. On July 19,2001, the EDA approved an annual payment ofprincipal and interest (.$1,389.36). . . The current principal balance of DMRF Loan No. III is $5,000. ThcFinance Department will run an amortization for the interest amount due November 1,2005, and will be distributed at the FDA meeting. Mr. Hamond will bc at the EDA to give an update and present his two proposals. B. Alternative Action: 1. A motion to approve extending the balloon payment datc from Novcmber I, 2005, to for thc Loan Agreement between the Monticello EDA and VisiCom, Inc. dated April 10, 2001, and requesting a principal and interest payment of due Novcmbcr 1,2005 A motion to approve calling for the balloon payment of $5,000 principal and $ interest due November I, 2005, fc)r the Loan Agrccmcnt between the Monticello EDA and VisiCom, Inc., dated April 10,2001. A motion to accept Proposal No. 1 as presented by Mr. Hamond. A motion to accept Proposal No.2 as prcscnted by Mr. Hamond. .A motion to table any action. Recommendation: No recommcndation is given as stafTis unaware of the exact requcst. Ifthc rcquest is to extend, staff does recommend the request be supportcd by a Iettcr for thc lender. Staff did recommend an extcnsion in October 2004 for these reasons: This a DMRF Loan with less dollar risk, no specific DMRF Guidelines relating to balloon date extension, sufficient EDA funds, eneoUfages spin-off downtown redevelopment, given lenders letter stating approval tllr construction financing subject to bank appraisal and first floor tenant lease, and recommendation by lender to cxtend for six months. . 2 . . . EDA Agenda - 10/25/05 5. Consideration to discuss and to authorize payback of the EDA Fund. A. Reference and back2:round: At thc annual meeting of April 26, 2005, the EDA commissioners made a motion to tablc discussion on payback to Liquor Store Fund to the October meeting. The EDA Business Subsidy Criteria, Original Revolving Loan Funding reads: "City shall transfer needed loan amount from existing accounts at such time that individual loans are approved. Revenue created through this program shall be under the control of the EDA and shall not be transferred to the City funds unless the City Council determines that reserves generated are not necessary for the successful operation of the Authority. If such is the case, such funds must be transferred to the debt service funds of the City to be used solely to reduce tax levies for bonded indebtedness ofthe City (see Section 5 B of the ordinance cstablishing the Monticello EDA)." The total amount transferred by the City from the Liquor Store Fund to the EDA lor approved GMEF loans was $383,000. In 2001 and 2003, the EDA authorized payback of funds in the amount of $77,000 and $70,000, respectively, to the Liquor Store Fund. Whcther the payback of$147,000 was applied toward reducing the tax levy, I'm unclear. In support of the Downtown and Riverfront Revitalization Plan and because Federal/State Grant dollars arc for economic development and job creation, the Council earmarked $200,000 of the Liquor Fund dollars for the Downtown Monticello Revitalization Fund (DMRF), a matching grant program. Of the $200,000, $143,890.66 was spent. Section 5B of the Ordinance reads as follows (The Ordinance prevails over the Bylaws.): "Except when previously pledged by the Authority, the City Council may, by resolution, req uire the Authority to transfer any portion of the reserves generated by activities of the Authority that the City Council determines are not necessary for the successful operation of the Authority to the debt scrvice funds of the city to be used solely to reduce tax levies for bonded indebtedness ofthc City." . EDA Agenda - 10/25/05 In previous years, its becn the desire of the EDA commissioncrs to payback the original amount of the Liquor Store Funds. Thc outstanding balancc of the original $383,000 is $92.1 09.34. Total amount of approved loans Less payback and commitment 2001 payback 2003 payback DMRF cxpenditurcs Total payback and expenditures OlJTST ANDING BALANCE $383,000.00 $ 77,000.00 $ 70,000.00 $143.890.66 $290,890.66 $ 92,109.34 Should thc EDA desire to payback the outstanding balance of $92, 1 09.34, this means there are no longer any non~ITstrictivc funds available for downtown redevelopment as the grant funds are earmarked for job crcation and industrial development. At the annual mceting of the EDA in April, the EDA-G-MEF cash in bank was $978,831.60. The expccted cash balancc at the end of Deccmber 2005 was $627,850.72 which included the disbursemcnt of thc Tappcr Holding LLC loan in the amount of $200,000. . The principal and intercst payback from thc UDAG-FSI ($334,274) and the SCREG-Aroplax ($124,019) have bcen re-cycled into the EDA-GMEF. IIowever, thc MIF- TCDC grant of $500.000 (Federal dollars) plus intercst payback and M I F-UMC grant of $1 00,000 (State $290,000 dollars) plus interest payback are sources of funds available to thc EDA and have not becn recyclcd. The total estimated principal and interest payback of those two grants is approximately $720,700 with balloon paymcnts due in 2007 and 2008 respcctively. B. Alternative Action: 1. A motion to authorize payback of thc EDA Fund in the amount of $ to thc City Liquor Storc fund or to reduce the tax levy. 2. A motion to deny authorization of payback of the EDA Fund. 3. A motion to table any action. c. Recommendation: . If the desirc of the FDA is to payback the Liquor Store Fund or to reducc the tax levy, the Administrator and Executive Dircctor support the EDA commissioners recognizing thc rcmaining funds are rcstrictivc, there is an adequatc cash balance, and thc Council may, by resolution, requirc transfer of funds in the future. MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY GREATER MONTICELLO ENTERPRISE FUND (GMEF) 2005 CASH FLOW PROJECTION eBEGINNING CASH BALANCE, January 2005 RECEIPTS Appropriations, Expected - GMEF Notes Amortization Payments - Tapper Inc. Muller Theatre SMM, Inc. Aroplax Corp. Custom Canopy, Inc. Standard Iron Vector Tool Tapper's II SELUEMED T.J. Martin ($547.60 Mo.) 6-06 Mainline Distrib. ($702.08 Mo.) 6-04 Aroplax Corp. II ($730.93 Mo.) 12-04 TCDC IRTI E DMA ($193. 89 Mo.) 9 - 06 VisiCom 11-05 UMC ($1,084.33 Mo.) 3-08 Tapper III($524.76 Mo.) 5-08 WSI ($1,483.49 Mo) 6-09 Tapper Holdings ($1,417 Mo.) 7-10 Interest Income - Investment (est.) Loan Fees Loan Fees Other Miscellaneous e TOTAL RECEIPTS TOTAL BEGINNING BALANCE AND RECEIPTS EXPENDITURES GMEF Loans - Tapper's Holdings Other Re-payrnent to Liquor Fund 2005 DMRF Grants Professional Fees Block 35 (Liquor Fund) Legal Fees eMiscellaneous TOTAL EXPENDITURES EXPECTED CASH BALANCE, December 2005 $ 978,831.60 $ -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- $ 6,571.20 $ -0- $ -0- -0- -0- $ 2,326.68 $ 5,000.00 $ 13,011.96 $ 6,297.12 $ 17,801.88 $ 8,900.94 $ 30,000.00 $ 200.00 $ 3,000.00 $ 1.000.00 $ 94,109.78 $1,072,941.39 $ 200,000.00 $ 100,000.00 -O- S 100.00 c' 143,890.66 .;> c- 1,000.00 .! $ 100.00 $ 445,090.66 $ 627(850.72 4It 4It 4It CHAPTER 3 ECONOMIC DEVELOPMENT AUTHORITY SECTION: 2-3-1: 2-3-2: 2-3-3: 2-3-4: 2-3-5: 2-3-6: 2-3-7: Creation Officers and Meetings Staff Functions, Powers, and Duties Limitations of Power Budget and Annual Report Modification AN ORDINANCE OF THE CITY OF MONTICELLO, WRIGHT COUNTY, MINNESOTA, PROVIDING FOR THE CREATION OF AN ECONOMIC DEVELOPMENT AUTHORITY. WHEREAS, the City Council for the City of Monticello (hereinafter referred to as the "City") has the authority to establish an Economic Development Authority (hereinafter referred to as the "Authority") pursuant to Sections 469.090 to 469.108, inclusive, as amended, (the "Act") of the Minnesota Statutes; and WHEREAS, all due process requirements for the establishment of the Authority, including the public hearing, have been met; and WHEREAS, based on all information present, the City Council hereby finds that the establishment of an Economic Development Authority is in the best interest of the City. NOW, THEREFORE, THE COMMON COUNCIL FOR THE CITY OF MONTICELLO DO ORDAIN that an Economic Development Authority to be known as "the City of Monticello Economic Development Authority" is hereby established pursuant to Sections 469.090 to 469.108 inclusive, as amended, of the Minnesota Statutes, which Authority shall operate according to this ordinance enacted pursuant to the charter of the City on the following terms and conditions which shall be adopted as the bylaws of the EDA. 2-3-1: CREATION: (A) The Economic Development Authority shall be composed of 7 members to be appointed by the Mayor and confirmed by the City Council. (B) Two of the members shall be members of the City Council. The terms of office of the two members of the City Council shall coincide wi th his/her remaining term of office as a member of the City Council. MONTICELLO CITY ORDINANCE TITLE II/Chpt 3/Page 1 . . . (C) The remaining five (5) members shall be initially appointed for terms other than the terms being served by a member of the City Council. Those initially appointed, including council members serving on the EDA, shall serve for terms of one, two, three, four, and five years respectively and two members for six years. If the two Council members appointed to the EDA have council terms that coincide, then their terms of service on the EDA spall also coincide. Thereafter, all commissioners shall be appointed for six-year terms, except that any person appointed to fill a vacancy occurring prior to the expiration of the term which his/her predecessor has been appointed shall be appointed only for the remainder of such term. Upon the expiration of his/her term of office, the member shall continue to serve until his/her successor is appointed. (D) All members shall serve at the pleasure of the City Council. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. (E) The city Council shall make available to the Authority such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The Authority shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. (F) A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2-3-2: OFFICERS AND MEETINGS: (A) The Authority shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A member must not serve as president and vice president at the same time. The other offices may be held by the same member. The other offices of the secretary and assistant treasurer need not be held by a member. MONTICELLO CITY ORDINANCE TITLE II/Chpt 3/Page 2 . . . (B) The Authority shall adopt rules and procedures not inconsistent with the provisions of the ordinance or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of the business. The Authority shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each member on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the Authority shall be a public record, except for those items classified by law as non- public data. . (C) The Authority shall meet at least quarterly. Special meetings may be called by the Chairperson as needed. (D) All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the Authority. 2-3-3: STAFF: (A) The Economic Development Director shall be designated as Executive Director of the Authority. (B) Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. 2-3-4: FUNCTIONS, POWERS, AND DUTIES: (A) Except as specifically limited by these provisions in Section 5 of this ordinance, the Authority shall have the authority granted it pursuant to Minnesota Statutes 469.091 - 469.107, or other law. (B) The Authority shall manage the Greater Monticello Enterprise Fund (the "Fund" ) the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. (C) The Authority may be a limited partner in a partnership whose purpose is consistent with the Authority's purpose. MONTICELLO CITY ORDINANCE TITLE II/Chpt 3/Page 3 . . . (C) All official actions of the Authority must be consistent with the adopted comprehensive plan of the City and any official controls implementing the comprehensive plan. (D) The sale of all bonds or obligations issued or levying of taxes by the Authority shall be approved by the City Council before issuance. (E) The affairs of the Authority shall be limited to promoting the growth and development of commercial and industrial concerns in the city of Monticello. (F) The Authority must submit administrative structure and management practices to the City Council for approval. (G) The Authority shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 2-3-6: BUDGET AND ANNUAL REPORT: (A) The Authority shall prepare an annual budget projecting anticipated expenses and sources of revenue. The authority must follow the budget process for City departments as provided by the City and as implemented by the City Council and Mayor. (B) The Authority shall prepare an annual report describing its activities and providing an accurate statement of its financial condition. Said report shall be prepared and submitted to the City of Monticello by March 1st each year. 2-3-7: MODIFICATIONS: (A) All modifications of this ordinance must be in written form and must be adopted in accordance with the charter of the City. (4/10/89, #172) MONTICELLO CITY ORDINANCE TITLE II/Chpt 3/Page 5 . . . (D) The Authority may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds and the full faith, credit, and resources of the City or such revenues as may be generated by proj ects undertaken by the Authority. (E) The Authority may cooperate with or act as agent for the +ederal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the act or any other related federal, state, or local law in the area of economic development district improvement. . (F) The Authority may annually develop and present development strategy and present it to the City consideration and approval. an economic Council for (G) The Authority may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. (H) The Authority may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and wi thin a reasonable time, furnish the Authority or its employees or agents such available records or information as may be required in its work. The Authority or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. 2-3-5: LIMITATIONS OF POWER: (A) The Authority may not exercise any specific powers contained in the Act or Minnesota Statutes 462, and Minnesota Statutes 469.124 - 469.134 without the prior approval of the City Council. (B) Except when previously pledged by the Authority, the City Council may, by resolution, require the Authority to transfer any portion of the reserves generated by activities of the Authority that the Ci ty Council determines are not necessary for the success ful operation of the Authority to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. MONTICELLO CITY ORDINANCE TITLE II/Chpt 3/Page 4 . . . EDA Agenda - 10/25/05 6. Consideration to discuss incentive for use of Federal e:rant dollars. A. Reference and backe:round: This is a discussion item to get some feedback from the EDA Commissioners. Any follow-up would nced to be reviewed by the Council, EDA Attorney, and Carol-Pressley Olson at the State. As you were informed previously, the State closed the MIF Grant to the City of Monticello/Twin City Dic Castings per the letter of June 20, 2005. IIowever, the City must continue to report loan repayments and use of city funds each year. This report is due by January 25th of each year. The $500,000 grant to the City was Federal dollars which means the city retains the $500,000 plus interest f()r the purpose to establish and maintain a revolving loan fund. As of December 2004, of the expected $595,747 principal and interest payback, $270,130 had been paid by TCDC. To date these dollars have not been recycled or used by the EDA. The last payback payment by TCDC is due June 2007. As you recall when the EDA recycles this money, the new applicant must meet the objectives of the HlJ D. Fifty-one percent of the jobs will be "held by" low and moderate income persons. Attached is the job information form to be completed by the applicant and employee. This is submitted to the EDA otlice and forwarded to the State. Additionally, the applicant must comply with thc Davis-Bacon Act and a few other things. The good news is once the original grant money is recyclcd to a new applicant(s), the HUD objectives no longer apply. In order to encouragc the use of this somewhat restrictive dollars and as an extra bonus or incentive for users of the new industrial center, perhaps the EDA/City could offer terms at 3% below prime interest rate, 0% interest rate, deferred interest or principal payments, or whatever. According to our current criteria of $10,000 per job, an applicant(s) will need to create 60 jobs in order to recycle all the dollars. Again, I'm looking ftJr feedback. The next steps would be to clear with the State, request Council's approval and request the EDA Attorney to draft an addcndum or amendment to the EDA Business Subsidy Criteria. Last tiling would be a public hearing and approval of criteria. Attached is the closeout Ictter and job creation form. . . . June 20, 2005 Honorable Clint Herbst Mayor, City of Monticello City Hall 505 Walnut Avenue, Suite 1 Monticello, Minnesota 55362-8822 RE: Minnesota Investment Fund Program City of Monticellorrwin City Die Casting Dear Mayor Herbst: This is written to inform you that we are changing the status of the Twin City Die Casting Minnesota Investment Fund project from "ACTIVE" to "CLOSED, PROGRAM INCOME." I have enclosed a copy of the Grant Adjustment Notice implementing this change. I wish to thank Ollie Koropchak of your staff for her diligence and professionalism in administering this grant. If you have questions, please feel free to call Carol Pressley-Olson of my staff at 651- 296-3898. Sincerely, .") \. \\ \ ---~~ Paul A. Moe, Director Office of Business and Community Finance cc: Ollie Koropchak Rick W olfsteller Doug Harmon Department of Employment and Economic Development Ist National Bank Building · 332 Minnesota St., Suite E200 . Saint Paul, MN 55101.1351 . USA 651.297.1291 · 800.657.3858. Fax 651.296.8833 · TTYtrDD: 651.296.3900 . www.deed.state.mn.us An equal opportunity employer and service provider. . GRANT ADJUSTMENT NOTICE ECONOMIC DEVELOPMENT PROGRAM Department of Employment and Economic Development Grant #: CDAP-99-0122-H-FYOO Grantee: City of Monticello Project Title: Twin City Die Casting Company Adjustment #: 6 THE FOLLOWING ADJUSTMENT IN THE ABOVE GRANT PROJECT IS APPROVED A. The status of this grant is now CLOSED. PROGRAM INCOME. Code: ~ Former status was ACTIVE. Code: ! B. The award amounts for this grant are final as follows: Former Change Final . MIF $ 500,000 $ 500,000 500,000 Other 5,036,110 1,176,021 6,212,131 Total $5,536,110 1,176,021 $6,712,131 Plus $210,000 in TIP C. Other I. The City of Monticello must continue to report on loan repayments and the use of the city's revolving loan fund, pertaining to the repayment of the Twin City Die Casting loan, on a yearly basis. This report, which is attached, is due by January 25 of each year. tA-/2.n-- ~ - Of Sb>?- to 1;2.0 I 65 . Carol Pressley-Olson, Senior Loan Officer Date Monticello. TCDC. GAN3 .closeout . a.a&&"..."" .v:....l>O.$.. "fCl\'~ 'i . -. L. Jfi \:,~~~.... "lo.~.." ......""......... .c <:>0 '" 0 ..... 5 'E <<l ~ < ;;: <<l ..... 0 E g '0 0 ~ '" ..... ., ., > ,0 0 6 '-' :g ., i5. ., i tI'l 0 - l-l 0 ~ a.l ~ ~ ~ a.l l-l b.() 0 l-l Q.c . a.l S 0 I:J = ...... 5 E b.() 0 '"' Q.c ., 6 <<l Z <.> '" ;;: <<l ..... ~ . ] E := Z ;;: E o u '" '0' ..... 0... ~ != '<t + ~.... u..~E ..J;;~ 0:::Q:l:;:o, r..: ~ '" o '" 6 ..... <u ..... '" '" "".<::;:::J --... ~ 002 0,- f- 0 -0 ., cog 66... E '" ..J <~o::: ;;.36 0,,-0 f-o"::: v; ~~~ o;:io ~ E 0 '" >Of- Sfr"2 <0:::;:; ;;~,.!,! 00'0 f-..JU wi- ~ g ~ z: :::;) '"" z: < o ..J C z: ;; ..J o ;;.. ~ Z ~ :; ... :; ~ " Z "'I': o ..J 0:: "- 0 0'0 ~~e EUJ <';;O~ Or" ]S~ ~.50::: ..-i = <= <<l <u .... Q E O..J >. o ... <<l - ~ ~ 8u::~ N '" ;;: o E S ] ~ Q, 00<.> f-..JO::: ....: '? V) <1.i 0;; '0 g Q, := '" E '" E S Q, ~ ~ .2 1>1) = 'C ,0 S = o ~ '" = .S: ~ <!) ,0 ..... '-' '" o '0 '5 = '- ..... o.i 'E 'C '" -= '-' '" g ~ <<l '" C '" E >. '" Q, ~ :-;:: '" C; <.> :a .s <Xi 'C <u 01) C,) e ~ .- ., Oij c>= ~.38 <Xi - 'C o 01) ., <<l l'? .... ..... Oij "'0_ > >- ;f.38 r..: :EE ..J.E; Ie ..... 'g = "B ., 0::: E o .... 'C ~ Q V) ..... "" ~ 'g :>c;tf wi- - E ~ -ti '" '0 = 8- >< '" '" c; ::l 0 E .. <u ;; '-' :a .E 'C I: <<l '0 ~ 8- Q, '" '" ~ ., 5 - '" -5 '" .~ :E ~ .... ., .<:: i 0 '" >. j c <<l ~ " Q ..... ~ '-' '" ., '" 0 l <:7\ ..5 - II '" .... ..... ~ ., ., -. .s~ N ..... c '" 1a 0 .3~ ....: ;; > o ~l:L2 o Q,O<<l ...l< o ... ...l 0::: E .g II) ;; 't:l .9 '" ., '" .g CI) V '" E .~ ~Z'O~ <II .3<:7\ ~ ~ "1: ~ -~ S1 ~ "E- ~ Q I g ~ :i ~ JOB INFORMATION FORM . The development of this project and the creation of these jobs is being assisted with Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) provided to the company by the City of Monticello which it received from the Minnesota Department of Employment and Economic Development (DEED). . The objective of the CDBG program is to create/retain jobs, of which a minimum of 51 % will be "held by" low and lTIoderate income (LMI) persons. An LMI person means a member of a family having an income equal to, or less than, the Section 8 low-income limit established by HUD. The family's entire income must be counted. A family is all persons living in the same household who are related by blood, marriage, or adoption. An individual living in a housing unit that contains no other person (s) related to hiIn/her is considered to be a one- person family for this purpose. Adult children who continue to live at home with their parent(s) are considered to be part of the family for this purpose and their income must be counted in determining the total family income. A dependent child who is living outside of the home is considered for these purposes to be part of the family upon which he/she is dependent, even though he/she is living in another housing unit. Certain information must be collected regarding the position and the employee accepting the position. This information will not be disclosed or released by this office without your consent, except to the City of Monticello or its agent, DEED and to HUD. This form will be completed for each position created or retained. . . . . EMPLOYEE CERTIFICA nON (To be completed by the Employee) The information in this section is asked for the sole purpose of gathering data. The data is compiled and provided to the U.S. Department of Housing and Urban Development for purposes of evaluating compliance with Civil Rights laws. The employee accepting this position is: Female Male Female Head of Household ~ Person with a disability The employee's household: _(1) White _ (3) Asian _ (5) Native Hawaiian/Other Pacific Islander _ (7) Asian & White _ (9) American Indian/Alaskan Native & Black/African American _ (11) Is the household of Hispanic heritage? _ (2) Black/African American _ (4) American Indian/Alaskan Native (6) Amcrican Indian/Alaskan Native White - (8) Black/African American & White - (10) Other Multi-Racial (12) Arc you eligible for Section 8 housing? The information in this section on family income (for the past 12 months and prior to acceptin2 this position) is requested to document that the federal funds providcd for this project are benefiting a minimum of 51 % low to moderate- income persons through job creation and/or retention. The information will be reviewed by the City of or its agent and the MN DEED. The information you provide is governed under the MN Government Data Practices Act. The annual salary or hourly wage of the job that you are tilling is irrelevant. What is the number of adults and children living in your household? Please check the appropriate response across from the family size you listed above. Family income includes gross wages generated from all family members 18 years and older. 1 member $40,250 or less _$40,251 or more 2 mcmbers $46,000 or less $46,001 or morc 3 members $51,750 or less _$51,751 or more 4 members $57,500 or less $57,501 or more 5 membcrs _$62, 100 or less $62,101 or more 6 mcmbers _$66,700 or less $66,701 or more Per 2004 Section 8 Income Limits for Wright County (Mpls. St. Paul SMSA) Ifmore than 6 family members, state total family incomc: $ If requested, I would agree to make my financial records available to the city or its agent for vcrification of the abovc information. I certifY that this income information is, to the best of my knowledge and belief, a true, correct and complete statement of my financial condition as of the date stated herein and I understand that this information is subject to verification by authorized representatives of the City of Monticello and or its agent. Home Phone N limber Date Signature (Employee) Printed Name 2 . . . COMPANY CERTIFICATION (To be completed by the Company.) Wages and Benefits Total annual hours for th is position Hourly wage exclusive of benefits. Hourly value of benefits. Benefits that apply to this position: Health Dental Life Insurance Retirement == Long/Short Term Disability Other (Please describe) I certifY to the following: That was hired for on Date Employee Job Title _ That this position meets the "held by" LMI criteria as outlined on Page 2. _ That this position does not meet the LMI eriteria. Date Company Officer GRANTEE CERTIFICATION (To be completed by the Grantee) I acknowledge that I have reviewed the above information and it meets the following criteria: _ "Held by" an LMI person Non~LMI Project Director Date M onlicello.TC DC, 2004johin fiJ. . . . EDA Agenda - 10/25/05 7. Executive Director's Report. a) Landmark Square II - HRA Contract amended to read: As a condition of the Authority approving the provision of Available Tax Increment to the Developer to assist in defraying the Land Acquisition Costs, the three residential properties on the Development Property shall not be relocated to any site within the city. Parking requirements satisfied by "Proof of Parking" and additionally there was a miscalculation of parking stalls. b) Rocky Mtn Group LLC (Dahlheimer) - Due to an incorrect legal description on the annexation order and the re-plat, the property is treated as "torrens" land. This caused a delay in recording of the plat and the closing date. In order to allow the developer to begin construction prior to elosing, a License Agreement was executed. I believe all documents are signed. plans approved, and fees collected for issuance of a building permit on September 27, 2005. Closing or conveyance of property is anticipated on or before Octoher 14,2005. The License Agreement was amended to extend the termination date to October 31, 2005, allowing redeveloper to continue construction of walls and roof structure. The closing was delayed because of title issues. c) Twin City Die Castings - TCDC /St. Cloud Technical College are applying to the Minnesota Job Skills Partnership for an approximate $250.000 Training OnUlt. The grant would be used to support advanced automated manufacturing training for the 260 Monticello and Minneapolis employees. The training would take place at the Monticello facility over an expanded time period. ADDITIONALLY - It is my understanding TCDC applied for a variance for a 5,000 sq. ft. metal accessory structure. After denial of the variance and a meeting with city staft~ it was reported TCDC agreed to expand their existing 36,000 sq ft facility. At the Outdoor Storage meeting, a TCDC representative reported an expansion to the existing building was not economical and they may look to lease space in Buffalo. In speaking to the owner, Doug Harmon, thereafter, TCDC plans to and has approval to construct outdoor storage: concrete slab. fencing and landscaping. Due to the revised application requirements and process, the application was incomplete, requires drainage and utility information. d) Manufacturer of food hases, sauces, and seasonings - Paul Kleinwachter, John Simola, and Koropchak visited this company located in Dayton on September 21. The 1956 f~lInily-owned business is looking to construct a 20,000 sq ft facility on approximately 2-acres spring 2006. With no adverse impact to the Waste Water Treatment Plant, a proposal and cover letter was mailed to the company. Paul, thanks for your nice letter. Total of twenty full-time permanent jobs at an average wage-level of at least $20.70 ph without benefits. Sixteen jobs out of the MN facility. Their contractor, Keystone Design Build, stopped in the City Hall for information. Company doing bio-testing this week. Down to Monticello and Osseo. e) Attended the ribbon cutting for PinnaeleFinancial, Thomas Circlc, September 16. Dragon Fly Open House and Loch's Retirement Celebration on September 22. Electro Industries' Open I-fouse, September 28. . EDA Agenda - 10/25/05 . f) UMC $290,000 Minnesota Investment Fund Loan final report submitted to State. Mortgage Subordination Agreements executed by City and EDA for refinancing TCF loans. g) Tapper's Holding Company - Approved GMEF Loan of $200,000 has not closed but anticipated any day. The EDA loan is in 5th position behind the CMIF. This decision was made because with a shared position, the CMIF required an Intercredit Agreement and the lender advised against the shared position. h) Soon to close on a Transformation Home Loan. i) Fiber Optic Task Force began developmcnt of a request for proposal (RFP) on September 29 and will continue meeting until completion of final draft for consideration by Council on November 14th. j) Letter Irom Office of State Auditors regarding questions on the 2003/2004 T1F reports. Response mailed October 10th. k) Survey by League of Minnesota Cities - Compiling data from communities who have used eminent domain for purpose other than public improvements. (HRA-O'Connor parcel in 2(01). I) Follow-ups - 200,000 sq it manufacturer ~ United Properties (no response) Great River Energy Headquarter Building - Looking for 60 acres. Elk River offered 60 acres for $1 but not interested. New Presidcnt wants Maple Grove area for image purpose. 30,000 sq ft machine shop (gave olTer/not interested) I'm OK with this. 60,000 sq ft builder of dump bodies, grain bodies, and trunk hoists. Rcsponded with first preliminary infc)f)llation and talked via phone. Needs outdoor storage. m) Blue Chip Development - Barger 25,000 sq n expansion. HRA needs to release Mortgage on Vector and Contract on Blue Chip. Final plat on the Council agenda October 24. n) Marketing Committee - Mailed post cards to about 60 precision machining and medical equipment companies. Ad in Minneapolis Sunday paper classified ads. 0) EDA Bylaws and Ordinance: Treasurer, Assistant Treasurer, and Secretary. When Bylaws were re-typed, it was incorrectly changed assistant treasurer to assistant secretary. Since corrected. Ron Hoglund is the EDA Assistant Treasurer. p) A VR - The Planning Commission denied the re-zone from II-A (Light Industrial) to 12 (Heavy Industrial). The Council over-turned the Commission and voted 4-1 to re- zone to Heavy Industrial. The city has made an offer to A VR for their existing property and approximately 12-acres on the city-owned industrial land. A follow-up meeting with A VR is scheduled for October 24, 5:00 p.m. q) Chelsea Road extension - The rain delayed the reconstruction and realignment of 90th Street at Chelsea Road. The utility and road/curb construction appears complete. Final lift to the road will be in the spring. Chadwick and myself checking on ribbon cutting event. . 2 . . . Monticello EDA Ollie Koropchak 505 Walnut Street Suite 1 Monticello, MN 55362 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 Tax 10 No. 41-1225694 A .,~. ?- ~ L) , ~'rn ; J?JO Ie; c=: c:' \ ~ (' i'\ lc) L\ \.9 j r- ')~ I v G Vyl (;:: o l~ Throuah Julv 31. 2005 MN325-00015 Replacement of T J Martin Loan Agreement 36.00 August31,2005 Total Current Billing: 36.00 1 declare, under penalty of law, that this account, claim or demand is ju t and correct and that no part of it has bee aid.