EDA Agenda 04-23-2002 ANNUAL M[~~ETING AC~~~NDA
MONTICELI,O ECONOMIC. DEVh~LOPMENT AC1TI10RITY
1a 'T'uesday, Apri123, 2002 - 4:U0 p.m.
City Hall -Academy Room
MCMB ERS: (:hair Bill Detneules, Vice Cllair Barb Schwientek, Assist Treasurer Ken Maus,
('lint Het'bst, Roger Carlson, Ron Hoglund, and [)arrin Lahr.
STAFF : Treasurer Rick Wolfsteller, Executive Director Ollie K.oropchak, Recorder Lori
Kraemer.
1. Call to Order.
?. Consideration to approve the November 1 ~, 200} F.l)A minutes.
~. C"onsideration of adding or rcrnoving agenda items.
4. Consideration to review for amendment the Business subsidy Criteria of the F[)A.
~. Consideration to elect 2002 I;DA officers.
(~. Consideration to review and accept the year-end I~,I)A Financial Statements, Activity
Report, and proposed 2002 Budget.
7. Consideration to review year-end balances of the CMH:F, DMRF, L1UAG, and ERG
Funds.
8. A. Consideration to discuss for approval the continued lorading of the DMRF and to
review the DM}ZF Guidelines for possible a.mcndments.
B. Consideration to discuss for approval authorizing the replacement ol~tl~c [~iquor
FLLI1dS.
9. Executive Director's Rcporl.
] 0. Other Business.
I } . Adjournment.
•
MINCIT)E.S
MONTICELLO ECONOMIC DEVELOPMIE:NT AUTI-IOI2ITY
• Tuesday, November 13, 2001 - 4:00 p.m.
Ciri~ Hall - ~0~ Walnut Street -Academy Room
Nlembers Present: Chair Bill Uemeules. Vice Chair Barb Schwientek, Roger Carlson and
Ron } Io~lund
Members Absent: Assist "treasurer Ken Maus, Clint Herbst and Darl•in Laln-
Staff: Treasurer Rick Wulfsteller, Ixecutive Director Ollie Koropchak and
Recorder Lori Kraemer.
Call to order.
Chair Demeules called the meeting to order at 4:00 pm.
?. C OnSiC'leratlOn to a .rove the October 17, 2001 EDA Inillutes.
R.un Ho~~lun(1 advised that the correct spellin~~ Ior Block 3~ Business Owner Karen"s last
name is actually Schnelder. COrI-ectton Voted.
A MOTION WAS MADE BY RON HO(.iLUND TO APPROVE THE MINLITES OF
1'HE OCTOBER 17, 2001 EDA MEETING, WITH CORRECTION NOTED ABOVE.
BILL DEMEl1LES SECONDED THE MOTION. Motion carried unanimously.
3. Consideration of ad(lina or re-novin<~ a~~enda items. Noi1e
/~. COllslderatlOn t0 a .rove the Subordination A 7reement between Firstar Bank. N.A. and
the Monticello EDA. (Blue Chip)
Ollie Koropchak_ Executive Director, provided the stafTreport stating that earlier this
vear the EDA extended the GMEF balloon date and the interest rate was adjusted to 2%
below prime, ~~11ich was actually ail increase.
Because the halloon payment of the CMIF is due. Blue Chip is retinancin~,~7. The lender
amount refinance is $ ~?b,000 and the (iMEI~ will be in second position behind the
lender. The lender is luukin~~ to close on November 1 ~, Z001.
The a~~rce-lient ryas reviewed by EDA Attorney Dan Greensweig, Payback of the GMEF
loan is CUCI'l'ilt.
•
EDA Minutes- I I/13/01
. A MOTION WAS MADE BY BARB SCI IWiENTEK TO APPROVE TI-1F:
SUBORDINATION AGREEMENT BETWEEN FIRSTAR BANK, N.A. AND 1'I-IE
MON'f[CELLO EDA. ROGER CARLSON SECONDED THE MOTION. Motion
carried Lulani111ously.
5. Consideration of Executive Director's Re ort.
Koropchak provided her director's report. Roger Carlson asked about the status of
Midwest Graphics and she advised that they had sold to Right Choice and }lave down-
sized. She is still waiting for mare information.
Chair Demeules also asked Koropchak about why the EDA is paying for an amortization
schedule and the possibility of doing this in-house. Korpchak stated she has checked into
this previously with Catlly Shuman but that she would do so again.
6. Other Business. None
7. Ad aLll'nnl~llt.
A MOTION WAS MADE.. BY BARB SCHWIENTEK TO AD.IOURN "C'HF: NII~:ETING
AT X1:12 1 M. RON 1-IOGI_UND SECONDED THE MO"hION. Motion carried
unanimously.
Recol'der
•
EDA Agenda - 4/23/02
4. Consideration to review for amendment the Business Subsid Criteria of the I+~DA.
A. Reference and back round:
`I~his is a hollsekeeping item. According to the Business Subsidy Criteria: "At a
1111I11n1LI111, the EDA shall review the I"ulld CirLlld~llIleS OI] all allnual bads. NO Lhallges t0
the GMIi;H' guidelines shall be instituted. without prior approval of the City Council."
~fhe criteria is attached for your review.
B. Alternative Action.:
1. A motion to recommend amending the Business Subsidy Criteria as
follows .............................. requesting approval lrom City Col.lncil, and
calling for a public hearing.
2. ~1 motion to accept the current Business Subsidy Criteria of the l~;Dn.
C. Recommendation:
Rccominendation is alternative no. 2.
D. SuLportin~ Data:
Copy of Business Subsidy Criteria.
•
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOK THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 3l`` day of August, 1999
Public Hearing and Adoption of Amendments the S`'' day of November, 2000
Public Hearing and Adoption of Amendments the 2d`h day of April, 2001
PURPOSE
1:01 The purpose of this document is to establish the Economic Development Authority"s
criteria for granting of business subsidies, as defined in Minnesota Statutes 1 l OJ.993,
Subdivision 3, for private development. This criteria shall be used as a guide in processing
and reviewing applications requesting business subsidies.
1:02 The criteria set forth in this doctunent are guidelines only. The Economic Development
Authority reserves the right in its discretion to approve bttsincss subsidies that vary from
the criteria stated herein if the Lconomic Development Authority determines that the
subsidy nevertheless serves a public: purpose. "l,hc Authority will file evidence of any deviation
from these criteria with the Department of Trade and Economic Development in accordance
with Minnesota Statues. Section 110.1.994, Subd. Z.
1:0 3 "1'hc Economic Development Authority may amend the business subsidy criteria at any
time. Amendments to these criteria are subject to public hearing requirements pursuant to
Minnesota Statutes, Sections 1 10.1.993 through l l0.}.99~4.
2. STATUTORY LIMITATIONS
2:01 In accordance with the business Subsidy Criteria, Business Subsidy requests must comply
. ~~ith applicable State Statutes. The Economic Development Authority ability to grant bttsincss
subsidies is ;,overned by the }imitations established in Minnesota Statutes
1 lOJ.993 throw<~h 110J.99~4.
PiJBL.IC: POLICY REQ~iIREMEN'I'
3:01 All business subsidies must meet a public purpose in addition to increasing the ta~c base. Job
retention may only be used as a public purpose in cases where job loss is imminent and
demonstrable.
3
Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4404 _--
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
MONTICELLO
1/DA Business Subsidy Criteria
4. BUSINI~:SS SUI3SIDY APPROVAL CRI"rERIA
X1:01 All new projects approved by the Economic Development Authority should meet the
following minimum approval criteria. However. it should not be presumed that a project
meeting these criteria will automatically be approved. Meeting these criteria creates no
contractual right on the part of any potential developer or the Economic Uevelopment
Atthority.
4:02 "C'he project must be in accord with the Comprehensive Plan and Toning Ordinance, or
required changes to the plan and ordinances must be under active consideration by the
City at the time of approval.
4:03 Prior to approval of a business subsidies financing plan and when deemed appropriate by
the Economic Development Authority, the developer shall provide any required market
and financial feasibility studies, appraisals, soil boring information provided to private
lenders for the project, and other information or data as requested.
4:04 A recipient of a business subsidy must make a commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
4:05 (Recipients of any business subsidy will be required to meet wage and job goals determined
by the Economic Uevelopment Authority on a case-by-case basis, giving consideration to
the nature of the development, the purpose of the subsidy, local economic conditions, and
situational circumstances.)
The Economic Development Authority may determine after a public hearing that job creation or
retention is not a goal of the subsidy. In those cases, the recipient must instead meet at least
one of the following minimum requirements (in addition to all other criteria in this document
other Ihuf~ those relating to jobs and minimum wages):
(1) "l~he proposed subsidy must accomplish removal, rehabilitation or redevelopment
of "blighted areas" as defined in Minnesota Statues, Section 469.002, Subd.l 1,
or must constitttte a cost of correction conditions that allow designation of
redevelopment districts under Minnesota Statues, Sections 469.171 to 4b9.179;
or
(?) The proposed subsidy must result in improvements to public infrastructure or
public facilities. inclttdin~~ without limitations. sewers storm sewers, streets,
parks. recreational facilities, and other City facilities; oc
(;) 1 he proposed subsidy must remove physical impediments to development of
DAWN/WORD/POLICIES. 1 D/30100
EDA Business Subsidy Criteria
laud- including without limitation poor soils, bedrock conditions, step slopes, or
similar geotechnical problems.
• X1:06 For any business subsidy that does not meet the requirements of Suction ~1:0~, the t'ecipient
must create or retain jobs as determined by the Economic Development Authority, as must meet
the minimum wage thresholds. described in Section x:03, Greater Monticello Enterprise Fund
Guidelines, l.(b) (whether or not the source of the subsidy is tax increment financing).
GREA"hER MUNTICELLU ENTERPRISE FUND PROJECT EV~ILUATION CRITERIA
5:01 The Economic Development Authority will utilize the Greater Monticello Enterprise fund
to support the community's long-term economic goals.
5:02 Each Greater Monticello Enterprise Fund subsidy will be analyzed and evaluated by the
Economic Development authority. Each project shall be measured against the general
criteria in Sections 1 through 4 and the specific criteria in this Section 5 applicable to the
Greater Monticello Enterprise Fund subsidies.
5:03 Following are the evaluation criteria that will be used by the Economic Development
Atthority:
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pAWNlWQRDlPOIICIES 10l3glgq 3
EDA Business Subsidy Criteria
GREATER MUNTICELLO ENTERPRISE F UND (_:UIUELINES
C'1"I^Y OF MONTICELLO
• S0 WAI.,N[JT STREET, S[11TE #1
M()N'rICF:LLO, MINNESOTA 55362
(763) 271-3208
INTRODUCTION
The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic
development by supplementin~~ conventional financing sources available to existing and new
businesses. 't'hrough this pro~'ram administered by the Economic Development Authority and
participating lending institution(s), loans arc made to businesses to help them meet a portion of their
financing needs. All loans must serve a public purpose by complying with four or more of the criteria
noted in the next section. In all cases, it is mandatory that criteria #1 be satisfied, which requires the
creation of new jobs. It is the responsibility of the EDA to assure that loans meet the public purpose
standard and comply with all other GMEF policies as defined in this docttzxtent. Along with
establishing the dr.finition of public purpose, this document is designed to outline the process involved
in obtaining GMEF financing.
DEFINITI(7N OF PUBLIC PURPUSt;
To provide loans for credit worthy businesses that create new jobs.
(a) Une job is equivalent to a total of 37.5 hours per week.
(b) At least 90% of the jobs created must pay a wa~~e of the higher of $9.00 per hour, or at
least 160% of the federal minimum wage, exclusive of benefits, For individuals over the
age of ?0 during the term of the assistance. Annual written reports are required until
termination date.
Failure to meet the job and wage level goals require partial or full repayment of
the assistance with interest.
2. To provide loans for credit worthy businesses that would increase the community tax base.
3. T~o assist new or existing industrial or commercial businesses to improve or expand their
operations. Considerations for loans shall take into account factors including, but not limited
to. the natttre and extent of the business, the product or service involved, the present availability
of` the product or service within the city of Monticello. the compatibility of the proposed
business as ii relates to the comprehensive plan and existing zoning policies, and the potential
for adverse environmental effects of the business, if any.
4. To provide loans to be used as a secondary source of financing that is intended to supplement
conventional tinancin~~ (bank financing).
5. To provide loans in situations in which a funding ~,ap exists.
• 6. To provide funds for economic development that could be used to assist in obtaining other
funds such as Small Business Administration loans, federal and state grants, etc.
DAWNNVORD/POLICIES: 1 °/301°°
EDA Business Subsidy Criteria
•
BCJSINESS 1;I,IGIk3ILITY
* Industrial businesses
* Non-competitive commercial businesses which enhance the community
* Businesses located within the city of Monticello
* Credit worthy existing businesses
* Non-credit worthy start-up businesses with worthy feasibility studies (Deny all
historical non-credit worthy businesses)
* $10,000 loan per each job created, or $5,000 per every $20,000 increase in property
market valuation, or $5,000 per every $20,000 increase in personal property used for
bUSlneSS pLlrpDSeS, whichever is higher.
* COMPANION
•
* PARTICIPATION LOAN - RLF buys a portion of the loan (the RLF is not in a
subordinate position, no collateral is required by the RLF.
and the loan provides a lower interest rate).
THE GREATER 1yIONTICELLO EN~I~ERI'R1SES
REVOLVING LOAN FUND POLICIES
II. FINANCING METI IOD
DIRECT LOAN - Example: Equity 20%, RLF 30%, and bank 50%. (All
such loans may be subordinated to the primary lender(s) if
requested by the primary lender(s). The RLF loan is
leveraged and the lower interest rate of the RLF lowers
the effective interest rate on the entire project.)
* GUARANTEE LOANS - RLF guarantees a portion of the bank loan. (Personal and
real estate guarantees handled separately.)
C]
III. USE OF PROCEEDS
* Real property acquisition and development
* Real property rehabilitation (expansion or improvements)
* Machinery and equipment
IV. TERMS AND CONDITIONS
* LOAN SI7.E - Minimum of $x,000 and maximum not to exccccl ~0°/~ of the
remaining revolving loan fund balance; for example. if the
remaining revolving loan fund balance is $50,000, the maximum
loan issuance is $?~,000.
* LEVERAGING -
Minimum 60% private/public non-GMEF
Maximum 30% public (GMEF)
DAWNlWORD/POLICIES 10!30100
5
EDA Business Subsidy Criteria
Minl-11t1-11 1 ~)~~~ h:Cllllty' EDA lOdn
•
* LOf~N I~ERNI - Personal property term not to exceed life of equipment (generally
5-7 years). Real estate property nlaximtull of 5-year maturity
amortized up to ~0 years. Balloon payment at 5 years.
* INTEREST RATE - Fixed rate not less than ?% below Minneapolis prime rate. Prime
rate per National Bank of Minneapolis nn date of EDA loan
approval.
*
LOAN FEE - Minimum fee of $200 but not to exceed I .S% of the total loan
project.* Fees are to be documented and no duplication of fees
between the lending institution and the RLF. Loan fee may be
incorporated into project cost. EDA retains the right to reduce or
waive loan fee or portion of loan fee.
* Fee to be paid by applicant to the EDA within S working
days after City Council approval of GMEF loan.
Nonreft-ndable.
C7
*
*
PREPAYMENT
POLIO' -
DEFERRAL OF
PAYMENTS -
No penalty for prepayment.
Approval of the FDA membership by majority vote.
2. Extend the balloon if unable to refinance. verification
letter from two lending institutions subject to Board
approval.
*
LATE PAYMENT
POLICY
I~ailure to pay principal or interest when due may
result in the loan being immediately called.
In addition to any othr:r amounts due on any loan, and
without waiving any right of the Economic Development
Authority under any applicable documents, a late fee of
$250 will be imposed otl any borrower for any payment
not received in full by the Authority within ~Q calendar
days of the date on which it is due. Furthermore, interest
will continue to accrue on anv amount due until the date
on which it is paid to the Authority, and all stick interest
will be due and payable at the same time as the amount on
which it has accrued.
• * INTEREST
LIMITATION ON
GUAR=~NTEED
DAWN/WORDlPOLICIES: 10/30/00
6
EDA E3usinesti Subsidy Criteria
[.URNS - Subject to secLU-ity and/or reviewal by EDA.
•
* AssuMABll,rrY
OF LOAN - None.
* BUSINESS EQUITY
REQUIREMENTS - Subject to type of loan; Board of`Directors will determine
ease by case, analysis under normal lending guidelines.
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* COLLATERAL - * Liens on real property in project (mortgage deed).
* Liens on real property in business (mortgage
deed).
* Liens on real property held personally (subject to
Board of Directors -homestead exempt).
* Machinery and equipment liens (except equipment
exempt from bankruptcy).
* Personal and/or corporate guarantees (requires
unlimited personal guarantees).
* 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.
* NON-PERFORMANCE
EXTENSION - The 180-day non-performance date can be extended up to
an additional 120 days.
1. A written request is received 30 days prior to
expiration of the 180-day non-performance date.
2. Approval of the EDA membership by majority
vote.
* [.EGAL FEE - Responsibility of the GMEF applicant.
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The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants
shall have equal access to GMEF finds re~~ardless of race, sex, age, marital status, or other personal
characteristics.
pAWN/WORD/POLICIES: 10/30/00
7
i~:DA Business Suhsidv Criteria
()CtGAN[ZATIO
The Greater Monticello Enterprise Fund is administered by the City of Monticello Economic
Development Authority (EDf\). vvhich is aseven-member board consisting, of two Council members
and five appointed members. EDA members are appointed by the Mayor and confirmed by the City
Council. Formal meetings are held on a quarterly basis. Please see the by-laws of the EDA for more
information on the structure of the organization that administers the Greater Monticello Enterprise
Fund.
PARTICIPATING LENDING INSTITU7~CON S
Participating lending institutions(s) shall be determined by the GMEF applicant.
2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the
policies of the GMEF as approved by the City Council.
;. Participating lending institution(s) shall analyze the formal application at~d indicate to the EDA
the level at which the lending institution will participate in the finance package.
LOAN APPLICA~"lON/ADMINISTRATIVE PROCEDi1RES
The EDA desires to make the GMEF loan application process as simple as possible. However, certain
procedures must be followed prior to EDA consideration of a loan request. Information regarding the
program and procedures for obtainin~~ a loan are as follows:
City Staff Duties:
The Economic Development Director, working in con_jtmction with the Assistant City Administrator,
shall carry out GMEF operating procedures as approved by the EDA and Council. StaIF is responsible
for assisting businesses in the loan application process and will work closely with applicants in
developin~~ the necessary information.
Application Process:
Applicant shall complete a preliminary loan application. Staff will review application for
consistency with the policies set forth in the Greater Monticello Fund Guidelines. Staff
consideration of the preliminary loan application should take approximately one week.
Stal`f will ask applicant to contact a lending institution rc<~arding financing needs and indicate to
applicant that further action by the EDA on the potential loan will require indication of support
fi-om a lendin~~ institution.
2. [f applicant gains initial support from lendin<~ institution and it the prelit~~inary loan application
is approved, applicant is then asked to complete a formal application. If the preliminary loan
• application is not approved by staff. the applicant may request that the EDA consider approval
of the preliminary application at the nett regularly scheduled meeting of the ED!\.
DAWNlWORDlPOLIC I ES: 10!30/00
EDA Business Subsidy Criteria
~. Ik`the preliminary loan application is approved, applicant shall complete a formal application.
Formal application shall include a business plan which will include its mana~~ement sirucnu-e,
market analysis. and financial statement. Like documentation necessary for obtaining the bank
loan associated with the proposal is acceptable. Attached with each formal application is a
written release of information executed by the loan applicant.
4. City staff will meet with applicant and other participating lender(s) to refine the plan For
financing the proposed enterprise.
City staff shall analyze the formal application and financial statements contained therein to
determine if the proposed business and finance plan is viable. Staff` may, at its discretion.
accept tlae tindings of a banking institution regarding applicant credit and financial viability of
the project. After analysis is complete_ City staff` shall submit a written recommendation to the
EDA. A decision regarding the application shall be made by the EDA within 60 days of the
submittal of a completed formal application.
6. The EDA shall have authority to approve or deny loans; however, within 2I days of EDA
approval. the City Council tray reverse a decision by the EDA to approve a loan if it is
determined by Council that such loan was issued in violation of GMEF guidelines.
7. Prior to issuance of an approved loan, the City Attorney shall review and/or prepare all
contracts, legal documents. and intercreditor agreements. After such review is complete, the
City shall issue said loan.
ORIGINAL REVOLVING LOAN FUNDING
"LETTER OF C~REDI"I'" FROM MONTICELL,U CITY COLJNCIL - $200.000
SOURCE -City Liquor Store Fund
City shall transfer needed loan amount from existing accounts at such time that individual loans are
approved. Revenue created throti~,h this program shall be under the control of the EDA and shall not
be transferred to 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 of the City (see Section ~ B of the ordinance establishing the Monticello EDA).
REPORTING
Staff shall submit quarterly summaries and/or annual report detailing the status of the
Monticello Enterprise bond.
FUND GUIDELINES MODIFICATION
1. At a minimtun. the EDA shall review the Fund Guidelines on an annual basis. No changes to
the GMEF guidelines shall be instituted without prior approval of the City Council.
DAWN/WO RD/POLICIES. 10/30/00
EUA Business Subsidy Criteria
LOAN ADMINISTRATION
1. City staff shall service Cite loan, shall monitor City position with re~,ard to the loan, and shall
assure City compliance with intercreditor agreement.
All loan documents shall include an intercreditor agreement which must include the following:
A. Det7nition of loan default, agreements regarding notification of default.
B. Agreements between lending institution and City regarding reproduction of pertinent
information regarding the loan.
All loan documentation shall include agreements between borrower and lenders regarding
release of privacy regarding the status of the loan.
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DAWN/WORDlPOLICIES 10/30/00 ~ Q
Under the GNIEF Guidelines use of proceeds for real property acquisition and development,
real property rehabilitation (expansion or improvements) and machinery and equipment. The
• following commentary is intended to assist developers with those costs typically considered
eligible:
Real Property Acquisition and Improvement Costs
Land Acquisition
Building Permit Fees
Building materials
Construction labor
Landscaping
Grading
Curbing/Parking Lot
Engineer/Design Inspection Fees
Architect Fees
Soil borings
Appraisal Fees
Legal Fees
Environmental Study
Recording Fees
Title Insurance
Machinery and Equipment_ Costs
Personal property used as an integral part of the manufacturing or commercial business, with a
useful life of at least three years. Acquisition costs would include Freight and sales taxes paid.
As a general rule, office equipment would not qualify.
•
EDA Agenda - 4/23/02
•
5. Consideration to Elect 2002 EDA Officers.
A. Reference and Back round.
In order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-2: The Authority sha11 annually elect a
president, vice president, treasurer, assistant treasurer, and
secretary. The current list of officers are:
President
Vice President
Treasurer
Assistant Treasurer
Secretary
Bill Demeules
Barb Schwientek
Rick Wolfsteller
Ken Maus
O11ie Koropchak
Nominations will be made at the meeting; therefore, any EDA
member unable to attend the meeting and doesn't wish to be re-
elected or nominated, please contact me.
Sn order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-1: Creation: (C) Thereafter the initial
appointment, all commissioners shall be appointed for six-year
terms, except that any person appointed to fill a vacancy
occurring prior to the expiration of the term which his/her
predecessor has been appointed shall be appointed only for the
remainder of such term.
2002 EDA membership and 6--year term:
Clint Herbst, Council 12 -2002
Ken Maus 12 -2002
Darrin Lahr 12-2003
Barb Schwientek 12 -2004
Bill Demeules 12 -2005
Roger Carlson, Council 12-2006
Ron Hoglund 12 -2007
B. Alternative Action:
1. Motion to nominate and elect
....Chair,........ Vice Chair, ......
......... Assistant 'T'reasurer, and ..... .
as 2002 EDA officers.
Page 1
the fallowing
... Treasurer,
...... Secretary
EDA Agenda - 4/23/02
L'
2. A motion to table election of 2002 EDA officers.
C. Recommendation:
No recommendation is given.
D. Supporting,,, Data:
None.
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• Page 2
EDA Agenda - 4/23/02
fi. Consideration to review and acce. t the Year-End [?DA Financial Statements
Activit I2c ort and 2002 Pro used Bud et.
A. Reference and Back round:
In order to company with f~,DA Ordinance Anlendll~cnt No. 172, Section 2-;-fi: '1'11e
Authority shtrll prepare an annual budget projecting anticipated expenses and sources of
rcverlue. And B: The Authority shall prepare an annual report describing its activities
and providing an accurate statement of its financial condition. Said report shall be
submitted to the City Council in May of`each year.
Enclosed arc the year-end statements, proposed budget, and activity report.
The l~:[)A will deed to review and discuss prior to consideration of t11e following
alternative action.
B. Alternative Action:
A motion to accept the year-end financial statement and report fior submission to
the City Council on May 1 ~, 2002.
2. A motion to accept the year-end financial statements and report subject to named
revisions prior to submission to the City Council.
~. A motion to not accept the year-end financial staten1c11ts and report.
4. A motion to table any action.
(ry. Recommendation:
If the EUA conlnlissioncrs make a finding that the statements and report are so correct,
r'CCQ111111e11daho1l Is alternative no. 1. The I/DA Iinancial report are consistent with Ciiy
year-end reports.
D. Su ortin Data:
Copies ol~ Iinancial statements and report.
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY MONTICELLO
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Statement of Revenues, Expenditures, and Changes in Fund Balance
For the Year Ended December 31, 2001
REVENUES
Appropriations -
2001 $ -0-
Interest Income - GMEF Notes $ 31,218.51
Interest Income - DMRF Nate $ 502.56
Interest Income - Investment GMEF $ 50,060.67
Interest Income - Investment UDAG $ -0-
Interest Income - - Tnvestment SCREG $ -0-
Interest Income - Investment MIF $ -0--
Loan Fees $ 400.00
Legal Fees $ 747.25
Miscellaneous $ -0-
TOTAL REVENUES
EXPENDITURES
GMEF Loans -
'-1~ IRTI(UDAG revolving) $ 72,500.00
r' GJW,LLC (UDAG revolving) $ 30,000.00
GMEF Legal Fees $ 445.50
GMEF Professional Fees $ 441.75
TRANSFER TO LIQUOR FUND $ 77,000.00
DMRF Loan -
VisiCom (GMEF revolving) $ 10,644.00
DMRF Grant -
Thickpenny $ 6,960.25
Drayna $ 1,000.00
DMRF Legal Fees $ -0-
DMRF Professional Fees $ 822.80
Service Fees $ 240.50
Miscellaneous Other $ 39.00
Int. Adjustment - Notes $ -0-
TOTAL EXPENDITURES
Excess of Revenues Over Expenditures
FUND BALANCE - Beginning of Year
$ 83,029.09
200.093.80
~$117,064.71~
1. 408, 949.7.3
FUND BALANCE - End of Year $1,291,885_.02
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY MONTICELLO
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Balance Sheet
December 31, 2p01
ASSETS
Cash in Bank $790,782.40
Notes Receivable - Tapper, Inc. $ -0-
Notes Receivable - Muller Theatre $ -0-
Notes Receivable - SMM, Inc. $ -0-
Notes Receivable - Aroplax Corp. $ -0-
Notes Receivable - Custom Canopy, Inc. $ FO`
Notes Receivable - Standard Iron $ -0-
Notes Receivable - Vector Tool $ 39,369.58
Notes Receivable - Tapper, Inc. $ -0-
Notes Receivable - SELUEMED $ 20,467.90
Notes Receivable - T J Martin $ 60,097.27
Notes Receivable - Mainline Distribution $ 92,569.07
Notes Receivable - Aroplax Corp II $ 94,643.96
Notes Receivable - TCDC $ 82,243.72
Notes Receivable - IRTI $ 72,192.02
otes Receivable - GWJ,LLC $ 29,777.68
~
otes Receivable - VisiCam $ 9,741.42
Appro priations Receivables -
2001 $ FO-
TOTAL ASSETS
FUND E UITY
1 291 885.02
Fund Balance
Reserved for ParCicipation Loans
(Economic DevelopmenC)
TOTAL LIABILITIES AND FUND EQUTTY
1 291 885.02
1 291 885.02
•
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MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
2002 CASH FLOW PROJECTION
BEGINNING CASH BALANCE, January 2002 $ 790,782.40
RECEIPTS
Appropriations, Expected -
GMEF $ -0`
Notes Amortization Payments -
Tapper Inc. ~0-
Muller Theatre -0-
SMM, Inc. -0-
Aroplax Corp. -0-
Notes Receivable -0-
Custom Canopy, Inc. -0-
Standard Iron -0-
Vector Tool ($509.98 Mo.) 11-03 $ 6,119.76
Tapper's II -0-
SELUEMED $ 20,667.08
T.0'. Martin ($1,716.12 Mo.) 3-05 $ 20,593.44
Mainline Distrib.($702.08 Mo.) 6-04 $ 8,424.96
Aroplax Corp. II ($730.93 Mo.) 12-04 $ 8,771.16
TCDC ($1,457.29 Mo.) 7-07 $ 17,487.48
IRTI ($549.57 Mo.) 10-06 $ 6,570.84
EDMA ($193.89 Mo.) 9-06 $ 2,326.68
VisiCom ($115.78 Mo.) 5-04 $ 1,389.36
Interest Income - InvesC.ment (est.) $ 30,000.00
Loan Fees $ 400.00
Loan Fees Other $ 191.75
Miscellaneous ~ _ 1.000.00
TOTAL RECEIPTS 123 942.51.
TOTAL BEGINNING BALANCE AND RECEIPTS $ 914,724.91
EXPENDITURES
GMEF Loans -
Production Stamping $150,000.00
UMC $200,000.00
Re-payment to Liquor Fund $ 79,000.00
DMRF Grants $ 12,827.18
Chamber $ 2,172.82
Loans $ - 0
Legal $ 1,000.00
?Miscellaneous $ 1,000.00
'""- TOTAL EXPENDITURES 446 000.00
EXPECTED CASH BALANCE, December 2002 $ 468,724.91.
r'1
2UU1
ECONOMIC" 1)EVELOPMEN"C AU"1'HOKITY ACTIVITY KF;I'OK7"
MEETING UATI~. SL1B,IECTS
,ianuary i0, 2001 No action taken orl the second UMRh' application for 11 i
West Broadway.
No action taken to call (iMEF No. 014 for late payment.
March 15, 2001 Reviewed preliminary GMI~:F application froth Integrated
Recycling Technologies, .lac.
Approved GMI-i:F No. 018 for IRTI, a real estate loan, in
the amount of $72,500. Load at 6.S`%~, amortised over 30
years, balloon payment in 5 years. Loan fee $200.
Collateral, guarantees, and other condition requirements to
he determined and prepared by EDA Attorney.
Denied approval lor• second UMRI~' application for 11
West 13r-oa.dway. Completed work. after the I~.rct, not to set
precedents. Applicant inlormed of appeal process.
r
April 24, 2001 Public Hearing and approved amending the Business
Annual Meeting Subsidy Criteria. for the Monticello EDA to include a. Late
Fee Policy.
EDA Olliccrs elects
President
Vice 1'residcrit
Treasurer
assistant Treasurer
Secretary
~d 1`or 2001:
Bill Demeules
Barb Schwicntek
Rick Wolfsteller
Ken Maus
Ollie Koropcliak
Accepted EDA 2000 Year-l":nd Financial Statements ~rnd
Activity Report. All existing GMI;F lo~.rn paybacks are
current.
Approved extending the use of the approximate $150,000
balance of the DMKI~ program for one year, refocusing
attention on certain projects and authorising staff to contact
City Planner Steve Grittmarl to provide cost. estimates for
r 1
~...~
2001 IEDA Activity Report
1~
May ??, 2001
trash receptacles ~.uld p~Irking, and to brim hack to the EDA
for further discussion.
Authorized repay-neilt ol`the Liquor li'unds In art amount of
10°/, ($77,000) of the C-MEI~ cash balance, not to drop
below a cash balance oi' $400,000. To be reviewed on an
annual basis. Rcpaynlellt per tllc. EDA Btlsiness Subsidy
Criteria.
Directed stalTto contact legal consultant to begin
proceedings to call the loan ot` T..1. Martin, unless T ..I.
Martin sets up an automatrc payment process for the I~:DA
Loan.
Approved DMRF No. 112 for 207 Pine Street (Thickpenny)
in the amount of $5,366 for facade improvements.
Approved DMRh No. 1 13 for 205 Pinc Street
(City/Chamber) in the amount of $2, X6.5.56 for facade
impl'ovelllcnts and up to $500 for fee reinlbursernent.
Authorized Chanlher Director to approach McCarty for
permission to paint portion of adjacent wall with DMRh
funds up to a nlaximunl amount of $1,000.
Authorized Planner Consultant (irittnlall to proceed with
site concepts, not facade ilalprovcnlents, for a portion of
Block 35 at a cost not to exceed $1,800. I O WOl-k Wltl1
Public Works arul downtown business owners.
Approved amelldin}~ the EDA Bylaws stating the regular
meetings of the F~,DA shall be held on the 4'h Tuesday of
January, April, .luly and October. The annual nleeting shall
he in conjunction with the regular April lnecting.
June 19, 2001 Approved an additional $1,475 to DMRF' No. 1.12 fior
removal of asbestos. Total alllount ol` DMRF matching
dollars is $6,841 plus tIp to $500 fee reinlbursernent.
.1uly 19, 2001 Authorized Planner Grittnlan to prepa--e a Ictter oi` intent
from the EI)A to the property owners of Block 35 that
2
2001 F:DA Activity Report
August 2l, ?OOl Report by C'lanncr Grittrnan on interest o1~Block iS
property owners for revitalization ofrear-parking entry
areas. Tabled any action on Block ~5 (or" Iurthcr
iatlorrnation from the City h'ngincex' and Public Works
Director.
October 17, 2001 By consensus of the F.DA and business owners present, the
decision was to take no action on the parking/trash
ia~lprovemcnts for Block 35 until 2002 when Broadway
reconstruction project is conlplcted. Business owxlers will
meet to discuss contracting for px'ivate party to plow ~.uld
remove snow ti•orll the private properly and alley, billing
the City for a portion of the costs.
would present them with the concept proposed by (irittman,
[.Dell, arld Flicker to get ~x cornrnittl~cnt front them to work
with the >/DA for fixture improvements with the realization
that 7.5"/o to 100%~ of the cost would most likely be picked
up by the EUA. Griiiman to meet individually with those
unable to attend a joint rncctialg.
Approved extending the non-performance date of August
29, 2001 to May 29, 2002 for DMRr No. I I 1 between the
rnA ~lIld uISCOI71, InC.
Reviewed preliminary CiMCF application form EDMA
C'onapany.
Approved GML:1~ Loan No. 019 for GWJ, L,L.C dba LDMA
Company in the amount of `};10,000, with terms of 20 years,
4.75°/~ interest rate, balloon ial _5 year"s arui loan fee of $200.
Collateral, guarantees, arui other condition requirements to
be determined and prepared by the 1',DA AtlOClley. Doan
approval subject to SBA approval and Council ratification.
L'DA agreed not to amend the I~DA Guidelines extending
the C)MRF boundaries but to encourage anyone io present a.
plan to DAT and the EDA.
Novcailber 13, 2001 Approved the Suhordination Agreement between Firstar
Bank N.A. and the Monticello 1~.DA. This associated with
•
~~
200r EnA Activity rtcrx~rt
the approval to extend the GM}~:F balloon date acid interest
i'atc adjustment to 2`%~ below prune for GMLI;' No. 010
(t31ue Chip) on November 8, 2000.
4
I{~1)A Al;enda - 4/23/U2
7. Consideration to review ear-encl balances of the (;~MF,F UMItF L1DAC Minnesota
Investment Fund and SCERG Funds.
A. Rct'crcncc and Back rog und:
All GMf•:T' loan payback payments are current as accounted for in the 2001 year-end
statements.
(iMH;I-' No. 007 (Standard Iron) and GMEF No. 011 ("Tapper I1) loans ballooned ire 2001
and were paid in full. Also GMEF No. O1 3 (SI~.L[ 1>~~MI/D) was paid o1~(• in-full .lanuary
2002 and will slYOw Grp on year-end reports for 2002. No balloon payments are due in
2002.
DMRF No. 1 1 3 (Chamber) was disbursed in 2002 and the EDA haci approved extending
the disburscrncnt date for DMRF No. 1 ] 1 Grant (E Iamond) until May 29, 2002; however,
the Loan was closed and disbursed. Additional disbursements from the DMRF acco~ult
were to "I~hickpenny, I)rayna, and Planner Grittman relative to t3lock 35.
Additional funds ~:rvailable for future use by the I:DA include the Minnesota Investment
Fund-'TCF)C payback (2001 balance $93,412), SCREG-Aroplax (balance $10,747), and
the SCLLJM~D payment of $20,(~(~7.
Yore will note the total dollars available to the N;UA for GMEF and I)MRI~ programs less
the commitments is $779,109.78 as of April 23, 2002.
No action necessary by the f~.DA.
•
MONTICT,L,1~0 ECONOMIC DEVEL~OI'MENT AUTIIOIiITY
DOWNTOWN MONTICELLO RF. VITAL/LATION FUND
December 31, 2UU1
•
h'und Balatlce, December 31, 1997 $199,000.00
Rcvcnucs
Appropriations 0 -- ..
TC)TAL REVLNUI?5 $199,000.00
Expenditures
DMRF 101, Kathy hroslic, 2-6-98 $ 2,_500.00
8-31-98 $ 2,500.00
DMRF 102, Steve .1ohn5on
DMRF 103, Kathy Froslie, ?-6-98 $ 500.00
UMRh 104, Rich Clitle, 10-11-98 $ 2,394.]3
11-24-98 $ 180.1
DMRF l OS, Al Loch, 1 1-6-98 $ 2,610.00
F)MRF 106, Dan O1s011, 7-27-98 $ 6,814.13
UMRF 107, Steve .lohnson
UMFtF 108, Bruce Hammond 6-11-99 $ 5,411.80
DMRF 109, Dorothy Topcl 7-12-99 $ 2,011.74
DMRF 110, Heaton _5-29-01
DMRF 1 11, Hamond 8-29-O1 ($9,500) extended to 5-29-02
Loan 4-10-U1 ($10,644, 5._5%, 5-04) $10,644.00
DMRF 1 12 Thickpetlny 5-22-01 $ 6,96025
DMRF 1 13 Chamber 5-19-01
Drayna 5-10-01 $ 1,000.00
Claybaugh 3-00 $ 810.50
4-00 $ 1,240.00
C;rittman -U 1 $ 822.80
Leal (Loan document) $ 200.00
-O1 $ 240.50
TO"1"AL. F~XPI~.NUI"l~l1Rh;S $ 46,839.97
F(-nd L3alance, Dcccmhcr 31, 2001 $152,160.03
•
•
GMEF Cash Balance
DMRF Cash Balance
TOTAL
LESS APPROVALS
Hamond Grant
Chamber Grant
Revenues
SOURCES OF FUNDS
January 1, 2002
$638,622.37
$152,260.03
$79D,782.40
$ 9,500.00
$ 2,172.82
TCDC - MSF Appropriations $ 93,412.99
Aroplax - SCREG Appropriations $ 10,747.53
SELUMED balloon $ 20,657.08
TOTAL $124,827.70
•
•
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
LOAN STATUS
December 31, 2001
Economic Development Authority (EDA) was created in 1989.
APPROVED LOANS
Tapper/Genereux (1990) $88,000.00
Muller/Monti Theatre (1990) $50,000.00
Barger/Suburban #004 (1992) $50,000.00
Schoen/Aroplax #005 (1992) $85,000.00
Birkeland/Custom Canopy #006 (1993) $42,500.00
Demeules/Standard Iron #007 (1993) $75,000.00
Blue Chip Dev/Vector Tool #010 (1995) $50,000.00
Tapper's #011 (1996) $100,000.00
Standard Iron/Seluemed #013 (1996) $70,000.00
T J Martin #014 (1998) $87,500.00
Mainline Distr #015 (1999) $100,000.00
Aroplax #016 (1999) $100,000.00
TC Die Cast #017 (2000) $100,000.00
Integrated Recycling #018 (2001) $72,500.00
EDMA #019 (2001) $30,000.00
TOTAL APPROVED LOANS
APPROVED PAYBACKS
2001 to Hwy Liquor ($77,000.00)
TOTAL APPROVED PAYBACKS
TOTAL APPROVED LOANS &PAYBACKS
LOAN DISBURSEMENTS (transferred to GMEF
Liquor Fund:
1991 to Tapper $73,000.00
1992 to Suburban $50,000.00
1992 to Aroplax $65,000.00
1994 to Standard Iron $75,000.00
1995 to Vector Tool $50,000.00
1996 to Standard Iron $70,000.00
2001 payback from HRA ($77,000.00
Total Liquor Fund $306,000.00
C~
$1,1 D0,500.00
($77,000.00)
$1,023,500.00
GM~F.xls: 04/18/2002
UDAG Fund:
1991 to Tapper
1991 to Muller
1992 to Aroplax
1993 to Custom Canopy
1996 to Tapper's
1999 to Aroplax (016)
1999 (2000) to Mainline
2000 to TC Die Cast
Total UDAG Fund
'"Recycled" UDAG Money:
2001 to Integrated Recycling
2001 to EDMA
Total Recycling UDAG
SCERG Fund:
1998 to T J Martin
1999 to Mainline
2000 to TC Die Cast
Total SCERG Fund
GMEF (revolving funds):
2000 to TC Die Cast
Total GMEF Fund
TOTAL LOAN DISBURSEMENTS
$15,000.00
$50,000.00
$20,000.00
$42, 500.00
$100, 000.00
$100,000.00
$39,546.38
$56,781.04
$423, 827.42
$72,500.00
$30,000.00
$102,500.00
$87,500.00
$60,453.62
$23,198.02
$171,151.64
$20,020.94
$20,020.94
$1,023,500.00
GMEF.xIs: 04/18/2002
MINNESOTA INVESTMENT FUND
FINANCIAL REPORT
• December 31, 2001
GRANT TOTALS -TWIN CITIE DIE CAST
Payback began in July, 2000 for 7 years ending in June, 2007.
Annual principal and interest payback total is $61,176.72.
RI INAL PAI REMAINING
Principal $500,000.00 $69,792.33 $430,207.67
Interest $95,747.11 $26,808.02 $68,939.09
TOTAL $595,747.11 $96,600.35 $499,146.76
EXPENDED: $468,266.60 6/2/00
$20,859.00 8/9/00
$10,874.40 8/15!00
$500,000.00
ENUES
RR V~
,
Principal Payback -TCDC $69,792.33
Interest Payback-TCDC $26,808.02
Interest Income -Investment: ~~
"
2000 "
t ~ "
'n°
$119.19
TOTAL REVENUES $96,719.54
~
EXPENDITURES
~ ~
~'q
Prof Svc fees -TCDC $3,306.55
TOTAL EXPENDITURES $3,306.55
FUND BALANCE FOR MN INV FUND $93,412.99
C]
MN INV.xIs: 04!18/2002
LJ
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG)
FINANCIAL REPORT
December 31, 2001
GRANT TOTALS _ AROPLAX
Payback began in December, 1992 for 7 years ending in November, 1999.
Annual principal and interest payback total is $29,801.40.
First $100,000 principal payback ends January, 1997.
ORIGINAL PAID REMAINING
Principal $170,000.00 $175,615.55 ($5,615.55)
Interest $37,969.92 $24,018.99 $13,950.93
TOTAL $207,969.92 $199,634.54 $8,335.38
Principal
Interest
TOTAL
Jan. 1997
$170,000.00
$29,634.75
GMEF
$100, 000.00
$24,018.99
STATE
$70,000.00
$5,615.76
$199,634.75 $124,018.99
Grant must be expended by December 31, 1994, up to $170,000.
EXPENDED: $116,556.75 1993
$16,996.18 1993
$12,356.59 1993
$4,021.10 1 /18/94
$15,132.50 4/13/94
$4,936.88 7/20/94
$170, 000.00
GRANT TOTALS -STANDARD IRON
Payback began in July, 1994 for 7 years ending in June, 2001.
Annual principal and interest payback total is $33,306.12.
Grant must be expended by December 31, 1994, up to $250,000.
EXPENDED:
$250, 000.00
8/18/94
$75,615.76
SCERG.xIs: 04/18/2002
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG)
Page 2
UES
REVEN $175,615.55
Principal Payback -Aroplax $24,018.99
Interest Payback -Aroplax 255.90
$249
Loan Payback -Standard Iran ,
885.00
$5
Grant Administrative Fee - S.I. '
($2,000.00)
Refund 97/98 fee to Wright County
Interest Income -Investment:
061.92
$1
1993 ,
256.00
$1
1994 ,
475.97
$5
1995 ,
381.27
$7
1996 ,
770.56
$8
1997 ,
741.95
$9
1998 ,
450.10
$10
1998 ,
058.60
$9
2000 ,
$505,971.81
TOTAL REVENUES
EXPENDIT RES $75,626.64
payback to State -Aroplax $248,445.90
Reimbursement to Wright Co - S.I. $87,500.00
Transfer to GMEF - T. J. Martin $60,453.62
Transfer to GMEF -Mainline Dist $23,198.02
Transfer to GMEF - TC Die Cast $495,224.18
TOTAL EXPENDITURES
FUND BALANCE FOR SMALL CITIES GRANT
•
1n..aT na c~en ~a- ~.
$10,747.63
SCERG.xIs: 04/18!2002
FUA Agenda - 4//23-02
•
SA. Consideration to discuss fora royal the continued fundin ~ of the UMRF anct to
review the DMRF Guidelines for ossible amendments.
A. Reference and back round:
On art annual basis, the EDA compares the over-all dollars available to assist industry and
downtown businesses with the goals or objectives of the programs. You will Hate the
DMRF balance is about $140,500 alter deducting committed dollars. The DMRF
program began in 1907 and in five years the EDA disbursed money for 9 improvernent
projects. Questions to ask:
1. Is there a heifer use for these dollars`? iJse for revitalisation and new constructron
f~rcadc improvements.
2 Would increasing the target area help`?
3. Would the dollars be better served for industrial use or to commence replacement
of the liquor Fund`? (Next item)
4. Would a larger grant amount per side increase interest?
5. Would a DMRF marketing campaign help?
(,. ()then ideas?
Secondly, please review the attached DMRF' Guidelines (ar possible amending.
•
S. Alternative Actions:
1. A motion to extend the use of the approximate $140,500 for the DMRF program
for one year and to accept the DMRF Guidelines as presented.
2. A motion to extend and reduce the amount to _ _ for the DMRF
pro~;rar~~ for one year.
;. A relation to deny use alpdollars for the DMRF program.
4, A motion to table a-iy action.
C. Kecommendation:
Recommendation is Alternative no. 1. Please react agenda iteril $B. and noted
DMRI•' dollars are restricted from use of C1DAG, SCERG, and MI1~ funds.
Perhaps in year 2001, the Black 35 owners will be interested la pracecd with
irrrprovements to the drainage, crash, and parking area within Block 35.
C7
F,DA Agenda - 4//2~i-U2
D. Su ~ ortin Data:
DMRF (i~,iidelincs.
•
DOWNTOWN MONTICELLO REVITALIZATION FUND GUIDELINES
CITY OF MONTICELLO
505 WALNUT STREET, SUITE 1
MONTICELLO, MN 55362
(763) 271-3208
PURPOSE
The Monticella Dawntown and Ri.verfront Plan provides a guide for develaprnent in the
downtown area. As part of its efforts to implement the Plan, the Monticello Economic
Development Authority (EDA) offers financial assistance and incentives to property owners
through a program known as the Downtawn Monticella Revitalization Fund (DMRF).
The DMRF seeks to promote the revitalization of dawntown Monticello by:
* Enhancing starefifronts and facades in accordance with the design guidelines in the
Plan.
* Encouraging the rehabilitation of building interiors to bring them into compliance
with local codes and ordinances.
*
Encouraging building rehabilitation to provide space suitable for the proposed use.
* Praviding funding to close the "gap" between financing needed to undertake the
project and the amount raised by equity and private loans.
* Providing economic incentives to locate businesses in the Downtown.
These guidelines describe the funding parameters and eligibility criteria for programs offered by
the EDA. Meeting the eligibility criteria does not entitle an applicant to funding. The distribution
of funds is the sole decision of the EDA.
TARGET AREA
These financial incentives and assistance will be available for existing buildings within the planning
area described in the Downtawn and Riverfront Plan. Preference will be given to property
located in Blocks 34, 35, 3b, 51, 52, and 53, Original Plat, City of Monticello.
•
DMRF GUIDELINES
FACADE GRANTS
The EDA may provide matching grants in the following amounts:
Up to $2,500 far eligible improvements to the front facade and signage.
Up to $2,500 for eligible improvements to promote improvements to the rear
sections of the buildings.
Up to $2,500 far eligible improvements to the side facade (if applicable).
To be eligible for grant funds, projects must meet the following criteria:
* Improvements must comply with applicable design guidelines and all codes and
ordinances including building permits and inspections.
* The grant will match private investment up to the stated limit.
* Grant funds will be provided after completion of the improvements.
• * Applicants will provide the EDA with documentation of the actual cost of the
impravements.
Meeting the eligibility criteria does not entitle an applicant to funding. The distribution of grant
funds is the sole decision of the EDA.
REHAI3ILITATIQN LQAN
The EDA may provide loans for the rehabilitation of existing buildings. The maximum loan
amount is the lesser of 25% of total cost of impravements or $20,000. To be eligible for
rehabilitation loans, projects must meet the following criteria:
Improvements must comply with applicable design guidelines and all codes and
ordinances including building permits and guidelines.
Applicants must provide proof of financing for costs not funded by the grant.
Loan amortization schedule not exceed ten (10) years, balloon payment in five (5)
years.
•
DMRF GUIDELINES
* The interest rate on the loan will be two percent (2%) below the Prime Rate. The
EDA may reduce the interest rate to encourage the reuse of a currently vacant
building, the retention of an existing business, or the creation of a new business.
The rehabilitation loan will be in a subordinated position to the lender.
FEE REIMBURSEMENT
The EDA may grant reimbursement of City fees associated with undertaking improvement and
revitalization projects in the downtown area. The amount of the reimbursement will be the
equivalent often percent (10%) of the total cast of the improvements up to a maximum of $500.
Fees eligible far reimbursement include building permits, other city inspections, and land use
ordinances. To be eligible for fee reimbursement, projects must meet the following criteria:
Projects must comply with applicable design guidelines and all codes and
ordinances including building permits and inspections.
Reimbursement will be made after completion of the improvements.
* Reimbursement will be based an documentation of actual improvement costs and
fees paid.
FINANCIAL ASSISTANCE
The maximum amount of financial assistance available to each rehabilitation property is an amount
not to exceed $25,000.
NON-PERFORMANCE
Approved DMRF shall be null and void if funds are not drawn or disbursed within 270 days from
date of EDA approval.
ORGANIZATION
The Downtown Monticello Revitalization Fund is administered by the City of Monticello
Economic Development Authority (EDA), which is aseven-member board consisting of two
Council members and five appointed members. EDA members are appointed by the Mayor and
confirmed by the City Council. Farrnal meetings are held on a quarterly basis. Please see the
by-laws of the EDA far more information on the structure of the organization that administers the
Downtown Monticello Revitalization Fund (DMRF).
CJ
DMRF GUIDELINES
PARTICIPATING LENDING INSTITUTION
Participating lending institution shall be determined by the DMRF applicant.
2. Participating lending institution shall cooperate with the EDA and assist in carrying out
the policies of the DMRF as approved by the City Council.
Participating lending institution shall analyze the funding application and indicate to the
EDA the level at which the lending institution will participate in the finance package.
LOAN APPLICATION/ADMINISTRATIVE PROCEDURES
The EDA desires to make the DMRF application process as simple as possible. However, certain
procedures must be followed prior to EDA consideration of a loan request. Information
regarding the program and procedures for obtaining funding is as follows:
City Staff Duties:
The Economic Development Director, working in conjunction with the Assistant City
Administrator, shall carry out DMRF operating procedures as approved by the EDA and Council.
Staff is responsible for assisting an applicant in the application process and will work with the
applicant in development of the necessary information.
A lication Process:
The applicant will meet with city staff to obtain information about the DMRF, discuss the
p'raposed project, and obtain a funding application form and a copy of Section 3, 4, and 5
of the Design Guidelines of the Downtown and Riverfront Plan within the Monticello
Comprehensive Plan.
Staff will direct the applicant to contact the Design Advisory Team as a resource for
suggestions and review of improvements which comply with the design guidelines, codes,
and ordinances of the Downtown and Riverfrant Plan within the Monticello
Comprehensive Plan.
Staff will request the applicant contact a lending institution regarding financing needs and
indicate to applicant that further action by the EDA an the potential loan will require
indication of support from a lending institution.
2. The applicant shall complete a DMRF application. Staff will review the application for
consistency with the policies set forth in the Downtown Monticello Revitalization Fund
Guidelines.
•
• DMRF GUIDELINES
City staff will accept the findings of a lending institution regarding applicant credit and
financial viability of the project. EDA approval will require a letter of support from the
lending institution. Upon receipt of the letter of support, City staff shall submit a written
recommendation to the EDA and a decision regarding the application shall be made by the
EDA within 14 days of submittal of the letter of support from the lending institution.
4. The EDA shall have authority to approve or deny the financial assistance of the
Downtown Manticello Revitalization Fund.
5. The EDA shall not disburse approved DMRF without a written acknowledgment from the
Design Advisory Team that construction of the improvements are complete and comply
with applicable design guidelines and all codes and ordinances.
6. The EDA shall not disburse approved DMRF (grants and reimbursement) without certified
documentation of the actual costs of the improvements and completion of the
improvements.
7. The EDA shall not disburse the approved DMRF (loan) without proof of financing for
costs not funded by the grant and execution of the loan closing documents.
ORIGINAL FUNDING
SOURCE -Economic Development Authority, Greater Manticello Enterprise Fund
AMOUNT - $200,000 (For Year Ending December 31, 1999).
The EDA shall disburse approved DMRF dollars from the payback of GMEF Liquor Fund dollars
at such time the approved DMRF is disbursed.
REPORTING
Staff shall submit quarterly summaries and/or an annual report detailing the status of the DMRF.
FUND GUIDELINE MODIFICATION
At a minimum, the EDA shall review the Fund Guidelines on an annual basis. Na changes to the
DMRF guidelines shall be instituted without prior approval of the City Council.
DMRF GUIDELINES
LOAN ADMINISTRATION
City staff shall service and monitor all loans, matching grants, and fee reimbursements.
2. All loan documents shall include at a minimum, a note and mortgage.
r 1
LJ
DMRF Guidelines 7/97
DMRF Guidelines amended 2/98
DMRF Guidelines amended 5/98
DMRF Guidelines amended 3/99
DMRF Guidelines amended 2/00
6
EDA Agenda - 4/23/02
• $S. C,onsidcration to discuss fora royal authorizing= the re lacement of the Li uor
Funds.
A. Reference and bacl: =round:
Again in 2002, the EI)A is requested to discuss whether to continue replacement ol'the
original Liquor Funds.
As you recall, in April 2001, the EDA made life following motion:
To authorise repayment of life Liquor Funds ill the amount of 10% of the CiMEF
cash balance, not to drop below a cash balance of $400,000, to be reviewed on all
annual basis. Repayment per H;DA Business Subsidy Criteria.
Below is an excerpt from the EDA Business Subsidy Criteria, (h-i Final Revolvin ~ Loan
l~undin7.
`~c,lty Sllall tl'a115tCC nee(1ed 10311 a11101111t fCOITI exlsl:lllg aCCOllllt5 at sLlch tlnle tllilt
individual loans are approved. Revenue created through this program shall be
wider the control ol`the i?DA and shall not be transferred to City funds unless the
City Council deterlllines that reserves generated arc not necessary (or the
. suceessfill 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 of the City (see Section SB of life ordinance
establishing the Monticello EI)A)."
'fhc EDA cash in bank balance as of December 2001 is $790,782.10. T he amount of
Liquor Funds disbursed by the EDA over the yeal•s totaled $181,000 less the $77,000
al.lthori~ed in 2001 leaves anon-replaced balance of $_306,000. The Minnesota
investment Fund-TCDC of $500,000 is like the UDAG and SCREG funds and is meant
for industrial use. Therefore, given the balance of $106,000 less original DMRF
comlllitrnent of $200,000 leaves $106,000 or less DMRF disbw-sed dollars of $59,_500
haves $246,500 balance of non-restrictive Liquor l~'und dollars.
Questions to ask:
1. What amount if any was reserved for the DMRI~'?
2, How malty and in what Iregtlency are the GMEr b~llloon payments due to the
ET)A'~
3. Can these funds be used for industrial park developlllcni`?
4. Is it bctier to wait and let the Council make its findings'?
F:DA Agenda - 4/23/02
5. In the future, will approved loan amounts he greater than X100,000 in order to stay
competitive with the market?
B. Alternative Action:
1. A motion to arithoriLe a 2002 repayment of~ihe liquor >:urlds in the amount of
$79,000 for use solely to reduce tax levies 1'or bonded indebtedness oI` the City.
2. A motion to authorise a 2002 repayment of the Liquor Funds in the amount of
_. _ for use solely to reduce tax levies for honded indebtedness ol~the City.
>. A motirnl of no interest to ar.~thorize a 2002 repayment of the Liq~.ior Funds.
4. !1 motion to table any action.
C'. Recommendation:
With the existing ~;md further paybacla from [1DAU, SCIZ[~G, and the MIF, there is little
worry ~.ibout the ability to fund firti.~re industrial loans. Complete .repayment of the Liquor
'
F,
ru~cls could restrict or alfect lirture DMRF funds. 10`% of year-end 2001 EI)A cash
• balance is $79,000. No r•ecornmenc{~ttiorl given.
D. Su ortin ~ Data:
None.
•
EI)A Agenda - 4/23/U2
9. Executive Director's Report.
Sorry, ran out of time this month. Will report at meeting.
•
,Iat1UaI'y ~75, 2002
Nlr. Don 1lunCer
Statldard Iron & Wine Works, Inc.
207 i)undas Road
Monticello, NCN 57362
Re: GNII~:F No. Ol ~ - Seluerneci
Dear Don:
On .ianuary 2~. 2002, Ireceived avoice-mail from yot.t requesting the atrtount clue and tl~c
remainin4~ principal balance :for GMEF I-,oan No. 013 as ol~Fehrttary 1, 2002.
Accorclin~~ to our recorc(s, the December 28, 2001, Monthly loan payment is delinquent.
Payment Date Interest Princi~tl Total P & I
December 28, 2001 ~ 106.56 $924.5 `S 1,0 31.01.
.January 28, 2002 `101.74 $92).27 $ 1,031.01
January 29, 2002 -Remaining balance $18,605.06
Therefore, the total amount due to retire the debt of CrNIEF Loan No. 013 as of January 29, 2002,
is ~20,G67.08. SIIOUIcI y0U have any questions, please call me at 7fi3-271-3208. Thank you for
participating in our loam program. ~I'11e City would be pleased to assist Stanclarcl Iron with their
next expansiot), please clot~'t hesitate to call.
Sincerely,
ECONOMIC 1-)I_-;VF/LOPMk;N~I' nt1TI-[ORl"l'Y
IN nND l~(_)R "I'F1[~ CITY OF MONTICI~LLO
OIlic Korc)pchal<
1?xectttive Director
c: File
Monticello City Etull, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 - (7fi3) 295-271 1 • Fax; (763) 295-4404
Office of Public Works, 909 Colt Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
~,~nr.rrrrrc:r r n
•
MINNESOTA COMMUNITY
C,aI'I"f'AI. FUND
February 11, 2002
Ms. Ollie Koropchak
Economic Development Director
City of Monticello
505 Walnut Ave., Suite 1
Monticello, MN 55362
Dear Ms. Koropchak:
Rebecca Yanisch, Commissioner of the Minnesota Department of Trade
and Economic Development (DYED), has asked that we forward the
enclosed letter to you. Commissioner Yanisch is very supportive of the
Minnesota Community Capital Fund (MCCF), and encourages
communities and development groups like yours to take a serious look at
becoming members of the Fund.
It's not too late to express your interest in joining the MCCF by sending
us anon-binding letter of intent (LOI) for your organization.
More information about the MCCF is now available on our website at
www.macommunitpcapitalfuad.org. Adraft copy of the LOI can be
found by clicking on the "Contact" button. The letter can either be
printed from the website and mailed to us, or better yet, you can fill in
the requested information and send it via a-mail.
Thank you for taking the time to consider whether membership in the
MCCF makes sense for your organization. Please don't hesitate to contact
me with any questions you may have at (952) 541-9674.
Sincerely,
-~~ ~ ~;
Scott A. Martin
Fund Developer
C]
enclosure
/1cti~~alirrE Ca~rilnl /br r/urrr Conrrnunitr~
13911 Ridgedale Drive I Suite 260 I Minneapolis, MN 55305
phone: 952 541-9674 I fax: 952 541-9684 I website: www.mncommunitycapitalfund.org
INTEGRATED RECYCLING TECHIVOL o7-97 5TATE BANK bF ROGeRS 2 5 2 71
419 WEST RIVER STREET RQGERS, MN 55374
MONTICELI.~, MN 55362 75-918/919
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~1~NESQ7~
February 11, 2002
Trade &
'OI101171C
Development Dear Community Development Professional:
It is my understanding that during the past few months you received information
concerning the Minnesota Community Capitt~l Fund (MCCF), the new nonprofit
corporation that was created last year by the Northland Institute as a means of
increasing the development financing capacity of local govermnents goad
economic developme>t organizations throughout Greater Min~lesota.
Recently, l visited with Scott Martin, fund developer, and received an update on
benefits being offered to its members. I am excited about the
MCCF and the
7~
pot°ntial tl~a" tb,r ;~4,~ ~j!/at~r~~ 7~~w o,•gat~7a.;~.t; _,,, 7,:as ;,, il.ayi7~g ~ sig~iificant rn1F.~ ;?
financing affordable housing alid business development in coinrnunities around
the state.
D>.uing these tinges of budget reductions at all levels of government, it's critically
important that we all make the most of our limited economic development
resouz-ces and work together to help secure rural Mimzesota's economic future.
The MCCF, a member-governed organization, is a unique business model that
provides business, goveri~rient, and nonprofit development groups with the
opportunity to pool their resources and, by doing so, significantly increase their
local lending capacity. Nowhere else can you leverage your capital on a 10-to-1
basis and participate in creative financing packages with very little risk.
I encourage you to take a good look at whether membership in the Minnesota
Community Capital Fund is a good fit for your local economic development
strategy. But time is of the essence, since the MCCF Board will soon be making a
decision about whether enough interest exists statewide to formally launch tlae
Fund later this spring. For more information, may I suggest that you call Scott
Martin directly at (9S2) 541-9674, or visit the MCCF website at
www.mncomrnunitycapital fiend. org.
Thank you for your continued work in Helping to keep Minnesota such a great
place!
Sincerely,
~_
Rebecca Yanisch
Commissioner
500 Metro Square ^ 121 7th Place Ir~St ^ St. Pa~;ul, Minnesota 55101.•2146 ^ USA
www.dted.state.rnn.us 651-297-1291 ^ 800-657.3858 ^ FAX..fa.$1.-,~0"6-4772 ^ TTY/TDD 800-627-3529