HRA Agenda 05-07-2003
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MEETING AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 7,2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Comm issioners:
Chair Stcvc Andrews, Vicc Chair Bill Fair, Darrin Lahr, Dan Fric, and Brad
Barger.
Council Liaison:
Roger Carlson.
Staff: Rick Wolfstcller, Ollie Koropchak, and Lori Kraemer.
I. Call to Order.
2. Consideration to approve thc April 2, 2003 lIRA minutes.
3. Consideration of adding or rcmoving items from the agenda.
4. Consent Agcnda.
5.
Consideration to hear updates:
A. Phase I, II, and III design conccpt for a portion of Block 52.
R. Redevelopment of a portion of Block 51.
C. Redevclopment of Rlock 36, Phase II.
D. Redevelopmcnt of a portion of Block 37 (request for 'fll-" assistance).
6.
Consideration to approvc modifications to thc Contract for Private Development oct ween J .A.c.
Devclopment, LLC and the H RA, to approve assignmcnt of the mod ified Contract from J.A.C.
Developmcnt to Production Stamping, Inc., and to authorize the liRA Attorney to draft such
documents.
7. Consideration to authorize payment of HRA bills.
8. Considcration of Exccutive Director's Rcport.
9. Comm iUce Reports.
10. Othcr Business.
II. Adjournment.
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ANNUAL MEETING MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 2, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Bill Fair and
Council Liaison Roger Carlson
Dan Frie and Rick Wolfsteller
Ollie Koropchak and Lori Kraemer
Absent:
Staff:
1. Call to Order.
Chair Brad Barger called the meeting to order at 6 p.m. and declared a quorum.
2. Consideration to apProve the March 5, 2003 HRA minutes,
A MOTION WAS MADE BY DARRIN LAHR TO APPROVE THE MINUTES OF THE
MARCH 6, 2003 HRA MEETING. STEVE ANDREWS SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSL Y.
3. Consideration of adding or removing items from the agenda. None
4. Consent Allenda. None
5.
Public Hearing - Consideration to adopt a resolution authorizing disposition of raw land
described as Outlot A. Countrv Club Manor. Citv of Monticello.
Ollie Koropchak, Executive Director, reminded the HRA that they had called for a public
hearing for the disposition of raw land described as Outlot A, Country Club Manor and
advised that she had one resident inquire about notification to property owners regarding this
public hearing. Koropchak advised that when the City Council holds a public hearing notices
are sent out but in checking with the HRA' s attorney it was advised that this was not a
requirement of the HRA. She will advise the resident. She further advised of the Hockey
Associations proposal for a hockey/soccer dome on this parcel and of the City Council's
recommendation to sell the land which the HRA is listed as title owner. She noted she did not
know the status of the project at this time.
She also advised what the HRA was required to do regarding the public hearing but that they
are not transferring title until the project proceeds and provisions are met. This is to handle
the technical part of the requirement of the public hearing. Fair asked about the provision by
the City Council that the land was not to be used as a public lise, and the clause of one year to
sell that 7 acre parcel and gel it back on the tax roles, further questioning \Vhat happens if
they do not fulfill the terms of agreement. Koropchak was unsure and noted for the 7 acres of
taxable property there needs to be provisions regarding publil.: purpose. Roger Carlson
advised he thought the parcel might come back to the HRA, although he was not certain
either. Fair was concerned that if other proposals came forward and the Hockey Association
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HRA Minutes - 04/02/03
was in default, this would hold them back. Carlson and Barger both stated that they did not
believe that the project would go forward without the sale of that land as that is part of the
Hockey/Soccer Association's funding. It was also noted that there is a time frame for getting
the parcel back on the tax rolls.
Chair Barger opened the public hearing and hearing no comments, the public hearing was then
closed.
A MOTION WAS MADE BY DARRIN LAHR TO ADOPT THE RESOLUTION
AUTHORIZING DISPOSITION OF RAW LAND DESCRIBED AS OUTLOT A,
COUNTRY CLUB MANOR, CITY OF MONTICELLO, TO THE MONTICELLO YOUTH
HOCKEY AND SOCCER ASSOCIA TIONS, SUBJECT TO EXECUTION OF A HRA
CONTRACT OUTLINING THE PUBLIC PURPOSE OF THE TAXABLE LAND
(APPROXIMATELY 7 ACRES) AND INCLUDING PROVISIONS APPROVED BY THE
CITY COUNCIL. BILL FAIR SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
Brad Barger advised that he has 3 ehildren who play hockey and he wanted to make sure that
the BRA did not feel this would be a cont1ict of interest. It was determined that there was no
financial gain so no conf1ict of interest was found.
6.
Consideration to hear updates:
A. Phase I. II. and III design concept for a portion of Block 52.
Koropchak stated that Steve Johnson and Fred Katter were both present and would be
addressing the HRA. She noted that since the last meeting in March, Katter, Wolfsteller,
Bubul and Koropchak met to see if they could get a better handle on the timing of the project
and discussed with them that they were not clear of what they were asking from the HRA.
She also stated that McCombs had revised the development costs for that project, which she
provided to them. She had not proceeded with anything at the County Assessor's office as it
is still too premature. She noted that Katter had stated he had a meeting scheduled with the
Heatons and he would update the HRA on that as well. She advised that since the March
meeting she had 3 local individuals stop in her office to state their opposition to this project
and she had advised them to attend the HRA meeting.
Fred Katter addressed the HRA and stated they held moving any further with the project until
they could meet with the Heatons, which they finally did earlier that day. They explored a
number of concepts and they felt there would be no reason the Heatons and Johnson could not
work together which Katter felt this meant they could move forward. They would now work
on elevations and refining the architecture. They did complete work on the Phase I study
which was found to be clean as far as contaminants, and soil tests were completed and looked
good as well. The basic technical \york is done J.nd now they can proceed with design. They
will now start this month to talk with the other property owners and he will get back to
Koropchak in a few weeks regarding an agreement. He also advised that he would be happy
to meet with anyone that is in opposition to this project and he would provide business cards
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HRA Minutes - 04/02/03
to give to those people.
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Lahr asked Katter if they could meet the current time frame and he stated he did not feel that
this would be a problem with meeting the deadline of the end of June 2004. Kauer again
stated that the key was to meet with the Heatons prior to meeting with any other property
owners, and now he will start making the other calls next week. Koropchak advised that there
are many steps to go through as far as review of the plans, etc., and he was well aware of that
process. There was no further discussion.
B. Redevelopment of a portion of Block 51.
Koropchak met with Sawatzke on March 281h. She stated that based on Ehler's input,
Sawatzke was given a dollar amount and net present value. Koropchak discussed with the
Attorney qualifications for the proposed TIF district and noted this was doable.
Sawatzke addressed the HRA and stated he did not have any additional information, and the
property owner next to him had not yet returned so he has not been able to contact him. He is
still concerned with the proposed project for Block 52, Phase III and it's impact on his project.
There was no further discussion.
C. Redevelopment of Block 36, Phase I I.
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Koropchak advised that Brad Johnson was present and asked to give an update to the HRA
members. He advised the status of the restaurant and that Coldwell Burnett would be leasing
the rest of the space. He stated the rental property in town is soft at this time as it is all over.
He felt by mid summer it would all be leased, referring to space above the restaurant. He
noted that the modules were now in place above the garage and that they have a purchase
agreement with a current property owner and hoping to close in June. He advised this was a
key site, and one of the other owners stated she would like to stay and move into one of the
new units. The third person would be an investor.
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Johnson stated an issue would be that they need to add about another 20 parking spaces and
could add to a semi private/public parking, stating that another 12 units could be constructed.
He felt this might be a similar transaction as the one with the BRA and Hans Hagen, advising
that if they had rental versus for sale, the values would not be there. They anticipate the
homes to sell for about $165,000 per unit, which would generate appro x $22,000 in taxes per
year. He stated there was a gap of about $150,000 and they feel that they could afford
$15,000 per unit. The two things they would ask for would be the current value of the TIF to
reimburse for acquisition and also help with infrastructure support to make the parking lot
work. They are looking at the south end of the alley for the 20 parking spots, they currently
have 200 ft:, and to make the alley 2 way they would place parking on the right hand side. The
rOJ.d\\'ay for the ne\\' housing would be internal. They may ask for another $50,000 in
assistance, and anticipated total acquisition costs at $420,000. It was advised that July 2004 is
the deadline to begin a project, but the HRA will be looking at extending the deadline for 5
years.
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HRA Minutes - 04/02/03
Andrews asked if this would be a net gain of parking and Johnson advised that on that side of
the street with no additional square footage, the units staying the same, would add an
additional 20 spots. Andrews also asked about the independent structures which have now
turned into row homes and Johnson felt that this would work best, further stating that they
may come with a mixture of 6 duplexes and 6 row houses. He stated they are concerned with
parking and would like to add more for tenants in the carriage homes.
Barger asked if the dollar amount has changed and Johnson stated only in the tax base as these
would be for sale ffild not rental. With the new tax law the capacity for single family and
rental are about equal. Koropchak stated that the HRA would now be looking for plans to be
submitted.
7.
Consideration to adopt a resolution approving a Special Legislative Bill to extend the five-
year activitv rule for TIF District No. 1-22.
Barger asked Koropchak if this extension would encompass the entire downtown area and she
stated that it did include the entire district. As a follow-up to the HRA' s March decision to
not proceed with a special bill and per the recommendation of the HRA Attorney; Mark Ruff,
Barger, and Koropchak met on March 14 to clarify the benefits of the proposed bill.
Koropchak stated she misunderstood that without the extended legislation, the HRA could not
increase the amount of the temporary bond if necessary. Upon the advise of the consultants
and with Wolfsteller's approval to move forward, the Council adopted a resolution endorsing
the special legislation bill on March 24. On March 25, Koropchak and the Chamber Director
went to thc Capitol and talked to Mark Ourada and Bruce Anderson about supporting and
endorsing the bill. It was the recommendation of the HRA Lobbyist to have support from the
business community because Anderson had some hesitation about-eftdorsing the bill due to a
previous sales tax bill presented by the City of Buffalo which was controversial. Today,
Koropchak and Wojchouski went before the Senate Tax Committee to introduce the bill.
Koropchak became aware that Ourada and Anderson had received four telcphone calls in
opposition to the bill. Two individuals appeared at the Capitol to testify against the bill.
Senator Ourada did allow the bill to be introduced and Koropchak was advised to work out
the opposition at the local level in order for the bill to move forward. The Bill was well
received by the Senate Tax Committee.
Fair asked the reason for opposition and Koropchak stated it was her understanding that the
opposition fCIt the Block 52 project was driving the 5-year extension bill. The bill allows
time to work on all projects within the district for the good of the community. Koropchak
noted asking for an extension is being confused with approval of proposed projects, two
different issues. She also stated that none of the developers of the three proposed projects
were notified of the special legislation bill.
Koropdlak adviscd that thc bill also provides the option of providing both Lip front and pay as
you go financing. If they get the extension they have time for any project to move forward.
Barger added that with the current proposal by Steve Johnson, that they will have the monies
spent so this would not affect that project. But if the project doesn't materialize, then it
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HRA Minutes - 04/02/03
becomes an issue.
Fair added that he also felt this would be a benefit to the HRA for future projects, if they
didn't get the extension it limits their options for assistance. Koropchak added that they are
only asking for a 5 year extension on activity, not the life of the district. Barger asked if when
the City Council recommended this they understood that this was the entire district. Barger
asked if they will continue to work with the lobbyist, and she stated yes and with the
community as well, noting those opposed. She added that most of the projects are a long way
off and they need to look at resolving some of the local concerns. She hoped that people will
see this as two separate issues, extending the time period is not being driven by anyone
project. Fair added that the representatives need to be aware of the downtown revitalization
project which has been in place since 1997. Koropchak advised that she had provided that
information to the representatives. Barger asked if it was 5 years or nothing, and she added
that some communities may ask for more, but get less. She felt it was more an issue of it
passing, not years. Steve Andrews felt there was nothing controversial and Koropchak
concurred. stating everybody wins and the whole point of the resolution is to give the HRA
another tool for redevelopment.
A MOTION WAS MADE BY STEVE ANDREWS TO ADOPT THE RESOLUTION
APPROVING A SPECIAL LEGISLATION BILL EXTENDING THE FIVE-YEAR
ACTIVITY RULE TO TEN YEARS FROM JUNE 30, 1997 TO JUNE 30, 2007. AND
AUTHORIZING STAFF TO TAKE SUCH ACTION AS IS NECESSARY TO CAUSE
ENACTMENT OF SUCH BILL. DARRIN LAHR SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSL Y.
8.
Consideration to approve the election of HRA officers for 2003 and approve the appointment
of commissioners to committees.
Koropchak clarified that the appointments are from April to April. Steve Andrews agreed to
be the Chair. Koropchak advised that the only active committee is the Marketing Committee
and that Lahr and Barger were on this committee. She also stated that Andrews had been
appointed to a 3 year term on the MCP, advising the term is not up yet.
OFFICERS
A MOTION WAS MADE BY DARRIN LAHR TO NOMINATE AND ELECT STEVE
ANDREWS AS CHAIR AND BILL FAIR AS VICE CHAIR OF THE HRA FOR YEAR
2003, AND APPROVE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY-
TREASURER FOR 2003. BRAD BARGER SECONDED THE MOTION.
There was further discussion by Fair clarifying his position as filling out Bob Murray's term
and lhat he was yvilling to move uuwn the list tu serve as an officer, bL:ing lhL: newl;;sl member.
It was the consensus to keep Fair in the current rotation list.
WITH NO FURTHER DISCUSSION, MOTION CARRIED UNANIMOUSLY.
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HRA Minutes - 04/02/03
COMMITTEES
A MOTION WAS MADE BY BILL FAIR TO APPROVE THE APPOINTMENT OF BRAD
BARGER AND DARRIN LAHR TO THE MARKETING COMMITTEE. STEVE
ANDREWS SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
9.
Consideration to review for amending the HRA Business Subsidy Criteria and HRA Bylaws.
Koropchak stated this is an annual housekeeping item and within the HRA bylaws it states
that they look at this annually. She did not have any amendments. She clarified that the
amendments listed in the bylaws had already passed, notirig the last amendment was to
change the meeting time to 6 p.m. Fair stated that he would like to see the meeting start time
back to 7 p.m. but it was the consensLls of the other members to keep it at 6 p.m.
There were no recommended changes.
10.
Consideration to review and accept the year-end financial reports for the HRA General Fund
and TIF Fund as prepared bv HRA Treasurer Wolfsteller.
Koropchak advised that Wolfsteller had prepared the financial reports, but was unable to
attend the meeting. She noted that she would go through the report with the members in his
place. HRA general funds refers to nonrestrictive funds, if subtracting cash on hand, this
would give a total cash balance of all TIF districts. They discussed the dollars allocated for
purchasing industrial land and Barger asked about a site on Hwy 25 and would they want to
look into that parcel to see what the property is being sold for as this was an area they had
discussed previously for industrial land. Koropchak advised of the districts that had been
decertified as well. Barger asked what will happen with the transfer of the bank and library
and Koropchak advised that the tax increment from the former Marquette Bank was approx
$11,000 per year and it will now become tax exempt. She also advised of the TIF district
summaries. Lahr questioned the total loans incurred and what loans would this refer to and
she advised where the totals came from.
A MOTION WAS MADE BY STEVE ANDREWS TO ACCEPT THE FINANCIAL
INFORMATION AS PREPARED. DARRIN LAHR SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSL Y.
II. Consideration to authorize payment ofHRA bills.
12.
A MOTION WAS MADE BY BILL FAIR TO AUTHORIZE PAYMENT OF THE HRA
BILLS. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
Consideration of Executive Director's Report.
Koropchak provided the report and provided a letter signed by local businesses in support of
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HRA Minutes - 04/02/03
the 5 year extension for TIF.
13.
Committee Reports. There were no reports.
14. Other Business. None
15. Adiournment
A MOTION WAS MADE BY BILL FAIR TO ADJOURN THE MEETING AT 7:30 P.M.
BRAD BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y.
HRA Chair
Recorder
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H RA Agenda - 5/7/03
5.
Consideration to hear redevelopment updates:
A. Phase L II, and III of redevelopment design concept for a portion of Block 52.
At the lIRA meeting of March 5, 2002, Fred Katter of the Pineapple Group, presented a
preliminary concept design for redevelopment of a portion of Block 52. The HRA felt
the concept met the overall spirit of the Comp Plan, and informed Katter to proceed. In
conversation with Mr. Kalter on April 30, he continues to work out details to bring a co-
developer on board. If a co-developer is signed~on, Mr. Katter and the co-developer will
attend the HRA meeting. Until such time, Mr. Katter has not approached any of the
property owners relative to acquisition nor has any plans been submitted for Site Review
which is nccessary for conditional use permits or PUD applications. Parking, City
existing parking lot property, Walnut Street, traffic flow, and property acquisition arc
items to he reviewed. The HRA is aware that there is opposition to the project as
presented: Obstruction of river view, selling puhlie parking land once assessed, and
potential of condemnation.
B. Redevelopment design conceDt ior a portion of Block 51.
Pat Sawatzke has was contacted on April 30, 2003, for a project update. The I-lRA
reviewed a preliminary concept for redevelopment of a portion of Block 5] and felt the
concept met the overall spirit of the Camp Plan and informed the developer to proceed.
Sawatzke previously informed the HRA that Mr. Gustafson would he returning from
Florida in May and would then approach Mr. Gustafson to begin to negotiate for purchase
of the parcel.
C. Redevelopment design concept ft)! Phase II, Block 36.
In conversation with Brad Johnson, Lotus Realty, on April 30, 2003, he reported having a
purchase agreement on the one parcel and having conversation with the other two owners
who are willing participants. With Barry Fluth back in town, they will discuss the
concept iI-x sale or rental housing with additional parking for commercial area. Johnson
was requested to submit a concept plan for Site Review. Fluth has requested a
Certificate of Occupancy for the Carriage I louse from the Building Departmcnt. Under
the Executive Director's report is an update relative to compliance with the Contract for
Private Redevelopment prior to release of up-front TIF Funds.
D. Request for TIF assistance for redevelopment of a Dortion of Block 37.
Tom Holthaus, partner in the KWIK TRIP Gas Station along West Broadway, has
inquired to the possihility ofTIF assistance. Preliminary plans are to acquire the house to
the west of the station for redevelopment into parking and to construct a second floor fex
office space over the existing gas station, and add a car wash. City Staff/consultants will
review the concept for consistency with the Comp Plan on April 30. TIF assistance
pending given the "but for" test, amount tax increment generated, compliance of comp
plan, and I IRA policy approval. Only in conversation stage. Maybe a better solution is
to redevelopment the entire two lots.
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HRA Agenda - 5/7/03
6.
Consideration to approve modifieations to the Contract for Private Development
between .l.A.C. Development. LLC. and the HRA. to approve assil:mment of the
modified Contraet from .J.A.C Development. LLC to Production Stamping. Ine. and
to authorize the HRA Attorney to prepare sueh documents.
A. Reference and backeround:
Subject to the terms and conditions negotiated between the lIRA and JAC (sec attached
letter of April 14,2003), JAC sold the manuf~lcturing facility located at 9600 Fallon
Avenue NE to Production Stamping, Inc. on April 14, 2003. Production Stamping now
occupies the building and is operating. As you recall, TIF District No. ] -23 was created
for Midwest Graphics with pay~as-you-go assistance in the amount of $] 8] ,000 which
was later changed to up-front assistance. The facility has heen vacant It)!. ahout one year.
Prior to the closing of April 14 and after conversations between I-IRA Chair Andrews and
the Executive Director, the terms and conditions within the attachcd Ictter were
negotiated and the HRA is requested to approve those recommendations.
On April 28, 2003, the City Council approved amending the Loan Agreement between
the HRA and City relative to extending the payment schedule on thc Tax Increment
Revenue Note. Based on the 2003 estimated tax increment, the Note payment schedule
will he extended from August 1, 2005, to August 1,2006. The liCe duration ofTlr
District No. ] -23 is May 26, 2009.
Production Stamping hrings 35 immediate new jobs to the City and plans to add another
20 johs within two years. Production Stamping relocated from Rogers, MN.
You will note in the Executive Director's report, Production Stamping has been invoiced
for administrative costs overruns associated with TIF District No. 1-32. District I ~ 32 was
not certified at the County.
B. Alternative Aetions:
1. A motion to approve modifications to the Contract for Private Development
between .lAC Development LLC and the HRA, to approve assignment of the
modified Contract from JAC Dcvelopment LLC to Production Stamping, Inc.,
and to authorize the HRA Attorney to prepare such documents.
2. A motion to deny approval of any action.
3. A motion to table any action.
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HRA Agenda - 5/7/03
c.
Recommendations:
Recommendation is Alternative No.1. Payment of the tax increment deficiency by the
seller is consistent with HRA policy, HRA is able to retire their Note debt, and the City
gains jobs in a vacated manufacturing beility. Production Stamping runs a good
operation.
D. Supporting Data:
Copy of letter outlining terms and conditions of the modifications, copy of Loan
Agreement between City and HRA, and estimated payment schedule for TI Revenue
Note.
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APR 14 '03 07:03AM CITY OF MONTICELLO
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&A
April 14, 2003
MONTlCELLO
Charles Van Heel
Allied Properties & Management, LLC
20600 County Road 81
Rogers, MN 55374
RE: lA.C. D~vclopment, LLC Matter
Dear Chuck:
We understand that J.A.C. Development, LLC ("lAC") imends to sell the property at l.ot 1, Block
I, Monticello Commerce Center Tl1ird Addition to the owners of Production Stamping, Inc. As you
know, lAC is currently oblig.ated to the HRA under certain provisions ot" the Comrnct for Private
Redevelopment, originally wilh Allied Con1panies, LLC doted as of June 3, 1998, as amended by a
Firs{ Amendment dated July 28, 1999 (the "Contract"). lAC was an assignec of Allied Companies,
LLC. In prior assignment documents, lAC expressly retained the obligation to pay tax increnlent
ddiciencies under Section 3.5(b) oftne amended Contract.
The BRA has determined that as of the current date, there is an outs{.Ulding to.x increment
deficiency undcr Seclion 3.5(b) in the amOUlll of $18,795. This deficiency was created by property
taX reforms enac{ed in 2001, whieh reduccd the lax increment collccted n"om commercial'property
thrulIghout Minne:sol8.
The HRA ,.\lso estimates tlHH tux increment will continue to fall short of thc required payments
through August 1, 2005 (the final payment date under the COl1tract). Based on current projections
of tax increment collection in 2003 (approximately $34,000 of "Available Tax Increment"), it
appears that the shortfall will be about $19,500 in each of years 2003 and 2004.
Based on discus:sions with {he BRA bo.n-d chair, I will make the following recommendation to the
HRA for considerationa{ its nrst meeting in May:
1. If lAC pays the outstanding deticiency ($18,795), the HRA would revise the rl;;maining
payment schedule l() reflect currem estimates of tax increment, including extension of time for
payment if necessary (up to February 1, 2009), We currently expect that such revision would
elimimlle futur~ deficiencics, though the HRA can make no warranties 'to that etfect.
2. Production Stamping, Inc- would aSSllrl1e the obligations under Section 3.5(b) of tbe
Concract in the event further lax increment deficiencies occur (despite the revised payment
schedule). production S{amping, Inc- ......ould also assume tbe obligation to ensure that all jobs at {he
property afkr the transfer will meet the requirements 0 f Section 3.7 (c) 0 f the Contlact (Le -, at least
(Y1onti<;:t:lle Cicy H\lll, 505 Wwnut Sttc:~{, Suil\; I, Monlh.:ello, MN 5'362.8831 . (763) 295-2711 . Fax: (763) 2954404
Ortice of Public Wel'les, 909 GolfCo\lf~e Rd., lVlonticcllo, MN 55362' (763) 295.3170' Fa)\.: (763) 271-)272
APR 14 '03 07:03AM CITY OF MONTICELLO
P.3/3
90% aTe filled by persons earning at least 160% of the applicable federal minimum wage). This
obliga.tion remains in effect only until the tinal payme1'lt under Section 3.5(b).
3. TIle assessment agreement remains in effect and is binding 011 Production Stamping, Inc. ·
That agreement sets the minimum market value of the property at $1,825,000.
4. W c also understand that lAC will pay up to $1,500 of \he HRA's legal costS in connectiO\l
with modification of the Contract.
5. Upon lAC's payment of the outstanding deficiency and execUtiOll of an assignment and
assumption between lAC and Productlo\l Stamping as described above, the HRA will release lAC
from all obligations under the ContraCt
The.. terms are subject to approval by the HRA board. In addition., the change in payment schedule
under Section 3.5(b) is subject to appToval by the City Council, because the City made the original
loan and the HRA has pledged to repay all the amounts received under that provision to the City. If
both bodies approve, these telms would be documented in an amendment to the ContraCl.
lfyou have further questions, please let me know.
Since:rcly,
o ~ \-<- cJ) 0 <z. !J.....3=-.
Ollie Koropchak
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The undersigned agree to the foregoing termS:
J.A.C. DEVELOPtvfEN-f,LLC
PRODUCTION STAMPING, INC.
ByCk~rr#r
Da.te: April 4 2003
By fiPpt1c.{;/J 1>i1Jm/f ":! ~C .
Its $ ,LI. -
Date: Aprill.!i..-, 2003
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Mr~ ~~ .~~ ~('~~H~ ~!IY Ur ~ONrrCELLO
P.3">3
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90% are filled by persons earning at least l60% of the applicable federal minimum wage). This
obligation remains in effect only until the final payment under Section 3 .5(b).
3. The assessment agreement remains in effect and is binding on Production Stamping, Inc.
That agreement sets the minimum market value of the property at $1,825,000.
4. We also understand that lAC will pay up to $1,500 of the HRA's legal costs in conneetiOll
with modification of the Contract.
5. Upon JACs payment of the outstanding deficiency <md execution of an assignment and
assumption between JAC and Production Stamping as described above, the HRA will release lAC
from all obligations under the Contract
These terms ate subject to approval by the HRA board. In addition, the change in payment sched111e
under Section 3.5(b) is subject to approval by the City Council, because the Ciry made the original
loan and the HRA. has pledged to repay all the amounts received under that provision to the City. If
both bodies approve, these telmS would be documented in an amendment to the Contracl.
If you have further questions, please let me know.
Sincerely.
o ~ \-<- tn ~ <z. ..Q~
. Ollie Koropchak
The undersigned agree to the foregoing terms:
l.A.C. DEVELOPMENT,LLC
PRODUCTION STAMPING. INC.
By{fsgf~.
Date: April 4 2003
By fpJu'f}/J ~.11 ti<I.;W~ .
lts $. ,OJ. V
Date: April1d-.2003
.
&A
.
LOAN AGREEMENT
THIS AGREEMENT is entered into as of the ~hday of August , 1999 by and
between the City of Monticello ("City") and the Housing and Redevelopment Authority in and
for the City of Monticello ("Authority").
WHEREAS, the Authority has undertaken a program to promote economic development
and job opportunities and to promote the development of land which is underutilized within the City
of Monticello, Minnesota (the "City"), and in this connection created Redevelopment Project No. I
(the "Project") in an area (the "Project Area") located in the City and Tax Increment Financing
District No. 1-23 (the "TIF District") within the Project Area, all pursuant to Minnesota Statutes,
Sections 469.001 to 469.047 (the "Act") and Minnesota Statutes, Sections 469.174 to 469.179; and
WHEREAS, the Authority has proposed to provide certain financial assistance to facilitate
development and job creation on certain property in the City described as Lot 1, Block 1,
Monticello Commerce Center Third Addition, according to the recorded plat thereof, Wright
County ,Minnesota ("Development Property"), pursuant to a Contract for Private Development
between the Authority and J.A.c. Development Company, LLC (as assignee of Allied Companies,
LLC) dated June 3, 1998 and a First Amendment thereto dated July 28, 1999 (collectively, the
"Contract"); and
WHEREAS, the City is a state public body that is authorized under Minnesota Statute,
. Section 469.041, clauses (1) and (8) to make loans for the Project; and
WHEREAS, the City has determined that it is in the best interest of the City to loan the
Authority certain funds in aid of the Project under the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. The Loan Amount. Subject to and upon the terms and conditions of this Agreement,
City agrees to loan to the Authority the sum of One Hundred and Eighty-One Thousand and
no/lOOths Dollars ($181,000), or so much thereof-as is disbursed to the Authority in accordance
with this Agreement (the "Loan")_ The Loan shall be evidenced by a Tax Increment Revenue
("Note") payable by Authority to City substantially in the form attached to this Agreement, which
shall be delivered to the City and dated as of the Loan Closing Date as defmed in Section 3.
2. Repayment of Loan. The Loan shall be repaid with interest as follows:
(a) Interest at the simple rate of five percent (7.00%) per annum shall accrue.
from the Loan Closing Date (as hereinafter defined) until the Loan is repaid in fulL
.
(b) Principal and interest on the Loan amount will be payable solely from and to
the extent of the Available Tax Increment and any other payments by the Developer to the
Authority under Sections 3.5 and 3.7 of the Contract. The Authority hereby irrevocably
SJB-167081
MN 190-80
~;::n:~a~~~~~ :t~:'~'::'ty ~::~ ~~~Q~ i';::::~e7 :~:~~~:::tand Developer .
3. Disbursement of Loan Proceeds. The City will disburse the Loan amount to the
Authority upon satisfaction of the conditions for disbursement to the Developer under the Contract
(the "Loan Closing Date").
4. Definition of Terms. The terms capitalized herein have the same meaning as
provided in the Contract unless otherwise defmed herein.
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
proper officers thereunto duly authorized on the day and year first written above.
CITY OF MONTICELLO
B~~~
Its M or
~;~sf!:F
.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MO~
By ~~~ .
Its ~ o':\-
By ~ ~,.--: 0.. \,( (1\ 0 ~.Sb..--
Its Executive Director
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SJB-167081
MNl90-80
2
.
.
.
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UNITED STATE OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
No. R-l
$181,000
TAX INCREMENT REVENUE NOTE
SERIES 1999
Rate
Date
of Original Issue
7.00%
ad.o~ \ ~ ,1999
Principal Amount: $181,000
Registered Owner: City of Monticello, Minnesota
The Housing and Redevelopment Authority in and for the City of Monticello, Minnesota
(the "Authority"), for value received, certifies that it is indebted and hereby promises to pay to the
registered owner specified above, or registered assigns (the "Owner"), but solely from the sources,
to the extent and in the manner hereinafter identified, the principal amount specified above together
with interest on the outstanding principal sum from time to time at the interest rate specified above,
payable on each February 1 and August 1 ("Payment Dates"), commencing August 1, 2000 and
continuing through August 1,2005, in the amounts set forth in Attachment A hereto.
Payments are payable by mail to the address of the Owner or such other address as the
Owner may designate upon 30 days' written notice to the City. Payments on this Note are payable
in any coin or currency of the United Sates of America which, on the Payment Date, is legal tender
for the payment of public and private debts.
Interest at the rate stated herein shall accrue on the unpaid principal, commencing on ,the
date of original issue. Payments shall be applied first to accrued interest and then to unpaid
principal. Interest accruing from the date of original issue to the first payment date will be
compounded semiannually on each February 1 and August 1 and added to the principal amount.
date.
This Note is subject to prepayment in whole or in part at the option of the Authority on any
This Note is issued to aid in financing certain public redevelopment costs of a Project
undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through :469.047, and
is issued pursuant to a Loan Agreement between the Authority and the City dated AUGUST 9
1999, and pursuant to and in full confonnity with the Constitution and laws of the State of
S18-167081
MNI90-80
Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited
obligation of the Authority which is payable solely from (a) Available Tax Increment a<; defined in .
the Contract for Private Development between the Authority and J .A.c. Development, LLC, as
assignee of Allied Companies, LLC ("Developer") dated June 3, 1998, as amended by a First
Amendment thereto dated July 28, 1999 (the "Contract"); (b) any payments by the Developer to the
Authority under Section 3.5 of the Contract in the event of deficiency in Available Tax Increment;
and (c) any repayments by the Developer under Section 3.7 of the Contract (collectively, "Pledged
Revenues"). This Note and the interest hereon shall not be deemed to constitute a general obligation
of the State of Minnesota or any political subdivision thereof, including, without limitation, the
Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to
pay the principal of or interest on this Note or other costs incident hereto except out of moneys
pledged thereto under the Resolution, and neither the full faith and credit nor the taxing power of the
State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of
or interest on this Note or other costs incident hereto.
The Authority shall pay to the Owner on each Payment Date the lesser of (i) the schedule
amount due on such Payment Date as shown in Attachment A, or (ii) the amount of Pledged
Revenues available to the Authority as of that Payment Date. To the extent that, on any Payment
Date, the Authority does not have on hand sufficient Pledged Revenues to make the scheduled
payment, the amount of deficiency shall be deferred and paid, without interest therefrom, to the
extent possible on the next Payment Date on which the Authority has received Pledged Revenues in
excess of the scheduled payment amount on such Payment Date. If any amount payable under this
Note has not been paid by August 1, 2005, and after any payment is made on such date, any amount
not paid shall be forgiven and the Authority shall have no further liability with respect thereto. .
This Note shall not be transferred to any person without written consent of the Authority.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be
performed in order to make this Note a valid and binding limited obligation of the Authority
according to its terms, have been done, do exist, have happened, and have been performed in due
form, time and manner as so required.
-
IN WITNESS WHEREOF, the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota has caused this Note to be
executed with the manual signatures of its Chair and Executive Director, all as
of the Date of Original Issue specified above.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MO LLO, MINNESOTA
,-.. ". , \ / () C\
\.. )~ ~U\u~'-~~
Executive Director '
.
S18-167081
MNl90.80
2
.
.
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ATTACHMENT A
Payment Schedule
Pa
Interest
4,300.71
4,300.71
6,717.41
6,000.35
5,258.20
4,490.94
3,696.83
2,875.86
2,026.16
1,147.74
238.57
Princi al
0.00
0.00
20,487.39
21,204.45
21,921.64
22,688.90
23,456.12
24,277.09
25,097.80
25,976.22
6,816.39
Total Pa ment
4,300.71
4,300.71
27,204.80
27,204.80
27,179.84
27,179.84
27,152.95
27,152.95
27,123.96
27,123.96
7,054.96
SJB-167081
MN 190-80
A-I
APR, 14,2003 11: 24AM
EHLERS & ASSOCIATES
NO. 3687 p, 2
City of Monticello, MN
Midwest Graphics
.
Estimated payment schedule for remaining principal plus deficiency with estimated revenue of
$36.416.58 per year throUghout remaining life of district.
7.00% Period
Deficiency TIF Interest Principal Total Ending Payment
Balance Payment Revenues Paid Paid Payment Balance Date
121,442 1 8,795 37.004 4,250 32.754 37,004 68,688 8/1/2003
88,688 18,209 3.104 15.105 18,209 73,583 2/1/2004
73,583 18,209 2.575 15,634 16,209 57,950 6/112004
57,950 18.209 2,028 16,181 18,209 41,769 2/1/2005
41,769 18.209 1.462 16,747 18,209 25,022 8/112005
25,022 18,209 876 17,333 18,209 7,689 2/1/2006
7,689 18,209 269 1,689 7,958 8/1/2006
18,209 2/1/2007
18,209 8/112007
18,209 2/112008
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MC100-01 .' General
Professional Services
3/14/2003 MTR Mtg on blool( 51
3/17/2003 MTR Block 51 run
Total Due This Month:
Status of Account:
Current
$218.75
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
April 10, 2003
Invoice # 20713
? 13. ~I t, ~ J-~ . ~\ q 9
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Hours Amount
0,75
1.00
93.75
125.00
1,75 $218.75
30 Day~_~ 60 D~
$0.00 $0,00
90 Days ___1-29+ Days
$0.00 $0,00
Total
$218,75
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.
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mll APR 1 1 2003 I~
CITY OF MONTICELLO
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
.
HRA Agenda - 5/7/03
8.
Consideration of Executive Director's Report.
a) Legislative Bill - According to John Choi, lIRA Lobbyist, the Monticello Special
Legislation Bill to extend the 5-year rule for TIF District No. 1-22 is still alive in the
Senate Tax 8ill, Local Development Session, and will now move on to the Conference
Committee. Rep. Bruce Anderson walked away from the bill, either endorsed it nor
objected to it. The questions now remaining are: If the Bill will survive the Conference
Committee being endorsed by only the Senate and if the Tax Bill will be approved this
. ')
seSSIOn.
b) Proposed TIF Legislation - I. Upon subdivision or plat, developer must commit to use
of TIF and can not come back to request TIF until two years after approval of subdivision
or plat. 2. A waiting period of 1S0 days (6 mos) to allow opposition to creation ofa TIF
District. 3. Some adjustments to findings of substandard. Effective date after June 30,
2003.
c) Production Stamping, Inc. - Production Stamping now occupies the Fallon A venue
Building (previous Midwest Graphics). They have a local phone number and the entire
operation both office and production are here. Upon gctting settled, the IDC will host a
Open House/Welcome for the company. They bring 35 new jobs to the City of
Monticello. Owner: Les Wurm.
d) Chamber Golf Outing - Through about 75 gratis invitations mailed to developers and
industrial contractors, the Marketing Committee has 28 golfers. Thursday, May 15.
e) I lousing Districts ~ Median hlmily income restrictions decreased in 2003 from 2002:
For I to 2 family members - $76,700 to $75,300 and for f~lmilies of more than 3 _
$88,205 to $86,595.
f) 2003 HRA Officers: Chair Steve Andrews and Vice Chair Bill Fair.
g) Including the 2003 commitments by Council and the I IRA the total amount cOll1mitted
for the use of industrial development is $765,000. Council $365,000 and HRA $400,000.
h) Balance of Aroplax $21,324 and SMM $26,416 TIF Fund for previous LGA Penalty _
available Jc)r industrial public improvements.
i) 2003 EDA Officers: Chair Bill Demeules and Vice Chair Barb Schwientek.
j) The EDA reports a cash balance of $696,970 after disbursement of the Tapper and
UMC loans, April 22,2003. 2002 year-end balance sheet shows assets of$I,357,573.
The EDA voted to replace the Liquor Fund with another $70,000 for 2003 eHective for
tax levy 2004. In 2001, the EDA replaced the Liquor Fund in an amount of $77,000.
Initially the EDA received a total of$383,000 fi-OI11 the Liquor Fund to start the local
revolving loan program.
k) Two leads: 70,000 sq ft: sales and manufacturer of boats. 12 acres. 40-50 jobs.
Expanding from Maple Lake. Wants freeway visibility.
Foam fabricator - Foam packaging materials.
I) Assessment ofTIF Contracts for compliance of completion. fIRA only.
.
HRA Agenda - 5/7/03
m) Remmele Building - Talked with Chuck Jungman at the headquarters relative to
vacating building. Still 4-5 pieces of equipment in Illcility. Plan to place sign on
building after all employces gone, expected mid June. Listed by C. B. Ellis Richardson,
Tom Lclich. Have call in for lead sheet.
.
.
2
\S,C-.
April 29, 2003
MONTICELLO
Mr. Les Wurm
Production Stamping, Inc.
9600 Fallon A venue NE
Monticello, MN 55362
Re: Administrative Costs for TIF District No. 1-32.
Dear Les:
Congratulations on the relocation of Production Stamping to the City of Monticello. We wish you and your
company many prosperous years.
.
Previously, you and [ spoke about the Administrative Costs for the preparation ofT[F District No. 1-32. TIF
District No. 1-32 was prepared in anticipation of the construction ofa 60.000 sq. ft. manufacturing facility on Lot 2,
Block L Monticello Commerce Center Sixth Addition. Upon execution of the Preliminary Development Agreement
between the Housing and Redevelopment Authority in and for the City of Monticello. Minnesota. (HRA) and Wurm
Partnership. LLP, dated June 24. 2002. a $5.000 deposit was received from the developer. Les Wurm, to cover the
Administrative Costs incurred by the HRA. [fthe Administrative Costs exceeded the $5.000 and upon receipt of
such notice. the Developer agreed to deliver the required additional security.
Attached are the invoices from Ehlers & Associates for creation of the T[F District No. 1-32 and from Kennedy &
Graven for preparation of the Contract for Private Development. The invoices total $5.722.50 less the deposit of
$5.000 leaves a balance of $722.50.
Please remit the balance amount of $722.50 due and payable to the Monticello Housing and Redeve[opment
Authority, 505 Walnut Street, Suite I, MOllticello, MN 55362.
Thank you for your attention to this matter. flook forward to visiting your new facility.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHOR[TY
[N AND FOR THE CITY OF MONT[CELLO
a~ \~C1L(9.~~~
Ollie Koropchak
Executive Director
Enc losures
c: T[F District No. 1-32 File
.
Monticello City Hall, 505 Walnut Street, Suite I, 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
INVOICES
.
Ehlers & Associates
May 10, 2002 $ 62.50
September 10, 2002 $3,500.00
Kennedy & Graven
June 30, 2002 $1,260.00
July 31, 2002 $ 855.00
August 31, 2002 $ 45.00
TOTAL $5,722.50
Less Deposit, June 24, 2002 $5,000.00
Balance Due $ 722.50
.
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505 Walnut Avenue, Suite 1
Monticello, MN 55362
September 10, 2002
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MC100-34 TIF District No. 1-32
Professional Services
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Invoice # 19912
8/12/02 MTR TIF District 1-32 Establishment
Hours Amount
Total Due This Month:
Status of Account:
Current
$3,500.00
30 Da s
$0.00
3,500.00
0.00 $3,500.00
"lI:"A
60 Da s
$0.00
90 Da s 120+ Da s
$0.00 $0.00
Total
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.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
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505 Walnut Avenue, Suite 1
Monticello, MN 55362
May 10, 2002
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Invoice # 19446
tJlC100-01
General
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4/3102 MTR Calcs for older districts -i I ....,.c e .a...CL ~
MTR Runs $2m and $2.6m manufacturing '-''''-;P
4/23/02 MTR TIF run cmhp
Professional Services
Hours Amount
c~.~g
1~00
125.00,=>
.;)0
2.50 $312.50
Total Due This Month:
~""
Status of Account:
Total
12.50
Current
$312.50
30 Da s
$0.00
60 Da s
$0.00
90 Da 5 120+ Da 5
$0.00 $0.00
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.
EHLERS
& ASSOCIATES INC
..Iel EN'IERtI
3060 Centre pointe Drive
Roseville, MN 55113-1105
651.697.8500
Page: 7
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
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June 30, 2002
MN190-00103 Wurm Partnership Project- TIF 1-32
Through June 30, 2002
For All Legal Services As Follows:
6/25/2002 DJG draft contract for private development
6/27/2002
DJG draft contract for private development
Total Services:
\.~
Hours
3.60
4.80
$
Amount
540.00
720.00
1,260.00
.
Total Services and Disbursements: $
1,260.00
.
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City of Monticello
Page: 5
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
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July 31,2002
MN190-00103
Wurm Partnership project- TIF 1-32
Through July 31,2002
For All Legal Services As Follows:
7/1/2002 DJG Draft contract for private development
Hours
2.90
2.80
$
7/2/2002
DJG draft contract for private developsnent
Total Services:
Total Services and Disbursements: $
Amount
435.00
420.00
855.00
855.00
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Page: 7
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
August 31,2002
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MN190-00103
Wurm Partnership Project- TIF 1-32
Through August 31,2002
For All Legal Services As Follows:
8/8/02 DJG Revise contract for private development job requirements
Total Services:
Hours
0.30
$
Amount
45.00
45.00
Total Services and Disbursements: $ 45.00
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(6"d .
2003 GOLF PARTICIPANTS
Dick Koppy - Ryan Companies
Dick Brooks - Ryan Companies
Tom Palmquist - Ryan Companics
Dan Tcrry - C B Richard Ellis
Tom Lclich - C B Richard E]lis
Bret Wciss - WSB, Inc
Duane Schultz - Winkelman Building Corp.
Nate Maddux - Winkelman Building Corp.
Matt Brokl - Campbell Knutson
Bruce Halbasch - Kraus Anderson Construction
Steve Heimbuch - Heimbuch Commercial, Inc.
Gabrielle Clark - Garfield Clark & Associates
Lenny Kirscht - First National Bank of Elk River
Greg llayes - Shingobee Builders
Mike Melton - Shingobee Builders
(i-reg Mooney - Spectra Building Group
Ed Sorgatz - Olson General Contractors
Steve Grittman - Northwest Associated Consultants
Robbie Smith - City Council
Dan Frie - HRA
Chuck Van Heel - Allied Properties & Management
Susan Sargent - Center Point Energy
Jim Struckness - The Bainey Group, Ine.
JelfO'Neill - City
Rick Wolfsteller - City
John Chadwick -
Bruce Thielen - Mayor
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TAX INCREMENT FINANCING LOAN 1-12 AROPLAX
FINANCIAL REPORT
December 31 , 2002
LOAN TOTALS -1-12 AROPLAX
Payback began in May, 1993 for 9 years ending in November, 2001.
Semi-annual principal and interest payments total $2369.30 for the year.
Principal
Interest
TOTAL
ORIGINAL
$15,000.00
$6,323.59
$21,323.59
PAID
$15,000.00
$6,324.52
$21,324.52
REMAINING
$0.00
($0.93)
($0.93)
C6 \.
REVENUES
.....~..~..---..~...~..~............~..~..~..~..~.~.~."..-..,~..~.~......,..,~.,~.,~..~..~#~.,~..~...-
Principal Payback
Interest Payback
$15,000.00
$6,324.52
TOTAL REVENUES
$21,324.52
. EXPENDITURES
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TOTAL EXPENDITURES
$0.00
FUND BALANCE FOR TIF 1-12 AROPLAX
*
$21,324.52
*funds are available only for public improvements
TIF.xls: 4/10/2003
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TAX INCREMENT FINANCING LOAN 1-14 SUBURBAN
FINANCIAL REPORT
December 31 , 2002
LOAN TOTALS -1-14 SUBURBAN
Payback began in May, 1993 for 8 years ending in May, 2000.
Semi.annual principal and interest payments total $3522.52 for the year.
<3 l.
Principal
Interest
TOTAL
ORIGINAL
$19,575.00
$6,843.82
$26,418.82
PAID
$19,575.00
$6,841.26
$26,416.26
REMAINING
$0.00
$2.56
$2.56
."~"~"~'~.~.~'~.~.~"~"~.~.~'~'~"~.~.~.~"~"~"~''''''''4IIfI6''~''~.~.~~
REVENUES
Principal Payback $19,575.00
Interest Payback $6,841.26
TOTAL REVENUES $26,416.26
. EXPENDITURES
TOTAL EXPENDITURES $0.00
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FUND BALANCE FOR TIF 1-14 SUBURBAN
*
$26,416.26
*funds are available only for public improvements
TIF14.xls: 4/10/2003
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Drake Court
Central Minnesota Housing Partnership Project Update
April 29, 2003
$158,000 Up-front
Lots 1 ~3, Rlock 1 Certificate of Completion - March 5, 2003
Lots 4 and 9 Closed - No CoC
Lots 5. 6, and 7 - Scheduled to close May 30, 2003
Lot 8 - Available
Lots 10 and 11 - Scheduled to close June 30, 2003
Landscape and sidewalk completed by June 30, 2003. Looking for City to pay for sidewalk, not
part of site plan.
Mix of buyers: Two elderly couples, one single man, three single women, couple single women
with children, three/four young couples with and without families.
$53,000 - at least 3 houses completed CoC - Mareh 6, 2003
$52,500 - at least 4 houses completed
$52.500- at least 4 houses completed by no later than December 30,2003.
Mortgage and escrow funds.
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Transfer funds from '1'1 F 1- 24 to TI F 1-30 for eity permit and application fees $42,750, upon
certificate of completion issued.
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Cll. .J
Amoeo Site Update
Master's fifth Avenue
April 29, 2003
$185,000 Land acquisition and demolition - Pay-as-you-go Finance Method
$75,000 Off-site parking - Up-front Financing adequate unrestrictive parking.
Completion Date December 31, 2002.
C of Occupancy Landmark Square - January 24, 2003
Carriage I louse - None.
No Certificate of Completion -
Nccd proof of recording and copies of fully executed easement documents
Nccd Lcase Agreement with BerIlnet Realty. DA T request of Landscape Plan
Administrativc Costs - Not to exceed $10,000. Upon CoCO
UMC
Pay-as- you-go $395,000
Completion Date July 1,2003
Administrative Costs upon CoC
Hans Hagen Homes
Construction Completion Date July 1, 2003.
Assessmcnt Agrccments, $190,000, as of January 2, 2003, for each unit, rccorded 2002.
Front Strcet Rcconstruction Costs not available.
Lot 6, Block 1, Riverwalk, scheduled fix closing April 29, 2003.
Two other sold.
Administrative Costs upon CoC
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Vine Place - Lots 1-18, Bluck 1 District
Lots 1-8, Block 2 Outside of District
rront Porch Update
April 29, 2003
Pay~as-you-go $180,000
Six townhouses completed by December 31,2002:
Lot 18 - December 10, 2002 CoC
Additional six townhouses completed by December 31, 2003:
Lut 17 - January 17,2003 CoC
Lot 3 - March 20, 2003 CoC
Lut 6 - April 25, 2003 - CoC
Lot 3 - Incume Info received
Lot 13 - Incume Info received
Additional six tuwnhouses cumpleted by December 31, 2004:
Additional eight townhouses completed by December 31,2007.
2002 Incume Restrietions - I tu 2 family members $76,700; 3 or more $88,205
2003 Income Restrictions - 1 to 2 family members $75,300; 3 or more $86,595
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