HRA Agenda 06-04-2003
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 4, 2003 - 6:00 p.m.
50S Walnut Street - Bridge Room
Commissioners:
Chair Steve Andrews, Vice Chair Bill Fair, Darrin Lahr, Dan Frie, and Brad
Barger.
Council Liaison:
Roger Carlson.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer.
GUESTS:
Chuck Van Heel, JAC Development
Barry Fluth, Master's Fifth Avenue, Inc.
1. Call to Order.
2. Consideration to approve the May 7, 2003 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4.
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Consent Agenda.
^- Consideration to call for a public hearing date to extend the Compliance Date within the
Contract for Private Development between the HRA, City, and TCDC.
13. Consideration to amend the construction completion date within the Contract for Private
Development between the HRA, City, and Terrance & Mary Tomann Family Limited
Partnersh i p.
5. Continued - Consideration to approve the Second Amendment to Contract for Private
Redevelopment between the f1RA and JAC Development LLC, the Assignment of Contract for
Private Development between JAC Development LLC and Production Stamping, Inc., and the
Amendment to the Loan Agreement between the HRA and the City.
6. Continued - Consideration to hear updates:
^- Phase I, II, and III design concept for a portion of Block 52.
13. Redevelopment of a portion of Block 51.
C. Redevelopment of Block 36, Phase II.
D. Redevelopment of a portion of Block 37 (request for TIF assistance).
7. Consideration to approve issuance of the Certificate of Completion for Landmark
Square/Carriage House and to authorize payment of the Parking Improvement Costs.
8.
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II.
12.
Consideration to authorize payment of HRA bills.
Consideration of Executive Director's Report.
Committee Reports.
A. Northwest Interchange Corridor - Dan Frie
Other Business.
Adjournment.
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MEETING MINUTES
MONTICELLO HOllSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 7, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Chair Steve Andrews, Vice Chair Bill Fair, and Dan Frie and
Council Liaison Roger Carlson
Darrin Lahr, Brad Barger and Rick Wolfsteller
Ollie Koropchak and Lori Kraemer
Absent:
Staff:
1 . Call to Order.
Chair Steve Andrews called the meeting to order at 6 p.m. and declared a quorum.
2. Consideration to approve the April 2. 2003 HRA minutes.
A MOTION WAS MADE BY BILL FAIR TO APPROVE THE MINUTES OF THE
APRIL 2, 2003 ANNUAL MEETING. DAN FRIE SECONDED THE MOTION.
MOTION CARRIED.
3. Consideration of addinl? or removing items from the al;':enda. None
4.
Consent Al?-enda. None
5. Consideration to hear updates:
A. Phase l. II. and III desi!2:n concept for a portion of Block 52.
Executive Director Ollie Koropchak advised that Fred Katter had stated if they had a co-
developer signed on prior to tonight's meeting, they would be attending. She stated
apparently they did not.
B. Redevelopment of a portion of Block 51.
Pat Sawatzke was present and informed the commissioners that he was still working on
his project and had been in contact with the property owner next to him regarding
possible acquisition of that lot.
C. Redevelopment of Block 36. Phase II.
Koropchak stated that she had spoken with Brad Johnson who informed her that they
currently have one purchase agreement and are working on the others. Barry Fluth also
stopped by City I laIl to obtain another copy of their contract.
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liRA Minutes - 05/07/03
D.
re( uest for TIF assistance.
Koropchak advised that there was a potential project coming up. She stated that Tom
Holthaus had contacted her and advised that he was interested in purchasing the lot to the
west of the Broadway Kwik Stop, demolish the building, and put in a car wash. She
advised that they had discussed design and that she had looked at a similar building in
Rockford, noting that the building had some brick on it, and that it looked very nice.
Koropchak further advised that there will possibly be a policy question for the HRA to
address in the future.
6.
Consideration to a rove modifications to the Contract for Private Develo ment between
lA.C. Development. LLC and the lIRA, to approve assignment of the modified Contract
from lA.C. Development to Production Stamping, Inc., and to authorize the liRA
Attornev to draft such documents.
Koropchak summarized the background for this item and advised that Andrews and she
worked with the HRA Attorney to come to an agreement with the current property owner,
Charles Van lIeel, and Production Stamping who purchased the building and has moved
in. She advised the liRA that III" Dist. No.I-23 went from pay-as-you-go to up-front
assistance and noted there was an outstanding deficiency of $18,795 to be paid by the
owner. The contract would need to be assigned to Production Stamping who would take
over any future tax deficiency. and the seller agreed to pay up to $1,500 of the legal
expenses to modify the contract. She further advised that the City Council approved the
revised payment schedule.
Koropchak provided an e-mail she received from Mr. Van Heel on 5/2/03 asking for this
matter to be deferred until the June meeting so that he could attend and give his
viewpoint bef()re it was voted on. She asked him to submit a letter for this request.
Koropchak stated that it was Rick Wolfsteller's recommendation to table this item until
.June, noting they previously spoke with Mr. Van Heel and he appears to be unhappy with
this matter.
There was further discussion that the owner was aware of the debt prior to this and stated
previously that the "deal would fall through" if the city did not forgive the money owed.
It was noted however, that the sale went through. Koropchak stated that all parties
previously agreed to this. Andrews advised that he had talked to Brad Barger about this
matter as well, and he also felt the same and that it was consistent with what the HRA has
done with everyone else, and there have been no problems before.
A MOTION WAS MADE BY BILL FAIR TO TABLE ANY ACTION UNTIL THE
JUNE 4, 2003 liRA MEETING. DAN FRIE SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
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HRA Minutes - 05/07/03
Consideration to authorize payment of H RA bi lis.
Koropchak advised that she asked Steve Bubul for adjustments on their invoices and
provided copies of the revised invoices. Onc adjustment was regarding a telephone
conversation with Koropchak pertaining to downtown revitalization. This was adjustcd
by Kcnnedy & Gravcn from $126 to $42. Another invoice regarding Block 52 in March
was reduced from $901.25 to $465.50 as Koropchak advised they wcre billing for both
attorneys. Koropchak added that Steve Bubul apologized for the oversight.
Koropchak advised that the HRA had prcviously made a motion regarding the special
legislation bill to extend the 5 year rule, not to exceed $3,000.00 in expenses. The total
through March is $2,076 and will most likely exceed the $3,000. The consent was to
proceed.
Regarding the Hockey item invoice, that goes to the City, not the J IRA.
A MOTION WAS MADE BY BILL FAIR AUTHORIZING PAYMENT OF TIlE HRA
BILLS WrrI-l NOTED ADJUSTMENTS. STEVE ANDREWS SECONDED 'rHE
MOTION. MOTION CARRIED UNANIMOUSLY.
8.
Consideration of Executive Director's Rcport.
Koropchak provided the report and added that CM HP had requcsted thcir second
disbursemcnt but adviscd CMHP that the I-IRA would probably not process the request
until the units elose. She advised also that shc will be recciving copies of escrows for the
landscaping as well. She will start the process for the chccks so they are ready when the
closings are completc. The HRA concurred. Bill fair further stated no final paymcnt
until all items are complete and there is a satisfaction of mortgage, adding that it would
not he fair to the homcowners if the city paid CMHP in full and they did not complete all
requirements. Koropchak addcd there is only one unit left to be sold.
Regarding the Amoco sitc, Koropchak advised that Barry Fluth asked for his pay-as-you-
go dollars and up-front offsite parking dollars. She noted quite a few itcms that nced to
be complete prior to paying this. She also statcd that his expenscs to date arc well below
his $5,000 deposit. UMC is over the $5,000 and Hans Hagen is under the $5,000, adding
that this project should bc complete 7/1 /03.
Vine Place is bchind on completion, 6 homes werc to he completed by the end of 2002
and at this time he has certificate's of occupancies for 3 to 4 of those. Administrativc
costs arc also over the $5,000 dcposit.
Koropchak providcd tax ratc information, noting that Monticello's had gone down.
Koropchak asked if anyone from the I IRA would be intercsted in meeting with an InC
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9.
HRA Minutes - 05/07/03
member, .lefT O'Neill and herself to discuss industrial land acquisition. Dan Frie agreed
to attend the meetings.
Committee Reports. - None
10.
Other Business. None
11.
Adjournment.
A MOTION WAS MADE BY DAN FRYE TO ADJOURN THE MEETING AT 6:40 P.M.
BILL FAIR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Recorder
HRA Chair
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4A.
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HRA A~cnda - 6/4/03
Considcration to call for a uhlic hearin J date to extend the Com lliance Date
within the Contract for Private Dcvclo ment betwecn the HRA Ci and Twin Ci
Die Castinc:s.
A. Refcrencc and Background:
Per the request of Doug I-larmon, Twin City Die Castings, the BRA is asked to call for a
public hearing date to extend the Compliance Date within the Contract for Private
Development between the HRA, City, and TCDC associated with TIF District No. 1-26.
Per the Contract for Private Developmcnt dated October 25, 1999, ARTICLE Ill, Section
3.6 Business Subsidy Agreement. (b) Job and Wage Goals, the HRA can extend the
Compliance Date by up to one year:
Within two years after the date of'issuance (~f'the cert{ficate of completion (~fPhase J (the
"C.'ompliance Date"), the Developer shall cause to be created at least 85 newfiill-time
jobs on the Development Property (excluding any jobs previously existing in the State as
(~f'the date (~f'this Agreement and relocated to this site) and shall cause the vvagesfor
such employees on the Development Property to be asfollows: at least 14johs pay no
les..,' than S 12. OOper hour, exclusive (~f henefits, and at least 71johs pay no less than
58.50 per hour, exclusive of'benefits. Notwithstanding anything to the contrary herein, ~f
the wage andjob goals described in this paragraph are met hy the Compliance Date,
those goals are deemed satisfied despite the Developer's continuing obligations under
Sections 3.6 (a)(6) and 3.5 (d). The Authority may afier a public hearing, extend the
Compliance Date hy up to one year, provided that nothing in this section will be
construed to limit the Authority's legislative discretion regarding this matter.
The only action required by the HRA is to call and set the public hearing date as
Wednesday, JuIy 2, 2003, this the next rcgular scheduled meeting of the HRA. This will
allow the Executive Director to publish the public hearing notice in the local newspaper.
The Certificate of Occupancy was issucd by the Building Official on July 26, 200 I,
making thc "Compliance Date" July 26, 2003.
B. Alternative Action:
1. A motion to call for a public hcaring date of July 2, 2003, to consider extending
the Compliance Date within the Contract for Private Development between thc
I IRA, City, and TCDC, with all Authority costs associatcd with the extension and
public hearing notice at the expense of the Developer.
2. A motion to deny calling for a public hearing date of July 2, 2003, to considcr
extending the Compliance Date within the Contract .........
HRA Agenda - 6/4/03
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3.
A motion to table any action.
C. Recommendation:
Alternative No. I is the recommendation of the City Administrator and the Executive
Director. Mr. Harmon has agreed to pay tl..1r all costs. Ajoh and wage report will be
presented at the July 2 meeting.
D. Supoorting Data:
Excerpt from Contract.
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(8) In addition to the assistance provided under this Agreement, the Developer
expects to receive the following assistance in connection with the Minimum Improvements:
(a) a loan from the Monticello Economic Development Authority ("ED A") in the amount of
$100,000; and (b) a loan from the City (through the State Department of Trade and
Economic Development) in the amount of $400,000 to $500,000. However, nothing in this
paragraph constitutes a contractual obligation by the Authority, the City or the EDA with
respect to such assistance. The parties anticipate that the Developer will enter into separate
business subsidy agreements with the City and EDA in connection with such additional
assistance.
(b) Job and Wage Goals. Within two years after the date of issuance of the certificate of '
completion of Phase I (the "Compliance Date"), the Developer shall cause to be created at least 85
new full-time equivalent jobs on the Development Property (excluding any jobs previously existing
in the State as of the date of this Agreement and relocated to this site) and shall cause the wages for
such employees on the Development Property to be as follows: at least 14 jobs pay no less than
$12.00 per hour, exclusive of benefits, and at least 71 jobs pay no less than $8.50 per hour,
exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals
described in this paragraph are met by the Compliance Date, those goals are deemed satisfied
despite the Developer's continuing obligations under Sections 3.6(a)(6) and 3.6(d). The Authority
may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in
this section will be construed to limit the Authority's legislative discretion regarding this matter.
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(c) Remedies. If the Developer fails to meet the goals described in Section 3.6(a)(3), the
Developer shall repay (1) to the Authority upon written demand from the Authority a "pro rata
share" of the amount of any payments made to the Developer under Section 3.5 hereof, (2) to the
City upon written demand from the City a pro rata share of the amount of any fee waivers granted
under Section 3.8, and (3) to the Authority and City, respectively, interest on the amounts in clauses
(1) and (2) at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2,
accrued from the date of issuance of the certificate of completion to the date of payment. The term
"pro rata share" means percentages calculated as follows:
(i) if the failure relates to the number of jobs, the jobs required less the jobs created,
divided by the jobs required;
(ii) if the failure relates to wages, the number of jobs required less the number of
jobs that meet the required wages, divided by the number of jobs required;
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(iii) if the failure relates to maintenance of the Minimum Improvements in
accordance with Section 3.6(a)(6), 60 less the number of months of operation as a
manufacturing facility (where any month in which the facility is in operation for at least 15
days constitutes a month of operation), commencing on the date of the certificate of
completion and ending with the date the facility ceases operation as determined by the
Authority Representative, divided by 60; and
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(iv) if more than one of clauses (1) through (iii) apply, the sum of the applicable
percentages, not to exceed 100%. 4- A
70H798
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518-169036
MN190-79
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4B.
HRA Agenda - 6/4/03
Consideration to amend the construction completion date within the Contract
between the HRA. Citv. and Terrance & Mary Tomann Familv Limited
Partnership.
A. Reference and background:
Per notification from Dick Salonek, UMC requests the BRA consider amending the
construction completion date within the Contract for Private Development between the
HRA, City, and Terrance & Mary Tomann Family Limited Partnership associated with
Tl r District No. 1-31. UMC has been informed by Olson General Contractors of the
delay in completion of the building. UMC now has arranged to move around the 20th of
August, 2003. Therefore, they request the construction completion date be amended from
July 1, 2003, to September 1, 2003. This completion date becomes important as it is tied
to the certificate of occupancy permit and certificate of completion date which triggers
the "Compliance Date" for compliance of the jobs and wage requirements.
B. Alternative Action:
1.
A motion to approve amending the construction completion date from July 1,
2003, to September 1,2003, within the Contract for Private Development hetween
the HRA, City, and Terrance & Mary Tomann Family Limited Partnership.
2. A motion to deny amending the construction completion date from July 1,2003,
3. A motion to table any action.
C. Recommendation:
Alternative No. I is the recommendation of the City Administrator and Executive
Director.
D. Suoportin2: Data:
Excerpt from the Contract.
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Construction Plarrs, thc Authority shall approvc the proposed change and notify the Dcveloper in
writing of ~ts approval. Such change in the Construction Plans shall, in any event, be deemed
approved by thc Authority unless rejected, in whole or in part, by written notice by the Authority to
the Developer, setting forth in detail the reasons therefor. Such rejection shall bc madc within ten
(10) days aftcr receipt of the notice of such change. The Authority's approval of any such change in
the Construction Plans wi II not be unreasonably withheld.
Section 4.3. ~~9mmerlcemcnt and Completion _of Construction. Subjcct to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements by September
30, 2002. Subjcct to Unavoidable Delays, thc Developer shall cornplete the construction of
Minimum Improvements by July 1,2003. All work with respect to thc Minimum Improvements to
be constructed or provided by the Developer on the Development Property shall be in conformity
with the Construction Plans as submitted by the Developer and approved by the Authority.
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The Developcr agrees for itself, its successors and assigns, and every successor in interest to
the Development Property, or any part thcreof, that the Developer, and such successors and assigns,
shall promptly bcgin and diligcntly prosecute to completion the developmcnt of the Dcvelopment
Property through the construction of the Minimum Improvements thereon, and that such
construction shall in any event be commenced and completed within the period specified in this
Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements in
accordance with this Section touches and concerns the land, and shall run with the property and be
binding upon all successors and assigns to the Development Property. Aftcr the date of this
Agrecment and until construction of the Minimum Improvements has been completed, the
Developer shall make reports, in such detail and at sucli times as may reasonably be rcquested by
the Authority, as to the actual progress of the Developer 'vvith respect to such construction.
Section 4.4. CertitJcate of Complction. (a) PrSlmptly after completion of the Minimum
Improvements in accordance with those provisions of the Agreement relating solely to the
obligations of the Developer to construct the Minimum Improvements (including the datcs for
beginning and completion thereof), the Authority will furnish the Developer with a Certificate
shown as Exhibit B. Such certification and such determination shall not constitute evidcnce of
compliance 'vvith or satisfaction of any obligation of the Developer to any Holdcr of a Mortgage, or
any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any
part thereof.
(b) If the Authority shall refuse or f~lil to provide any certification in accordance with
the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days after
written request by the Developer, provide the Developer with a written statement, indicating in
adequate detail in what respects the Developer has f~liled to complete'the Minimum Improvements
in accordance with the provisions of the Agreement, or is otherwise in dehllllt, and what measures
or acts it will be necessary, in the opinion of the Authority, for the Develfj)per to take or perform in
order to obtain such certification.
(c) The construction of the Minimum Improvements shall be decmed to be complete
upon issuance of a certificate of occupancy by the City for, and the opening for business of, the
Minimum Improvements.
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JKI'-216.17.1vl
MNI90-IOO
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BRA Agenda - 6/4/03
5.
Continued _ Consideration to aporove the Second Amendment to Contract for
Private Redevelo ment between the HRA and .IAC Devclo ment LLC the
Assi nment of Contract for Private Develo ment between .lAC Develo ment LLC
and Production Starn m Inc. and the amendment to the Loan A Jreement between
the HRA and City.
A. Reference and background:
This agenda item was continued from the May HRA at thc rcquest of Chuck Van Heel,
lAC Development LLC. Although Mr. Van Hcel agreed to and executcd the terms and
conditions negotiated betwecn the HRA and lAC per the letter of April 14,2003; Mr.
Van Heel requested to address the HRA prior to any action takcn.
The April 14 letter was negotiated and cxccuted prior to lAC selling the manufacturing
facility located at 9600 Fallon Avenue NE to Production Stamping. As you recall, TIf
District No. 1-23 was created for thc business of Midwest Graphics. The Contract for
Private Development was between J^C and the I IRA and was later assigncd ancl
amended. The pay-as-you-go assistance in the amount of $181 ,000 changed to up-front
assistance. The April 14 letter was drafted by Attorney Bubul based upon input from
HRA Chair Andrews, Executive Director Koropchak and Van Heel's attorney. The
second amendment and assignment was drafted by the Attorney Bubul based on the
executed letter of April 14,2003.
By approving the Sccond Amenclmcnt the BRA agrees to: 1) Amend the Termination
Date 2) upon payment of the deficiency payment by J^C ancl execution of Sccond
Amendmcnt will amcnd the paymcnt schedule 3) upon cxccution of the Assignmcnt will
release JAC from all liabilities of the Contract, 4) upon execution ofthe Second
Amendmcnt, lAC will pay BRA cost of up to $1,500, and 5) Assessment Agrcement
remains in full force and effect.
By approving the Assignment the HRA acknowledges that: 1) JAC has solcl the property
to Production Stamping Inc. PSI 2) PSI assumes all obligations under the Second
Amcndmcnt Contract 3) BRA releases lAC of all liabilities and PSI assumes all
liabilities per Second Amendment 5) the Assignment is binding and inure benefit to
respectivc successors.
On April 28, 2003, the City Council approved amending the Loan Agreement betwcen
the HRA and City relative to cxtending thc payment schedule on the Tax Increment
Revenue Note. Based on the 2003 cstimated "available tax incrcment" and payment of
current deficiency ($18,795), the Note payment schedule will be extended from August 1,
2005, to August 1,2006. Thc life duration of the district is May 26,2009. By approving
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HRA Agenda - 6/4/03
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the Amendment to the Loan Agreemcnt between the City and HRA, the HRA concurs
will the approval of the City Council of April 28, 2003.
Production Stamping brings 35 immediate jobs to the City and plans to add another 20
jobs within two years. Production Stamping relocated from Rogers, MN.
H. Alternative Actions:
1. A motion to approve thc Second Amendment to Contract for Private
Redevelopment betwcen the HRA and lAC Development LLC, the Assignment of
Contract for Private Developmcnt between .lAC Development LLC and
Production Stamping, Inc., and the Amendment to the Loan Agreement between
thc City and HRA.
2. A motion to approve the Second Amendment to Contract for Privatc
Redevelopment betwcen the lIRA and lAC Development LLC, the Assignment of
Contract for Private Developmcnt between the lAC Developmcnt LLC and
Production Stamping, Inc., and the Amcndment to the Logan Agreement between
the City and lIRA with certain adjustments.
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A motion to deny the Second Amendment to Contract for Private Redcvelopment
between the HRA and lAC Development LLC, the Assignment of Contract ........
4. A motion to table any action.
C. Recommendation:
Alternative No. 1 is the recommendation of the City Administrator and Executive
Director. Payment of the tax increment deficiency by the seller is consistent with HRA
policy, the HRA is able to retire its Note debt, and a vacant manufacturing building is
occupied.
D. Supporting Data:
Copy of April 14, 2003 letter, Second Amendment, Assignment, and Loan
Agreement/Note. If available amended Loan Agrecment/Note.
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RPR 14 '03 07:03RM CITY OF MONTICELLO
~A
Api"il 14, 2003
MON'J:1CELLO
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Charles Van Heel
Allied Properties & Management, LLC
20600 County Road 81
Rogers, MN 55374
RE: lA.C. D~vclopIPent, LLC Matter
Dear Chuck:
W < understand that J.A. C. Development, L L C ('" JA C") intends to scll the property at l.ot 1, Block
1, MonticellO C ommercc Cenlcr Third Addition to the owners of Production Stamping, Inc. As you
knoW, JAC is cunently obh&ated 10 the HRA under certain provisions of the Contract for Private
Redevelopment, origi nall y wi lh Allied Con' panies, L L C dated as of June 3, 1998, as amended by 0
First Amendment dOled J ul Y 28, \ 999 (the "C ontract"). J A C was an assignec 0 f Allied Companies,
LLC. In prior as>lgnmen' documents, lAC e~pressly retained the obligation to pay taX increment
deficiencies under Section 3.5(b) oftbe a.menth:d Contract.
The I.IRA has detcrmined thaI as of thc current date, there i. an autSlill,din& tax Illcrcmenl
deficiency undcr Seclion 3 S( b) in the amount of $1 8,795. This deli ciency was created by pro perry
l:IX reforms enacted in 2001, which reduccd the lax increment collcc ted Ii-om commerdal.propert y
thrmlghout Minneso\a.
The HRA also estimates that tax increment will continue 10 fall short of thc required paymcnts
through August I, 2005 (thc lin.l payment date under the eOl,traCt). Bas.-ci on currellt projections
of taX incrcment collecuon in 2003 (approximatelY $34,000 of "A vaLlable Ta.~ Increment"), it
appe.rS that the shortfall will be about $19,500 in each of year, 2003 and 2004.
Based on discus,ions with the BRA board chair, I will make the followlng recommendation to Uoe
HRA. for consideration at its first meeting in May:
1. If lAC pays the outstanding deficiency ($18,795), the HRA would revise the remaining
payment schedule to reflect currem cstimates of Ul~ incremcnt, including extension of time for
payment if necessary (up to February 1. 2009) We curr<ntly expect lhat such revision would
eliminaLe future deficiencics, though the HRJ\ can make no warranties to that effcct
2. Production Stamping, Inc. would assume the obligations under Section 3.5(b) of the
Contract m the evcnt furlher ta~ incremcnt def,cienCl<s occur (de'pite rhe rcvised payment
schedule). Prod ucti on S tamping, Inc. would also assumc the obli gal ion 10 ensure th.t all jobs a' dle
property allcr Ule trans fer will meet the req ulfements 0 f Section J. 7 (c) 0 f thc C o nil act (i e. at least
",ootioollO C1" Holt, '0' W"'o'" s_, Soile I , ",oo"ceno, MN ,,'62.m' . (763) ~'l-l711 'F"" (7631 2.'....04
Otlice of Public WQ'.c. 909 Golf COl,ltse Rd., Mmuiccllu, Nit-! 55362' (763) 295.3170 · p~: (763) 7.71-3272
i""Irr<:..l.'-I 1Q.:;l- \Q( .1Q..;jHf"l -.11 Y Q~.. MONT l.(.;U-LU
90% are filled by persons earning at least t6O% of the appiicable federal minimum wage). This
obiigationremains in effect only until the final payment under Secrion3.5(b).
3. The assessment agreement remains in effect and is binding on Production Stamping, {nc,
That agreement sets the minimum :market valu.e of the property at S 1 ,825,000.
4. W c also understand that lAC will pay up to S 1,500 of 1be HRA' 3 legal coStS in connection
with modification of the Contract.
5. Upon lAC's payment of the outstanding deficiency and execution of an assigmnent and
assumption between lAC ""d Production Stamping as descn"bed above, the HRA will r<:Iease lAC
from all obligations under the Contract.
These tenDS arc subject to approval by the HRA board. in addition, the change in payment schedule
under Section 3.5(b) is subject to approval by the City Council, because the City made the original
loan and the HRA has pledged to repay all the amounts teeeived under that provision to the City. If
boUl bodies approve, thesc terms would be documented in an amendment to the ContraCt.
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If you have further questions, please leI me know.
Sincerely,
o~ \~tf)~<z.!:l~
. Ollie Koropchak
The undersigned agree to the foregoing terms:
J.A.C. DEVELOPl\ifENT,LLC
PRODUCTION STAMPING, INC.
Bytif:Lrr~
Date: APri14 2003
By fJ!)pt1~f/J 5J1Im It If:! )lit: '
Its::e ~.L.I. -
Date: APrilli.-, 2003
.
.
SECOND AMENDMENT TO CONTRACT FOR PRIV ATE REDEVELOPMENT
THIS AGREEMENT is made this day of June. 2003. by and between THE HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR CITY OF MONTICELLO.
MINNESOTA a public body corporate and politic under the laws of Minnesota (the "Authority").
and lAC. DEVELOPMENT. LLC'. a Minnesota limited liability corporation (".lAC').
WITNESSETH:
.
WHEREAS. the Authority has entered into that certain Contract for Private Redevelopment
with Allied Companies. LLC'. dated as of June 3. 1998 (the "Contract'.) regarding the parties
respective responsibilities in connection with development of certain property in the City of
Monticello defined in the Contract as the '.Development Property:' and
WHEREAS. Allied Companies. LLC assigned all its rights and obligations under the
Contract to .lAC by that certain Assignment of Contract tllr Private Redevelopment dated as of
September 8. 1998: and
WHEREAS. the Authority and .lAC have entered into a First Amendment to Contract for
Private Development dated July 28. 1999: and
WHEREAS. .lAC assigned all rights and obligations under the Contract except those rights
and obligations described in Section 3 of the Contract. to Midwest Graphics and Response Systems.
Inc., a Minnesota corporation (""Midwest Graphics"") by that certain Assignment of Contract dated
as of October 19. 1999: and
WHEREAS. Midwest Graphics assigned all rights and obligations under the Contract to
Right Choice Fulfillment Services. Inc.. a Minnesota Corporation. by that certain Assignment of
Contract for Private Redevclopmentdated as of No\Cmber 17. 2000: and
.
S.lfI.2} II ~9v I
fVINI90.RO
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WHEREAS. Section 3 of the Contract provides for reimbursement of Land Acquisition
Costs and Site Improvement Costs related to the Development Property on a "pay as you go" basis.
as described in Section 3.5 of the Contract: and
WHEREAS. the Authority and lAC have determined to modify the Contract as described
herein: and
WHEREAS. JAC intends to assign all of .lAC's right title. interest and obligations under the
Contract, as amended and as revised by this Second Amendment to Contract for Private
Development. to Production Stamping, Inc.. a Minnesota corporation ("PSI"), by an Assignment of
Contract for Private Development in substantially the form attached as Exhibit C hereto (the
.. Assignment ").
NOW. TI-IEREFORE. 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 follO\vs:
I. In Section 1.1 of the Contract. the definition of "Termination Date" is amended to
read as follows:
"Termination Date" means the earlier of August 1. 2006. or the date on which the Authority
has received the Principal Amount together \vith interest thereon. in accordance with Section 3.5 of
the Contract.
.
!
Section 3.5(b)(i) of the Contract is amended to read as follows:
(i) As of the date of this Second Amendment. a deticiency in payments due under
Exhihit B to the First Amendment had accumulated in the amount of $18.795 (the "Deticiencv
Payment"). .lAC has paid the Deticicncy Payment upon execution of this Agreement, receipt of
which the Authority acknowledges. The parties agree that the outstanding Principal Amount as of
February I, 2003 is $121,442. which amount shall be paid. together interest thereon on the rate of
7% per annum ti'om October 19. 1999 (the "Disbursement Date"). in semi-annual installments
payahle on each August 1 and February 1 through August 1. 2006 (each a "Payment Date"). The
payments shall be in the amount set forth in Exhibit B hereto (as modified by this Second
Amendment). The parties agree that the Deficiency Payment shall he applied toward the amount
due on August 1. 2003. together with Available Tax Increment as described in clause (iii) of this
Section 3 .5(b).
3. Upon execution of the Assignment the Authority releases .lAC from allliabi[ities of
.lAC under the Contract as amended by the First and Second Amendments thereto.
4. Upon execution of this Second Amendment .lAC must pay to the Authority out-of-
pocket costs of up to $1.500 that are incurred by the Authority and are attributable to or inculTed in
connection with the negotiation and preparation of this Second Amendment.
.
S,IB.23 I I ~l)\ I
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5. The Contract. and the Assessment Agreement referenced in the First Amendment
thereto. remains in full force and effect and is not modi lied except as exprcssly stated herein.
NOW. THEREFORE. in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby coyenal1t and agree with the other as follo\vs:
SJB-2311 ~9v I
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I-IOUSINU AND RFDEVELOPl'vlENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By:
Its Chair
By:
Its Executive Director
ST ATE OF MINNESOTA )
) SS.
COUNTY OF WRIUHT )
The foregoing instrument was acknowledged before me this __ day of
1003. by and Ollie Koropchak. the Chair and Executive Direetor of the
Housing and Redevelopment Authority in and for the City of Monticello. Minnesota. on behalf of
the Authority.
Notary Public
S.IB-23115'h I
MN jl)O.XO
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STATE OF MINNESOTA
)
) SS.
)
COUNTY OF WRIGI-IT
J.A.C. DEVELOPMENT. LLC
By:
Its:
The foregoing instrument was acknowledged before me this _ day of
1003. by .the
Development. LLC a Minnesota limited liability company. on behalfofthe eompany.
SJU-231159v I
MNI90-XO
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of lA.C.
Notary Public
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EXHIBIT C
The"' Assi gnmcnt"'
ASSIGNMENT OF CONTRACT FOR PRIV ATE DEVELOPMENT
THIS ASSIGNMENT is made etlective as of ,2003. by and between lA.C.
DEVELOPMENT. LLC a Minnesota limited liability' company ("'.lAC") and PRODUCTION
STAMPING. lNC., a Minnesota corporation ("'PSI").
RECIT ALS
A. The Housing and Redevelopment Authority for the City of Monticello, Minnesota
("'the Authority") has entered into that certain Contract for Private Redevelopment \vith Allied
Companies. LLC, dated as of June 3. 1998, as amended prior to the effective date hereof (the
"Contracf') regarding the parties' respective responsibilities in connection with the development
of certain property in the City of Monticello defined in the Contract as the "'Developmen~
Property. "
B. Allied Companies. LLC assigned all its rights and obligations under the Contract
to JAC by that certain Assignment of Contract for Private Redevelopment dated as of
September 8, 1998: and
C. The Authority and .lAC have entered into first Amendment to Contract fiJ!'
Private Redevelopment dated July 28. 1999 and a Second amendment to Contract for Private
Redevelopment dated ..__ _, 2003 C-;-;econd Amendmel""!(): and
D. JAC now desires to assign. and PSI desires to assume. all of .lACs right. title.
interest and obligations under the Contract. as amended and as revised by the Second
Amendment. except to the extent provided othenvise in this Assignment.
NOW. THEREFORE, fl1f good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged. lAC and PSI hereby agree as follows:
1. JAC assigns, sells. transfers and conveys to PSI. its successors and assigns, all of
lAC's right. title and interest under the Contract.
2. PSI assumes all obligations of JAC under the Contract as amended by the Second
Amendment. including \,vithout limitation all obligations regarding tax increment deticiencies
under Section 3.5(b) and job and wage covenants under Section 3.7. and all obligations under
that certain Assessment Agreement dated October 19. 1999 entered into in conjunction with the
Contract. and tiled of record October 28, 1999 as Wright County Document No. 693732.
3. Pursuant to the Second Amendment. the Authority is releasing .lAC from all
liabilities of lAC to the Authority or the City. PSI assumes all such liabilities.
SJB.23 1 159\ I
MNI90-XO
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4. This Assignment shall be binding upon and shall inure to the benefit of .lAC. PSI
. and their respective successors and assigns.
IN WrrNESS WHEREOF. the parties hereto have caused this Assignment to be executed
and delivered as of the day and year tirst above written.
lA.C. DEVELOPMENT, LLC
By:
Its:
Subscribed and sworn to before me
this day of . 2003
~- ~~~
Notary Public
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SJB-23 I I ';'1\ I
MN 190-XO
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Subscribed and S\vorn to before me
this day of , 2003
Notary Public
SJIl-23 I 159\ \
i\IN \WI.XU
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PRODUCTION STAMPING, INC.
By:
Its:
.
.
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The undersigned consents to the foregoing Assignment of Contract for Private Redevelopment.
and acknowledges that .lAC as assignor. is released from its obligations under the Contract. as
amended.
HOUSING AND REDEVELOPMENT
AUTHORITY FOR THE CITY OF
MONTICELLO
By:
Its Chair
By:
Its Executive Director
Subscribed and sworn to before me
this ~ day of.., 2003
d
Notary Public
sm<!3 II ~l)\ I
\IN !<)II-XO
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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. 1
(the "Project") in an area (the "Project Area") Ioeated in the City and Tax Increment Financing
District No. 1-23 (the "TIP 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 fmandal 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 LA.C. Development Company, LLC (as assignee of Allied Companies,
LLC) dated June 3, 1998 and a First Amendment thereto dated JuIy 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/100ths 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") payabIe 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 defined in SectiQn 3.
2. Repavrnent 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 soIely 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
SJ8-\6708\
MN \90-80
60
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assigns and pledges to payments on the Note all Available Tax Increment and Developer
pa)'!!!ents paY<l.ble to the Authority under Sections 3.5 and 3_7 of the Contract.
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 Oosing Date").
4. Definition of Terms. The terms capitalized herein have the same meaning as
provided in the Contract unless otherwise defined herein.
IN' WITNESS WHEREOF. this Agreement has been duly executed and delivered by the
proper officers thereunto duly authorized on the day and year flISt written above.
CITY OF MONTICELLO
~ /~
B ~~
Its M or .
~7s~s!:;:IfJL(L.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
:yO~:. 7
Its ~ cu..:,- /
By ()~.:::... \,("'0 ~D~
Its Executive Director
SJB~167081
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UNITED STATE OF AMERlCA
ST ATE 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%
Od.o\,Q.~ \ ~ ,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.
This Note is subject to prepayment in whole or in part at the option of the Authority on any
date.
This Note is issued to aid in financing certain public redevelopment costs of a Project
undertaken by the Authority pursuant to l\.1innesota Statutes, Sections 469.001 through ~69.047, and
is issued pursuant to a Loan Agreement between the Authority and the City dated AUGUST 9
1999, and pursuant to and in full conformity with the Constitution and laws of the State of
SJB-167081
MN 1 90-80
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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 as defined in
the Contract for Private Development between the Authority and I.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 Attaclunent 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 tenns, 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 REDEVELOPN1ENT
AUTHORITY IN AND FOR TIffi CITY OF
MO LLO, MlNNESOT A
.-. ... b (1 f'\
"- )~~ . tj\u S~
Executive Director ' ~
~
518-167081
MN 1 90.80
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ATIACHMENT A
Payment Schedule
Princi
0.00
0.00
20,48739
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 ent
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
1, 200 1
t 1,2001
1,2002
t 1,2002
1,2003
t 1,2003
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
SJB.167081
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City of Monticello, MN
Mldwut Graphics
n_. .I"'''''! It .(.
Estimated payment schedule for remaining principal plus deficiency with estimated revenue of
$35,418.58 per year throughout remaining life of district
7.00% Period
Deficiency nF Inte....t Principal Total Ending Payment
Balance Payment RevenUH Paid: Paid Payment Balance Date
121,442 1a,795 37,004 4,250 32.754 37,004 a8,688 8/112003
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 57.95Q 8/112004
57,950 18.209 2,028 16.181 18.209 41,769 2/112005
41.769 18.209 1,462 16,747 18,209 25,022 8/112005
25,022 18,209 676 17,333 18.209 7,689 2/112006
7,689 18,209 269 7,689 7,958 8/112006
1 S,209 2/112007
18.209 8/11200'7
18.209 2/112008
Ehlers & Associates, Inc.
'"
4/1412003
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H RA Agenda - 6/4103
6.
Continued - Considemtion to hear updates:
A. Redevelopmcnt of a portion of Block 51.
B. Redevelopment of Block 36, Phase II.
C. Rcdevelopment of a portion of Block 37.
D. Redevelopmcnt of Phase I,ll, and II, Block 52
Developers havc becn notified of the HRA mceting of June 4,6:00 p.m. and most
developers were notified of the deadline date to expend eligiblc TI F costs, July 30, 2004.
At this time, I do not know who plans to attend thc HRA meeting.
.
.
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BRA Agenda - 6/4103
7.
Consideration to approve issuance of the Certificate of Completion for Landmark
Square/Carria1!eBouse and to authorize payment of the Parking Improvement
Costs.
A. Reference and background:
Barry Fluth, Mastcr's Fifth Avcnue, Inc., is requesting payment ofthc Parking
Improvemcnt Costs per the Contract for Privatc Redcvelopment datcd September 18,
2001, and amended Fcbruary 6, 2002.
As amended Fchruary 6, 2002: At least 30 days beforc hecoming entitled to reccive any
payment hereunder, the Developcr must submit to the Authority:
(i) a payment request certificate signed by its duly authorizcd representative
stating that: thc Developer has paid Land Acquisition and Demolition Costs in at
least thc amount of $185,000 and has paid Parking Improvement Costs in at least
the amount of$75,OOO, with at least $45,000 of the Parking Improvement Costs
attributablc to costs of making thc First Parking Improvcments and at Icast
$30,000 of the Parking Improvement Costs attributable to costs of making thc
Second Parking Improvements: that the Developer has received a Certificatc of
Completion pursuant to Section 4.4 of this Agreement. Thc payment rcquest
certificate must be accompanied hy evidencc satisfactory to the Authority that the
Land Acquisition and Demolition Costs and thc Parking Improvement Costs havc
bcen incurred and paid by the Developer: and ........
Certificate of Completion
Although the Certificate of Occupancy has heen issucd by the Building Official for
Landmark Square and the Carriage House, items yet to be completed are decorative
picces and siding repair to the Carriage House and repairs to the pavcment clevations
matching gradc and adjusting sanitary sewer inlet in the parking lot. The Developer was
allowed to install a temporary curb along the southerly parking lot boundary becausc of
the anticipated Phase II projcct. The Building Official cstimates these costs at $7,500.
The City did not request any money in cscrow for landscaping or site improvement costs
upon issuance of the Certificate of Occupancy. Pcr the Contract for Private
Rcdevelopmcnt the completion date of the minimum improvcments is December 31,
2002.
HRA Agenda - 6/4/03
.
Request for Payment
Land Acquisition and Demol ition Costs - evidence of payment by Developer - Final
Closing Statement $187,114.50.
Parking Improvement Costs - Upon review of the submitted invoices and description of
work per Subcontract Agreements, the eligible TIF expenditures totaled $57,531.58. I
called Chuck Peterson, Chanhassen Bank, to verify the construction loan included off-site
parking lot costs which it does. The construction loan was $1,422,000 and the lender has
retained $8,000 in escrow for the broker. Land acquisition and $75,000 parking costs
were part of the uses and sources statement and identified as equity. Mr. Fluth did not
agree with my numbers and is looking for better description of electrical and excavation
costs and additional documentation. Building Otlicial Patch assisted me in defining the
work description as it applies to the Amoco site costs versus the ofl-site parking
improvement costs. Also, the parking and traffic plan to provide for at least adequate
unrestricted parking spaces. The HRA has a copy of the recorded Deed of Declaration of
Easements and Maintenance Agreement.
B. Alternative Actions:
.
Decision One
I. A motion to approve issuance of the Cel1ificate of Completion 1'(.11' Landmark
Square and the Carriage Housc subject to $7,500 in escrow fl.)f pending future
installation of permanent curbing/gutter.
2. A motion to deny issuance of the Certificate of Completion for Landmark Square
and the Carriage House due to non-completion of minimum improvements as
outlined.
3. A motion to table any action.
Decision Two
I.
A motion to authorize payment of the Land Acquisition and Demolition Costs and
Parking Improvement Costs in the amount of ~_""
2.
A motion to deny authorization of payment for the Land Acquisition and
Demolition Costs and the Parking Improvement Costs due to the non-issuance of
the Certificate of Completion.
.
2
I-IRA Agenda - 6/4/03
.
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.J.
A motion to table any action.
C. Recommendation:
Decision One
If the minimum improvements are completed and the developers agrees to escrow $7,500
f()r future curb/gutter, the City Administrator and Executive Director recommend
Alternative No.1.
If the minimum improvements are not complete per the final inspection of the building
department, the recommendation is Alternative No.2.
Decision Two
If the Certificate of Completion was approved for issuance, upon receipt of $7,500
escrow dollars, and discussion of the adequate non-restrictive parking, the City
Administrator and Executive Director recommend Alternative No.1. Amount of parking
improvement costs to be determined.
.
If the Cel1ificate of Completion is not issued, the recommendation is Alternative No.2
D. Supporting Data.
Copy letter from bank, final closing statement, Executive Director's account of eligible
costs and Fluth's account of costs as of May 29, 2003, and excerpts from the Contract.
.
'"'
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May 16, 2003
Master's Fifth
Landmark Square
254 Broadway
Monticello, MN 55362
Dear Barry:
With this latest and final draw on the- ~ristluctk,n lban with you, we have set up an
escrow," account to fund the remc;lihiri'g (;~:ir'1Struction costs on the project. The remaining
costs are associated with tenant bulfd..outs. in" progress, and are the only costs left on the
project. We expect that in the.,rieXt3(kS days, we will have the final draw on the
escrow account. .",.:' ',,' _,' .
.
.', ......-. .
We have appreciated the chance to _rie Ydur financing needs and hope that we can
continue to serve you in the future': ":::,:":,', ,:: ~ -
.. ..
uck Peterson
Executive Vice President
CP/sh
.
600 wen 76th Street . Chanh.a$.~~n. MN 55317. (952) 937.BANK . Fax (95Z) 9J7.037Z
www.kleinf;t.c;om/chat'lh:lil.~
G)
--
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~be1
FDIC
1A
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pate. 18-Jun-02 Time. 08:32 NM
DUYER(S) F1N}\l. CI,oSIr-tG STA'\'EMF.N'I'
prepared by
'J'itla Mark
200 M~in ~Lreet Rxchange
121 Weat Main Street
P.O' UoJt 1.50
Waconia, M~ 55387
Buyer(n) ·
R..ller(s) :
L8nder.
property.
Cloning date
EscroW officer.
File Number:
!'taster'n Fifth lI:"enue. Inc.
Paul L. njorklUnd, Kathleen F. Djorklund
- ----- ..-....-_.~~~-~-
-- -- -~------------~--- -------'---
Monticello MS 55362
06/18/2002
Roseanne Malberg
02020045
Proration date:
06/18/2002
~----------,_.,-----.--.----"-,---_..........--...,-_""""------
CREDJ~T
.,'-~-----"._.._--
DEBIT
182,000.00
---~.-....-----
SA-LEa PRICE
DEPOSITS:
Earnest money/deposit from buyer
PRORATIONS.
County Taxen (Carries over)
from 01/01/02 to 07/01/02 @ $
1,489.00
8.15890 per day
TITLE CIU\RI1ES:
Owner'S til:l- policy
Liability amount (OTP) $182,000.00
Abstract or title search
O&E REPORTS
591.!!i0
24.00
600.00
RECORD1NG FEES/TRANSFER CHARGES:
Rccording foe Deed amount $20,00
Recording Service Fee
20.00
15.00
MISCEI.LANEOUS CHARGES.
Survey
F.SCROW FEE
2,300.00
75.00
SUBTOTAl.S.
BALANCE DUE FROM BUYER:
TOTALS:
187,114.50
187,114.50
_.~,.......--."~ ,--
500.00
500,00.
186,614.50
187,114 , 50
Master' ~.. Fifth AVen~jJ :Inc.
'~7 ~
.4,,9../ .1~~
BY:
'r
---- '
--)
Pace:
'(
.
AMOCO TIF CHECK LIST AND ELIGIBLE EXPENDITURES
May 19,2003
Modiiied May 28, 2003
Completion date of minimum improvements December 31. 2002,
Complete landscape work
Complete work on carriage house and repair of parking elevations
Complete parking lot curbing if Phase II project not commencing.
Certificate of Completion has not been issued
ELlGII3LE EXPENDITURES
Payment request certificate stating developer has paid for land acquisition and demolition costs
Acquisition and demo Costs $185,000 Evidence $187,114,50 Lots 13,14,& 15,
Block 36.
Pay-as-you-go TIF Assistance Commence August 1, 2003 and terminate February 1. 2023.
AND has paid for Parking Improvement Costs
At least $45,000 for 155-010-036100 (Koppy), 155-010-036110 (Hamond) and 155-010-06111
(Paulson)
At least $30,000 for 155-0 I 0-036080 (Hamond) and 155-010-036090 (City to Fluth to Hamond)
. Total at least $75,000 for parking improvement costs,
Evidence ofContraet Bituminous $23.994,00 X 66% = $15,836,04
" " Curb & Gutter $ 8.650.00 X 66% = $ 5,709,00
Evidence oflnvoice Site Lighting $ 9,000.00 X 100% = $ 9,000.00
Evidence of Invoice Architect Fees $ 6,266,00 X 66% = $ 4,135,56
Evidence of Contract Excavation $14,926.00 X 331)10 = $ 4,925.98
Evidence of Contract Landscape (Top Soil) $ 2,000,00 X 33%''''' $ 660,00
Evidence of Contract Sidewalk along
existing businesses $12,750,00 X 50%'= $ 6,375.00
Evidence of Contract Utilities (storm sewer
& hydrants
TOTAL
$33,000,00 X 33%= $10,890.00
$57,531.58.
Evidence of payment (Letter from the Chanhassen Bank dated May 16, 2003),
.
113
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occurring on those parcels 0[" pwpert\ within the City having parcel identification numbers
of 155-0 10-036()XO and 155-0 I 0-0360L)() (the "Sccoml Parking. lmpn)\'cments") (the First
Parking iIrq:)I"()\ements and the Second Parking Improvements are referred to colkcti\cly
herein as the "Parking ImprovenH:~nts"). .\ny costs in excess 0[" these an1l1unts shall be the
responsibility or the Developer. The ,\uthority shall have no obligation to the Developer or
to any third party \"ith respect to any defects in tbe construction of the IVlinimum
Improvements.
2. Section 3 .5( b) is amended to read as follows:
(h) At least 30 days bef(Jre becoming entitled to receive any payment hereunder.
the Developer must submit to the Authority:
.
(i) a payment request certificate signed by its duly authorized
representative stating that: the Developer has paid LlI1d :\.cquisition and Demolition
Costs in at least the amount 0[" S I X5.000 and has paid Parking Improvement Custs in
at least tbe amount 0[" :575.000. with at least $..J.5.000 of the Parking Impro\'ement
Costs attributable to costs oj' making the First Parking Improvements and at \cast
$30.000 of the Parking Improvement Costs attributable to costs of making th..:
Second Parking Impro\l.:ments: that no Event of Default has occurred and is
continuing under this .'\greement: and that the Developer has received a C..:rtiticatc
of CUlnpktion pursuant to S..:ction -l-...J. 01" this Agreement. The payment request
certilicatc must be accompanied by evidence satist~lCtory to the Authority that the
Land Acquisition and Demolition Costs and the Parking Improvement Costs ha\e
been incurred and paid by the Developer: and
(ii) a No i\ction Letter. a Closure Letter. other similar representation.l1l"
some com hi nation oj' the foregoi ng (as appropriate) from the IVI innesota Poll ution
Control Agency that in the sole judgment of the Authority oilers adequate assurance
that all pollution and contamination on the Development Property has been
appropriately remediated. or documentation ['rom a reputable engineer that in the
sole judgment uf the Authority offers adequate assistance that all pollution and
contamination on the Development Property has been appropriately remcdiated.
such engineering report. if pro\ided. to be a(cOl11panied by a reliance letter from the
engi neer in bvor 0 f the, \ uthori ty.
3. Section 3.8 is amended to read as follows:
Section 3.8. Cuntin!!eI1(ie~. b;:cept as expressly set forth herein to the contrary:
(a)
hereunder:
As conditions precedent to the obligation of the De\e1oper to perform
(i) The De\eloper must recei\e a No Action Letter. a Closure Ldter.
other sim ilar representat ion. ur some combination 01" the t'oregoing (as appropriate)
from the IvIinnesota Pollution Control .\gelKY that in the soIt: judgment 01" the
.
I ).J(J-2111~C)2\;
\IN 1')11-<1'
')
~v
.
Authority otTers adequate C1ssurance that all pollution and contamination on the
Development Property has becn appropriately remediated:
(ii) The De\elopermust he satislied in its reasonablejudgment that it has
obtained sufficient financing to complete construction of the tvlinimum
Improvements: and
(Ill) fhe Developer mllst have received design and site J.pproval of the
tvlinimum Improvements from all entities \\'hose approval is required by state or
local law. ordinance. or policy.
(b)
hereunder:
As conditions precedcnt to the obligation of the !\uthority to perform
(i) The Developer must satisfy the conditions precedent set forth m
Section 3.X(a) by no later than [vlay 1.2002: and
.
(ii) The Dcveloper must. by no later than lvlay 1. 2002. obtain approval
from the i\uthorit:v and the City oj' a parking and tramc plan satisbctnry in the sole
respective judg.ment ur' the ,\uthority and the City. such plan to prO\ide f()r at least
adcquate unrestricted narking spaccs on the block on \\hich the Development
Property is located (including thosc parcels with property identilication numbers uf
155-0 I 0-0361 00. \ 55-0 10-036110. 155-0 1 0~036111. 155-0 I 0-0360~0 and 155-01 ()-
036(90) and fully executed easements and other agreements allo\\ing for the
cunstruction. operation. and maintenance or the parking spaces and egresses ~lI1d
ingresses to the block on \vhich the Development Property is located.
4.
Sectiun 4.3 is amended to read as l'ollo\Vs:
Sectil)l1 -1-.3, CO!11ll1enCel)1el}Li!nd .S:<ul11pletion of Construction. Subject to
Unavoidable Delays. the Developer shall complete demolition of the e:\isting gas station on
the Development Property by lvlay I. 2002. Subject to Unavoidable Delays. the Developer
shall complete the construction of r'vlinimul11 Improvemcnts by December 31. 2002. All
\vork \Vi th respect to the 1'vl i ni m um Improvcmcnts to be constructed or provided by the
Developer on thc Development Property shall be in conformity with the Construction Plans
as submitted by the Developer and apprO\ed by the :\uthority.
.
The Developer agrees for itself. its successors and assigns. and evcry successor in
interest to the Dew lopment Property. ,)r C1ny part thereo L that the Developer. and such
successors and assigns. shall promptly begin and diligently prosecute to completion the
development of the Dewlopment ProperlY through the construction of the Minimum
Improvements thereon. and that such construction shall in any event be commenced and
completed \\ithinthe period specified in this S~ction 4.3 of this Agre~mel1t. The obligation
to construct the :YIinimum Improvements in acconbnce \\ith this Section touches and
concerns the land. and shall run \\ith the property and be binding upon all successors and
assIgns to the Dc\Clopmcnt Properl;. Alkr the date of this .'\greement and until
I)J( 1.20,,(12\.;
\IN \(10.(1'
~
_J
.
.
.
s.
Consideration to authorize payment of HRA hills.
Recommendation is to authorize payment of monthly bi lis.
For your information:
TIF Legislation March 3 I, 2003
TlF Legislation April 30,2003
TOTAL SO FAR
$2,076.25
$2,726.25
$4,802.50
HRA Agenda - 6/4/03
"
i
,
.
l'.'....
I
"'~
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
,
May 10, 2003
Invoice # 20822
MC100-01
General
L\ l. S "J- ? . ";) \ q '\ Hours Amount
S~S~ ?I~.
4/3/2003 MTR Discussion block 51 0.75 93.75
4/14/2003 MTR Run for Midwest graphics ? \ '?J . L\ V S ")..;:.. . ., \ q 9 1.00 125.00
Professional Services
..- -'~'- - ~~-----~-
1.75 $218.75
Total Due This Month:
Status of Account:
SJ,ll@~---~~Qq~_.-.- 60 Days
$218.75 $0.00 $0.00
90 Da~__~O+ Days____.--.lotal
$0.00 $0.00 $218.75 I
.
: \
O\\\~
"....-_."._--'~...............-,.~..
,.._..._.._~-_._-_.._..-
~
~."",.,."~,,,,,.,...n"_'~
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
'" -~.. l~ ~~.Jb; II '\,rl:r'l';(::;\
') l'-'''-~-''-'--''-'-:I i \!
" \ "'.! .: 11.\
I ~ .' I
Lt: M A'( I) 2n03 (': ,J J
L __.J r':/
_._______.._.-.J
CITY OF Ivl0NTICELLO
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
f';'il hQ7 ~'inn
l
I
..~.......M...... ....,..NT..I.CELLO
r>:...,., ,....',. BERo'i'
~':I""" :J
"0MMERCE ,
Monticello
Chamber of Commerce
205 Pine Street, P.O. Box 192, Monticello, MN 55362
Phone (763) 295-2700: Fax (763) 295-2705
Website: www.monticellochamber.com
E-mail: info@monticellochamber.com
\o\.. ~tto'S@)t. ~St.eO
<;-\'1 - o~
May 15,2003
City of Monticello
Attn; Ollie Koropchak
505 Walnut Street, Suite 1
Monticello MN 55362
Invoice #3340
. Amount Due: $2080.00 32 golfers for Chamber Golf Outing
T\hanks, i(\ .
. ~l.:"".-'~,j,"":"-'"\. \ \l\.(),),"_:J--"
Susie & Marie
Monticello Chamber
.
.... .'.~ M......'i.........~:;........TlI... CELLO
Cttt\J,vIBER of
COMMERCE
~
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 21, 2003
Statement No. 56510
Through April 30,2003
MN190-00080 Midwest Graphics Amendment
MN190-00097 TIF 1-29
MN190-00101 General HRA Matters
MN190-00107 2003 TIF Legislation
.
1,068.82
140.00
140.00
2,726.25
Total Current Billing:
4,075.07
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no of it has been paid.
Signature of Claimant
o ~~[E~\'U[Erm
MAY 2 7 2003 ~
CITY OF MONTICELLO
.
OK TO PAY? \t-~'c.\&.. /O\\,!.
Code:
I "t' ;
nhJSi ---
~
-
~~
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
May 21, 2003
Invoice # 56510
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
?-~
.......~ ,..
?\:'. L\t..S:;l5.;,0 y"
MN190-00080 Midwest Graphics Amendment
Through April 30, 2003
For All Legal Services As Follows: Hours Amount
4/4/03 SJB Phone call with O. Koropchak re: Status of contract, 0.75 131.25
assignment; review file.
4/7/03 SJB Phone call with O. Koropchak re: assignment, TIF Status 0.50 87.50
4/8103 SJB Phone call with O. Koropchak re: TIF Status; phone with 0.75 131.25
A. Dickinson
. 4/9/03 SJB Phone call with A. Dickinson and Production Stamping 0.60 105.00
counsel; phone with O. Koropchak re: terms
4/10103 SJB Phone call with O. Koropchak, A. Dickinson; draft letter 1.50 262.50
re: same.
4/11/03 SJB Review and revise letter to Van Heel; phone call with A. 1.00 175.00
Dickinson; email to O. Koropchak
4/16/03 SJ8 Phone call with A. Dickinsen 0.50 87.50
4/16/03 EMT Discussion of documents needed, timeline, parties 0.30 42.00
involved
4/29/03 SJB Review assignment 0.25 43.75
Total Services: $ 1,065.75
For All Disbursements As Follows:
Total Disbursements:
$
1.20
1.50
0.37
3.07
Photocopies
Fax
Postage
.
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
April 30, 2003
Total Services and Disbursements: $
.
.
1,068.82
.
.
.
Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
. ~O L\ a
~ ~";'.
City of Monticello
April 30, 2003
~\\o
Q..\04
MN190-00097 TIF~ \.. ?.?-
Through April 30, 2003
For All Legal Services As Follows:
4/29/03 EMT Telephone messages from and to J. Wazuwetz with Hans
Hagen Homes, with Q. Koropchak regarding signinng of
certificate of completion prior to issuance of certificate of
occupancy, review contract for private development and
related file documents.
Hours
1.00
Total Services:
$
Total Services and Disbursements: $
Amount
140.00
140.00
140.00
.
.
.
Page: 4
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
'dY3-. q~~(I(. '3 0 y'O
April 30, 2003
MN190-00101
General HRA Matters
Through April 30, 2003
For All Legal Services As Follows:
4/1/03 EMT Message from O. Koropchack, research response on
sharing contract for private redevelopment, and email to O.
Koropchack.
4/29/03 EMT Call from O. Koropcheck regarding downtown TIF district
project (gas station) questions, discuss with S. Bubul,
return phone call.
Total Services:
Total Services and Disbursements: $
Hours
0.60
0.40
$
Amount
84.00
56.00
140.00
140.00
.
Page: 5
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
Q\?:>.
\..\ l.J S ~.'S 0 1.1 'l)
City of Monticello
April 30, 2003
MN190.00107 2003 TIF Legislation
Through April 30, 2003
For All Legal Services As Follows: Hours Amount
4/1/03 JJC Conference with client; prepare for hearing in Senate; work 2.50 412.50
on lobbying Senate Tax Committee members; conference
with Bruce Anderson.
4/2/03 JJC Work on lobbying TIF provision in Senate; conferences 3.00 495.00
with legislative delegation; attend Senate Tax hearing on
Bill with client; conferences with Pat Sawatzke.
4/3/03 SJB Phone call with O. Koropchak, J Choi re: strategy 0.70 122.50
4/3/03 JJC Work on conferences with legislative delegation; regarding 1.00 165.00
. local objections.
4/4/03 SJB Phone call with O. Koropchak re: status of bill; attempt to 0.50 87.50
reach ligislators.
4/4/03 JJC Conferences with legislative delegation; conference with 1.50 247.50
Senator Pogemiller; review house status; conference with
House Tax staff.
4/7/03 JJC Conferences with legislative delgation; work on lobbying 1.25 206.25
Senate members of tax Committee.
4/9/03 JJC Work on lobbying TIF provision for client. 2.00 330.00
4/14/03 JJC Work on lobbying TIF bill; conferences with legislative 2.25 371.25
delegation.
4/16/03 JJC Telephone conference with client regarding lobbying 0.25 41.25
legislators.
4/18/03 JJC Work on organizing lobbying tasks and file. 0.25 41.25
4/23/03 JJC Conferences with Rep. Mark Olson and Bruce Anderson; 1.00 165.00
telephone conferences with Mayor Bruce Thielen.
4/28/03 JJC Conference with senator Mark Ourada. 0.25 41.25
Total Services: $ 2,726.25
.
.
Page: 6
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
April 30. 2003
Total Services and Disbursements: $
.
.
2,726.25
.~-~- .- .-. ...............'
~.. --....--------
-- ~-_...._..-
""--_.. .
.
Date: 18-Jun-02 Time: 08:32 AM
BUYER (5) F'!NAL CLOSING STA'rEMENT
prepared by
Title Mark
200 Main Street E~change
121 West Main Street
P.O. BoJt 150
Waconia, MN 55387
Buyer (a) :
Seller(s) S
Lender:
property:
Closing date :
EscroW Officer:
File Number:
Master'S Fifth Avenue, Inc.
Paul L. Bjorklund, Kathleen F. Bjorklund
Monticello ~ 55362
06/18/2002
Roseanne Malberg
02020045
proration date:
06/18/2002
DEBIT
CREDIT
~82,000.OO
SALES PRICE
DEPOSITS:
Earnest money/deposit from buyer
500.00
PRORATIONS:
County Taxes (Carries over)
from 01/01/02 to 07/01/02 @ $
1,489.00
8.15890 per day
TI'tLE CHARGES:
OWner's title poliCY
Liability amount (OTP) $182,000.00
Abstract or title search
O&E REPORTS
591.50
24.00
600.00
RECORDING FEES/~RANSFER CHARGES:
Recording fog Deed amount $20.00
Recording Service Fee
20.00
15.00
MISCELLANEOUS CHARGES I
Survey
ESCROW FEE
2,300.00
15.00
187,114.50
500.00.
186,614.50
187,114.50
SUBTOTALS:
BALANCE DUE FROM BUYER:
TOTALS:
187,114.50
BY:
.
.
.
HRA Agcnd;:l - 6/4/03
9.
Executive Director's Report.
a) TI F Legislation Bill _ The Monticello Special Legislation Bill was not introduced or
sponsored in the House Tax Committee, therc1'ore, the Monticello Bill did not survive the
Conference Committee and was taken out of the S. F. No. 1505 Miscellaneous Tax Bill.
On May 19, Lobbyist Choi suggested we make one last try and request to be added to a
Second Tax Bill being proposed. See attached May 19 letter. (May 22, 20(3) 1 had not
heard from John Choi since preparing and distributing the letter. 1 had talked with Rep
Anderson via telephone on May 19 and he said he'd talk to the House Chair but would
not speak in favor or against the Bill. Rep. Mark Olson had not responded to my voice
mail. Certainly, Senator Ourada deserves a "thank you" for introducing the Bill to the
Senate Tax Committee. The Monticello and Buffalo Chambers are hosting a Legislative
Wrap-Up on Thursday, May 29, at the Vintage Grill, 11 :30 to 1 :00. Call the Chamber for
reservations. Senator Ourada and Rep. Anderson are scheduled to be there if not? Olson,
MN Chamber of Commerce Director or Lobbyist will fill-in.
(May 23, 2003) Rep Olson calls Koropchak and indicates he would do his best to
introduce a revised bill to the Bouse Chair if the bill excluded Block 52. With an
agreement from BRA Chair Andrews and Mayor Thielen, the llRA Attorney drafted a
revised bill which was submitted to Olson, Ourada, and Anderson on Friday, May 23 at
4: 15 p.m. On Tuesday, May 27, 5:20 p.m., Lobbyist Choi informed me that Rep Olson
did his best and was able to introduce the revised bill to House Chair Abrams; however,
Abrams felt he could not forward the bill without the support/endorsement of Rep
Anderson. Anderson did not support the revised bill and would only support a bill which
guaranteed no condemnation or eminent domain. The bill did not get passed in the I-louse
Committee and therefore does not become law. A special thanks to Rep Olson for his
dIorts. Please call me if you have questions. It is the BRA's position to encourage any
proposed TIF District 1-22 projects from developers to get building and site plan
approvals so TIl" eligible costs are expended by the July 30,2004 date. This our dead-
line date. In other words, the HRA will need to reimburse the Developers their up-front
development costs by that date. Please call me 271-3208 if you have other questions.
b) An IDC, liRA , and city staff Northwest Corridor Task Force is researching industrial
sites consistent with the Monticello Land Use Plan. The goal is to talk with property
owners relative to their interest and future plans. The IDC and lIRA would like to see the
City secure a purchase option on industrial land for future development (15-20 years out).
The City and HRA have a combined reserve fund of $765,000 for such purpose. Dan
Frie will update the HRA relative to the May 20 meeting.
c) Copy of the EDA Goals/Projects for 2003 as outlined on April 22, 2003.
d) Nice article in the Mpls Tribune noting the 2 hole-in-ones and car give-a-ways at the
Chamber Golf Outing. The Monticello Marketing Committee invited and gave 32 gratis
tickets to commercial/industrial developers and builders. Each group of foursome
included either a council, staff, or city consultant for the purpose of promoting
Monticello. Chamber Invoice _ $2,080. Since John Frie, nephew of Dan Frie, won the
1
HRA Agenda - 6/4/03
.
.
Buick, do you think Dan owes the HRA?
e) Chambcr Board tabled for further discussion whether to split the advertising cost in
Discover Monticello (Hartwig) and Community Guide Crimes) for 2004. Hartwig was
going to proceed with taking some photos of the Production Stamping building and I'll
talk to Wurm about willingness to write a testimony. Marketing Committee waiting
decision. Community Guide ad with UMC would remain the same. 2004 cost for
Discover Monticello full-page $650 and Monticello Times full-page $1,285.
e) Working with Les Wurm of Production Stamping for an open house/welcome
Monticello event. Perhaps mid June. More later.
t) UMC move-in date looks to be August with some delays in construction.
g) Request from Twin City Die Castings to pre-pay their EDA-GMEF Loan of $1 00,000
at 6% interest. Can get lender financing at 4% or less. liRA and Council will need to
visit non-compliance of job and wage requirements. June 2003 liRA Agenda Item 4A.
h) Standard Iron and the Wright County have reached an agreement but not executed the
agrcement to reduce the market value on Standard Iron property. The market value is
being reduced to $1,637,500 for payable 2002, 2003, and 2004. Thc County Assessor is
requesting the County Auditor's Office to IT-run the amount of tax increment generated
for those years. Since this TIF District was the pay-as-you-go method and one year
remains, Standard Iron may need to reimburse the HRA. More later.
i) Broadway Project is scheduled for completion mid-June. An adult volunteer group
called Community Exceptionelle' will plant, weed, and water f10wers in the median
between I,ocust and Walnut. Marcy Malone, a master gardener, volunteered her time to
design a plan and estimated the costs fC)f f1owers. It is my understanding the Monticello
Community Partners is willing to make a one-time donation of $250.00. Planting will
take place Monday, June 2, time to be announced Is anyone interested? More later.
j) Custom Canopy - They finally picked up their last pay-as-you-go check and paid the
City their LOA Penalty amount. The HRA check was less because of class rate
reductions. This for TIF District No. 1-15.
k) Drake Court - Their $53,000 check fc)r completion of the second four homes is in file
and ready to be disbursed upon submission of evidence of money in escrow for
landscaping and site improvements in the amount of $2&,000+ each for two homes to
close May 30. The next closings are scheduled for June 30 and haven't heard if last home
is sold.
1) Hans Hagen Homes Project - Haven't heard from .Jennifer relative to Certificate of
Completion request for non completed unit after I informed Kennedy & Graven to refer
the calls to me.
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May 19,2003
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RE:
MON'fICELLO SPECIAL LEGISLATION BILL - '1'0 extend the 5-year rule from June
30, 1997, to June 30, 2007, for TIF District No. 1-22.
TO: Senator Mark Ourada
Representative Bruce Anderson
Representative Mark Olson
FROM: Ollie Koropchak, HRA Executive Director (763-271-3208).
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The Monticello Special Legislation Bill is not a part of Tax Bill 1505. Please talk to the House
and Senate Conference Chair to add the Monticello Bill to the Second Tax Bill.
The Monticello Special Legislation Bill is asking to extend the 5-year rule tar TIF District No. 1-
22. The Bill is not requesting the State IIouse and Senate to approve or disapprove any
proposed redevelopment projects within TIF District No. 1-22. Those are local decisions to be
made by the Monticello Design Advisory Team, Planning Commission, and City Council. At
this point. preliminary redevelopment sketches or ideas Jar a portion of Block 52, Block 51,
Block 36, and Block 37 have been presented to the Housing and Redevelopment Authority
(HRA) requesting TIF assistance. No TIF assistance or level of assistance has been approved by
the HRA No building or site plans have been submitte~ to the Design Advisory Team,
Planning Commission, or City Council for consideration to approve or disapprove. Again, the
City is only requesting time to work on redevelopment projects, giving the local commissions
and council the opportunity to review and approve or disapprove building and site plans. The
bill is not asking the State House and Senator to approve or disapprove local redevelopment
projects nor does the HRA or Council believe that is the role of the State House or Senate.
Secondly, if the Monticello Special Legislation Bill is not passed about $1.2 million of the $2.2
million bond sold will be left un-spent. You may ask: Why did the Monticello lIRA not spend
the money in the first 5 years? City of Monticello is a small town located outside the seven-
county, metro area (2002 population - 8,839). I n the first five-years of the TI F District, the City
entertained developers to entice redevelopment projects but were unsuccessful. Just recently,
developers have shown an interest in retail and office space redevelopment projects. In other
words, demand for retai I and office space is being driven by the increase in population and the
projected increase in population.
c: Mayor Bruce "rhielen
I IRA Chair Steve Andrews
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A bill/in' un oct
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reluting to the City oj'i\Jonticel!o: uulhorizing extension oj'tinlefhr certain
uctivities in (( lux increlnenljinancingdistrict
BE IT ENACTr-:D BY THE LEGISLATURE OF TI IE STATE OF MINNESOTA:
Section 1. [CITY OF MONTIC~ELLO~ EXTENS~ON qF T~.ME FOR ACTIYITY
INA-IAX INCREMENT FINANCING DISTRICLL. The requiremcnts of Minnesota
Statutcs. section 469.1763, subdivision 3, that activities must be undertaken within a five-
ycar pcriod from the date of certification of a tax increment financing district, must bc
considered to be met tar the city of Monticello tax incrcment financing district no. 1-22 if
~with rcspect to Block 52 within the district, the activities arc undertaken by July 30,
2004, and (b) with respect to activities undertaken .at any location other than Block 52 the
activities are undertaken within ten years from the date of certification of the district.
Activities in allY right of way. including streets adjacent to Block 52, are considered
activities undertaken under clause (h) of this Section.
Section 2. [EFFECTIVE DATE]. Section 1 is effective upon compliance by the
governing body of the city of Monticello with the requirements of Minnesota Statutes,
section 645.021.
SJIl-22X<B'!v I
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CUSTOM CANOPY,INC.
219 DUNDAS ROAD PH. 763-295-0060
MONTICELLO, MN 55362
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