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HRA Agenda 07-02-2003 . 1. 2. " -, . 4. 5. . 6. . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, July 2, 2003 - 6:00 p.m. 505 Walnut Street - Bridge Room Comm issioners: 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. Guest: Doug I-larmon, Vice President and CFO, Twin City Die Castings Call to Order. Consideration to approve the June 4,2003 HRA minutes. Consideration of adding or removing items from the agenda. Consent Agenda. Public Hearing - Consideration to approve extending the Compliance Date within the Contract for Private Development by and between the I-IRA, City, and Twin City Die Castings. Continued - Consideration to hear updates: A. Phase I, II, and III design concept for a portion of Block 52. B. Redevelopment of a portion of Block 51. C. Redevelopnlent of Block 36, Phase II. D. Redevelopment of a portion of Block 37 (request for TI F assistance). 7. Consideration to authorize payment of HRA bills. 8. Consideration of Executive Director's Report. 9. Committee Reports. 10. Other Business. 11. Adjournment. . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, .June 4, 2003 - 6:()0 p.m. 505 \Valnut Street - Bridge Room C omm issioners: Chair Steve Andrews, Vice Chair Bill Fair, Darrin Lahr. Dan Frie, and Brad Barger. Council Liaison: Roger Carlson. StatT: Rick Wolfsteller. Ollie Koropchak. and Lori Kraemer. GUESTS: Chuck Van I IceL .lAC Development and Mike Heimer Barry Fluth. Master's Fifth Avenue, Inc. Fred Kalter. Pineapple Management Company I. Call to Order. Chair Andrevvs called the meeting to order at 6:05 pm and declared a quorum. 7 Consideration to approve the Mav 7. 2003 liRA minutes. A MOTION WAS MADl:: BY DARRIN LAHR TO APPROVE THE MINUTES OF THE MA Y 7.2003 MEETING. DAN FRIE SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSLY. " j. Consideration of adding or rcmovin!! items from the agenda. Koropchak asked the HRA if they would prefer to change the July 2nd meeting to anothcr date due to the 4th of July holiday. It vvas the consensus to keep the meeting on July 2. 2003. 4. Consent A!!enda. A Consideration to call for a public hearinl!. date to extend the Compliance Date within the Contract for Private Development between the HRA. Citv. and TCOC. Recommendation: Call for a public hearing date of July 2. 2003. to consider extending the Compliance Date within the Contract for Private Development between the BRA. City, and TCOC. with all Authority costs associated with the extension and public hearing notice at the expense of the Developer. B. Consideration to amend the construction completion clate within the Contract for Private Develol1ment between the I-IRA. Citv. and TelTance & Marv Tomann Familv Limited Partnership. Recommendation: Approve amending the construction completion date from July 1. 2003, to September 1. 2003. within the Contract for Private Development between the lIRA. City and Terrance & Mary Tomann Falnily Limited Partnership. . . . IIR;\ i\lil1ules - 06/04/03 A MOTION WAS MADE BY BILL FAIR TO APPROVE THE CONSFNT AGENDA AS WRITTEN. DAN FRIE SLTONDED THE M(}rION. rvlOTION CARRIED UNANIIvIOUSL Y. 5. Continued - Consideration to approve the Second l\mendment to Contract for Private Redevelopment between the HRA and .lAC Development LLC. the Assiunment of Contract f()\' Private Development between .lAC Development LLC and Production StampinQ. Inc.. and the Amendment to the Loan Agrcement between the liRA and the Citv. Ollic Koropchak. Executive Director. provided a brief summary regarding TIF Dist. 1 ~23. stating initially this \Vas pay as you go. but later assigned and amended. and changed to up-front assistance. The initial contract has been amended and assigned several times. Koropchak also advised that Chuck Van Heel. representing .lAC Developmcnt LLC had agreed to and executed the terms and conditions previously negotiated. IH)\vever ivIr. Van lIeel had requested to address the liRA prior to any action taken. Koropchak introduced Mr. Van Heel and Mike Heimer. real estate broker. Chuck Van lice! addressed the HRA advising of questions that he had regardingTIF and ho\V it \vorks. as \vell as \vhat are cri leria fl.)\' qual i t~i ng fl.)!" TI F assistancl'. 1112 further stated that he feels the property' has decreased in value. Van l-Iee! also noted they haw 13 acres on E. 7'h Strel't which they were thinking of pulling off the markl't and putting the project on hold. due to conn icts on their part and an error vvhich had cost them additional money' . Koropchak clarified that the tax deficiencies were crcated by property tax reforms enacted in 2001. which reduced the tax increment collected from comlnercial property throughout Minnesota. further stating it is the same for all properties who receive TIF assistance. She advised that this is done at the state level. not local. Koropchak clarified also that the HRA would he collecting on the 199R tax rate. Van Heel felt that the city would be able to recover those monies at some point. He also stated that it had cost them $25.000 per lnonth to hold their building empty and were anxious to sell. Van Heel felt that they \\ere competing with the city in regard to benefits ofTIF versus building new. There was discussion by the HRA that in 3 other cases of tax deficiency. the I IRA had held to their agreement. Koropchak advised that their policy has been to collect the deficiency at the time of sale. Van Heel felt that the city is still collecting the taxes and Bill Fair advised that they are collecting taxes on money that the city has already expended. He also advised of the f~lCt that this money then goes to the school district. hospital district. etc.. and not for city taxes. Van Heel advised that the value of the building went down. however Rick Wolf'ileller didn't think TIF \vould have changed the value. They also discussed the different expenditures forTIF. Koropchak advised Van Heel that hisl3 acre parcel could qualit~ as manubcturing and \\ould not as reckvelopment. She further explained the "but for" :2 . . . II R;\ !'vI i illites - 06/04/03 concept as well. Fair felt thc liRA should not de\iate from their policy. A MOTION WAS MADE BY BILL FAIR TO APPROVE THE SECOND AMENDfVIENT TO CONTRACT FOR PRIVATE REDEVEL(WMENT BETWEEN TilE HRA AND .lAC DEVELOPlvIENT 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 CITY AND l-IRA. BRAD BARGER SECONDED THE MeJrION. M<YTION CARRIED UNANIMOUSLY. 6. Continued - Consideration to hear updates: A. Phase L II. and 1II design concept t()r a portion of Block 52. Fred Kattcr \vas present and updated the lIRA on their project. stating that they nO\v have negotiations with 2 scperate co-developers. bnth arc viable. but thcy are not finished putting a deal together and it may take another 2 to 3 weeks of negotiations. lie added that he has a strong preference toward one. lie stated one developer wuuld hring in a tenant immediately. the nther may not. but has experience within the area. Katter assured the I-IRA that they \vould have something together soon and he on target with their dates. Lahr asked if there were any parking use di ffcrences with eithcr of the developers and Katter stated there vvere not and they arc still looking at 3.5 to ..j. cars per thousand sq uare feet for retail. He also noted they have met with t\\O of the key property owners. but wants to \vait until they have the co-developer on board. Katter thanked the I-lRA t()r their patience. H. Redevelopll1ent of a portion of Block 51. Kornpchak advised that she had called alll)f the dcyelopers and invited them to the meeting. She did not hear anything from Pat Sawatzke. C. Redevelopment of Block 36. Phase II. Barry F1uth was present and advised the (IRA that they have a purchase agreement with one of the properties and are still working \vith the other two owners. He stated things are going well and ifsjust a matter ot"time. Koropchak advised that the I-IRA has to expend the dollars. therefore he has to incur the expenses so that the HRA can pay hack those eligible costs. Fluth didn't fecI that \vmlld be a problem as it is lor purchasing of propcrty and demolition. He further stated they are still working on defining the product f()r that site. \vhich \vill be "101' sale-- properties. D. Redevelopment ofa portion of Block 37 (request f()r TIF assistance). Koropchak advised that she had left a message for Tom Holthaus hut had not heard back. 3 . . . II R,\ 1\1 illUtcS - 06/04i03 7. Consideration to apIJrove issuance of the Certi ticate ur ComlJletion for Landmark Square/Carria!.!.e !-louse and to authorize pavment of the Parkinl! Improvement Costs. Koropchak gave a brief summary of the request t()r payment and Barry Fluth advised that he had additional documentation of the costs and provided this information to the HRA. He further advised that these costs were for the additional parking area behind the other 5 lots. He advised of the original contract being amended to include 5 lots versus 3. and the parking cost is tar only the 5 lots. Koropchak advised that hy the redevelopment contract. the developer needs to get the certiticate of completion hefore the payment of the up-front parking improvement costs. She advised that the landscaping is pretty much complete. but there are some decorative items. repairs to parking elevations. and siding repairs that arc not yet complete. Therefore. the question is if the certificate of completion should he issued. She also advised that the southerly sick of the parking lot has a temporary curh \vhich the city allowed, assuming rluth would proceed with Phase II. She further advised there is no money in escrow to cOl11plete Phase II and that Building Ofticial Fred Patch estimated the cost to complete those itcms to be appro'\. $7,500. Fluth advised he has a bituminous curb for no\v. and whcn Phase II moves t()I'\vard they would remove it. Koropchak the l-IRA pay Fluth the money for the parking improvement costs. but to also hold some money in cscrow for Phase II. Bill Fair suggested they authorize payment \vith contingencies so that the project dues not get held up. It vvas further stated that the eSC1'(m could be rc1urned when a contract is signed for Phase II. It \vas also noted that there is some ponding in the parking lot occurring when there is a heavy rain, hut that is being corrected ne'\t week. Decision 1: A MOTION WAS MADE BY DARRIN LAI-IR TO APPROVE ISSUANCE OF THE CERTIFICATE OF COMPLETION FOR LANDMARK SQUARE AND THE CARRIAGE HOUSE, SUBJECT TO THE DEVELOPER PROVIDING $7.500 IN ESCROW FOR_ PENDINCr FUTURE INSTALLA.TION OF PER~IANENT CURI3ING/GUTTER. AND COMPLETION OF THE FOLLOWING: I. DECORATIVE PIECLS AND SIDING REPAIR TO THE CARRIAGE IIOUSE. I REPAIRS TO THE PA VLMENT ELEV ATIONS MATCHING (iRADE. DAN FRlE SECONDED THE MOTION. ivlOTION CARRIED UNANIIvlOUSLY. Decision 2: A MOTION WAS MADE BY BRAD BARGER TO AUTI-IORIZE P:\ Yi'vlENT OF Tl-IE LAND ACQUISITION AND DEfVIOLlTION COSTS AND PARKING IrvlPROVEMFNT COSTS IN TI-II': Al'vIOl iNT OF AT LEAST $57,000. AND liP TO 4 . . . HRA Minutes - OhlO-1-/03 $75.000 SUBJECT TO TIlE ADDITIONAL EVIDENCE SUBiVlITTED BY BARRY FLUTH AS DETERiVlINED BY BUILDING OFFICIAL FRED PATCII. AND ACJREED UPON. RECEIPT OF $7.S00 IN ESCROW. DAN FRIE SECONDED THE MOfION. MOTION CARRIED UNANIMOLJSL Y. s. Consideration to authorize pavl11ent of !-IRA bills. A MOTION WAS MADE BY STEVE ANDREWS TO AUTHORIZE PA YiVlENT OF THE liRA BILLS. DAN FRIE SECONDED TI[E MOTION. f'vlOTION CARRIED UNANIMOUSI.Y. 9. Consideration of Executive Director's Report. Koropchak provided the report and also asked Dan Frie to update the 1-1 RA on the May 20lh meeting they had with Jeff (YNeill and Dick Van Allen. Frie advised that the group discussed their interest in the city acquiring \and for future industrial development. He stated that they had looked at appro:\imately 400 acres olT Orchard Road I'(.)r a future industrial park which is the current Osowski land. They also advised of land referred to as Paumen's near Silver Springs Golf Course. It was noted that the Osovvski property had trees and ponds and would he a niee residential area: the Paulllen land \vould be a good spot t'()r an industrial park. 10. Committee Reports. ("here were no reports. 11. Other Business. None. 12. Adiourn A MOTION WAS MADE BY DAN FRIE TO ADJOURN THE l\!EETING AT 8:50 P.M. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED lINANIMOUSI. Y. a'4 \ ./ .-, I... -. .~rnjjV_ C' rder I--IRA Chair ) . . . BRA Agenda - 7/2/03 5. Public Hearing - Consideration to adopt a resolution extending the Compliance Date within the Contract for Private Development between the HRA. Citv. and Twin City Die Castill!.!s. A. Reference and Background: Pcr the request of Doug Harmon, Twin City Dic Casti ngs, thc I IRA callcd for a public hearing to extend the Compliance Date within thc Contract for Privatc Dcvclopment bctwccn the HRA, City, and TCDC associated with TIF District No. 1-26. Thc "Compliancc Date" for creation of the job and wage goal means two years after thc datc of issuance of the certificatc of completion for Phase 1. A Temporary Certificate of Occupancy was issued hy thc Building Official on March 2 L 2001, and the final Certificatc of Occupancy issued on July 26, 2001. The Certificate of Completion was approvcd by the HRA on April 4, 2001 and amended to July 26, 200 I, for consistcncy with thc final certificate of occupancy. The request is to extend the Compliance Datc from July 26, 2003, to July 26, 2004. As ofthc March 14,2003, Minnesota Business Assistance Form, TCDC reported 6 full- time jobs with wagcs at or greater than $8.50 per hour wlo benefits and 28 full-time johs with wages at or greater than $12.00 pcr hour wlo benefits for a total of 34 full-time jobs. Totaljohs committcd at least 85 (See next page.) Because the City loan to TCDC was Fcdcral money, that agreement also includes a low to moderate income requirement. Thc Dcpartment of TED has provided a more detailed and current status of acceptahlc jobs and wagcs, this to determine action necessary for the Loan Agreement between thc City and TCDC (Sce attached letter.) TCDC did pre-pay the EDA loan on May 30, 2003, because the interest rate was 6.25% and thcrc is no prc-paymcnt pcnalty. Thcrc is no contractual obligation between the HRA, EDA, and City agreements, as each entity entered into a scparatc business subsidy agreement. Mr. Harmon was asked to prepare a plan outlining TCDC' s strategy for creation of thc 51 remaining jobs within onc ycar. Mr. I Iarmon may rcqucst thc I IRA to amcnd thc Contract downsizing thc numbcr of jobs in exchange for a higher wagc Icvcl. According to Kennedy & Gravcn, thc I IRA could amend the job and wagc goal rcquircmcnt within the Contract. However, K&G suggcst that thc Dcvelopcr agrcc to waive the HRA/City of liability as there is no provision within the Business Subsidy Law which addresses modification of job and wage goals. K&G has amended the job and wage goals for other clients. This should not effect thc Grccn Acrcs Wagc Requirement of at least 90% of thc jobs located on thc Dcvclopment Property to pay a rate equal to or grcatcr than 160% of thc fcdcral minimum wage ($5.25) (greater than $8.40) for individuals over the age of20. Please request Mr. Harmon to prcscnt his plan. HRA Agenda - 7/2/03 . Also attached is a summary of the remedies for default of job and wage goals as prepared by the Executive Direetor on May 13,2003. PUBLIC HEARING The public hearing notice appeared in the Monticello Times on June 19 and 26,2003, meeting Statutory requirements. Please open the public hearing for eomment or questions. Per the Contract for Private Development dated October 25, 1999, ARTICLE III, Section 3.6 Business Subsidv Agreement. (b) Job and Wage Goals, the BRA can extend the Compliance Date by up to one year: . Within two years ({fter the date qlissuance (?lthe certificate olcompletion qfPhase 1 (the "C'ompliance Date ''). the Developer shall cause to be created at least 85 nnvfiill-time jobs on the Development Property (excluding any jobs previousfy existing in the State as olthe date olthis Agreement and relocated to this .'i'ife) and shall cause the wagesfc)r such employees on the Development Property to be asf()llows: at least 14iobs pay no less than $12 00 per hour, exclusive qf'benefits. and at least 7ljohs pay no less than $8.50 per hour. exchlsive of'benefits. Not}vithstanding anything to the contrary herein, if the wag-e andjob g-oals described in this paragraph are met hy the ('ompliance Date, those g-oals are deemed sati.\fied de.spite the Developer's continuing- obligations under Sections 3.6 (a)(6) and 3.5 (d). The Authority may after a public hearing. extend the Compliance Date by up to one year, provided that nothing- in this section "vill he construed to limit the Authority's leg-islative discretion regarding this matter. Assuming there is no public comment or questions, close the public hearing and open up the discussion among the HRA commissioners prior to eonsideration oflhe following alternatives. CONSIDERATION TO ADOPT A RESOLUTION. B. Alternative Action: FIRST McrrloN 1. A motion to adopt a resolution extending the Complianee Date within the Contract f()r Private Development between the ERA, City, and TCDC from July 26, 2003, to July 26, 2004. . 2 H RA Agenda - 7/2/03 . 2. A motion to deny adoption of the resolution extending the Compliance Date within the Contract ......... SECOND MOTION 1. A motion to adopt a resolution amending the job and wage goal requirement within Contract for Private Development by and between the HRA, the City, and TCDC from 14 jobs (it! least $12.00 per hour to jobs (i-~ least per hour and 71 jobs (~y least $8.50 per hour to jobs @! least pcr hour. 2. A motion to deny adoption of a resolution amcnding thc job and wage goal requirement within thc Contract for Private Development. C. Reeommendation: FIRS'I' MOTION . As the Contract allows for a one year extension following a public hearing and Kennedy & Graven have no problems, the City Administrator and Executive Director recommend alternative no. 1. SECOND MOTION Without a written request or information from the Developer, no recommendation for thc second motion is given. According to Kennedy & Graven: Given the economy and hit on manufacturers, othcr IIRAs or Citics have amended the job and wage requirements with an agreement from the Developer to waivc the liRA/City of any liability to a possible challenge of the Business Subsidy Law. D. Supportill!! Data: Excerpt from Contract, public hearing notice, March 14 MN Business Assistance Form, letter from MN Dept of TED, Summary of Remedies, copy of resolution. . 3 // ./ ~,1/ / / . . .~~~ ./ .. 4' (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 ~ 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. I' (c) Remedies. If the Developer fails to meet the goals described in Section 3.6(a)(3), the Developer shall repay 0) 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 det1ned 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 rehites to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; I}.V ,-'"> ..... 'Y"' ". ..,. (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 mmlUfacturing facility (where any month in which the facility is in operation for at lea';;t 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 Repres~ntative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. _'-....--J::) F\ SJB-Iti9036 MNI9().79 10 ;") D ;; 7 9 8 Monticello (Minn.) TImes-Thursday, June 19, 2003--Page 13 NOTICE OF pUBLIC HEARING HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO COUNTY OF WRIGHT STATE OF MINNESOTA NOl1CE IS HEREBY GIVEN ",at me H-'og """ """",",,,,,me'" ^""""ay '0 ",d tor"'" e'ly of M"",'o~lo, ConnlY of Wright. State of M,,,e'ota. w'" hOld a p- _riog on Wedne"''''. Jul, 2, 2003. at a""",,'m""" · p.m. '0 me Bridge RoOm at the M""';oollo CommunitY ~r, 505 Walout s_t. Monti",IIO, M'Ooesota, relall'" to e"'''"'''''' "'" Complla"'" Oate wlth'o the Coo- for pri""te QeV~opment by """ betWe'" Twio Cay Die eastl""'. me HoU>'''' and "",,",,~opme'" Authority 10 """ tor me cay ot Mo"""'"o, and "'" C'IY of Monti",IIO. <lat'" oct. 25. 1999, and .. amended. All ,_""ed pers<>"" "'" awear at "'" _r'''' and pre"'''' their ~eW' orall' or prior to the meeting in writing. ORDERED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA -Ollie Koropchak, Executive Director (June 19, 26, 2003) PUBLIC NOTICE Au Eo~ronmeotal "".,.ment Wo""'''''' (EAWI h'" beeO prePared and ",tr,b- uted tor . ,,,",, .nd g,..el mini'" project '0 section 26. Tow""h'P 121, Range 25 (Monticello TownshiP). the proposer is Duininck Bros Inc. The """atiOo ,oct- ,",ppl"". ",o..atlon. """"",, and stocl<pllln9 ot aggre- gate. A b,,"mll'on' pl.", will al'" be ""'" 00 a _pore" .,.,;s. The "'" h'" not been pre"""'" mloed """ will be _,""" upon _,"",,00 of mIning. The EAW e_"'" all _otial area' of m'nI"" withio the pennlrted bOUndarieS of "'" ,he. eopIeS of the EAW ate ..a'lable f" """"" duri'" regular bUS'""" """'" at "'" Wri'" eounIY Pia"''''' & zonI"" Offi"', at"'" great Hi'" Ubi"", 405 St. ",,",",10., St. (;loUd, MN 5fl301.3697. al"'" Buffalo public Ubla", 16 Lake BoUle'''''' NW. Buffalo, MN 55313 """ at "'" Mon"oeIlo publlo Ubi''', 220 Weat .m St_ Monticello, MN 55362. cornme"" portalni'" to"'" EAW are be"'" an""""" .nd ,""uld be ",,,,,,,,,",, 10 """'''' too Wri'" eounIY Plann'"" & ZOO''''', 10 2<<1 """'" NW Ronm 140, Buffalo, MN 55313-1185. The comment period ends on July 23, 2003. _Chuck Davis, Wright County Environmental Health Officer (June 19, 2003) r i , ) \ . , FIRE REGULATIONS 3fl code 1 2 Blasting Agents 3 ~ 4 he City code is hereby amended to read as folloWS: CHAPTER 1 ~ FIRE CODE 1 :;ode ~\~1~~~';~f:i~~~a;;~1~- ~~~ :":::,:: :9""~~ ;::::;:: :::::'::,: FIRE} CODE: The Minnesota ~ ~ Fire code ~ ' all amendments thereto, one copy of which has been marked as lnd which is on file in the office of the City Clerk, is hereby adopted )r the City for the purpose of prescribing regulations governing con- s to life and property from fire or explosion. Every provision con- ,de, except as modified or amended by this ordinance, is hereby ,de a part of this ordinance as if fully set forth herein. EMENT: of the Fire Department serving the City or ~ ~ representative iff! ~shall enforce the provisions of this ordinance. . If of the Fire Department may detail such members of the Fire ,,,,,_IS .. ......1 from time to time be no-' The Chief of "'" ,t may recommend the employment of technical inspectors who, when ,1100 Is made, ",all be _cted _ an -- to _Ino Ir the position. The examination shall be open to members and non- ~ Rre ~t. and ..poO""'- me<Je a1t'" -- ......, be te term with removal only for cause. . conflicting ordinances IT\ONS: """, woro "iUrisdlction" I' u'"" 10 the M1- - S1o\O Rre be held to mean the City of Monticello. or the _ .eoqoorattoo eou"""" Is ""'" 10 the M'noesota u,,;tom> Rre ,\ be held to mean the attorney for the City of Monticello. i"~ffi~'t:~~~::~' ~~~~~~~7:~:~ ~~~~~~-t~:~;;;;~~~ ~;!~~~~:~~~~ . ~ . .:..~~r~~f;t~~;;~::~~?:a ;' \ \ 9, 2003-Page 7 \ .~ ~ I,m" C .,(""" ,,,,ti,,, I.. "" " OM, "t """"t" .,~ ",.ri"'" lawyers tllrougnoulllle U.S. to lIelp people across tile country. . James E. Rolshouse, Attorney 5.~ ...{ 1 . .1 - - ...... . i SectIOn 4 Gaa s and Public Purpo.$e Identified in the Agreement 28. Minn. Sdc. ~ 1161.994 requires that business subsidy and financial assistance agreements state a public purpose, Which of the follOWing public purposes were stated in the agreement? (Mark all that apply.) D Enhancing economic diversity :ii Creating high-quality job growth '0 Job retentIOn Q Stabilizing the community Jalncreasing ta."\; base (cannot be only purpose) D Other (please specifY) D Other (please specifY) D Other (please specifY) 29. Indicate whether the agreement included the following types of goals, and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment daters) for each goa1.) A) Specific wage and job goals to be attained within 2 years B) Other job-creation and/or retenrion goals C) Other wage goals D) Other goals other than wage and job goals Goals established? ~s DNo DYes D No DYes DNo DYes DNo Target attainment dates (month & year) Seot. 1. 2002 All goals attained? DYes ONo DYes 0 No DYes ClNo DYes CI No (Please attach descriptions of goals and progress toward o.Jwmment if nat documented in Question 10.) 30. For each of the following wage categories, indicate the job crearion and/or retenrion goa.ls stated in the agreement and the average hourly value of any employer-provided health insurance goals for those jobs. (Onlv indicate job creation goals In full-time equivalents if you are unable to separate goals by full- and part-time positions.) Full*time Put-time! FTE (onlv if goals not HOllrly Wage Job S<!2S0nalfTemp. stated ;l.S FT/P1) Job HOllrly V;l.!lle of (exelllding benefits) Creation Job Creation Job Creation Retention Health Insllr2nce no hourly wage-Ievc:l goal ~ - - - s - ~~"Q.9{ ~ - ~ - s - . 4L..wa.5ji $ 8 . 50 71 s - - - - - ~ ~ - ~ - s - s'1-~oLEASl1~$12.00 14 s - - - - - :., 'ij -, , l~ ~ - ~ - s - ('11:' 1"\1'1 , . '. er s 31. For each of the follOWing wage c:J..tegories, indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (Onlv indicate job creation in full-ttme equivalents if you are unable (Q separate job creation into full- and part-time positions.) FilII-time Put-time! FTE (onlv if unable to HOllrly Wage Job SQSOnallTemp. !eparate FTfPT) Job HOllrly Vallie of (e;ccfudill~ beoelit:ll Creation Job Creation Job Creatioo Retention Health InSllraoce a~ - - - - s - ~'( --- - - - s - AT LEAST $8.50 J s....: 7 l/J/v- sa .. . . _ 9 ~ - - &X~"'9~X - - - - s -- AT Least $12.00 -2B- s~ 7 tjttr - 4) - - - T ... .,,~.,\'-. - - - - s - . 32. Has the recipient achieved all Q:oals (see Questions 29, 30 and 31) and fulfilled all obligations stipulated in the agreement? (Mark one) DYes &I No 200. Minneso~a BUSIness Assis[;U)ce Form P;l.ge 3 of ~ Oep:tnmcnt of Trade and Economic Development 5G . . . June 24, 2003 I Ms. Ollie Koropehak Economic development Director City Hall 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 RE: Economic Development Set-Aside Grant City of Monticello/Twin City Die Casting Company Dear Ollie: This is written to address the information that you recently submitted regarding the jobs created by Twin City Die Casting Company. If the company and the city choose to request a one-year extension. a progress repoli must be submitted for the period ending July 3 I, 2003 and July 31, 2004. At the end of the one-year extension, we would evaluate the number of jobs, the number of low and moderate-income jobs as well as the wages paid to the employees. If the company has less than the 85 jobs committed to and meets the 51 % lmi requirement a pro rata share of the grant funds must be returned. If aU of the jobs are created, but less than 5] % of the persons taking the jobs are lmi, then all of the grant funds must be returned. If, at this time, Twin City chooses to repay the balance of the loan, the city must submit a final progress report retlecting the creation of 19.5 jobs of which 10 were taken by persons that meet the lmi criteria. The city would be able to keep $263,500* of the principle payments made and all of the interest accumulated on the loan. The remaining $236,500 would be returned to this department. Do not hesitate to call me if you have questions regarding this letter. Sincerely, Carol Pressley-Olson Senior Loan Officer * Based on $6,000/job that pays a base wage greater than $8/hour, $1 O,OOO/job that pays a minimum of $1 O/hour and $15,OOO/job that pays a minimum of $12/hoLlr. 5b . . . I Twin City Die Castings Request for Prepayment May 13, 2003 '\Y\~ ,,?o, ~ 003 GMEF Loan No. 017 $100,000 6.25~) ~.M.." ~~ Create 85 full time jobs (37.5 hours per week) by July 26,2003. Green Acrcs: No less than 90% of jobs must have wages greater than] 6()</,o of Federal minimum wage t()r those 20 years and older. ($5.25 X 160% = $8.40 per hour excluding benefits) (77 jobs :> $8.40). (8 jobs:> $12.00) Reported March 2003, 34 full time permanent jobs - 28 jobs> $12.00 Met wage requirements. 51 additional jobs needed. 6 .jobs > $8.40. Rcnledies: ]. If not - Borrower pay outstanding principal and accrued interest. 2. If implicit price detlator exceeds 6.25% as defined in MN Section 275.50, Subdivision 2. Borrovver shall additionally pay to lendcr the difference between the prcscnt valLie of the interest actually accrucd on the Loan as of thc date of such payment and thc amoLlnt of interest that would have accrued on the Loan if the interest rate on the Loan at all times had been cqual to the implicit price detlator on the date of the Event of Default causing Lender to accelerate the Loan. Repealed 1989. Outstanding principal, May 1,2003 = $64,003.67 + $11.1116 per day interest through May 31,2003. Through Dee 2002 interest = $13,255.30 City/TCDC Loan $500,000 4% Create 85 fLlII time permanent jobs: 71 :> $8.50 & 14:> $12.00 & 43 jobs must meet LMI or 51 % . . of jobs created. Reported August 2002,40 full time permanent jobs - Met wage requirement. 16.5 .iobs met LMI rC<luirements, 21 jobs needed to comply with LMI requirement. Need an additional 45 jobs and 26.5 LMI. Outstanding principal, May 1,2003 = $376,812.17 + $41.868 per day interest through May 31, 2003. Through Dec 2002 intercst $43,608.62 5E City/State Grant Agreement: . , 1. 85 jobs divided by $500,000 = $5,882.35 per job X 40 = $235,294 plus interest City retains. City pays to State $264,706. 2. If LMI requirement not met, City pays State entire $500,000. Green Acres (sanle as GMEF) and 71 jobs:> $8.50 and 14 jobs:> $12.00 Reported March 2003 - same as GMEF. "'-L<:L. "J,.f1o"':3- ~ "1.",. -:I... \ - ~ "ll.. C~. ';lOCI \.(\ 1. The Authority may, after a public hearing, extend to Compliance Date by up to one year. ) 2. The Developer shall repay to the Authority a "pro rata share" of the amount of any payents made to the Developer and to the City a pro rata share of the amount of any fee waivers granted. 3. To Authority and City, interest on the amounts in clauses 1 and 2 at the implieit price deflator from the date of issuance of the C of C to date of payment. . Pro rata share means: if failure relates to numberofjobs: the jobs required 85 less the jobs created 34 "" 51, divided by the jobs required 85 = .6 To I-IRA - February 1,2003 - $36,935.48 X.6 = $22,161.28 To City - $40,000 X .6 = $24,000. . . . . RESOLlJTION NO. MONTICELLO HOlJSING AND REDEVELOPMENT AUTHORITY RESOLUTION EXTENDING THE COMPLIANCE DATE WITHIN THE CONTRACT FOR PRIVATE DEVELOPMI~NT BY AND BETWEEN TWIN CITY DIE CASTINGS COMPANY, HOlJSING ANn REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO AND CITY OF MONTICELLO WHEREAS, the llousing and Redevelopment Authority (the "Authority") in and for the City of Monticello, the City of Monticello (the "City"), and Twin City Die Castings Company (the "Developer") entered into the Contract for Private Development (the "Agreement") by and between Twin City Die Castings Company and Housing and Redevelopment Authority in and for the City of Monticello and City of Monticello on October 25, 1999; and WHEREAS, the Authority on April 4. 2001, approved the Certificate of Completion based on the issuance of a Temporary Certificate of Occupancy by the Building Official, and WHEREAS, the Authority agreed to amend the date of the Certificate of Completion from April 4, 2001, to July 26, 2001, the date of issuance of the Final Certificate of Occupancy, and WHEREAS, the Authority called for a public hearing date of July 2, 2003, for consideration to extend the Compliance Date within the Agreement; and WHEREAS, to prevent default of the Agreement, the Developer requests ARTICLE III. Acquisition of PrODertv: Site Improvements, Financial Assistance, Section 3.6. Business Subsidy Agreement, (b) Job and Wage Goals be amended following the public hearing to read: Up to one year from the 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 ............. . NOW, THEREFORE, BE IT RESOLVED by the Authority, the City, and the Developer as follows: 1. The Developer, Authority, and City understood amending the completion construction date from June 1,2000, to April 1,2001, may have altered the Projected Tax Increment Cash Flow. ~ Sf l . . . Resolution No. ~ Page 2 2. 'T'he Developer acknowledges that due to a sluggish economy and the competitiveness of the European and Chinese markets, the Developer used a temporary work force causing a non- compliance of the job and vvage goals by July 26, 2003. 3. The Developer has prepared and presented a strategic plan for compliance of the job and wage goals per the AgreelTlent and acceptable to the Authority. 4. 'fhe Developer and Authority understand per the Agreement, the Authority may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section wi II be construed to limit the Authority's legislativc discrction regarding this matter. The Authority, the City, and the Developer hereby approve extending the "Compliance Date" for the creation of job and wage goals from July 26, 2003, to July 26, 2004, within the Contract for Private Development by and between Twin City Die Castings Company, Housing and Redevelopment Authority in and for the City of Monticello, and City of Monticello, dated October 25. 1999. Dated: ,20_~ HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO TWIN CITY DIE CASTINGS COMPANY By Its Chair By Its By Its Executive Director CITY OF MON'fICELLO By Its Mayor By Its Administrator : , ~ : , , T"(IN CITY DIE CASTINGS COMPANY STATEMENTS OF INCOME Years Ended September 30,1997 and 1996 Net sales~manufacturing (Note 6) . 0'" flo t,. $ Cost of goods sold~manufacturing (;"(""-' ~~::;;_.", t..h.f) ~ Gross profit on manufaduring sales ~ - \( ~ Percent to net sales "5)"....-'"" ~ Sales:-tooling Cost of goods sold~tooling Gross profit on tooling sales Total gross profit , , , Operating expenses Operating income Other income (expense): Interest ;'I ,"",- Other r(l-- b {....:.t '{<r^" .:Yvt Net income STATEMENTS OF RETAINED EARNINGS Years Ended September 30,1997 and 1996 Balance, beginning Net income Dividends Balance, ending See Notes to Financial Statements. r '0\- 6 ,,,.s -;).0" tl".c:; .r-- -'''I" 1997 28,065,978 $ 23,009,843 5,056,135 ------:;. 18.0 % 3,726,065 3,690,777 35,288 5,091,423 (l--o~,.-h"",{..., -St>A>\u I 2,272,072 2,819,351 f~'.~ ...{----- ~,-,) (5:V'~ ( .s..\<-' .;. t=...--A Atutt) '$ .1- ~ vlJ' I: l\ ~r oJ t \ ,Q - 4 (239,300) ( 505) 2.579.546 $ 1997 $ 9,577,699 $ 2,579,546 (J .603.509) $ 10.553~736 $ 1996 25,900,711 20A04,713 , 5,495,998 21.2% 3,820,898 3,534,634 286,264: 5,782,262 2,310,213 3,472,049 . (183,782) 10,612 3.298.879 1}96 8,510,283 3,298,879 (2.231 ,463) 9,577.699 \ , 4 . PHASE 1 MAGNESIUM DIE CASTING FACILITY . . Land Building Architect $210,000 $1,427,600 $40,000 Phase 1 Total $1,677,600 Office Furniture and Computer Equipment Lunch and Break Area (4) Die cast Machines Phase 1 (4) Trim PressPhase 1 (4) Melt ahd Hold Furnaces Phase 1 (4) Spray Units Phase I (4) Hot Oil Units Phase 1 O.H. Crane Metal Chipper (1) Air Compressor Water Cooling System Evaporator System Tool Room, Die Supplies, & Tool Crib Maintenance Quality Control General Maintenance $40,000 $20,000 $1,596,320 v $140,000- $5~6,000V $I1O,OOOV $36,000 $32,000 $47,000 iV $39,300V $20,000t/ $48,695 $221,000 $112,000 $390,000 $48,000 5% Contingency $ 169,815 $3,586,110 $5,263,710 Total Phase 1 Project Total Cost Phase 1 Building 35,690 sq. feet 2 cast machines and support equipment in place by June 2000 2 cast machines and support equipment in place March 2001 This is for a Cast & Trim only Facility . 1 , I I t 1 , , I 1 I I I I I I . I , I I I , ., , I I , , I I , I I 1 I I r,1 :il .jf ;1 :, t, Wol>~J1...~.._J' 1, 'I I, " " I. I: I, " I, 'I I, II " " 'I 'I " " _. _ __~_ ~ __ ~ _~ "I __.. __ _!.~__._ __'H' .~ _ _ _ _,. ___...,_ -~-_..: J." ._._~_\ , I , . , m m _ _~ _ _._ _... m" ___.... __ _ _" _u ~_ __ m __u _+~..:_ u:u _~ _u_.__u.~~~.--=-m.~~ ._._. .-,'-"-' -l'-"~"-"-"- ,i..t:.J1 J.~/..I. .:!::I:J '-... . 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""'.",.......""I'...!o.........---~~~~~-"- hI._--"U r-'Allt:. l-JL 'A ase \I Total Cost ase II Magnesium Die Casting Facility Capital Expenditures FY 2002 (4) Die Cast Machines Phase II (4) Trim Presses Phase II (4) Melt/Hold Furnaces phase II (4) Spray Units Phase II (4) Hot Oil Units Phase II D.H. Crane (12) CNC Machining Centers Ph.11 Total Yo Contingency . $1,645,256 $ 141,000 $ 840,000 $ 110,000 $ 30,000 $ 32,000 $1,880,000 $4,478,256 $ 233,912 $5,574,568 ase II Magnesium Die Casting Facility Capital Expenditures FY 2002 Phase \I _ Building Addition of $17,500 sq. ft. Complete October 2001 _ 2-Cast machines and support equipment in place October 2001 _ 2-Cast machines and support equipment in place January 2002 _ Add CNC Machining October 2001 . 24 . Source and Use Statement -. IiIF .----.----.IRBAlIOC::'u .-c- - &jUty"'-"" "CtY"--.-..;-"IRBAlloe:----.' ----- T""I , FoalltV , &jUpmont <'"".... 'i<w1 llF 210,000 : 1,541,5915 38.5,399 1.925,995 .- ng i .n 'w,.... I -400.000 289,779 GMU 2.549.J:l5 3,399,115 .... : no) -- ....... ............. ..~. -400,000 1,541.5915 675,178 310.000 2,549,J:l5 5,5:l6,110 ..."",,,..,,,..,,.~, Propeny ~ Sito"""""","," Now~ -;"""""""'"""'l t>;Id ~d~ ........... -...." . . CJ/'ot(dM ...... ..,....,.....-..... T""lprojacI T~.~) n...... RoI. 20 I-l'\ 6_25% .7.00"1> 4% 7.50% I-l'\ Uen_ ........................---.................. . 111 I-l'\ 1.t 2nd C>lIlo.."'" Eq.i~ _ Est.. NO. Eq.ipment Eq.ipment p...."., GYInotl.... ... roq.il1ld os . ",""lion of lite IMF loon ..".,.,.,"'~,.,'"..,...._._..,..._._..._.._......~...,......".~"..,._._.............._........,',.".,.".....n"',.....,...,..,. Magnesium Assumptions Casting Machines - 3 Shifts - 24hrs x 5 days - 120 hrs x 80% - 96 hrs/wk - 96 hrs/wk x 50 weeks - 4800 hrs/yr. - $2,1 OO,OO/machine/yr. - $437.00/hr in sales per machine 8 r! / I I / . . Magnesium Assumptions PAY 1-Shift (8hrs) x .80 EARN = 6.4 hrs/day 2-Shift (16hrs) x .80 12.8 hrs/day . 3-Shift (24hrs) x .80 = 19.2 hrs/day .......Emp.ioym.."i.~~--F~~ '-.' 1 .. 1i1.inCiiyOi.ci$ii;;Q$~ ... .... ......c:wi'ri~mt'"l(l'iriliiiM;.r:.'ul;:.:lmi.-.qul~:iili;r(}.i1'priljiKil bCi'ton:"'"t.t:)N'IY:EllO"-- "'SliilW"ld'i: , JODSTOBE'cRMTm:"(FmMNENTONl.V) .....--..--... ................ ................- .......-.. ..........- .................. ,.~~,:::.:',~."..,.. . .__1_________________..______...'.___.11______..'.___.. ......JOBS.... ro""l WOF .~, ~VRA'TE HOURLY VAll.E """'^' I.FENSURANCE NS~~.AEMe.EN1':o;:~ TV FIE o~ 1I05IrnN mtE JOe, ..,.,... WO!lENEfITIl 'ENe'~ HANG CA n; ...""""",, ...V....LA8LE TIt",,,,, TOU.liI c.. Cost Op 2. lUO S.Da YES YES YES yES Oie Ca$I Uilily 24 12.00 4,20 Tool Room 5 19.00 ..65 Mail'll:. Tt!d\ 5 17,00 5.95 Majnt..~ 4 13.00 ',55 T'IlCk 00...- 1 12.00 '.20 sn.~ 2 13.00 '.55 Macnnng 18 1.,25 5..' 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" c:> Cf> ~ ::=- U> ~~, :::0 ~ <:_0 <:D =::> ~:~~ c.c:::> = ____ c.c::> :::cJ ----...". <:D -'r1 c-:. 5 " ~- ~- July 2, 2003 9:48 AM Twin City Die CastinQs Company FIXED ASSET SUMMARY REPORT as of 09/02 T=====-::::::-::--_n.- Fix'ecf"Asset Cost nu:-::_____._nnu TF~---n.-n-u- Accum;ilated Depreciation (t) (-) (t) (-) Current Prior Accum Current Beginning Year Current Oepr/179 YTO Oeprl Current Accum SYS No __. Cost _."Acquisition Year/Oisp En_d_ing Cost Expense 179 Expens~__~:pr/179/0isp Book: Internal FY: September Paqe 1 _____uu_____1 ~~ Total Accumulated Jl~pr~Clatlon __ "~ ~ SUMMARY OF ASSETS WINO CURRENT ACTIVITY 3090161,91 3090161,91 49876,16 79234,92 129111.08 Count= 4 ---------- ---.---------- -------------- -----_________ __~___________ _____________. ______________ ____~_________ G/L FA Acct # 1835 3090161.91 0.00 0.00 3090161. 91 49876.16 79234.92 0,00 129111.08 001274 0,00 39472.00 0.00 39472.00 0,00 2368,32 0.00 2368.32 Dynarad MS700 Furnace 001278 0.00 67578,96 0.00 67578.96 0.00 3378.94 0.00 3378.94 Rimrock Model #4400f 001279 0.00 80429.00 0,00 80429,00 0.00 4021.44 0,00 4021.44 Rimrock Model #4400f 001280 0.00 43057.00 0.00 43057.00 0,00 2152,83 0.00 2152.83 Rimrock Model #4400f 001310 0,00 626120,58 0.00 626120.58 0.00 31306.02 0.00 31306.02 Buhler 950T 001313 0.00 16397.40 0,00 16397.40 0.00 1639.74 0.00 1639.74 4400F Robot div04/05 001337 0,00 43769.88 0.00 43769.88 0.00 2553.24 0.00 2553.24 . 410 Servo Recip 001355 0,00 6436.29 0.00 6436.29 0.00 76.62 0,00 76.62 Conveyor Monticello 001367 0,00 6016.16 0.00 6016.16 0.00 71.62 0.00 71.62 F02 Furniture Monticello 001372 0,00 64301.56 0.00 64301.56 0.00 4286,77 0.00 4286.77 F02 4400F robotOCM#4 0405 SUMMARY OF ASSETS WINO CURRENT ACTIVITY 4430049,32 4430049.32 252288,69 501323.83 753612.52 Count: 57 ---------- -------------- -------------- ---__.._______ ______________ _________~~___ _..__.________ ___________.._ G/L FA Acct # 1865 4430049.32 993578.83 0.00 5423628.15 252288.69 553179.37 0,00 805468.06 SUMMARY OF ASSETS WINO CURRENT ACTIVITY 7520211.23 7520211.23 302164,85 580558.75 882723.60 Count= 61 --.------- ---.---------- ------~------- ----------____ ____________.. ______________ ______________ __..__________ Grand Total 7520211.23 993578.83 0.00 8513790.06 302164,85 632414 .29 0.00 934579,14 =::::::~~~~~~: =::=:==~~~~~~~ ~9\~~~=:c:::;[~~~=~~~=;;.~ci)~~~~~:~:==== :==~=:~~~~~~~~ ~~~~~~~~~~~~== =:::====~~~~~~ ~ ~1~j~~~O' ---------------------.------------------------------ Calculatlon Assumptions --------------------~---------------------------------- Book Short Years Midquarter Convention Adjustment Convention . Internal [N] [N] None . . c: o +-' CO N c: CO 0) L- a o - - Q) U :;:::; c: o ~ . ~Iii :i5 .g~ -~ ~ ljlg' ~'" "'e.. "" 01 iij ...... jE x.. >:::,; il3 ~j iij III .~ 1ii 0'" "'(/) 0: '0 ~ c:'" ~8, ",10 c: l!! JijO '" '" - go.. '"' 0;:::'; ~8 if Eir ~u wO w oB ~~! 0 ~ CDU ~-~ "" ~.~ ~ - <tiS: ~tio ,~ :c; ~~!j ""(/) ~U ~ e.... t~ i 'iij5, '" ..; ~~~ 0> ~:::,; j ~ ~B - '" c: en", ",c: ..,'" -- <: ::E -- ~ ~ ~.~ iij ~8. ~~l Iii 0>" I- ,,(/) ~ c:o> o ~ z~~ <: '" '" C"(i h ~~ -l::t '0 < '" ... ~~ '8"'0 "'- x_ I- >!!' ~~ ~ -u8. (!)iij EO (!) IE ~ . ~ (/) " '" on ~ <II -l: E~ ~t ~~ Iii ~ ,gB "'0> I-!!' 2'l!! g-~ -U! ~8. ... 0", -. ",,,, EO -;;0 ~::E c.. I- ,,0 c: " ~ (2 " '0<: "'''' IE U "'> w", ~U ~ ;;:: "'Z - (/) U '" ~ ~i B ~ I~ iil~ -g.. -=-8. >-~ ",S ~O EO (/) ~ IE ~ ... (/) ~ " '0 "'! IJ ~'" I-U ~.!!! " '" '" .- (!)O &,0 IE - ~ (/) " .!!! '" - 0 >- "jj 5jj 1= ~~ ~.. ~~t ~t'l ~5 E~ 8" ...!!! ~~ ';0: - ~~ I- !lIo -c: ~i5 I:: '0- I!: - ... U - "'2l=< "on I:: Cj !!,<II l- (/) ~".i ...u 1! ",'fie '" ~ ~ ~Iii }' ~e.. ~I l~ CDJij -", i:,.. iij~ 0> U enU "'", c: "", c: '" ~.!!! i;'o: ~.Xi ~i5 "'.- ",0 ~o {'!. Oiil 0 IE ... X's - ~ ,g-e.. en " e.... ~ 0: X ('I') o o ~ T""" r::: . . . Current Situation: TIF HRA: TCDC EMPLOEE ANAL VSIS 34 employees average hourly wage including Salary people Average Weekly Payroll based on 40 hours/week 10 Salary employees @ $16.00/Hr 75 Hourly employees@ $11.00/Hr Average Weekly Payroll based on 40 hours/week $21.72 $29,539.20 $39,400.00 i. This industry-specific survey of top die casting executives continues to be one of the most valued that NADCA gathers and reports. Used to measure the "confidence" level of die casting industry CEOs in the current set of business conditions, the NADCA Business Barometer not only looks at "now" but also the direction the industry is heading. To measure the "confidence," respondents are asked to compare current business conditions to six months ago. In this installment, one question was reworded to see what the industry is projecting in total sales for this year compared to actual 2002 sales numbers. :. Flat and Slipping Though the worst part of the "manufacturing reces- sion" is over for the die casting industry, CEOs are not confident people right now. Simply put, the future still remains very uncertain. Though the "confidence" chart shows that industry leaders are looking forward to better times, it is flat at best and has been holding at that level for nearly a year. As for the level of confidence in present business conditions, it has slipped for the second quarter in a row, dropping to early 2002 levels. Maybe the old adage fits here, "Two steps forward; one step back." And you get the same feeling when you speak to the industry leaders in person! ! .... /////'///,,/'//'/,1' . When the confidence level is reviewed over a 10-year period, two things become very obvious - the steepness of the drop and the slowness of the recovery. Over the last 10 years there were drops. Yet they statistically did not show as steep nor were the recoveries indiscernible. Things happened and then things rebounded, but when you look at the most current set of business conditions, the drop was gut-wrenching and the recovery started, but seems to have lost its steam. (In the comments sec- tion below, one of the survey participants even asks the question, "Is thisthe new order?") : "As with previous,surveys,this NADCA Barometer '.:collected wri'tten comments from the participants. In no "particular order, they are listed next. Please read these . carefully. Per usual,.we receive the entire range of emo- tion with these Yfritten survey answers, B/L1NKS 0 June 2003 ~~ ..... ~ Q ~ .... ////,1'///////////////'/ "Record sales will result in additions of machinery and buildings in late 2003 and 2004:' "Utilities and insurance costs are brutal. Any thoughts on member company consolidation to promote decrease in costs?" "The Automotive OEM drive to change to North American Special Aluminum Alloy (NASAAC) metal appears to be a terrible happening for die casters. Its listing appears to have no relationshiP to die cast alloy pricing whatever, that we can see." "Haven't seen a downturn last this long. Is this the new order?" "Reverse auctions are no-win situations!" As with any die casting industry survey, maintaining proper representation by all industry segments and geographic regions is very important to allow the data to be credible and comparable. The respondents for this Barometer were from a wide cross section of the industry. Pie charts of the key demographics - region and end-mar- kets - follow. The Midwest was represented by nearly 40 percent of those responding. The next biggest areas were the Southeast, Central and West. Rounding out the group were the Northeast. Canada and Mexico. Mexico 7.4% Northeast 7.6% West 11.3% Midwest 39.7% The survey's representation of end-markets was once again well distributed. Of those responding, 37 percent had some manufacturing exposure to the automotive industry, with a fairly even distribution of other key end- markets. Building hardware was the next biggest category www.diecasting.org/linl<s ;j :1 ~~, ....,r Pf':(f'i"~" .~'" [in] ... -~. ,'" . ",.,,~, i~:; I'<'l"': ,.1 i'-.'V"'.!,I "'(;LII'" with 13 percent. There is always some overlap in the categories. but the objective is to get the widest distribu- tion possible with an emphasis on automotive. The NADCA Business Barometer confidentially asked the question. "How is business now compared to six months ago?" Industry CEOs responded less positively. Only a fraction chose "excellent," while 34 percent chose the category of "fair." The only good news is that less than 8 percent chose "bad," an improvement from the last Barometer. The most noticeable change is the increase in those respondents choosing the middle of the road, or "good" compared to the previous quarter. More than a third felt they saw no change. 0'1\ elliC.1l4lnt VM'j Gl)~ Go" ,... B.d Hopes for the future have definitely flattened out. Though still positive, optimism has waned in this index. Industry CEOs are feeling somewhat better about what they are seeing. Simply put, just over 77 percent of executives see the future as either "excellent," "very good" or "good." This is a slight decrease from the last Barometer. S'I\ 0'1\ belll.l'Il v.ry Good Goo. F.~ e.. www.diecasting.org/links NADCA Business Barometer Indicators Five specific indicators are part of every NADCA Barom- eter. Considered key business bellwethers for any manu- facturer, these areas of activity are monitored to identify general industry trends and to see which are being affected by the current set of economic conditions. In this section, the survey requests that respondents make all comparisons to three months ago. Quoting This indicator continues to hover at about the same level as before. Fewer than 34 percent of the respondents are claiming some level of increase in quoting which was nearly identical to the previous quarter. Again, about the same percentage were extremely bearish. Just over II percent chose "large decrease." The only drawback with this indicator is that it cannot differentiate between new work and existing work simply looking for a "new home." Order Backlog This indicator seems to be slowly moving towards the positive. A little more than 41 percent of the respon- dents claim no changes in their backlog. which is an increase from the last quarter, and is a direct result of a decrease in the two bearish categories. Point to note: nearly 27 percent of respondents saw some level of increase in their order backlog. The indicator continues towards the positive. 5'1\ 0% lai'QiII D6d(W.II1U :ttlan. ~"'IIII1;. ..... sng,u 1r\(;1'1N1ll1i L.rg. In~~... June 2003 $ L1NKS/9 .. . Shipments Shipments seem to be up, too. Over a third of those responding claim some level of increase in their ship- ments, Compared to last quarter when nearly 44 percent of industry executives chose one of the negative catego- ries, this time only 30 percent were bearish. So, combin- ing backlog with shipments, there seems to be a slight push towards more business activity, . Receivables Once again, the majority of industry leaders saw no major movement in receivables. More than 73 percent chose "no change" over the last quarter. Just under 8 percent saw a "/arge,increase" while no one saw a "large decrease"- nearly identical from the previous quarter, Slltllh,~ ..- ~'vhtlnct.... la'1l.lntoFq.M Profits Possibly the most controversial indicator of the five cre. ated by the Barometer, industry CEOs pushed the "profits" index toward the negative from neutral because, compara- tively speaking, a few more CEOs were pessimistic versus . 15% 10% .% 0% LII'lI_ ~M S1t",hl o.cr.... ..... $lIgM In~IIIM 1.-"" IhcnHlIU. I O/L1NKs :;, June 2003 ~Y.~f'. -:im.. .lIt.IIL.-...'l ~ ,~ 1.,-.'.1 "U'l!.. J II:i['llli~;Cf:T:~e': optimistic in this survey. About 40 percent chose one of the negative categories, 25 percent one of the two positive categories with the remaining third choosing "same." -;,:'1 !I:~ .-, Sales Projections for 2003 The NADCA Business Barometer asked one additional question in this installment of the survey. The question was, "What are your projections for 2003 total year sales compared to your actual 2002 total year sales! Are they: Excellent ~ Up /0% or more; Very Good - Up 1% to 9%; Good - No Change; Fair - Down I % to 9% or Bad - Down 10% or more!" Here is where the true underlying feelings of industry pessimism flowed out. Only about 28 percent felt they would do better than 2002, with over 30 percent feeling that 2003 would be a flat year at best. But that's not all. Just over 40 percent felt that 2003 would be worse than 2002! This is a definite flip from the previous Barometer that asked for everyone's first impressions of 2003. With a quarter under their belts, the industry seems to have backed off their initial "positive" projections. The last Barometer ~ which was the first one for the new-year - found over 43 percent looking for a "positive" sales year! i L 1- c i- .- I;;;::: ANOTHER POINT OF VIEW As you might know. business barometers are not unique. Various associations and chambers of commerce perform their own versions of these types of surveys, compiling results for their industry or region. Recently NADCA found one that we thought we could share with the mem- bership. The National Association of Purchasing Manage- ment - Chicago does one and we looked at their April installment to check for commonality. In a nutshell, here is what they saw: April was the second month of declining business activity... Production rebounds, but employment continues shrinking ... New orders drop ... Lead times for production materials and capital equipment lengthen ... Where have you heard all this before! ~ .. www,diecastjng.orgllinks Alum-4 Automotive Cast/trim - Housing 3.48200 850k/$4.1m 73% secondary (BVV5765) "- Alum-5 Small Engine Caslltrim 380 Piston 004-0253- 1,9m/$703k 58% 99 (BVV5766 Small Engine CasVtrim 380 Piston 004-0254- 2.2ml$814k 58% 99 (BW5767) Small Engine Cast/trim 380 Piston 004-0336- 912k/$410k 65% 99 Cast / trim / Plate, Belt Attach Alum - 6 Data Storage Machine/chromat 3-00240-01 2500 / $4K 90% e Cast / trim / Carriage X 3- Data Storage Machine/chromat 00256-01-01 2500/ $31.7K 69% e CasU trim / aT' 3 Data Storage . ase ens loner - 2500 I $10K 91% Machlne/chromat 00279-01 e Cast/trim / AT' 3 Data Storage . rm ensloner - 2500/ $10K 93% Machlne/chromat 00280-01 e Cast / trim / Bracket, Pivot Data Storage Machine/chromat PKR015 2500/ $11.3K 83% e Alum - 7 Medical CasVtrim/paint 18" Base Stand TBD TBD Type of Services req'd > Part Business Metal type Automotive Caslltrim Automotive Castltrim Medical Caslltrim complete Automotive / Recreational Caslltrim Engine CHAPPARAL TECH -TARGET ACCOUNTS OGDEN ASSOCIATES * TARGET ACCOUNTS RAM ASSOCIATES TARGET ACCOUNTS WISNER ASSOCIATES - TARGET ACCOUNTS " Services Annual Vol. type of req'd > Part I Part # I Estimated Estimated Business Metal type Annual Conv. % Sales (000) Mag - 1 Commercial Cast/trim Crankcase 1.2m/$2.2m 32% Mag -2 Impact Wrench Cast/trim/machin Housing IM6100 50k/$540k 79% e/paint (BVV5771) Mag - 3 Computer Cast/trim Housing 127001 12k1$184k 40% complete (BW2005r1 ) Cast/trim Display Frame Computer complete 127002 12k1$130k 45% (BVV2004r1 ) Cast/trim Dash Mag - 4 Medical monitor complete Housing419030 20kl$900k 32% (BW3072XLA) Medical monitor Caslltrim Bezel (BVV5755) 20kl$180k 45% complete Mag - 5 Data Storage Cast/trim Plate Motor TBD TBD complete Elevator (Thixo Type of Services req'd > Part Business Metal type Computer Servers CasUtrim Port Pans complete Bell Housing Alum. 1 Automotive CasUtrim 24206952 228k1$2.9m 20% (BW5792r1 ) Case Extension Automotive CasUtrim 24208016 90k/$419k 36% (BW5793r1 ) Automotive CasUtrim Housing 24224026 1.25m/$4.5m 29% (BW5780) Alum. 2 Automotive Cast/trim 3 Spoke Wheel 220K/$1Am 51% (BW5779) Medical Pump - 2 Channel Conn. " Alum-3 Cast/trim 2401 P-ABT 25k1$121 k 57% enclosure (BW5759M) Medical Pump - 1 Channel Conn. Caslltrim 2501 P-ABT 25k1$116k 57% enclosure (BVV5760M) Medical Pump. Pole Clamp Body Cast/trim 2604P-ABT 25k1$121 k 69% enclosure (BVV5761 M) Medical Pump - Caslltrim Pivot Latch 2611 p. 25k1$8k 54% enclosure ABT (BW5762M) . . . c o -- ~ CO N -- C CO ~ o o - Q) () +:i C o ~ i5 c:o> '" '" .. c: c:'" ;'2::' !l'~ c.:li c.:l - t- .. '" :;; E'~ ~~ -oC:: W", a:: ~ g> ";;; ~ ~ 0.. .. i:5 L till & ~"~ ",~:i l'l 9/,- ~ 2le- m...o.. .. '" c: ~'ii) ~~ "'~ jo.. 0..'" a:: :r "EL ~~ ~ffi m::' ~~ ~~ wO ~~ ~~ ~~ I- c:'" '" '" ~~ Jj,i! c: c: (U ,2 :;;! 2l~ I- C:.!!! "'''' ilO 0>", ~o 'E~ ::2u w ... g"~ L c: ~ "'0'" !~~ ~ 0 '" i:u!5 m::lli,i ~8 0..", .. '"' 0> :;;::!: H "'''' ji :l;S ~ \. ~ i'l J~ .><g. ~o:: ~ -"" ~ ~"i': mllt c: ~ "'''' ~u z u .. ~l g1l l!u Ll. """ 1" li .!!? :E ..,'" .., \. ,!!1 i-- -- c: '" L E- ~ 'E lit 1I>.c:", z"'o:: -0 l! 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Continued - Consideration to hear TIF District No. 1-22 project uodatcs: Of the four pending redevelopment projects within Tlf District No. 1-22. the HRA only has a Preliminary Development Agreement and $5,000 deposit i()f' the Block 52 proposed project. I believe Fred Katter and Steve Johnson will attend the lIRA July meeting. Brad Johnson will be at the meeting representing Barry Pluth's proposed Phase I project. Both Holthaus and Sawatzke were notified ofthe upcoming HRA meeting Jor a status .report of their redevelopment plans. . . ;' i , QUICK TIP 6.0 INVOICE Thank you for ordering Quick TIF 6.0 Tax Increment Finance Reporting Software. BILLING DATE: 6/13/2003 Ollie Koropchak City of Monticello Monticello, MN 55362 ').):, . L\ l. De) \. ~ C) q \ 0-4;1 ~' \...o~~ ITEM COST 1 Copy of Quick TIF 6.0 - Upgrade 225.00 Minnesota State Sales Tax (6.5%) 14.63 TOTAL $ 239.63 Thank you for your prompt payment. Please remit payment to: Ehlers & Associates, Inc. 3060 Centre Pointe Drive Roseville, Minnesota 55113 If you have any questions about this invoice, please contact Nikki McDonald at 651 ~697-8500. O ,ITf:Z <t; [Ei;~.;'ir~f rE:~~.II"-:'I-~l r...----- L:::l 11 I -'---"-'! I! I I J I J UN 1 7 2003, I ! Ii , -, I! J I !I,jl II / ..1--- e EHLERS & ASSOCIATES INC . . . HRA Agenda - 7/02/03 8. Consideration of Executive Director's Report. a) Landmark Square - After the June HRA meeting, the Executive Director reviewed the additional evidcnce for eligibility of parking improvement costs. Total cost of eligible parking improvements was $82,169.88. Fred Patch OK'd the final inspection, the Certificate of Completion was issued and the $75,000 check was picked up by Barry Pluth on June 19, 2003. The TIRA received a letter of credit in the amount of $7,500 for curb/gutter replacement. Secondly, at the time of issuance of the Certificate of Completion, the administrative costs arc tabulated and the difference either billed or reimbursed. The unused balance of the $5,000 deposit is $1,992.00, Mr. Fluth said to hold on the reimbursement and perhaps apply toward the deposit for Phase II. b) .lAC Development, Inc. - As ofJune 24, Chuck Van Heel has not been contacted to execute thc agreements or pay the tax increment deficiency as the legal cost invoices have not been submitted although requested from Kennedy & Graven. c) Drake Court - Thc second $53,000 chcck to the Central Minnesota Housing Partnership remains in file due to the lack of submission of evidence of money in escrow for two property sold. d) Quick TlF 2003 - The 2003 program designed by Ehlers & Associations has arrived. Waiting lc)r intc) from County. Reports due to the Office of the State Auditor hy July 30, 2003. e) Semi-annual TIF payments due August 1, 2003 - The County Auditor's 011ice won't havc the tax increment to the cities until July 7. For TIF District No. 1-22, the [cmr-year knock down rule applies. f) Survey - A survey of development costs was prepared using lJMC as a model and e- mailed to about 20 communities. Land cost and if publicly or privately owned industrial parks were some of the questions. No responses as of yet. g) The mini NW Corridor task fixce will meet on July 10 at 12:30, city hall. The group will evaluate four industrial sites identified in the Comp Plan Land Use Map. I've talked with both Horst Grazer, Gold Nugget, and Steve Lehr, CB Richard Ellis, representing Chadwick's property. h) Working with Business Owner Loch to establish a date for the EDA to make a presentation of cosmetic design and financial package olTer for Hlock 35. Target date July 22. i) Marketing Committee - The group needs to meet. Community Guide and Discover Monticello ads are off and running. Chamber split cost with the addition of their phone and web site address. Opportunities upcoming - Sponsor a hole at the Wright County Partnership Golf Outing in September and advertise on EDAM's web sitc. j) Industrial leads - 30-] 00 acres, 250,000 sq ft to 500,000 sq ft grocery distribution center. 30-50 jobs, $12 to $18 per hour wages. No outdoor storage, not large water user. Lead from State. Out state grocer. 60,000 sq n industrial user looking to relocate from Rogers, Rockford, Hamel area. 10- . HRA Agenda - 7/02/03 12 acres. Lead from real estate broker. 25,000 sq ft Golden Valley electric/plumbing distribution center looking l()r lease space. Outdoor storage. Lead from real estate broker. k) Hans Hagen Homes - Certificate of Completions issued for two homes in the Riverwalk Addition. . . 2 .. r / I CITY OF MONTICELLO ACCOUNTS PAYABLE 505 WALNUT STREET. SUITE 1 MONTICELLO, MN 55362 763-295-2711 DATE 75.1664 ---g;o NO. 73114 II MAROUeTTE BANK - MONTICELLO, PO. BOX 72" MONTICEllO, MINNESOTA 56362 ' (763) 295.2952 CHECK NO, AMOUNT 06/12/2003 SEVENTY FIVE THOUSAND AND 00/100 DOLLARS 73114 $75,000.00 PAY TO THE ORDER OF MASTER'S FIFTH AVENUE, INC 204 LOCUST STR SUITE 209 MONTICELLO MN 55362 r;7:~:,>:';':"':;':)::::";:G'-~'), ":';"~~"~'~:::/'.:.::/D r~ ~._., . ....D,~ ,. "1 . ":.... ..... .""'.~' ,'/..: ,:. ............,...f...;" . . '';L'' u ............... . :' . . ,.... .K-?U' .. . . ,... . .. .. . -, .. '. .. . ,... ". . .L.t. .... ....."..,... r~.... ....:.......-) "' _....=.:...~~_:..._~- . .. . . ~---::.:.~_." .. ................ 1110 7 l ~ ~ L, III I: 0 11 ~ 0 ~ b b L, 71: 7 bOO 0 ~ 7111 VENDOR 002731 MASTER'S FIFTH AVENUE, INC 06/12/2003 CHECK 73114 FUND & ACCODNT p n # TmTnTrR DRSCPIPTION .7\]IiI 0 T.JNT 213.46522.4399 TIF DIST 1-22 LANDMARK PROJECT 75,000.00 TOTAL 75,000.001 . ~~) . '-- CITY OF MONTICEllO. 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" ,.~ ~:v~~::':':,. ,,"..- .<~"'-~. -' :;::.::il.:',:;::;~. .' , " , "" ~'''~". " ,~~,:t~ ',' A; ",tf~}:{.:~~;: ./~ ". ~,. ~--:"'\:,..,. ./1Ir~: ,;J;:11L ' L~USlness DI"ect0T'l' .' \'i. Kesource Guice J S \J ;CUSTOMER INFORMATION - 6/16/03 Ollie Koropchak, City of Monticello, Economic Development Director COMPANY 505 Walnut Street Monticello, MN 55362 ADDRESS Ollie ph.763-295-2711 (direct: 271-3208) CONTACT AD SIZE: Full (be) page PAYMENT DUE: $650* *split w/Chamber Ollie, Please give me a call to OK or make changes. Thanks! . Michele This information sheet may be mailed to: MAJIRSI Advertising & Design 8858 Darrow Ave NE Monticello, MN 55362 o APPROVED FOR PRINTING o OK with corrections ~ Need another proof SIGNATURE Maki!YDur move to Monticello. . . Production Stamping did. Monticello offers: . 1-94 access . Acres af industrial sites ., Talented, educated & energetic warkfarce . A place to' live and grow '. Strang financial incentives Monticello HODsing i. Redevelopment Authority Ollie Koropchak. City of Monticello 763.295.2711 Economic Development Director www.ci.monticello.mn.us . and the. Monticello Chamber of Commerce www.monticellochamber.com 763.295.2700 f/ <:6 i) ~....... fJJ-I-IX'IAdveroliSing l'"U.:ond Design _ .- MICHELE HERTWIG 58 Darrow Ave. NE, Monticello, MN 55362 BILL TO: Ollie Koropchak City of Monticello 505 Walnut Street Monticello, MN 55362 FULL PAGE AD MONTICELLO HRA ($325) a MONTICELLO CHAMBER OF COMMERCE ($325) AMOUNT DUE FROM HRA \ L\ \, SO\ ~ \.{ '7;>q"" \ 0 . 325.00 . Detach and return bottom portion to ensure proper credit to your account. _ $325.00 9;Aanb cyaw MAJIR5! Advertising a Design Michele Hertwig 8858 Darrow Ave NE Monticello, MN 55362 763.295"4393 Billing Date: June 16, 2003 . ... ... .. . -. RE: 1/2 payment for: Full page DM ad . Make Check Payable To: MAJIRS! ADVERTISING & DESIGN 8858 DARROW AVE NE MONTICELLO, MN 55362 Ollie Koropchak City of Monticello 505 Walnut Street Monticello, MN 55362 TERMS: NET 10 DAYS A minimum $5.00 monthly LATE CHARGE will be added to any Balance 1$0.01, 5325.00) 30 or Mare Days Pa"t Due; .015% chorse for balances aver $325.00.