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HRA Agenda 10-05-2005 . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wcdncsday, Octobcr 5, 2005 - 6:00 p.m. Bridge Room - Community Centcr Commissioners: Chair Darrin Lahr, Vice Chair Dan Frie, Steve Andrews, Brad Barger, and Bill Fair. Council Liaison: Wayne Mayer. Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Shumann. Guests: Chuck Van Heel and Mike Van Heel, Allied Properties & Management LLC (APM) Steve Mosberg, Suntide Commercial Realty, Inc. 1. 2. 3. 4. . 5. 6. 7. 8. . Call to Order. Consideration to approve the Septembcr 7, 2005, ,md September 26, 2005, HRA minutes. Consideration of adding or removing items from the agenda. Consideration to hear a concept presentation for potential redevelopment of Block 53 and consideration to approve entering into a Preliminary Development Agreement with APM. Consideration of a notice, update, and discussion relative to the request to re-zone a portion of Otter Creek Crossing from I-I A (Light Industrial) to 1-2 (Heavy Industrial). Consideration to authorize payment of HRA bills. Consideration of HRA Executivc Report. Committce Reports: Marketing riber Optic 9. Next lIRA meeting - Wednesday, November 2,2005. 10. Adjournment. . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 7th, 2005 505 Walnut Street - Bridge Room Commissioners Present: Steve Andrews, Brad Harger, Hill Fair, Darrin Lahr, and Dan Fric Council Liaison Absent: Wayne Mayer Staff Present: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann. 1. Call to Order. Chairman Lahr called the meeting to order at 6:00 PM and declared a quorum. 2. Consideration to approve the August 16th, 2005 special BRA meeting minutes. MOTlON BY COMMlSSIONER BARGER TO APPROVE THE MINUTES or THE SPEClAL HRA MEETlNG or AUGUST 1611\ 2005. MOTION SECONDED BY COMMlSSIONER FAIR. MOTiON CARRIED. MOTiON BY COMMISSIONER BARGER TO APPROVE TlIE MINUTES OF TIIE SPECIAL lIRA MEETING OF AUGUST 29th,2005. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTrON CARRIED 4-1, WlTH FAIR ABSTAlNING DUE TO ABSENCE. 3. Consideration of adding or removing items from the agenda. Koropehak added as other business, the following: a. Preparation and feedback for proposal to interested business b. Update on Rocky Mountain Group, LLC project 4. Consideration to ado t a resolution a., rovin r the elimination of arce\s from TlF District No. 1-22, located within the Central Monticello Redevelopment Proiect No.1 in the City of Monticello. MOTION BY COMMISSIONER FAlR TO ADOPT A RESOLUTION APPROVlNG THE ELIMINATION OF PARCELS FROM TIF DISTRICT NO. HRA Minutes 9/7/2005 . 1-22, LOCATED WlTHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.l IN TlIE CITY OF MONTICELLO. MOTlON SECONDED BY COMMISSIONERANDREWS. MOTION CARRIED UNANlMOUSL Y. 5. Consideration of approve a resolution adopting the modification to the Redevelopment Plan for Central Monticello Redevelopment Proiect No.1 and establishment of Redevelopment TlF District No. 1-35 and its Plan thereto. Koropchak provided the liRA with the condensed version of the inspector's report. Koropchak revicwed the inspector's report briefly, including the conclusion, which is that the proposed TIC District qualifies as a TIF Redevelopment District. The project also qualities under the substandard conditions and coverage test. Koropchak reported that the findings are included for both items, along with narrative for each parcels and photo review. Koropchak statcd that the developer had also submitted a revised copy of the but- for information. Lahr asked if it met requirements. Koropchak commented that it appears that their rate of return on equity went down slightly. . Koropchak stated that the resolution also changed slightly in terms of the language regarding findings. Brad Johnson, developer, discussed the cost to buy, move and rcnovate the home located on the parcel to be removed from the district. Johnson noted the home will bc owner occupied and is bcing purchase by current renters. MOTION BY COMMISSIONER FAIR TO APPROVE A RESOLUTION ADOPTING THE MODIFICATlON TO THE REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND ESTABLISHMENT OF REDEVELOPMENT TlF DISTRICT NO. 1-35 AND ITS PLAN THERETO. MOTION SECONDED BY COMMlSSlONER ANDREWS. MOTION CARRIED UNANIMOUSLY. 6. Consideration to adopt a resolution approving the Contract for Private Redevelo _ mcnt band amon -, Masters 5th A venue Inc. and the IIousin rand Redevelopment Authority in and for the City of Monticello. . Koropchak reviewed the contract rcport, noting the biggest change related to the $20,000 the H RA had previously approved for the purchase of the Koppy garage. 2 HRA Minutes 9/7/2005 . Koropehak noted the resolution had cited the funds as a loan. In fact, the funding approved by the HRA was as an up-front grant from district 1-22. Lahr clarified that it had been changed in the new document. Koropchak confirmed. Koropehak explained that Johnson wanted to discuss the utility pole situation on the site and the options for relocation. Koropchak noted elevations were included ilW reference. Johnson stated that there had been a parking deficiency with Landmark 1. With this project, the developer will be improving the circulation and creating more overall parking. Johnson noted that the restaurant and retail uses will need to work together. In their calculations, about 53 spots arc needed for the site. Johnson stated that they are at slightly less than that. Counting the on-street parking, Johnson indicated they have 61. The original project was short and money was put into parking fund to pay ll)r the deficiency. . Johnson reviewed building plan and indicated that two confirmed tenants are Nexus Financial and .lam 'n Joes. In terms of the utility pole, there are three alternatives for pole. The project architect is working with the issues. Johnson stated that Xcel Energy is backlogged and cannot deal with this issuc currcntly. Johnson indicated that they have budgeted $20,000 to deal with this issue, but it may cost up to $50,000. Johnson indicated that Masters 5th Avenue has a fixed budget with Nelson Development, which requires that anything extra cost comes out of the building. Johnson commented that they don't want to do this; the alternative is to come back to HRA. Koropchak reported that she drove back to view the situation. It is a major site constraint. There is also a pole by the carriage garage next to Locust. Johnson reported that there arc lines that connect to this pole. They will put in a new transformer and that one will be removed. Koropchak reported that this was also a new resolution identifying the $20,000 as grant and notes that the HRA Chair or Executive Director can make minor changes to the contract. Johnson stated that the attorney has no problems with the contract. Koropehak noted the pole cost is not currently included. MOTION BY COMMISSIONER ANDREWS TO ADOPT A RESOLUTION APPROVING THE CONTRACT FOR PRIVATE REDEVELOPMENT BY AND AMONG MASTERS Srll AVENUE, INC. AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO. MOTION SECONDED BY COMMISSIONER BARGER. . 3 BRA Minutes 9/7/2005 . MOTION CARRIED UNANIMOUSLY. 7. Consideration to authorize payment ofHRA bills. MOTION BY COMMISSIONER FAIR TO AUTHORIZE PAYMENT OF HRA BIU ,S. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED UNANIMOUSLY. 8. Consideration of the Executive Director's Report. Koropchak reported that she had written a letter of support for Twin City Die Cast, who will be submitting a grant application for about $250,000 to train 260 employees over 3 years. . Koropchak asked Lahr to provide an update on the potential merger of City organizations. Lahr reported that Wolfstller, O'Neill, Koropchak, HRA attorney and Ehlers representative had been in attendance at the meeting. He stated that Bubul didn't have a formal recommendation as thcre did not appear to be an overwhelming ef1iciency reason tlW one body instcad of two. Lahr noted that there is a diffcrence in that the HRA does not have a Council membcr as a voting member. However, the EDA can own and lease buildings and has loan powcrs. Lahr stated that it came up that the EDA could fold into the Council since the [.;DA only meets quarterly and includes two voting Council members. In that case, the EDA would meet adjaccnt to Council. The HRA would do thc review work and make a recommendation. Lahr stated that O'Neill is to report to personnel committee on this discussion. Koropchak stated that her conclusion was slightly different. Koropchak stated that Bubul had indicated he felt there was a uniqueness about Monticello in that many citizcns want to be involved. She felt that Bubul and Ruff encouraged separate organizations. Koropchak also noted the discussion regarding the IDC and potential audits in non-City related cxpenses. I3ubul had recommended that perhaps the IDC should become advisory to the Chamber or HRA. Lahr stated that it was made clear it was a personal, not legal opinion. 9. Committee Reports: . Koropchak reported that Lynne Dahl had gotten an invoice for the billboard. Bargcr asked it hits have changed since web site moved. Koropchak stated that phone calls have incrcased. Bargcr asked whcre most leads are coming from. 4 HRA Minutes 9/7/2005 . Koropchak reported that she had received 2-3 from the trade show, and the others from billboard or brokers. 10. Other Business A. Preparation and feedback for proposal to interested business Koropchak noted that there had been some questions on how proposals are prepared for potential industrial/business park buyers. In response, she indicated that she will be on a site visit in late September. Koropchak asked for a volunteer to attend. Frie stated he would try to attend. Koropchak had also spoke with Bubul and Ruff, who had recommended not putting any information relative to park fees in the marketing materials, as ordinance does not call for industrial park fees. In terms of the site visit, Koropchak stated that she had initial concerns about the nature of the business in terms of wastewater treatment. Public Works Director John Simola will he attending to assist in that analysis. . Using the information provided, the proposed use is planning on a 20,000 square foot office, production and storage facility. If using liRA criteria, they would be allowed 1.&3 acres of land at a reduced rate. Koropchak reported that the building would have a market value of approximately $1 million, and create 20 full time jobs, which would allow 2.5 acres at $1 per square foot. They have 16 jobs with an average wage of $21.37 without benefit. The user would plan to hire 4 more employees in two years at over $18 per hour. Koropchak stated that they are not asking for a large amount of property. They would pay approximately $&0,000 for 1.83 acres. Koropchak asked whether the lIRA is set on a minimum lot size of 2.5 acres. Koropchak stated that it was her impression that jobs and wages were more important. The BRA Commissioners indicated that they had no problem with not doing 2.5 acres. Barger asked how the user heard about us. Koropchak reported that they had been visiting with other communities and had heard that way. Fair asked how things were going on the park site. Koropchak stated that sand and curbing would be put in this week, with the first layer of asphalt in two weeks. The intersection at 90th and Chelsea would be going through this month. b. Update on Rocky Mountain Group, LtC project . Koropchak noted all contracts are signed and she has authorized the dirt pile to be moved. The closing is scheduled to be on the 20lh of September. 5 HRA Minutes 9/7/2005 . Koropchak gave the H RA members a copy of the changes agreed to after the last contract the HRA reccivcd. Lahr statcd that thc minor changes included changing gcneral grading to iinal grading and allowing the buycr to keep 40,000 cubic yards of sand. Lahr stated that in the end, thc BRA will not spend more than $45,000. Koropchak stated that RulTre-ran TIF cash-flow numbers for the project. The preliminary numbers had a valuation of $64 per square foot and a market value at $3.2 million. Koropchak stated that Rocky Mountain had agreed to the $2.9 million. After increasing the amount of assistance, the assessments were re- calculated, and the tax increment over the lifc is $415,000 at net present value. Koropchak stated that the HRA can hope that thc valuc goes up and that the $440,000 in assistance can bc covered. Koropchak reported that based on today's valuc, the liRA is short in tcrms of dollars. 11. Adjournment MOTION BY COMMISSIONER FRIE TO ADJOURN AT 7:45 PM. MOTION SECONDED BY COMMISSIONER ANDREWS. . MOTION CARRIED UNANIMOUSLY. -,-"'-"_.--,-,_._,_.,_.,-'--'-'~~-_.- Secretary . 6 . . . SPECIAL MEETING MINUTES MONTICI<:LLO HOUSING AND REDEVELOPMENT AUTHORITY Monday, September 26, 2005 - 5:00 p.m. City Hall- 505 Walnut Street Commissioners Present: Vice Chair Dan Fric, Brad Barger, and Bill Fair. Commissioners Absent: Chair Darrin Lahr and Steve Andrews. Council) jaison Present: Wayne Mayer (tardy). Staff Present: Ollie Koropchak. I. Call to Order. Vice Chair Frie called the special HRA meeting to order at 5:00 p.m. declaring a quorum. 2. Consideration to approve enterin2: into a License Agreement between the HRA, the Citv. and Rockv Mtn Group LLC. Koropchak noted the License Agreement grants right-or-entry to Rocky Mtn Group LLC to commence construction prior to conveyance of the property (closing date) described as Lot I, Block 1, Otter Creek Crossing 1 st Addition, and after completion of the liRA grading. The closing date was delayed when the legal description was found inaccurate on the Otter Creek Crossing plat and the annexation order. Instead of "abstract" land, the parcel is "torrens" land. The process takes longer as it goes before a judge and a certificate is issued rather than an updated abstract. It is an anticipated the conveyance of the property will take place on or berore October 14,2005. The License Agreement includes the indemnification of the HRA and certificates of insurance. The City, Rocky Mtn Group LLC, and an intermediary are parties to the Agreement. The building permit is under preparation with plans approved and permit rees collected, the permit issuance date is anticipated for September 27,2005. Koropchak noted the stockpile had been removed by Larson Excavating for a total amount of $25,637.50. She has not heard irthe HRA grading is complete. BILL FAIR MADE A MOTION TO APPROVE ENTERING INTO THE LICENSE ACiREEMENT' BE'rWEEN THE liRA, THE CITY, AND ROCKY MTN GROUP LLC. BRAD BARGER SECONDED '1'1 IE MOTION AND WITH NO FURTIIER DISCUSSION, THL.:: MOTION CARRIED. 3. Other Business: Koropchak noted the next HRA meeting will be Wednesday, October 5, 2005, 6:00 p.m. The commissioners will hear a presentation t(W redevelopment of the old theater block. Barger said he would be out-of-town. . . . HRA Agenda - 10/05/05 4. Consideration to hear a preliminary concept presentation for potential redevelopment of Block 53 and consideration to approve enterinl! into a Preliminary Development A~reement with AMP. A. Reference and backl!round: In December 2004, Jeff O'Neill and Koropchak met with Chuck Van Heel and Mike Van Heel, Allied Properties & Management, and Steve Mosberg, Suntide Commercial Realty to discuss a potential redevelopment project. We have met a number of times since and on occasions the meetings included Steve Grittman, NAC, and Kathy Anderson, an architect. Allied Prope11ies is the current owner of the previously known Wright County Bank Building and parking lot at the corner of Pine and Broadway. The redevelopers have been in contact with all the owners of the block. The redevelopers will make a presentation to the BRA based on a preliminary concept plan discussed with staff. The redeveloper is looking for TIF assistance to fill the financial gap. Our general process for TIF assistance is to accept a concept and enter into a Preliminary Development Agreement with the redeveloper including the deposit of $7,500. I have contacted I J-lB relative to time frame to inspect the structures and to complete a written report for the purpose to satisfy the qualifications ofa redevelopment district. We are on LHB's list for inspections to begin mid-November for a written report to the HRA in January 4, 2006. Upon execution ofthe preliminary agreement, a request for a proposal will be requested from LHB. Ehlers & Associations and Kennedy & Graven have been advised of the proposed project, it is Steve Bubul's suggestion we sit down with the redevelopers to discuss purchase agreement options and potential relocation costs. There are 11 parcels on Block 53, 7 parcels arc occupied by buildings, and all buildings but the old theater are occupied. The redevelopers will make their presentation. B. Alternative Action: 1. A motion to accept the preliminary concept for redevelopment of Block 53 and approve entering into the Preliminary Development Agreement with APM, 2. A motion to accept the preliminary concept for redevelopment of Block 53 and recommend meeting with the HRA consultants prior to entering into a Preliminary Development Agreement. . HRA Agenda - 10/05/05 3. A motion to not accept the preliminary concept for redevelopment of Block 53. 4. A motion to continue further discussions. C. Recommendation: City Administrator and Executive Director recommend Alternative 1,2, or 4 to encourage the proposed redevelopment project move forward. This is a complex redevelopment project flJr the Monticello HRA and City, and the suggestion to meet with the HRA consultants up-front would be beneficial. The question is: Does the liRA want the Preliminary Agreement and deposit prior to expending more dollars. Ehlers has run preliminary TIF estimates for me. D. Supportinl! Data: Aerial of proposed project area, example of a Suntide project, proposed time schedule, and latest staff site review comments. . . 2 . . . . August9,2005 September 5, 2005 September 6, 2005 September 20, 2005 October 4, 2005 October 24, 2005 November 7, 2005 November 22, 2005 . December 6, 2005 January 9, 2005 January 23, 2005 February 1, 2006 February 3, 2006 February 6, 2005 February 6, 2005 February 13, 2006 February 14, 2006 . February 20,2005 Planning & HRA Schedule The Times Redevelopment City of Monticello 1 APM Companies 09/14/05 Pre-Design Meeting. Application for Conditional Use Permit/Planned Unit Development - Concept Stage PUD. Design Advisory Team Review. Application Recommendation Review Meeting. Planning Commission Review of Concept Stage PUD. City Council Review of Concept Stage CUP/PUD. Application for CUP/PUD and Preliminary Plat . Development Stage PUD - Preliminary Plat Application Recommendation Review Meeting. Planning Commission Review of CUP/PUD and Preliminary Plat. City Council Review of CUP/PUD and Preliminary Plat. Deadline for Submission of Const. Docs. HRA requests that the City Council call for a public hearing on the proposed Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No.1 and the proposed establishment of Tax Increment Financing District No. 1-37. Project information (property identification numbers and legal descriptions, detailed project description, maps, but/for statement, list of sources and uses of funds, and estimated fiscal impacts of the project public improvements and on fire and police protection) for drafting necessary documentation sent to Ehlers & Associates. Application for Building Permit. Application for Final Plat. City Council calls for public hearing on the proposed Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and the proposed establishment of Tax Increment Financing District No. 1-37. Ehlers & Associates confirms with the City whether building permits have been issued on the property to be included in TIF District No. 1-37. Draft of Development Agreement/Finance Plan Available . February 28, 2006 March 8, 2006 March 10,2006 March 13,2005 March 15,2005 March 16,2005 March 24, 2006 March 30, 2006 April 4, 2006 . April 5, 2006 April 10, 2006 June 30, 2006 ........,- 2 Letter received by County Commissioner giving notice of potential redevelopment tax increment financing district (at least 30 days prior to publication of public hearing notice.) [Ehlers & Associates will fax and mail on February 27, 2006.J provides report on redevelopment qualifications. Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers & Associates will fax & mail on March 9 or 10, 2006.] City Council Review of Final Plat/DA. Execution of DAlFinal Plat Signatures. Pre-Construction Meeting. Ehlers & Associates conducts internal review of Plans. Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Monticello Times publication deadline, March 27, 2006 - Ehlers & Associates to submit notice and map to newspaper via email on March 24, 2006.] Planning Commission reviews Plans. HRA considers the Plans and adopts a resolution approving the Plans. City Council holds public hearing at 7:00 P.M. on a Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and the establishment of Tax Increment Financing District No. 1-37 and passes resolution approving the Plans. [Ehlers & Associates to email Council packet information to the City on March 31, 2006.] Ehlers & Associates files Plans with the MN Department of Revenue and the Office of the State Auditor, and requests certification of the TIF District with Wright County. Angela Shumann Subject: Jeff O'Neill Wednesday, September 28, 2005 1 :33 PM Steven Mosborg (E-mail) Ollie Koropchak; Steve Grittman (E-mail); Bret Weiss (E-mail); John Simola; Angela Shumann; Clint Herbst (E-mail) The Times .From: ent: To: Cc: Steve Just a quick note on topics you asked me to follow-up on. Regarding utilities in River Street The presence of the utilities should not impact or constrain parking design. However, It is likely that a the sanitary sewer system in the vicinity will need to be replaced with the project which is OK because we were planning on reconstruction of the line at some point in the near future. Regarding parking on River Street Staff recently reviewed the concept of developing head-in parking along both sides of River Street between Cedar and HEY 25 and was in general support of the concept as long as it is designed well including sidewalk on the park side and retaining wall/landscaping if needed. Please note however that our Public Works Director was not present at the meeting when this topic was discussed. Out of respect for his opinion, I would like to delay final staff input on that topic until we get a chance to review it with him. Regarding Parking. Steve Grittman analyzed the parking demand/supply and found that the site is significantly underparked even without a restaurant He will be putting together a summary outlining his analysis for me which I will forward to you It appeared to us that the best option for solving this problem is through construction of a larger underground parking facility that would house both residential and business operation relation parking. We recognize that this adds cost to the project but it might be necessary given the size of the project Purchase of the Garden Center was not considered to be great option for relieving the parking problem though it might eventually be considered giving the . potential cost of additional underground parking We think that the Underground parking will add more value to the overall . facility then development of a nearby overflow parking lot Your thoughts? Last of all. The site concept layout looked fine except for concerns regarding Bank drive-thru stacking spilling onto Broadway, the width of the drive through exit access to Cedar Street and close proximity to the corner of Cedar/Broadway.. Jeff . 1 . . . HRA Agenda - 10/05/05 5. Consideration of notice. update, and discussion relative to request to re-zone a portion of Otter Creek Crossin!! from I-IA (Lieht Industrial) to 1-2 (Heavv Industrial). A. Reference and back!!round: The Chief Zoning Official has requested a public hearing for consideration to re-zone an industrial property from 1-1 A (Light Industrial) to 1-2 (Ileavy Industry). The location under consideration is a portion of Outlot B, Otter Creek Crossing, City of Monticello, with final property lines to be determined. The Planning Commission will hold the public hearing on Tuesday, October 4,2005,6:00 p.m. and the City Council will consider the item on Monday, October 10,2005, 7:00 p.m. Attached is the public hearing notice, map, and a copy of Chapter 16, "1-2" Heavy Industrial District, Monticello Zoning Ordinance, stating its purpose. Also attached is a Monticello Long Range Land Use Map noting the Rl and RI-A Land Use directly to the south and southwest, the Open Space (YMCA) Land Use directly to the west of the proposed re-zone, and the futurc boundary lines of the City of Monticello. The Council did authorize the City Attorney to ofTer a site within the 120-acre Otter Creek Crossing property under Contract for Deed as part of the A VR eminent domain package. There has heen no response from A VR of interest in the Otter Creek site. The suggested approximate 12-acre parcel is locatedi n the southwest corner of the 120-acre site. Ilere are some planning questions for the Planning Commission to answer: 1. Is the long-range planning for the City of Monticello, progressive or regressive planning? 2. I-Ias the City of Monticello not learned that a Heavy Industrial Zone abutting a Single- family Residential Zone is non-compatible, non-productive and poor planning? 3. Does the City of Monticello base planning decisions on reactions to immediate situation (short-term planning) or actions of economic benefit (long-term planning)? TI-IE HRA CONTRIBUTED ONE-HALF OF TIlE DOLLARS FOR 'fIlE ACQUIRED 35- ACRES, RECORDED COVENANTS, ESTABLISHED A CRITERIA FOR JOB/W AGE- I,I::VELS AND NUMBER OF ACRES, AND HAS AN OVERALL INTEREST IN THE DEVELOPMENT OF TIIE BUSINESS CENTER; therefore, the liRA may have an interest in the proposed IT-zone to 1-2 (Heavy Industrial) at the Planning Commission puhlic hearing, Tuesday, October 4, 2005, 6:00 p.m. . . . NOTICE OF PUBLIC MEETING Notice is hereby given that a public meeting will be held by the City of Monticello Planning Commission on October 4th. 2005 at 6:00 D.m.. in the Monticello City BalI to consider the following matter: PUBLIC MEETING: Consideration of request to rezone an industrial property from j_ lA (Light Industrial) to 1-2 (Heavy Industrial). LOCATION: That portion of Outlot B, Otter Creek Crossings, City of Monticello, with. final property lines to be detennined. APPLICANT: City of Monticello Fred Patch, Chief Zoning Official Written and oral testimony will be accepted on above subjects, and all persons desiring to be heard on referenced subjects will be heard at this meeting. Note: Decisions of the Planning Commission will be suq,ject to the approval or denial of the City Council and will be considered on Monday, October 10th, 2005 at 7 p.m., at the Monticello City Hall. CROSSING ~ ~ ~ =,......~r... y ~~~~t!;,;~~~'~' I 1/2 MI L~.._ f' ~ '.-" RLI<-K...._W.LI<l. ~,...EEr i or .I 'I1En~ '\ SITE /) ~ I (\ ' \ \ . ) I / ..-~. ,j . "/ ~" ~ . . . CHAPTER 16 "1<2" III~;\ Vy INDUSTRI;\L DISTRICT SeCTION: 16-1 : Purpose 16-2: Permitted Uses 1 ()-~: Permitted .I\ccl'ssnn' I fsl's 16-4: Conditional Uses 16~5: Interim IJses 16-1: PURPOSE: The purpose of the "1-2," heavy industrial, district is to provide for the establishment of heavy industrial and manufacturing development and use which because of the nature of the product or character of activity requires isolation from residential or commercial use. 16-2: PERMITlI::O USES: The follovving are permitted uses in an "1~2" district: [A) Any use permitted in the "I-I." iight industrial. district. [BI The manubcturing, compounding, assembly, packaging, treatment, or storage of products or materials including: Bre\veries. cement. stone cutting, brick. glass, batteries (\vet ceii). ceramic procucts, mill \vorking. metal polishing and platting, paint (pigment mfg.). vinegar v\orks, rubber products, plastics, meat packing. nour. feed grain milling. milling. coal or tar asphalt distillation. rendering \yorks, distillation of bones. savvmilL lime, gypsum. pIaster of paris. glue. size. cloth. and similar uses. [Cj Automobile asselnbly and major repair. [D] Creamery and bottling plant. rEI Adult Use/Principal. (#217,1/13/92) [F] Foundry. 16-3: ACCESSORY LJSES: [AI Pennittcd I\ccessory Uses: The following arc pennitted accessory uses in an "[-2" district: I. i\lllll'rmittcd accessory uses allowed in an I-I (light Industrial) district. ivlONTICtLLO ZONING ORDIN.\NC'E 16/1 ......-..-...........,...---.--.....-.....-.-.-....,.. . =i' ..-., ..-., Ol ..... ..... '" I I J:: ~ ~ -g (ii (ii -C ~ ~ :g 0 ca ca -0 OJ OJ :t:: ca <.:: -0 -0 ~ .lo:: ~ :::J '00 '00 OJ m 0 OJ CI) :?:- '" <( (Q a::: n:: '00 :::> CL -C U J:: :?:- :?:- c: OJ OJ ~ ~ OJ OJ m E 0 '00 '00 0 X 'u 0 ca c'5 c c: E ~ Q; I Q. m (j CI) OJ (J) 'C 0 0 :::J C E ~ c: ~ en c: :: ~ is ca E :.0 OJ :::J :::J ca OJ -'J 0 0 a. 'S -0 -'J ..3 '- :s ...J :E :::> () :E 0 LL -5 "'-l z+~ a:: () () ') lit / -') :I','~, ( \',:: \ ,''::' ',i ..' - '- (), I ~ ~ . ~ ~ ~ c~ ~~ tj~ ~~ ~S ~ ~~ ~ -() <.) \').. \ ~r' \ 0 Ub\~ c- 1, cY r\ 'I ,I ~ 1[' I'G I ..J /i :; (A :!:--------- Q.i a.. " Of'. . 1\ I') \ . ECONOMIC IMPACT OF RE-ZONED 12 ACRE SITE Assumptions from meetiU1! of December 2. 2004 with Attornev .Jerry Duffv. Desire twelve acres $2.5-$3. million investmcnt 20 jobs (5 in office and 15 drivers)at $43 plh with benefits. 150 trunks daily (cement,belli, etc.) 6 days a week, 6:00 a.m. to 7:00 p.m., sometimes longer. 3 to 4 silos, approximate 80 ft high. Proposed Proiect 20jobs Wages $30 p/h wlo bcnefits Value = 20 x 2080 x $30 \0 $1,248,000 annually Preferred Measures 96 jobs required $16. ph wlo benefits minimum average Value = 96 x 2080 x $16 = $3,194,880 annually Annual loss in wages = $1,946,880 ~uilding size? = 12 acres Value of investment $3 million Estimated assessed market valuc, $1,500,000 , - Estimated Local Tax = $32,970* Estimated State Tax = $14,953 Estimated Market Tax = $ 816 TOTAL ANNUAL TAX= $48,739 130,680 sq ft building minimum - 12 acres Assessed market value of building, $6,534,000 Estimated Local Tax = Estimated State Tax = Estimated Market Tax = TOTAL ANNUAL TAX= $158,658* $ 66,294 $ 3,554 $228,506 Annual loss in assessed market value = $5,334,000 * Annual estimated loss in local taxes = $125,688 Current Site Taxes - 2 1.8344 acres Land value - $469,100 B uildi ng value - $ I 61 ,900 Total Local Tax = $15,844* Cost To Acquire City Property Land (ZiJ $2.65 per square foot = $1,385,208 .ncludes trunk fees @ 2004 fee of $11,331 per acre 'co $135,972 IMPACT ON 12-ACRES OF RE-ZONE TO 1-2 (Heavy Industrial) . Annual loss in wages - $1,946,880 x 15 years = $29,203,200 Annual loss in local taxes - $125,688 x15 years = $1,885,020 Value of improved land and trunk fees, 12 acres - $1,385,208 TIF District No. 1-34 to reduce high cost to acquire - $5,394,581 over 15 years. Not to mention impact to surrounding area. . . -\~y f\)o \ c?J( , .V~ \ _ '?J L\ APPENDIX A PROJECT DESCRIPTION The City of Monticello is coordinating a large public improvement project which involves the State of Minnesota, Wright County, and private parties in the constmction of a new freeway interchange with 1-94. As a part of the estimated $16,000,000 project, the City is responsible for acquiring key pieces of property for right-of.way purposes. The City's estimated share of the project is over $6,000,000, but could be much higher. The reason for the increased costs would be for an unknown payment for land on a piece of property for which the Ci ty has commenced condemnation and has also commenced annexation proceedings. TIF will assist in covering a portion of the City's cost and to minimize the impact of a higher than expected payment for land associated with the public improvements. Without the interchange and right-of-way acquisition, development in the TIF district of similar size and scope would not occur. Development of the area would take longer and would not be expected to result in a market value as high as expected with the new commercial in the TIT District and commercial and industrial development adjacent to the interchange. Because the property to be included in the District contain buildings which meet the qualifications ofTIF' with substandard and inefficient buildings and land uses, the timeframe for improving the area would also be extended substantially. The property to be included in the TIF includes the parcel under condemnation and a portion of the new development, limited to the Target store and adjacent retail of approximately 35,000 s.f. Therefore, a substantial public benefit will be realized immediately from the City's efforts from new development. . The private developers will be responsible for their own land acquisition and are being assessed or traded for land at over $5 AM. . APPENDIX A-I . Invoice Wright County 10 2nd Street NW Buffalo Mn 55313 Phone: Fax: E-mail: URL: 763 682 7588 763 682 7873 INVOICE NO 1 INVOICE DATE 09/26/2005 OUR ORDER NO, CUSTOMER ORDER NO. TERMS SALES REP. SHIPPED VIA F,O.B. PREPAID/COLLECT SOLD TO: City of Monticello SHIPPED TO: QUANTITY 1 UNIT DESCRIPTION Plat set up fee Otter Creek Crossing 1 st Add 155 171 002010 213141 002010 UNIT PRICE AMOUNT $75.00 SUBTOTAL TAX $75.00 . FREIGHT TOTAL $75.00 Questions concerning this Invoice? Call: Mary Palmquist 763682 7588 MAKE ALL CHECKS PAYABLE TO: Wright County Auditor Treasurer . L\~ S "~~ , ,.~-\ \ c( Ct .')\ ~ . C'. ..' ". ~' \\' \ 0....., \' ,\'.. <~3 tL .. " . ~-!~;). '.r' LU"\. ...:'::.J . 'f\9- _ '. ' _ .,,~ \(7 \~\- \ " C\ ~:y r:\ C (\ .--. U l_-'--:~ r I'} ! '\ . ~~P-21-2005 16:11 P.02/02 '\ 1- \;- \ - ?:,~+ .0 sio(jj~'t. ---;. Qv_ '0 CLA.. ~~.4IVn60~h S L \ e~, \ \ .><....J '" ' ~-:2.. ( I' f I.?:,'?J lrJ , l/:~ 1 C( .J- l ',-) '( \,p 1 . Jp/ c-' .~ ~ 0 -- :::::> CJ -~'-r" \ v)- "'" 2255 12th S1. SE Sf. Cloud, MN 56304~9705 Bus: (320) 654..()709 Fax: (320) 654-102' City of Monticello Re: Chelsea Road Moving of Black Dirt Below is a recap for moving black dirt stockpiled south of Chelsea Road to new site. Dirt was mOved under the direction of WSB. Total Estimated Cost $27,300.00 Actucal Cost . September 6. 2005 3 - 627 Scrapers 6.0 hours 1 ~ OaR DOler 3.0 hours September 7.2005 3 - 627 Scrapers 33.0, hours 1 ~ OaR Dozer 13.5 hours September 10,2005 3 . 627 Scrapers 38.0 hours 1 - OSR Dozer 13.0 hours September 12. 2005 4 . 627 Scrapers 8.0 hours 1 - OaR Dozer 2.0 hours September 15, 2005 4 . 627 Scrapers 24.0 hours 1 - OaR Dozer 6.0 hours Total Scraper Hours Total Dozer Hours 109 Hrs @$175.00 37.5 Hrs @ 175.00 Grand Total $19,075.00 $6.562.50 $25,637.50 . An EquBf Opponuf/ity employer TOTRL P.02 . . . .. '. . . , , ........ ..... ..:i , ~" Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697.8500 Summary Statement Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello. MN 55362-8822 Statement Date: September 13, 2005 Proiect v-ou. Ii"" General _ Heritage Development ~ TIF District No. 1.36 - Economic Development \-l.1?-~ Total for this statement Amou nt $62.50 $481 .25 $2,250.00 $2,793.75 C"1 o.SU ~ ~ \. <:;. \""" Invoice # 331310 331311 331312 . . . .. .. , . .. .. ... .. Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe QriVe Roseville, MN 55113 (651) 697.8500 . Invoice Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello. MN 55362-8822 Invoice #: Invoice Date: 331310 September 13, 2005 Project: General Date Worked lh'... Description of Services Hours Amount 08-03.2005 MTR Industrial park discussions with Steve Bubul --2Q .50 62.50 '"J:7 \ C\. C\ "-\ \,./'? e\ ' ')., \ "Q , G-'''~_..._._n___._..__..".._,..._-_.__._----_......_.]. Amount Due This Invoice $62.50 ~~,.,-"--~-_.,~-"'--''''-'',..,--,."._...__._''''_...__. (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority Invoice #: 331310 Invoice Date: September 13, 2005 IA~~~~.t D-;eThis_I~~Oi~~~-=--~~-=-== $6~~5U [.. PI~aseremit payment to ~~~e~~~:~~::~~~~~:--- -Due Upon Receipt -- ] 3060 Centre POinte Drive Roseville, MN 55113 - -- -- - -- - --- ------- --~-- - - -- --~ ,--"~ --- ---- --- -- --~- . . . e Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697w8500 Invoice NA-"~~I~R~e~ 505 Walnut Street, Suite 1 Monticello, MN 55362~8822 Invoice #: Invoice Date: 331311 September 13, 2005 Project: Heritage Development Date Worked lh'... Description of Services Hours Amount 08~01~2005 TJH Attended Meeting: Attended Meeting with City Staff and Engineer on Financing Options. Consult with MR. Telephone Jeff O'Neil. 2.75 481.25 2.75 ~"---'"'.'-"'----_._'''--''--'-'-''--''-_.''--J... Amount Due This Invoice $481.25 _._.__.."-"~_.~--"'-""_.,,--"'-_.,._..,-_.._,._-~..---,- (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority Invoice #: 331311 Invoice Date: September 13, 2005 [A'mo_~nt Due T~iSI~voi~e '-=====~481..._25-'-] I" --~-.- - --,,- --- - - ---- - --- -- --- '---- --- - -] Please remit payment to: Ehlers & Associates, Inc. Attn: Accounts Receivable Due Upon Receipt 3060 Centre Pointe Drive Roseville, MN 55113 ------ ------~----~ ------ --"---~-- ------ ---------_w_~__ . ..................................' . . ". ,< Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697-8500 Invoice Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 Invoice #: Invoice Date: 331312 September 13, 2005 Project: TIF District No. 1-36 - Economic Development Date Worked Jh. Description of Services 08-22-2005 MTR Flat Fee: Establishment of TIF District No. 1-36 '? \<\ Cl\ c~ '?J \() \.4..\j Hours Amount 2,250.00 [--A-mo~nt DLI~ This In~~i~e =~_ $2:250-~OOJ .Y)-\~' . ~,- .07 ~' L\- C\ r \ (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority I~A;~unt Du!..,.his In~~'i~~ Please remit payment to: Ehlers & Associates, Inc. Attn: Accounts Receivable 3060 Centre Pointe Drive Roseville, MN 55113 Invoice #: Invoice Date: Due Upon Receipt 331312 September 13, 2005 --~~"-'-~;'-~~-l $2,25~ . lHB, Inc. 21 West Superior Street, Suite 500 Duluth, MN 55802 Phone: 218-727-8446 C I"J.... \ q 0 'l--\ \; c;/3..:7 i J \ 1 g.\'D C7 '" o 'lJ..-.-- -,/ q ro \L\ - eJ /-- City of Monticello Attn: Olive Koropchak 505 Walnut Street Suite #1 Monticello, MN 55362 September 13, 2005 Project No: 050341.10 Invoice No: 0000001 Project 050341.10 Monticello TIF District 1-351~pecti~ Hourly Not to Exceed $5,400.00 plus Reimbursable Expenses Professl.Qmt1 Services from AUQust 1. 2005 to Auaust 31. 2005, Professional Personnel Hours Rate Amount Principal Fischer, Michael 3.00 171.00 513.00 Putnam, Jerry 9.50 105.00 997.50 Administration Kurki, Terza 1.00 61.00 61.00 . Totals 13.50 1,571.50 T otallabor 1,571.50 Reimbursable Expenses Mailings/Deliveries Total Reimbursables 60.08 60.08 60.08 Unit Billing In-House Printing - Mpls Total Units 90.0 Copies @ 0.15 13.50 13.50 13.50 Total this Invoice $1,645.08 Billings to Date Current Prior Total Labor 1,571.50 0.00 1,571.50 Expense 60.08 0.00 60.08 Unit 13.50 0.00 13.50 Totals 1,645.08 0.00 1,645.08 . Approved By: ~~. . LHB, Inc. 21 West Superior Street, Suite 500 Duluth, MN 55802 Phone: 218-727~8446 REMITTANCE r- --, \I...:.illlo I Il-"..-.vL.: City of Monticello Attn: Olive Koropchak 505 Walnut Street Suite #1 Monticello, MN 55362 September 13, 2005 Project No: 050341.10 Invoice No: 0000001 Project 050341.10 Monticello TIF District 1-35 Inspection Hourly Not to Exceed $5,400.00 plus Reimbursable Expenses Professional Services from AUClust 1. 2005 to AUClust 31. 2005 Professional Personnel Hours Rate Amount Principal Fischer, Michael 3.00 171.00 513.00 Putnam, Jerry 9.50 105.00 997.50 Administration Kurki, Terza 1.00 61.00 61.00 . Totals 13.50 1,571.50 Total Labor 1,571.50 Reimbursable Expenses Mailings/Deliveries Total Reimbursables 60.08 60.08 60.08 Unit Billing In-House Printing - Mpls Total Units 90.0 Copies @ 0.15 13.50 13.50 13.50 Total this Invoice $1,645.08 Billings to Date Current Prior Total Labor 1,571.50 0.00 1,571.50 Expense 60.08 0.00 60.08 Unit 13.50 0.00 13.50 Totals 1,645.08 0.00 1,645.08 . ApprovedBy MM1~' . 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 Tax ID No. 41-1225694 August31,2005 Throuah Julv 31. 2005 MN190-00101 General HRA Matters MN190w00115 Landmark Square (Commercial Development) MN 190-00119 TIF District 1-34 (Interchange Project) MN190-00121 Economic Development TIF (Dahlheimer Distributing) . I declare, under penalty of law, that this account, claim or demand is just d correct and that n of it has been pa" /'"V_ ~ ~''\l''''-..l~' \ . OK TO P,AY? O\\,~ , Code: Initial ~ -....-.,."......_..".......................-_,'~...<"'"-, ~,')~,..o~S 45.00 126.00 45.00 685.00 Total Current Billing: 901.00 :"~~:-1~"-~....--...~--_._,..,-_.~ IE', If:" 1 i' ;~,:, : ,,",_'m._'" ".- '1111 \ '1 , ' , 1 c' ""'r)r' ". J ! I ~ E' ~., I~' il}\:.l -~:j' \: . '~"- I """" --- "--''''''''''''.'-;-:''', I '. ,:.' . .j, t\l .r.}'l \ 1\ n II ' , 1 '.: 1.", ~_, ~'_'" ............. !.~.," ,~..,~~.,..~_.,-,_.",',~ ,..'...,'". ,.,"-,.,---,-~ .,.-~~.^---~~.. . . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337w9300 41.1225694 August31,2005 Invoice # 67716 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 MN190-00101 General HRA Matters '7 c"L.\ 0 - .~() \ I L\ l; ,. ~\3. ~, Through July 31,2005 For All Legal Services As Follows: 7/1/2005 SJS Email from/to O. Koropchak re: appraisals; research data practice questions Total Services: <:'" P ,') <b rO ,~ q .' Hours 0.25 Amount 45.00 $ 45.00 Total Services and Disbursements:$ 45.00 . . . Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 .,' '"?:> 0 "l <D ~\~ <:?~0c-J \ ". <.' 'd \'~ ~ <i> ,~/"7' ~ --- C\"'? City of Monticello July 31, 2005 MN 190-00 115 Landmark Square (Commercial Development) Through July 31,2005 For All Legal Services As Follows: 7/25/2005 SJS Review Pope proposal for substandard study; Phone call with Koropchak regarding same. 7/26/2005 SJS Phone conference with G. Konpela regarding Pope substandard study. SJS Emails with O. Koropchak. Total Services: 7/29/2005 Hours 0.25 0,20 0,25 $ Total Services and Disbursements:$ Amount 45.00 36.00 45,00 126.00 126.00 . . . Page: 3 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello ?oLlV ~;7 '" . C!..7~L\\ l..\L,~ ~. ~. '-J..- Q.... July 31,2005 '?-\~. MN190-00119 TIF District 1-34 (Interchange Project) Through July 31,2005 For All Legal Services As Follows: 7/20/2005 SJB Phone with O. Koropchak re: July 25 hearing, resolution Total Services: Hours 0.25 $ Amount 45.00 45.00 Total Services and Disbursements:$ 45.00 Through July 31, 2005 For All Legal Services As Follows: 7/6/2005 . SJB Phone with O. Koropchak re: transaction; phone with p, ~~",. Zisla re: same 7/7/2005 SJB Revise PDA per Zisla email; phone with 0, Koropchak re: same . City of Monticello July 31, 2005 MN190-00121 7/11/2005 7/12/2005 . 7/12/2005 7/14/2005 7/18/2005 7/19/2005 7/20/2005 . Page: 4 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis~ MN 55402 ''1 V L{ ~ S v::> \.0 ./~t. c 'J,\'?J. '07 I C\ .- "'). ~ ' Economic Development TIF (Dahlheimer Distributing) Hours 0.75 Amount 135.00 0.75 135.00 SJB SJB Phone with O. Koropcha~:.I~tr~~..l Emails re: 1031 exchange; revise f!DA; research 1031 mechanics 0.20 1.00 36.00 180.00 CHT Conference with S Bubul re role of qualified intermediary in 0.20 37.00 1031 exchange SJB Review Ehlers schedule 0.20 36.00 SJB Phone with O. Koropchak re: schedule; review of TIF doc 0.25 45.00 for Ehlers SJB Phone message from/to P. Zisla re: TIF school 0.20 36.00 SJB Phone with Zisla, Koropchak re: new schedule 0.25 45.00 Total Services: $ 685.00 Total Services and Disbursements:$ 685.00 . . . HRA Agenda - 10/05/05 7. Executive Director's Report. a) Landmark Square ll- HRA Contract amended to read: As a condition of the Authority approving the provision of A vai lable Tax Increment to the Developer to assist in defraying the Land Acquisition Costs, the three residential properties on the Development Property shall not be relocated to any site within the city. Parking requirements satisfied by "Proof of Parking" and additionally there was a miscalculation of parking stalls. b) Rocky Mtn Group LLC (Dahlheimer) - Due to an incorrect legal description on the annexation order and the re-plat, the property is treated as "torrens" land. This caused a delay in recording of the plat and the closing date. In order to allow the developer to begin construction prior to closing, a Liccnse Agreement was executed. I believe all documents are signed, plans approved, and fees collected for issuance of a building permit on September 27, 2005. Closing or conveyance of property is anticipated on or before Octobcr 14, 2005. c) Twin City Die Castings - TCDC 1St. Cloud Tcchnical College arc applying to the Minnesota Job Skills Partnership for an approximate $250,000 Training Grant. The grant would be used to support advanced automated manuhlcturing training for the 260 Monticello and Minneapolis employces. The training would take place at the Monticello facility over an expanded time period. ADDITIONALLY - It is my understanding TCDC applied for a variance for a 5,000 sq. ft. metal accessory structure. After denial of the variance and a meeting with city staf:t~ it was rcported TCDC agreed to expand their existing 36,000 sq ft: facility. At the Outdoor Storage meeting, a TCDC representative rcported an expansion to thc existing building was not economical and they may look to leasc space in Buffalo. In speaking to the owner, Doug Harmon, thereafter, TCDC plans to and has approval to construct outdoor storage: concrete slab, fcncing and l,mdscaping. TCDC contributed $100 cash prize for the Rotary Golf Outing. d) Manufacturer of lood bases, sauces, and seasonings - Paul Kleinwachter, John Simola, and Koropchak visited this company locatcd in Dayton on Septembcr 21. Thc 1956 family-owned business is looking to construct a 20,000 sq It facility on approximately 2-acres spring 2006. With no adverse impact to the Waste Water Treatment Plant, a proposal and cover Icttcr was mailed to the company. Paul, thanks for your nice letter. Total of twenty full-time permanent jobs at an average wage-level of at least $20.70 ph without benefits. Sixteen jobs out of the MN facility. Received email and now have begun to work with their contractor. e) Attended the ribbon cutting for Pinnacle financial, Thomas Circle, September 16. Dragon Fly Open House and Loch's Retirement Celebration on September 22. Electro Industries' Open I-Iousc, September 28. t) UMC $290,000 Minnesota Investment Fund Loan final report to be submitted, see job report. Mortgage Subordination Agreements executed by City and EDA for refinancing TCF loans. g) Tapper's Ilolding Company - Expected to close on the GMEr Loan of $200,000 mid- October for the Emundson building expansion. . HRA Agenda - 10/05/05 h) Soon to close on a Transformation Home L,oan. i) Piber Optic Task Force will begin to devclop a request for proposal (RFP) on Septembcr 29 and will continue meeting until completion of final draft. lor consideration hy Council on Novembcr 14th. j) Lettcr from Office of State Auditors regarding questions on the 2003/2004 nF reports. Must respond by mid-October, most irrclevant questions. See attached. k) Survey by League of Minnesota Cities - Compiling data from communities who have used cminent domain for purpose other than public improvements. (I IRA-O'Connor parcel in 2001). 1) Follow-ups - 200,000 sq ft manufacturer - United Properties (no response) Great River Energy Headquarter Building - Looking for 60 acres. Elk River offered 60 acres for $1 but not interested. New President wants Maple Grove area fl.)!" image purpose. 30,000 sq ft machine shop (gave offer/not intcrested) I'm OK with this. 60,000 sq ft builder of dump bodies, grain bodies, and trunk hoists. Respondcd with first preliminary information and talked via phone. Needs outdoor storage. m) Blue Chip Development - Harger 25,000 sq 11. expansion. . . 2 ,,2) September 7, 2005 MONTICELLO Board of Directors Minnesota Job Skills Partnership 1 sl National Bank Building 332 Minnesota Street, Suite E 200 St. Paul, MN 55101-1351 Dcar Mcmbers of the Board, On behalf of the City of Monticello, I would like to request your full support [or the St. Cloud Technical Collegc/Twin City Die Castings Company grant application to support Advanced Automated Manufacturing training for the Monticello and Minneapolis employees. . It is important to provide the tcchnical and process improvement training needed by current and cxpected employces to enhance the company's ability to cxpand and compcte in a worldwide busincss market. S1. Cloud Technical Collcge is well positioncd to assist these efforts in helping to maintain Twin City Dic Castings Company as a strong and viable Minnesota manufacture and employcr. I urge your favorable consideration of this application. Plcase feel free to contact me at 763-271- 3208, if I can providc further information. Sinccrely, CITY OF MONTICELLO a~ \S<<f' u ,_:~) /---~ '\ ,. ............~/,.~.-~ Ollie Koropchak Economic Development Director c: Mayor Clint Hcrbst File . Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404 Office of Public.: Works, 909 Golf Course Rd., Monticello, MN 55362 · (763) 295-3170 . Fax: (763) 271-3272 (i,) ~ c--j rHE L./\hID SF)E.CIAI._ISTS() July 29,2005 Mr. Jeff O'Neill City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362-8831 RE: Metal Building Variance For: Twin City Die Casting, Inc. Lot 1, Block 1, Monticello Commerce Center Fourth Addition, Monticello, Minnesota Dear Jeff: . On behalf of Monticello Industrial Park, Inc., we strongly oppose a variance that would allow the construction of a metal exterior building or addition on subject property. Not only would it violate the zoning provisions of 1-1A, it would violate the character of the existing Twin City Die Casting building and the exceptional quality of the UMC building. Monticello Industrial Park, Inc. owns the vacant lot contiguous to the west boundary of subject property. Any metal exterior building will impact on the salability of that property. In addition, there will be, in the near future, significant development across the street from subject property between Chelsea Road and 1-94 that will be impacted also. Very truly yours, ~ Charles C. Pfeffer, Jr. cc: Angela Schumann Shawn Weinand . I'!i:/fi'r COIll!!any, Inc, noo !/"lIllo"k /,ane. Suile 101 . Maplc (Jmve. IV/IV 553M-5587 703.4.?5,.?'J30. F'i.Y 703.475.J823 . d,/li'l',,()(a!aol.t'I)I/! . WWH'p/ij/<"'('II.I'()/)/ www/'hel,(lIld,)f!<'<.'/al/sls,CO/ll * ai' t ~ X f }J j J) - ~~ 0- C'l . . "'--. ~^ o WWOOOOOOO~~~~~~~~~~~~~~~~~~~~~~OD~~~~~~~ 5" 5" 3; 3; 3; 3; 3; 3; 3i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ffi ffi lfl, lO lfl. 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"'W~!i~r~1_'9"'0; .~":-'-"'-- -'iW",~ ......: '. ._r..i-- : '0" -r ..z. ~;....~7' - ....7i~r: 01..)(,;;-:-Si~"s'''' IIJ:l:I.rmD(L STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR '\-~ PATRICIA ANDERSON STATE AUDITOR SUITE SOO 525 PARK STREET SAINT PAUL, MN 55103-2139 (Ci51) 296-2551 (Voice) (651) 296-4755 (Fax) slate.auditor@state.mn.us (E"Mail) 1-800-627-3529 (Relay Service) TIF Direct Dial: (65I) 296-4716 TIF Fax: (651) 282-5298 September 21,2005 Rick Wolfsteller, Administrator City of Monticello 505 Walnut Street, Suite I Monticello, MN 55362 Dear Mr. W olfsteller: . I reviewed the TIF plans ofthe city's active TIF districts to determine whether the TIF-plan budgets agree with the budget amounts reported by the city on the 2003/2004 TIF reports. I am required to do this review on all TIF authorities assigned to me in order to avoid or minimize potential future problems. A summary of my review is shown below. I also did a cursory review of the final TIF reports filed for decertified TIF districts. In general, I did not notice any major problems with these TIF reports. Accurately Reported TIF-Plan Budgets Based on my review of original and modified TIF plans of the city's active TIF districts, I believe the city reported accurate TIF -plan budgets for the following TIF districts. Thank you for your accurate reporting. TIF District No. 1-2 TIF District No. 1-5-see below TIF District No. 1-6-see below TIF District No. 1-13 TIF District No. 1-15 TIF District No. 1-17 TIF District No. 1-19 TIF District No. 1-20 TIF District No. 1-21 TIF District No. 1-22-see below TIF District No. 1-25 TIF District No. 1-29 TIF District No. 1-30 TIF District No. 1-31-see below . ~ R~cycl~J pap~r with a minimum of D<:" 15% P()st-consum~r wast~ An Equal Opportunity Employer . . ;> ~ o? ~.~.. TIF District No. 1-5 The city reported a cumulative modified TIF plan budget that agrees with the sum of the original budget, and the January 22, 1996 and June 24, 1996 common budget modifications. Please explain, with page references, how the city arrived at the $4,365,000 cumulative tax increment amount reported on line 74, column B, of the 2004 TIF report. Is this amount a "plug" figure? Based on a review of current and previous TIF reports, it appears that tax increment from this TIP district has been spent in accordance with the original TIF plan. It also appears, however, that no tax increment has been spent in accordance with the common budget modifications, and that the city is simply accumulating tax increment. Please explain whether any tax increment from this TIF district has been spent in accordance with the 1996 common budget modifications, what the city intends to do with the $500,000 cash/fund balance, whether the city intends to decertify this district early, and what the city's future intentions are for tax increment generated from this TIF district. TIF District No. 1-6 On page 3 of the 2004 TIP report, the city reported a cumulative modified expenditure budget totalof$I,437,150. That amount includes a large amount for bond interest expense. On pages 3, 4, and 5 of the TIF report, the city reported $172,183 of cash on hand and $70,000 of outstanding debt. Accordingly, the city has enough cash to pay the remaining costs authorized by the TIF plan for this TIP district. Please explain why this TIF district is not decertified, and why the excess increment has not been returned to the county auditor. TIF District No. 1-22 Page 23-5 of the TIF plan states that up to $39,000,000 of bonds maybe issued. On the 2003 and 2004 TIF reports, the city did not report any budgeted amounts for bond proceeds, bond principal or bond interest payments. The city did report, however, that bonds were issued. If the city chooses not to report the $39,000,000 budgeted amount, it should at least report budgeted amounts up to the actual amount of bonds issued. This will keep a knowledgeable reader of the TIF reports from believing that the city issued bonds in violation of the TIF Act. /) On the 2003 TIP report, the city reported $2,150,000 of bonds issued and outstanding. On the 2004 TIP report, the city reported $2,150,000 of bond principal payments, $945,000 of bond proceeds, and that no refunding bonds were issued. Is this information accurate? TIFDistrictNo.I-31 The $395,000 pay-as-you-go obligations should have been reported on lines 74 through 80 of the 2004 TIF report. Other Active TIF Districts . It appears that the TIP-plan budgets may have been inaccurately reported on the TIF reports filed for the following TIF districts: . ~c~ 'i.:~'7 ",,60 V ~ . ~ . TIF District No. 1-14 Based on the information previously provided, I cannot calculate a revenue buaget for this TIF district. Please provide a TIF plan that shows budgeted tax increment amounts, and that authorizes the issuance of bonds to finance project costs. TIF District No. 1-23 Page 24-6 of the TIF plan shows a revenue budget that totals $1,105,000, but includes $1,000,000 oftax increment, $5,000 of interest and $100,000 oflocal contributions. The 2003/2004 TIF reports show $1,105,000 of tax increment. TIF District No. lw24 Page 25-5 of the TIF plan shows a revenue budget. If the city reports this information on future TIF reports, a balanced budget will be reported. TIF District No. lw26 I cannot locate a TIF plan for this TIF district. If possible, please provide one. TIF District No. 1-28 Page 2-6 ofthe TIP plan shows a balanced budget. I believe the $115,000 land/building acquisition amount shown on the 2004 TIF report should be $35,000. Other Information The city decertified many TIP districts in calendar year 2004, and/or the remaining cash/fund balances of many TIF districts was returned to the county auditor in calendar year 2004. Please explain why no 2004 interest income was reported for these TIP districts on the 2004 TIF reports. Please provide the requested information by October 15,2005. If you have any questions or concerns, please don't hesitate to call me at 651-297-3680. Thank you for your cooperation. ~)j)~ Kurt Mueller-Tax Increment Financing Division . . "',"i f~.\1 CTT ;"J'}t:{... ,S,S~\\) IT () l:;<~'c'.'" ,(> ~,,:,.~.,-","",-,.;<~ 6";" ./~~~~ ~~.~~:~'9't.~' ~~!): ,l~i~~,~ ~<I~~\ !,~. ,~,,>. ',1'.1 . ''I. '"" j'~.::/:!:,;~, ',,~A..~i:\ '-'r. ::::il',,", -~,2:, z-' r,i-:--, ',_ .:.,~~ :_':l '0' ,,~';I\- I,,<_-"_':~': .~t \(: :.. ~ - -' " '\~-:?:;7'Z~.:/~i~ "',';", #,-- , --, ','it,,",' - '0,,"-" \-",~. ~ '""",:,"",",,, "\.~~..;'.. :~. \:\#i:.. '{{:-lrt, ,~:~ y,<~/ "I,'j.'",~J' .... ." -:-." .,>,.. .v>" '---.:.....:..:..;; ~" s> ,ji.(//;,'u;- ;:;;~~. 'Lf! ~~\;~'..\'" Septcm h(~r 2005 Tax fucrement Financing Division Newsletter · WitltllOldinf: rd'Tax Increment For Failure to File 2004 Reports · Excess Increment Calculation and TIF Plan Mod(fication · Tip From Authority Recent~)l Audited Withholding of Tax Increment For Failure to File 2004 Reports The deadline for submitting 2004 TIF reports was August I, 2005. The TI F Division mailed letters to the mayor and council members of those cities that still had not submitted their reports by August 151h The letter advised those cities that, if their rep0l1s are not received by November 15, we are required by state law to mail written notice directing thcir county auditor to withhold distribution of tax increment. We wish to thank the 95% of authorities that have now submitted their 2004 TIF reports. We encourage the 5% that have not yet filed to callus if you need assistance. We will announce in our October Newsletter the names of those cities whose reports we have not received by October I st. l<~x.ccss Increment Calculation and TIF Plan Modification An excess increrilent calculation must be done as of December 31 st of l:al:h year. This determination is based on TIF plans and modifications in place as of Dccember 31 st of the year for which the calculation is done. I I' a modi lication to a 'TI F plan budget is reasonable and necessary pursuant to that TI r district's individual circumstances, now is the tirne to initiate the modification process (modification must be approved on or before December 3 1st). 'fhe authority must spend or return the excess increment, pursuant to TIF Act constraints, within nine months after the end of the year. Tip From Authoritv Recently Audited While a TIF audit is in progress, the existence of such audit and its elements are confidential and the State Auditor's Office cannot disclose any of its elements to third parties. An audited TIF authority however, may disclose details regarding the audit to any third parties_ Recently, an authority being audited invited their county attorney into their deliberations before an audit was complete and the findings were made publ ic. The authority discovered that by apprising the county attorney of the issues at an early stage of the audit, the relationship between the city and the county was less adversarial. Alter the State Auditor issued its linal non-compliance tindings, county legal action and a speedy settlement agreement between the city and the county was possible, resulting is less negative mlxlia exposure. Tom Carlson 65 I - 2 8-1- 3 5 -IJ n/(~/!li!.S. M. ( '( !!:L\(!II'U,lcl:!Jl_i~~c!!.!!.!.c.!!.:'- Kurt Mueller (i5 I -297-](i8() 0.!JtL_Muy[/r'/'(ils/i/le, /l/!L.lJ'i ' Lisa McGuire 65/- ]')(,-1)] 5 5 Lh'.!!JV'(;lli!:((!L!i!.!/L<:',W/IIIS ~I.Fou l/(fve any ijuestions please contaef u.\'.' .\'u/\ Shah 65/- 296-7f}(} I Silk SlwllitCcYLIJ!CUlIll/:'i Marsha Pattison 65 I -296--/7 I (i Mi.!L0l/1LL'!!!Ji,I'OI!.iI,.\'IUlc,J[l1111:'i A lex Shlei/itum 65 I - 2 9 7- 8 3 -!2/l!ex., 'l'IIi eijlll! 1IL:~I,:)I(ll!'JI/1l liS JSINESS JOURNAL I twincities.bizjournals.com - September 16, 2005 Developers reveal drivers, . deterrents in city selection . I . )U the at Ita BY ELLEN P. GABLER STAFF WRITER Waiting for slow city approvals gives devel- opers fits. So do inconsistent regulations, stubborn city staffers and excessive fees, according to a survey completed recently by some of the Twin Cities' top real estate developers. The Minnesota chapter of the National Association of Industrial and Office Properties (NAJOP) this week released results of its 11rst sur- vey of developers, asking them what they think about working with local municipalities. NAlOP Minnesota selected 2/} of its 820 members to participate. The survey charted developers' general opinions, not their take on working with specitic cities, Developers ranked the following factors in order of importance when deciding on which city to focus their efforts: 1. Cost of development 2.The city's attitudes toward developers and development 3. Business subsidies II. Pre-construction scheduling and the pro" cessing time involved. Among development costs, developers are most irked by overly irrelevant local municipal fees, especially special charges not associated with their project such as park-dedication fees. Developers said good relationships with city staffers (md a willingness to work together are helpful; one respondcnt noted that developers often choose "the path of least resist,mce." Developers said they favored cities that kept business subsidies in mind and offered speedy and fair navigation through plmll1ing phases. Larry Lee, community development direc- tor for Bloomington, said he has seen nation- al studies such as this, but none done locally. Bloomington has "excellent turnaround" and good working relationships with develop- ers, Lee said, adding that the city can't make everyone happy all the time. "From time to time, we have to say 'No,' or more likely, 'Can you modify your plan to do it this way?' That causes heartburn sometimes, but it's part of our job of representing public interest." Developers responding to the survey on average had morc than lO years of commcr- dal-development experience. They work for firms that have been in business bctwecn lO and 20 years and average $43 million in new development each year. Respondents develop a variety of project types: 88 percent industri- al. 76 percent oft1ce, 68 percent retail and 48 percent mixed"lIse. WHERE'S THE ACTION? egabler@bizjoumals.com I (612) 288-2106 15 Where 24 NAIOP developers say they are most active (within the past two years): ,(; 12 '(11 I.! '; \., i ill Ii I \ 1.'.1"'. it H; In Lj ~ !I! HI ;II iJ...l'.~lO o. L1:J If) +' C 9 <1J -0 C o 0. If) 6 <1J L 4 t3 ~ '"<'''< 1 3 Mnple Grove Minllcnpolis fJlulIInillutlJll Brnoklyn Park Eagall ROlJers Ruseville Shakopee Where they plan to develop in the next two years: 6 - If) +' C <1J -0 C 3 0 0. If) <1J L 0 "l"'''l II' ll'..l..! 1. j. .. ~."j , 3 ... .~ .' I ,~t<~ Erlcn Prairie Lino I.,lkcs Monticello Snvaue / Minneapolis Blaine Brooklyn Park Blnurnington Eden Prairie Maple Grove EalJan Plymouth Monticello Rogers St. Paul Roseville Shakopee St. Michael Savage Woodbury SQurce: 2005 Developer Survey, eomp'ett~d by tho MirmC~3ota chapter ot f\IA1QP; the complete report i~; ~lVailabl~ online at www.naiopn1l1.ory.