HRA Agenda 02-15-2005
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AGENDA
MONTICELLO HOUSING ANI> REDEVELOPMENT AUTHORITY
Tuesday, February 15,2005 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, Brad Barger, and Steve
Andrews.
Council Liaison:
Staff:
I.
2.
3.
4.
5.
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6.
Wayne Mayer.
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Call to Order.
Consideration to approve the February 2,2005 1 IRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Tahled - Consideration to approve a resolution adopting a modification to thc Redevelopment
Plan for Central Monticello Redevelopment Project No.1 and establishing TIF District No. 1-
33 therein and adopting a TIF Plan therefor.
Continued - Public Hearing and consideration to approve, the Business Subsidy Agreement, a
provision of the Contract for Private Development among the HRA, Tapper's Holdings LLC,
and Strategic Equipment and Supply Corporation, and to adopt an Authorizing Resolution
approving the Contract for Private Redevelopment with Tapper's Holdings LLC and awarding
the sale of, and providing the form, terms, covenants and directions for the issuance of its
$ Tax Increment Revenue Note, Series 2005.
7. Consideration to authorize payment of HRA bills.
8. Consideration of Executive Director's Report.
9. Committee Reports.
a) Marketing Committee - Lahr and Barger.
10. Other Business.
a) Consideration to cancel the March 2, 2005 HRA meeting with the next regular meeting,
April 6,2005 (annual meeting).
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11.
Adjournment.
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HRA Agenda - 02/15/05
5.
Tabled - Consideration to approve a resolution adootimr the modification to the
Redevelopment Plan for Central Monticello Redevelopment Proieet No.1: and
establishin~ TIF District No. 1-33 therein and adoptine- the TIF Plan therefor.
A. Reference and backe-round:
At the January 17,2005, the HRA approved entering into a Preliminary Development
Agreement with the 'rappers and authorized the financial and legal consultants begin preparation
ofTIF District No. 1-33, an Economic District. A public hearing feJr establishment ofTIF
District No. 1-33 has been called fix February 28,2005, by the City Council. The TIF Plan
was distributed to the taxing jurisdictions on January 28, 2005, for compliance with the 30-day
notice to comment. On February 1, 2005, the Planning Commission is scheduled to approve a
TIF resolution finding the project consistent with the Comprehensive Plan. Attorney Steve
Buhul, Kennedy & Graven, has prepared a draft copy the Contract for Private Development
for review. City Staff is scheduled to meet with Grady Kinghorn, Kinghorn Associates, for a
pre-construction consultation on Fehruary 11 or 14.
The company's construction financing is through Stearns Bank, St. Cloud, and the EDA IS
scheduled to consider a real estate development loan on February 10, 2005.
The district is being established to assist with site improvement costs associated with the
construction of a 25,000 sq ft addition to an existing 60,000 sq ft facility located at 1324
Edmondson Avenue NE. The parcel is located within Oakwood Industrial Park and is zoned
1-2 (1leavy Industrial.) The expansion plus a portion of the existing space will be leased to
Strategic Equipment and Supply Corporation who has committed to the creation of 40 full-time
johs.
The attached resolution describes the findings for establishment of the TIF District, please
reVIew.
B. Alternative Action:
I. A motion to approve the resolution adopting the modfication to the Redevelopment
Plan for Central Monticello Redevelopment Project No.1; and estahlishing TIF District
No. 1-33 therein and adopting the TIF Plan therefor.
2. A motion to deny approval of the resolution ..........
3. A motion to table any action.
HRA Agenda - 02115/05
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C. Recommendation:
The City Administrator and Executive Director recommendation is alternative no. 1.
D. SUPDortin1! Data:
Copy of resolution for adoption, excerpts ofthe TIF Plan, and jobs and wage levels.
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MONTlCELLO HOUSING AND RF:OEVELOPMKNT AUTHORITY
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. I
AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1~33
THEREIN AND ADOPTING A' TAX INCREMENT FINANCING PLAN
THERF:FOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Monticello Housing and Redevelopment Authority (the "HRA") and the City of Monticello (the "City")
that the HRA adopt a Modification to the Redevelopment Plan for Central Monticello Redevelopment
Project No. I (the "Redevelopment Plan Modification") and establish Tax Increment Financing District
No. I ~33 and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan
Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in
conformity with applicable la\v, including Minnesota Statutes, Sections 469.00 I to 469.047, and Sections
469.174 to 469.1799, inclusive, as amended (the "Act"), all as retlected in the Plans and presented for the
Board's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the Plans to
be prepared; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the
adoption of the Plans. The I-I RA has also requested the City Planning Commission to provide for review
of and written comment on the Plans ancl that the Council schedule a public hearing on the Plans upon
published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
I. The HRA hereby tinds that 'fax Increment Financing District No. 1-33 is in the public
interest and is an "cconomic development district" under Minnesota Statutes, Section 469.174, Subd. 12,
and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need
to develop an area of the State of Minnesota which is already built up and that the adoption of the
proposed Plans will help provide employment opportunities in the State and in the preservation and
enhancement of the tax base of the City and the State because it will discourage commerce and industry
from moving their operations to another state or municipality and thereby serves a public purpose.
2. The HRA further finds that the Plans will afford maximum opportunity, consistent with
the sound needs for thc City as a whole, far the dcvelopment or redeveloprllcnt of thc project area by
private enterprise in that the intent is to prov ide on Iy that pu bl ic assistance necessary to make the pri vate
developments financially feasible.
3.
expanded.
The boundaries ot' Central Monticello Redevelopmcnt Project No. I are not being
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4. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as prescnted to the HRA on this datc, are hereby approvcd, established and adopted
and shall be placed on tile in the ofllce ofthe Executive Director ot'the HRA.
5. Upon approval of the Plans by the City COLlllcil, the staff, the lIRA's advisors and legal
counsel are authoriLed and directed to proceed with the implementation of the Plans and for this purpose
to negotiate, draft, preparc and prcsent to this Board fbr its consicleration all further plans, resolutions,
documents and contracts necessary for this purpose. Approval of the Plans docs not constitute approval
of any project or a Development Agreement with any developer.
6. Upon approval of the Plans by the City Council, the Executive Director of the HRA is
authori7.ed and directed to forward a copy ot'the Plans to the Minncsota Department of Revenue pursuant
to Minnesota Statutes 469.175, Subc!. 4a.
7. The Executive Director of the HRA is authorized ancl clirected to forward a copy of the
Plans to the Wright COLlnty Auditor and rcquest that the Wright County Auditor certify the original tax
capacity of the Distriet as described in the Plans, all in accordance with Minnesota Statutes 469.177.
Approved by the Boarcl of Conllllissioners of the Monticello Housing and Redevelopment
Authority this 151h day of February, 2005.
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Chair
ATTEST:
Secretary
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EHLERS
& ASSOCIATES INC
To:
Ollie Koropchak, City ofMonticel1o
Mark Ruff
February 10, 2005
But For Analysis for TIF District 1-33
From:
Date:
Subject:
We have reviewed the building owner's pro fom1a from January, 2005 which demonstrates
the effect ofrenting a portion of the existing ll- Window building and constructing an
additional 25,000 s.f. for a new tenant. It is our understanding that the tenant will be renting
40,000 total s.t'. of office/warehouse for $5 per s.f. of building. The rental rate does not
include the property taxes, which means that the owner is responsible for the costs.
According to the building owner's pro forma, even with the assistancc thc project will be a
negative cash flow for at least 5 years because of the cost of debt, the costs of the existing
building, and the cost of taxes for the building.
Wc havc surveycd other cities with similar size and proximity to the metro area. It is our
understanding that market rents for this type of developmcnt arc approximately $5 to $6 per
s.l'. as a triple net lease (in which the tenant pays all of the taxes and operating expenses).
Attached is an analysis which shows a simplified view ofthe assistance for the expansion
only. If we assume that the project would be estimated to cost $1,479,365 (including land
value) and a loan for 20 years were at 80% of value, the required equity would be $295,873.
Assuming that the rental rate were $5 triple net, the return on equity would be 2% without
TlF and 8% with TIF.
Generally, the analysis shows that the cost of the building is higher than the area rents can
support. The choice for the lIRA is to provide some level of assistance for the project now
or to wait until the market rents catch up to the cost of building a new building.
We certainly recognize the building owners difficulty in renting the remaining 15,000 s.l'. of
the existing building and it should be a factor in the HRA's decision on assistance.
However, these circumstances are not typically included in a standard "but for" analysis for
a TlF assistance package.
LEADERS IN PUBLIC FINANCE
k
3060 Centre Pointe Drive
Roseville, MN 55113-1105
Phone: 651-697-8505 Fax: 651-697-8555
mark@ehlers-inc.com
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It is our recommendation that the tenn of assistance is tied to the tenn ofthe lease. If the
lease were to be shorten cd and the rental rates raiscd, it would follow that the HRA should
have an opportunity to review the need for TlF at that time.
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New Building 1-33 TIF But For Analysis
s.f.
Building Cost
Land Cost
Total Cost
Mortgage
Equity
Rent:
Income
Broker/Misc.
Debt
Return on Equity
Annual TIF
Return on Equity
25,000
1,300,000
179,365
1,479,365
52 per s.f.
2.1 acres at $2/s.f.
1,183,492
295,873
5 per s.f. triple net (without taxes or maint.)
125,000
-13,500
-104,864 per year for 20 year loan at 6.2%
6,636
2% without TIF
17000
8% with TIF
STEARNS BANK
3202539503
02/06 '05 23:02 NO.400 02/02
~s~~~=
We Get the Job Done!
4191 2nd st. S. . St. Cloud, MN 56301 . www.steorns..bank.com
320-253-6607 or l.aOO-S20~n62 . Fax: 320~253-3051 . Member FDIC.
._TJII'Dl,,,,,,.1:=l~,,I,:C"~'
February 7~ 2005
Ms. Ollie Koropchak
City ofMonticeUo
505 Walnut 5t.
Monticello, MN 55362
RE: Tapper's Holdings, LLC
Dear Ms. Koropchak:
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This letter is to inform you that Steams Bank considers the proposed TJF Financing and
City Loan an integral part of the financing for the proposed expansion ofthe building
owned by Tapper's Holdings, LLC, located at 1324 Oakwood Drive E, Monticello, MN.
Steams Bank does not consider the proj eet viable without the proposed TIF Financing
and City Loan.
Please feel free to contact me at 320-202-6132 with any questions.
a--'- ?
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Steve Domine
Senior Vice President
SMDlke
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Steorf)$ 60nk ~oe<;rt1on;; AIhony, MN · Edina. MN · Evansville. MN · HoIdIng1'ord, MN . sr. OOtId. MN . Upsola. MN . ScQffodole. IV.
Ehlers & Associates, Inc.
Tax Increment Financing District Overview
City of Monticello - Tax Increment Financing District No. 1-33
The following summary contains an overview of the basic elements of the Tax Increment Financing Plan
for TIF District No, 1-33. More detailed information on each of these topics can be found in the complete
TIF Plan.
Proposed action:
Redcvelopment Project:
Type of TIF District:
Parcel Number:
Proposed Development:
Maximum duration:
Esti mated annua I tax
increment:
Proposed uses:
Form of financing:
Administrative fee:
Interfund Loan Requirement:
Establishment of Tax Increment Financing District No, 1 ~33 (District)
and the adoption of a Tax Increment Financing Plan (TIF Plan).
Adoption of a Redevelopment Plan Modification for the Ccntral
Monticello Redevelopment Project No. J. (The Modification is to
include the project activities anticipated in the District.)
An economic development district
1 55-0 1 8~002120
The District is being created to facilitatc construction of a 25,000 s.f.
addition to the existing approximate 60,000 s.f industrial building for
Strategic Equipment & Supply Corporation.
The duration of the District will be 8 years from the date of receipt of
the first increment (9 years of increment). The date of receipt of the
first tax increment will be approximately 2007. Thus, it is estimated
that the District, including any modifications of the TIF Plan for
subsequent phases or other changes, would term inate after 2015, or
when the TIF Plan is satisfied.
Up to $18,299
The TIF Plan contains a budget that authorizes the maximum amount
that may be expended:
Site Improvements/Preparation ........................................ $102,700
Interest................................................................................ $40,000
Administrative Costs (up to 10%)........................................$7,300
TOTAL PROJECT COSTS ..........................................$150.000
See Subsection 2-10, page 2-5 of the TIF Plan for the full budget
authorization, Additional uses of funds are authorized which include
inter-fund loans and transfers and bonded indebtedness.
Financing will be primarily through a pay-as-you-go note.
Up to 10<0, of annual increment, if costs are justified.
If the City wants to pay for administrative expenditures from a tax
incremcnt fund, it is recommended that a resolution authorizing a loan
from another fund must be passed PRIOR to the issuance of the check,
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TlF District Overview
3 Year Activity Rule
(\\'469.176 Subd. 10)
At least one of the following activities must take place in the District
within 3 years from the date of cel1ification:
· Bonds have been issued
· The authority has acquired property within the district
· The authority has constructed or caused to be constructed
public improvements within the district
· The estimated date whereby this activity must take place is
February, 2008.
After four years from the date of certification of the District one of the
following activities must have been commenced on each parcel in the
District:
· Demol ition
· Rehabilitation
· Renovation
· Other site preparation (not including utility servIces such as
sewer and water)
· If the activity has not been started by the approximately
February, 2009, no additional tax increment may be taken from
that parcel until the commencement of a qualifying activity.
Within 5 years of certification revenues derived from tax increments
must be expended or obligated to be expended. Tax increments are
considered to have been expended on an activity within the District if
one of the following occurs:
· The revenues are actually paid to a third party with respect to
the activity
· Bonds, the proceeds of which must be lIsed to finance the
activity, are issued and sold to a third party, the revenues are
spent to repay the bonds, and the proceeds of the bonds either
are reasonably expected to be spent before the end of the later
of (i) the five year period, or (i i) a reasonable temporary period
within the meaning of the use ofthat term under S. ]48(c)(l) of
the Internal Revenue Code, or are deposited in a reasonably
required reserve or replacement fund
· Binding contracts with a third party are entered into for
performance of the activity and the revenues are spent under
the contractual obligation
· Costs with respect to the activity are paid and the revenues are
spent to reimburse for payment of the costs, including interest
on unreimbursed costs.
Any obligations in the Tax Increment District made after
approximately February, 20] 0, will not be eligible for repayment from
tax increments.
4 Year Activity Rule
(\\' 469.176 Subd 6)
5 Year Rule
(\\' 469.1763 Subd 3)
The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as
required pursuant to M,)'., Section 469.175, S'ubd. 3, are included in Exhibit A of the City Council
Adopting Resolution.
Page 2
TIF District Overview
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BOUNDARY MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND TAX INCREMENT FINANCING DISTRICT NO. ] -33
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Page 3
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DEVELOPMENT SERVICES
Economic Development Director
Phon.::
Fax;
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(763) 27/...3208
(763) 295.-4404. .
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CITY OF MONTICELLO, MINNESOTA
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Monticello City HaU, 505 Wllinut Street, Suite], Monticc:llo, MN' 55362-8831 . (763) 295-2711 . Fax: (763) 29$-4404,l/' '. . ,~, ':. ;-
Offi~ of Public Wod:;;, 909 Golf Course R.d., Monticello, MN 55362. (7631 295-"I17r>. I;__. t"7~." ~A. ---- TDTRL P. 02
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H RA Agenda - 02/10/05
6.
Continued - Public Hearin~ and consideration to approve. the Business Subsidv
Ae:reement. a provision of the Contract for Private Redevelopment between the HRA.
Tapper's Holdine:s LLC and Stratel!ic Eauipment and Supply Corporation.
Consideration to adopt an Authorizine: Resolution approvinl! Contract for Private
Redevelopment with Tapver's Holdinl!s LLC and awardinl! the sale of. and vroviding
the form. terms. covenants and directions for the issuance of its Tax Increment
Revenue Note.
A. Reference and baekl!round:
CONTINUED PUBLIC HEARING - BUSINESS SUBSIDY
The public hearing was opened on February 2,2005, and continued to February 15,2005, for
the purpose to clarify the "but for" analysis prepared by Mark Ruff, Ehlers & Associates.
Per Minnesota Statutory, prior to granting a business subsidy that exceeds $100,000 for a local
government grantor, the grantor must provide public notice and hold a hearing on the subsidy.
The law outlincs eight elcments that must be included in thc business subsidy agrecment plus job
and wage level goals. Said public hearing notice appeared in the Monticello Times on January
20, 2005.
The TIF Cash Flow Estimates by Ehlers using a 6.2% interest rate over eight years generated
$98,515 Net Present Value. Based on the project construction cost estimates and proposed
rental rates prepared by Bill Tapper, the project appeared very tight. Eligible TIF expenditurcs
outweigh the tax increment generated and the project will result in 40 new jobs Je)r the City of
Monticello.
See Section 3.4" page 9-11, Business Subsidy Agreement, Contract for Private
Redevelopment.
AUTHORIZING RESOLUTION AND CONTRACT FOR PRIVATE
REDEVELOPMENT
CONTRACT IS BEING REDRAFTED AND WILL BE AVAILABLE AT THE
FEBRUARY 15 MEETING. THIS BASED ON EHLER'S ~~BUT FOR" ANALYSIS.
The Contract f,)r Private Redevelopment outlines the terms and conditions of the TIF assistance
and the obligations of all parties to the Contract. The Contract was drafted by Steve Bubul and
.
HRA Agenda - 02/1 0/05
Julie Eddington, Kennedy & (i-ravcn, and a copy has been provided to the Redeveloper.
Generally, the Contract is executed or agreed upon between the parties, prior to the City
Council approving the establishment of the TIF District. Per the Contract, the lIRA shall issue
and the Redeveloper shall purchase a Note in the principal amount of $ for
site improvement costs. The Note shall be delivered upon the Redeveloper having submitted to
the Authority written evidence that the Redeveloper has incurred and paid the costs of the site
improvements in at least the principal amount of the Note. The Note shall bear an interest rate
of 6.2% per annum unti I the earlier of maturity or prepayment. Principal and interest payments
shall be made solely from "Available Tax Increment", semi-annually, by the Authority to the
Owner of the Note commencing August 1,2007, through February 1, 2015. The Redeveloper
agrees to construct a 25,000 sq ft addition to an existing 60,000 sq ft warehouse/office facility
located in the Oakwood Industrial Park. Job and wage level goals created by the Tenant are
outlined in the Business Subsidy Agreement within the Contract. The construction of the
minimum improvements shall commence by July 30, 2005, with completion by December 31,
2005. The Council will be asked to approve the Business Subsidy Agreement within the
Contract on February 28, 2005.
The Authorizing Resolution approves the Contract Ji)r Private Redevelopment and its execution
and delegates the Executive Director to determine the date the Note is delivered.
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The Redeveloper must provide a copy of the lease agreemcnt, evidcnce of construction
financing, evidence for "but for" test, proof of insurances, and approved construction plans
prior to issuance of the building permit.
Please close the public hearing.
B. Alternative Action:
1. A motion to approve, the Business Subsidy Agreement, a provision of the Contract for
Private Development between the HRA, Tapper's Holdings LLC, and Strategic
Equipment and Supply Corporation.
A motion to adopt an Authorizing Resolution approving the Contract f()r Private
Rcdevelopment with Tapper's Holdings LLC and awarding the sale of, and providing
the form, terms, covenants and directions for the issuance of its $ Tax
Increment Revenue Note, Series 2005.
2.
A motion to deny approval of the Business Subsidy Agreement and the Contract for
Private Redevelopment..
.
2
.
HRA Agenda - 02/10/05
"
_J.
Amotion to table any aetion.
c.
Recommendation:
The City Administrator and Executive Director recommend Alternative No.1 and suggest a
level of TIF assistance consistent with the "but for" analysis.
D. SUllportilll:! Data.
Public hearing notice, Contract, resolution, TIF cash flows, eligible TIF cost estimates, Ehler's
"but for" analysis, and letter from Stearns Bank.
.
.
3
(161.164) and therefore requireS a pUOIIC nearing.
Written and oral comments will be considered at the meeting.
-Rick Wolfsteller, City Administrator
(Jan. 13, 20.2004)
.
RESOLUTION NO. 2005-1
APPROVING SUMMARY PUBLICATION OF
, ORDINANCE NO. 419 AND ORDINANCE NO. 420
WHEREAS, the City Council for the City of Monticello, Minnesota adopted a
lengthy ordinance titled the "Cable Ordinance" establishing regulations governing
cable service; and
WHEREAS. the City Council has adopted a lengthy ordinance granting a 15-year
cable franchise to CC VIII Operating LLC d/b/a} Charter Communications authoriz-
ing operation of a cabie system and delivery of cable services in the City pursuant
to the Cable Ordinance; and
WHEREAS, as authorized by Minnesota Statutes, Section 412.191, subd. 4, the
City council has determined that publication of the title and summary of-the ordi-
nances will clearly inform the public of the intent and effect of the ordinances; and
WHEREAS, a printed copy of both ordinances is available for inspection during
regular office hours in the office of the city clerk-administrator.
NOW THEREFORE, BE IT RESOLVED that the following summaries of the ordi-
nances are approved for publication: . .
CITY OF MONTICELLO, MINNESOTA
ORDINANCE NO. 419
The Cable Ordinance establishes certain regulations governing the delivery of
cable service in the City to ensure that all cable providers are subject to compara-
ble obligations and burdens. The Cable Ordinance generally sets forth the condi-
tions for the delivery of cable service and requirements for cable franchises under
Minnesota Statutes, Chapter 238. The ordinance is effective the day. after publica-
tion.
I
s
lr
lat
lrs
CITY OF MONTICELLO, MINNESOTA
ORDINANCE NO. 420
The Charter franchise ordinance grants a 15-year cable television franchise to
CC VIII Operating LLC d/b/a} Charter communications authorizing operation of a
cable system and delivery of cable services in the City pursuant to the Cable
Ordinance. The franchise ordinance authorizes Charter to use rights-of-way in the
City to construct, operate and maintain a system to provide cable services, impos-
es a franchise fee, and sets forth certain other agreements concerning operation of
the system and delivery ot cable services. The franchise ordinance is effective upon
acceptance by Charger.
By Order ofthe City of Monticello, Minnesota"
-Clint Herbst, Mayor '
-Rick Wolfsteller, City Administrator
(Jan. 20, 2005)
ct-
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NOTICE OF PUBLIC HEARING
CITY OF MONTICELLO. MINNESOTA .
NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority in
and for the City of Monticello, Minnesota, will hold a public hearing on Wednesday,
February 2, 2005, 6:00 p.m. in the Bridge Room, 505 Walnut Street, Monticello,
Minnesota, regarding a proposed business subsidy to be granted by the Housing
and Redevelopment Authority in and for the City of Monticello, Minnesota, to William
R. and Barbara R. Tapper and Strategic Equipment and Supply Corporation (the
"Recipients") under Minnesota Statutes! SectiOfls..l1.6J.993. toJ 16J.994. The pro-
posed subsidy involves a tax increment finance pay-as-you-go note to assist with
demolition and site improvement costs as part of the expansion of an existing man-
ufacturing facility by the Recipients in the City.
Information about the proposed business subsidy and a summary of the busi-
ness subsidy agreement are available tor inspection at City Hall during regular busi-
ness hours.
All interested persons may appear and 'be heard orally and in writing.
-Ollie Koropchak, Housing & Redevelopment Authority Executive Director
(January 20, 2005)
J that
Imers
Iduct-
Idress
a P.O.
siness
e iegal
litional
55369.
I that I
rjury as
a under
NOTICE OF PUBLIC HEARING
Notice is hereby given that a publiC hearing will be held by the City of
Monticello Planning commission on February 1 st, 2005 at 6:00 p,m., in the
Monticello City Hall to consider the following matter:
PUBLIC HEARING: Consideration of a request for an amendment to
Conditional Use Permit for Development Stage Planned Unit Development and
consideration of a revised Preliminary Plat for Carlisle Village, a 242 unit residen-
tial subdivision.
LOCATION: Plat of Carlisle Village, Monticello
APPLICANT: Shadow Creek Corporation
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 subject to the approval or
denial of the City Council and will be considered on Monday, February 28th, 2004
at 7 p.m., at the Monticello City Hall.
-Fred Patch, Chief Zoning Official
(Jan. 20, 27, 2005)
Inticello
::ityHall
lrmit for
I garage
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of Monticello
Planning commission on February 1st, 2005 at 6:00 p.m., in the Monticello City Hall
to consider the following matter:
PUBLIC HEARING: Consideration of a request for an amendment to the
Monticello Zoning Ordinance regarding the replacement of billboard signage.
LOCATION: City of Monticello
APPLICANT: City of Monticello
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 subject to the approval or
deniai of the City Council and will be considered on Monday, February 28th, 2004 at
l p,m., at the Monticello City Hall.
_F''''; PCltch, Chief Zoning Official
..g Lake
nd 10,
, Lower
'ail able at
II persons
aproval or
!Elth, 2001~
1:
ti;
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11.
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-
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.
.
.
1/26"005
Prop~rty
Map 10 PID Owner
1 155-01B-002120 Th" H lMnoow COMp.ny
lo~~_,,____,_,_,.,..,_~__
Phase
1
TOTAL
Total
Sq. Ft,/U"its
25,000
u..
Industrial
.
EHLERS
William R. and Barbara R. Tapper
CITY OF MONTICELLO - Strategic Equipment & Supply Corporation
25,000 sqlft Addition to Existing Industrial BUilding - TIF District #33
I
Ol.tncl Typ.
District Number
Inflation Rata - Every Year
P8y~A!i-You-Go Inttlresl Rate
Note ISsued Date (Pn';!sent ValulI!I Date)
Local Tax Rate. Ma)(jmul'll
Fiscal Disparitj@!$ Eleclion (A-inside or B-outside)
Year Districl was cenr11sd
A,$Sumes Fil"!i1 lax Increment For District
.Year District was modifill!ld
DevElloprmtnt located in moditiM area
ASsumes First T,Q,: Increment for Project
Yoars of Tax Increment
Assumes last Year of Tax Increment
/M,E'CASIi$COW. ASSUM~OI\lS
New Economic Ot:!!velopment District
33
0.0000%
6.2000%
01-Aug~5
121.9960% Poy 2005 Propos.d
NIA
Poy 2005
2007
NIA
No
2007
8
2014
Fi!'ical Disparities Rallo
Frlical Disparitil!t& Metro Wide T ax ~E1te
Local Tal( RBte ~ Current
Slete Wide Prop!l1y Tax Rate (uMd for totallaxl!I.!i)
Market Value ~t'.ax Rate (u8l!1d for total taxes)
Commerciallndu5trial Clas.!; Rlilte
Fi,,' 150,000
0"., 150,000
Rl!lf'ltal Class Rat@
Residental Class Rilte
F,,,t 500,000
ave, 500,000
I
0.0000%
0.0000%
121.996D% Poy 2005 Propo..'
~4.1090% Pay2004
O.052711l/111 Pay 2004
1 .50%~2.00%
1.~O%
2.00%
1.25%
1.00%-1.25%
1,00%
1.25%
....BASE VALUEilNFORMATION
land
Msrk:et VaJu@
153,600
Building TQtal
Market Valu@ M.\Irket Value
t,694,700 t,671,900
-----.!,!'?1,900
I
Cls!j!ji
Ral.
1.50%-2.00%
class Rate
After
Conversion
1.50%-2.00o/~
Ba..
Tax Capacity
36,688
36.666
Market Value
S . Ft./Units
30.00
....PROJECT.INFOR/M1l0N
Tues Per Total Market
$ . Ft./Unlts Tues. Value
S3.70 92.406 2,621,900
92,406 2,G~1 ,900
Class
Rate
1,50(1/(\-2.00%
Projl;!ct Year
Tax Capacity Con$trueted
51,688 2005
~1,688
NOt8~
1. 'ru IIIstim3tei>.Jlf'V bl:sod (In mafkl!lt "'Hue.
2. TJF run al!illoumes 100% Of the building i.$ constructed by January].. 2006 t'or P~Y;jlble- 2007.
U..
Total
Tox
e.paeit
51,689
~1,696
Loeal
Tax
~~.city
51,688
51,688
Indul:litrial
TOTAL
Note:
1. Mont.tellQ doc.9 not jiilV FfSC(l1 Disparities.
Fi5cal
Dispariti~$
Tal( Capacity
o
o
l.ocal
T..
Ra..
1.21996
1.21996
',"TAX,'OALCUCATIONS
Filcal State-wide
Dil!ip.rities Pro~rty
T8x RJIt~ Tax Rate
0.00000 0.54109
0.00000 0.54109
Local
TaxB&
63,057
63.057
Fiscal
Oi$parltie5
Tues
o
o
Prvp9fed by Ehler!"
After
Conversion
Tax ~pacity
36,696
36.686
St\:lte-wic:le Market
Propt:!rty Vah..le
lues l""xes
--27~~-,-",
27,969 t.3~1
tlF CiI-5hIIDW '.14-QS WItt! 8 ~"r:;
Page 1 of 2
Date
f:iayablo
2005
Date
Pa ~ble
2007
Total
lS)I;e50
92,406
92,408
1/2612005 Page 2 of 2
. . EHLERS
A ~>f.,',:~~~~ '~,.
CITY OF MONTICELLO - STRATEGIC EQUIPMENT & SUPPLY CORPORATION
. TAX'INCREMENH;ASH FLOW
Ba$@ Pro)o.! Fiscal Captured Semi-Annu.l St.ete Admin. Semi-Annual Soml-Annual PAYMENT DATE
PERIOD BEGINNING To< Tax Disparities Tax GrolS Ta~ Auditor at Net Tax Present PERIOD ENDING
Yr5. Mth. Yr. Ca iilcit c. ~c.it Reduction Ca acit Inerement 0.36% 5.00% Increment Value y",. Mth. Yr.
0.0 02-01 2005 36.666 36.666 0.0 08-01 2005
0.0 08-01 2005 36.688 36.668 0 Present V8:lue Date. 1)..o1-0a 0 0 0 0 0.0 02-01 2006
0.0 02-01 2006 36.688 36.688 0 0 0 0 0 0 0 0.0 08-01 2006
0.0 08-01 2006 3B,66a 36.6a8 0 0 0 0 0 0 0 02-01 2007
0;0 ' :;,0",2;;(,';{ :~t200:7 :(.",': '.36;688 """1:688.' 0 15.000 9.150 (33) (456) 8.661 7.665 '.06'0. i2007 '
0.5 oa.01 2007 3B,B8B 51,688 0 15,000 9,150 (33) (456) 6,861 15.100 1.0 02.01 2008
1.0 02-01 2008 36.668 51.6BB 0 15.000 9.150 (33) (456) B.661 22,311 1.5 OB-Ol 200B
1.5 OB-01 2008 36.688 51.6B8 0 15,000 9.150 (33) (456) 8.661 29,306 2.0 02-01 2009
2.0 02-01 2009 36.688 51.6B8 0 15.000 9.150 (33) (456) 8.661 36,090 2.5 OB-01 2009
2.5 OB-Ol 2009 36.668 51.BBB 0 15.000 9.150 (33) (45B) 8.661 42,670 3.0 02-01 2010
3.0 02-01 2010 36.68B 51.688 0 15.000 9.150 (33) (456) B.661 49,052 3.5 08-01 2010
3.5 OB-01 2010 36.68B 51,6BB 0 15,000 9.150 (33) (456) 8.661 55.243 4.0 02-01 2011
4.0 02-01 2011 3B,668 51.6B8 0 15,000 9.150 (33) (456) 8.661 61,247 4.5 OB-01 2011
4.5 08-01 2011 36.68B 51,6B8 0 15,000 9,150 (33) (456) 8,661 67,071 5.0 02-01 2012
5.0 02-01 2012 36.6BB 51.688 0 15,000 9,150 (33) (456) 8,661 72.719 5.5 08-01 2012
5.5 oa-Ol 2012 36.68B 51,688 0 15.000 9,150 (33) (456) B,661 76.196 6.0 02-01 201,
6.0 02.01 2013 36,688 51,B88 0 15,000 9,150 (33) (456) 6,661 83.512 6.5 08-01 2013
6.5 OB-Ol 2013 36.8aa 51.6a8 0 15.000 9.150 (33) (456) B.661 8B,667 7.0 02-01 2014
7.0 02-01 2014 36:685 51.668 0 15,000 9,150 (33) (456) a.881 93.666 7.5 08-01 2014
7.5 08-01 2014 3668B 51.8BB 0 16.000 9150 33 456 6.881 9B.515 6.0 02-01 2015
louis 146 395 527 7,293 "a,575
P!"8:!ii!!!nt Villue pate. 8-01.D5 107301 375 5,185 9a,515
Note:
1. State Auditor pnymer'lt is. pnsed on 1st halt, pny 2004 <actLlal and may mt.ro.aM ovN t~m\ 01 r,ji:'Uricl.
2. A$!i'iUm4'tS a~velopment IS cQostruc:.ted in 200fi. ~5s6ssed in 2006 and first incremem is p,pid in 2007.
2, Amount of increm~nt will v~ry dep~nQing upon lTl4lrket v~l~e. tax ~tes, i+la!;i!;i: I'1lles, CQn5truCtjon !;It'I1p.[h,ll~ and Inflation on market valu.;;.
4, lnfl;i,ltiorl on tax ratti's Cannot be t:.ap~Llred w TAX RATF.:~ COUU) DECLINE
S. tlF doe~ not cotpture 5tate wide property taKe-s Or' maril.et val~E! property tclJr;iHi.
6, AssUlnes inflationary irICr'1tI'i'if!nt in lOO&.
.
Un". 'fax IlIcl'C1tl/,!n1lLQI!n~
'l'nl:11 Pl"jl'lcri~'TIIXl'N
h.'s:( S1111cl'ax
Ic~s Mark(" Vnllll.: Tn\.
Ic.~s [\:i~ljllj! T;I\:('~
AnnulIl TIIX 11H~r'i!t'lII~II. Fjll"II~~i'IU
BLlT '''fORA: AtNSI'S
n.-W6
_17,t)MI
-I,JHI
-...-t7~)I. Eslinlllte
1~.21)<) less 1111\' Ktlrnili, Fel'~
Gllrrlllnl M;jIIItI:l'I Value ~!.l
New Markel Valul? - E:;l
Dill~~fll;:~
PI~~~1'I1 Value or Ta)( Inaement
Pifll'!t'~11C~
V,llllJe Ltk~IV to U:curWitroul Tax Inaemslll I~ ll:l~~ 11'1an
1,871,000
<1,1193,800
2,621,900
_._.~~
2,523.385
2.523,365
.
P'~pared by Ehl@ors
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HRA Agenda - 02/15.05
8.
Consideration of Executive Director's Report.
A) Met with Dahlheimer's and Streeter on February 11 about Otter Creek site for
development on their distribution facility. Interested in corner site, City encouraging side lots,
No final decisions as to Monticello site.
H) Hrad Johnson and a Mexican restaurant owner stopped by City Hall. Brad had him in town
looking at Landmark Square II site. They have 12 restaurants in MN and numerous
restaurants out east. Would be full-service restaurant.
C. 30,000 sq ft manufacturer user looking to construct.
D. EDA approved Tapper's loan of$200,000.
E. Herbst, Mayer, O'Neill, Wojchouski, and myself met to discllss downtown Monticello.
Have meeting scheduled with Elhers as an educational and idea exchange on February 17.
F. Meeting scheduled with A VR for February IS.
G. Marketing Committee met February 10 and have follow-up meeting February 24.
H. I'm out of the oflice February 28 and will return March 14.