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HRA Agenda 06-02-2004 . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AVTHORITY Wednesday, .June 2, 2004 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Bill Fair, Vice Chair Darrin Lahr, Dan Fric, Brad Barger, and Steve Andrews. Council Liaison: Roger Carlson. Staff: Rick WolfsteJler, Ollie Koropchak, and Angela Schumann. Guests: Brad Johnson, Lotus Realty Services and Barry Fluth, Master's Fifth Avenue I . Call to Order. 2. Consideration to approve the May 5, 2004 HRA minutes. 3. Consideration of adding or removing items from the agenda. . 4. Consent Agenda. 5. Consideration to review a revision to the Contract for Private Redevelopment between Masters Fifth A venue and the HRA for Landmark Square Phase II executed by the HRA. 6. Consideration to discuss for interest the establishment of a scaltered housing program. 7. Co nsi deration of an update relative to refinancing of the TI F Di stri ct No. 1-22 Bonds and to authorize cal ling for a special I-IRA meeting. 8. Consideration to authorize payment of HRA bills. 9. Consideration of Executive Director's Report. 10. Committee Reports. 11. Other Business. 12. Adjournment. . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, May 5th, 2004 - 6:00 p.m. 505 Walnut Street - Bridge Room Comm issioners: Chair Bill Fair, Steve Andrcws, Brad Barger, Dan Frie, and Council Liaison Roger Carlson Vicc Chair Darrin Lahr Rick Wolf.<;teller, Ollie Koropchak, and Angela Schumann Absent: Staff: 1. Call to Order. Chair Fair called the meeting to order at 6:00 p.m. and declared a quorum, noting the absence of Vice Chair Darren Lahr. 2. Consideration to apProve the April 7th, 2004 BRA minutes. A MOTION WAS MADE BY BARGER TO APPROVE THE MINUTES OF TI-IE MARCH 3RD, 2004 HRA MEETING. MOTION SECONDED BY ANDREWS. MOTION CARRIED UNANIMOUSLY. 3. Consideration of addin!! or removing items from the agenda. MOTION BY ANDREWS TO ADD AGENOA lTEMS 5, 8, 9, and 10 AS FOLLOWS TO THE CONSENT AGENDA. MOTION SECONDED BY BARGER. MOTION CARRIED UNANIMOUSLY. 4. Consent Agenda. MOTION BY BARGER TO APPROVE ITEMS ADDED TO THE CONSENT AGENDA: 5. Authorized cntering into the Contract fOr Private Redevelopment betwecn Masters Fifth A venuc and the HRA for Landmark Square Phasc If. 8. Authorized paymcnt of HRA bills. 9. Accepted Executive Director's Report. . HRA Minutes 05105/04 10. Committee Reports. MOTION SECONDED BY FRJE. MOTION CARRIED UNANIMOUSLY. 6. Continued ~ Consideration to hear an updatc on redevelopment of Block 52. Korpochak stated that she had received an email on 30th from a Walgren's representative indicating that they are still interested in a Monticello location. They are continuing to work on acquiring more property. Korpchak indicated that the developer realized thcy would not mcet Junc 301h TIF deadlines. Fair clarified that thisreport would indicate that thcre will not be any HRA Participation cxcept for the possible sale of HRA property. Koropchak clarified that thcrc may be potential fix a new redevelopmcnt project, which would requirc the creation of a new district. . Barger inquired if bonds fi:)f the district would then be retired. Koropchak indicated that would be the case. Koropchak stated that she is verifying final amounts of thc bonds and will provide a report at the ncxt meeting. Fair asked whethcr Scott Douglas had any comments. Douglas indicated that as long as agrecments can be made with property owners rather than the H RA and City moving to condemnation, he has no other comment. He commentcd that he still questions thcre site plan as far as traffic and access. Fair indicated that those would be considerations fi:)r the Planning Commission. 7. Public Hearin - Considcration to a rove amendin thc HRA Business Subsid Criteria. Koropchak provided the staff report, indicating that on April ih, the HRA commissioners had requestcd a public hearing to amend the Business Subsidy Criteria. The Proposcd amendmcnt would alter Section 6 on Procedurcs to require a non-refundable fee associated with the Preliminary Development Agrcement for TIF horn $5,000 to $7,500. This amendment is consistent with the BRA's motion on February 4th, 2004, to increase the deposit fee from $5,000 to $7,500. Chair Fair opened the public hearing. Hearing no comment, Chair Fair closed the public hearing. . . HRA Minutes 05/05104 MOTION BY FRlE TO APPROVE AMENDING THE BUSINESS SUBSIDY CRITERIA FOR THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, PAGE 4, SECTION 6, PROCEDURES, TO READ AS FOLLOWS: THE APPLICANT WILL EXECUTE AND SUBMIT THE PREIJMINARY DEVELOPMENT AGREEMENT ACCOMPANIED BY A NON- REFUNDABLE FEE OF $7,500. MOTION SECONDED BY BARGER. MOTION APPROVED UNANIMOUSLY. 11. Other Business Koropchak noted that the EDA had approved the GMEF Loanfor WSf Industries. The company had purchased and would be locating in the former Remmele Building. Fair inquired about purchase of Chadwick parcel. Koropchak reported that May 10th is deadline for Chadwick to accept the contract as proposed. Frie inquired about annexation. Carlson and Wolfsteller indicated that the mediation is progressing. The line of annexation is somewhat in discussion, all other terms seem agreeable to both parties. The "No Hostile Annexation" group is a separate citizen organization outside of mediating parties. 12. Adiournment. A MOTION WAS MADE BY BARGER TO ADJOURN THE MEETING AT 6:15 P.M. MOTION SECONDED BY ANDREWS. MOTlON CARRIED UNANIMOUSL Y. HRA Chair Recorder . . HRA Agenda - 06/02/04 s. Consideration to review a revision to the Contract for Private Redevelopment hetween Masters Fifth Avenue and the HRA for Landmark Square Phase II executed bv the HRA. A. Reference and baek2:round: At the May meeting, the HRA authorized entering in the Contract for Private Redevelopment between Masters Fifth Avenue and the HRA for Landmark Square Phase II. Since that time, Barry Fluth requested a clarification of the terms for release of the First Disbursement Letter of Credit and Second Disbursement Letter of Credit. He was OK with the rest of the Contract but did not sign the Contract until his attorney had reviewed it. Fluth thenleH the country and is expected back Memorial weekend. Prior to Fluth leaving, he requested this itcm be on the HRA agenda in June. A copy of the rcvision tfom the HRA Attorney has not been requested til after comments from Fluth's attorney. Therefore, the revision will be distributed at the !-IRA meeting. The revision does not require amending the Contract as it's for clarification purposes only. If Fluth's attorney requests major ehanges that would be anothcr matter. A summary of things yet to be donc prior to disbursement of the HRA dollars by no latcr than June 30, 2004, will be preparcd. Attached is a copy of the commcnts from the City Planner and Enginecr Consultants as prepared for the Planning Commission meeting of June 1,2004. At this timc, no action required. . . 6. HRA A~enda - 06/02/04 Consideration to diseuss for interest the establishment of a scattered housin program. A. Reference and baek2:round: At the request of Chair Fair, the HRA is asked to diseuss for interest the establishment of a scattered housing progrmn. Some years ago, lIRA Commissioner Frie and Administrator Assistant O'Neill drovc the city and idcntified potcntial rcsidential areas for redevelopment. Attachment A. identifies those areas. You will note, the X represents the CMHP/HRA/City Project completed in 2003. One of the things that make redevelopment projects so difficult is the high cost to acquire property. In conversation with Mark Ruff, I asked what other communities were doing if anything. He noted that the City of Richfield continues with their housing program: to acquire substandard homes as thcy come on the market. After demolition or determination to rchabilitate, the parcel is put out f()r bid and sold to the highest bidder. Guidelines or criteria must be established in advance. With budget cuts, redevelopment grants are non~existence or few; however, low to moderate income housing programs are still available. Richfield's program continues through the use of pooling dollars from the Best Buy TIF District. Using a similar model, the Monticello HRA could use pooling dollars on an annual basis from TIF District No. 1 ~22 for this purpose. Allowable pooling dollars fl)r a redevelopment district is 25% ofthc tax incrcment. Ten percent for administrative costs and fifteen percent for other. Or per Mark's projections Attachment B.: 10% Admin = $423,486 and 15% Pooling = $513,784 or $284,475 NPV. !-Iowever, it is not advised to designate the funds but to review on an annual basis as the 15% serves as a reserve for bond payment in case of a tax increment shortfall. The bond projections assumes full expenditurc of the Front Street project and does not ret1ect the sale of the property to Hans Hagen Homes. Attorney Bubul is researching if these dollars ($297,352) arc outside the pooling dollars and available as secd money Jor a scattered housing program. The second source of funds would be the revenucs from a new TIF District eithcr Redevelopment or !-Iousing District. A third Source of funds needs further research. A better understanding will be defined at the HRA meeting after further discussion with Ruff, Bubul, and WolfsteIler relative to the next agenda item. . If the HRA is interested to pursue a scattered housing program and has secd dollars, some suggestions: Request an update of the identified homes by drive~by and by home value through GIS program. Request research of possible thirds source of funding. Request drafting of program guidelines or criteria. HRA Agenda - 06/02/04 . 2 . ~1tQ.t.~W\."", t A. Elm Street and 6th Street Neighborhood - Ruff Auto Area 713 6th Street West . Owner: Laura Rowland . Value: $51,300 612 6th Street West . 607 6th Street West . Owner: Ellsworth & Doreen Grubbs . Value: $50,100 . Owner: Duane Gates . Value: $29,400 613 6th Street West . Owner: Paul Dahlheimer . Value: $29,200 c ~"""? I( ^ 0 tee. "t- 609 6th Street West . .Unable to detennlne Correct address* 1 . 518 6th Street West 418 6th Street West . 606 West 5th Street? Owner: Scott & Kristine Garvin Value; $47,500 Owner: AdOlph & Lucille: Benson Value, $52,200 Lawrence Tischner $43,900 419 6th Street West 407 6th Street West Owner: Paul Schultz Value, $56,400 Owner: William & Donna Allen Value: $56,100 Fourth and Third Street West Neighborhood 2 . 613 4th Street West 725 3rd Street West . 906 Broadway West Owner: Malinda Vickers Value: $53,700 Owner: Roben Barthel Value: $59,100 Owner: Roger Danielson Value: $55,900 612 4th Street West Owner: Dick BondhllS Value: 38,500 Broadway West Neighborhood 806 Broadway West Owner: Steve & Gail Maskow,ki Value: B6,600 3 . 631 Broadway West 322 4th Street East . Unknown Address Owner: Thomas Perrault Value, $49,200 Owner: Russell & Sandra Olaon Value, $43.500 Property Owner Property Value Comments Fourth and Third Street East Neighborhood 309 Third Street Owner; Nancy Hanson Value, $100 tM.lY Want to re--check Ulis as t,q" book states this as total value? Misc. 4 . . 8 Linn Street Owner: Eldor & Nancy Jo"dan Vallle: $46,000 306 East River Street Owner: Robert & Jessica Milton Value: $42,300 5 . City of Monticello District 1-22 Projections - New Class Rates and 1.12 Frozen Rate ~'tto (. '^~~ t ~ Existing Delete Add Add Add Midwest Total Year TIF Marquette Town Ctr, Hans H, Landmark" Graphics Revenue 2003 93,211 - - - - - 6,000 - 99,211 2004 186,422 (12,535) 5,627 16,800 - - 13,000 - 209,314 2005 186,422 (12,535) 5,627 16,800 - - 17,000 - 213,314 2006 186,422 (12,535) 5,627 16,800 - - 17,000 - 213,314 2007 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2008 186,422 (12,535) 5,627 16,800 20,000 - 1 7,000 - 233,314 2009 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2010 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2011 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2012 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2013 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2014 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2015 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2016 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2017 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2018 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2019 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2020 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2021 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 Totals 3,448,803 (225,631) 101,284 302,400 300,000 - 308,000 - 4,234,856 . Debt Serv, Refunding Annual Net Year Admin Cub Existing Bond Expenses Revenue 0 2003 9,921 5,124 59,125 74,170 25,041 2004 20,931 5,124 0 130,956 157,011 52,303 2005 21,331 5,124 177,180 203,635 9,678 2006 21,331 5,124 174,855 201,310 12,003 2007 23,331 5,124 177,080 205,535 27,778 2008 23,331 5,124 178,880 207,335 25,978 2009 23,331 5,124 180,225 208,680 24,633 2010 23,331 5,124 181,085 209,540 23,773 2011 23,331 5,124 181,430 209,885 23,428 2012 23,331 5,124 181,330 209,785 23,528 2013 23,331 5,124 180,765 209,220 24,093 2014 23,331 5,124 179,715 208,170 25,143 2015 23,331 5,124 178,160 206,615 26,698 2016 23,331 5,124 171,200 199,655 33,658 2017 23,331 5,124 174,120 202,575 30,738 2018 23,331 5,124 171,320 199,775 33,538 2019 23,331 5,124 173,220 201,675 31,638 2020 23,331 5,124 174,520 202,975 30,338 2021 23,331 5,124 175,065 203,520 29,793 Totals 423,486 97,356 59,125 3,141,106 - - - 3,721,072 513,784 PV-65% 1,959,945 284,475 5/27/2004 update district 22 for refunding bonds 2004 . . BRA Agenda - 06/02/04 7. Consideration of an update relative to refinancing ofthe TIF District No. 1-22 Bonds and to authorize callin!! for a special BRA meeting. A. Reference and back~r()und: In the last conference call between Mark Run: Ehlers & Associates, Rick Wolf.;;teller, and myself, the decision to authorize issuance of the TIF District No.1 -22 Bond was delayed to insure that the Landmark Square Phase II project proceeds. The bond amount includes District No. 1-22 up~front expenditures including Landmark Square Phase I[ and District No.1- 23 up-front expenditures for Midwest Graphics. See Attachment A. The attached up-front expenditures were compiled from a 1997 to current print-out of TIF District No. 1-22 from the Finance Department and a cross check of the TIF Report to the State Auditors. It is the recommendation of Ehlers and Kennedy-Graven that the City Council issue the Taxable G.O. Bonds on Monday, June 14,2004, as interest rates appear on the rise and because of the general public's knowledge of the June 30, 2004, TIF deadline date. The City Finance Director, after an interpretation from Attorney BubuI, had thought about holding-off issuing these bonds at a later date this year to include some other city projects with the assumption of a savings in issuance costs. As the baUoon payment for the Temporary Bonds is due July 1, 2004, the decision is to move forward now. With the Council's action scheduled for Monday, June ] 4, the liRA should consider calling for a special lIRA meeting on either Monday, June 14, 6:00 p.m. prior to City Council meeting or any time prior to Monday, June 28, for the purpose to authorize entering into a Pledge Agreement between the City and HRA relative to the bonds. FoJlowing a conference call or meeting scheduled between Ruff: Bubul, Wolfsteller, and Koropchak on the morning of June 2, the HRA will be advised as to the amount of the bond. B. Alternative Action: 1. A motion caJJing for a special meeting of the liRA on for the purpose of authorize entering into a Pledge Agreement between the City and HRA relative to the TIF District No. 1 -22 and 1 -23 Bonds. 2. No action necessary. . HRA Agenda - 06/02/04 c. Reeommendation: Recommendation is for alternative no. I, date to be determined by lIRA. D. Supporting Data: Estimated up-front expenditures and Elher's projections. . - - 2 . "flF District No. 1-22 Expenditures June 30, 1997 - May 4,2004 What Price Closing cost Relocation Interest Hawkins House Acquisition $55,700 $768 $5,267 SchlieI' House Acquisition $20,000 $674 $1,635 Schlief CFD $63,000 $274 $12,017 Bostic House Acquisition $109,400 $2,117 $11,900 Car/son House Acquisition $275,000 $633 O'Connor House Acquisition $144,463 $~ "? " J,JJ~ Pathway Improvements by Sunny Fre$ 16,340 Walnut St Public Improvements $11,212 Front St Site Improvements $114,455 Front St Public Improvements (Pathw) $ 24,600 Front St Public Improvements $23,184 Community Center $270,000 Landmark Square I $ 75,000 Landmark Square II * $352,500 Administration (Legal/Other Prof) $120,641 . Engineer $ 424 Taxes $ 7,114 2004 expenditures * $ 8,458 Subtotals $1,691,491 $4,466 $15,232 $18,919 TOTAL $ 1,730, I 09 District 1-23 (Midwest Graphic) $ 181,000 (land and site improvements) * Approved by BRA - Contract not executed * Expenditures through 5/4/04 per Kathy. Does not include interest and closing payments on temporary bond. - - Ollie Koropchak Mark Ruff [mark@ehlers-inc,com] Thursday, May 27,20048:14 AM Ollie Koropchak; Rick Wolfsteller; Todd Hagen; sbubu/@Kennedy-Gravencom Refunding of TIF bonds From: .sent: To: Subject: ~ m_l ~J refunding of 01 GO update district 22 TIF Temp.XL... for refundi... We should scheduJo a meeting or conference as soon as possible to discuss the attached spreadsheets and following issues: 1. Amount of c~sh (from prior bond proceeds and district balance), avai.labJe for refunding bond. 2. Tre~tment. of Hans H~gen J and s~ les proceeds J. ~bili ty L:o use funds for futurE' scattered site !lousing by pooling from 1-22 4. Midwest Graphics st~tus. Thanks, Mark --.--------.---.-..---------- --.---.-.---- This emaiJ has been scanned for a 11 viruses by the MessageLabs Erl1a il Secu ri ty Sys tern. . ..... ....... Monticello, MN $1,970,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2004A . Sources & Uses Dated 06/30/2004 I Delivered 06/30/2004 Sources Of Funds Par Amount of Bonds Unus~d Proc~cds from 200 I Issue $I,970JlOOOO JOO,OOOOO Total Sources Uses Of Funds Total Und~rwritcr's Discount (1.500%) Costs or Issuance Deposit 10 Current Refunding Fund Rounding ^rnount $2,270,000.00 Total Uses 29,550,00 29.00000 2,209,12500 2.J25,O() $2,270,000.00 . .... refunding of 01 G.O. TIF I S/NGl.E PURPOSE I 5/27/2004 I 8:09 AM . City of Monticello District 1-22 Projections - New Class Rates and 1.12 Frozen Rate Existing Delete Add Add Add Midwest Total Year TIF Marquette Town etr. Hans H. Landmark II Graphics Revenue 2003 93,211 - - - - - 6,000 - 99,211 2004 186,422 (12,535) 5,627 16,800 - - 13,000 - 209,314 2005 186,422 (12,535) 5,627 16,800 - - 17,000 - 213,314 2006 186,422 (12,535) 5,627 16,800 - - 17,000 - 213,314 2007 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2008 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2009 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2010 186,422 (12,535) 5,627 16,800 20,000 - 17,000 ~ 233,314 2011 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2012 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2013 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2014 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2015 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2016 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2017 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2018 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2019 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2020 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 2021 186,422 (12,535) 5,627 16,800 20,000 - 17,000 - 233,314 Totals 3,448,803 (225,631) 101,284 302,400 300,000 - 308,000 - 4,234,856 . Debt Sew Refunding Annual Net Year Admin Cub Existinq Bond Expenses Revenue 0 2003 9,921 5,124 59,125 74,170 25,041 2004 20,931 5,124 0 130,956 157,011 52,303 2005 21,331 5,124 177,180 203,635 9,678 2006 21,331 5,124 174,855 201,310 12,003 2007 23,331 5,124 177,080 205,535 27,778 2008 23,331 5,124 178,880 207,335 25,978 2009 23,331 5,124 180,225 208,680 24,633 2010 23,331 5,124 181,085 209,540 23,773 2011 23,331 5,124 181,430 209,885 23,428 2012 23,331 5,124 181 ,330 209,785 23,528 2013 23,331 5,124 180,765 209,220 24,093 2014 23,331 5,124 179,715 208,170 25,143 2015 23,331 5,124 178,160 206,615 26,698 2016 23,331 5,124 171,200 199,655 33,658 2017 23,331 5,124 174,120 202,575 30,738 2018 23,331 5,124 171,320 199,775 33,538 2019 23,331 5,124 173,220 201,675 31 ,638 2020 23,331 5,124 174,520 202,975 30,338 2021 23,331 5,124 175,065 203,520 29,793 T atals 423,486 97,356 59,125 3,141,106 - - - 3,721,072 513,784 PV - 6.5% 1,959,945 284,475 ........ - 5/27/2004 update district 22 for refunding bonds 2004 . . - - 8. HRA Agenda - 06/02/04 Consideration to authorize payment of HRA bilJs. At this time, no monthly HRA bills have been received Jor consideration. . . - 9. g) HRA Agenda - 06/02/04 Executive Director's Report: a) Job and Wage Level Survey Summary - Attached is the covcr lettcr, summary, and spread sheet of the 2004 Survey mailed to participating businesses. Chamber Golf Outing - The Marketing Committee received 31 positive responses to their gratis invitation. Twenty-six attendcd the May 20 event. Cost: $1,950. Seminar for Manufacturers - Note this seminar and two of the featured spcakers "Successful Stratcgies for Competing in a Low~Cost Manufacturing World". Are we not proud of our industrics? Be surc to pass on a warm BRE congratulations. Delano - Attached is a exccrpt for the State of the City power-point presentation by thc Mayor of Delano at thc last County Partnership meeting held May 21. Notc; New Dcvelopment - Industrial. Elk River - The Economic Development Director call cd me after reading the article in The Business Journal relative to Monticello plans to purchase land for industrial development. It appears Elk River is in a similar situation as Monticcllo rclative to marketablc vcrsus saleable land. Most interested in how we convinccd thc BRA, EDA, and Council. Economic Dcvelopment Director for Sherburne County - Resigned as suggested. H~ Window Building - In conversation with thc real estate agent on May 24, he reports they have one Purchase Agreement in-hand and expcct a second within a few days. Price: $2.4 million. WSI Industries - The CEO and CFO attended the Chamber Golf outing. Plan to start moving in the first of June. Leads: 1. ^ Princeton business looking to lease 3,000-4,000 sq ft of warchouse space. Wouldn't leave phone number. Referred to Suburban. 2. Business looking for space to run a Spanish Speaking customer service center. Lead from Wright County Partncrship. 10 new jobs first year and up to 25 jobs within three ycars. $10-$12 plus benefits. They mct with TDS for presentation of services offered by TDS and lookcd at leasing a portion of the TDS building on Thomas Drive. They wcre interested in the Fingerhut building owned by Duane Schultz, Winkelman Building Corporation. I met with Noel LaBine, Partnership Executive Director, and the Chief Executive Officer and Chief Financial Officcr of the company on May] 1. Noel is assisting them to raise $5 million in additional capital. They appeared most interested in Monticello's loan program. Although, the City has not received a loan application, it appcars the request would not meet the guidelines of our loan program. If located in Monticello, the company is looking for at least $300,000 in local support. I'vc bcen talking with Duane. Looked at building twicc, company looking for $300,000 assistance from city. It appears Duane does have the building listed with an agent. b) c) d) e) f) . . m) n) 0) p) q) - HRA Agenda - 06/02/04 h) Electronic control panel assembly - Lead from BRA Commissioner. This metro area company looking to build a 5,000 sq it building with expansion capabilities. One to 1.5 acres. Currently 4 full~time jobs at $20~$28 per hour without benefits. Three additional in two years at $15 per hour without benefits. 2004 fall construction. Monti sites: Pheffer and Duane Schultz. May 25: Company feels Monticello to far out. Added company cost as distance to customers and suppliers. Looking at sites in Elk River, Coon Rapids, and two sites in Dayton. Schultz did not contact the company as he's working on something else for the site. Developer of MIR~guided laser technology - First contacted this Canada company in August 2003. Talk to CEO the other day, he will call the end of June to visit the UMC building. UMC has done work with this company. Casino site ~ You probably read in the St. Cloud paper where Ryan Company was looking for sites in Wright County. With no legislation action this year, project has slowed. Executive Director of Wright County inquired about the Chadwick property which was not mcntioned in the St. Cloud paper. Aldi Inc. and United Property representative ~ I met with these individuals on May 12. Looking for 80 acres to construct 500,000 sq ft warehouse, 15,600 sq it office, and 2,500 sq tl dispatch building. Total developed area 43 acres. 17 employed in office and 35 in warehouse. 52 employees with total approx. payroll of $2,577,000 per year starting June 1,2007. Knowing the City was in the process of acquiring thc Chadwick propcrty, they focused their attention of the 70 acre site of Gold Nugget. Horst Grazer not interested in selling. User not compatible with residcntial. Suggested Paumcn or Osowski to foster interchange construction. Time frame: Purchase land Jan~Feb 2005, begin construction May 2005 and open 2007. Trunk drivers are independent owner/operators. 20 trucks in per day and 20-30 out per day. Start up business serving patients with home medical equipment and supply needs. Has space leascd. Applying for license. Looking for funding: Suggested Partnership or two Sources through the Initiative Fund. Has equity and talked to lender. A Monticello resident - supportive of his plan. Will kcep in touch. Scheduled to tour Big Lake Industrial Park on May 28 with Feaski. Production Stamping ~ Call cd and left message twice for Les Wurm. Trying to set up an IDC tour of the company. No response. Sunny Fresh Foods ~ Council approved concept and development stage PUD allowing for expansion of an office/industrial use in the CCD district. The project consists of new and remodeled office space totaling 13,800 sq ft on the f()rmer Methodist Church site. 900,000 sq it distribution center ~ Lead MDEED. 550 to 700 jobs. ] 50 acres. Would like south on Highway 25. O'Connor residential relocation reimbursement - See attachment. It appears i) j) k) I) 2 . . HRA Agenda - 06/02/04 r) O'Connors attorney's office found the lost check of June 2002 as was cashed in March 2004. A second check was never issued by the City as a letter dated February 2004, noted the City would cancel the 2002 check and issue a second check upon receiving reimbursement of the HRA legal fees occurred do to this immediate matter. No reimbursement has been made to the HRA. TOLD Company - I placed a cal1 to Bob Cunningham for an update of the proposed Walgreen's project at the downtown site or elsewhere. No feedback yet. Marketing Subcommittee is meeting Friday, May 28, 7:30 a.m., City Hall. Otter Creek Industrial Business Park - The City Council authorized entering into the Purchase Agreement with Chadwick for purchase of land f()r industrial development at the Council meeting of May 24, 2004. See attached preliminary development schudule. Aroplax BRE Visit Summary. See attached. s) t) u) 3 'tc0 May 18, 2004 MONTICELW Dear Monticello Business Owner/Manager, Many thanks to you, a business owner or manager, for participating in the job and wage level survey conducted by the Office of Economic Development. I know the value of your time and busy schedules. As promised and included is a copy of the 2004 survey summary and spread sheet (without business names) used for tabulation purposes. The summary was divided into two categories: Manufacturing and non-manufacturing. The following businesses participated in the survey: . Groebner & Associates Dahlheimer Distribution Hoglund Bus Maus Foods Hospital District EDMA Custom Canopy Suburban Manufacturing Electro Industries Twin City Die Castings WSI Industries Bondhus Corporation UMC NMC/Xcel TDS Telecom Hoglund Transportation Dodge Dealership Ford Dealership School District No. 882 Integrated Recycling Technologies, Inc. Tire Service Equipment Company Rainbow Enterprises Production Stamping Aroplax Corporation Standard Iron & Wire Works Genereux Fine Wood Products/Westlund Distributing Sunny Fresh Foods Two un identi fied businesses Should you have questions relative to the summary or survey, please call me at 763-271-3208. Again, many thanks. Sincerely, CITY OF MONTICELLO Ollie Koropchak Economic Development Director . Attachments: 2 c: File Monticello City Hal!, 505 Walnut Street, Suite I, Monticello, MN 55362-883] . (763) 295-27]] . Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170. Fax: (763) 27] -3272 . . ... .,.... I cat...") 2004 JOB AND WAGE LEVEL SURVEY SUMMARY CITY OF MONTICELLO In early 2004, the Economic Development Office for the City of Monticello conducted a job and wage level survey. A total of forty-two surveys were mailed. Twenty-seven surveys to manufacturers and sixteen surveys to non-manufacturers. The survey asked for number of full and part-time jobs in each wage level. Two part-time jobs equal one full-time job for the purpose of the summary. The wage levels ranged from less than $9.99, greater than $10.00, $] 2.00, $14.00, $16.00, $18.00, $20.00, to greater than $22 per hour without benefits. 1. MANUFACTURING - 19 out of27 surveys were returned or 70%. Number of full-time jobs Total annual wages A verage hourly wagc without benefits Median hourly wage without benefits 1,357.5 Greater than $48,496,448 $17.18 Greater than $18, less than $20 IA. MANUFACTURING - excluding NMC/Xcel Number of full-time jobs Total annual wages A verage hourly wage without benefits Median hourly wage without benefits 947 Greater than $30,982,848 $15.73 Greater than $16, less than $18 II. NON-MANUFACTURING - 10 out of 16 surveys were returned or 69% Number of full-time jobs Total annual wages A verage hourly wage without benefits Median hourly wage without benefits 1,042.5 Greater than $37,153,314 $17.13 Greater than $16, less than $18 I1A. NON-MANUFACTURING - excluding School and Hospital Districts Number of full-time jobs Total annual wages A verage hourly wage without benefits Median hourly wage without benefits 354.5 Greater than $11,005,925 $14.93 Greater than $14, less than $16 FIVE LARGEST EMPLOYERS (RANKED): School District, NMC/Xcel, Sunny Fresh Foods, Hospital District, and UMC. . 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N W ~ Ol() o . .m g((J o N' o co ~ w Ol() O' .<;t- 01'-- CD~ ~ ~ o ro ~. w t-CD'</"roU)~NMgl() NOC 00 co.... ~ co' N m ~ w ~~ro~O.....~~ M'<i ~..-...... 0 ......M ~~mmm~U)~ c<i("...j ("...j~.,..: 'Ol" VCO~U)~U) ~Ncrivdcj N...... Cl c: .;;: ::l ti ~ ::l C ~ :E :: o :z ..-0.... 00'1 o CD M ..- ~ N N fit ..-Ol() o . .l() gco .. r:D I'-- ~ ~ ffl ..-OM CDro M /'-. co '<i N ~ ..- w '" Q) ml/J (1l.l:l ~~ . ~G'Iii) Once in a great while, an opportunity to gain a true competi- tive edge in the marketplace comes along. You are invited to attend a half-day seminar that will provide you and your key managers with new perspectives, useful knowledge, and effec- tive tools for succeeding in today's global business environment. Through a mix of speakers, case studies and discussion, we'll share key insights gained from our experience and research with companies. Learn why some companies are highly Successful when competing with low-cost regions. . You'll not only get the big picture on low-cost manufacturing around the world, you'll also learn strategies you can leverage to compete smarter in your world. Specifically, you will: Identify the elements of your business which will increase your competitiveness in this global manufacturing environment Discover 9 proven strategies that successful companies use to compete effectively with low-cost manufacturers and explore the combination of strategies that might work best for you Understand why China and other low-cost regions have emerged as competitors Learn how corporations are taking advantage of low-cost regions, particularly China Who should attend: CEOs and upper management of manufacturing companies. Sponsored by; THE Btisi'NES'S JOURNAL p:W1jvely c/\ {1I111ttfr'1!/{ ..... (~~1JNNEAPOLlS R r c! DN" L CJli1I!:h\:I'~.i C\)l,\!~JC:t.(~ RSM McGladrey 3601111 Educi'ltiOtl & Research Foundation is a 501(cl3 non-prufit corporation, Featured Speakers; Matt Kramer, Commissioner, Minnesota Department of Employment and Economic Development Ben Vickery, Senior Analyst. Manufacturing Extension Partnership, US. Department of Commerce, Washington, DC Melissa Kelly-McCabe, CEO. Clear Intent Strategies, New York John Bondhus, CEO, Bondhus Company, Monticello, Minnesota Don Tomann, CEO, and Randy Hatcher, General Manager, UMC, Monticello, Minnesota Event: Successful Strategies for Competing in a Low.Cost World") Fee: $129 before June 3; after June 3, $149. Registration fee includes breakfast. lunch, and all seminar materials. When: June 10, 2004 730 am - 1 :30 pm Where: The Northland Inn 7025 Northland Drive Brooklyn Park, Minnesota Register: Register by calling toll- free 1-800-298-3009, or online at wwwminneapolischamber.org and click on Chamber Calendar. This event is presented by the 360vu Research & Education Foundation, which provides a broad range of applied research and educational services The Foundation was created to promote the competitiveness of US manufacturers. Inc. . . - New Development - Commercial . Upcoming commercial projects - Additional Delano Crossings development - Potential Hardees site redevelopment Former Hardtje.\' Site ,~/t>; ano nc Spilit fir CMtl/tlllfl;f~ Redevelopment Projects Old City Hall Redevelopment - Preliminary stages - development plans, TIF - 6,000 square foot restaurant, market rate apartments (40) Park and Recreation In 2003, City completed trail improvements along County Line Road, Skatepark, and 8MX Park Planned Projects for 2004 - Ice Arena wanning house - Baseball Association park im provemeots j!~':~J.~B?0:, , Deli)'H;' "n.c ,~p;,'lt"r Co,n"'/J"lt~ County /.ine Road Trail ~'; :.,~.~~~i~; " "';"~':':<"i. "'-". . .' ,', <, ~'. 'i' 'e'i:ino T~;. sJh'tit /1( OMlIfIUtlit'1 9~.) New Development - Industrial . City working towards a new industrial park northwest of town _ Annexation contest has held up since 2002 - Possibility of200+ acres - Provide additional tax base - Increase jobs and local investment - Provide opportunity for Delano businesses to expand in town. JJ$,.' ;'~~~.f:....) rJEilono "~II Spirit ",( CfMf/tl/ifldlj Highway 12 Reconstruction . Discussions with MnDOT ongoing - March 16 Public Hearing at City Hall - Presently: 2006 & 2007 Construction . Municipal ApprovallPublic Hearing - MnDOT needs to apply for City approval - Issues: Detours, Accesses, Co. Rd. 17 intersection, lighting, landscaping, other issues ~:r~;t.\ DelanO 'r~t '~f'(!t ~r CMlIfI~lIitl/ Infrastructure Improvements . River Street Interceptor Project - In process - Utilities complete - Street to be completed May/June 2004 Wastewater Treatment Plant - Add capacity - ani ine August 2004 / .. ,,~,;: ". .. .,:"" ,". ,. .~ -_.. ..".... .....~. ..... , "" ' .;: ';,'~ ~ iJ.";"'~'\;1; ~ ;",.. :,''i~'-' , ielrino T~~ Sf/fit o{ CfllltMIIII/t1 2 . . lL.O(l) OZ<( (j)<CI lLJ I- I- -(1)- ~::JlL. <(,0 Z(I)f- w-o: o..~o: w<( I.-lO f-OZ a:~~ WII Of-f- Zf-O ::J<(Z WI<( 0: f- , . <(>-09 .....Ia:w~ U::J w,o:z oO:O:w wow ;-o..UIJJ q~) . ~-~ ~,......... ! ;\:; -;-=-l ~}~ ~j Li ;~i?~~~~~t:~i;(;~~S~~~~~ -- ,./ H'> ;:? ~~) .~, :';',D':!!::l.:0!.'i :~:~' ~'::; J?:; ';::) \:~~ 'e' 6~fj1',~ ~,~ ~. ",,,,",,, N " !.~ \ ''<., ~r\ W 0: ::J ~ W Z ~ C!J o U5 ;,. '~ ~ITY OF MONTICELLO ACCOUNTS PAYABLE 505 WALNUT STREET. SUITE 1 NO. MONTICELLO, MN 55362 763-295-2711 Z~l 910 I 69323 I MAROUErTo 8ANK . MON nCF.LLO . P,O, BOX 729 I MONTICeLLO, M"'NESorA SS"62' (1(;"1295.2952 ' AMOUNT I $],331.52 ..--~ CHECK NO. 06/13/2002 THREE THO[JSAND THREE HUNDRED THIR.TY ONE 69323 DOLLARS PAY TO THE OFml::R OF MICHAEL O'CONNOR a ., .~----------~..,._~..~~ T '.;, ;/i::',:, :,~ I:,-~,';, :~,:,~.: 1.,:.:~...,:, '.:.,.1.:. '..,;.:,!I:_~Ei=:,..;:.",~~:'.:',.~",~.:.','.'....~:.1:~'.M7;1+;..'~l~.7~.c::I:.=. ..'I<-~ :::".:.i;;, i;: '~. '. " ',.., "'". . ,,' I,.";? ,f':"-. ,.~ --~i~~i0t7,,~{:.;;::~__ ) 1I-0{;g j 2 jll- I:Og.o .b{;L. 71: 7 {; 0 00. 7.ii_."n------~.n .1' 0 0 0 0 j j 1 . 5 2," . February 9, 2004 Consideration to review negotiated Non-binding Letter of Intent and to authorize preparation of a Purchase Agreement. - ~-r: INDUSTRIAL PARK DEVELOPMENT SCHEDULE May 24, 2004 Consideration to approve Purchase Agreement for 120+- acres of land for industrial development. Establish goals t(n land acquisition (I:-IRA/City). Development Committee begins work, (Covenants) Marketing Committee begins work. June 1, 2004 Closing - 35 acres released for Phase I known as haul road. $10,000 earnest, $900,000 cash. Chcck on grant for infrastructure improvements. Based on mediation Annexation request. Annexation completed. After annexation Zoning and plat approval process begins. . Authorize design and cost study of street and utility improvements for Phase I & II. Public Hearing - Amend the boundaries of the Redevelopment Plan of Central Monticello Redevelopment Project No. I. Authorize bids for street and utility improvements for Phase I and lift station. Award bid for street and utility improvements for Phase I and lift station. Fall 2004/ Spring 2005 Begin construction of improvements for Phase L Timing of TIF District in relationship to construction of infrastructure improvements. (City assess self) Fall 2005 Completion of street and utility improvements for Phase L (Haul road) November 30,2005 Hauling cease. (Prior to must lind alternate route) June I, 2007 Completion of Chelsea Road Improvements. '~~ .~ -y iYJ........~ 'i:J -::> N L-c)VV'_'~-~ 0:\._. ,,, ~(~_ ~/ vJ \ ~-L~ 6, P-lw C-L~ . ~.:? ~~ CJ....~ ~ Q'),J-\-t-- ~~ \2-~ s. 0 u-~ \':1,i\ ~~ ~J. :;o,~ ~t~~\u~ ~crv ,\0'\ ('~ ~ 3 ~ ~~ ~'()'\ ~ \,~ \ t~'t "V 0 YH:)~ 10"d ll:l.LDl -1- L I' I l. ----- ...L:..Q.oo-,. .<:;T . .~~"!" I - // '- '-..... -.--..'"'-... ---. ........ ,/J p_. '~ r7 c- ?7; b ~ \- AA "" C9 .~ '-'-^ c1: ~- ~ "\ \ (1AA<:1 c:(\ '-\( ~rV\ l '~~ ~.~.~ '\ \; ~ i Rm5.5ACR,S~~ I ~ " . I "-5GALE-.-- 1 " = 500' .a ...... \ ). "", '''\, " '- " '-, Rf\N 5.0 ACRES 20.6ACRES . 1"'l.,'lIItn.'1""1':~".:'~~",'"I~' oiiii_ e"n'....,..n... ~.n.,~I'\.;: ... I-:tt-,., I,-..~.,.-.r-.I ""l...IT C:::-::1 r HT,nC:C:H "X ~<:;f"l 91:n . . ... ...... -- .- . -- ,,> BRE VISIT SCHEDULE AND WRITTEN SUMMARY FORM . ~ q~) IDC MEMBER INDUSTRY Name Lindquist an~ Phone Name Aroplax Corporation Primary Contact Steve Schoen. President FAX Phone 763~295-5002 E-Mail E-Mail Mai ling Address Location 200 Chelsea Road Monticello. MN 55362 FAX Date of Visit Mav 6 . 2004 Time of Visit 9:00 a.m. Summary of Visit: 1. Looking for short-term warehouse space to lease - 10,000~15,000 sq ft. May expand Aroplax building to the west in future. Suggested Kaltec or Suburban for lease. 2. OK to add web address: www.arol.lax.com 3. Employment - Under 50, hire some temporary. Busiest time between May and October. Run three shifts. 4. Aroplax has over 100 customers. Their niche in molding is smaller runs. Very diversified. They build molds and run parts. Have been continuously busy unlike some competitors whose sales are down 30% due to work going overseas. Molding a dying trade due to young people not interested in the trade and work going overseas. 5. Long-term plans: To retire in the trade at age 50. 6. Belief: Customer perception is everything. 7. Lindquist and Koropchak toured the facility. DONALD BURR. the founder of the 1980s low-fare airline phenom People Express, is back with a new idea: tiny jets that will shuttle executives on demand bet-ween small air-ports. He even signed up his onetime rival Robert Crandall, the former CEO of American Airlines. as an investor and chairman of the new venture, iFly Air Taxi. BURR Quick, call Moreover me a plane , .rmer hedge-fund anager Julian Robertson has onied up $4 million, part of $6.3 million recently raised in a convertible stock sale disclosed on SECOND ACTS A PEOPLE PERSON FLIES AGAIN says he'll have a consulting role to CEO Burr. Burr, 62, figures he can offer a cheaper service than private jets with a new generation offour- and five- passenger jets expected to cost under $2 million apiece, far less than current small planes. He hopes to charge about 65% less than what someone might pay to fly on a private jet. Burr says iFly will "bring the private- travel market down from CEO level to manager level." The service will take off next year, with about 25 jets in the Northeast. Burr doesn't expect to create any turbulence for the major airlines. But with the fiercely competitive Crandall on board, iFly is bound to pop up on a lot of radar screens. ~ Wendy Zellner ING ERS APRICEYWAY TO GET JOB GROWTH USTRIES with tax breaks is a boondoggle, concludes a recent study by the Economic Policy Institute. The study found that state and local taxes account for only 0.8% of a company's costs and pale in importance next to the availability of qualified workers, proximity to customers, and the quality of public services. Tax breaks also sap budgets for education and roads. But the political ....-..!ividend fi:om bringing in a Jctory or a new 'Theadquarters, the study's authors admit, often trumps economics. -Michael Eidam 141 BusinessWeek I May 3,2004 , ANIMAL URGE AD NAUSEAM What were they thinking? An ad circulating on the Web shows the sunroof of Ford's European Sportka decapitatinga cat. The 39.second video purports to be a Ford "viral" ad, meant to create buzz. Ford insists it vetoed the spot, proposed by an ad agency to give the souped-up minicar a bad. boy Image. How the ad got out is a mystery, and Ford says it's "reprehensible." Animal rights groups are out- raged, too. Yet the ad Ford did approve hasn't fared much better: It shows a pigeon hitting the car's hood and then lying motionless on the street, angering bird lovers. Ford says both cat and pigeon are digital-no animals were harmed in making the ads. -Kathleen Kerwin DRAWN & QUARTERED lJIrn-..'t'IA\III::R '1tlf" '~~ l'n\ J.II'\.'t\.h..." <Q>zro<t. 17\\ '" OJ U ~ OJ '" <<: ;:; OJ :E '" z ;::> <'1 ;>l "" ...... ~ OJ Z ,., < ~ ;::> '.0 z-, <OJ :o:a -b "'...... ,.,'" l><:!;:l "'> -< ~~ '" ~