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HRA Agenda 12-01-2004 . . . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AlJTHORITY Wednesday, December 1, 2004 - 6:00 p.m. 50S Walnut Street - Bridge Room Commissioners: Chair Bill Fair, Vice Chair Darrin Lahr, Dan frie, Brad Barger, and Steve Andrews. Council Liaison: Roger Carlson. Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann. 1. Call to Order. 2. Consideration to approve the November 3, 2004 HRA minutes. 3. Consideration of adding or removing items from the agenda. 4. Consent Agenda. 5. Consideration of a progress report from Brad Johnson or Barry Fluth relative to Phase II of Landmark Square. 6. Consideration to review final revisions to the Monticello Transformation Home Loan Application Package. 7. Consideration to review design sketches for marketing core city development and the Transformation Loan Program. 8. Consideration to discuss term expiration dates of HRA Commissioners. 9. Consideration to authorize payment of HRA bills. 10. Consideration of Executive Director's Report. 11. Committee Reports. a) Set meeting date for Marketing Committee. 12. Other Business. a) Next lIRA meeting January 5, 2005. 13. Adjournment. . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AlJTHORITY Wednesday, November 3,2004 - 6:00 p.m. 50S Walnut Street - Bridge Room Commissioners Present: Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, and Steve Andrews Brad Barger, City Council Liaison Roger Carlson. Commissioners Absent: Staff Present: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann. 1. Call to Order. Chairman Fair called the meeting to order at 6:00 PM, and declared a quorum, noting the absence of Commissioner Barger. 2. Consideration to approve the November 3rd, 2004 HRA minutes. MOTION BY COMMlSSIONER FlUE TO APPROVE TIlE MlNUTES OF NOVEMBER 3rd, 2004. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED. " .J. Consideration of adding or removing items from the agenda. NONE. 4. Consent Agenda. NONE. 5. Consideration to review revisions to the Monticello Transformation Home Loan Application Package and authorize commencement of program January 1. 2005. Koropchak reviewed the changes made to the program draft materials for the program since the last meeting. Those changes were made after a meeting with Mark Ruff and Steve Bubul. Koropchak rcported that it was confirmed at that meeting that the funds had to be used for redevclopmcnt in structurally substandard homcs. Bubul also recommended adding criteria defining "structurally substandard". Koropchak statcd that ideally, the remodeling and design advisor service would be combined with redevelopment test. Koropchak had spoken with thc inspector that Bubul had recommended. I Ie had indicated that he could train City Building Officials on the redevelopment inspections. . Koropchak reported that both Bubul and Ruff suggested that the transformation loans be payble upon the sale of property or forgiven after ten years, noting the investment and the goal of long term stability. Fair noted that the shorter term for loan forgiveness was intended as an incentive to participate in the program. He pointed out that if a homeowner makes such a significant investment, it is unlikely that at sale, the property would turn into a rental. Hc suggested that perhaps the HRA could prorate pay-back bctween five and ten years. Fair explained that the lenders had also thought that five years would be an incentive. The Commissioners discusscd a timeframe for forgiveness, directing Koropchak to adjust the guidelines to forgive in 7 years with no pro-ration. If the propcrty is sold within that time, the loan will be required to be paid back in full. Koropchak reviewed other changcs, noting that shc would be working with the Building Department to fine tunc other areas. Fair asked if the loan recipients deviate from the loan criteria, would they have the opportunity to come to the I IRA for an appcal of the variations. Koropchak stated that would be something the lIRA could consider at the point that it bccomes an issuc. . Fair qucstioned the sweat equity clause. Koropchak stated that she needcd clarification of that item. Fair stated that lenders will acccpt swcat equity as part of down payment on a typical home loan. Wolfsteller and Frie statcd that thc easiest method for allowing sweat equity is to allow the bank to handle it through the loan proccss, thercby distinguishing betwcen valuc and cost. Wolfsteller indicatcd that the HRA transformation loan should be based on what the applicant borrows. The sweat equity can be used in how the applicant gets to the base qualifying amount. The Commission dirccted Koropchak to add the clause "Swcat equity can be used for eligibility when verified by a certified appraisal at applicant's expense." Koropchak noted that loan amounts will be public data according to state statutcs. I lowever, as thc lender will complete thc credit analysis, the HRA and public will not have access to that information. Lahr asked if there arc any remedies if the loan recipicnt docsn't pay the loan back if the homc is sold within 7 years. Fair indicated that the note and mortgage against the property would act as thc remedy. If the property is sold, the closer has to disburse back to the City. Koropchak also notcd that the 7 years expires at thc date of last disbursement. Fair statcd at the next HRA meeting the Commissioners and Koropchak will determine how to market the program. . 2 . MOTION BY COMMISSIONER ANDREWS TO AUTHORIZE COMMENCEMENT OF THE PROGRAM JANUARY 1,2005, AND TO REQUEST FINAL DRAFT OF DOCUMENTS AT TJ--IE HRA MEETING OF DECEMBER 1,2004. MOTION SECONDED BY COMMISSIONER LAI IR. MOTION CARRIED. 6a) Consideration to review revisions and accept the Performance Measure for the Otter Creek Business Campus. Koropchak explained that she is looking for direction from the liRA on finalizing the Performance Measures due to the liRA's commitment $400,000 to the Otter Creek Business Campus. Koropehak outlined the performance measures for the HRA, noting that she had reviewed them with Steve Bubul and Mark Ruff. Koropchak specifically cited the minimum lot size at 2.5 acres, noting that if lots are too small, the Business Park may need additional infrastructure. Lahr asked what the current plan for infrastructure is based on. Koropchak stated that it is based on what was outlined in the sketch, which relies on Chelsea, School and Haul as primary access points. . Lahr noted that all land is available at any size, it will just be a matter if a business wants and can qualify for the discounted price. Koropchak asked the I IRA whether they even wanted to sell land at market value, noting that with smaller lots, they would have to pay for the additional infrastructure. Andrews asked how attractive building sites would be at 2.5 acres. Frie stated that in some areas there arc smaller lots. However, in most cases and in Monticello's competitive bracket, the 2.5 acre lots are fairly consistent. Andrews indicated his desire that Monticello stay consistent with competitors. Frie asked if a 27,000 square foot building requirement might be too large for an office complex, if the City will be marketing the areas as a business park. Koropchak noted that an office building would also need more parking. Frie explained that he doesn't want to lose an attractive market by being too severe is measurement goals. Lahr asked if there was a way to weight criteria or trade-off. For examplc, if a business creates more job or higher wages, the square footage requirement is lessened. Koropchak explained that if an office user selects Otter Creek as a site, no TIF is available, and in turn, the opportunity to purchase less acreage is available. The performance measure as outlined just specified that if a buyer wants the reduced rate, the minimum size lot is 2.5 acres. Koropchak reviewed the other measures, including wages. Lahr asked Koropchak if most potential candidates would fit the criteria as outlined. Koropchak stated that they are in this general range. . 3 . . . Lahr asked if there was a way to simplify thc criteria for users. Koropchak stated she would put a very simple questionnaire together for them, then complete the calculations based on the worksheet. Koropchak noted that the performance measures would bc presented to the Counci I pcrhaps at the December meeting. The covenants and zoning had to go through tbe Planning Commission and then on to Council. MOTION BY COMMISSIONER ANDREWS TO ACCEPT THE PERFORMANCE MEASURE FOR OTTER CREEK BUSINESS CAMPUS AS WRITTEN. MOTION SECONDED BY FRIE. MOTION CARRIED. 6b. Consideration and approval of zoning for Ottcr Creek Business Campus for rccommendation to Planning and Council. Koropehak rcported that the Planning Commission had called for a public hearing rcgarding the rezoning for December meeting. Koropchak requested that the liRA make a recommendation on the zoning to the Planning Commission after briefly reviewing the differences betwcen the outlined zoning designations. MOTION BY COMMISSIONER LAl IR TO APPROVE THE RECOMMENDATION OF AN ll-A ZONING FOR OTTER CREEK BUSINESS CAMPUS. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED. 6c. Consideration and approval of covenants for Otter Creek Business Campus for recommendation to Planning and Council. Koropchak stated that the Small Group had supported I I-A zoning, howcver, they had not decided specifically on which covenants. The Small Group was supportive of covenants t"l)f Otter Creek in general. Koropchak explained that City Planner Steve Grittman has attended the IDC meeting. He will be working on clarifying the ordinance and potential covenants related to Open and Outdoor storage. Koropchak noted that the I I-A district currently allows open and outdoor storage by CUP. The IDC sent the covenant discussion back to the Small Group. Koropchak rcported to thc HRA that she had researched Becker, Big Lake, Rogers, and other surrounding communities in terms of covenants, and particularly open and outdoor storage. The majority do not allow outdoor storage. Koropchak indicated that there is a grey area on warehousing and distribution in thc new industrial/business parks. 4 . . . MOTION BY COMMISSIONER LAHR TO APPROVE THE RECOMMENDATION TO DRAFT COVENANTS FOR OTTER CREEK BUSINESS CAMPUS (ll-A ZONE) ACCORDINGL Y AS RECOMMENDED BY STAFF: a) Landscaping - b) Outdoor/Open Storage c) Irrigation - d) Exterior building material type - c) Other MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED. 7. Consideration to authorize payment of HRA bills. MOTION BY COMMISSIONER FRIE TO AUTHORIZE PAYMENT OF HRA BILLS. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED. 8. Consideration of Executive Director's Report. Koropehak reported that she had inquiries from real estate developers looking for a 55,000 square foot building with no outdoor storage. Lahr recommended that when developing marketing materials for Otter Creek Business Park, the term "preferred", rather than "performance" should be considered. 9. Committee Reports. NONE. 10. Other Business. NONE. II. Adjournment. MOTION BY COMMISSIONER FRlE TO ADJOURN. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED. --. ...-. --.. ,.-. ,.-.",,'- - -., "..--- .--., ,,_. ,.-., "'.--... Chairman Secretary 5 . . . lIRA Agenda - 12/01/04 5. Consideration of a progress reoort from Brad .Johnson or Barry Fluth relative to Phase II of Landmark Sauare. A. Reference and Background: If Brad or Barry are not present to give the HRA an update, the Executive Director will. . . . liRA Agenda - 12/01/04 6. Consideration to review final revisions to the Monticello Transformation Home Loan Application Packa2:e. A. Reference and background: Since the November meeting of the HRA and per the commissioners request, the languagc for use of "sweat cquity" was redeflncd. Upon mecting with leffO'Neill and Fred Patch, "swcat equity" was further dcfined. See page 4, last paragraph. Jeff, Fred, and I met on November 19, and the following items were discussions and the outcomes: 1. Jeff suggested including Balboul Estatcs in the target area. lie was informed this is a one-year pilot program and the HRA may expand the area in the second year. Open for further discussion. Pre-Remodeling Condition Report - We discussed this quite throughly. I had preparcd a Pre-Remodeling Condition fonn and attachmcnts to assist the Building Department in assessing a home and to document the structurally substandard findings for the HRA. These were based off a recommendation from Steve Bubul. T'he Building Official had concerns with thc time involvcd with the inspection (internal inspcction) and the lcvel of detailed information. "I'he Building 011icial will redesign the form to include check boxcs for items not mecting code and space for the estimated sum total of the improvement costs. We also discusscd that the cost to bring a home up to codc plus the cost to remodel or upgrade, may prohibit onc to consider the Transf(mnation Loan. Following up with that thought, Jeff suggested the HRA cvaluate loans based on geographic area: single parcel via clustcr of homes (more than one parcel). He felt a cluster of qualifying homes may better be served by a redevelopmcnt district (demolish). Pleasc note thc language added on page 3, #4. Remodeling Advisor Servicc - I had prepared a shcet on thc services to bc provided by the Remodeling Advisor (Building OiIicial.). Due to a potential liability issuc by serving both as an advisor and inspector and, again, the amount of time involved; the Building Official recommended this scrvice be delcted. He felt a contractor/builder could scrve in this capacity. The Remodeling Advisor Scrvice was deleted on page 2 and the application packagc will include a list ofremodelers ( contractors). I took the liberty to add a linc on page 4, #8. Last line. 2. 3. 4. 5. I plan to mect with a title company prior to the liRA Deccmbcr mceting. After review of thc final attached documents, please make any last minutes changes. HRA Agenda - 12/01/04 . Attachments: Transformation Summary Program Transformation 2005 Application Package Transformation Application Form Transformation Remodeler Form Transformation Commitment/Disbursement Form Transformation Pre-Remodeling Condition Report (Fred adjusting) . . 2 J 6 ~. I, " , ~ ~ DEVELOPMENT SERVICES Economic Devdopme;:nt Director Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollic.koropchak@ci.monticdhmn.us ---.,..-"'- --., -. ,.- MONTICELLO Housing and Redevelopment Authority in and for the City of Monticello, Minnesota TRANSFORMATION HOME LOAN PROGRAM SUMMARY The Monticello I lousing and Redevelopment Authority characterizes the Transformation Home Loan as an "incentive loan". The incentive is just a little more financing with terrific tcrms, so that a homeowncr may feel equipped to move forward on their remodeling projcct. To apply for the loan, the cost of your remodeling project must be $50,000 or morc. The loan may be 20% of your remodeling projcct, when the cost of remodeling is $50,000 or morc. The maximum loan amount is $20,000. The loan is interest- free, and is payable upon salc of your property or forgiven after seven years. Limited to core city location, assessed market values of $150,000 or less, and owner-occupied single-family detached home. . CaJl the Monticello Transformation Line at 763-271-3208 for information and to pick up an Appl ication Package at City Hall, 505 Walnut Street, Suite 1, Monticello, MN. . . Contact a Local Lendcr of your (applicant's) choice. . Call the City Building Departmcnt at 763-295-3060 for an appointment to assess the condition of your home (Pre-Remodeling Condition Rcport.) A onc timc report at no cost to applicant. Must qualify to proceed with Transformation Home program. . Select a Remodeler (Contractor) and have Remodeler complete the Remodeler Form if necessary. . Return completed Loan Application Form to City llall for review and calculation of Transformation Home Funds. Building plans must be approved and all setback and zoning requirements must be met prior to commitment offimds. . A letter of commitment veri fying the reservation of Transformation Ilome funds will be provided to the applicant and lender. . The Transformation] Iome Funds will be deposited in an escrow account and disbursed by the title company. Final payment of funds must be disbursed by no later than six months afier the lender's date of closing . Monlicello 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) 27] -3272 . . DI~VELOPMENT SERVICES Phone: (763)271-3208 Fax: (763) 295-4404 E-mail: ollie.koropchak@ei.montieello.mn.us Economic Developmcnl Director .--.. .--"-'. -. .-.- MONTICELLO Housing and Redevelopment Authority in and for the City of Monticello, Minnesota TRANSFORMATION HOME LOAN PROGRAM SUMMARY The Monticel1o Housing and Redevelopment Authority characterizes the Transformation Home Loan as an "incentive loan". The incentive isjust a little more financing with terrific terms, so that a homeowner may feel equipped to move forward on their remodeling project. To apply for the loan, the cost of your remodeling project must be $50,000 or more. The loan may be 20% of your remodeling project, when the cost of remodeling is $50,000 or more. The maximum loan amount is $20,000. The loan is interest- free, and is payable upon sale of your property or forgiven after seven years. Limited to core city location, assessed market values of $150,000 or less, and owner-occupied single-family detached home. . Call the Monticello Transformation Line at 763-271-3208 for information and to pick up an Application Package at City llall, 505 Walnut Street, Suite 1, Monticello, MN. . Contact a Local Lender of your (applicant's) choice. . Call the City Building Department at 763-295-3060 for an appointment to assess the condition of your home (Pre-Remodeling Condition Report.) A one time report at no cost to applicant. Must qualify to proceed with Transformation Home program. . Select a Remodelcr (Contractor) and have Remodelcr complete the Remodeler Form if necessary. . Return completed Loan Application Form to City Hall for review and calculation of Transformation Home Funds. Building plans must be approved and all setback and zoning requirements must be met prior to commitment (~ffimds. . A letter of commitment verifying the reservation of Transformation Home Funds will be provided to the applicant and lender. . The Transformation Home Funds will be deposited in an escrow account and disbursed by the title company. Final payment of funds must be disbursed by no later than six months ({fieI' the date afclosing. Monlicello City Hall, 505 Walnut Slreet, 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 DEVELOPMENT SERVICES Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollie.koropchak(dlci.monticcllo.mn.us Economic Development Director -- Housing and Redevelopment Authority in and for the City of Monticello, Minnesota MONTICELLO TRANSFORMATION HOME LOAN 2005 APPLlCA nON PACKAGE PU RPOSE A "home transformation" means a major home remodel, increasing its livable space and its value. Residents who enjoy living in the core city and know thc benefits of living within walking distance of the Mississippi River, the community center, and the schools are choosing to adapt and redevelop thcir existing homes to meet their current needs. The Transformation Home Loan was developed to provide incentives for homeowners or home buyers in Monticello to begin major redevelopment/remodeling activities. The Transformation Homc Loan seeks to promote and foster a vibrant core city by: . . Encouraging redevelopment of structurally substandard homes. . Encouraging home owner-occupancy. . Encouraging investment into the core city. . Increasing housing market value. TARGET AREA The Transformation J-Iome Loan program is available for cxisting single-family detached homcs located within the core city described as: · North of 1-94. · East of Otter Creek . South of Mississippi River. . West of Ilospital and Middle School. TARGET VALUE The Transformation Home Loan program is availablc for existing single-family detached homes with a 2004 assessed market value of $150,000 or less. . 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 . . . TARGET CRITERIA The Transformation J lome Loan program is available for existing single-family detached homes that meet the redevelopment qualification requirement of structurally substandard as defined by Tax Increment Financing Law, 469.174. "S'tructurally substandard" shall mean containing defects in structural element or a combination ofdeJlciencies in essential utilities andfacilities, light and ventilation, .lire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total sign~ficance to.iust~fy substantial renovation or clearance. A building is not structurally substandard ~lit is in compliance with the building code applicable to new buildings or could be modUied to satisfy the building code at a cost (~lless than 15 percent qfthe cost (~f constructing a new structure (~fthe same square footage and type on the site. The municipality mayfind that a building is not disqual{fied as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age (?fthe building, the average costs qj'plumbing , electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared qfthe cost qj'repair and rehabilitation of the building. FtJNDING SOtJRCE The Transformation Home Loan program is a one-year pilot program commencing January 1, 2005, with a limited amount of funds, $150,000. Program Features: .. Pre-Remodeling Condition Report. The Monticello Building Department must assess the age of mechanical systems, measure square footage, and otherwise note the condition of the home prior to remodeling. Please call 763-295-3060 for an appointment. .. The Transformation Loan. The Monticello Housing and Redevelopment Authority (HRA) characterized the Transformation Loan as an "incentive loan". The incentive is just a little more financing with terrific terms, so that a homeowner may feel equipped to move forward on their remodeling project. To apply for the loan, 2 . . . the cost of your remodeling project must be $50,000 or more. The loan may be 20% of your rcmodeling project, when the cost of remodeling is $50,000 or more. The maximum loan amount is $20,000. The loan is interest-free, and is payable upon sale of your property or forgiven after seven (7) years. I f you have questions, call 763-271-3208. Funds are limited. Application Procedure: 1. Prior to starting your proicct, obtain this application package which includes the builder requiremcnts and summary of design consideration, loan application form, a list of remodclers (contractors), and a remodelcr form for remodelers who havc not worked under the program prcviously. 2. Submit a complete application. A commitment of funds can only be made when all required items have been receivcd. Please note: The ('ily of Monticello 's Building Department must approve all building plans, and may have requirements independent (?f'loan requirements. All setback and zoning requirements must also be met. 3. Applications will be revicwed on a first-come, first-served basis, with priority being given to projects that are most ready to move fl)fward. Project readiness will be determined by those that have completed drawings, have total project funding in placc (e.g. havc a loan commitment or have closed on mortgage financing), and lor have a remodeler under contract. Funding will not be held for projects that are not ready. 4. Once an application and other required documcnts have been received and reviewed, a loan commitment will be made. Mceting the eligibility criteria does not entitle an applicant to funding. The distribution of funds is thc sole decision of the Housing and Redevelopment Authority. Conditions of the Transformation Incentive Loan: 1. Submitted applications will be rcviewed for appropriateness and completencss. Projects gcnerally must be value-added improvements such as rcnovation or expanding space. Plans will be reviewed for design considerations. 2. The loan will be calculatcd at up to 20% of the initial contract price ifthc contract pricc for remodeling is $50,000 or more, but not to exceed $20,000. The commitment of funds is made at the beginning of the project. <'l -, . . . <"l -, . Funds are limited. You may want to call ahead of time to find out if funds are still available. 4. A Pre-Remodeling Condition Report is required by the HRA to meet city financing and auditing requirements. A property evaluator (not an appraiser) contracted by the HRA will spend approximately an hour at your home to assess the age of mechanical systems, measure square footage, and otherwise note the condition of the home prior to remodeling. This is a one-time report for lIRA records and incurs no cost to the homeowner. 5. Loans will not be considered for work in progress or work completed. The Transformation Loan can only be considered for projects not yet begun. 6. You will be sent a commitment letter verifying the reservation of funds to be provided at closing. A copy of the letter will be provided to your lender. 7. A copy of a letter of commitment from your lender verifying approval of the primary loan is required. 8. The Transformation Home Loan funds will be deposited in an escrow account and disbursed by a title company. Upon satisfactory verification of work in progress or upon completion, the escrow account will be drawn upon in pro-rated increments simultaneously as funds are drawn upon from the primary loan to make payments to the remodcler. Work must be completed prior to final disbursement. 9. The Transformation Home Loan shall be secured by a Mortgage Deed and Note. 10. Final payment of the committed Transformation Loan must be disbursed by the title company by no later than six months after the date of lender's closing. Please be informed that financial data shall be submitted to the Lender for purposes of this loan application. However, the fact that you apply for a Transformation Home Loan, the final loan amounts are considered public data according to Minnesota Statute Chapter 13. General Remodeler and Design Criteria: Thc HRA does not recommend any particular remodeler. Selected remodelcrs must complete a Rcmodeler Form, and comply with the general critcria cstablished by thc Monticcllo lIRA. "Sweat equity" may bc applied toward eligibility costs associated with interior improvements such as painting, Hooring, etc. or by a Minnesota Licensed Residcntial Contractor and when verified by a certificd appraisal at the applicant's expense. 4 Summary of Remodeler ReQuirements It is the homeowner's rcsponsibility to check on contractors thoroughly before selecting them. Your builder should: I. Demonstrate financial capability by providing a statement from a financial institution of sufficient construction capital. Possess adcquate Builder's Risk, Comprchensive Gencral Liability and Worker's Compensation insurance coverage. Have a written warranty policy to be sharcd with the homeowner or written evidence of commitmcnt to pcrform warranted repairs required by the Minnesota Statc Statute. . 2. .., _L If thc remodeler has not participated in the Transformation Home Program previously, the lIRA will require a RemodelerForm to be completed. A form is attached. . . Summarv of Housing Design The liRA will require the following: 1. Each home shall remain a detached single-family dwelling. 2. Each home shall be owner-occupied. 3. Garage spacc may bc maintained or expanded, but not reduccd. 4. The house building lines, roof lines, doors and window placement should minimize blank wall mass. House and garage orientation to the street must prcsent a balanced and pleasing view from all sides. 5. Exterior materials should be low maintenancc. Masonite type siding materials are not acceptable. 6. The sitc must be fully landscaped, including attractively placed foundation plantings and complete sod installation, lot linc to lot line. 7. Adjoining propcrties must not be disturbed by the construction process. Construction planning is important since five foot sidc yard sctbacks limit construction space. 8. The construction process, site grading, and the finished structure must improvc or not havc a detrimental impact on storm watcr drainage patterns in the neighborhood. Re- working an existing site grade to improve neighborhood drainage may be requested. If a roof is pitched towards neighboring homes, gutters may need to be installed to divert storm water, in addition to improved grading. 5 Economic Development Director Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollie.koropchak(iz.ci.mr~nticello.mn.us DEVELOPMENT SERVICES -- Housing and Redevelopment Authority in and for the City of Monticello, Minnesota MONTICELLO TRANSFORMA nON HOME APPLiCATION FORM General Information: Name(s) ofOwner(s) (as they appear on title) _..-._.~,-~~~-~"._-_.-- Present Address -,._-,_.._.~-,~,~~._...----"-,.....--------',~"-"'_.._..- Phone Number(s) _._ Puture Address (if buying to remodcl), -"~,....---------._.-"'-'~,._~-~,._,."- Remodeling Information: Description of improvements to be done __ "-,.....-----------,._"~.,-"'_.,.- ---,_.,._.-"-,-,--,._.~-~.........-------~..,_..~~_.....---'~"-~~- . -~~......------"-,-~.,._'-,....--------'~~'-'-"--_. ,......--------'....-------"~-.__-.._J~--"---'-..-,.,-- When do you plan on remodeling? Name of Architect or Designer Name of Remodeler Attach a list of contractors if a general contractor is not being used. .-,--......-------" -~,-,-----'~-,-'_.,-'_.,--".- Financing Information: Estimated amount of contract $ __~ Appraised value of property upon completion (if lender financed) $- Name of Lender _......--------"-'- ,.,-- Type of financing (second mortgage/refinance/home equity line, etc.) --------- Anticipated closing date _. ---. -- Source of financing ifnot lender financed __---. .._---- Requirements for a complete application Check orf all that apply; provide explanation fix those not completed. __.__ A eopy of the cost estimate(s) and description of improvements is attached. __ Building plans are attached (both floor plans and exterior elevations). __ Site plan is attached (fcw additions that require crawl space or foundation). __ Ready to schedule a pre-remodeling condition evaluation (arranged by the Monticello HRA). . Please explain if an item is not checked: .__.______-----.- Monticello City Hall, 505 Walnut Street, Suite 1. Monticello, MN 55362-RR3] . (763) 295-2711 . Fax: (763) 295-4404 Office or Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170. Fax: (763) 271-3272 Transformation Home Application Form . Page 2 Send cOlnpleted application and attachments to: Monticello I-IRA 50S Walnut Street, Suite 1 Monticcllo, MN 55362 Attention: Ollie Koropchak To the fullest extent pcrmitted by law, thc Homeowner agrees to defend, indcmnify and hold harmless the HRA and thc City of Monticello, their officers, agents and employees from and against all claims, loss, damage, costs and expense arising from bodily or personal injury or sickness, illness, or death of persons or damagc to property rcsulting from or allcged to have rcsultcd from the Remodeler's work and opcrations. Owner Owner Date Date . . T r<1l1Sronnatiollappli~i.llion, 1'01"111 DEVELOPMENT SERVICES Economic Development Director Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollie.koropchak(il;ei.ll1onticello.mn.us -" .--. .-- ._" .--- .-..- -- Housing and Redevelopment Authority in and for the City of Monticello, Minnesota MONTICELLO TRANSFORMATION HOME - REMODELER FORM Business Namc: _.-'._-~ .-,-,......-------'._,~"~,--'~'-~-"- Phone No.: Fax No.: _",_,,~__..-,-- _._~."._r~-'.-"'_.'.~'_.--- E-Mail: ._",-_.,,-,.,-,,~- Busincss Address: -_.'........-------.~-----'" _......-------"'-,._~"-~~ Contact Pcrson: -_......--------'"._,--,....--------.."-,-"~._,.~~-"'_.,-~._.,- . 1. How many years has your company becn in business? ------------ 2. In the past three years, what has becn the avcragc number of homcs your company has remodeled pcr year? _ --- 3. In the past thrce ycars, what has becn thc avcrage remodeling contract price by your company? -,._,~,.-.~",,~ 4. Attach copy of your company warranty policy. Yes No -~......-----........--------'~'-~ 5. You agree that you havc the ability, at all timcs during the term of the Remodeling Contract, to havc and keep in force the following minimum insurancc coverages: . COVERAGE: Workers Compensation Employer's Liability Comprchensive General Indcpendent Contractors Products/Completed Contractual Liability LIMITS: Statutory $300,000 131 & PD Includcd Included Includcd Included Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8!:\31 . (763) 295-2711 · Pax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362' (763) 295-3170' Fax: (763) 271-3272 Transformation Loan - Remodcler Form . Page 2 Personal Inj ury Liabi I ity "XCU" Liability (if applicable) Broad form Property Comprehensive Automobile for owned, hired, and automobiles Included Included Included $300,000 Bl & PO 6. You meet Minnesota state licensing requirements. Yes No 7. Please list at least three municipalities in whieh you have seeured remodeling permits within the past 3~5 years and indicate the name ofthc City staff person (building offieial or other) with whom you had the most contact. 1. 2. --,~~.....------'~,._~ 3. 8. Provide names, addrcsses and telephone numbers of at least five customer rcferences that we may contact as references. . 1. 2. _.._.'._.__.'-~'~'~~. " -'- 4. 5. .,_.-,~-_....----'-~'--'~'-- 9. Provide names, addresses and telephone numbcr of at least three major suppliers or sub- contraetors that we may contact as references. 1. 2. ~_.--,--~' .--.-.--.-,----"....------..-..- _._~~_......--------'-. -_.,~-_.~~_.,-'- " _1. .-.,_.-,-,--,-,_.--_._-~'--,._"....------....----------,._.....----',_.~- The information contained on this form may be provided to \enders, homeowners, and others interested in participating in Monticello Remodeling Programs. By' . ~_.......-------'~,_~,_.__-__~_'_M'._..'- Its: _._,_~_,_,,_~_....------.--"_J._.- . Date: ~,_.",_,._._",__._J--"._'_.'._'.- Rcmoddcr. limn DEVELOPMENT SERVICES Economic Development Director Phone: (763)-271-3208 Fax: (763)-295-4404 E-mail: 9.lEe.koropehak(ii.ci.monticello.mn.us -,-..-.- - -., -.-'-.- Housing and Redevelopment Authority In and for the City of Monticello, Minnesota MONTICELW TRANSFORMATION HOME LOAN COMMITMENT/DISBURSEMENT Complete Application: Remodeling Advisor Letter ___ Builder Requirements and Summary of Design ----- Loan Application Form __- Remodeler Form Pre-Remodeling Condition Report requircd by HRA. ~--------------,- Commitmcnt Letter from Lcndcr. Remodeling and Site Plans reviewcd. Building Permit issucd. -~~,-"-'-~--' . HOUSING AND REDEVELOPMENT AUTHORITY COMMITMENT OR NON COMMITMENT: LOAN NUMBER: BORROWER: -,_.~~~ ADDRESS or SITE: MAILING ADDRESS: TOTAL PROJECT COST: LOAN AMOUNT: _....--------~~'-' LOAN RATE: Interest Free LOAN PAY ABLE UPON SALE OF PROPERTY OR FORGIVEN AFTER SEVEN (7) YEARS FROM LENDER'S CLOSING DATE or ______---,20 "-' rEE NO COST TO HOME OWNER OR HOME BUYER. COMMITMENT: YES NO .-..--------......---------....------------..-.- ,-~,-,~,--,-~-"...----."_.- .-...-------.-,~'_.-'- ,~---_.~-_._-- ......---------.--.-- A motion was made by HRA Commissioner __--- to approve a (commitment _ no commitment) of Monticello Transflmnation Homc Loan Funds in the amount of _---- to home owncr/buyer _____-- ._ this __ day of____--, ----. Seconded by liRA eommissioner _------------------. YEAS: NAYS: ABSENT: . Transfl)fmation Home Loan disbursed ___-.-- ' ___' by Check No. ------- to __-----.----.-- HRA Treasurer ------.-.--- Monticello City Hall, 505 Walnut Street, Suite 1, 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 DEVELOPMENT SERVICES Economic Development Director Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollie.koropchak(ivci.ll1onitccllo.mn.us MONTICELW Housing and Redevelopment Authority in and for the City of Monticello, Minnesota TRANSfORMATION HOME LOAN PRE-REMODELING CONDITION REPORT The Pre-Modeling Condition Report is a summary of the assessment conducted by the Monticello Building Department. Thc assessment for the purpose of satisfying the "structurally substandard" requircments as defincd by Tax Increment Financing Law, 469.174. The structure was assessed for its physical clements as it relates to structural soundness (size, type, and age of building) or dcficieneies in basic building and encrgy codes such as but not limited to essential utilities and facilities, light and ventilation, firc protection including adequate egress, layout and condition of intcrior walls. Property located at .. by _~_ Owner Monticcllo, MN, revicwed ,20 on PID# . Summary of Assessment and see attached spread sheets: \0 _ ~ ~.Jld ~- }.9.. \J \ \rY~ ~"'Q~t Q~ . Said property meets the requirements of the Tax Increment Financing Law, 469.174. ___ Yes No. Estimated Market Value 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 . Qj Cti o . .... Q) en 3: en 0) :ij: ~ ":;;: 0 '0 0)_'0 CI:a..<t: tJ) G) (,) oS J.. 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C Q) E a. o - Q) > Q) C .. ~ >- a: <C ::2: ::iE ::> en ----' (;R- 0'7 (;R- 0'7 (;R- 0'7 ~ b E- 0 0 2- t5 t5 0 0 u 0 (;3 "'0 ...... 0 Q) ?- m E +:: en t5 w 0 0 ...... C ::> Vf c: o ~ t; en CD o .... Q) CD ~ E :> ro Q) Z a: w o o o . ~ ....::- ~ ~ ~':."".'.'..." d. ;-'.~\ ~ ,>.. <~~i>\t'\~ CITY OF BONITA SPRINGS ANNOUNCES THAT FUNDS ARE NOW AVAILABLE AND HOME IMPROVEMENT APPLICATIONS ARE BEING ACCEPTED . The City of Bonito Springs olong with Lee County Deportment of Humon Services is now occepting pre"opplications through our Home Improvement Program for low and moderate income families with a preference given to Elderly (62 years) or disabled homeowners with property in the City of Bonita Springs. The Home Improvement Program is funded through the Department of Housing & Urban Development (HUD) Community Development Block Grant Program. The program is designed to assist homeowners with repair or replacement of major housing components, which have failed or are in danger of foiling. Examples are leaking roofs, dangerous electrical systems, bad plumbing, etc. Under this program, the City will provide on outright grant of up to 67% of the rehabilitation cost with a not to exceed amount of $5000. A mortgage will be placed on the home for a specified period with no monthly principal or interest payments. The mortgage is self-amortizing and becomes fully satisfied upon completion of the mortgage period. Should the property be sold or title transferred during the mortgage period, the homeowner will be required to pay back a pro-rated amount of the balance; otherwise no repayment will be required. Applications will be taken on a first come"first served basis. Qualifications for this program are based on family income guidelines which do not exceed the limits set forth by HUD as shown below: FAMILY SIZE 1 2 3 4 5 6 7 8 INCOME LEVEL NOT TO EXCEED $30,300 34,600 38,950 43,300 46,750 50,200 53,650 57,150 . The homeowner should be current on all mortgages, garbage bills, property taxes, and any other special assessments. For odditional information or for pre "application, call Ken Hoffman, Community Project Coordinator at (239) 390" 1 000. City of Bonita Springs 9220 Bonita Beach Road Suite 111 Bonita Springs, Florida 34135 - ~c.<l.......o ~ ~\, ~~ . ~1~ . . . HRA Agenda - 12/01/04 7. Consideration to review desil!n sketches for marketing: core city develooment and the Transformation Loan Program. A. Reference and Backl!round: At the November meeting, the HRA commissioners agreed to move forward with the Transformation Loan Program commencing January 2005. The commissioners also requested marketing concepts be presented at the December meeting. I met with Lynne Dahl, Design for Print, on November 9, 2004. I presented ideas and Monticello information for a brochure patterned off the concept used by Richfield. Lynne was asked to get photos from Jeff O'Neill and prepare sketches for the commissioners to review at their December meeting. Lynne unable to get the photos via a CD until November 22, may not have anything ready for the agenda pack, in which case, the sketches will be presented at the meeting. The HRA's cost for the prepared sketches is $150. The concept for the brochure is actually marketing the core city of Monticello for development using a map identifying amenities within the core area and newly constructed housing options. Concept: Why remodel or construct in the core city? Additionally, the Transformation Program is marketed. This brochure could be used by lenders, real estate agents, builders, and a great tool to spur energy for downtown redevelopment. Based on the recommendation of Paul Kleinwachter, First Minnesota Bank, a summary of the Transformation program was prepared (previous agenda item). It is my thought, the summary and brochure would be mailed to owner-occupied residents within the core area. Review and discuss design sketches at the meeting for recommendation. . . . HRA Agenda - 12/01/04 8. Consideration to discuss term expiration dates of HRA Commissioners. At the November HRA meeting, Commissioner Fair asked to research the terms of the HRA commissioners for discussion in December. As you recall, at the llrst meeting in January of each year, the Council appoints or, in most cases, re-appoints the commissioner whose term expires in Decembcr to anothcr five-year tcrm. Per the City records, here are the terms ofthc liRA commissioners: Commissioner Brad Barger Darrin Lahr Bill Fair Stcvc Andrews Dan Frie Term cxpires 12/2004 12/2005 12/2006 12/2007 12/2008 Although the HRA will meet prior to the January 10 Council meeting, please discuss for direction. As you can see, Brad Barger's term is up. Brad, will you consider another five years? It is assumed, the other commissioners will serve-out their term. Secondly, the lIRA will be appointed a new Liaison by the Council in January. Please discuss ft)f direction. Monticello HRA 505 Walnut Avenue, Suite 1 Monticello, MN55362 . November 11, 2004 Invoice # 23183 MC100-01 General Professional Services 10/25/2004 MTR Work and meeting on industrial park 10/27/2004 MTR Work on industrial park model Total Due This Month: Status of Account: Current $343.75 30 Days $62.50 60 Days $0_00 90 Days ___ $0.00 . \-\~\tG~~ ~~-- ()}( f() Pl~\Y?_ olll~~ Code: __?~oL\ ~~~ $LJ.--" Jqjtial .~,~_...".,._."~._,-"""",,-~"'''' Hours Amount 1.75 1.00 218.75 125.00 2.75 $343.75 120+ Qays $0.00 Total $406.25 \:Jt\ "- V' ~ '0~C~~,,- PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO: . . EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 . . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 Tax 10 No. 41-1225694 November 19, 2004 Statement No. 63913 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 Through October 31, 2004 MN190-00101 General HRA Matters , .. "ft'! ~. .., ,tl3.a1. _...~ ,...--- ' ':l\.~. MN190-00116 Transformation Home Loan Program ~. 'Ii.JIlI. }u-Iu M N 190-00117 Otter Creek I ndustrial Park ,.. I 3 . ~'I (,!, 0 L ,",0 ~ <) I declare, under penalty of law, that this account, claim or demand is just and correct and that no pa of it has been paid. OK TO PAY? ~ Code: Initial <-\~ S? '2.. -?o'-t~ 108.00 ? \ 3 . L\ \., s? -:>. . -c. c '\. ~ 135.00 ;).oI:>Y'~ {)(,,4, 270.00 Total Current Billing: 513.00 . . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 November 19, 2004 Invoice # 63913 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 MN190-00101 General HRA Matters Through October 31,2004 For All Legal Services As Follows: Hours 10/21/2004 SJB Review Home Loan program, research authority, for same. 0.60 Total Services : $ Total Services and Disbursements: $ Amount 1 08.00 108.00 108.00 . . . Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello October 31, 2004 MN190-00116 Transformation Home Loan Program Through October 31,2004 For All Legal Services As Follows: 10/25/2004 SJB Meet with O. Koropchak, R. Wolfsteller re: Home Loan program. 10/29/2004 SJB Emails to/from O. Koropchak re: home loan terms. Total Services: Hours 0.50 0.25 $ Total Services and Disbursements: $ Amount 90.00 45.00 135.00 135.00 . . . Page: 3 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello October 31, 2004 MN190-00117 Otter Creek Industrial Park Through October 31,2004 For All Legal Services As Follows: 10/25/2004 SJB Meet with O. Koropchak, R. Wolfsteller. Total Services : Hours 1.50 $ Total Services and Disbursements: $ Amount 270.00 270.00 270.00 . 10. a) b) c) d) e) f) . g) h) i) j) . ARA Agenda - 12/01/04 Consideration of Executive Director's report. Standard Iron - The closing of the Standard Iron property to Walbord, Inc., fridley, was scheduled to take place on November 1 S, 2004. Their attorney drafted a Consent and Release relative to the Contract for Private Development for TIF District No. 1-13. This district has been decertified, closed, and excess tax increment returned to the County. Attorney Bubul did review prior to my execution. Certification of Decertified TIF Districts - The County Auditor confirmed and returned the certifications for the five TIf districts decertified in 2004 which were than forwarded to the State Auditor. Muller Theater - I have had two inquiries of interest in the vacated theater downtown. WSIIndustries. Inc. - The IDC is hosting a tour and welcome of the WSI facility on Tuesday, December 7, at 8:00 a.m. All HRA commissioners are welcome. Production Stamping, Inc. - On November 12, I dropped on the wcleome plaque from the City of Monticello which was dated April 2003. I've continuously attempted to schedule a welcome and tour of the facility with owner, Les Wurm, but have been unsuccessful. Otter Creek Crossing - The Council approved the preliminary and final plat for Otter Creek Crossing on November 22,2004, with a closing date of December 7,2004. The plat was approved without an access easement via the Haul Road. Staff thinks the city can get the easement upon development of Outlot F. The City Attorney added if the road was critical to the City and prior to development of Outlot F, the City could consider eminent domain. Otter Creek Business Campus - The city request for zoning of the 120 acres is on the Planning Commission agenda of December 7 and the City Council agenda of December 13. The proposed covenants will also be presented at the Council meeting. Marketing Committee - I need to schedule a meeting. I've done some research on the web for potential advertisement options. I've also asked Lynne Dahl and Michelc I lartwig for ideas. Also have name of someone more in puhlic relations field. At the meeting, the committee needs to decide on an advertising budget and plan for submission to Ken Stabler, Xcel, by the 15th of December. BRE - Sunny Fresh office building exterior looks great. The IDe will hold a meeting there when completed. Suburban and Tire Service Equipment expansion moving along. Need to check with Tapper about lease out space. Lcads - Dahlheimer Distrihution pending County Road 18 Interchange. 30,000-50,000 sq ft mfg/oflice facility - manufactures hi-tech pumps including medical pumps for Boston Scientific. Big Lake offer $1 per acre. Meeting with realtor on Deccmher 3. 50,000 sq n distribution with 6,000 sq it officc. National company looking to lease. From two different real estate agents. Gave Tapper's number and Ron/Dee Johnson address. 28,000 sq It manufacturing facility - Looking at Hanover. Monticello too far out. . CONSENT AND RELEASE This Consent and Release ("Consent and Release") is dated as of November ~, 2004 by the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, a Minnesota body corporate and politic ("Authority"). R E C I TAL S: A. Authority conveyed the real property legally described as Lots 7 and 8, Block 2, Oakwood Industrial Park, Wright County, Minnesota ("Redevelopment Parcel") to Demeules Family Limited Partnership ("Demeules") by Quit Claim Deed dated September 27, 1993, filed of record September 30, 1993 as Document No. 536468 COeed"). . B. The Deed provides that the Redevelopment Parcel is subject to covenants, conditions and restrictions as provided in that certain Contract for Private Redevelopment dated September 27, 1993 ("Redevelopment Agreement") as set forth in the Deed. C. A Certiticate of Completion has been issued as provided in the Redevelopment Agreement, and Demeulcs desires and intends to transfer a portion ot' the Redevelopment Parcel to Para, LLC, a Minnesota limited liability company. NOW THEREFORE, in consideration of the foregoing, Authority hereby consents to the transfer of the real property legally described as t'ollows to Para, LLC ("Transfer Parcel"): r ,ot 8 and that part of Lot 7 West of the East 207.62 feet of said Lot 7, Block 2, Oakwood Industrial Park, according to the recorded plat then:;oL Wright County, Minnesota, and hereby releases Demeules from further pert"l.mnance obligations of Demeules pursuant to the Redevelopnlent Agreement with respect to the Transfer Parcel; and Authority hereby waives the requiretnents that Detneu!es provide to !\uthority wri tten evidence of transfer of the 'T'ranslcr Parcel to Para, 1,[ ,C and that Para, LL(~ expressly assumes Demeules's obligations pursuant to . the Redevelopment Agreement with respect te> the Translcr Parcel. . . . IN WITNESS WHERli~OF the Authority has duly executed this Consent and Release to be effective as of the date first written above HOUSING AND REDEVELOPlVIENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA fly ~ ~~h~ \~0'\O ~S)~ [ts Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF WRIGHT ) /C y.- i( " Theloregoing instrument is acknowledged before me this) t-? day of >>()'YcJt!",v,th r ,2004 by Ollie Koropchak, the Executive Director of the Housing and Redevelopment Authority of the City of Monticello, Minnesota, a public body politic and corporate, on behalf of the Authority. ) . //--;::7;/4>//' J//~.2>~~{ I/LJ--/icLLLd" dJ/ ..~ / t" /' Notary Public -, - THIS INSTRUMENT WAS DRAFTED BY: MOSS & BARNETT (PBZ) A Professional Association 4800 Wells Fargo Center 90 South Seventh Street Minneapolls, MN 55402-4129 Telephone: (612) 347-0300 72330c[v2 2