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HRA Agenda 05-03-2000 . . . Thanks for responding to the May 3 Workshop hosted and chaired by the BRA. Attached is the itinerary for the workshop and as you can see we have an aggressive itinerary and an important subject matter to cover. DOWNTOWN REDEVELOPMENT The workshop will begin promptly at 5:30 p.m. as the MOAA meets at 6:45 p.m. and the HRA at 7:00 p.m. It is suggested, if your schedule permits, to arrive at 5:00 p.m. to network and enjoy the pizza and beverage. . . . ITINERARY FOR WORKSHOP AMONG THE HRA, CITY COUNCIL, AND LENDERS Wednesday, May 3, 2000 - 5:30 p.m. City Hall- 505 Walnut Street - Bridge Room HRA: Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger, Steve Andrews, and Bob Murray. CITY COUNCIL: Mayor Roger Belsaas, Clint Herbst, Roger Carlson, Bruce Thielen, and Brian Stumpf LENDERS: Tom Lindquist and Dale Lungwitz, Norwest Bank Kevin Doty, First Minnesota Bank Jim Amundson, Marquette Bank Greg Hoblen and Bill Endres, First National Bank of Elk River STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak. GUESTS: Amanda Gaetz, MCP, Ron Hoglund, EDA, and Dick Frie, Planning Commission. WORKSHOP OBJECTIVE: 1. Commitment to proceed with redevelopment. 2. Define target area or areas. 3. Recommend HRA to begin research for solicitation of RFP. PROCESS TO OBT ALN OBJECTIVE: Background - Downtown Revitalization/Riverfront Plan and Assessment Downtown Redevelopment TIF District Plan and Assessment North Anchor Group Recommendation. Present - Current status of Redevelopment District and <Knock-Down" Rules. Viewpoints of lenders relative to downtown redevelopment. Small Cities Development Program. Market Demand. Future - Commitment. Target Area. Research. OTHER ISSUES RELATIVE TO ECONOMIC OR REDEVELOPMENT WITHIN THE CITY OF MONTICELLO. . . . -* ~ o Publicorp Tax Increment Financing Seminar 2000 For economic development districts and renewal and renovation districts: the local contribution is required to be made at an amount equal to 10% of the annual tax increment. o For redevelopment districts, housing districts, hazardous substance subdistricts, and soils condition districts: the local contribution requirement is an amount equal to 5% of the annual tax i~rement. o Qualified Housing districts are not subject to LOA/HAeA penalty and require no local contribution. What exactly is an eligible "project cost" and how the local contribution should be documented in the tax increment plan is not yet clear. . Time Restrictions (other than duration) o 3-year rule. Within three years after the date of certification, one of three things must happen for the district to remain alive: bonds are issued to aid the Project (excluding industrial revenue bonds); the authority acquires property within the TIF District; or the authority causes public improvements to be constructed within the TIF District. o \'- 0 '<" \: '3: \2- 4-year knock down rule. Increment will not be collected from a particular parcel unless, within four years after the date of certification, demolition, rehabilitation or renovation of property or other site improvements has taken place by either the authority or the owner in accordance with the TIF Plan. Construction or major construction of an adjacent street qualifies as an improvement to a parcel, but utility improvements do not. Uthe parcel is "knocked-down" and later improved, it is re-instated in the TIF District but at the market value at the time of the reinstatement. o 5-year rule. For increment to be considered a spent expenditure within the TIF District, one of the following must occur within five years after certification of the district: (I) increment is paid to a "third party" for a TIF-eligible "activity"; (2) bonds, the proceeds of which are used to finance an activity, are sold to a third party and proceeds are reasonably expected to be spent within the five-year period (with certain limited exceptions); (3) binding contracts are entered with a third party for performance of an activity, and increment is spent under the contract; or (4) costs are incurred by a "party" and revenues are spent to reimburse a party. The term "third party" excludes the party receiving TIF assistance and the "municipality or the development authority or other person substantialIy under the control of the municipality." Therefore, clause (4) permits the typical "pay-as-you-go" reimbursement where the initial costs are incurred by the developer with the 5-year period. See Section III.B. How to Set Up a TIF District - 17 \l'INESo-" ~_ "1 .,.. -Trade&- - Economic . Development www.dted.state.mn.us 500 Metro Square, 121 7th Place East Saint Paul, Minnesota 55101-2146 USA Program Purpose: How It Works: Eligible Applicants: Minimum Requirements: . Eligible Projects: . Small Cities Development Program To provide decent housing, a suitable living environment and expanding economic opportunities, principally for persons of low-and-moderate income. Provides federal grants from the U.S. Department of Housing and Urban Development (HUD) to local units of government on a competitive basis for a variety of community development projects. Cities and townships with populations under 50,000 and counties with populations under 200,000. Indian tribal governments, which can receive funds directly from HUD, are ineligible for this program. Proposed projects must meet one of three national objectives: 1. Benefit to low-and-moderate income persons; 2. Elimination of slum and blight conditions; or 3. Elimination of an urgent threat to public health or safety. In addition, proposed project activities must be eligible for funding, project need must be documented, and the general public must be involved in the application preparation. State program rules subdivide grant funds into three general categories: 1. Housing Grants. Small Cities Development Program (SCDP) funds are granted to a local government which, in turn, loans funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. SCDP funds may also be used to assist new housing construction projects. Funds may also be used for land acquisition, site improvements, infrastructure or housing unit construction. In all cases, housing funds must benefit low-and-moderate income persons. 2. Public Facility Grants. SCDP funds are granted for wastewater treatment projects, including collection systems and treatment plants; fresh water projects, including wells, water towers, and distribution systems; storm sewer projects; flood control projects; and, street projects. -over- _ Eligible Projects: . (Cont'd.) Maximum Available: Other Funds Required: Terms: Applications Accepted: Grant Awards: . Approving Authority: Disbursement of Funds: Contact 2/00 . 3. Comprehensive Grants. Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building renovation/construction, purchase of equipment, or working capital. The most common economic development activity is rehabilitation of local commercial districts. The maximum grant award for a Public Facility or Housing project is $600,000. The maximum grant for a Comprehensive project is $1.4 million. The amount of other funds required is variable and contingent on the project type, other available sources offunds for the project, and the financial capacity of the applicant and local benefitting residents. The length of project period is normally between two and three years, depending on the size and scope of the project. Part I pre-applications of the Business and Community Development application can be submitted year-round. Complete applications (including Part II) must be submitted by October 1 of each year. The annual review and ranking period will commence on October 1. Grant awards will be announced each March. Department of Trade and Economic Development. Grant moriies are disbursed as project costs are incurred. Business and Community Development Division of the Minnesota Department of Trade and Economic Development at 651/297-1291 or toll~free at 1-800-657- 3858. . 1. 2. 3. 4. . 5. 6. 9. 10. 11. 12. . 13. AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, May 3, 2000 - 7:00 p.m. City Hall- 505 Walnut Street - Bridge Room MEMBERS: Chair Damn Lahr, Vice Chair Dan Frie, Brad Barger, Steve Andrews, and Bob Murray. COUNCIL LIAISON: Brian Stumpf OFFICERS: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recorder Lori Kreamer. Call to Order. Consideration to approve the HRA minutes of April 5, 2000. Consideration of adding agenda items. Consent Agenda. A. Consideration to approve the Certificate of Completion for the St. Cloud Hospital project. Consideration of items removed from the consent agenda for discussion. Continued - Consideration to accept the hourly rate increase request from the HRA financial consultants and review other financial consultant proposals. 7. Consideration of an update from Scott Rolfe relative to the Lease Agreement between the HRA and SPS Services, Inc. 8. Consideration to discuss for determination the selection and compensation ofthe Executive Director of the HRA per the Bylaws. Consideration to discuss and summarize special meeting held at 5:30 p.rn. Consideration to authorize payment of the monthly HRA bills. Consideration of Executive Director's Report. Other Business. Adjournment. Next HRA meeting, June 7,2000. . . . HRA Minutes 04/05/00 ANNUAL MEETING MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, AprilS, 2000 - 7:00 p.m. City Hall - 505 Walnut Street - Bridge Room MEMBERS PRESENT: Chair Bob Murray, Dan Fric, Brad Barger and Council Liaison Brian Stumpf MEMRERS ABSENT: Vice Chair Darrin Lahr and Steve Andrews. OFFICERS PRESENT: Treasurer Rick Wolfsteller, Executive Director Ollie Koropehak, and Recorder Lori Kraemer. GUESTS: Steve Dejong, President, Profile Powder Coating Brad Stevens, Security State Rank, Albertville. 1. Call to Order. Chair Bob Murray called the meeting to order at 7: 15 PM. 2. Consideration to approve the HRA minutes of March L 2000. and special meetinQ of March 14,2000. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO APPROVE THE MINUTES OF' THE REGULAR HRA MEETING OF MARCH 1,2000 AND THE MINUTES OF THE SPECIAL HRA MEETING OF MARCH 14,2000. Motion carried. 3. Consideration of adding agenda items. None 4. Consent AQenda. None 5. Consideration of items removed from the consent agenda f()r discussion. None 6. Public Hearing - Consideration to approve the Lease Agreement between the HRA and SPS Services. Inc. Ollie Koropchak, Executive Director, advised the BRA that they were required to hold a public hearing upon leasing of property with the exception of residential leases. Upon -1- . . . HRA Minutes 04/05/00 the approval of the eonditionaluse permit by the Planning Commission and the City Council, Attorney Bubul was contacted to prepare the Lease Agreement per the 1 IRA motion of March I, 200Q, and the City Council approval of March 13, 2000. Scott Rolfe, Skippers Pools, contacted Koropchak on April 5,2000, advising that his insurance company would not supply him with a certificate of insurance, but assuring that Rolfe had sufTicient coverage. Rolfe stated he would continue with trying to get this certificate, but if he was unable to secure this he may not proceed with the agreement. The members discussed the possibility of approving the lease, subject to the issuance of the Certificate of Insurance. Chair Murray opened the public hearing, and hearing no response, the public hearing was closed. Koropchak attached a copy of the Lease Agreement prepared by Attorney Bubul via the direction of the HRA and the City Council, noting a copy was also faxed to Skipper's and given to .TeffO'Neill for review and comment. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO API'ROVE THE LEASE AGREEMENT BETWEEN THE HRA AND SPS SERVICES, INC. AS PREPARED AT A LEASE RATE OF $610.80, SUB.JECT TO THE CONDITIONS OF THE CONTRACT REGARDING THE RECEIPT OF THE CERTIFICATE OF INSURANCE. Motion carried. 7. Continuation - Consideration of an update relative to the Tax Increment Guarantee within the Contract for Private Redevelopment between the HRA and Jerald and Mary Schoen and consideration to take action relative to the deficiency. Ollie Koropchak, Executive Director, provided the staff report noting that Jerald and Mary Schoen were unable to attend the meeting. The tax increment deficiency increased significantly in years 1998 and 1999 because of the following combination: Decrease in classification rates, tax rate frozen at time of certification, and minimum increase to market value. However, if not for the reduction of classification rate, the property taxes would have increased signilicantly in 1998 and 1999. Koropchak advised that she had received a telephone call from Attorney Tebelius shortly after the last HRA meeting. With further explanation ofTIF, noting the HRA had mailed letters annually to the developer relative to the annual deficiency since January 1996, and that the lIRA would consider a payment schedule similar to another district; the Attorney appeared to be satisfied. Koropchak did call Paul Schoen on March 29 to inform him of the HRA meeting of April 5 and that this item would appear on the agenda. He would -2- . . . HRA Minutes 04/05/00 proceed to contact their attorney since he had not heard from him. According to Steve Bubul the correct deceriification date is June 10,200 I, ten years from the date the TIP Plan was approved. This means the last year the HRA will receive tax increment is for payable 2000. Again, the cumulative amount of the tax increment deficiency through calendar year 1999 is $12,426.80. It is estimated the tax increment deficiency in year 2000 will be about $5,000. For consistency with the negotiated offer to Bill Tapper, the HRA may suggest payment of$6,213.40 (one-half the $12,426.80) due and payable in 30 days from the BRA meeting or May 5, 2000, with the remaining balance of$6,213.40 due and payable May 5, 2001, and the tax increment deficiency of year 2000 due and payable May 5, 2002. Payment schedule without interest. Koropchak did note that BRA member Steve Andrews was consistent with his position stated at the March meeting. He would not be in favor of the payment schedule without interest. This was noted when Council Liaison Stumpf inquired why the payment schedule would be without interest. It is estimated upon decertification, the district will have a shortfall of between $5,000 to $15,000. Koropchak stated that Steve Schoen was comfortable with the payment schedule as noted in this report as alternative #1. A MOTION WAS MADE BY DAN FlUE AND SECONDED BY BRAD BARGER TO AUTHORIZE PAYMENT OF THE TAX INCREMENT GUARANTEE DEFICIENCY THROUGH CALENDAR YEAR 1999 IN THE AMOUNT OF $12,426.80 WITHOUT INTEREST AS FOLLOWS: : $6,213.40 Due and payable May 5, 2000 $6,213.40 Due and payable May 5, 2001 Calender Year 2000 Due and payable May 5, 2002 Motion carried unanimously. 8. Consideration to a - rove the Preliminar Develo ment A reement between the HRA and Profile Powder Coatin' Inc. authorizin the financial and Ie 'al consultants to be ,in preparation for establishment of TIF District No. 1-27. Ollie Koropchak, Executive Director, provided the report introducing Steve DeJong, President of Profile Powder Coating and Brad Stevens, Secruity State Bank of Albertville. Brad Stevens provided a description of the building and its location, noting that it is a wood powder coating company employing 30 to 50 employees. He also provided a break down of sources and uses in Exhibit A. He noted they are requesting TIF to continue with the project. '"' -.J- . /-IRA Minutes 04/05/00 Steve Dejong described the type of milling work that would be done at the new lacility. I Ie noted there would be approximately 16 to 24 unskilled positions and the remainder of the positions would be on a higher level. At the HRA meeting of March 14, the commissioners suggested a range of $1 00,000 to $125,000 ofTlf pay-as-you-go assistance to Profile Powder Coating based on the wage and job goals, proposed project, and TIF Cashf1ow. The Monticello TlF olTer does not include soil correction or site improvement costs. The FDA will consider approval of a $150,000 GMEF loan. Dejong did commit to Monticello on March 29. Commissioners Barger, Fric, and Murray either toured the existing facility or met with the company president and lender. . Charlie Pfeffer has a draft copy of the purchase agreement lor the 3.15 acres on the corner of Chelsea and Fallon Avenue and will begin the platting process as required. At present the lender has not completed the analysis of the business plan; however, Dejong is aware upon execution of the Preliminary Development Agreement and payment orthe $5,000, the risk becomes his. 110wever, the lender and his accountant have been a part of the recruitment process as well as the delegates from the Initiative Fund and State. The Central Minnesota Initiative Fund and the State are both interested in providing funds. Lenny Kirscht will prepare the State application on behalf of the City of Monticello. The TIF Plan and establishment of TIF District No. 1-27 will come before the HRA for approval in May. This will be an Economic District tor creation of jobs and increase in tax base for a manufacturing flcility. The proposed tax increment assistance is land write-down $110,250 and Public Utilities (W AC/SAC) $20,575. The Trunk Fees of $25,450 are proposed to be lorgiven by the City as the 10% Local Match. However, if the City is successful at receiving another State Grant, the HRA can consider reimbursing the City for the local match from tax increment. This is an item lor negotiation between the City and the HRA and was agreed upon for the Twin City Die Castings project. The $130,825 NPV TIF assistance is the pay-as-you-go finance method at an 8% interest rate. You will note on the TIF Cashflow, the net tax increment over the lile of the district totals $194,318 NPV. Bob Murray questioned the agreement in alternative I with the motion naming Profile Powder Coating, Inc. rather than1J Companies, LLC as stated in more recent paperwork. Mr. Dejong advised that the company, JJ Companies, LLC was just approved on April 4, 2000. This was so noted. . -4- . . . HRA Minutes 04/05/00 A MOTION WAS MADE BY DAN FRIE AND SECONDEI> BY URAD BARGER TO APPROVE THE PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE HRA AND ,}.J COMPANIES, LLC, AlJTHORIZING THE FINANCIAL AND LEGAL CONSULTANTS TO BEGIN PREPARATION FOR ESTABLISHMENT OF TIF DISTRICT NO. 1-27. Motion carried unanimously. 9. Consideration to approve the election of I IRA ollicers for 2000 and apProve the appointment of commissioners to committees. Ollie Koropchak, Executive Director, advised the HRA members that in accordance with the ORA Bylaws, the chair and vice-chair shall be elected at the annual meeting of the Board of Commissioners from among the Commissioners of the Authority and shall hold office for one year or unti I their Successors are elected and qualified. The Secretary- Treasurer shall be appointed at the annual meeting of the Board of Commissioners by the Commissioners. At the annual meeting in 1998, the commissioners discussed available time to volunteer and agreed to rotate the HRA officers among the commissioners suggesting thllVice- Chair move up to Chair. So heing, the Vice Chair for] 999 was Darrin Lahr and Darrin has agreed to move up to Chair lor 2000. Therefore, if the office of Chair is to rotate it is the suggestion that Dan Frie he considered for Vice Chair in 2000. Rick Wolfstellcr serves as the Secretary-Treasurer and delegates the recording of minutes to Lori Kraemer. Koropchak is employed as the Executive Director. COMMITTEES The HRA, annually or as need be, appoints a commissioner(s) to various committees. The only committee with By-Laws is the MCP, the others are established for a specific research or purpose. The MCP Bylaws read the various city commissions annually appoint their representative to the MCP Board of Directors. Length of term is three years. Steve Andrews was appointed a three-year term in February 1998 following Al Larson's resignation; therefore, Andrews three-year term is up February 200 I. Current committees and appointees remain as follows: Steve Andrews ~ MCP Community Center Small Group - Boh Murray Marketing - Darrin Lahr/Brad Barger -5~ . . . HRA Minutes 04/05/00 OFFICERS A MOTION WAS MADE BY BOB MORRAY AND SECONDED BY BRAD BARGER TO APPROVE THE ELECTION OF DARRIN LAHR AS CHAIR AND DAN FRIE AS VICE CHAIR OF THE HRA FOR THE YEAR 2000, ANI) APPROVE THE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY- TREASURER FOR 2000. Motion carried unanimously. COMMITTEES A MOTION WAS MADE BY BOB MURRA Y AND SECONDED BY BRAI) BARGER TO APPROVE THE APPOINTMENT OF THE FOLLOWING COMMISSIONERS TO THE FOLLOWING COMMITTEES: Steve Andrews MCP Bob Murray Community Center Small Group Darrin Lahr/Brad Barger Marketin~ Motion carried unanimously. 10. Consideration to review HRA Bylaws for amendment. Ollie Koropchak, Executive Director provided a copy of the liRA Bylaw for the liRA members review for the annual meeting. There was no recommendation from staff of a need to amcnd the Bylaws. The liRA members noted the only update to the Bylaws should be the change in the address of the City Hall to be 505 Walnut Street, Suite 1. A MOTION WAS MADE BY BRAD BARGER ANI) SECONDED BY DAN FRIE TO CHANGE THE ADDRESS OF THE MONTICELLO CITY HALL TO 505 WALNUT STREET, SUITE 1. Motion carried unanimously. After further discussion by the HRA members it was recommended the members bring the compensation issue noted in the Bylaws to thc next regular meeting of the liRA in May. II. Consideration to hear and accept the 1999 Year-End Financial Reports for the Tax Increment District Fund and the I-1RA General Fund. Rick Wolfsteller, BRA Treasurer, submitted the reports stating that none of the interest income has been submitted to the districts at this point but that he is in the process of -6- . . . HRA Agenda - April 5,2000 doing so. Wolfsteller provided a print out of the numbers for the members to review. He advised that there will most likely be some changes to this report when it is finished. He also stated that this is comparable to the numbers of last year, although there may be a slightly larger amount of revenue this year. Koropchak also noted the districts that were decertified. Last year NSP was decertified. In 2000, the $19,000 from NSP would go into H- Window as well as the Martie and Polycast surplus. A MOTION WAS MADE BY DAN FlUE AND SECONDED BY BRAD BARGER TO ACCEPT THE 1999 YEAR-END FINANCIAL REPORTS FOR THE TIF DISTRICT FOND AND THE HRA GENERAL FlJND, SlJB.JECT TO THE SECRET ARY -TREASORE'S ADJOSTMENTS. Motion carried unanimously. 12. Consideration to authorize extending an invitation to Local Lenders to attend the BRA May meeting for discussion relative to Downtown Redevelopment. Ollie Koropchak, Executive Director, advised that the Marketing Committee hosted a Lenders Breakfast a couple of months ago for the purpose of marketing the public financial assistance programs to the new lenders within the community. At that meeting, the community concerns of the old downtown Amoco station surfaced and downtown redevelopment in general and it was suggested to invite the lenders to meet with the HRA. Additionally, at the March IDC meeting, although, not their purpose, the Amoco station came up again. Koropchak suggestion that the HRA also consider inviting the Council members to a meeting with the Lenders and perhaps another date other than the regular meeting date of the HRA would be more appropriate. The members agreed to Wednesday, May 3,2000 at 5:30 p.m. Brian Stumpf and Koropchak noted they would advise the City Council members. Koropchak further suggested one of the HRA commissioners volunteer to call the owner of the Amoco property to discuss acquisition price as she'd heard rumors the price had decreased from the $250,000. She will check on potential redevelopment dollars through the Department of Trade and Economic Development. There was discussion among the members as to the possibility of demolishing the Amoco site and paying for it. At the time the property is sold, Amoco would pay the City back for the cost of the demolition. Dan Frie volunteered to call the property owner, Paul Bjorkland, regarding the Amoco site. -7- . . . HRA Agenda - AprilS, 2000 13. Consideration to accept the hourly rate increase reClUest from the HRA financial consultants. Ollie Koropchak provided a memo from Mark Ruff, Ehlers & Associates, requesting an hourly fee increase from $105 to $125. From the prospective of the HRA Executive Director, Ehlers & Associates has served the Monticello HRA well and the combination team of Ehlers and Kennedy & Graven expedites the TIF preparation and the Contract preparation. Ehlers has been helpful in advising the liRA in matters relative to prevention of audits by the Office of the State Auditors. Their turn around time of phone messages and request for information or casht10w is good. Koropchak suggested the members come up with a number possibly between the $105 and $125. BOB MURRAY MOVED AND DAN FRIE SECONDED A MOTION REQUESTING THE EXECUTIVE DIRECTOR RESEARCH OTHER FIRMS FOR COMPETITIVE PRICES AND SERVICES, TABLING ANY ACTION UNTIL THE REGULAR HRA MEETING IN MAY. Motion carried unanimously. 14. Consideration to authorize pavment of the monthly HRA bills. The invoice from Majirs Advertising & Design was costs associated with the design and printing of the 900 brochures "At a Crossroads?" by the Mep. The HRA approved contributing $2,367 toward the estimated costs of $9,3] 7 for design, printing, and mailing of the brochures. The $2,367 from the 10% Administration account of the Downtown TIF District No. 1-22. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DAN FRIE TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS. Motion carried unanimously. 15. Consideration of Executive Director's Report. a) 3 Walnut Street - The two tenants at 3 Walnut Street stopped by to verify that the liRA had no problems with them getting a third roommate. The third roommate is Craig Reitan, son of Wright County Private Investigator Gary Reitan. They like the house and have added a garbage disposal. The house is a three bedroom house. The Lease Agreement states no sub-leasing. I told them fine, if the commissioners have other thoughts, please advise. '1'1 F District 1-9 Tax Increment Deficiency - Attached for your information is a copy of the check in the amount of$9,299.58 from Tapper's Inc. for (me-third the tax increment deficiency as agreed upon between the HRA and Bill Tapper. The b) -8- HRA Agenda - AprilS, 2000 . . . c) deficiency amount was divided equally into three annual payments beginning and due the 1 yh of March, 2000, 200 I, and 2002, respectively, without interest. TIF District 1-15 - Copy of check to City of Monticello in amount of $2,426.59 received from Custom Canopy prior to release of the 1999 annual pay-as-you-go disbursement of $7,426.59 as per the Contract. Twin City Die Castings - Copy of cover letter attached to documents necessary for the Industrial Revenue Bond closing with the Minnesota Ag Board on March 30. The Contract for Private Redevelopment will also be recorded. The steel and panels should arrive April 3/4. The Grant Agreement and Loan Agreement for the $500,000 CDRG are prepared and executed by the Council.EDA Loan Agreement also prepared, waiting to hear date of closing. 2000 Minnesota Business Assistance Forms arc due April 1. These are the forms for reporting the status of the wage and job goals within the business subsidy provision of our contracts. HRA requested copies of the forms. Brad Johnson - He did call again about TIF assistance for the Locustl7 Street project proposed by Barry Fluth. Plans have been submitted to the Building Department. I'm unaware of who the tenants might be. Ken Barthel- Working on behalfofVeit Companies, .Jcffand I'vemet a couple times with them relative to concept ideas for the previous Farrell Gas site and perhaps including renovation and expansion of the Liquor Store. Seminar - Attached is a flier on a seminar "A Sense of Place and Community". Any liRA members interested? Marketing - 30 brochures mailed March 29 and Industrial Breakfast scheduled for April 27, 7:30 a.m. Prospects: Adaboy Mfg, Inc. - Now renting from Morrell. Looking to construct 20,000 sq ft. Metal fabricator for store fixtures, Polaris, etc. Employs 9 people wages between $9 and $14 excluding benefits. Owners Ken Paumen and Tom Flodquist. * H&R Industries, Beecher, [I. - Looking for immediate (4 months) lease space of 10,000 sq ft. The company is a plastic manufacturer of temperature control products and the proposed facility would market the electron industries such as Hoffman Engineering in Anoka. 12-17 jobs wages between $8.50 and $14 excluding benefits. Referred to and contacted Allied Companies. * Alliant Techsystems, Inc. - Attached letter, note letter based on an article in City Business Journal. * Local developer - Looking to purchase land and construct a facility for lease to proposed tenant. * Allied Companies - Perhaps construction of Phase I of a total 180,000 bay~type rental facility f()r light industrial and commercial use. East 7 Street. *Midwest Graphics - Attorney representing this company contacted Koropchak d) e) f) g) h) i) j) -9- . . . BRA Agenda - April 5,2000 16. stating Midwest Graphics is looking to sell the company to Merrill Corporation of St. Paul, thus the contract may be assigned once again to someone else. Consideration of Committee Reports. a) City Council - Brian Stumpf - Nothing to report. b) Mer - Steve Andrews - Absent c) Marketing - Darrin Lahr/Brad Barger - Nothing to report. d) Community Center - Bob Murray - Revenues running 25% to 30% above what was expected. A handout was provided for the meeting by Kitty Baltos. Murray advised that there will be some repair work on pool tile in late June and possibly a new system for chlorinating the pool will be looked at. Air movement in the pool area will be looked at as well. 17. Other Business. None. 18. Adjournment. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO ADJOlJRN THE MEETING AT 9 P.M. Motion carried. I IRA Chair Recording Secretary -10- . liRA Agenda - 5/3/00 4A Consideration to approve the Certificate of Completion for the St. Cloud Hospital proiect. A REFERENCE AND BACKGROUND: The certificate of occupancy was issued by the Building Department on March 28, 2000, for the 60-unit independent senior housing facility known as St. Benedict's and constructed the St. Cloud Hospital. Per the Contract for Private Redevelopment between the HRA and the St. Cloud Hospital, completion of the minimum improvements was scheduled for December 31, 1999, and modified to June 30, 2000. With the issuance of the certificate of occupancy, the HRA is requested to approve the Certificate of Completion. . Additionally, the Contract states the redeveloper agrees that it will pay upon demand by the HRA, Administrative Costs. Administrative costs means out of pocket costs incurred by the liRA attributable to or incurred in connection with the negotiation and preparation of this agreement and other documents and agreements in connection with the development contemplated hereunder. As of the date oftrus Agreement, the redeveloper has deposited with the HRA the amount of $5,000 for payment of administrative costs. Upon issuance of the Certificate of Completion for the minimum improvements, the HRA shall return to the redeveloper any balance of such deposit that the HRA reasonably determines is not needed to pay the administrative costs. If at any time the HRA determines that the costs will exceed $5,000, the redeveloper shall pay any additional costs within 10 days after receipt of a written invoice from the HRA. Verification of the total administrative costs through the city's finance department will be in 30 days to allow final invoices from the consultant and attorney. As of January 12, 1999, the amount expended by the HRA for legal and financial consultants was $4,723.85. However, I will revisit the expenditure for an update prior to reimbursement of the $276.15. Commencing one year from occupancy, the redeveloper agreed to prepare and submit annually to the HRA a notarized report certified to be accurate by the Owner noting this project meets the requirements of the 40-60 test under Section 42. Such evidence is a Certification of Tenant Eligibility which assures the district is and remains a "qualified housing district." B. ALTERNATIVE ACTION: I . A motion of approve the said Certificate of Completion. . 2. A motion to deny approval of the said Certificate of Completion. '",- . 3. A motion to table any action. C. RECOMMENDATION: Recommendation is alternative No.1 as this is a housekeeping item. D. SUPPORTING DATA: Copy of the certificate of completion and occupancy permit. . . 2 HRA Agenda - 5/3/00 . . . CERTIFICATE OF COMPLETION WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, a public body, corporate and politic (the "Authority") entered that certain Contract for Private Redevelopment with The St. Cloud Hospital (the "Redeveloper") dated as of October 2, 1998 (the "Contract"); and WHEREAS, the Contract contained certain covenants and restrictions set forth in Article IV thereof; and WHEREAS, the Redeveloper has performed all covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution of this certification; NOW, THEREFORE, this is to certifY that all building construction and other physical improvements specified to be done and made by the Redeveloper with respect to the Minimum Improvements (as defined in the Contract) have been completed and the above covenants and conditions in Article IV of the Contract with respect to the Minimum Improvements have been performed by the Redeveloper. Dated: ,2000 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA By Its Chair By Its Executive Director . . . STATE OF MINNESOTA ) ) ss. COUNTY OFWRlGHT ) On this _ day of , 2000, before me, a Notary Public within and for said County, personally appeared and Olive Koropchak, to me personally known, who, being by me duly sworn, did say that they are the Chair and Executive Director, respectively, of the Authority named in the foregoing instrument; and said Chair and Executive Director acknowledged said instrument to be the free act and deed of said Authority. Notary Public This document was drafted by: KENNEDY & GRAVEN, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 Telephone: 337-9300 SJB-178820v 1 MN190-73 . ~ ~ >. ~ = ~ ~ = ~ ~ o ~ o QJ ~ ~ ~ = .- ~ :.- QJ U o ~ .....-l QJ U .- ~ = o ~ ~ o ~ ~ .JIIIIIIC u = o .- ~ U QJ ~ rI1 = ~ eSJ = .JIIIIIIC ~ ~ .- = ~ ~ o ~ = QJ 8 ~ ~ ~ ~ QJ ~ ~_. . ~ ~.w ~~;: Q5...:::..2 .... -.... ~';'; ~ (3 ~ ~ ~~~ :s .~ ~ ~1i..~ ~ l:: ~ 1Y 8 ~ 0, :::: l.. <:::> '- I::> ~ ~ :: s:: I::> .8 ;: 'f3 ti ~ t ~ 'G ~ 1Y t 0 .... '-> ~ '" :::.~ ~ ~ ...::: '- E-"~ ~ ~ "'- .;:. '->-~ ;.:; s::: ....., ~~c.o ~ '" .S; ~ .~ ~ ~ 1Y~ .9 ~ ~ .... =:: :... :::: ''::; ~ tl ~ '_ ;':;...::::v t; .... ;.:; .... ~ l::l..tl~ ~'i:i1Y ~ ~ '" ~ c.o ~ '- .s; s::: ~ ,,,,", tl 'i:i ~.S '-> t: ~ L- ~ l.. '2'-> I::> ~ ~ ~ U I::> I::> '" V ';:: '- tl ~ ;:.. -.... I:::l '" ';::: S1 '" .~ ~ -.... 'il I:::l .... ~ ~ =: c '" - I:::l '-> ~ "" "" I:::l ti ~ ~ t ~ ~ ~ ~ ~ ""l ..... ~ ~ "= ~ ~ ~ 'S ~ .,., "t- 0\ "t- I 0\ 0\ '. 5:; < - -5 ... ~ l:l.. /:l.o ::: '- "l::: - ':i ~ ~ ";1 ~ ..... I ~ ~ ~ ... ~ - d ~"" - '-> ~ ~ ~ ~ ~ ~~ ::: ~ - 'S ~ ~ ~ ::: ;;: C ~ '. t .~ ~ /:l.o ::: 'i: ~ "cl :;0. - ~ "t- ~ ""l '0 .,., ~, ~ o o o N 00 N -= ~ ~ w u :5 0... C/) ::> o ::> u 0: C/) z o u <r: ~ r- C/) o 0... ~ c "" ~ ~ ~ ~ :;::, ..... oc ..... ....: '" ::: d ....: ~ ~ {j "l::: ~ 11 I:::l Cl ~ --- ~ ~ ~ ~ ~ ::: c '- - '-> ::: ~ ::: c U ~ .;.; & Cl /:l.o ::: ~ '.. ::: ~ . . , BRA Agenda - 5/3/00 6. Continued - Consideration to accept the hourly rate increase request from the BRA consultants and review other financial consultant proposals. A. Reference and backeround: At the HRA meeting in April, the commissioners continued this item and requested the Executive Director research other firms for competitive prices and services. Ehlers and Associates had requested an hourly fee increase from $105 to $125. Both the City Administrator and the Executive Director noted an hourly increase was worthy; however, the question was how much of an increase. Ehlers knowledge of the history of the HRA and its districts certainly has merit. These are the financial firms contacted for a proposal: Springsted, Inc. - previously used by the City. Bradley & Deike - Bob Deike previously used by the HRA. Out-of-town until May 3. David Drown Associates - presentation at CMIF Seminar. The submitted request for proposals will be attached as supporting data if received in time of agenda delivery, otherwise, will be submitted at HRA meeting. B. Alternative Actions: 1. A motion to accept the hourly rate increase from $105 to $125 as per the March 30,2000, request. 2. A motion to deny the hourly rate increase from $105 to $125 and to offer Ehlers and Associates an hourly rate increase of 3. A motion to accept a request for proposal from among the submitted proposals at an hourly fee of 4. A motion to table any action. C. Recommendation: No additional recommendation given at this time. D. Supportine Data: Copy of memo from Ehlers and submitted request for proposals. . . . MAR 3kl ' klkl kle:::: e::::,1-'1'1 UiLI:..t-(;;, 6< H;;,;;,Ul....lH I t...~ . EHLERS MEMORANDUM & ASSOCIATES INC TO: Ollie Koropchak. City of Monticello FROM: Mark Ruff - Ehlers & Associates DATE: March 30, 2000 RE: Hourly Fees When the liRA retained our firm in 1995 to assist in tax increment financing work. our hourly rate was $1 05 per hour. In early 1996. our standard rate was increased to $120 per hour. but we agreed to keep our rate at $105 for Monticello because wc had been recently retained. In early 2000. we increased our rates to $125 per hour. We are requesting that the Monticello HRA fees be increased to $125 per hour. While this is a large increase, we have not increased our fees to the HRA in five years. If we had increased our rates slightly each year. the increase would have been approximately 3.5% per year. We value our relationship with the HRA and I would be happy to meet with you and members of the HRA to discuss this funher. Thank you for your consideration. from the desle of: Mark R.uff Vice Presjdent Ehlers '" Assodaces, Inc. 3060 Centr~ pointe DrifJe RosefJille.MN 55113 Phone! (651) 697-8505 Fax: (651) 697-8555 E-Mail: mark@ehlm.inc.com . . . Minneapolis Office: 5122 Irving Avenue South Minneapolis, MN 55419 (612) 920-3320; fax (612) 927-5458 DAVID DROWN ASSOCIATES May 2, 2000 PROPOSAL Ms. Olive Koropchak, Executive Director Monticello Housing and Redevelopment Authority Monticello City Hall 250 East Broadway, PO Box 1147 Monticello, MN 55362-1147 RE: Fiscal & Development Consulting Services Dear Ms. Koropshak and Authority Members: We are pleased to provide you with this brief proposal to provide a full range of TIF planning and related consulting services to the Monticello Housing and Redevelopment Authority. If you require additional information or detail not included in this initial proposal, we will happily provide it to you. OUf Company and Philosophy David Drown Associates was formed in 1997 to provide a full range of fiscal and economic development consulting services to cities, counties and development agencies throughout Minnesota. Our services are designed with the needs of smaller jurisdictions in mind - jurisdictions which do not always have the time or staff to handle complex development or financial projects. We not only deliver the standard products of TIF planning and bond issuance, but also offer extra help at a staff level with financial packaging, grant and loan writing and administration, developer negotiation, etc. We even provide on-site staff for several city's economic development offices! We work hard to tailor our service package to meet our clients' specific needs. David Drown Associates currently maintains a staff of seven employees, with offices in Minneapolis, New Prague and Sauk Centre. TIF Planning Services The Monticello HRA has been very active in promoting economic development through the use of tax increment financing. We expect TIF will be the primary service you request of us. Our firm has earned a state-wide reputation for quality, accurate and successful tax increment services. We know tax increment inside and out, and probably do as much TfF work as any other firm in the State. Most projects start with a phone call from a client asking about the potential use of TIF for a project. We are always available to "think-through" the feasibility of a potential TIF project with you by phone, and provide a quick analysis of the amount of TIF available for a proposed project. This level of assistance is provided without charge - it is just a part of maintaining a good working relationship with our clients. If a potential project moves forward and a TIF plan needs to be prepared, we typically provide the following services: 1. We will attend initial meetings with staff, consultants and other parties as necessary to identify objectives and evaluate potential alternatives and strategies for designing the TIF District. 2. We will coordinate the collection of all data required to prepare the tax increment financing plan, including projections of tax increment revenues to be generated by proposed development(s). 3. We will prepare all documents associated with the creation of the TIF District including the tax increment financing plan, supporting schedules, resolutions and filing documents. 4. We will be responsible for preparing all notifications and publications required by state law. . . . 5. We will attend and make a presentation at public hearing(s} required for the TIF District. 6. We will provide general assistance in negotiating the terms of development agreements and preparation of letters of understanding, and will coordinate the preparation of final documents with bond counselor other legal representative. 7. We will prepare all documents necessary to certify the District with the County and State. 8. We will prepare an initial set of sample State Auditor TIF reports for the district to make future reporting duties clearer and easier. 9. We agree to provide general advice and assistance in managing the TIF District following creation. Naturally, we understand the importance of the State Auditor's office in TIF today. Our TIF plans fully conform to the latest expectations of that office. And for older TIF Districts and TIF reporting, we will help you to the degree needed to identify and resolve potential problems before they become an issue at the State level. Other Services Our firm also provides a full range of finance-related services to our clients. These include: . Debt Structuring . Municipal Bond Sales . Continuing Disclosure . Debt Capacity Analysis . Capital Improvements Planning . Financial Studies and Impact Analysis . Development Negotiation Services . Grant Applications and Loan Packaging . On-site Economic Development Support . Comprehensive Planning & Zoning Staff Assignment David Drown, Principal, will serve as your primary contact person with our firm. Traci Ryan will provide technical support and assistance in completing day-to-day work elements. A copy of David's and Traci's resumes are attached for your review. Compensation Enclosed is a copy of our 2000 standard fee schedule. Our normal fee for TIF planning services is $5,000 per deal. For multiple TIF Districts or amendments completed in the same calendar year, the standard fee will be reduced by $1,500 for the second and each subsequent TIF Districts. For special projects, we will typically provide you with a separate proposal which outlines the scope of services and provides a compensation quote. We generally quote on a lump sum fee basis if the scope of services can be defined. Other projects are completed on an hourly basis. References David Drown Associates represents over 60 separate jurisdictions across Minnesota. Enclosed a sampling of select clients near Monticello for whom we provide comparable services. We encourage you to contact any or all of these references about the quality, responsiveness and creativity of our services. Thanks for inviting us to submit this proposal. We would be happy to meet with you at your convenience to discuss our proposal an answer any questions. Respectfully submitted, JY~ David P. Drown David Drown Associates . David Drown Associates Minnesota References City of Belle Plaine David Iverson, City Administrator 420 East Main PO Box 6 Belle Plaine, MN 56011 952-873-5553 City of Cannon Falls Dallas Larson, City Administrator 306 West Mill Street Cannon Falls, MN 55009 507-263-3954 City of Little Falls Richard Carlson, City Administrator 100 7th Avenue N.E. Little Falls, MN 56345 320-632-2341 . City of Rockford Nancy Evers, Clerk Treasurer 6031 Main Street Rockford, MN 55373 612-477-6565 City of Sauk Centre Joe Heinen, City Administrator 405 Sinclair Lewis Avenue Sauk Centre, MN 56378 320-352-2203 Stearns County HRA Bob Swanberg, Executive Director Stearns County HRA 312 North First Street, Suite 2 Cold Spring, MN 56320 320-685-7771 City of Zumbrota Ron Johnson, City Administrator 175 West Avenue Zumbrota, MN 55992 507-732-7318 . . . . DAVID DROWN ASSOCIATES Standard Fee Schedule January 1, 2000 General Obligation Bond Issues: PrinciDal Amount o to $100,000 $101,000 to $200,000 $201,000 to $300,000 $301,000 to $500,000 $501,000 to 1,000,000 $1,000,000 to 1,500,000 $1,500,000 to 2,000,000 $2 to $3 million $3 to $4 million $4 to $5 million Negotiated MAOSe GO $3,500 4,500 5,000 5,500 6,000 na na na na na Negotiated GO $4,500 5,500 6,000 6,500 7,000 8,500 9,500 10,500 11,500 12,000 Competitive Sale GO $5,500 6,500 7,000 7,500 8,000 8,500 9,500 10,500 11,500 12,000 Fees are for financial advisory services for a single issuance of General Obligation Bonds. Client shall be responsible for other costs of issuance, including but not limited to bond counsel, pay agenUregistrar, printing, rating agency, underwriters discount, and out-of-pocket expenses. Advisor fees for MAOSe issues are based on a limited disclosure, non-rated issuance; if a rating is required, fees will be increased $1,000. Fees for a current refunding shall be increased by $1,000. Revenue issues, lease-purchase financings & advance refundings: Because of the highly variable nature of these types of bond issues, fees for service will be established on an issue by issue basis. Continuing Disclosure: Annual fee is $1,000 per year for each class of issues (all G.O. bonds are typically one class, for example) plus $200 for each bond issue within that class, up to an annual maximum of $1,500 per class. Tax Increment Financing: Base fee to research, draft, process and certify a standard TIF plan is $5,000. Fees for redevelopment districts are generally $1,000 to $2,500 higher. Client shall be responsible for out of pocket expenses and expenses of other professionals, such as bond counsel and building inspection. Hourly Service Rates: Standard $125 90 40 Principal Associate Clerical MAose $100 75 35 Expenses: Mileage Photocopying Other Federal mileage Rate $0.10 per page actual . . . DAVID P. DROWN President, David Drown Associates Experience David has over 20 years of continuous service to Minnesota municipalities. His formal training and experience in civil engineering, economic development and public finance gives David a uniquely broad range of knowledge and abilities. He understands his clients' needs and problems, and enjoys the challenge of solving the tough problems. As an expert in tax increment financing, David has authored over 150 separate TIF Plans for redevelopment, economic development and housing TIF projects. He regularly conducts TIF training sessions for government associations including the League of Minnesota Cities and the Minnesota Association of Small Cities. In cooperation with DTED, he was a primary author of the Department's 1996 EDA handbook. And as an active participant in economic development issues at the State Legislature, David has worked to preserve and enhance city powers to use tax increment financing. As a fiscal consultant, David has structured and marketed virtually every type and form of municipal bond issue. Project finance experience includes sewer, water, electric, natural gas, drainage and district heating utility formation and bond issuance. He has structured healthcare bonds for hospital, nursing home, clinic and elderly housing projects. In development finance, he was one of the first issuers of General Obligation TIF bonds for a City-owned manufacturing project in the State, and pioneered the issuance of tax-exempt TIF revenue notes for private development projects. In January 1997, David established the firm of David Drown Associates. The firm offers public finance and economic development consulting services in Minnesota. The firm currently represents over 65 public and private clients throughout the State of Minnesota. Employment History 1997 to Present 1992 to 1997 1986 to 1992 1985 to 1986 1979 to 1985 1978 to 1979 President, David Drown Associates Project Manager, Springsted Underwriter, Juran & Moody, Inc. Business Finance Specialist, DTED City Engineer, City of Roseville Civil Engineer, St. Paul Water Utility Education Masters in Business Administration University of Minnesota, Minneapolis, MN Bachelors of Civil Engineering University of Minnesota, Minneapolis, MN Undergraduate Coursework Carleton College, Northfield, MN . . . Traci Ryan Associate DAVID DROWN ASSOCIATES Experience Traci has been working with economic development and planning in Minnesota since the mid 80's. Four years as a private professional planning and development consultant gave her a strong background in Tax increment Financing, business finance and economic development planning. Traci's proven track record as Economic Development Director for the City of Sauk Centre includes nearly $1.4 million dollars in successful grant writing that led to a Revolving Loan Fund, the redevelopment of downtown Sauk Centre, and the creation of the Sauk Centre Utility. She coordinated the expansion, relocation and start up of approximately 20 successful businesses and nearly 150 jobs. Spearheading the redevelopment of the MN Department of Transportation Maintenance Property in Sauk Centre resulted in opening up 20 acres of the most valuable land in Sauk Centre, created over 100 jobs and provided tremendous opportunity for future commercial, retail and service industry growth. This project received statewide recognition as an Economic Development Success by the League of Minnesota Cities in 1996. In 1997, Traci joined the firm of David Drown Associates. The firm offers public finance and economic development consulting services in Minnesota. The firm currently represents over 60 public and private clients throughout the State of Minnesota. Employment History 1997 to Present 1989 to 1997 1984 to 1988 Associate, David Drown Associates Economic Development Director, City of Sauk Centre Planning and Development, Private Sector Education Bachelors of Arts Mankato State University . . . HI; E. SEVI',NTH PLACE, SUITE 100 SAINT PAUL, MN SS101-2H87 6.51-223-3000 FAX: 6S1-223-3002 /1/ SPRINGSTED Public Finance Advisors May 1, 2000 ~ Ms. Olive Koropchak City of Monticello HRA 250 East Broadway PO Box 1147 Monticello, MN 55362-1147 Re: Fee Proposal Dear Ms. Koropchak: This letter outlines our fee proposal to the City of Monticello Housing and Redevelopment Authority for advisory services. Housing and Economic Develooment. Manaaement Services For special projects, such as housing economic development or management services projects, we would charge at the hourly rates listed below. A scope of work and cost estimate will be provided prior to undertaking these types of efforts. Title """:::"".' Rate '. .... ...., Senior Officer/Principal $150 Client Representative/Project Manager 125 Other Officers 115 Other Professional Staff 90 Support Staff 40 In addition to the fees listed above, Springsted will charge for out-of-pocket expenses such as travel, duplication, telephone toll charges, printing, postage and delivery charges. An alternate to hourly billing is to provide a "not to exceed" cost estimate for specific project related services, such as establishment of a TIF district, or conducting a developer review. Accurate cost estimates for speCific projects depend upon creating a detailed scope of work. Bond Issuance Services Springsted would like to offer the following fee structures for your review. Our bond transaction fees are typically based on the size and complexity of the debt offering or, in certain situations, on stated hourly rates. SAINT PAUL, MN . MINNEAPOLIS, MN BROOKFIELD, WI . OVERLAND PARK, KS . WASHINGTON. DC . DES MOINES, IA . . . Monticello HRA May 1 , 2000 Page 2 This fee alternative provides that services related to debt offerings prior to the time Springsted submits a final fiscal plan for review will be charged at the hourly rates below: Title Rate Senior Officer/Principal $150 Client Representative/Project Manager 125 Other Officers 115 Other Professional Staff 90 Support Staff 40 We would propose to charge at our contract rates as presented below and provide for the following fixed fees for general obligation debt: Amount of Debt Oblig;atlon ......... (000 Omitted) Fee $ 0 - $ 500 $ 6,750 501 - 1,000 8,550 1,001 - 1,500 10,350 1,501 - 2,000 11,700 2,001 - 2,500 13,050 2,501 - 3,000 13,950 3,001 - 3,500 14,850 3,501 - 4,000 15,750 4,001 - 4,500 16,650 4,501 - 5,000 17,750 5,001 - and over 17,750* * plus $500 per $.5 million or any pari thereof in excess of $5 million The foregoing schedule includes the Advisor's services through closing of Debt Obligation. Non-general obligation, refunding and tax increment debt will be charged at 1.5 times the fee set out above. Our fee proposal is offered in the interest of presenting the HRA with a workable, reasonable pricing structure for services requested. If there is a need, we are prepared to discuss our pricing structure with you and explore alternatives. Our interest is to work with your community to achieve a mutually beneficial, long-term relationship. We recognize that fees are an important part of any decision-making process, however, experience and expertise as demonstrated in the enclosed materials, should also playa major role. Additionally, in order to facilitate an orderly transition of housing and economic development projects currently underway, Springsted will invest and commit the staff hours necessary to become familiar with projects at no cost to the HRA. . . . Monticello HRA May 1, 2000 Page 3 Finally, we are pleased to have submitted a fee proposal to the City in October of last year which, unfortunately, has yet to receive final action of the Council. To work as the City's financial advisor remains a high priority for Springsted. Sin~ pj;~/ an, Vice President Client Representative ~ ~--- ~~B. Shannon, ~ice President Client Representative kli ,Olive Koropchak (Monticello).doc . . .. - 7. HRA Agenda ~ 5/3/00 Consideration of an update from Scott Rolfe relative to the Lease Aereement between the HRA and SPS Services. Inc. A. Reference and back2round: At the April HRA meeting, the commissioners authorized entering into the Lease Agreement between the HRA and SPS Services, Inc. at a lease fee of$61O.87 as prepared by legal counsel and subject to receiving evidence of all required insurance in the form of a Certificate of Insurance as outlined in the agreement. The Agreement has not been executed. In a conversation with Scott Rolfe a week ago, he had not received the required evidence and was comprehending a change of the display items. Scott has not received an invoice relative to the costs incurred by the fIRA for preparation of the document and the public hearing notice. As you recall, the payment of incurred costs was a good faith commitment by Scott. Scott has been invited to the HRA to update the COmmissioners and thereafter will the invoice be mailed. Attached is the Agreement, invoice, and Council minutes relative to the Conditional Use Permit. No recommendation at this time. ---.--.--- .-. -., '-,_. - ----..-.'--.-'-- --,._- .-"'-. -.- . ..'" - . -- ... .". - - -",-,---,,'-' ,-,~~ ---- 03-29-00 16:30 Frcm-KENNEDY l GRAVEN +6123379310 T-881 P.04/16 F-765 u. USE OF pREMISES . A. Lessee a.grees to pay Lessor $ . wluch is the Lessor's out of pocket cost associated with the preparation and approval of tlus Agreement. for me use and enjoymenl of the Premises during the term of this Agreement. B. Lessee may use the Premises only for Ihe purpose designated above. Lessee further i1grees to apply. by no later 1han one hour after close of business. proper coverings on aU pools that arc: ruled. wim W4tcr. sufficient to prevent anyone or anyth.1ng from entering me pool. Such coverings may be removed from the pools no earlier than one hour before sun of business. c. Lessee may locate and display the pools on the leased Premises during the term of this Agreement or until either pattY electS to temlinate this Agreement as set forth herein. D. Lessee promiseS at all tiInes (1) to comply with all laws. rules. and regulations pe.ttait1Wg to tl1~ use of th~ .Premi.~s incLuding witbout lill1itl:tUon all tl:rmS iaIlU conJiUIJIl:> of the conditional use permit for the adja&.:ent propeny at 101 W. Broadway. approved by me City Council on March 13. 2000; (2) not TO use the Premises in an illegal or dangerous manner or that would cause a cancellation. restriction. or increase in preIIl1um for any insurance carried by Lessor on me Premises; and (3) not to intertcre in the maimeJlaIll,:e. management. or operation of the Premises. E. Le~e funhcr promises at aU times 0) to direct away from the public right-of-way any mc1 aJllighling either placed on or focusetl towards the PremUes; (2) to clearly stripe and mark . all parking stalls on the Premises; (3) to place a continuous barrier surrounding each swimming pool ana spa that is located on me Premises suffi\..ient w prevent anyone or anything from entering such pools or sp~; iallU (4) not to constrU'-"t tJr ere~"t iaIlY =nponuy or permanent sign. billboard. or other advertising strUCture OQ the Premises. F. During the tcml of this Agreement. either Lessor or Lessee shall hav~ the right to tenni11.ate Ihis Agreement in their respective sole disCretion by serving on the other party at least 60 days writt.:n notice. l.J:ssor IS not required to refund to Le~e all or any portion of the l..ease Costs in the event either pany terminates lhi.s Agreement. Lessor also has the tight to tenn inate this Agreement immec1iately if in its discretion the use of the PremiSes constituteS a ha:Lard to the public health, safety. and gener41 welfare of the community. G. Euher upon ex.pird.tion or umnination of dlis Agreement. but by no larer than August 31. 2000. Lessee shall cause the drainage and removal of all pools and spas frorn the Premises. Such dnunage md removal may not Wunage the Premises in any way. All liquid contents of such pools and spas shall be disposed of in accordance with applicable federal or sta[~ laws. regulatiOl1S. or guidelines and. if none. then in accordanCe with applicable manufacturer. s suggested guidelines. H. If Lessee fails [0 remove me pools and spas iaIld otherwise fully vacate the PremiseS upon Iennination or expiration of this Agreement. in either event by no later than August 31. 2000. Lessee sh.ill be liable to ~r for any damages or COSts resulting therefrom. including reasonable altOmey fees and court CQSIS- I.es.ee also shall be charged and hereby agxees 10 pay $25 for ..""b . PIC'11776iv2 J4N190-11S 2 . . . 03~Z9~OO 16: 30 Fram~KENNEDY I GRAVEN +6123379310 T~SSl P.D5/16 F~765 additional 24-hour period, or any pan of 24 hours. that Lessee occupies the Premises after the exptration or proper tennination of this Agreement. m. CONDITION OF PREMISES A_ Lessee promises (1) not to damage or misuse the Premises; (2) not to make any surf~e or subsurface changes to the Premises without the prior written consent of Lessor, (3) 10 immediatcly notify Lessor of any conditions on or about the Premises Ibat are dangerous to human health or satety, or that may damage or pose the threat of damage to the Premises; (4) to leave the Premises. upon expiration or proper termination of this Agreement., in substantially the same condition as when it entered the Premises: and (5) to keep the Premises m a neat and orderly conaition, with special reterence to fire hazards, and to pennit no rubbish of any kind to accumulate on or about the Premises. B. If the Lessor approves and consents to Lessee anacbini: improvements to the Premises. 001 including me pools or related accessories, all such improvemenrs CU'c the property of Lessor regudless ot who inStalled and who paid tOt the improvemems. All nonpermanem Lmprovements inslallea and paid for by Lessee shiill be the propen) of the Lessee provided Lessee leaves the Premises in the SOWle or substantially the same condition it was in prior to such inswillatiol1. C. Lessee shlill not permit any liens to encumber the Premises for any purpose mcJuc:1ing hut not limited to labor or materioll fwnished to, or for the account Qf. Lessee, or claimed to hi:lve been so fumished in connection with any work peIfonned Or clalme4 to have been performed on or i:lbOUI the Premises. IV. RIGHTS OF LESSOR A If Lessee violateS any material leIDl of this Agreement. Lessee may be evicted immediaJcly, provided mat Lessor gives Lessee written notice and a reasonable opponunity to cure such breach. If ~e is evicted but dol:.) not v-.caLC: the Premises voluntarily. then Lessor may file an eVlL'l10n ~'1ion against Lessee and Lessee agr~es to pay tor cUI costs associated WIth such acnon, including reasonable anomey fees and coun COSts. Lessor's election not to sue or eviL1 Lessee Qoes. nOt prevent Lessor from suing or eviL1ing Lessee tor any other Violation of any term of this Agreement. B. AUlhorized agents and representatives. ot. Lessor may enter the Premises at any reasonable time, or at any time in the event of an emergency, to inspect. impto\'e. maintain. or repair the Premises. provided mat their enuy shall avoid unreasonably interfering or endangering the OCCUPllJlts at the Premises. There shall be no .ulow.mce to I essee. or liability on the part of Lessor, by reason of inconvenience, anDoyanc~ Or injury to business, resulrmg from Lessur's. peItonnance at this provision or any other provision of this Agreement. C. Lessee sballlawfulJy. peaceably. and quietly have, hold. OCLllpy, miJ enJoy the Premises during the term of U1i.<; Agreement, wlthout hi.ndrmce or objet."tion by any persons lawfully PIC.lmOl..~ );IN J9Q.SS 3 03-29-00 16:31 From-KENNEDY' GRAVEN +6123379310 T-881 P.06/16 F-765 claiming under Lessor; provided. however. Lessee observes. keeps. and peIforms all tenDS and provisions ot'1his Agreement. . V. LlABn..lTY OF LESSEE ANP LESSOR A. Lessor. and its agents. employees. and representatives are not responsible far any damage or injury caused by and to Lessee. or to its propeny. agents. cuswmers. guests. or inviIees. Lessor. and its agents, employees. anc1 ~presenwives also are not responsible for the actions of. or any damages. injury. Or harm caused by. third parties who are not under LessOr'li conttoL B. Notice. A notice, demand. or other communication by either partY to the other party under this Agreement shall be sufficiently given or delivered if dispatched by registered or certitied mail. postage prepaid. rerum receipt requestec1. or delivered personally as follows: 1. for Lessor. mail notice to: Housing and Redevelopment AUthority in anc1 far me City or Montit:ello, Minnesota Ann: Executive DU"ecwr S05 Walnut Street, Suite 1 Monticello, MN 55362-8831 2. for Lessee. mail notice to: SPS Services. Inc. AWl: Scan and Amy Rolfe lOl West Broadway Monticello. MN 55362 . or at such ather address that either party from time to ume may designate in wnting and may forward to the other pany as provided in this seL.'1ion. C. 'F.minent Domaio.. In the event that all or part of the Premises are acqlJired or taken under me power of eminent domain for public use, Lessor may, at its sole option, teIUllnate this Agreement as of the date on which the acquiring authOrity becomes entitled to possession of the PremiSes. In the event of such T.Crmination. Lessee shall have no funher right to any possession of the Premises. nor w any compensation or award of damages for any past or funrre leasehold interest. D. Lessee shall not cause or pennil to be caused any act or practice. by negligence. omission. or otherwise. that would affect the environment in any way, and shall not do anything or permit anything to be done that would be in violation of any federal or Stale law. regL1lation, or guideline. This includes but 15 not limited to the improper or illegal use or disposal of any flammable, t:ombustible. hazardoUS, or explosive fluid. material. pollutant, chemk=al. or substanCe. A violation of this clause will be considered a material breach of this Agreement. . PJC-lmoav2 MNl9Q.iS 4 . . . 03-29-00 16:31 From-KENNEDY' GRAVEN +6123379310 T-BBI P.07/16 F-765 VL INSURANCE AND INDEMNIFICATION A. Insurcmce. Lessee shall pnx:ure ;md carry the following insurance at all times that Lessee occupies the Premises: 1. Lessee, at its sole "OSt and expense, shall miUntain in full force and effect during the term of the 1Aa.se and any renewal thereof: a. General Liability lDsurmce in the following minimum wnounts: L $1,000,000 bodily injwy. including death. per person; Sl,ooo,ooo bod1ly injury, mctuding death, per occurrence: $500,000 propeny damage, per OCCWTence; or u. $1,000,000 per occl.l1Tence. combined single limits; $1,000.000 aggregate. The Housing and Redevelopment Authority in and tor the City of Monticello, Minnesota, shall be named as an Additional Insured. The general JiabiliLY poli"l' shall contain a snpulatiun that Lessee's insurer will provide IO Lessor wrilten notice at least 30 days prior to cancellation of such msur411ce. All language limiting this requirement on me Certificate shall be sUlcken. The insurance shall be carned by sol vent and responsible insurance companies licensed to do business in the state of Minnesota. b. Propeny Insur.mce on Lessee's personal property in an amount necessary to replace such propeny if necessary. c. Workers' Compensation as requtred by law. 2. Evidence at" all required insurance shall be in the fann of a Certificate of lnsLU1U1ce (ACCORD Type) ana shall be sent to the Lessor unmediately upon accepWlCe of this AgreemenL B. Indemnification. Lessee shall inaemnify and proteCl, I1efend., and hold Lessor and the City of Monticello and thClI' agents, employees. and representatives hann.Iess against all expense.s, liabilities, ana claimS of any kind. including but nOt limited to reasonable iinomey Lees, by ana behalf of any person or entity arising out of either (1) a failure by Lessc~ to perform any of the telDlS or conditions of this Aifeement; (2) any injUl)' or damaie happenini on or about the Premises; or (3) failure to complY with any 1ederal. stale, or local law. This provision shall survive the expird.tiw or teIDlinluion of this Agrccmem as t.O claims for incidents that occurred either during the term of the Agreement or occupancy by Lessee, whichever is longer. iJC-) Tn6b'J. MN HIQ-85 5 03-Z9-00 16:31 From-KENNEDY' GRAVEN +61Z3379310 T-881 P.08/16 F-765 C. Reimbursement. Lessee shiVl reimburse Lessor. and its agents. employees. officers. and repreSt:Dtatives for (1) any loss. propeny damage. or costs of repair or service caused by the . negligence on or unproper use of the Premises by Lessee; (2) all costs incurred by Lessor arising from Lessee"s abandonment of the Premises or other violations of lhis Agreement by Lessee; and (3) all COSts incurred by Lessor resulting from any action or sui~ for eviction. unpaid rent, or any other debt or charge. including but nOllimn.ed to reasonable anorney fees and coun COSts. VII. GENERAL PROVISIONS A. Force Maieure. If the performance of any part of this Agreement by either part)' is prevented, hindered, delayed. or otherwise ma.d.e impr4Cticable by reason of <my tlood, riot. fire. judicial or government action. act of God. or any other causes beyond the control of either party. that party shall be excused from such 10 the extent that it is prevenred. hindered, or clelayed by such causes. B. Waiver. The performance or observance of any promise or condition set form in Ihis Agreement may be waivea only in writing. No t1elay m the exercise at any power. nght. or rc::med.y operates as a. waiver thereof. nor shall any single Or partial exercise of any other power, right. o! remedy. LeSSO! may use lIS legal rights and remedies in any I;ambination and. by using one Or more of these rights or remedies. Lessor does nOt waive any other rights Or remedies it may hi:\ve av.ulable. c. Se'lerabilitv. If any provision or application of lhiolt Agreement is held invalid. unlawful, or utherwise unenforceable in any respect. it is to that extent to be dc::~rnetl omitteu. . The remctinder of the Agreement shilll be vOllid and enfurc:eable to the maximum extent pussible. D. Assie:nmem. Lessee may not. but Lessor may. assign or sublease its rights. duties. or obligallons under this Agreement to any person O! entity. in whole or in part. The cuvenants and agreements in this Agreement shall bind and benefit the heirs. executors. administratOrs. successors. and assigns of the parties 10 this Agreement. E. Entire A~eement. This Agreement constitutes the complete and exclusive olitaremCnI at all mUlual underst~dings between the parties with respect to the subject maner hereof. and supersedes all prior or contemporaneous proposals. communications. and understandings, whether oral or written. Any amendment or moditication of this Agreement must be in writing lUlU. signed by both parties. F. Governine Law: Consent to Jurisdiction. This Agreement shall be governed by and consaued in accordance with the laws of the state ot Minnesota. without regi:U'd to its conllict uf la.ws provi.si()ns. G. Read and Understand. Each partY acknowledges that il has read and undersTallds lhis Agreement and agrees to be bound by its 1enns. . I'JC.17776i~ ~N' I 00-15 6 . . . 03-29-00 16: 32 Dare: DATE: PJC'1777QOvl MN !9(>-&5 From-KENNEDY & GRAVEN +6123379310 T-881 P.D9/16 F-765 SPS. INC. By President HOUSING AND REDEVELOPMENT AUlHORrfY IN AND FOR THE CfIY OF MONTICELLO. MINNESOTA By Its Chair By Its Executive Director 7 . City of Monticello March 31, 2000 Page: 7 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 \ ~~ Tr-C;- ~ ~ MN190-00085 Skipper's Pool Lease To Through March 31, 2000 For All Legal Services As Follows: 3/19/2000 PJC Draft lease agreement 3/20/2000 3/28/2000 3/29/2000 . PJC Continue to draft lease agreement SJB Review/revise lease; letter to Koropchak. SJB Review/revise lease, letter to Koropchak. Total Services: For All Disbursements As Follows: . Photocopies Postage Total Disbursements: Hours 4.00 1.10 0.60 0.50 $ $ Total Services and Disbursements: $ Amount 320.00 88.00 89.40 74.50 571.90 1.60 1.76 3.36 575.26 Council Minutes - 3/13/00<. . There was some discussion on fees based on the complexity of the project and it was felt there needed to be some clarification on the engineering fees and how they were determined. Bruce Thielen noted that the grant application process is very competitive and it would be unlikely, if the City would drop out that thcy would be funded again at some future date. Thc consensus of the Council was that the projcct was important. Howevcr, they were looking to see if the City fundcd the City's share of the project from reserves what impact it would havc. Bruce Thielen also suggested that the Mayor and/or Councilmcmbers go to the school district and discuss funding participation by the district. Clint Herbst questioned whether it was feasible to have a second engineering firm look at this project. John Simola, Public Works Director, responded that the timc frame on this project being limited would not work well f()l' involving a second engineering linn. Clint Herbst asked what the estimated engincering costs would be for the plans and specifications. Bret Weiss replied the cost would be approxinmtely $62,000. BRUCE THIELEN MOVED TO AUTHORIZE THE ENGINEER TO PREPARE PLANS AND SPECIFICATIONS FOR THE BRIDGE AND P A TlIW A Y PROJECT AS OUTLINED IN THEIR SCOPE OF SERVICES UNDER THE FEE ARRANGEMENT AS REQUESTED CONTINGENT UPON THE STAFF DETERMINING OPTIONS FOR FINANCING OF THE CITY'S SHARE Of THE PROJECT COSTS AND BRINGING THESE FINANCING OPTIONS BACK TO THE COUNCIL FOR DISCUSSION AT A FUTURE MEETING. ROGlm. CARLSON SECONDED 'II-IE MOTION. MOTION CARRIED UNANIMOUSLY. . 8~ Consideration of a reQuest for a conditional use permit to allow open sales as an accessory use in the B-4. Rel!ional Business District. Applicant: Skipper Pools and Spas. Jeff O'Neill summarized the Planning Commission's consideration of this item and reviewed the conditions proposed as part of the conditional use permit. The Planning Commission also addressed the complaints about the property owner's storage of materials outside. It was noted that the site is not ideal for its current use so it is extremely ditticult to arrive at a permanent solution on the issue of outside display and storage. There was discussion on whether it was better to allow the display and storage on the site or on the property owned by the HRA and leased to the tcnant. BRUCE THIELEN MOVED TO APPROVE l'(-{E CONDITIONAL USE PERMIT ALLOWING OUTDOOR DISPLAY AND SALES FOR SKIPPER POOLS AND SPAS LOCATED AT 101 WEST BROADWA Y (Lots 9 & 10, Block 52, Original Plat) SUBJECT TO THE FOLLOWING CONDITIONS: 1. Entering into a s,ltisfactory lease arrangement with the lIRA that includes a hold harmless and indemnification clause protecting the City against lawsuits associated with display of pools tilled with water. All lighting must he direded a\\,IY from the public right-of-way. Parking stalls must be clearly striped and marked. No permanent or temporary signs shall be erected on the outdoor display. Any swimming pool or spa displayed outdoors must be provided with a continuous surrounding barrier 10 prevent entry. Outdoor swimming pool or spa displays may conlain waler for structural reasons, butl1lust be securely covered during night time or non-business hours. . 2. 3. 4. 5. 6. 4 . . . Recording Secretary Council Minutes - 3/13/00 7. 8. All itcms shall be removed by August J I ,2000. No outside storage is allowed under this permit. The conditional use permit shall bc seasonal from April through August J 1,2000. BRIAN STUMPF SECONDED TilE MOTION. MOTION CARRII_~D UNANIMOUSLY. 9. Consideration of an amendment to the zoning map to rezone a parcel from I-IA. Light Industrial to R-3. Multiple Familv Residential. Applicant: .ToseHh & Mamie LaFromboise. The Planning Commission in their consideration of the rezoning request recommended denial of the rezoning from I-IA to R-3 based on the finding that the City's Comprehensive Plan calls for preservation of industrial land. They also felt that while freeway exposure was an enhancement for industrial use it would have a negative impact on multiple family. BRUCE THIELEN MOVED TO APPROVE THE DENIAL or TI-IE REZONING REQUEST Of GUS LAfROMBOISE TO REZONE OUTLOT A, CONSTRUCTION 5 ADDITION FROM I-IA TO R-3 BASED ON A FINDING THAT THE COMPREHENSIVE PLAN CALLS FOR PRESERVATION Of INDUSTRIAL LAND AND THE FREEWA Y EXPOSURE WOULD NEGATIVELY IMPACT A MULTIPLE F AMIL Y PROJECT. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Consideration of payment of bills for March. 2000. BRIAN STUMPf MOVED TO APPROVE P A YMEN'r OF BILLS FOR MARCH. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Bruce Thielen stated that during the construction process for the community center there was a small group that met periodically to work out construction issues. lie suggested that there be a permanent mechanism established for the operation of the community center similar to the Park Commission. It was felt that if the smaIl group is going to continue to function for awhile yet, they could set in motion the formalizing of a commission for the community center. Clint lIerbst questioned the appropriateness of community center contacting the school regarding supervision of students who were at the community center on a day when school was closed. The Council bridly commented on a proposal for the use of the former senior citizen building. The consensus of the Council was that they did not feel the proposed use would fit the area. CLINT HERBST MOVED TO ADJOURN AT 8 P.M. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 5 . . . HRA Agenda - 5/3/00 8. Consideration to discuss for determination the selection and compensation of the Executive Director of the ORA oer the ORA Bylaws. JO/RW/OK At the April liRA meeting, the commissioners approved the rIRA Bylaws amending the regular meeting place of the HRA from 250 East Broadway to 505 Walnut Street. Additionally and upon review of the Bylaws, it was noted that the selection and compensation of such personnel (including the Executive Director) shall be determined by the Board of the Commissioners subject to the laws of the State of Minnesota. The Executive Director suggested contacting the City Administrator for input of the selection and compensation of the HRA Executive Director. However, the commissioners requested the discussion or item be placed on the HRA agenda in May. Currently 30% of the Economic Development Director's salary is assigned to the HRA budget. The Job Description of the Economic Development Director was updated in November 1999, and submitted to the Director's Supervisor for review with recommendations forwarded to the Administrator. Since 1991 a comparable worth program has been in place which is mandated by the State of Minnesota. Regardless of the bylaws of the HRA, the Economic Development Director position must abide by this program unless the HRA wants to fund the position and all of its support completely apart from the City. When the comparable worth program was created, the formation of each job description relied in the input of employees at each position. City Administration has been diligent in maintaining this system. As part of this maintenance, all positions have been eligible for step adjustments at any time based on changes in duties. Since 1991 a number of positions have been modified based on changes in duties which is reflective of a city and organization growing in both size and complexity. Early after the initiation of the program, all employees were given a chance to make an appeal. The Economic Development Director did not submit a revised job description at this time. Again in 1995, the City Administrator requested input from employees for the purpose of updating job descriptions and associated points. A number of employees responded to this request. Some received additional points and some did not. The Economic Development Director did not a submit a request for ajob description reevaluation at this time. -1- HRA Agenda - 5/3/00 . Over two years ago, at a regular evaluation of the performance of the Economic Development Director, it was noted that the job responsibilities and complexity of tasks might warrant additional points which could push the position to the next step. At this session, the Economic Development Director agreed to identify the changes in the position so that the job description could be rewritten and recvaluated in terms of the comparable worth program. The changes in the position were identified by the Economic Development Director were provided in November of 1999. . Since receiving this information from the Economic Development Director, the Deputy Administrator/Community Development Dircctor reviewed the changes in duties with the Economic Development Director and requestcd that the City Administrator adjust the comparable worth points. In reviewing the demands of the position with the Economic Development Director, he found that the current level of education and experience needed to be elevated. The Deputy Administrator/Community Development Director made a recommendation to the City Administrator that the position be elevated by one step. He also requested that the pay change be retroactive to January 2000. Apparently, there was a mix- up between the City Administrator and payroll and the change in pay did not occur as expected. This error is being rectified with the next payroll according to the City Administrator. The revised job description will be completed shortly. From the prospective of the liRA, the duties and responsibilities of the Executive Director have changed or increased and the knowledge, skills, and abilities have increased with experience or grown due to the new reporting requirements and changes enacted by the State Legislators which governs the HRA and TIF plus the addition of 14 new TIF Districts. The overall general supervision of the lIRA's business and affairs has grown as the I-IRA has broadened its role in the overall economic development activities of the City of Monticello. This is reflected in the step increase noted above. The City Administration and the Community Development Department is committed to maintaining a viable state approved comparable worth program. The Economic Development Director as an Employee of the City and the HRA must be part of this program. Employees that feel that their position has evolved to the extent that the points need to be adjusted are encouraged to review the situation with his/her supervisor on an annual basis. If you would like further detail, the City Administrator would be happy to review with you the overall pay equity program including method/formula for establishing pay equity as well as the detail of the Economic Development Director job description. . -2- . . . BRA Agenda. 5/3/00 9. Consideration to discuss and summarize special meetine held at 5:30 p.m. This item is to allow the HRA Commissioners to discuss and summarize the special meeting held at 5:30 p.m. Are there loose ends to tie-up? What are the next steps to take if any? Etc? I Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis. MN 55402 (612) 337-9300 ...... ..... City of Monticello ACCOUNTS PAYABLE 505 Walnut Street, Suite 1 Monticello, MN 55362 Through March 31, 2000 MN190-00041 Redevelopment - General April 7. 2000 Statement No. 32558 'r\ C2-. ~ ~ ~a..9-. ~ t\.. ~ ~ ~~""-~ MN190-00078 Community Center-Post Closing Issues MN190-0007~6 (Twin City Die Casting)~ MN190-00080 Midwest Graphics Amendment '\ .t:.~ 'Q ~ ,,;>-t- \-':).3 MN 190-00084 DTEO Loan - Twin City Die Casting "\ ~ \'- \ - ~ l..:? '\ 0.4-. ~ _\ -; ~ \;\\- -'LtC;- \"? ~ . M N 190-00085 Skipper's Pool Lease Expenses I declare, under penalty of law, that this account, claim or demand is just and c rect and that rt of tt ~en paid. . Total Current Billing: 74.50 312.00 0.00 37.25 3,300.00 571.90 200.63 4,496.28 . . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 April 7, 2000 Invoice # 32558 City of Monticello ACCOUNTS PAYABLE 505 Walnut Street, Suite 1 Monticello, MN 55362 r+ R ~ - ~~.o.JL MN190-00041 Redevelopment - General Through March 31, 2000 For All Legal Services As Follows: 3/16/2000 SJB Telephone call with O. Koropchak re: various Contract matters. Total Services: ~ Hours 0.50 Amount 74.50 $ 74.50 Total Services and Disbursements: $ 74.50 . Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello March 31, 2000 ~~~ MN190-00078 Community Center-Post Closing Issues Through March 31, 2000 For All Legal Services As Follows: 3/9/2000 DJG Revise lease agreement and draft cover letter re: same. Total Services: For All Disbursements As Follows: . Postage Photocopies Fax Lightning Legal Courier.Messenger Service Total Disbursements: 3/10/2000 \2:> ~~ Hours 2.40 $ Total Services and Disbursements: $ . Amount 312.00 312.00 $ 7.48 43.20 26.00 48.40 125.08 437.08 . Page: 3 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello March 31, 2000 ".---------- MN190-0007 TIF 1-26 (Twin City Die Casting) For All Disbursements As Follows: 3/13/2000 Photocopies Fax Federal Express; delivery charge Total Disbursements: . Total Services and Disbursements: $ . . $ 3.20 1.00 11.03 15.23 15.23 . Page: 4 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello March 31, 2000 M N 190-00080 1T\- Y\J 0 ~ \ - d-3 Midwest Graphics Amendment Through March 31, 2000 For All Legal Services As Follows: 3/31/2000 SJB Telephone call with J. Brandt re: assignment of Contract. Total Services: Hours 0.25 $ For All Disbursements As Follows: 2/1/2000 Parking expense (DJG) . Total Disbursements: $ Total Services and Disbursements: $ (\ ~ ~~~J,'uY . O~V' )V-- - ~v . Amount 37.25 37.25 11.00 11.00 48.25 \7 . Page: 5 Kennedy & Graven, Chartered 200 South Sixth Street suite 470 Minneapolis, MN 55402 City of Monticello March 31, 2000 MN190-00084 DTED Loan - Twin City Die Casting Through March 31, 2000 For All Legal Services As Follows: Hours Amount 3/2/2000 DJG Phone call with 0 Koropchak re loan closing deferral 0.50 65.00 3/6/2000 DJG Telephone call with O. Koropchak re: loan documents. 0.20 26.00 3/7/2000 DJG Draft revolving loan fund criteria. 1.30 169.00 3/8/2000 DJG Telephone call with O. Koropchak re: Agreement Board 0.40 52.00 loan closing. 3/8/2000 DJG Draft revolving loan fund agreement. 6.80 884.00 . 3/8/2000 SMS Legal research re MN Agricultural and economic 1.00 120.00 development bond; conference with D Greensweig; telephone conference with L Krenz re subordination agreement. 3/9/2000 DJG Draft revolving loan fund agreement. 5.90 767.00 3/10/2000 SMS Telephone conference with L Krenz re Subordination 0.30 36.00 Agreement and closing; conference with R Ball; review abatement materials 3/13/2000 SMS Telephone conference with L Krenz re delivery of 0.20 24.00 documents to City Special Meeting. 3/14/2000 DJG Prepare loan fund criteria and hearing notice. 2.20 286.00 3/15/2000 DJG Draft DTED loan agreement. 4.80 624.00 3/16/2000 DJG Telephone call with O. Korapchak re: Loan Fund Criteria. 0.20 26.00 3/21/2000 DJG Telephone call with Ollie Koropchak re DTED loan. 0.60 78.00 3/24/2000 DJG Telephone call with O. Koropchak re: DTED issues. 0.30 39.00 3/27/2000 DJG Telephone call with O. Koropchak. 0.20 26.00 3/31/2000 DJG Revise revolving loan fund agreement. 0.60 78.00 Total Services: $ 3,300.00 . ",r", . Page: 6 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello March 31, 2000 For All Disbursements As Follows: 3/15/2000 Postage Photocopies Federal Express; delivery charge Total Disbursements: Total Services and Disbursements: $ . . $ 11.33 23.60 11.03 45.96 3,345.96 - Page: 7 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello MN190.00085 Skipper's Pool Lease r~ \ -- r;J- ?-- T1=-'" b-a--- March 31, 2000 rro Through March 31, 2000 For All Legal Services As Follows: Hours Amount 3/19/2000 PJC Draft lease agreement 4.00 320.00 3/20/2000 PJC Continue to draft lease agreement 1.10 88.00 3/28/2000 SJB Review/revise lease; letter to Koropchak. 0.60 89.40 3/29/2000 SJB Review/revise lease, letter to Koropchak. 0.50 74.50 Total Services: $ 571.90 For All Disbursements As Follows: Photocopies 1.60 Postage 1.76 Total Disbursements: $ 3.36 Total Services and Disbursements: $ 575.26 t -. --- 11. ~ , BRA Agenda - 5/3/00 Consideration of Executive Director's Report. a) TIF District No. 1-12 - Attached is a letter to the Schoens notifying them of the Commission's action of AprilS including an invoice of payment due. As of April 25, the May 5 payment has not been received. b) 2000 Minnesota Business Assistance Forms - At the April meeting, the Commissioners requested a copy of the forms submitted to the State as relative to the lIRA subsidy. Not attached are the EDA or City forms. c) Prospects _ Letter to Linda Lund. A message was on my voice mail and Linda is out- of-the-office until April 26 so unable to get more detail ofthe manufacturing business. After faxing and mailing the information and brochures, Charlie Pfeffer updated me on the availability of the 60.55 acres as marketed. The 60.55 is less the 7.15 acres being platted for Profile, vacant, and Pipeline and less another 10 acres for a client Charlie is working with. This means the marketed parcel consists of 43.4 acres not 60.55 acres. The other larger parcel marketed is that proposed by the City for swap with Chadwick. d) Wayne Gus _ Power Training Service. Looking to construct a 5,000-6,000 sq ft steel building. Rebuilds railroad and bulldozer transmissions. Requested no assistance. Currently in Rogers. Gave Pfeffer's phone. e) DaveHost _ Twin City Bindery - Lease up in December, wants to build 10,000 to 12,000 sq ft steel building at a land and building value of $250,000. Big Lake aggressive to give land and partner with contractor to construct a 7,500 sq ft block building. States Big Lake taxes are lower. Becker can do metal building and aggressive. Liked Monticello but didn't find very aggressive for his needs as I did not offer TlF. f) Twin City Die Castings _ The company has altered its design of the facility by removing the steel curved tower and the glass walkway to reduce the costs incurred to comply with the fire codes of a magnesium process facility. The square foot ofthe office and manufacturing facility remain the same and should not affect the tax increment generated. Besides this is a pay-as-you-go. g) April 26 _ Rick and I will attend a meeting of Wright County Administrators and Economic Development Professionals at the Buffalo County Club. Janna King is the guest speaker. h) Kraus Anderson _ Will be marketing the City of Monticello to Bruce Halbasch, Vice President of Marketing, on May 4, 11: 15 to 11: 40 am. Arrangement through Heidi Pepper, Wright County Partnership. i) Billie Kroll- Voice mail from Billie relative to Intercomp's decision to remain and lease additional space in Plymouth. Perhaps in the future will move out and construct own facility. j) Profile powder Coating _ Platting in process, TlF plan being prepared by Ehlers, public hearing for state grant on Council agenda May 8. EDA reviewing preliminary GMEF application April 25. k) Update of community profile - Am pleased with the response from businesses relating to job and wage status and other info requested to update the 1996 profile. Plan to 1 BRA Agenda - 5/3/00 . summary a rate-of-return based on current market rate and total wages paid to amount of TIF assistance. 1) Bus/Golf Outing _ Marketing committee needs to meet. Price increase of golf $25 to $40. m) Industrial Breakfast - Hosted by the Chamber is scheduled April 27, 7:30 a.m. at the Community Center. . . -- 2 .I ,I , I' J , ) . . J April 6, 2000 -- MONTICELLO Jerald J. and Mary E Schoen Aroplax Corporation 200 Chelsea Road Monticello, MN 55362 Dear Jerry and Mary: At the HRA meeting of April 5, 2000, the Commissioners made a motion authorizing the following payment schedule for the Tax Increment Guarantee Deficiency relative to the Contract for Private Redevelopment between the HRA and Jerald 1. and Mary E. Schoen for TIF District No. 1-12: Due May 5,2000 - $6,213.40 Due May 5,2001 - $6,213.40 Due May 5,2002 - Tax Increment Guarantee Deficiency for Taxes Payable 2000. . As you recall, the cumulative Tax Increment Guarantee Deficiency through calender year 1999 was $12,426.80 and the Commissioners agreed to a payment schedule without interest. TIF District No. 1-12 will decertify on June 28, 2001. This means, the last year the Authority will receive Tax Increment is for Property Taxes Payable 2000 and, therefore, the amount of the Tax Increment Guarantee Deficiency for Payable 2000 is unknown at this time. Via a telephone conversation with Steve Schoen on AprilS, 2000, Schoen agreed this was an acceptable solution to an unpredictable and unfortunate situation. Should you have any questions, please do not hesitate to call me at 763-271-3208. Respectfully, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO a~ \L:,O\o Q~ ~ Ollie Koropchak Executive Director Invoice Attached c: Roger Belsaas, Mayor Rick Wolf steller, City Administrator Jeff O'Neill, Deputy Administrator File C \L 0- "'J . 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 MAIL TO ---------_._--~ [ -'--N~ -"-'- ~~ ~_1~/~~~E-~ 1~;u6M;;~ J PAYMENT DUE _~~~~~OO~--- (1 % interest per month will be .charged after due date.) Make checks payable to City of Monticello. L-__--------J .(:~.:..<.: .. tr..-t "I.:'"~.~:t~,'..H1L~,, '.l..m.",. ,.-..,~.,-.,.-.,;;.,..;flJ,.i~..,~,,-,',,".".n'.. - -.., tM.".'"'..'.'..,-.:-i.,:.'j. 'I_ I,," .:(':,,1;., 'j.,'.:":: ,i" !,,' , ."." .~ MONTICELLO ~JTY ~ )1 jvl~ lNTll TLLU S0S Walnul Sneel · Suite 1 Mont ice\1o, MN SS'l62 ['hone: (7(,'l) 29S-2711 hc\: (7hl) 29S-4404 ~-~~' AROPLAX CORP ATTN JERALD & MARY SCHOEN 200 CHELSEA RD MONTICELLO MN 55362 -------.---.-------------.--.--.------.--.-.---.--..-----_.__..._-~_..---_._----_._--_.._-------~-- ~.. --.-- ..---.-----.---- --- PLEASE RETURN PINK COpy WITH PAYMENT TO ENSURE PROPER CREDIT! MISC - REIMB TIF Deficiency Repayment #1-12 2000 installment 155-018-002030 213.31154 $6,213.40 . .-.-----------.---.-.------------.--------.--.--.---------_._.----~-_..__.._..--_.---_..._~-~-_..-._~. TOTAL TO PAY $6,213.40 . +o~ _Trade&- Economic Development 2000 Minnesota Business Assistance Form . . The 2000 Minnesota Business Assistance Form (MBAF) is used to report each business subsidy and fmandaI assistance agreements signed from AU2'ust 1.1999 throUflh December31. 1999 per Minn. Stat. 9116J.993 to 91161.995. Please use a separate form to report each agreement. . The following government agencies must submit a 2000 MBAF even if an agreement was not signed during the period AUflust 1. 1999 thrOUflh December 31.1999: 1) any local government/agency that signed a business subsidy agreement since January 1, 1995, or represents a population of more than 2,500; 2) all state government agencies. If the locaVstate government agency does not have any subsidies or assistance to report, please answer questions 1 through 13 and follow directions. . If a local or state government agency that is required to report has not done so by April 1, DTED will mail a warning. If it fails to report by June 1, it may not award any business subsidies until a report has been flled. . Questions? Call (651) 297~2335. W6rmation on where to mail or fax your completed MEAF(s) in on page 4. Section 1 Information About Grantor 1. Name of grantor (fundin~ entitY) MONTICELLO HOUSING AND REDEVELOPMENT 2. Name of person comj)letin~ this [onn THORITY OLLIE KOROPCHAK 4. City 5. ZIP code 3. Street address 6. County WRIGHT 10. Please indicate who in your organization should receive the 2001 MBAF if different from the person in Question 2. 7. phone number 763-271-3208 8. Fax number 763-295-4404 9. E-mail address okoropch@uslink.cOm . NamelTitle Phonc number Street address City ZIP code 11. Classification of grantor (Mark one. If grantor is entity created by gov't agency, please indicate affiliation. For example, a city EDA wou.ld check "City government. ") 12. Has your organization held a public hearing on and adoptcd criteria for awarding business subsidies in compliance with Minn. Stat. 91161.994? (},,[ark one.) ~ity government o County government o Regional government o State government o Other (Please specify.) Yes (Indicate hearing date - 9 I A 19 9Gnd attach criteria) ONo . . o We held a public hearing but have not yet adopted criteria (Indicate date of initial hearing - ) o Other (Please attach explanation.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through Deccmber 31, 1999 that is required to be reported under Minn. Stat. ~ 1161.993 and 9116J.994? (Mark one.) tfy es (Complete the remainder of the form.) 0 No (Stov here. go to section 5 on page 4.) Section 2 Information About Reci ient 14. Name of business or organization receiving subsidy or financial assistance BLUE CHIP DEVELOPMENT COMPANY TENANT: B & B METAL STAMPING 15. Address where business subsidy or financial assistance will be used S 202adDUNDAS R.{)L\f) treet aress H~lTICELLO zJ53...62 I ty coU.e 16. Does the recipient have a parent corporation? (Mark one.) , o Yes (Indicate name and address of parent corporation below. Ifmore than one, indicate u.ltimate owner.) ~o Namc of parent corporation Street address City State ZIP code 2000 Minnesota Business Assistance Form Page 1 of 4 Department of Trade \ lc~~t 17. Industry of recipient's facility (Mark one.): x:KManufacturing o Services o Finance, Insurance, Real Estate o Retail Trade o Wholesale Trade o Construction o Other (please specify) 18. Did the recipient relocate as a result of signing this agreement? (Mark one.) DYes (Indicate city and state of previous address and reason recipient did not complete this project at that address.) 1J{N"0 (Go to Question 19.) HOWEVER, TENANT RELOCATED FROM ROGERS, MN EXISTING OWNER T - ENTIRE BUILDING City/State of previous address Reason project not completed at previous address 19. Would the recipient have remained in previous location or relocated elsewhere ifnot awarded this business subsidy or financial assistance? (Mark one.) o Remained at previous location ~ Relocated to different Minnesota location o Relocated outside Minnesota . Section 3 General Information About the Aereement 20. Total dollar value of business subsidy or financial assistance (Please separate by type - see Questions 24 and 25 - and indicate only principal amount for loans.) $32,000 OK OVER 21. Date agreement signed (In addition to the agreement date, indicate any dates the agreement was amended.) OCTOBER 5. 1998 22. Benefit date (Indicate the date the recipient will benefit from the business subsidy or financial assistance. For e.:r:ample. indicate the date improvements were finished, equipment was placed into service, or the recipient occupied the property, whichever is earlier.) NOVEMBER 3, 1999 CERTIFICATE OF COMPLETION .. . - AUGUST 1, 2000, RECE!!>T OF FIRST TAX INCREHENT PAYMENT . ~usiness subsidy 23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required to be reported? (Mark one.) o financial assistance 24. Ifthe agreement provided a business subsidy, please indicate the type(s). o not applicable, agreement provided financial assistance o loan o grant (i.e., forgivable loan) o tax abatement ~IF or other tax reduction or deferral o guarantee of payment o contribution of property or infrastructure o preferential use of governmental facilities o land contribution o other (Specify subsidy type.) SITE IMPROVEMENTS 26. If the assistance included tax increment financing, please indicate the type ofTIF district? (Mark one.) o not applicable, assistance was not in the form ofTIF o redevelopment o renewal and renovation o soils condition ~ economic development o mined underground space o hazardous substance subdistrict , 2000 Minnesota Business Assistance Form 25. If the assistance was one of the four types of financial assistance, please indicate the type(s). l@ not applicable, agreement provided a business subsidy o assistance for property polluted by contaminants o assistance for renovating building stock or bringing it up to code, when 50% or less of total cost o assistance for pollution control or abatement o assistance for a TIF soils condition district 27. Are any other grantors providing a business subsidy or financial assistance to the same project? (Mark one.) o Yes (Specify each grantor and the value of their assistance below; attach an additional sheet if necessary.) ~No Grantor(s) and value of the agreement(s): Grantor Value ($) Value ($) Grantor Page 2 of 4 Department of Trade and Ec~nomic Development . Section 4 Goals and Public Purpose Identified in the A2reement 28. Minn. Stat. ~ 1161.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) o Enhancing economic diversity UCreating high-quality job growth o Job retention o Stabilizing the community xJi) Increasing tax base (cannot be only purpose) o Other (please specifY) o Other (please specifY) o Other (please specifY) 29. Indicate whether the agreement included the following types of goals, and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment daters) for each goal.) A) Specific wage and job goals to be attained within 2 years B) Other job-creation and/or retention goals C) Other wage goals D) Other goals other than wage and job goals Goals established? ~Y;:s DNa DYes DNa DYes DNa DYes DNa Target attainment All goals dates (month & year) attained? Al1gl1"lt" I, ?002 nYes 0 No DYes DNa DYes DNa DYes DNa (Please attach descriptions of goals and progress toward attainment if not documented in Question 30.) 30. For each of the following wage categories, indicate the job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided health insurance goals for those jobs. (Onlv indicate job creation goals infull-time equivalents if you are unable to separate goals by full- and part-time positions.) Full-time Part-timel fiE (onlv If goals not Hourly Wage Job SeasonaVTemp. stated as FI/P1) Job Hourly Value of (excludIng benefits) CreatIon Job CreatIon Job Creation Retention Health Insurance - . no hourly wage-level goal - - - - 5 - less than 57.00 - - - - $_ $7.00 to $8.99 - - - - 5_ 59.00 to 510.99 - - - - $_ 511.00 to $12.99 - - - - 5 - i\J.ee t" 5109 - - - $ $14.10 ~ z:ot 515.00 and higher - - - - $_ 31. For each of the following wage categories, indicate the number of ac:tual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (On Iv indicate job creation in fUll-time equivalents if you are unable to separate job creation into full- and part-time positions.) Full-time Part-tlmel FIE (onlv If unable to Hourly Wage Job SeasonaVTemp. separate FTIP1) Job Hourly Value of (excluding benefits) Creation Job Creation Job Creation Retention Health Insurance less than $7.00 - - - - $_ 57.00 to 58.99 - - - - $ - 59.00 to 510.99 - - - - $_ $11.00 to 512.99 - - - - 5 - _ ..... ~.l..,.JJ ~ - - - $ 2.67 $14.10 $15.00 and higher - - - - 5_ . 32. Has the recipient achieved allll:oals (see Questions 29, 30 and 31) and fulfilled all oblill:ations stipulated in the agreement? (Mark one.) :lQcYes 0 No 2000 Minnesota Business Assistance Form Page 3 of4 Department of Trade and Economic Development . . , Section 5 Recipients Failing to Fulfill Obligations Do not complete this section if you completed it on another 2000 MBAF submitted to DTED.) 33. During the period August I through December 31, 1999, did your organization have any recipients who failed to report as required by Minn. Stat. ~ 1161.993 and ~ 116J.9941 (Mark one.) DYes (Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded 10 that recipient. Attach additional pages if necessary.) M:No Name ofrecipient Type of subsidy or assistance (See Questions 24 and 25.) Value of subsidy or assistance 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after August I, 1999, that were required to be fulfilled by the time of this report? (Mark one.) D Yes (Complete the remainder of this section.) ~ No (Stop here and submit form to DTED .) 35. - 39. Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. (Attach additional pages if necessary.) 35. Information on recipient and agreement: Name of recipient in default Type of subsidy or assistance Initial value of subsidy or assistance Street address of recipient City/ZIP code of recipient Outstanding value of subsidy or assistance 36. Reason(s) for default (Mark all that apply.): D recipient ceased operation D recipient relocated to a different community D recipient was unable to fill vacant positions D other (Specify reason.) 37. To date, has the recipient fulfilled its repayment obligation? (Mark one.) DYes D No, recipient has bellun to repay the assistance. D No, recipient has not begun to repay the assistance. 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) DYes DNo 39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s) by ADr;l], 2000, to: 2000 Minnesota Business Assistance Fonn Minnesota Department of Trade and Economic Development. AEO 500 Metro Square, 121 East 7th Place St. Paul, MN 55101-2146 Or fax to: (651) 215-3841 2000 Minnesota Business Assistance Form Page 4 of4 Department of Trade and Economic Development . +or~ -Trade&- Economic Development 2000 Minnesota Business Assistance Form . The 2000 Minnesota Business Assistance Form (MBAF) is used to report each business subsidy and fmancial assistance agreements signed from AUJ!ust 1. 1999 throuflh December 31. 1999 per Minn. Stat. ~ 1161.993 to ~ 116J.995. Please use a separate form to report each agreement. . The following government agencies must submit a 2000 1MBAF even if an agreement was not signed during the period AUflust 1.1999 throuflh December 31.1999: 1) any local government/agency that signed a business subsidy agreement since January 1, 1995, orrepresents a population of more than 2,500; 2) all state government agencies. If the 10caVstate government agency does not have any subsidies or assistance to report, please answer questions 1 through 13 and follow directions. . If a local or state government agency that is required to report has not done so by April 1, DTED will mail a warning. If it fails to report by June 1, it may not award any business subsidies until a report has been filed. . Questions? Call (651) 297-2335. furormation on where to mail or fax your completed MBAF(s) in on page 4. Section 1 Information About Grantor 1. Name of grantor (funding entity) MONTICELLO HOUSING AND REDEVELOPMENT 2. Name of person completing this form UTHORITY OLLIE KOROPCHAK 4. City 5. ZIP code MO~ICELLO 55362 3. Street address 505 WALNUT STREET. SUITE 1 6. County 7. Phone number 8. Fax number 9. . 10. Please indicate who in your organization should receive the 2001 MBAF if different from the person in Question 2. . ZIP code Nametritle Phone number Street address City 11. Classification of grantor (Mark one. If grantor is entity created by gov 't agency, please indicate affiliation. For example, a city EDA wOllld check "City government. 'j 12. Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn. Stat. ~116J.994? (Mark one.} Yes (Indicate hearing date _ 9/8/99 and attach criteria) CN"o Lj We held a public hearing but have not yet adopted criteria (Indicate date of initial hearing - ) o Other (Please attach €."Cplanation.) gCity government o County government o Regional government o State government o Other (Please specifY.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31, 1999 that is required to be reported under Minn. Stat. ~ 1161.993 and ~ 116J.994? (Mark one.) nYes (Complete the remainder of the form.) o No (Stoo here. go to section 5 on page 4.) S t' 'I t R . . Ab ec Ion _ n ormatIon out eClplent 14. Name of business or organization 15. Address where business subsidy or financial assistance receiving subsidy or financial assistance will be used MIDWEST GRAPHICS AND RESPONSE SYSTEMS. 9600 FALLON AVE NE MONTICELLO 55362 INC. Street address City ZIP code 16. Does the recipient have a parent corporation? (Mark one.) o Yes (Indicate name and address of parent corporation below. Ifmore than one, indicate ultimate owner.) GNo Name of parent corporation Street address City State ZIP code 2000 Minnesota Business Assistance Form Page 1 of4 Department of Trade and Economic Development . . . 17. Industry of recipient's facility (Mark one.): !Xl Manufacturing o Services o Finance, Insurance, Real Estate o Retail Trade o Wholesale Trade o Construction o Other (please specify) 18. Did the recipient relocate as a result of signing this agreement? (Mark one.) aVes (Indicate city and state of previous address and reason recipient did not complete this project at that address.) o No (Go to Question 19.) Expanded and consolidated headquarters and manufacturing 1'l.~U;pl. W1 <iE.'\DQUARTER' S LFe.^-,~E 81' .'iCE j;frPIRED City/ tate 0 prevIous address eason project not comp ete at prevIous ress 19. Would the recipient have remained in previo".; location or relocated elsewhere if not awarded this business subsidy or financial assistance? (Mark one.) o Remained at previous location .,RRelocated to different Minnesota location o Relocated outside Minnesota Section 3 General Information About the A2reement 20. Total dollar value of business subsidy or fin'ancial assistance (Please separate by type. see Questions 24 and 25 - and indicate only principal amount for loans.) $181.000.00 21. Date agreement signed (In addition to the agreement date. indicate any dates the agreement was amended.) JUNE 3. 1998 ALLIED COMPANIES. LLC JULY 28. 1999 ASSIGNED AND AMENDED TO MIDWEST GRAPHICS AND RESPONSE SYSTEMS INC. 22. Benefit date (Indicate the date the recipient will benefit from the business subsidy or financial assistance- For example. indicate the date improvements were finished. equipment was placed into service. or the recipient occupied the property. whichever is earlier.) FEBRUARY 12. 1999 CERTIFICATE OF COMPLETION OCTOBER 19.1999 UP FRONT TIF ASSISTANCE PAYMENT ~ business subsidy 23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required to be reported? (Mark one.) o financial assistance 24. If the agreement provided a business subsidy, please indicate the type(s). o not applicable, agreement provided financial assistance o loan o grant (i.e., forgivable loan) o tax abatement Qfi TIF or other tax reduction or deferral o guarantee of payment o contribution of property or infrastructure o preferential use of governmental facilities o land contribution $58.800 land write-down o other (Specify subsidy type.) $122. 200 site imp r 0 26. If the assistance included tax increment financing, please indicate the type ofTIF district? (Mark one.) o not applicable, assistance was not in the form ofTIF o redevelopment o renewal and renovation o soils condition ~ economic development o mined underground space o hazardous substance subdistrict 2000 Minnesota Business Assistance Form 25. lfthe assistance was one of the four types of financial assistance, please indicate the type(s). Anot applicable, agreement provided a business subsidy o assistance for property polluted by contaminants o assistance for renovating building stock or bringing it up to code, when 50% or less of total cost o assistance for pollution control or abatement o assistance for a TIF soils condition district ements 27. Are any other grantors providing a business subsidy or financial assistance to the same project? (Mark one.) o Ves (Specify each grantor and the value of their assistance below; attach an additional sheet ifnecessary.) :YNo Grantor(s) and value ofthe agreement(s): Grantor Value ($) Grantor Value ($) Page 2 of 4 Department of Trade and Economic Development . Section 4 Goals and Public Pur ose Identified in the A reement . . 28. Minn. Stat. ~ 116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all thar apply.) o Enhancing economic diversity Creating high-quality job growth o Job retention o Stabilizing the community :lQlncreasing tax base (cannot be only purpose) o Other (please specify) o Other (please specify) o Other (please specify) 29. Indicate whether the agreement included the following types of goals, and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainmenr darers) for each goal.) A) Specific wage and job goals to be attained within 2 years 40 B) Other job-creation and/or retention goals 37 C) Other wage goals D) Other goals other than wage and job goals Goals established'? ~Y;:s ONo XlCYes 0 No DYes ONo DYes ONo Target attainment All goals dates (month & year) attained'? January 1. ZOOI[} Yes 0 No February if"; 2WYes 0 No DYes DNo DYes DNo (Please attach descriptions of goals and progress toward attainment if not documented in Question 30.) 30. For each of the following wage categories, indicate the job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided health insurance goals for those jobs. (Onlv indicate job creation goals in full-time equivalents if you are unable to separate goals by full- and part-time positions.) Jdm~~ ~~;i* At ~,~'?a~9;.24 At tAi~9. 00 At least $12.00 f~.a" lu ~ At l~ast $,14.00 fl_l\e _..J Iii.-61 I t east . 31. For each 0 the following wage categories, indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (Onlv indica,te job creation in fUll-time equivalents if you are unable to separate job creation into fUll- and part-time positions.) Hourly Wage (exc:lUding benefits) no hourly wage-level goal Hourly Wage (exc:luding benefits) less t1'_1 $1.60 J1:'1)6 lu $8.~ AT LEAST $8.24 S~Q la (t'J 99 AT LEAST $10.00 $11 ']g '"7 j('" 00 AT LEAST $12.00 )i).ae t6 $ll.QQ AT LEAST $14.00 Sl.!i.O I . , . ~"'. Full-time Job Creation Part-time! SeasonaVT emp. Job Creation FfE (only if goals not stated as FT'/Pl) Job Creation Job Retention Hourly Value of Health Insurance s_ s_ 37 2 1 s_ 2.42 s_ s_ s_ 5 s_ Full-time Job Creation Part-time! SealonaVTemp. Job Creation FT'E (only if unable to separate FfIPl) Job Creation Job Retention Hourly Value of Health Insurance s_ s_ 2.42 s_ .1L 2- .-1- s2.42 s2.42 s2.42 Has the recipient achieved aI I!oals (see Questions 29, 30 and 31) and fulfilled all oblil!ations stipulated in the agreement'? (Mark one.) DYes 5lNo 2000 Minnesota Business Assistance Form Page 3 of4 Department ofTme and Economic Development +or~ -Trade&- Economic Development 2000 Minnesota Business Assistance Form . . The 2000 Minnesota Business Assistance Form (MBAF) is used to report each business subsidy and fmancial assistance agreements signed from AUllust 1.1999 thrOUflh December 31.1999 per Minn. Stat. ~ 1161.993 to ~1161.995. Please use a separate fonn to report each agreement. . The following government agencies must submit a 2000 MBAF even if an agreement was not signed during the period Autlust 1.1999 throUllh December 31.1999: 1) any local govenunentJagency that signed a business subsidy agreement since January 1, 1995. or represents a population of more than 2,500; 2) all state government agencies. If the local/state government agency does not have any subsidies or assistance to report, please answer questions 1 through 13 and follow directions. . If a local or state government agency that is required to report has not done so by April l. DTED will mail a warning. If it fails to report by June l. it may not award any business subsidies until a report has been filed. . Questions? Call (651) 297-2335. Infonnation on where to mail or fax your completed MBAF(s) in on page 4. Section 1 Information About Grantor . I. Name of lIantor ~undinf: enti~ 2. Name overson com:fIletin~ this form MONTIC LLO OUS NG D REDEVELOPMENT UTHORIT OLL E K ROPCHAK 3. Street address 4. City 5. ZIP code o:;no:; l.fA N' ~TK ,~. ~TTT'T'l<' 1 MIIN' Tn ~~1h? 6. County 7. Phone number 8. Fax number 9. E-mail address WRIGHT 763-271-3208 763-295-4404 okoropch@uslink.coll 10. Please indicate who in your organization should receive the 200 I MBAF if different from the person in Question 2. Name/Title Phone number Street address City ZIP code 11. Classification of grantor (Mark one, If grantor is entity 12. Has your organization held a public hearing on and created by gov 't agency, please indicate affiliation. For adopted criteria for awarding business subsidies in example, a city EDA would check "City government. 'j compliance with Minn. Stat. ~ I I 61.994? (Mark one.) }@ City government jH{Yes (Indicate hearing date - Q / Ii / Q 9nd attach criteria) o County government ONo o Regional government o We held a public hearing but have not yet adopted o State government criteria (Indicate date of initial hearing - ) o Other (Please specifY,) o Other (Please attach explanation.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31, 1999 that is required to be reported under Minn. Stat. ~ 116J.993 and 9116J.9941 (Mark one.) iJYes (Complete the remainder of the form.) o No (StOfJ here. go to section 5 on page 4.) 2 I R .. . SectIOn nformatIOn About ecinient 14. Name of business or organization 15. Address where business subsidy or financial assistance receiving subsidy or financial assistance will be used TWIN CITY DIE CASTINGS COMPANY 520 CHELSEA ROAD MONTICELLO 55362 Street address City ZIP code 16. Does the recipient have a parent corporation? (Mark one.) DYes (Indicate name and address of parent corporation below. If more than one, indicate ultimate owner.) JEXNo Name of parent corporation Street address City State ZIP code 2000 Minnesota Business Assistance Form Page lof4 Department of Trade and Economic Development 17. Industry ofrecipient's facility (Mark one.): XXManufacturing o Services o Finance, Insurance, Real Estate o Retail Trade o Wholesale Trade o Construction o Other (please specify) 18. Did the recipient relocate as a result of signing this agreement? (Mark one.) DYes (Indicate city and state of previous address and reason recipient did not complete this project at that address.) DNo (Go to Question 19.) City/State of previous address Reason project not completed at previous address 19. Would the recipient have remained in previous location or relocated elsewhere ifnot awarded this business subsidy or financial assistance? (Mark one.) o Remained at previous location ~elocated to different Minnesota location X~ Relocated outside Minnesota . Section 3 General InformatIon About the Agreement 20. Total dollar value of business subsidy or financial assistance (Please separate by type ~ see Questions 24 and 25 - and indicate only principal amount for loans.) $225.000.00 21. Date agreement signed (In addition to the agreement date. indicate any dates the agreement was amended.) OCTOBER 25. 1999 22. Benefit date (Indicate the date the recipient will benefit from the business subsidy or financial assistance. For example. indicate the date improvements were finished. equipment was placed into service. or the recipient occupied the property. whichever is earlier.) SEPTEMBER 1. 2000 ANTICIPATED CERTIFICATE OF COMPLETION 23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required to be reported? (Mark one.) . ~business subsidy 24. Ifthe agreement provided a business subsidy, please indicate the type(s). o not applicable, agreement provided financial assistance o financial assistance 25. If the assistance was one of the four types of financial assistance, please indicate the type(s). leg! not applicable, agreement provided a business subsidy o assistance for property polluted by contaminants o assistance for renovating building stock or bringing it up to code, when 50% or less of total cost o assistance for pollution control or abatement o assistance for a TIF soils condition district o loan o grant (i.e., forgivable loan) o tax abatement UTIF or other tax reduction or deferral o guarantee of payment o contribution of property or infrastructure o preferential use of governmental facilities o land contribution $210.000 land write-down o other (Spec(,ry subsidy type.) $15,000 site improve nents 26. If the assistance included tax increment financing, please indicate the type ofTIF district? (Mark one.) o not applicable, assistance was not in the form ofTIF o redevelopment o renewal and renovation o soils condition X]{economic development o mined underground space o hazardous substance subdistrict . 2000 Minnesota Business Assistance Form 27. Are any other grantors providing a business subsidy or financial assistance to the same project? (Mark one.) i.H! Yes (Spec(,ry each grantor and the value of their assistance below; attach an additional sheet if necessary.) ONo Grantor(s) and value of the agreement(s): CI'T'V nli' MnN'T'Trl':T.T 0 Grantor Monticello EDA Grantor $"on,nnn Value ($) $100.000 Value ($) ~grppmen not execui agreement not execut' CITY OF MONTICELLO $40.000 Trunk fee reduction Contract for Private Redevel executed October 25. 1999. Page 2 of 4 Department of Trade and Economic Development SectIOn 4 Goa sand Pnblic PnTDose Identified in the A2Teement 28. Minn. Stat. 91161.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) . o Enhancing economic diversity ::X:XCreating high-quality job growth o Job retention o Stabilizing the community Q!I Increasing tax base (cannot be only purpose) o Other (please specify) o Other (please specify) o Other (please specify) 29. Indicate whether the agreement included the following types of goals, and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment daters) for each goal.) A) Specific wage and job goals to be attained within 2 years B) Other job-creation and/or retention goals C) Other wage goals D) Other goals other than wage and job goals Goals established? ~Y;:s ONo DYes DNo DYes DNo DYes DNo Target attainment dates (month & year) Sept 1. 2002 All goals attained? DYes ONo DYes DNo DYes DNo DYes DNo 30. For each of the following wage categories. indicate the job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided health insurance goals for those jobs. (Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full- and part-time positions.) FTE (onlv if goals not ~ Full-time Part-time! Hourly Wage Job Seasonalffemp. stated as FT/rT) Job Hourly Value of (excluding benefits) Creation Job Creation Job Creation Retention Health Insurance . no hourly wage-level goal - - - - s_ Iess than $7.00 - - - - s~ ~ - - - - s ~ AT LEAST $8.50 71 $9.00 to $10.99 - - - - s_ 5U{,~ - - - - s_ AT LEAST $12.00 14 $13.00 to $14.99 - - - - s_ $15.00 and higher - - - - s_ (Please attach descriptions of goals and progress toward attainment if not documented in Question 30.) 31. For each of the following wage categories, indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (On Iv indicate job creation in full-time equivalents if you are unable to separate job creation into full. and part-time positions.) -- Full-time Part-time! FTE (only if unable to Hourly Wage Job Seasonalff emp. separate FT/PT) Job Hourly Value of (excluding benefits) Creation Job Creation Job Creation Retention Health Insurance less than $7.00 - - - - s_ !~ - - - - s_ AT ~tbAST ~~ 50 0 9. 0 to $1 . ., - - - - $_ "KOOiCK:Ji!>>OC - - - - S_ AT LEAST \12.00 0 $_ $13.00 to $14. 9 - - - - $15.00 and higher - - - - $_ . 32. Has the recipient achieved allli!oals (see Questions 29, 30 and 31) and fulfilled all oblili!ations stipulated in the agreement? (Mark one.) DYes aQNo 2000 Minnesota Business Assistance Form Page 3 of 4 Department of Trade and Economic Development ~ 1./ ." j ~ , ..~ April 24; 2000 MONTICELLO Linda Lund Cresa partners 150 South 5 Street Suite 3200 Minneapolis, MN 55402 Re: Industrial user looking for 50 to 100 acres. Dear Linda: Thank you for the opportunity to market the City of Monticello to your client. The City of Monticello is only 36.8 miles from downtown Minneapolis ..... No more traffic congestion for employees ..... Affordable and available land for development. . The City of Monticello is open for business. In 1999, the Monticello School District opened the doors to a new 278,000 square foot high school. This month, the City will host a grand opening for the new 78,000 square foot community center and the Hospital District will open its doors to a 30,000 square foot expansion including an expanded emergency room and birthing suites. These are just a few of the new quality of life developments within our community of approximately 8,200+ population located along 1-94 between the Twin Cities and St. Cloud. Immediately available is a 60. 5-acre parcel of industrial-zoned land located within the City of Monticello. The site is accessible via two routes off 1-94. Municipal utilities are in place along Chelsea Road East which abuts and parallels the parcel. This parcel is identified as Parcel A. Secondly, the Monticello City Council authorized city administration to proceed with negotiations for acquisition of 140 acres of industrial zoned land located within the Monticello Orderly Annexation Area (MOAA). This property is located along 1-94 and construction of the infrastructure improvements to access the property is scheduled to commence the end of May. This area may also interest your client and is identified as Parcel B. . Lastly, the City of Monticello has a team of community/civic leaders willing to provide a tour of our community. The team also visits existing plant facilities or businesses prior to determining the level of financial assistance offered to a qualifying business. The City offers Tax Increment Financing and the Greater Monticello Enterprise Fund (a below prime rate loan program). The City of Monticello has been successful in obtaining State funding, industrial revenue bonds, and regional low-interest loans. (\\ ~) 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 . . . Ms. Lund April 24, 2000 Page 2 Linda, I've enclosed a copy of the City of Monticello marketing brochure inclusive of maps outlining the two suggested parcels. Please call me at 763-271-3208 to discuss the proposed industrial development project and to schedule a meeting with you, your client, and members of our community. A first-hand visit to our community will tell the real story <<The City of Monticello is Open for Business." Sincerely, CITY OF MONTICELLO O~ \~Q)O~Y~ Ollie Koropchak Director of Economic Development c: Roger Belsaas, Mayor Rick Wolfsteller, Administrator Jeff O'Neill, Deputy Administrator File V . . . TIME TO UPDATE THE CITY OF MONTICELLO COMMUNITY PROFILE What is a Community Profile and what is its use? A Community Profile is a database of infonnation about the City of Monticello and is used for the purpose of marketing our community for community and economic development. The Profile is available at the City Hall or at http://www.nmpro.com. The Monticello Commwlity Profile was last updated in 1996; therefore, the need for an update. We, as a community, must keep this database in the forefront and accessible to developcrs and busincss leaders around thc world. The profile consists of various sections of economic infonnation used by key leaders making short and long tenn decisions on behalf of their business or enterprise. How can you help? You can help by completing the enclosed section of infonllation which pertains to your business or organization. Please retul1l in the stamped, self-address envelope. Target date of completion of updated information is May 1, 2000. For further information or questions, please call Ollie at City Hall, 271-3208. o\~)