HRA Agenda 02-02-2000
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 2, 2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Academy Room
MEMBERS: Chair Bob Murray, Vice Chair Darrin Lahr, Brad Barger, Steve Andrews, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf
OFFICERS: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recorder
Lori Kreamer.
GUESTS: Mark Ruff, Ehlers & Associates, Inc.
Bill Tapper, Tapper's, Inc.
Barb Esse, MCP
Call to Order.
Consideration to approve the January 5, 2000 HRA minutes.
Consideration of adding agenda items.
Consent Agenda.
Consideration of items removed from the consent agenda for discussion.
Consideration to adopt a resolution awarding the sale of$7,555,000 Public Project
Revenue Bonds, Series 2000A.
7. Continued - Consideration to adopt a resolution modifYing various budgets ofTIF
Districts and modifYing the Redevelopment Plan of Central Monticello Redevelopment
Project No. 1.
8. Continued - Consideration to authorize transfer surplus tax increment from TIP District
Nos 1-8, I-II, and 1-16 to TIF District No. 1-7.
9. Continued - Consideration to adopt resolutions for decertification ofTIF District No. 1-9,
No. 1-10, No. I-II, and No. 1-16.
10. Consideration to authorize employing an attorney to declare default of the Contract for
Private Redevelopment between T.J. Martin, Inc. and the HRA.
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11.
Consideration to review Tax Increment Guarantee Deficiency relative to the Amended and
Restated Amendment to Contract for Private Redevelopment between William and
Barbara Tapper and the BRA for action of direction.
12. Consideration of a request from MCP for funding to assistance with development and
printing costs associated with a retail marketing piece.
13. Consideration to authorize payment of the monthly BRA bills.
14. Consideration of Executive Director's Report.
15, Consideration of Committee Reports:
a) City Council- Brian Stumpf
b) MCP - Steve Andrews
c) Marketing - Darrin Lahr/Brad Barger
d) Community Center - Bob Murray
16. Other Business.
17. Adjournment.
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HRA Minutes * 01/05/00
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 5, 2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Council Chambers
MEMBERS PRESENT:
Chair Bob Murray, Brad Barger, Steve Andrews and Council
Liaison Brian Stumpf
MEMBERS ABSENT:
Vice Chair Darrin Lahr and Dan Frie.
OFFICERS:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak,
Deputy City Administrator Jeff O'Neill and Recorder Lori
Kraemer.
GUESTS:
Mark Ruff, Ehlers & Associates, Inc.
Steve Bubul, Kennedy & Graven
1.
Call to Order.
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Chair Murray called the meeting to order at 7:05 p.m.
2.
Consideration to approve the December 1. 1999 HRA Minutes.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA
MEETING ON DECEMBER 1, 1999. Motion carried.
3. Consideration of adding agenda items.
None.
4. Consent Agenda.
A. Consideration to recommend to City Council a commissioner for annual
appointment.
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Ollie Koropchak suggested the HRA make a motion recommending the City Council
appoint Brad Barger for a five-year HRA term, which he has agreed to, expiration date of
December 2004. HRA Commissioners are appointed each year by the Mayor and City
Council at the first Council meeting held in January. The five-year term seat held by
Commissioner Brad Barger expires December 31, 1999. On January 10, the Mayor and
Council will consider appointing commission members including Brad Barger.
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Koropchak also provided a list of the HRA commissioners' terms after Council
appointment in January.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY STEVE
ANDREWS TO RECOMMEND TO THE CITY COUNCIL THE APPOINTMENT
OF BRAD BARGER FOR A FIVE YEAR HRA TERM. Motion carried.
5. Consideration of items removed from the consent agenda for discussion.
None.
6. Consideration to hear and apProve a concept for use ofTIF assistance for public and site
improvements associated with the Sunnv Fresh Foods expansion.
Ollie Koropchak advised that Don Roberts of Sunny Fresh was not able to attend the
meeting. She gave a brief summary of Sunny Fresh's plans for expansion and their intent
for installation of a sidewalk on Walnut Street, as well as a possible pathway being
installed. Sunny Fresh is not looking at TIF assistance for their expansion but for
improvements such as pathways and sidewalks which are consistent with downtown
revitalization plan.
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Mark Ruff: Ehlers & Associates, addressed the members regarding the possibility of an
agreement between Sunny Fresh and the HRA for TIF assistance for some of their
improvements. Steve Bubul, Kennedy & Graven, advised that this particular project
would most likely qualify for TIF assistance, but advised the need to make sure that the
HRA looks at how this money is being spent, i.e. cleaning up blights, enhancing the area
and not just using TIF to provide assistance to a building in the district that does not meet
the blight test as that could create a problem. There needs to be a rationale that ties the
findings back to the original plan.
Jeff 0 'Neill also advised that when the City did their redevelopment plan it was to
enhance the conditions such as pedestrian pathways/sidewalks and updated the
commissioners on the Planning Commission's approval for a concept plan for Sunny
Fresh at their meeting the previous night as well as Sunny Fresh's willingness to pay their
portion of the improvements. O'Neill stated that he would like Sunny Fresh to sign a
petition to put in a sidewalk on Walnut Street with their portion of the cost being 25%.
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The HRA approved using tax increment to assist with the construction of the following
public improvements: 75% of the cost associated with the sidewalk along the west side of
Walnut Street between 4th Street and the railroad track and the proposed pathway from 4th
Street southerly along Linn Street then easterly along the railroad tracks to Walnut Street.
It is anticipated the tax increment collected from the Sunny Fresh expansion of 17,000 sq.
ft. will cover these public improvement costs. The approval is consistent with the
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Downtown Revitalization study, Planning Commission approval, allows for a safe
pedestrian route to the community center, and is endorsed by Sunny Fresh. Staff will be
working with Burlington Northern to obtain the go-ahead.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO APPROVE A CONCEPT FOR USE OF TIF ASSISTANCE FOR
PUBLIC IMPROVEMENTS ASSOCIATED WITH THE SUNNY FRESH FOODS
EXPANSION. Motion carried.
7. Consideration to adopt a resolution providing for the Sale of $7.555,000 Public Proiect
Revenue Bonds, Series 2000A.
Mark Ruff, Ehlers & Associates, addressed the HRA regarding the refinancing of the
Community Center. The temporary bonds balloon in February 200land are currently
callable in February 2000. A copy of the resolution for adoption by the HRA
determining it necessary to issue the Authority's Bonds to finance the Community Center
through the refinancing of the Temporary Bonds was provided as well as a copy of the
Bond Sale Report and resolution for adoption by the City Council
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Mr. Ruff recommended the City shorten up to15 years and structure the payments around
the City's debt levies which gives a level predicable payment stream so that if the City
has other projects they won't make the payment go up and down.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO ADOPT A RESOLUTION PROVIDING FOR THE SALE OF
$7,555,000 PUBLIC PROJECT REVENUE BONDS, SERIES 2000A. Motion
carried.
8. Consideration to adopt a resolution modifying various budgets of TIF Districts and
modifvin~ the Redevelopment Plan of Central Monticello Redevelopment Proiect No.1.
Mark Ruff, Ehler's and Associates, provided the members with the result of the Quick
TIF Program and the reports thereof generated, it was noted that some line-items within
the TIF budgets did not meet the line-item of the expenditures. It was suggested the HRA
modify the budget and plans for consistency between the plans and the reports to the
State Auditor.
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Mark Ruff provided a handout on sources and uses of funds noting that each line should
have estimates. He will provide more information at the next meeting. The State Auditor
has taken the position that the HRA needs to formally modify the plans if the
expenditures are more or less than what was submitted previously. If the City would get
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audited in the future, these are some issues that would need to be addressed. Mark
requested more time to prepare the resolution and modification.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO TABLE ANY ACTION AND ADVISED MARK RUFF, EHLER'S
& ASSOCIATES, TO PROCEED WITH MODIFICATION AT A COST NOT TO
EXCEED $2,000. Motion carried.
9. Consideration to adopt a resolution approving a modified Redevelopment Plan for
Central Monticello Redevelopment Proiect No. J and a modified TI Plan for TIF District
No. 1-22.
Steve Bubul, Kennedy & Graven, provided a resolution he prepared which modifies the
Redevelopment Plan and TIF Plan for TIF District No. 1-22 (Downtown District). This
resolution is the best faith effort to aSSllre that the HRA can collect and retain the tax
increment collected from larger redevelopment projects which did not receive tax
increment assistance but are located within District No. 1-22. It was the initial intent of
the HRA to use this tax increment for eligible TIF expenditures within the district.
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Steve Bubul provided a report explaining the four year knock-down rule. The resolution
simply modifies the Plans and directs staff to follow through.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO ADOPT A RESOLUTION APPROVING A MODIFIED
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO.1 AND A MODIFIED TIF PLAN FOR TIF
DISTRICT NO. 1-22. Motion carried.
10. Consideration to transfer surplus tax increment from TIF District Nos. 1-8. 1-9, 1-10, I-
II, and 1-16 to TIF District No 1-7.
Ollie Koropchak reported that TIF District No. 1-8 (NSP) was decertified by resolution
for payable 1999. The Tax Increment Guarantee ofapproxirnately $10,000 was paid by
NSP in January 1999 when the district decertified leaving a small amount of surplus tax
increment.
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Koropchak advised that the HRA members would be requested to adopt resolutions
decertifying the other four districts. Except for District No. 1-9 (Tapper's), a small
amount of surplus tax increment is available to transfer from No. 1-10 (Remmele), 1-11
(Martie), and 1-16 (Polycast) to District No. 1-7.
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It is the suggestion of the financial consultant that the surplus tax increment from these
districts be transferred to TIF District No. 1-7 (NA WCO). District No. 1-7 was
decertified a couple years ago and there remains a debt of $70,000 as of January 1, 2000
or semi-annual payments of $10,000 through February 1,2003.
After discussion by members and on the advisement of Mark Ruff, Ehler's & Associates,
the members decided to table any action until further information from Ehler's &
Associates.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO TABLE ANY ACTION. Motion carried.
11. Consideration to adopt resolutions for decertification of TIF District No. 1-9. No. 1-10.
No.1-II. and No. 1-16.
After discussion with Mark Ruff, Ehler's & Associates, it was suggested to table this
matter for further information from Ehler's & Associates.
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A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO TABLE ANY ACTION. Motion carried.
12.
Consideration to authorize entering into a House Lease for 3 Walnut Street between the
BRA and Brandon Link effective February 1. 2000.
Ollie Koropchak introduced Brandon Link to the HRA commissioners and gave a brief
update of the condition of the house at 3 Walnut Street and provided a copy of the
inspection comments of December 17.
When the pending tenant looked at the house on December 27, the house was wide open,
the water running, and the heat turned off. No water damage occurred. Public Works
installed new locks ($109.44) and re-coded the garage door opener.
The pending tenant, Brandon Link, is the son of the City Hall's receptionist, Pam Link.
He is interested in renting and would like to paint if the HRA provides the paint. He has
asked about re-carpeting the dining, living, and stairway areas where the previous tenant
removed the carpet without HRA permission. Lastly, he anticipates his brother will
reside at this location with him.
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A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO AUTHORIZE ENTERING INTO A HOUSE LEASE FOR 3
WALNUT STREET BETWEEN THE HRA AND BRANDON LINK EFFECTIVE
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FEBRUARY 1,2000 AND TO WAIVE THE FIRST MONTH'S RENT IN
RETURN FOR PAINTING AND CARPETING BY THE TENANT. THE
AUTHORITY ACCEPTED 2 ADULT TENANTS. Motion carried.
13.
Consideration to authorize pavment of the monthlv HRA bills.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS.
Motion carried.
14. Consideration of Executive Director's Report.
Ollie Koropchak provided the Executive Director's Report regarding Twin City Die
Castings, Midwest Graphics, St. Benedicts Center, Ron Musich, T.l. Martin, as well as
the City's continued discussion on potential industrial land acquisition. Koropchak also
discussed TIF district I-I (Lincoln Properties), the garage lease for 220 Front Street
which the HRA members agreed to continue for another year, and the use of HRA lot on
West Broadway by Skipper's Pools and the ongoing outdoor storage problem.
Koropchak will once again talk with Skipper's Pool for removal of all debris.
15.
Consideration of Committee Reports:
a) City Council - Brian Stumpf - Nothing new to report.
b) MCP - Steve Andrews - Planning for annual meeting coming in February;
focusing on projects for next year.
c) Marketing - Darrin Lahr/Brad Barger - No update.
16. Other Business.
None
17. Adjournment
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO ADJOURN THE MEETING AT 9:00 P.M. Motion carried.
Chair
Recording Secretary, Lori Kraemer
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HRA Agenda - 2/2/00
6.
Consideration to adopt a resolution awardinll the sale of $7.555.000 Public Proiect
Revenue Bonds. Series 2000A.
A. Reference and Backllround:
At the HRA meeting of January 5, the commissioners adopted a resolution providing for
the sale of the community center bonds to refinance the temporary bonds, Series 1998.
Council adopted a similar resolution on January 10 authorizing city staff and Ehlers to
prepare of the official statements for the bonds. Sealed proposals for purchase of the
bonds will be received at the office of Ehlers until II :00 a.m., February 2, then tabulated
and read at the HRA meeting for consideration to award.
The City Council will meet at 6:45 p.m., prior to the lIRA meeting, to adopt a resolution
authorizing the execution and delivery of a ground lease and a lease-purchase agreement,
and approving and authorizing issuance of public project revenue bonds and execution of
related documents.
Mark Ruff, Ehlers & Associates, will review the bond sale statement and read the
proposals at the meeting prior to the BRA consideration of the following action. The
attached resolution for adoption references more than one document.
B.
Alternative Action:
1. Motion to adopt a resolution awarding the sale of$7,555,000 Public Project
Revenue Bonds, Series 2000A.
2. Motion to deny adoption ofa resolution awarding the sale of$7,555,000 Public
Project Revenue Bonds, Series 2000A.
3. Motion to table any action.
C. Recommendation:
Unaware of the bond market, the lIRA Treasurer gives no recommendation.
D. Supoortinll Data:
Copy of resolution for adoption and Cover letter from legal counsel.
1
Kennedy
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-93]0 fax
http://www.kennedy-graven.com
January 27, 2000
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362
BY MESSENGER
Dear Ollie:
DANIEL J. GREENSWEIG
Attorney at Law
Direct Dial (612) 337-9231
email: dgreensweig@kennedy-graven_com
Enclosed with regard to the Monticello Community Center refunding are copies of an indenture, an
assignment of the indenture, amendments to the existing ground lease and lease-purchase
agreement, and a continuing disclosure certificate. Also enclosed are one resolution to be adopted
by the city and another to be adopted by the HRA. Please provide copies of these documents to
Rick or Jeff for distribution to the council.
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I understand that Mark or someone else from Ehlers will be at the meeting to discuss the bond issue
80 I will not go into detail as to the contents of the documents in this letter. Briefly, however, the
documents authorize the issuance of a new series of bonds to refund the temporary bonds that were
sold in 1998 to finance the community center. The amendments to the lease-purchase agreement
and ground lease for the most part make changes to some of the dates in the original agreements to
reflect the new series of bonds. The indenture, while a new document and not an amendment of the
existing one, is changed mostly to reflect that a new series of bonds has been issued with changed
maturity dates, a new principal amount, and other differences that are explained quite clearly in the
official statement prepared by Ehlers. The resolutions approve the documents and sale of the
bonds, and otherwise reflect the typical representations set forth in a bond issuance authorization.
If you have any questions, or if you would like a more detailed explanation, please do not hesitate
to let me know.
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Sincerely,
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- aniel 1. Greensweig
DJG/par
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Nancy DeMarais - Ehlers & Associates
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Extract of Minutes of Meeting
of the Housing and Redevelopment Authority In and For the
City of Monticello, Minnesota
Pursuant to due call and notice thereof, a
meeting of the Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota was duly held in the City
Hall in said City on Monday, February 2, 2000, commencing at
o'clock P.M.
The following members were present;
and the following were absent:
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The Chair announced that the next order of business was consideration of the proposals
which had been received for the purcha"e of the Authority's $7,555,000 Public Project Revenue
Bonds, Series 2000A.
Ehlers & Associates, Inc. presented a tabulation of the proposals which had been received in
the manner specified in the Terms of Proposal of the Series 2000A Bonds. The proposals were as
follows:
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After due consideration of the proposals, Member
then introduced
and moved the adoption of the following written resolution:
RESOLUTION NO.
A RESOLUTION A WARDING THE SALE OF $7,555,000
PUBLIC PROJECT REVENUE BONDS, Series 2000A
BE IT RESOLVED By the Housing and Redevelopment Authority In and For the City of
Monticello, Minnesota (the "Authority"), as follows:
Section 1.
Recitals.
1.01. The City of Monticello, Minnesota (the "City") is authorized by Minnesota Statutes,
Section 465.71, as amended, to acquire real and personal property under lease-purchase agreements.
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1.02. The Authority has agreed with the City that pursuant to a Ground Lease dated as of
December I, 1998 (the "Ground Lease"), the Authority will acquire certain property from the City,
and the Authority will lease such property, together with the buildings, structures or improvements
now or hereafter located thereon, to the City pursuant to a Lease-Purchase Agreement dated a<; of
December I, 1998 (the "Lease").
1.03. The Authority issued its $7,385,000 Temporary Public Project Revenue Bonds,
Series 1998 (the "Temporary Bonds") in order to finance the cost of acquisition, construction and
equipping of the Facilities described in the Lease.
1.04. Pursuant to a Trust Indenture dated as of March 1,2000 (the "Indenture"), between
the Authority and , as trustee (the "Trustee"), the
Authority will issue its Public Project Revenue Bonds, Series 2000A (the "Series 2oo0A Bonds") in
an aggregate principal amount of $7,555,000.
1.05. In connection with issuance of the Series 2000A Bonds, the Authority will enter into
an Amendment No. I to the Ground Lease and an Amendment No. I to the Lease, dated as of
March 1,2000.
1.06. Under the Indenture, proceeds of the Series 2000A Bonds will be used to refund the
outstanding principal amount of the Temporary Bonds.
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1.07. Pursuant to an Assignment and Security Agreement dated as of March 1, 2000 (the
"Assignment"), the Authority will assign to the Trustee all of the Authority's right, title and interest
in and to the Ground Lease a<; amended, the Lease as amended and the Lease Payments to be made
by the City thereunder (other than certain rights to indemnification and payment of expenses) as
security for the Series 2oo0A Bonds.
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1.08. Forms of Amendment No.1 to the Ground Lease, Amendment No.1 to the Lease,
the Indenture, the Assignment, the Official Statement for the Series 2000A Bonds, and a Continuing
Disclosure Certificate of the City dated as of March 1, 2000, have been prepared and submitted to
the Authority and are on file with the Authority.
Section 2.
Sale of Series 2000A Bonds.
2.01. The proposal of (the "Purcha"er") to
purchase the Series 2000A Bonds is hereby found and determined to be a reasonable offer and is
hereby accepted, the proposal being to purchase the Series 2000A Bonds at a price of $
plus accrued interest to date of delivery, for Series 2000A Bonds bearing interest as follows;
Year of
Maturity
Interest
Rate
Year of
Maturity
Interest
Rate
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
True interest cost:
%
2.02. The Treasurer is directed to retain the good faith check of the Purchaser, pending
completion of the sale of the Series 2000A Bonds, and to deliver the good faith check to the Trustee
upon the issuance of the Series 2oo0A Bonds. The Authority shall return the good faith checks of
the unsuccessful proposers forthwith.
2.03. The Authority will forthwith issue and sell the Series 2000A Bonds in the total
principal amount of $7,555,000, originally dated March 1,2000, in the denomination of $5,000 each
or any integral multiple thereof, numbered No. R~l, upward, bearing interest as above set forth, and
which mature serially on February I, in the years and amounts a" follows (subject to redemption
and prior payment as set forth in the Indenture):
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. Year Amount Year Amount
2001 $120,000 2009 $505,000
2002 90,000 2010 530,000
2003 40,000 2011 870,000
2004 135,000 2012 920,000
2005 260,000 2013 950,000
2006 260,000 2014 970,000
2007 430,000 2015 995,000
2008 480,000
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2.04. Execution, Authentication and Delivery. The Series 2oo0A Bonds, substantially in
the form provided in the Indenture, will be prepared under the direction of the Authority staff and
executed on behalf of the Authority by the signatures of the Chair and one other officer of the
Authority, provided that all signatures may be printed, engraved or lithographed facsimiles of the
originals. Notwithstanding such execution, a Series 2000A Bond will not be valid or obligatory for
any purpose or entitled to any security or benefit under this Resolution or the Indenture unless and
until a certificate of authentication on the Series 2000A Bond has been duly executed by the manual
signature of an authorized representative of the Trustee. When the Series 2000A Bonds have been
so prepared, executed and authenticated, the Authority will deliver the same to The Depository
Trust Company, New York, New York, on behalf of the Purchaser, upon payment of the purcha"e
price, and the Purchaser is not obligated to see to the application of the purchase price.
Section 3. Approval and Execution of Documents. The Amendment No. I to the
Ground Lease, the Amendment No. I to the Lease, the Indenture, the Assignment, and the
Continuing Disclosure Certificate described in Section 1 are hereby approved. The Chair and one
other officer of the Authority are authorized and directed to execute and deliver the Amendment No.
I to the Ground Lease, the Amendment No. 1 to the Lease, and the Indenture on behalf of the
Authority, substantially in the forms on file, but with all such changes therein as shall be approved
by the officers executing the same, which approval shall be conclusively evidenced by the execution
thereof. Copies of all of the transaction documents shall be delivered, filed and recorded as
provided therein. The Chair and other officers of the Authority are also authorized and directed to
execute such other instruments as may be required to give effect to the transactions herein
contemplated.
Section 4. Payment; Security; Pledges and Covenants. The Series 2000A Bonds are
payable solely from the Lease Payments to be made by the City under the Lease as amended and
from other moneys realized by the Trustee after default or termination of the Lease by the City as
provided therein. No property or funds of the Authority, other than the property pledged pursuant to
the Indenture and assigned to the Trustee pursuant to the Assignment, is pledged to the payment of
the Series 2000A Bonds.
Section 5.
Authentication of Transcript; Use of Proceeds.
· 5.01. Thc officers of Ihe Authorily are authorized and directed to prepare and furnish In
the Purchaser and to the attorneys approving the Series 2000A Bonds, certified copies of
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proceedings and records of the Authority relating to the Series 2000A Bonds and such other
certificates, affidavits and transcripts as may be required to show the facts within their knowledge or
as shown by the books and records in their custody and under their control, relating to the validity
and marketability of the Series 2000A Bonds and such instruments, including any heretofore
furnished, may be deemed representations of the Authority as to the facts stated therein.
5.02. The preparation and distribution of the Official Statement prepared and circulated in
connection with the issuance and sale of the Series 2000A Bonds is hereby approved.
5.03. The proceeds of the Series 2000A Bonds shall be deposited, held, invested and
disbursed as provided in the Indenture.
Section 6.
Tax Covenants.
6.0 I . The Authority Covenants and agrees with the holders from time to time of the Series
2000A Bonds that it will not take or permit to be taken by any of its officers, employees or agents
any action which would cause the interest on the Series 2000A Bonds to become subject to taxation
under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treawry Regulations
promulgated thereunder, in effect at the time of such actions, and that it will take or cause its
officers, employees or agents to take, all affirmative action within its power that may be necessary
to ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Series 2000A Bonds.
6.02. In order to qualify the Series 2000A Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the Authority makes the following factual
statements and representations:
(a) the Series 2000A Bonds are not "private activity bonds" as defined In
Section 141 of the Code;
(b) the Authority hereby designates the Series 2oo0A Bonds a<; "qualified tax~
exempt obligations" for purposes of Section 265(b )(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the
Authority (and all subordinate entities of the City) during calendar year 1998 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the Authority during
calendar year 1998 have been designated for purposes of Section 265(b )(3) of the Code.
6.03. The Authority will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this Section.
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The motion for the adoption of the foregoing resolution was duly seconded by Member
thereof:
, and upon vote being taken thereon, the following voted in favor
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
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COUNTY OF WRIGHT ) SS.
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CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting Secretary of the Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota, do hereby certify that I
have carefully compared the attached and foregoing extract of minutes of a
meeting
of the Authority held on February 2, 2000 with the original minutes on file in my office and the
extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of
$7,555,000 Public Project Revenue Bonds, Series 2000A of the Authority.
WITNESS My hand officially as such Secretary this
day of February, 2000.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA
Secretary
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CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the Housing and Redevelopment Authority in and for the City of Monticello, Wright
County, Minnesota (the "Issuer") in connection with the issuance of $7,555,000 Public Project
Revenue Bonds, Series 2000A (the "Securities"). The Securities are being issued pursuant to an
Award Resolution adopted by the Board of Commissioners of the Issuer on February 2, 2000 (the
"Resolution") and delivered to the Purchaser(s) on the date hereof. Pursuant to the Resolution, the
Issuer has covenanted and agreed to provide continuing disclosure of certain financial information
and operating data and timely notices of the occurrence of certain events. In addition, the Issuer
hereby Covenants and agrees as follows:
Section 1. Pumose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the Holders of the Securities in order to assist
the Participating Underwriters within the meaning of the Rule (defined herein) in complying with
SEC Rule 15c2-12(b )(5). This Disclosure Certificate, together with the Resolutions, constitutes the
written Undertaking required by the Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, prepared in
accordance with generally accepted accounting principles ("GAAP") for Governmental Units as
Prescribed by the Governmental Accounting Standards Board ("GASB").
"Fiscal Year" means the fiscal year of the Issuer.
"Final Official Statement" means the deemed final official statement dated
, 2000 plus the addendum thereto which together constitute the final official
statement delivered in connection with the Securities, which is available from the MSRB.
"Holder" means the person in whose name a security is registered or a beneficial owner of
such a security.
"Issuer" means the Housing and Redevelopment Authority in and for the City of Monticello,
Wright County, Minnesota which is the obligated person with respect to the Securities.
"Material Event" means any of the events listed in Section 5(a) of this Disclosure
Certificate.
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. "MSRB" means the Municipal Securities Rulemaking Board located at ] 150 18th Street,
N.W., Suite 400, Washington, D.e. 20036.
"NRMSIR" means any nationally recognized municipal securities information repository as
recognized from time to time by the SEC for purposes of the Rule.
"Participating Underwriter" means any of the original underwriter(s) of the Securities
(including the Purchaser(s)) required to comply with the Rule in connection with the offering of the
Securities.
"Repository" means each NRMSIR and each SID, if any.
"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities
Exchange Act of 1934, as the same may be amended from time to time, and including written
interpretations thereof by the SEe.
"SEC" means Securities and Exchange Commission.
"SID" means any public or private repository or entity designated by the State of Minnesota
as a state information depository for the purpose of the Rule. As of the date of this Certificate, there
is no SID.
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Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall, as soon as available, but not later than I 2 months after the end of
the Fiscal Year commencing with the year that ends December 31, 2000, provide
each Repository with an Annual Report which is consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a
single document or as separate documents comprising a package, and may cross-
reference other information a<; provided in Section 4 of this Disclosure Certificate;
provided that the Audited Financial Statements of the Issuer may be submitted
separately from the balance of the Annual Report and will be submitted as soon as
available.
(b) If the Issuer is unable or fails to provide to the Repositories an Annual Report by the
date required in subsection (a), the Issuer shall send a notice of that fact to the
NRMSIRs, the MSRB and SID.
(c) The Issuer shall determine each year prior to the date for providing the Annual
Report the name and address of each NRMSIR and the SID, if any.
.
Section 4. Content of Annual Repol1s. The Issuer's Annual Report shall contain or
incorporate by reference the following sections of the Final Official Statement:
I.
Current Property Valuations.
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2.
3.
4.
5.
6.
7.
8.
9.
Larger Taxpayers.
Direct Debt.
Overlapping Debt.
Debt Ratios.
Tax Levies & Collections.
Net Tax Capacity Rates.
Population Trend.
EmploymentJUnemployment.
In addition to the items listed above, the Annual Report shall include Audited Financial
Statements submitted in accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been
submitted to each of the Repositories or the SEe. If the document incorporated by reference is a
final official statement, it must also be available from the MSRB. The Issuer shall clearly identify
each such other document so incorporated by reference.
Section 5. Reporting of Material Events.
(a) This Section 5 shall govern the giving of notices of the occurrence of any of the
following events if material with respect to the Securities:
I.
Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
security;
7. Modifications to rights of security holders;
8. Bond calls;
9. Defeasances;
10. Release, substitution or sale of property securing repayment of the securities;
and
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11.
Rating changes.
(b) Whenever the Issuer obtains knowledge of the OCcurrence of a Material Event, the
Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or
with the MSRB and with any SID. Notwithstanding the foregoing, notice of
Material Events described in subsections (a)(8) and (9) need not be given under this
subsection any earlier than the notice (if any) of the underlying event is given to
Holders of affected Securities pursuant to the Resolutions.
(c) Unless otherwise required by law and subject to technical and economic feasibility,
the Issuer shall employ such methods of information transmission as shall be
requested or recommended by the designated recipients of the Issuer's information.
Section 6. Termination of Reportinl! Obligation. The Issuer's obligations under the
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, prior
redemption or payment in full of all the Securities.
Section 7. Agent. The Issuer may, from time to time, appoint or engage a dissemination
agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate,
and may discharge any such agent, with or without appointing a successor dissemination agent.
Section 8. Amendment: Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of
this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion
of nationally recognized bond counsel to the effect that such amendment or waiver would not, in
and of itself, cause the undertakings to violate the Rule. The provisions of the Resolutions
constituting the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null
and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an
opinion of nationally recognized bond counsel to the effect that those portions of the Rule which
require the Resolutions and this Certificate are invalid, have been repealed retroactively or
otherwise do not apply to the Securities. The provisions of the Resolutions constituting the
Undertaking and this Disclosure Certificate may be amended without the consent of the Holders of
the Securities, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID,
if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the
effect that such amendment, and giving effect thereto, will not adversely affect the compliance of
the Resolutions and this Disclosure Certificate and by the Issuer with the Rule.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed
to prevent the Issuer from disseminating any other information, using the means of dissemination
set forth in this Disclosure Certificate or any other means of communication, or including any other
information in any Annual Report or notice of occurrence of a Material Event, in addition to that
which is required by this Disclosure Certificate. If the Issuer chooses to include any information in
any Annual Report or notice of occurrence of a Material Event in addition to that which is
specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this
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Certificate to update such information or include it in any future Annual Report or notice of
occurrence of a Material Event.
Section 10. Default. fu the event of a failure of the Issuer to comply with any provision of
this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary
and appropriate, including seeking mandate or specific performance by court order, to cause the
Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A
default under this Disclosure Certificate shall not be deemed an event of default with respect to the
Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the
Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall
create no rights in any other person or entity.
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IN WITNESS WHEREOF, we have executed this Certificate in Our official capacities
effective the day of , 2000.
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(SEAL)
MONTICELLO HOUSING AND
REDEVELOPMENT AUTHORITY
Chair
Executive Director
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AMENDMENT NO.1
TO LEASE~PURCHASE AGREEMENT
between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
and
CITY OF MONTICELLO, MINNESOTA
Dated as of March 1,2000
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AMENDMENT NO.1
TO LEASE-PURCHASE AGREEMENT
THIS AMENDMENT NO.1 TO LEASE-PURCHASE AGREEMENT, dated as of
March 1, 2000, is made and entered into between the CITY OF MONTICELLO, a statutory city
and political subdivision of the State of Minnesota (the "City") and the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA, a public body corporate and politic (the "Authority").
RECITALS
WHEREAS, pursuant to a Lease-Purchase Agreement dated as of December 1, 1998
between the City and the Authority the Authority leased to the City certain property and facilities
located within the City (the "Site") in connection with a project (the "Project") undertaken and
financed by the issuance of the Authority's $7,385,000 Temporary Public Project Revenue
Bonds, Series 1998 (the "Series 1998 Bonds"); and
WHEREAS, the City and the Authority have determined that it is in their mutual best
interests to refund the Series 1998 Bonds by the issuance of the Authority's $7,555,000 Public
Project Revenue Bonds, Series 2000A (the "Series 2000A Bonds"); and
WHEREAS, this Amendment No. 1 to Lease-purchase agreement is necessary and is
authorized to be executed and delivered by the City and the Authority in order to effectuate the
issuance of the Series 2000A Bonds;
NOW, THEREFORE, the City and the Authority agree that the Lease-purchase
agreement shall be and hereby is supplemented and amended, and further covenant and agree as
follows:
Section 1. Amendments to Section 1.1 of the Lease-Purchase Agreement.
a. The definition of "Assignment" is amended to read as follows:
"Assignment" means the Assignment and Security Agreement dated as of
March 1, 2000, from the Authority to the Trustee pursuant to which the Authority
assigns to the Trustee its entire right, title and interest to the Ground Lease and this
Lease and the right to receive Lease Payments hereunder, as amended or
supplemented from time to time.
b. The definition of "Bonds" is amended to read a<; follows:
"Bonds" means the Series 2000A Bonds and any Additional Bonds issued
pursuant to the Indenture.
c. The definition of "Ground Lease" is amended to read as follows:
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"Ground Lease" means the Ground Lease, dated as of December 1, 1998 and
amended as of March 1, 2000, by which the City leases the Site to the Authority, as
amended or supplemented from time to time.
d. The definition of "Indenture" is amended to read as follows:
"Indenture" means the Trust Indenture dated as of December 1, 1998, by and
between the Authority and the Trustee, as superceded by the Trust Indenture dated
as of March 1, 2000, and any amendments or supplements thereto.
e. The definition of "Interest Payment Date" is amended to read as follows:
"Interest Payment Date" means August 1, 2000 and each February 1 and
August I thereafter until the Bonds are paid in full.
f. The definition of "Interest Payment Date" is amended to read as follows:
"Interest Payment Date" means August 1, 2000 and each February 1 and
August 1 thereafter until the Bonds are paid in full.
g. A definition is added to read as follows:
"Series 2000A Bonds" means the $7,555,000 Housing and Redevelopment
Authority in and for the City of Monticello, Minnesota Public Project Revenue
Bonds, Series 2000A, originally issued pursuant to the Indenture.
h. The definition of "Trustee" is amended to read as follows:
"Trustee" means _ and its successors and assigns as Trustee under the
Indenture.
Section 2. Amendments to Section 2.1 of the Lease-Purchase Agreement.
a. Section 2.1 (j) is amended to read as follows:
(j) The original principal amount of this Lease ($7,555,000), when
added to the outstanding net debt of the City, does not exceed the limit on net debt
applicable to the City under Minnesota Statutes, Section 475.53.
b. Section 2.1 (k) is deleted in its entirety.
Section 3. Amendments to Article III of the Lease-Purchase Agreement.
a.
Section 3.2(a) is amended to read as follows:
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(a) The Authority established the Project Fund with the Trustee in
accordance with the Indenture. A portion of the proceeds of the issuance and sale of
the Series 1998 Bonds shall be deposited into the Project Fund, in accordance with
the provisions of the Indenture. On or before the Closing Date, the City shall deposit
in the Project Fund, from sources other than the proceeds of the Series 1998 Bonds,
an amount sufficient to pay the Costs of Issuance of the Series 1998 Bonds listed in
Exhibit D.
b. Article III is amended by adding a new Section 3.4 to read as follows:
Section 3.4. Refunding Fund. The Authority shall establish the
Refunding Fund with the Trustee in accordance with the Indenture. The proceeds
of the Series 2000A Bonds shall be deposited in the Refunding Fund and shall be
used, in accordance with the Indenture, to refund the Series 1998 Bonds.
Section 4. Amendments to Section 5.1 of the Lease-Purchase Agreement. Section 5.1 is
amended to read as follows:
Section 5.1. Lease Term. Subject to the provisions of Section 5.6, this
Lease shall be in effect for a Term commencing upon the execution hereof and
ending on February 1,2015.
Section 5. Amendments to Section 11.1 of the Lease-Purchase Agreement. Section 11.1
is amended to read as follows:
Section 11.1. Notices. All notices, certificates or other communications
hereunder shall be sufficiently given and shall be deemed given when delivered or
deposited in the United States mail in certified or registered form with postage fully
prepaid:
If to the City:
City of Monticello
505 Walnut Street
Monticello, Minnesota 55362
Attention: City Administrator
If to the Authority:
Housing and Redevelopment Authority
in and for the City of Monticello, Minnesota
505 Walnut Street
Monticello, Minnesota 55362
Attention: Executive Director
If to the Trustee:
Attention:
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The above-named persons, by notice given hereunder, may designate different
addresses to which subsequent notices, certificates or other communications will be
sent.
Section 6. Amendments to Exhibit B of the Lease-Purchase Agreement. Exhibit B is
deleted in its entirety and replaced with the following:
Section 7. Miscellaneous. Except as expressly amended hereby, the Lease-Purchase
Agreement shall remain in full force and effect. This Amendment No. 1 to Lease-Purchase
Agreement may be executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument. If any provision of this Amendment No.
1 to Lease-Purchase Agreement shall be held or deemed to be or shall, in fact, be illegal,
inoperative or unenforceable, the same shall not affect any other provision or provisions herein
contained or render the same invalid, inoperative or unenforceable to any extent whatsoever.
This Amendment No. I to Lease-Purchase Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.
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IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be
executed in their respective names, and on the behalf of each, all as of the date first above
written.
CITY OF MONTICELLO, MINNESOTA
By
Its Mayor
By
Its City Administrator
ST ATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
On this day of , 2000, before me, a Notary Public within and for
said County, personally appeared and , to me
personally known, who being by me duly sworn, did say that they are the Mayor and City
Administrator of the CITY OF MONTICELLO, a statutory city and political subdivision of the
State of Minnesota, the subdivision referred to in the foregoing instrument; that the seal aftlxed to
said instrument is the corporate seal of said political subdivision; that said instrument was signed
and st;aled in behalf of said political subdivision by authority of its City Council; and said Mayor
and City Administrator acknowledged said instrument to be the free act and deed of said political
subdivision.
Notary Public
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STATE OF MINNESOTA)
) ss.
COUNTY OF WRIGHT )
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA
By
Its Chair
By
Its Executive Director
On this _ day of , 2000, before me, a Notary Public within and for said
County, personally appeared and , to me personally
known, who, being each by me duly sworn, did say that they are the Chair and Executive Director,
respectively, of the Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota, the Authority referred to in the foregoing instrument; that said instrument was signed
and sealed in behalf of said authority by authority of its Board of Commissioners; and they
acknowledged said instrument to be the free act and deed of said Authority.
Notary Public
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AMENDMENT NO.1
TO GROUND LEASE
between
CITY OF MONTICELLO, MINNESOTA
and
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Dated as of March 1, 2000
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AMENDMENT NO.1
TO GROUND LEASE
THIS AMENDMENT NO. 1 TO GROUND LEASE, dated as of March 1, 2000, is made
and entered into between the CITY OF MONTICELLO, a statutory city and political subdivision
of the State of Minnesota (the "City") and the HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body
corporate and politic (the "Authority").
RECITALS
WHEREAS, pursuant to a Ground Lease dated as of December I, 1998 between the City
and the Authority the City leased to the Authority certain property located within the City (the
"Site") in connection with a project (the "Project") undertaken and financed by the issuance of
the Authority's $7,385,000 Temporary Public Project Revenue Bonds, Series 1998 (the "Series
1998 Bonds"); and
WHEREAS, the City and the Authority have determined that it is in their mutual best
interests to refund the Series 1998 Bonds by the issuance of the Authority's $7,555,000 Public
Project Revenue Bonds, Series 2000A (the "Series 2000A Bonds"); and
WHEREAS, this Amendment No. I to Ground Lease is necessary and is authorized to be
executed and delivered by the City and the Authority in order to effectuate the issuance of the
Series 2000A Bonds;
NOW, THEREFORE, the City and the Authority agree that the Ground Lease shall be
and hereby is supplemented and amended, and further covenant and agree as follows:
Section I. Amendments to Section 1.02 of the Loan Agreement. Section 1.02(2) of the
Ground Lease is amended to read as follows:
That the Site is not subject to any dedication, ea<>ement, right-of-way,
reservation in patent, covenant, condition, restriction, lien or encumbrance which
would prohibit or materially interfere with the construction of certain facilities
(hereinafter called the "Facilities") on the Site, as contemplated by that certain
Lease-Purchase Agreement by and between the City and the Authority dated as of
December I, 1998 and amended as of March 1, 2000 (hereinafter called the
"Lease");
Section 2. Miscellaneous. Except as expressly amended hereby, the Ground Lease shall
remain in full force and effect. This Amendment No. I to Ground Lease may be executed in
several counterparts, each of which shall be an original and all of which shall constitute but one
and the same instrument. If any provision of this Amendment No. 1 to Ground Lease shall be
held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not
affect any other provision or provisions herein contained or render the same invalid, inoperative
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or unenforceable to any extent whatsoever. This Amendment No.1 to Ground Lease shall be
governed by and construed in accordance with the laws of the State of Minnesota.
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IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be
executed in their respective names, and on the behalf of each, all as of the date first above
written.
CITY OF MONTICELLO, MINNESOTA
By
Its Mayor
By
Its City Administrator
ST ATE OF MINNESOTA)
) ss.
COUNTY OF WRIGHT )
On this day of , 2000, before me, a Notary Public within and for
said County, personally appeared and , to me
personally known, who being by me duly sworn, did say that they are the Mayor and City
Administrator of the CITY OF MONTICELLO, a statutory city and political subdivision of the
State of Minnesota, the subdivision referred to in the foregoing instrument; that the seal affixed to
said instrument is the corporate seal of said political subdivision; that said instrument was signed
and sealed in behalf of said political subdivision by authority of its City Council; and said Mayor
and City Administrator acknowledged said instrument to be the free act and deed of said political
subdivision.
Notary Public
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STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA
By
Its Chair
By
Its Executive Director
On this ~ day of , 2000, before me, a Notary Public within and for said
County, personally appeared and , to me personally
known, who, being each by me duly sworn, did say that they are the Chair and Executive Director,
respectively, of the Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota, the Authority referred to in the foregoing instrument; that said instrument was signed
and sealed in behalf of said authority by authority of its Board of Commissioners; and they
acknowledged said instrument to be the free act and deed of said Authority.
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Notary Public
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ASSIGNMENT AND SECURITY AGREEMENT
THIS ASSIGNMENT AND SECURITY AGREEMENT, made and entered into as of the
1st day of March, 2000, by and between the HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic
and political subdivision of the State of Minnesota (the "Authority"), and _, a _ (the
"Trustee"), as Trustee under a Trust Indenture of even date herewith (the "Indenture") between the
Authority and the Trustee,
WITNESSETH THAT, in consideration of the mutual covenants herein contained, the
parties hereto recite and agree as follows:
Section 1. Recitals.
1.01. Pursuant to a Ground Lease dated as of December I, 1998 and recorded in the office
of the County Recorder of Wright County, Minnesota, as Document No. as
amended by an Amendment No. I to Ground Lease dated as of March I, 2000 and recorded in the
office of the County Recorder of Wright County, Minnesota, as Document No.
(collectively, the Ground Lease and the Amendment No. I to Ground Lease are referred to herein as
the "Ground Lease"), the Authority has acquired a leasehold interest in the land legally described in
Exhibit A attached hereto (the "Site") from the City of Monticello, a statutory city and political
subdivision of the State of Minnesota (the "City"). The Authority and the City have entered into a
Lease-Purchase Agreement dated as of December I, 1998 and recorded in the office of the County
Recorder of Wright County, Minnesota, as Document No. as amended by an
Amendment No. I to Lease-Purchase Agreement dated as of March 1, 2000 and recorded in the
office of the County Recorder of Wright County, Minnesota, as Document No.
(collectively, the Lease-Purchase Agreement and the Amendment No. 1 to Lease-Purchase
Agreement are referred to herein as the "Lease") relating to the Site and certain improvements to be
constructed thereon (the "Facilities").
1.02. Among other things, the Lease provides for the lease of the Site and the Facilities by
the Authority to the City and for the payment of periodic payments comprising principal and interest
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and certain other payments to the Authority by the City with respect to the Site and the Facilities
(the "Lease Payments").
1.03. Pursuant to the Indenture, the Authority will issue, and the Trustee will authenticate
and deliver $7,555,000 aggregate principal amount of Public Project Revenue Bonds, Series 2000A
(the "Series 2000A Bonds"), payable from the Lease Payments to be paid by the City under the
Lease.
1.04. The Authority intends hereby to sell and assign to the Trustee pursuant to the
Indenture all of its right, title and interest in and to the Ground Lease and the Lease, including its
right to receive Lease Payments due under the Lease, and the right to enforce all of the foregoing,
for the benefit of the registered owners of the Series 2000A Bonds and any Additional Bonds issued
pursuant to the Indenture (together, the "Bonds"), and the Trustee is willing to accept such
assignment, on the terms and conditions specified in this Assignment and for the purposes specified
in the Indenture.
1.05. Each of the parties has authority to enter into this Assignment, and has taken all
actions necessary to authorize its execution by the officers signing it.
.
1.06. All capitalized terms used in this Assignment but not defined herein shall have the
meanings given to them in the Ground Lease, the Lease and the Indenture. "Financing Documents"
means: (a) the Ground Lease, the Lease, and all documents, certificates and legal opinions in the
Authority's possession relating to the Ground Lease and the Lease; (b) a financing statement
relating to this Assignment, naming the Authority as debtor and the Trustee as secured party; and (c)
duly authorized and executed documents, in form satisfactory to the Trustee, transferring and
conveying to the Trustee all of the Authority's right, title and interest in and to the Ground Lease
and the Lease.
Section 2.
Assignment and Warranties.
2.01. Subject to the provisions of Section 1.05, for one dollar ($1.00) and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority
hereby sells, assigns and conveys to the Trustee on behalf of the registered owners of the Bonds, for
the purposes and subject to the terms of the Indenture, without recourse, all of its right, title and
interest in and to the Financing Documents, including the Ground Lease, the Lease, and its right to
receive the Lease Payments due thereunder, all other Financing Documents, and the right to enforce
any and all of the foregoing. Accordingly, upon execution of this Assignment, the Authority shall
deliver to the Trustee the Financing Documents.
2.02. From and after the date of this Assignment, the Authority shalI have no further rights
or interest in the Financing Documents or in any Lease Payments or other moneys to become due
thereunder, other than the Authority's rights to indemnification and payment of expenses pursuant
to Sections 4.3, 7.5 and 7.6 of the Lease.
.
2.03. The Authority agrees to execute and deliver to the Trustee, upon request by the
Trustee, any documents reasonably deemed necessary by the Trustee to further evidence or perfect
DJG-175194vl
MNI9(HIJ
2
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. the sale and assignment herein made.
2.04. Subject to the provisions of the Indenture, the Authority hereby irrevocably
constitutes and appoints the Trustee or any present or future officer or agent of the Trustee or its
Successors or assigns as its lawful attorney, with full power of substitution and resubstitution, and in
the name of the Authority or otherwise to collect and to sue on behalf of the Authority in any court
for the enforcement of all contracts described in Section 1 and the payment of all amounts due
thereunder, or any part thereof, to withdraw or settle any claims, suits or proceedings pertaining to
or arising out of the Financing Documents, this Assignment or the Indenture, upon any terms, all
without the assent of the Authority; and, further, to take possession of and to endorse in the name of
the Authority any instrument for the payment of moneys received on account of the Lease Payments
or other amounts due under the Lease.
Section 3.
Administrative Provisions.
3.01. This Assignment shall be construed and governed in accordance with the laws of the
State of Minnesota.
3.02. Any provision of this Assignment found to be prohibited by law shall be ineffective
only to the extent of such prohibition, and shall not invalidate the remainder of this Assignment.
3.03. This Assignment shall be binding upon and inure to the benefit of the parties and their
. respective successors and assigns and the registered owners of the Bonds.
3.04. This Assignment may be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same agreement.
[Remainder of Page Intentionally Blank]
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DJG-175194vl
MNI90-ID
3
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IN WITNESS WHEREOF, the parties have executed this Assignment as of the day and year
first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA
By
Its Chair
By
Its Executive Director
STATE OF MINNESOTA)
) ss.
COUNTY OF WRIGHT )
On this _ day of , 2000, before me, a Notary Public within and for said
County, personally appeared and , to me personally
known, who, being each by me duly sworn, did say that they are the Chair and Executive Director,
respectively, of the Housing and Redevelopment Authority In and For the City of Monticello,
Minnesota, the Authority referred to in the foregoing instrument; that said instrument was signed
and sealed in behalf of said authority by authority of its Board of Commissioners; and they
acknowledged said instrument to be the free act and deed of said Authority.
Notary Public
DJG-175194vl
MNI90-H-,
S-l
.
.
.
This Assignment and Security Agreement, dated as of March 1, 2000, is accepted by the
Trustee.
STATE OF MINNESOTA )
)SS.
COUNTY OF )
as Trustee
By
Its
The foregoing instrument was acknowledged before me this _day of , 2000, by
, the of ~, a ~, on behalf of
the_
DJG--17'i 194v I
MNI90-BJ
.1
Notary Public
$-2
.
.
.
.
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EXHIBIT A
The Site herein referred to is situated in the County of Wright, State of Minnesota and is described
as follows:
DJG-175194vl
MNI')().XJ
A-I
-,
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.
BRA Agenda - 2/2/00
7.
Continued - Consideration to adopt a resolution modifvin~ the bud~ets of BRA- TIF
Districts and modifyine: the Redevelopment Plan of Central Monticello
Redevelopment Proiect No.1.
A. Reference and Background:
With the recent inquiries by the Office of the State Auditors relative to the reporting of
tax increment, Mark Ruff requested more time to prepare for this agenda item and asked
the HRA to table this item until the February meeting. The BRA tabled any action and
authorized Ehlers to proceed with further research at a cost of not- to-exceed $2,000.
On January 27, Mark, Steve Bubul and Koropchak met to discuss how to proceed to
modifY the budget line-items and the previous modification of the overall older districts re-
affirming the good faith intent of the BRA to allow pooling among the districts.
Kennedy & Graven will prepare the resolution for adoption and Mark Ruff will further
advise the BRA at the meeting.
B. Alternative Action:
1.
A motion to adopt the resolution as submitted at the meeting.
2. A motion to deny adoption of the resolution.
3. A motion to table any action.
C. Recommendation:
The recommendation is alternative no. 1. This being another good faith intent by the
lIRA to ensure proper documentation for authorization to spend, transfer, and pool tax
increment dollars.
D. Supoorting Data:
Copy of resolution.
1
.
.
.
BRA Agenda - 2/2/00
8.
Continued ~ Consideration to authorize transfer of surplus tax increment from TIF
District Nos. 1~8. l~ll. and 1~16 to TIF District No. 1~7.
A. Reference and Background:
This item was tabled at the BRA meeting of January 5 to February 2, 2000.
This agenda item request the BRA to authorize transfer of surplus tax increment from
three TIF districts to TIF District No. 1-7 which has a deficit. TIF District No. 1-8
(NSP) decertified in 1998 has a surplus balance of approximately $19,000. TIP District
No.1-II (Martie's), decertification in 1999, has an estimated surplus balance of
approximately $5,400. TIP District No. 1-16 (polycast), early decertification in 1999, has
an estimated surplus balance of approximately $19,000.
The sum of the surplus is approximately $43,000 for transfer to District No. 1-7
(NAWCO). After transfer and 1999 expenditures in District 1-7, there remains a deficit
of approximately $65,000 and a remaining unpaid pay~as-you-go balance of $70,000. The
remaining deficiency in District No. 1-7 will be considered at the HRA annual meeting in
April after review of TIP year-end reports. Again, the deficit of District No. 1-7 was a
conscious decision of goodwill by BRA commissioners in 1993 to smooth a stained
relationship relative to a non-awarded state grant to a competitive foreign company.
It is suggested to authorize the transfer of surplus funds prior to approval to decertify a
TIP District which is the next agenda item.
B. Alternative Action:
1. A motion to authorize transfer of surplus tax increment from TIP District Nos. 1-
8, 1-11, and 1~16 to TIF District No. 1-7.
2. A motion to deny authorization to transfer surplus tax increment.
3. A motion of other action.
C. Recommendation:
Recommendation is Alternative No.1. This is a housekeeping item for purpose of
reporting and meeting Statutory requirements.
D. SuplJorting Data:
None.
1
.
.
.
lIRA Agenda - 2/2/00
9.
Continued - Consideration to adopt resolutions for decertification of TIF District
No. 1-9. No. 1-10. No. 1-11. and No. 1-16.
A. Reference and Background:
This item was tabled at the lIRA meeting of January 5 to February 2, 2000.
The lIRA is requested to adopt the attached resolutions for decertification of four TIF
Districts. TIF District No. 1-9 (Tapper's), 1-10 (Remmele), and 1-11 (Martie's) are
required by Law to decertify on December 31, 1999. TIF District No. 1-16 (polycast) is
an early request for decertification as the Interfund Loan of $80,000 was retired with the
1999 tax increment. This district is required by Law for decertification December 31,
2004. Decertifying this district early will prevent the City from paying the HACA Penalty
which is equal to approximately 30% of the tax increment and also allows for the tax
increment to be distributed to all taxing jurisdictions.
Preliminary estimates indicate TIF District Nos. 1-9 and 1-10 upon decertification will
have a deficit. District No. 1-9 has a Tax Increment Guarantee which is addressed under
agenda item no. 11 and transfer of surplus tax increment into District No. 1-10 will be
addressed at the lIRA annual meeting in April after review ofTIF year-end reports.
All surplus tax increment must be recorded and accounted for until expended. The
adopted resolutions will be forward to the County Auditor's Office noting no collection of
tax increment for these districts for payable 2000.
B. Alternative Action:
1. A motion to adopt resolutions for decertification ofTIF District No. 1-9, No. l-
ID, No.1-II, and No. 1-16.
2. A motion to adopt resolutions for decertification ofTIF District No. 1-9, No. 1-
10, and NO.1-II only.
3. A motion of other action.
C. Recommendation:
Recommendation is Alternative NO.1. for reasons stated above.
D. SUDoorting Data:
Copy of resolutions for adoption.
1
.
.
.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
STATE OF MINNESOTA
Resolution No.
BEING A RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 1-9 OF THE CITY OF MONTICELLO.
WHEREAS, on February 26, 1990, the Housing and Redevelopment Authority (the
"Authority") in and for the City of Monticello (the "City") created Tax Increment Finance
District No. 1-9 (the "District") within the Central Monticello Redevelopment Project No. I (the
"Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the
District have been pledged have been paid in full or defeased and all other costs of the Project
have been paid; and
WHEREAS, the Authority by this resolution to cause the decertification of the District after
which all property taxes generated by property within the District will be distributed in the same
manner as all other property taxes.
NOW THEREFORE, BE IS RESOLVED by the Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota, that staff shall take such
action as is necessary to cause the County Auditor of Wright County to decertify the District as a
tax increment district and to no longer remit tax increment payable 2000 from the District to the
City.
DATED: February 2, 2000
(Seal)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Chair
ATTEST:
Executive Director
.,
.
.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
STATE OF MINNESOTA
Resolution No.
BEING A RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 1-10 OF THE CITY OF MONTICELLO.
WHEREAS, on April 9, 1990, the Housing and Redevelopment Authority (the "Authority")
in and for the City of Monticello (the "City") created Tax Increment Finance District No. 1-10
(the "District") within the Central Monticello Redevelopment Project No.1 (the "Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the
District have been pledged have been paid in full or defeased and all other costs of the Project
have been paid; and
WHEREAS, the Authority by this resolution to cause the decertification of the District after
which all property taxes generated by property within the District will be distributed in the same
manner as all other property taxes.
NOW THEREFORE, BE IS RESOLVED by the Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota, that staff shall take such
action as is necessary to cause the County Auditor of Wright County to decertify the District as a
tax increment district and to no longer remit tax increment payable 2000 from the District to the
City.
DATED: February 2, 2000
(Seal)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Chair
ATTEST:
. Executive Director
.,
.
.
.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
STATE OF MINNESOTA
Resolution No.
BEING A RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 1-11 OF THE CITY OF MONTICELLO.
WHEREAS. on February 12, 1990, the Housing and Redevelopment Authority (the
"Authority") in and for the City of Monticello (the "City") created Tax Increment Finance
District No.1-II (the "District") within the Central Monticello Redevelopment Project No.1
(the "Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the
District have been pledged have been paid in full or defeased and all other costs of the Project
have been paid; and
WHEREAS, the Authority by this resolution to cause the decertification of the District after
which all property taxes generated by property within the District will be distributed in the same
manner as all other property taxes.
NOW THEREFORE, BE IS RESOLVED by the Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota, that staff shall take such
action as is necessary to cause the County Auditor of Wright County to decertify the District as a
tax increment district and to no longer remit tax increment payable 2000 from the District to the
City.
DATED: February 2, 2000
(Seal)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Chair
ATTEST:
Executive Director
.,
.
.
.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
STATE OF MINNESOTA
Resolution No.
BEING A RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 1-16 OF THE CITY OF MONTICELLO.
WHEREAS, on March 14, 1994, the Housing and Redevelopment Authority (the
"Authority") in and for the City of Monticello (the "City") created Tax Increment Finance
District No. 1-16 (the "District") within the Central Monticello Redevelopment Project No. I
(the "Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the
District have been pledged have been paid in full or defeased and all other costs of the Project
have been paid; and
WHEREAS, the Authority by this resolution to cause the decertification of the District after
which all property taxes generated by property within the District will be distributed in the same
manner as all other property taxes.
NOW THEREFORE, BE IS RESOL VED by the Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota, that staff shall take such
action as is necessary to cause the County Auditor of Wright County to decertify the District as a
tax increment district and to no longer remit tax increment payable 2000 from the District to the
City.
DATED: February 2, 2000
(Seal)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Chair
ATTEST:
Executive Director
.,
.
.
.
lIRA Agenda - 2/2/00
10.
Consideration to authorize emDlovine an attorney to declare default of the Contract
for Private Redevelopment between T. J. Martin. Inc. and the BRA.
A. Reference and Background:
Checking with the Treasurer's Office of Wright County on January 28,2000; the property
taxes for the second half of 1999 remain unpaid. As ofJanuary 28, the amount of the
delinquent taxes is $5,288 and the amount of the interest and penalty is $790.55. In a
telephone conversation with Eric Bondhus on January 28, their intent is to either pay the
taxes and penalty or he or Carl appear at the lIRA meeting. However, please notice there
is also a tax increment deficiency issue.
The attached letter was mailed on the 121h of January to T. 1. Martin, Inc. notifying the
developer of the unpaid taxes for the second half of 1999 and tax increment deficiency for
the first and second of 1999. You will notice, the lender was mailed a copy of the letter.
It is my understanding in conversation with the lender "There is a problem."
The developer received up-front TIF assistance in the amount of $29,098 for land write-
down and $8,802 for site improvements in 1997. The Authority to recover the $37,900
at 8.25% commencing August 1999 through February 2006.
Steve Bubul, lIRA Attorney, makes these points:
a) The letters are fine and it's good for the lIRA to give a strong message.
b) If the lIRA authorizes employing an attorney, they must carry through.
c) Cancellation Court maximum amount $7,500.
As you recall, the developer was mailed a letter relative to the first half of 1999 unpaid
taxes. The developer did pay the first halftaxes plus interest and penalty in October.
B. Alternative Action:
1. A motion to authorize employing the lIRA Attorney to file a claim relative to
default of the Contract for Private Redevelopment between T. 1. Martin, Inc. and
the lIRA.
2. A motion to deny authorizing the employment of the lIRA Attorney subject to
other arrangements between the lIRA and T. J. Martin, Inc.
3. A motion of no interest to employ the lIRA Attorney relative to default of the
contract.
4.
A motion to table any action.
1
.
HRA Agenda - 2/2/00
5.
No action necessary, taxes paid in-full.
c.
Recommendation:
Based on the relatively small amount, yet larger than cancellation court, past payment
history, and given job creation reporting is forth coming in March; perhaps a wait and see
approach is best.
D. SupDorting Data:
January 12,2000 letter.
.
.
2
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.
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HRA Agenda - 2/2/00
11.
Consideration to review Tax Increment Guarantee Deficiencv relative to the
Amended and Restated Amendment to Contract for Private Redevelopment
between the BRA and William R. and Barbara R. Tapper.
A. Reference and Background:
The HRA is asked to review the Tax Increment Guarantee Deficiency. I will be meeting
with Mr. Tapper upon his request for further information relating to the attached letter of
January 13,2000 noting the cumulative tax increment guarantee deficiency of $27,898.74
as of the maturity date. As noted in the letter, I advised the developer to the date of the
HRA meeting. After meeting with Mr. Tapper, perhaps the developer will request a
waiver, reduction, deferral, or payment plan for the amount of the Tax Increment
Guarantee Deficiency. Ifno request is made by the developer, this is than an
informational item only.
EXPLANATION TO WHY THE TAX INCREMENT GUARANTEE DEFICIENCY
TIP District No. 1-9 was approved on February 26, 1990 with a life duration of 10 years.
Tax increment to be collected 10 years for the date of approval or 8 years from the first
receipt of tax increment whichever is first. The first year the HRA received tax increment
was 1992. As you know, tax increment is projected based on the assessed value and
square footage of a proposed facility and the tax rate and classification rates of that year.
For purpose of tax increment, the tax rate is frozen at the time the district is established or
approved. The tax rate for this district was frozen at 81.843%. The 1999 tax rate was
131.670%.
Secondly, the 1990 classification rates for commercial/industrial property were 3% for less
than $100,000 of market value and 4.6% for greater than $100,000. For taxes payable
1998 and 1999, the State reduced the classification rates thereby reducing the property
taxes for commercial/industrial businesses. For 1998, the classification rates were reduced
to 2.7% for less than $150,000 of market value and 4% for greater than $150,000. For
1999, the classification rates were further reduced to 2.45% for less than $150,000 and
3.5% for greater than $150,000. A small reduction will occur for taxes payable 2000.
Please refer to the attached chart which illustrates the changes in the tax and classification
rates and the difference between taxes and tax increment.
Main reason for deficiency: Reduction in classification rates.
CONTRACT
The Contract dated July 13, 1990, provided the developer with up-front TIF assistance in
the amount of $74,000 for land write-down and $15,000 for site improvements based on
.
HRA Agenda - 2/2/00
the proposed 25,000 sq ft office/manufacturing facility. The Amended and Restated
Amendment to Contract of November 1, 1995, provided the developer with additional
up-front TIF assistance in the amount $25,000 for site improvements associated with the
18,000 sq ft manufacturing expansion. As the up-front financing method is a greater risk
to the HRA, the Contract included an annual tax increment guarantee of $26,000 and an
Assessment Agreement with an estimated market value of $750,000. The Amended and
Restated Amendment to Contract increased the annual tax increment guarantee to
$43,000 and the Assessment Agreement to $1,225,000 commencing payable 1998.
TAX INCREMENT GUARANTEE SECTION OF CONTRACT
Again, please refer to the letter dated January 13,2000. The letter refers to this section of
the Contract and the decision ofthe HRA on September 6, 1995. Since 1996, the
developer has received a letter annually noting the amount of tax increment collected each
year beginning payable 1992 and the cumulative amount of the deficiency.
DEFICIENCY IN TAX INCREMENT DISTRICT 1-9
.
The estimated balance ofTIF District No. 1-9 is approximately $17,000 for year-end
1999. With the last bond payment of $20,000 plus interest due February, 2000, the
district will have a deficit. Collection of the tax increment guarantee deficiency would
serve to reduce the proposed district deficit.
PRECEDENCE
District No. 1-8 decertified in 1998 and had a tax increment guarantee deficiency which
was paid in-full by the developer (NSP) on January 15, 1999. The deficiency amount was
$10,480.09. This district did not have a debt retirement deficiency.
It appears TIF District No. 1-12 (Aroplax) to be decertified in 2000 will also have a debt
retirement deficiency. The Contract includes a tax increment guarantee and Assessment
Agreement. The cumulative amount of deficiency in tax increment through calendar year
1999 is $12,426.80.
REQUESTED ACTION
The developer may request the HRA consider one of the following actions:
B. Alternative Action:
1. A motion to waive the cumulative Tax Increment Guarantee Deficiency.
.
2
.
HRA Agenda - 2/2/00
2.
A motion to reduce the amount ofthe cumulative Tax Increment Guarantee
Deficiency.
3.
A motion to defer payment of the cumulative Tax Increment Guarantee
Deficiency.
4.
A motion to authorize negotiation of a payment schedule for the cumulative
amount of the deficiency.
5.
A motion to restate the previous Authority action: The cumulative amount of the
deficiency due and payable in 30 days after receipt of notice.
6.
A motion of other action.
7.
No action requested, informational item only.
C.
Recommendation:
.
If the developer requests an alternative to the payment in full, the recommendation of the
HRA Treasurer and Executive Director is Alternative NO.4. This allows the HRA to be
consistent with the Contract to collect the deficiency and retire its debt while preventing a
large cash layout from the developer. Appears to be a win/win situation.
D. Supporting Data:
Letter of January 13,2000, and Chart.
.
3
January 12, 2000
MONTICELLO
Eric G. Bondhus, Vice President
T. 1. Martin, Inc.
1347 Dundas Circle
Monticello, MN 55362
Re: Notice of default relative to the Contract for Private Development by and between T. 1.
Martin, Inc. and the Housing and Redevelopment Authority in and for the City of
Monticello dated April 1, 1997.
Dear Eric:
.
In checking with the Wright County Treasurer's Office on January 12,2000; the second half
property taxes for 1999 remain unpaid for the property described as Lot 1, Block 1, Oakwood
Industrial Park, Second Addition, City of Monticello, PID# 155-060-001010. The amount of the
second half taxes is $5,288 and the penalty and interest as of January 12,2000, is $790.55.
Secondly, the tax increment deficiency for the first half of 1999 is $1,500 which is due within 10
days of written demand by the Authority per page 14, Section 6.3 of the Contract. For your
information, it is assumed the tax increment deficiency for the second half of 1999 is also $1,500.
EXCERPT FROM THE CONTRACT
ARTICLE II, Representations and Warranties, Section 2.2., Representations and Warranties bv
the Developer. (g) Whenever any Event of Default occurs and if the Authority shall employ
attorneys or incur other expenses for the collection of payments due or to become due or for the
enforcement of performance or observance of any obligation or agreement on the part of the
Developer under this Agreement, and the Authority prevails in such action, the Developer agrees
that it shall, within ten days of written demand by the Authority, pay to the Authority the
reasonable fees of such attorneys and such other expenses so incurred by the Authority.
At the regular meeting ofthe Housing and Redevelopment Authority scheduled for Wednesday,
February 2,2000, 7:00 p.m., City Hall, 505 Walnut Street, Monticello, MN, the commissioners
.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (6 I 2) 295-3170 . Fax: (612) 271-3272
January 13,2000
--
MONTICELLO
William R and Barbara R. Tapper
Tapper's, Inc.
212 Chelsea Road
Monticello, MN 55432
RE: T AX INCREMENT GUARANTEE NOTICE
Dear Bill and Barb:
.
Per the Private Redevelopment Contract dated July 13, 1990, between the Housing and
Redevelopment Authority (the" Authority") in and for the City of Monticello, Minnesota, and William
R. and Barbara R. Tapper (the "Redeveloper"), ARTICLE VI, Tax Increment, Section 6.1. Tax
Increment Guarantee, the Redeveloper agreed to a Tax Increment Guarantee. "Beginning in calendar
year 1992, in the event that the Tax Increment generated by the Tax Increment District in any year
until the Maturity Date is or will be less than $26,000, the Authority shall provide notice to the
Redeveloper of such fact and the amount of the deficiency in Tax Increment......"
Per the Amended and Restated Amendment to Contract for Private Redevelopment dated November
1, 1995, between the Housing and Redevelopment Authority (the "Authority") in and for the City of
Monticello, Minnesota, and William R. And Barbara R. Tapper (the "Redeveloper"), 3. Tax
Increment Guarantee, beginning in calender year 1998, in the event that the Tax Increment generated
by the Tax Increment District in any year until the Maturity Date is less than $43,000, the Authority
shall provide written notice to the Redeveloper of such fact and amount of the deficiency in Tax
Increment.
Below is a notice of the amount of Tax Increment collected by the Administrator of the City of
Monticello from the Auditor of the County of Wright, beginning calendar year 1992 through calendar
year 1999 for the property described as: Lot 4, Block 2, OAKWOOD INDUSTRIAL PARK
according to the recorded plat thereof, Wright County, Minnesota.
.
Monticell~) City ,Hall, .250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-271 1 . Fax: (612) 295-4404
Office of PublIc Works, 909 Golf Course Rd., Monticello, MN 55362' (612) 295-3170' Fax: (612) 271-3272
. William R. and Barbara R. Tapper
January 13, 2000
Page 2
1992 1993 1994 1995 1996
$25,628.14 $25,322.52 $24,196.48 $24,288.18 $24,364.08
1997 1998 1999
$24,008.52 $34,453.71 $31,839.63
.
The cumulative amount ofthe deficiency in Tax Increment through calendar year 1999 is $27,898.74.
At the September 6, 1995, meeting of the Authority, the commissioners authorized that the
Redeveloper be notified of the cumulative amount of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice and the amount is not due and payable. In order
to allow for adjustments in the amount of Tax Increment generated over the life of the District, the
Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in
Tax Increment until the Maturity Date of the Tax Increment District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the Redeveloper shall be liable for and shall pay to the
Authority the cumulative amount of the deficiency.
The Maturity Date of Tax Increment District No. 1-9 is February 26, 2000, ten years after the
approval of the plan or eight years after the date of receipt of the first tax increment. Notice is
hereby given that the cumulative amount of the deficiency in Tax Increment through the Maturity
Date is $27,898.74.
The next scheduled Authority meeting is February 2,2000, 7:00 p.m., in the Council Chambers, 505
Walnut Street, if you'd so wish to approach the Commissioners relative to the Tax Increment
deficiency or should have any questions, please call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
~~ "<d\ (J\\j~
Ollie Koropchak:
Executive Director
c:
Rick W olfsteller, Administrator
File
.
. TIF DISTRICT NO. 1-9
Tapper's Inc.
This Tax Increment District was certified April 30, 1990, at a frozen tax rate of 81.843% for
purposes of tax increment financing.
Estimated market value of $750,000 - 1992. Tax Increment Guarantee of $26,000.
25,000 sq ft facility
Estimated market value of $1,225,000 - 1998. Tax Increment Guarantee of $43,000.
18,000 sq ft addition.
Year EMV TC Rate TAX RATE Taxes TI
1992 $750,000 3% <$100,000 87.780% $31,254 $25,628
4.6%>. $100,000
1993 107.327% $36,008 $25,323
1994 112.873% $37,135 $24,196
1995 113.028% $34,648 $24,288
. 1996 110.581% $34,188 $24,364
1997 3% <$150,000 112.618% $34,729 $24,008
4.6%>$150,000
1998 $1,176,600 2.7%<$150,000 118.645% $54,216 $34,454
4%>$150,000
1999 $1,235,000 2.45%<$150,000 131.670% $55,624 $31,840
3.5%>$150,000
2000 2.4%<$150,000 131.438%
3.4%>$150,000
.
.
.
.
12.
HRA Agenda - 2/2/00
Consideration of a request from MCP for fundine: to assistance with development
and printine: costs associated with a retail marketine: Diece.
A. Reference and BacklZfound:
Barb Esse of the Monticello Community Partnership will make a presentation to the HRA
requesting funds to assistance with development and printing costs associated with a retail
marketing piece developed by the MCP.
Questions:
Plans for distribution of the marketing piece?
Mailing or as needed?
Is this for retail and commercial?
Is this for within the CCD district only or within the City of Monticello?
Is this for business owners or developers?
The MCP has put a lot of work into development of the marketing piece and Jeff, Rick,
and myself were asked to review the piece prior to the final draft. I'm unaware of any
revisions since staff's review for input. This is the first marketing piece for the community
targeted at the retail/commercial market.
Being unaware of the dollars being requested from the HRA and unaware if other
organizations are participating in the funding, no recommendation is given. If the HRA
does agree to participate in the funding, it is the recommendation of legal counsel to
allocate the expenditure from the 10% administration ofTIF District No. 1-22 and the
HRA in exchange receive a certain amount of the marketing pieces. Approved eligible
expenditures of District 1-22 are Mall redevelopment, Community Center, 75%
City/Sunny Fresh Walnut Street sidewalk, pathway development along RR along Linn and
between Linn and Walnut Street, and Hawkins and Schlief expenditures.
Certainly, the HRA endorses the Downtown and Riverfront Revitalization Plan. If and
when the HRA is ready to proceed with redevelopment of the North Anchor and solicits
request for proposals in the area recommended by the North Anchor Committee, this
could be a nice marketing tool. I'm assuming the piece is most useful for recruitment of
businesses into existing vacant buildings.
1
.
.
.
13.
HRA Agenda - 2/2/00
Consideration to authorize {layment of the monthlv BRA bills.
At this time, the HRA as no monthly bills to authorize payment.
1
.
.
.
14.
f)
g)
h)
i)
HRA Agenda - 2/2/00
Consideration of Executive Director's reoort.
a)
3 Walnut Street - At the HRA meeting in January, the commissioners waived the
first month's rent in lieu of materials and labor for painting and carpeting the
dining, living and stairway areas. Additionally, it was suggested to prepare a
letter from the HRA authorizing the right to enter for purpose of cleaning and
restoration. Enclosed is the attached letter. Secondly, a letter was prepared and
mailed to Tammy Hacker with a payment schedule for the unpaid balance of the
rent. Lastly, the municipal utility bill for the house.
Brandon Link will be moving into the house this weekend. Expect to receive the
last months rent and damage deposit today. They have painted the kitchen, dining,
living, bedroom, and stairway areas; re-sanded the dining room floor; carpeted the
living, bedroom, and stairway areas; and cleaned the kitchen carpet. Neither the
kitchen and dining room lights were working so Public Works is replacing. Car
and all debris removed and basement foundation hole repaired.
220 Front Street garage - Marian Carlson left a voice mail and submitted the
annual rent of$60 for year 2000. The contract was extended for one year.
HRA lot on West Broadway - Following the HRA meeting and direction of
commissioners, another notice to remove all stored materials was mailed the
Rolfes. I drove by the property on January 25 and it appeared the materials still
remained and now covered by snow. I checked with the Planning Department
relative to the timing of the conditional use permit. The Planning Commission will
review the permit at their March meeting with the knowledge of the BRA previous
letters relative to the request for removal of debris. Attached is the copy of the
HRA minutes of May 6, 1998.
TIF District No. 1-12/Aroplax Corporation - Copy of the letter written to Jerald
and Mary Schoen relative to the Tax Increment Guarantee Deficiency.
TIP District No. l-17/Fay-Mar - Copy of the letter written to Ron Musich relative
to unpaid taxes for the second half of 1999. The next day, Ron called and thanked
me for the letter. He was unaware the taxes had not been paid due to internal
management problem. Unpaid taxes, interest, and penalty were paid in full on
January 19,2000, per the Office of the County Treasurer.
TIP District No. l-15/Birkeland Jf. - Copy ofletter notifYing the developer that
their reimbursement check has been prepared and will be released upon the City
receiving a check in the amount of$2,426.59 per the Contract.
TIP District No. 1-23/Krenz - Copy of third notice mailed to Krenz for
reimbursement of BRA expenses and copy of the remitted check for payment in
full.
$500,000 Grant - Letter notifYing the City of Monticello of the approval of the
$500,000 grant to the city for a loan to Twin City Die Casting, Inc.
Pay-as-you-go payments - Copies of the checks to be mailed January 31,2000, per
individual Contracts. Reimbursements due February 1,2000.
b)
c)
d)
e)
1
.
.
.
BRA Agenda - 2/2/00
j)
Acquisition of industrial land - On January 24, the Council approved a concept
plan for exchange of the City's 64-acre Remmele parcel and the
Chadwick/Goeman's 140-acre parcel for industrial use.
z
January 10,2000
--
MONTICELLO
Brandon Link Apt. 37
40 15th Avenue North
Waite Park, MN 56387
Re: Letter of Right to Enter House at 3 Walnut Street
Dear Brandon:
.
At the HRA meeting of January 5, 2000, the HRA Commissioners approved entering into a
House Lease with Brandon Link for the property located at 3 Walnut Street effective February 1,
2000. They also agreed to waive the first month's rent (February) in lieu of the purchase and
labor for paint and the purchase and installation of carpet for the dining, living, and stairway
areas.
Lastly, a request was made for a letter of authorization for the right to enter the house for
purposes of cleaning and restoration. Hereby, this letter authorizes Brandon Link the right to
enter the house located at 3 Walnut Street for purposes of cleaning and restoration effective
January 6, 2000.
The amount due the Monticello HRA, February 1,2000, is $650 for the last month's rent and
$500 for the damage deposit. Should you have any questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
G ~ ~CJ'\. \:~
Ollie Koropchak
Executive Director
.
c: House Lease File
0-)
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295A404
Oftlce of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 . Fax: (612) 271-3272
January 13, 2000
MONTICELLO
Tammy Hacker
4984 Mitchell Road
Big Lake, MN 55309
Re: Final payment of rent for the property located 3 Walnut Street, Monticello, Minnesota.
Dear Tammy,
Upon termination of the House Lease for 3 Walnut Street between Tammy Hacker and the HRA,
the balance rent due is $455. Please remit the total amount due or the amount per the attached
payment schedule to Office of the HRA, 505 Walnut Street, Monticello, MN 55362. The
payment schedule allows you to payoff the delinquent rent on a gradual scale at no interest and
avoids legal action.
. As you recall on November 22, 1999, the amount past due for rent was $1,005 and subtracting
the last month's rent ($550) paid upon execution of the House Lease, the balance due is $455.
Upon the Building Official and myself assessing the property for damages and with the removal of
the carpet without lIRA permission, the damages exceeded the $500 damage deposit.
The monthly payments are due the first of each month until the debt is retired. Should you have
any questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
G~ \(,oc~-i2~
Ollie Koropchak
Executive Director
Attachment
.
c:
House Lease File
Steve Bubul, lIRA Attorney
~
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170. Fax: (612) 27 I -3272
.
.
.
ATTACHMENT A
PAYMENT SCHEDULE FOR PAST DUE RENT ON PROPERTY LOCATED AT
3 WALNUT STREET, MONTICELLO, MN
PLEASE REMIT MONTHLY PAYMENT TO:
OFFICE OF THE BRA
CITY OF MONTICELLO
505 WALNUT STREET
MONTICELLO, MN 55362
Payment Due Date
Payment Amount
February 1,2000
$50.00
March 1, 2000
$50.00
April 1,2000
$50.00
May 1, 2000
$50.00
June 1, 2000
$50.00
July 1, 2000
$50.00
August 1, 2000
$50.00
September 1, 2000
$50.00
October 1, 2000
$55.00
<l.)
.
..
.. 3 WALNUT sr"
.if i
\-:t~ ~~->,i No \ - '?--~
~ITY ~;~~NT'CELL~~~~i.~:gE tl\PLS
\ PO BOX 1147 PMMfNTS
MONTICEllO, MN 55362 PfNALTlES
I~"S'(iED 1/21/200 AUJUS1MfNTS
~
. . . . . AMOUNT 1
PRESENT PREVIOUS USED CODE AMOUNT 1
CARl 1
.80 I'
18590 16030 2560 WR 16.'77
SW 13.46 I
TAX .08 :
.'
I
I
I'
THE NEW ADDRESS FOR CITY HALL IS
~~.~-.1.liU.T 5 T T ~--.1 T E 1
READING OATES NET AMOUNT
.PREVIOU~ 2/09/ 1999
PRESENT 1/01/20 00 ~~~Ep~~H~urrl~l 2/22/2000
_~OVNl ~O.!. . .., _ \ \.\ .\ \ \\ 1\ \ \ 1,32,\ ~51\
00 f:';.e'e:t'~u.a-'-bQ PAS1'b\M~ijMW II "" I lit "
31.11
.
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.
MAil TO
HRA - ATTN OLLIE'
PO BOX 1147
MONTICELLO MN
55362
001-0043-00-00
31.H
2/22/2000
32.35
ACCOUNT NO
1
I NET AMOUNT
: ~fTER 11115 D~TE
PAY PASt DUE AMT
I
I PAST DUE AMOUNT
1
1
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January 10, 2000
~
MONTICELLO
Scott and Amy Rolfe
Skipper's Pool & Spa
101 West Broadway
P.O. Box 1234
Monticello, MN 55362
Re: Use ofHRA lot on West Broadway
Dear Scott and Amy:
After our telephone conversation of January 3, 2000, I relayed your message to the HRA
Commissioners at their January 5 meeting that two trailers and dismantled display materials
covered by a blue canvas remain within the fenced area ofthe HRA lot along West Broadway.
.
The HRA Commissioners remain consistent with their original approval which granted Skipper's
Pool & Spa the use of the HRA lot for the purpose of display only. They reaffirmed their request
for all stored materials to be removed from the parcel.
Should you have any questions, please call me at 271-3208. For your information the next HRA
meeting is February 2,2000, 7:00 p.m. at the City Hall, 505 Walnut Street.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
a~ \<<1\O~~
Ollie Koropchak
Executive Director
c: Planning Commission
File
.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 . Fax; (612) 295-4404
Office of Public Works, 909 Golf COllrse Rd., Monticello, MN 55362 . (612) 295-3170 . Fax; (612) 271-3272
~J
.
HRA MINUTES
MAY 6, 1998
6. Consideration of a request from the MCP relating to the use of the liRA lot on West
Broadway.
MCP President Barb Esse and Manager Rita Ulrich appeared before the HRA with a
proposed use of the vacant HRA lot at 111 West Broadway. The lot adjoins the office of
the MCP which is convenience for light maintenance of the property by the MCP. To
create an attractive and inviting public space, the MCP proposed the front 50 feet be used
as a gathering place and walkway via the purchase and placement offour picnic tables
with umbrellas, two park benches, fencing, plantings and miscellaneous at an estimated
cost of $3,804.40. This meets the pedestrian fiiendly spirit of the revitalization plan.
Secondly, they proposed that the remaining portion of the lot be used by Skipper's Pool
and Spa as a display area allowing room for the walkway. This to encourage business
expansion and revitalization of downtown and to eliminate the need for a conditional use
permit relating to expansion of a display area on the existing parcel.
.
Koropchak reported if an HRA receives income from a property it no longer is tax
exempt. Attorney Bubul recommended a lease agreement be drafted, executed, and
recorded and would necessitate the HRA to hold a public hearing. Koropchak noted in
conversation with the County Assessor if the use is for a limited time perhaps the property
could be considered seasonal and not taxed. Commissioners discussed options which
would result in a good solution for all concerned. The commissioners agreed their goal as
owner of this parcel was to provide the HRA with the opportunity to monitor future plans
for redevelopment of the area.
Steve Andrews made a motion approving expenditures in an amount not~to-exceed
$3,804.40 for the MCP to purchase aesthetic improvement fixtures for the southerly one-
half of the HRA lot at 111 West Broadway. This to test-the-water for use of a public
gathering place concept. Darrin Lahr seconded the motion and with no further discussion,
the motion passed unanimously. The motion was subject to a maintenance agreement
letter from the MCP.
.
Dan Frie made a motion allowing Skipper's Pool and Spa, Scott Rolfe, the use of the
northerly one-half of Lot 7 and a portion of Lot 8, Block 52, Original Plat, except the area
designated as walkway, through a period ending August 1998 with the following
conditions: Skipper's Pool and Spa must indemnify the BRA, use must be for display
purposes only, and the use must be consistent with the conditional use permit. The
motion was seconded by Steve Andrews and with no further discussion, the motion passed
unanimously. The commissioners approved the motion because Skipper's Pool and Spa is
adjacent to the unused described parcel, is consistent with the conditional use pennit and
will assist a new business.
3
.,
\ U. c..,
~
January 13,2000
MONTICELLO
Jerald 1. and Mary E. Schoen
Aroplax Corporation
200 Chelsea Road
Monticello, MN 55362
RE: TAX INCREMENT GUARANTEE NOTICE
. Dear Jerry and Mary:
Per the Private Redevelopment Contract dated August, 3, 1992, between the Housing and
Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota, and Jerald
1. and Mary E. Schoen (the "Redeveloper"), ARTICLE VI, Tax Increment, Section 6.1. Tax
Increment Guarantee, the Redeveloper agreed to a Tax Increment Guarantee. "Beginning in calendar
year 1994, in the event that the Tax Increment generated by the Tax Increment District in any year
until the Maturity Date is or will be less than $21,500, the Authority shall provide notice to the
Redeveloper of such fact and the amount of the deficiency in Tax Increment......"
Below is a notice of the amount of Tax Increment collected by the Administrator of the City of
Monticello from the Auditor of the County of Wright, beginning calendar year 1994 through calendar
year 1999 for the property described as: Lot 3, Block 2, OAKWOOD INDUSTRIAL PARK, except
for tract described in Book 290 of Deeds, page 894, City of Monticello, County of Wright.
1994 1995 1996 1997
$19,523.24 $20,908.21 $20,957.01 $20,764.38
1998 1999 2000
. $17,836.90 $16,583.46
~)
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295~271 1. Fax; (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 . Fax; (612) 271-3272
.
Jerald 1. and Mary E. Schoen
January 13,2000
Page 2
The cumulative amount of the deficiency in Tax Increment through calendar year 1999 is $12,426.80.
At the September 6, 1995, meeting of the Authority, the commissioners authorized that the
Redeveloper be notified of the cumulative amount of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice and the amount is not due and payable. In order
to allow for adjustments in the amount of Tax Increment generated over the life of the District, the
Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in
Tax Increment until the Maturity Date of the Tax Increment District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the Redeveloper shall be liable for and shall pay to the
Authority the cumulative amount of the deficiency.
If you should have any questions, please call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
.. CJ~ \<no ~J)~
.
Ollie Koropchak
Executive Director
c: Rick WolfstelIer, Administrator
File
January 12, 2000
--
MONTICELLO
Ronald S. Musich
Fay-Mar Metal Fabricators
307 Chelsea Road
Monticello, MN 55362
Re: Notice of default relative to the Second Amended and Restated Contract for Private
Redevelopment by and between the Housing and Redevelopment Authority in and for the
City of Monticello, Minnesota and Ronald S. Musich dated June 2, 1997.
Dear Ron:
.
In checking with the Wright County Treasurer's Office on January 12,2000; the second half
property taxes for 1999 remain unpaid for the property described as Lot I, Block 1, Monticello
Commerce Center Second Addition, City of Monticello, PID# 155-085-001010. The amount of
the second half taxes is $21,285 and the penalty and interest as of January 12,2000, is $ 3,182.10.
Secondly, the Office of the Authority did receive the Payment Request Certificate dated
December 11, 1999, from the Redeveloper relative to the completion and financing of the Site
Improvements for compliance of the Contract. However, since the second half property taxes for
1999 remain unpaid, the Authority has no obligation to reimburse the Redeveloper for the Site
Improvement Costs per the Contract, page 9, Section 3.9.
Lastly, at the regular meeting ofthe Housing and Redevelopment Authority scheduled for
Wednesday, February 2,2000, 7:00 p.m., City Hall, 505 Walnut Street, Monticello, MN, the
commissioners shall consider employing an attorney to enforce the said Contract unless the
property taxes and penalty and interest are paid in full. Please refer to page 17, Section 6.1.
Right to Collect Delinquent Taxes.
.
eJ
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272
.
.
.
Mr. Musich
January 12,2000
Page 2
Should you have any questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
O~ \~cAU~~
Ollie Koropchak
Executive Director
c: Jim Amundson, Marquette Bank
Steve Bubul, HRA Attorney, Kennedy & Graven
Doug Gruber, Wright County Auditor
Rick Wolfsteller, City Administrator
TIF District No. 1-17 File
r"
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"
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~
January 12,2000
MONTICELLO
Stephen P. Birkeland, Jr. and
Joan M. Birkeland
4013 Highway 25 North
Buffalo, MN 55313
Re: Contract for Private Redevelopment by and between the Housing and Redevelopment
Authority in and for the City of Monticello, Minnesota and Stephen P. Birkeland, JL and
Joan M. Birkeland dated April 12, 1993,
Dear Stephen and Joan:
. This is a notice that the Authority has authorized the issuance of a check to Stephen P. Birkeland,
JL and Joan M. Birkeland for the annual payment associated with reimbursement of the land
write-down for the property located at Lot 6, Block 2, Oakwood Industrial Park The check will
be released to the Redeveloper upon the Authority receiving a check from the Redeveloper to the
City in the amount of $2,42659 per the Contract, page 7, Section 3, L
Please note the Office of the City and Authority has moved to its new location and mailing
address of 505 Walnut Street, Monticello, MN 55362.
Should you have any questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
C9~ \<~0 ~ ~
Ollie Koropchak
Executive Director
.
c:
Rick Wolfsteller, City Administrator
TIP District No. 1-15 File
~)
Monticello City Hall. 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3] 70. Fax: (612) 271-3272
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January 13,2000
MONTICELLO
Mr. Steve Krenz
Midwest Graphics and Response Systems, Inc.
9600 Fallon Avenue NE
Monticello, MN 55362
Re: Third Notice for Reimbursement ofHRA Expenditures
Dear Mr. Krenz:
.
Via letters dated November 22 and December 13, 1999, the HRA notified Midwest Graphics and
Response Systems, Inc. of the amount owed the Housing and Redevelopment Authority for costs
associated with amending the Contract for Private Redevelopment between lAC. and the BRA.
Approval of the amendment was subject to certain conditions. One condition was that the
developer agreed to reimburse the HRA for costs associated with the first amendment of the
Contract.
The payment was due December 22, 1999, thirty days from the invoice date, and a 1 % interest
per month is charged by the City of Monticello after due date. Again, the total amount due the
Monticello HRA is $2,344.14 plus interest. Please remit payment to Monticello HRA, Attention
Ollie Koropchak, 505 Walnut Street, Monticello, MN 55362.
Should you have questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
C)~ \~cf\~~S1~
Ollie Koropchak
Executive Director
.
c:
Rick Wolfsteller, City Administrator
Steve Bubul, HRA Attorney
~)
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295~2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362' (612) 295-3170' Fax: (612) 271-3272
,II.. _._,....._,..~.:'IIIl,~.._..
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PAY t: ~
~~~OF ~L..._ -~~4~1'-^
!YJ. Marquette Bank
A Monticello
OftIelll 0' M8rquette e.n~. N,A.
108 Pine SI" PO. Bo. 729
MOnllcollo, MN 55362
FOR
-'~1,~ '.\)I"~.~
75-166419
910
\ ' V~ .eCL
I~
.. $~\~y-~ -
~ \ ~/1QU - 1'!1 '~'''''''''..'
f . ...~DOLLARS . ~~-
DATE
-:0'1 ~O ~bb"'?-:
~~~r:~~~.~~~~--,,~,~~:~!~."~~"W":"'~.~"'::!"i~?~~~~..:l~~~..:l'--"J<1U1UII"~:I!'~j!<<t~m.~~.mIBB!irmIR)tI'!:..,~,~'.iIi:~,i",...,.....,,..,..,... .,(,17';~)!~.-,!..
~-
.
---------- ,
.
1
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~
.
.
.
Jan-l1-00 01 :12pm From-DTED
T-605 P.02/02 F-329
\~ 1'1.r:.,) U l'
"'."1
-Trade&-
Economic
Development
January 5, 2000
The Honorable Roger Belsaas
Mayor, City of Monticello
CiI)' Hall, 250 E. Broadway
Momicdlo, MN 55362
Dear Mayor Bdsaas:
I am pleased to intonn >,OU that your application for a Minnesota Investment Fund grant has be('n
approved in the:' amount of $500,000. As outlined in the approved application, the CitY of
Monticello will make a loan of $500,000 (0 Twin City Die Casting Company.
A grant agree-mem is bc:ing pr~pared by the: Business and Conununity Development Division
sullY They wilJ also provide you with additional infonnation about your ~rant ilw<1Id to help yO\!
<l~hleve your economic development goals.
Also, please note that )'OI.1l approved application becomes pan of the: grant agreement. For
additional infonnation, contact Paul Mac:, Director of Businc:ss Finance at (651)297-1391.
finally, let me extend my congratulations to .rou and your staff for d~vdopillg a succes)ful
project application to hdp address your community and economic dc:vdoprnlC'nt needs.
Kind regards,
-, .
/' \ /i
~1.h<[ -j,.J ~'-(-
, .I Je1T}' Carlson
"
Commission~r
'""'IIIIOJ~!)~jo
'iOO Metro )Quarc:, III 7tn Place .Eibt, )aJnt Paul. Mmnesuta 55101-2146 USA
6':1.:N7.l:!lh . ilOO.6'i7-1858' f;u;. 651'2!l6.~772' TIY/TDO ROO.627.1~29
W'WW Otea state mn Ul>
~)
CITY OF MONTICELLO
GENERAL FUND
250 EAST BROADWAY
MONTICELLO. MN 55362
~ THOUSAND AND 00/100 DOLLARS
DATE
01/20/2000
PAY 10
THE
ORDER
OF
NAWCO ATTN: JOHN BABCOCK
H-WINDOW COMPANY
1324 E OAKWOOD DRIVE
MONTICELLO MN 55362
1110 5 q '-t ? j III I: 0 q .0 . b b '-t ? I:
75-1664
910
NO.
46527
MARQUETTE BANK. MONTICELLO
P O. BOX 729
MONTICELLO, MN 55362
CHECK NO. AMOUNT
46527 $10,000.00
? bOO O. ? III
VENDOR 001213 NAweo
ATTN: JOHN BABCOCK
01/20/2000
213.46507.6511
CHECK
46527
TIF 1-7
10,000.00
.
CITY OF MONTICELLO
.
TOTAL
10,000.0
\)
....1.....1.:..1 '-"J.k,.....
CITY OF MONTICELLO
GENERAL FUND
250 EAST BROADWAY
MONTICELLO, MN 55362
75-1664
910
NO,
DATE
~ 01/20/2000
T~Y FOUR THOUSAND FOURTEEN AND 79/100 DOLLARS
46503
MARQUETTE BANk. MONTICEllO
P o. BOX 729
MONTICEllO, MN 55362
CHECK NO.
46503
AMOUNT
$24,014.79
PAY 10 DEMEULES FAMILY LIMITED PTNSHP
O~~~R 207 DUNDAS ROAD
OF MONTICELLO MN 55362
II- 0 5 '1 ~ ~ 1111- I: 0 11 .0 U; b ~ ? I:
? bOO O. ? II-
ENDOR 000952 DEMEULES FAMILY LIMITED PTNSHP 01/20/2000
CHECK
46503
13.46513.6511
TIF 1-23 SEMI ANNUAL
24,014.79
.
CITY OF MONTICELLO
TOTAL
24,014.7
.
1..11 Y OF MONTICELLO
GENERAL FUND
250 EAST BROADWAY
MONTICELLO, MN 55362
DATE
01/20/2000
~RTEEN THOUSAND ONE HUNDRED FOUR AND 55/100 DOLLARS
PAY 10
THE
ORDER
OF
PRESBYTERIAN HOMES HOUSING
AND ASSISTED LIVING, INC
3220 LAKE JOHANNA BLVD
ST PAUL MN 55112-7997
"105 q ~ 75"1 ':0 q .0 u; b ~ 7.:
7 r; 0 00. 7 III
VENDOR 001217 PRESBYTERIAN HOMES HOUSING
75-1664
910
NO.
46529
MARQUETTE BANI( . MONTICELLO
P O. BOX 729
MONTICELLO, MN 55362
CHECK NO. AMOUNT
46529 $14,104.55
01/20/2000
213.46519.6511
TIF 1-19
.
CITY OF MONTICELLO
.
CHECK
46529
14,104.55
TOTAL
14,104.5
lAI Y UI- 1\lIUN II(.;I::.LLO
GENERAL FUND
250 EAST BROADWAY
MONTICELLO. MN 55362
--gTo
NO.
46535
MARQUETTE BANK. MONTICELLO
P Q. BOX 729
MONT/CELLO. MN 55362
DATE CHECK NO.
. 01/20/2000 46535
T Y EIGHT THOUSAND ONE HUNDRED SEVENTY EIGHT AND 80/100 DOLLARS
AMOUNT
$38,178.80
PAY 10
THE
ORDER
OF
RIVER MILLS
C-O RDI - RICK MURRAY
15 CHOCTAW CIRCLE
CHANHASSEN MN 55317
-;?z-;~i/~
'....-...:...:.C." . /,. J :/". ....... :/"
. . ". ., ~wr~ .... ...... ....
. . .....::- ~..<,.,..,........(:,.,).:.
11.0511....8.11. .:011.0.1;1;....7.:
7 bOO O. 711.
VENDOR 001620 RIVER MILLS
. .
213.46518.6511
TIF 1-18
38,178.80
.
TOTAL
38.178.8
CITY OF MONTICELLO
.
~...
.
. M;.".,.,. Ch,.'" Ii o'n i D'g '".d'l;..
VOL 18 NO 1
JANUARY 2000
.:;::.i,:,::i.:..:..' ;::>i ' '" .~.. ,~.JI .1.';:j:"i'r~ '-:" ->;"
~ Creating Today's City Centers
.
By CHRISTOPHER DUERKSEN and
C. GREGORY DALE. AICP
The traditional city center is where
the action is. It is shown off to
visitors. It sets one community apart
from another and makes it special.
Some work there, many live nearby,
nearly everyone goes there for
government services, to shop, hear
music, or enjoy summer festivals.
The old, small city downtown is what
often comes to mind when the
concept of a city center is brought up:
with a sundae-serving drug store,
sporting goods store, a dry goods
store, and the best restaurants in
town. City hall, the courthouse, and
city park were often nearby, with
picnic tables and a bandshell.
Downtown was where the holidays
were celebrated, where parades
marched, and the post office was
located. When friends came to visit,
downtown was the place to go; it
defined the community and was the
place to be.
Many suburban communities have no
old downtown; they are often accused
of having no "there" there, to para-
phrase Gertrude Stein. To those
critics, suburban communities look
increasingly bland and homogenous.
Little distinguishes one place from
another. Suburban development is
criticized for being continuous and
repetitive; a series of isolated land
uses separated by parking lots, roads,
and landscaped buffers.
More importantly, we are seeing an
increasing number of citizens voice
these same concerns in local commu-
.
nity planning processes. Concerns
about "lack of a sense of place,"
"community character," and creating
a "community focal point" are being
voiced at the grass roots level in
suburbs across the country.
Many suburban communities have
responded by trying to create new
city centers, hoping to inject a
liveliness and sense of place missing
in their communities. Industry
publications, as well as planning
publications, document the growing
desire for a new kind of public life -
one that is walkable, compact, full of
diversity and vitality, a place for
shopping, civic life, and leisure.
There is a need for a location that
provides an experience of unique-
ness, a sense of place, connected not
by parking lots, but by people.
What is a "city center" in today's
suburban context? Based on the
diverse nature of new city centers
being developed around the country,
this is a difficult question to answer.
Some new city centers are dense and
urban in character, while other
emphasize a parklike setting. What
they all share, however, is an underly-
ing motivation to create a community
focal point that emphasizes human
scale.
This article explores the emerging
trend of the creation of new centers in
communities where none exist. In
particular this article identifies a
series of issues related to variables
affecting the success of city centers.
continued on page 3
,
Legislative Report ..
December 1999
By BLAIR TREMERE
Representative Peg Larsen (R-
Lakeland), Chairperson of the House
Committee on Local Government and
Metropolitan Affairs established three
subcommittees early in the 1999
session to perform various assign-
ments, including interim hearings
prior to the 2000 session which
begins February 1. Two of the
subcommittees have held at least one
hearing and the third will meet in
January. All committees are accept-
ing written input and research.
The Subcommittee on Tax Increment
Financing (TIF) is chaired by Rep.
Michelle Rifenberg (R-La Crescent).
The assignments included receiving
information and instruction from the
Office of the State Auditor about
rules and procedures for TIP, as well
as administrative and audit problems.
Presentations at the August hearing
were made by the Auditor, a House
continued on page 2
~St~\ry'.~:' "':',r"':.'71"t'~ 'f""~ r '"' ' ","~ ,,":"~
City Centers - cont'd from page 1
As a general theme, communities who
are considering city centers should
carefully analyze the economics of real
estate development. While there are
many exciting physical design issues
involved in creating a "sense of place,"
ultimately their success rests heavily on
solid economic foundations.
As communities continue to explore the
creation of new city centers, the
following issues should be considered
in the discussion process.
Achieving the Right Mix of Uses and
Density
A judicious mix of uses and density is
one of the most critical components of
city center success. The densities
needed to support a city center cannot
be achieved through single uses alone.
A center that caters strictly to daytime
office uses will not generate the
required number of people for retail
uses to survive. A combination of uses
and activities are needed to provide
enough people to make space active,
exciting, and cOllllllercially viable.
CommerciaL U,yes. Like thc traditional
marketplace. commercial uses are
usually a critical part of the city
center's success. Commercial activities
are often the anchor within the city
center. Retail uses in combination with
office uses can complement each other,
Civic and Institutional Uses. Though
the marketplace may have been a
traditional gathering place, civic and
cultural institutions can add to the
critical mass needed for success and
today often provide identity and focus.
Libraries and museums tell a lot about
a community. Government offices
promote stability and daytime traffic.
In addition to government institutions,
the inclusion of public spaces such as
plazas, squares, and parks can be an
very important element of a new city
center. Having a place for impromptu
or holiday celebrations reinforces a
sense of community identity.
~:,i:"'""~""'\~"-: ,'''''~:',~'''',::'o:/T~'"r:~/~:''''''~~:,':::'V''!'~, ~Jt4~,-:",':.~\r~'\~:~I"!.:,~::::tM,:::;I',~~~\ftl'?~:;~'~~'1~~',~'\1+(~'V,'"~~~
,.,
Residential Uses. Every city center
studied has a strong residential compo-
nent, either on-site or nearby. Different
types of housing should be provided for
different market segments either in the
city center or within walking distance.
On~site or adjacent condominiums,
townhouses, or second and third story
flats, combine to provide the higher
densities needed to make the commer~
cial site viable for investors. Abundant
and varied housing is another way to
achieve much of the needed critical
mass.
Financing
City center financing mechanisms show
great variety and creativity - often
involving a combination of public and
private mechanisms. However, overall
most development costs were assumed
by thl: developer. When public funds
are used, they typically are used for
infrastructure, streets, street furniture,
landscaping, lighting, and sometimes
land acquisition.
Financing mechanisms for city center
development or redevelopment vary
wiucly from place to place. Some are
built entirely with private funus.
Others utilize mechanisms such as tax
increment financing, construction of
publicly owned facilities such as
parking structures, the use of business
improvement districts, special taxes,
tax credits, grants, and even funding
through the federal Intermodal Surface
Transportation Efficiency Act program.
Planning and Management
Involving local citizens in the planning
process helps ensure awareness of and
support for the city center, resulting in
a better project. Public meetings, focus
groups, neighborhood meetings. and
other community involvement methods
have been incorporated into the
planning process. Many of the city
centers were initially conceived of in
broader based comprehensive planning
efforts in the community.
As indicated above, understanding the
market is essential. A solid market
analysis can help a community and
developer position the city center to be
viable in the local and regional market.
Evaluating area needs is necessary, so a
market study must be conducted for
both regional and local markets. This
is an age of specialty marketing, so it is
important to understand the area's
demographics and what market is
currently being served. The assessment
can help identify what might be
missing and define an appropriate
niche.
The local jurisdiction must also have a
strong working relationship with the
developer or developers. As a more
unique land use, city centers require a
high degree of communication regard~
ing such issues as access, street
standards, or design standards. Both
entities need to work cooperatively on
siting, infrastructure, signage, parking,
etc.
.
A city center will also require top
quality management once the project is
in place, commonly the site is managed
by an association of business owners.
Management might also be a publici
private cooperative venture.
Creating a "Sense of Place"
A successful city center could be the
focus of commerce, ]ocal government,
or cultural activity - or all three, but it
must be more than just a mix of
unconnected uses. It should be a place
to gather. As discussed above, one way
to create a lively city center is to tie our
important civic institutions - our
libraries, courthouses, etc. ~ to the
commercial needs of modern life.
Successful city centers have pulled
these elements back together, combin-
ing government and non-government
activities.
.
To help create a sense a place consider
the following:
Identify the community's distin-
guishing features. its history, and
its values.
continued on page 5
.
"
plafl'h'-:'
...i
.~:r(.~..I;.:.:C~~.:.~.~"f::.T.;~.t~.t.~.;~
.
planned future improvements for
their area. But often it is the extreme,
single interest, vocal and/or wealthy
naysayers that kill otherwise good
projects.
None of this is to say that we should
go back to the days when profes-
sional planners (and engineers,
architects, etc.) played God, deter-
mining what is "best" without
allowing residents affected by their
proposals to have meaningful input.
But it does indicate to me that we
need to find effective ways to share
important planning principles with
,. ." ".' ':"\i,:';"~:'~"'~'~'~":'"'":".~~"~:r::'~~'"-~,' 7;':.'~~:~)/~rr"';'!", ,::'':,",'';~ ",:" ,..",~^"~',:"~v:';'~:::f~r~:"".~TI"*'.o/l;C::,!I'~M,:':t'~J:.~l1
those who would participate in
decision making. And we need to
hone our skills in getting citizen input
at the earliest stages of a planning
process so that we can effectively
inoculate our plans against late-in-
the-game alarmists who thrive on
media attention. A conference
session addressing that issue could
probably be offered every year!
Your citizen or professional input
regarding the above, or any other
matter, is most welcome!
jfishcr@byways.org
.
City Centers - conrd from page 3
Create gateways to the city center
that symbolize the character and
quality of the community.
Celebrate civic involvement and
public accomplishments.
Choose a conspicuous site that can
serve the whole community. This
is particularly true when commu-
nity buildings will be located in the
city center.
Include artistic clements than can
be changed or that will provide
interest, for example, interactive
sculpture or fountains.
Schedule special events, celebra-
tions, ceremonies, and activities in
the city center.
Encourage people to care about the
place. Let them become involved
in its creation or care.
Try to balance aesthetics with
function.
Encourage outdoor vendors and
entertainers.
Be aware of sensory impressions.
Memorable places are experiential.
Access, Traffic and Parking
Traffic is a fact of everyday life. Dense
land use can lessen the need for
.
January 2000'
I ~r.l /d ,',
automobile transportation if most goods
and services are well located. Although
promoting pedestrian use and scale is
an important goal, there will continue
to be a need for roadways. traffic
management and parking requirements.
There are a number of ways for dealing
with access, traffic, and parking:
Plan the city center as a multiuse
destination with multi-modal
transportation needs.
Consider the transportation
system(s) as interdependent
clements that serve the city center,
the surrounding community, and
the region.
Design with the convenience and
pleasure of the visitor in mind.
Provide easy to understand
directional signs: access to the eity
center should be uncomplicated.
Use uneven paving surfaces, such
as brick, to slow down traffic.
· Narrow the street at pedestrian
crossings,
Permit on-street parking. Keep
parking lots to the rear of buildings
as much as possible, even if it
means the merchant must have a
rear entrance.
continued on page 6
,'. 'I; :;'l:""~A'J":~
j",,;, :<Ij"ll'"' lB, ,~"r
ft;AW1irtn
'\MPAQlBECTORX,s
DIRECTORS
o>:?<::<)
President
Chad Haatvedt, 218/327-2992
chad@uarcs.com
President-Elect
Secretary-Treasurer
Bill Schlenvogt. 218/879-2507
APA President
Jill Fisher, AICP. 218/529-7551.
jfisher@byways.org
DISTRICT CO-DIRECTORS
District A
Barbara Hangsleben, 218/773-2624
[VACANTI
District B
Chad Haatvedt. 218/327.2992
Bill Schlenvogt. 218/879-2507
District C
Gordon Hydukovich. 218/739-2251
Marie Mars, 218/287-2693
District D
Rita Johnson. 612/441-4547
Curt Jacobson, 612/263-2107
District E
Mary Jo Halliday, 612/523-2361
Bruce Peterson. 612/235-8311
District F
David Dacquisto. 507/332-6173
Abraham Algadi. 507/356-8103 or
1-800/848-3953
District G
Glenda Mooney, 651/429.9065
John Hendricks, 651/429.8126
plalln~
-'.
,..r--;- '. ..,' ~
,'~'~"'\ ,.' ''','i;;~,'';:~''''''',.,:, ..,',':,~.,':). ,",
City Centers. cont'd from page 5
Break up large parking lots into
small individual landscaped
parking lots throughout the city
center.
Use thc strcetlevcl of a parking
garage for retail shops and
services.
Add facades to parking structures
that arc architecturally compatible
with surrounding structures.
Provide landscape buffers betwccn
streets and parking lots; use
abundant landscaping within
parking lots.
Hoisington Koegler Group Inc.
Crealive SO/lIliollv/ar l.and Planning and Design
(JUcring II COllllllllllily based. COIISellSllS blli/ding 1I(J(Jmach 10:
. Comprehensive Planning
. Urban Design 1 Slreelscapes
. Redevelopment Planning
'" """,,", r: ".,." ." ". "','1","" ,." " ".,"""
'1"':"".':"';'. ~ :"~".'-;~ -.:.....,\"\~"':!.~iJ~,!<':,?:.::::'.I~>,~,~~<":~~~~~'\~
........It-
Designing Spaces for People
People are the key to successful
suburban centcrs. Whether the
community's objective is to foster civic
pride, create a "sense of place," or
promote economic development,
people are the critical factor.
This obvious observation is often
overlooked in the rush for cutting edge
design in building a new city center.
Pedestrian needs can not be over-
looked; an abundant supply of pedestri-
ans is critical for commercial success.
Success city centers cater to the
pedestrian through:
mil
~n
. Park & Open Spaee Planning 1 Design
. Conidor Planning
. Site Planning 1 Design
123 North 111ird Street #100. Minneapolis. MN 55401. (612) 33lUJ800
[lBRW
Dm!IlII A DAMES4"MCiOIlE GROUP COMPANY
700 Third Street South
Minneapolis, MN 55415
612/370-0700
Contact: William Weber, AICP
www.brwinc.com
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Transportation
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Planning
Urban Design
. Community Planning
. Urban Design
· Public Spaces & Trails
· Environmental Planning
· Transportation & Traffic
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One Carlson Parkway North, Suite 150, Minneapolis, MN 55447-4443
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". c.() ..1, .. .:"fling
Providing narrower streets.
Building plenty of sidewalks.
Using weather sheltering devices
- awnings or covered walkways.
Developing of a pedestrian scale
and keeping building heights to a
modest level.
Designing simple, logical,
understandable circulation systems
for pedestrians and moturists.
Eliminating "dead spaces."
Pedestrians should experience a
continuous street wall of shups and
services. Empty lots, blank
.
~ Engineering
RLK Surveying
( t<UlJS1~~t"(j i:I"IJ ) __ ._,._ ...._....__._____.
~
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St. Paul
(651) 454-4554
Hibbing
(218) 262-5528
Minnetonka
(612) 933-0972
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(218) 720-6219
We Can Help
Comprehensive Planning
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Engineering
Meg J. McMonlgal, A.I.C.P.
6121476-6010 612/476-8532 fax
Website: htlp:l/www.mfra.com
15050 23rd Avenue North
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\\Ie help you plan, design, and achieve.
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1,800,325" 2 0 5 5 SHORT ELLIOTT HENDRICKSON INe www.sehinc.com
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i'I_R'1
.. .
~~;~~~"~'F'J~~'t;'!I"':"~:.;:::'''?":'~~,~;~..;t:~'::lli',~.,~;;'''''':''P:".:''.,,''":~':~','-~.,~~/.';T:~~,~.t~'>';''~4~~~~.W:V.'i~.r~:rl-/t~~;'\~.'~'~:~~rJ.1?~~_;,r~,~",,~~'IN.I
..
facades, etc., can be a detriment to
pedestrian traffic.
Building wider sidewalks near
traffic intersections which are
easier for pedestrians to cross and
will also slow traffic.
Limiting the size of blocks to 200
- 300 feet, whenever possible.
Requiring connections to the
surrounding neighborhood.
Providing consistent, easy to read,
identi fiable directional signs.
Including signs that indicate routes
to special events and important
places.
Encouraging use by different
groups and subgroups of people,
but do not allow one group to
dominate.
.
.
Making food service available,
such as takeout food and outdoor
cafes; including outdoor tables.
Furnishing it appropriately for the
activities intended.
In addition, plazas, parks, ano trails can
. link a successful city center to the rest
of the community. These are places for
festivals and celebrations - events and
activities that give life and vitality to
the community. Connections to
surrounding neighborhoods, pedestrian/
bicycle trails that connect local
neighborhoods to the city center, and
parkway treatment that act as gateways
to the center are all ways to connect the
center to the surrounoing areas.
Transit
Planners and urban designers often
advocate mass transit as a cornerstone
for city center success. However this is
not always borne out by the communi-
ties stuoieo. Nonetheless, the relation-
ship between land use and transporta-
tion is important. Dense land uses are
more efficient and are the underpinning
of successful public transportation -
particularly rail. Transit SlOpS at a city
center increases the potential customer/
user base. Transit riders provide
additional pedestrian traffic and
increase the available market base. At
the very least, communities should
preserve public transit opportunities for
the future.
Conclusion
City centers are likely to continue to
emerge as an alternative to conven-
tional suburban development. It offers
an opportunity to create that commu-
nity focal point that is often perceived
to be lacking in growing suburban
areas. However, the long range
viability of the city center concept rests
on the ability of communities and
developers to work together to create
both the physical design desired by the
community and the economic realities
of the pri vate sector.
Chris Duerksen is fhe Managing
Partner for Clarion Associates in
Denver, Colorado. C. GregOl)' Dale
AICP is a Principal with McBride Dale
Clarion in Cincinnati, Ohio.
Reprilltedfrolll fhe Ohio Planners
News. a bimollthly publication of the
Ohio Planning Conference, a chapter
of APA.
DAHLGREN
SHARDLOW
AND. UBAN
Landecker & Associates, Inc.
Engineering. Surveying. Planning
Peq uot Lakes Walker Grand Rapids
Toll Free: 888-866-4940
.'. RESOURCE
..... -. <> STRATEGIES
CORPORATION
CONSULTING PLANNERS
LANDSCAPE ARCHITECTS
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