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EDA Agenda 08-10-2016AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, August 10th, 2016 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Steve Johnson, Tracy Hinz, James Davidson, and Council members Tom Perrault and Lloyd Hilgart Staff: Jeff O'Neill, Angela Schumann, EDA Executive Director Jim Thares, Wayne Oberg Guest: Tammy Omdal, Northland Securities 1. Call to Order 2. Roll Call 3. Approve Meeting Minutes: a. Regular Meeting — July 13th, 2016 4. Consideration of additional agenda items 5. Consideration of approving payment of bills 6. Public Hearing — Sale of 413 — 4th Street West & Consideration of Adoption of Resolution 2016 -006 Authorizing Sale and Entering into Purchase and Redevelopment Agreement with Taylor Holdings, LLC. 7. Public Hearing — Sale of 349 West Broadway & Consideration of Adoption of Resolution 2016 -007 Authorizing Sale and Entering into Purchase and Redevelopment Agreement with Hallie Leffingwell (We Thrive Fitness, LLC) 8. Consideration of Approval of 2016 TIF Management Plan, Tammy Omdal, Northland Securities 9. Consideration of Adopting Resolution 2016 -008 approving Amendment to Contract for Private Development between Masters 51 Avenue and the Monticello EDA related to Tan Increment Financing District 1 -35 10. Consideration of Adopting Resolution EDA 2016 -009 Authorizing the Levy of A Special Benefit Levy Pursuant To Minnesota Statutes, Section 469.033, Subdivision 6 and Approval of A Budget for Fiscal Year 2017. 11. Consideration of Economic Development Assistance Contract with WSB & Associates for lead generation and financial packaging assistance. 12. Consider Authorizing Industry of the Year Event Expenditures 13. Consideration of Outdoor Storage Standards in Otter Creek Business Park 14. Consideration of Landscaping Improvements on Block 34, 100 East Broadway site 15. Consideration of Director's Report 16. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 13th, 2016, Mississippi Room, Monticello Community Center EDA Members Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, James Davidson, Tom Perrault, Lloyd Hilgart Others: Jeff O'Neill, Angela Schumann, Jim Thares, Wayne Oberg, Ryan Spencer (WSB), Brett Weiss (WSB) 1. Call to Order President Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approve Meeting Minutes: a. Special Meeting — April 13th, 2016 (To Be Provided at Meeting) b. Special Meeting — April 18th, 2016 (To Be Provided at Meeting) c. Workshop Meeting — June 2, 2016 d. Regular Meeting - June 8, 2016 HINZ MOVED TO APPROVE THE APRIL 13TH, 2016 SPECIAL MEETING MINUTES WITH CORRECTIONS. PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. HILGART MOVED TO APPROVE THE APRIL 18TH, 2016 SPECIAL MEETING MINUTES. JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. TAPPER MOVED TO APPROVE THE JUNE 2ND, 2016 WORKSHOP MEETING MINUTES WITH CORRECTIONS. PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. PERRAULT MOVED TO APPROVE THE JUNE 8, 2016 REGULAR MEETING MINUTES WITH SUBMITTED CHANGES. HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 4. Consideration of additional agenda items NONE. 5. Consideration of approving payment of bills HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH JUNE, 2016. DAVIDSON SECONDED THE MOTION. MOTION CARRIED 7 -0. 6. Consideration of Acceptance of Phase II Env. Report for Block 34, Rvan Spencer, WSB Jim Thares provided a brief overview of two phases of environmental reports for Block 34 (city- owned) completed by WSB. During the summer of 2015, a concern of problematic soils from an underground tank leak was identified at 100 East Broadway. The EDA gained additional site control over additional properties on Block 34 throughout building demolition. Phase I was completed by WSB in November 2014 to better understand the area of concern. An update was then completed in February 2016, which identified three Recognized Environmental Conditions (RECs) and one historic REC. In April, 2016 the EDA discussed action to complete Phase II for Block 34. The fieldwork was completed by WSB in mid -May 2016. Thares introduced Ryan Spencer (WSB) to further explain the Phase II. Spencer stated WSB targeted 130 East Broadway for coal gasification noted in Phase I. From the soil borings taken from the site, no large scale contamination issues were discovered. There was some contamination that surpassed MPCA thresholds which mandates reporting. The City is waiting for the MPCA to determine any follow -up that needs to occur on the site. Another recommendation from Phase II, was prior to redevelopment, prior environmental oversight should be completed to assess subsurface conditions. Spencer also mentioned WSB is providing oversight for a utility being excavated on Block 34. There has been no evidence of soil contamination at this area as of this date. Johnson questioned whether these results would preclude development to the site depending on MPCAs remediation requirements. Spencer reassured members that the data indicates there is no large scale issue with the site. However, the report is currently under review by MPCA and could be a deterrent to development in the near term future. This review should be completed within 30 to 45 days. Spencer also mentioned that the Zoo Bar building historically contained a tank on site. Petro funds, a program through the Department of Commerce, would reimburse petroleum related releases from tank systems could be available for the Zoo Bar building if noted in the MPCA report as an issue. TAPPER MOVED TO ACCEPT PHASE II ENVIRONMENT REPORT FOR BLOCK 34. HILGART SECONDED THE MOTION. MOTION CARRIED 7 -0. 7. Consideration of Update of Storm Water Management System Proposal for Otter Creek Business Park, Brett Weiss, WSB Jim Thares provided an update of the storm water management system proposal for Otter Creek Business Park. Thares stated there was no action required by the EDA, but wanted to mention there are several changes to measuring storm water. Thares introduced Brett Weiss to provide further details. Weiss explained the National Oceanic and Atmospheric Administration Atlas 14 criteria being used to develop pond systems. This new measurement system changes the way ponds are calculated and encourages cities to use higher amounts of rainfall when determining ponds. This new system could have implications for the Otter Creek Business Park, but Weiss stated that it should not impede future development. WSB will be presenting at a future City Council meeting to request updating current ponds to fit the Atlas 14 criteria. Weiss opened the discussion up to EDA members. Angela Schumann asked Weiss to explain how the trunk fee system works for stormwater management. Weiss explained those that provide ponds on their property receive a credit, while those that don't provide ponds pay a fee to have the City create a pond elsewhere. A base fee is also assessed to pay for the piping and discharge. 8. Consideration to direct preparation of an Amendment to the Contract for Private Development between Masters 5th Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35 Jim Thares explained to the EDA a request to modify tax increment financing for District 1 -35 for the developer to consider retail and mixed used (commercial and residential). If approved, Thares stated that there are several steps to go through including final approval by City Council. In this request, no change in financing would be made. Angela Schumann specified if the EDA takes no action, the contract stands and the developer can continue with commercial development. If desired and the developer receives all land use approvals, they could move through the project without tax increment financing. HILGART MOVED TO MOTION TO DIRECT PREPARATION OF AN AMENDMENT TO THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN MASTERS 5TH AVENUE AND THE MONTICELLO EDA AND MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT I -35. DEMEULES SECONDED THE MOTION. MOTION CARRIED 4 -3 WITH TAPPER, DAVIDSON, AND JOHNSON VOTING AGAINST. 9. Consideration of discussion regarding protective covenants for Outlots E and F, Otter Creek Crossing as related to outdoor storage Jim Thares mentioned that City Staff talked to the prospective business interested in Otter Creek Business Park. City staff presented the covenant amendment information to the business and they had the opportunity to review with their staff and builder. The business was concerned about the amount of building area that could be dedicated for outdoor storage. They felt it infringed on their ability to operate and requested 50 percent of the building be used for indoor storage to be used mainly to store PVC pipe. President Demeules questioned what type of enforcement the City could provide for outdoor storage as it relates to storm water runoff Angela Schumann stated that a site plan review is typically required for industrial areas and the business has to meet the standards identified in the zoning ordinance. HINZ MOVED TO AUTHORIZE STAFF TO WORK ON ADDITIONAL "NEXT STEPS" RESEARCH OF OUTDOOR STORAGE STANDARDS RELATED TO A POSSIBLE AMENDMENT OF THE PROTECTIVE COVENANTS IN OTTER CREEK CROSSING AND REVIEW WITH ALL PROPERTY OWNERS IN OTTER CREEK BUSINESS PARK. TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. 10. Consideration of discussion regarding Small Area Study in Downtown Jim Thares introduced the possibility of a small area study for downtown as determined by the EDA as a priority. City staff is concerned that the previous downtown plan should be revisited for updates. This project is estimated at $45,000 - $55,000. Wayne Oberg mentioned that on Block 34 there are two wells that are central to the water supply system and pump 1,300 gallons per minute. If those wells were lost, there would be significant costs to residents. Oberg asked the study to dissuade removing those wells and clearly articulate the need in the request for proposal. Jeff O'Neill noted several benefits that resulted from the 1997 and 2012 downtown plans and encouraged the EDA to provide clear direction on their intent for the downtown. Angela Schumann also encouraged the EDA to set a vision for what they would like to see for Downtown Monticello. Schumann stated the goal would be to blend the developer's bias towards practical or viable and the EDA's vision of the community and downtown. Schumann mentioned the importance of having a plan in place to continue momentum and developing the downtown. TAPPER MADE A MOTION TO DIRECT STAFF TO PREPARE RFPS FOR EDA REVIEW AND COMMENT. HINZ SECONDED. AN AMENDMENT TO THE MOTION WAS MADE BY TAPPER TO TAKE INTO CONSIDERATION THE WELLS AND INFRASTRUCTURE LOCATED AT BLOCK 34. MOTION CARRIED 6 -1 WITH PERRAULT VOTING AGAINST. 11. Consideration of 2017 EDA Budget Jim Thares presented a draft EDA Budget for 2017. Thares asked members of the EDA to review and make comments at the next EDA meeting in August. He stated that the budget is similar to last year. The largest change to the budget is proposed for the Small Area Study for $50,000. Wayne Oberg stated that he will soon be reviewing the budget more closely. President Demeules asked if an updated TIF plan would tie into the budget. Thares noted that a TIF plan update will be presented in August. Oberg offered clarification that the budget does not go by line item, but fund level. TAPPER MADE A MOTION TO TABLE ACTION UNTIL THE AUGUST REGULAR MEETING OF THE EDA. JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -1 WITH PERRAULT VOTING AGAINST. 12. Consideration of Director's Report Jim Thares stated he learned of a 200,000 square foot warehouse distribution center and requested direction from the EDA for a site proposal. Angela Schumann stated that based on previous strategic planning sessions and Industrial and Economic Development Committee meetings have been geared towards manufacturing and the uses of the manufacturing park to include job creation, high/livable wages, and precision manufacturers. Jeff O'Neill encouraged the EDA to consider a vision for the amount of land available and the momentum for precision machining. The general comments of the EDA were to pursue the warehouse distribution center. 13. Consideration of recessing to closed session to develop or consider offers or counteroffers for the purchase or sale of real oR personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3) TAPPER MOTIONED TO MOVE TO RECESS TO CLOSED SESSION TO DEVELOP OR CONSIDER COUNTEROFFERS FOR THE PURCHASE OR SALE OF REAL OF PERSONAL PROPERTY PURSUANT TO MINNESOTA STATUTE 13D.05, SUBDIVISION 2(C)(3). PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. 14. Adiourn closed session 15. Adiourn AFTER RETURNING TO THE REGULAR MEETING FROM THE CLOSED SESSION, JOHNSON MOTIONED TO ADJOURN THE REGULAR MEETING AT 8:18. TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Jacob Thunander Approved: August 10th, 2016 Attest: Jim Thares, Economic Development Director EDA Agenda: 8/10/16 5. Consideration of approving payment of bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: Motion to approve payment of bills through July 2016. 2. Motion to approve payment of bills through July 2016 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #l. D. SUPPORTING DATA: A. Accounts Payable Summary Statements z 0 a C O O V] O O O O O N N O O O O O 00 00 M O M O 10 Iz, O �D O O O O N O O in in O O J C O O O O O O O O N N ON 7 M 77� 'n� 7 �' r � r r 't r -t O O O O O O O O I--I ❑ I-, ❑ ❑ I-I 5 +tC+ O y _ t i ❑ t F4 y bn v y y � bU bU o C] oU r r � � U z z z a w w H a a cc cc 7A xx H � w w H WW o a zz U x x z x ti a s a U N � N y O O N ti O O � L Sy O O O O O O p p N N V] C N N 0 z l— O, O O O O O O �' O O O M — 7 � •--i �n � � — — O O M N N N O W O C1 M W Z ,--. 00 m O` N � O O` O V 10 O1 'T O1 'T �. N O O O O O O V' N N N N N 01 N M J'• O ti ti � � cs v'� .z N N vi 1077�10Im N-� � - n r ry 71 a F \D \D M N m l— O, O O O O O O M N O O O O O O O O N N N N N 7N N � rl cs v'� .z N N vi 1077�10Im N-� � - n r ry 71 a F I—I ❑ ❑ I—I ❑ i/] 4 y O O O O a0 C C y C 0. rq q N N N N N N M N ZD Cli Cli xx w w � w w U U c N N N � T T Q � v, > — O O O O O o 0,Zt O Q O O 1n 10 Ic _ O N N t N q tq rq � � 00 ca ca N N cV cV cV N fl - N H 0 N m CAMPBELL KNUT ON Professional Association Attorneys at Law Federal Tax I.D. #41-1662130 Grand Oak Office Center 1 660 Blue Gentian road, Suite 290 Eagan, Minnesota 55121 (651 ) 452-5000 City of MoritiGello City Hall 505 Walnut Street Monticello MIN 55352 RE: ADMINiST✓ A ION SERVICES RENDERED TO DATE: Page; 1 May 31, 2016 Account # 23 8-DOOG 166 HOURS 05/0212016 JJJ Review and forward Kiellberg case to Jef and Bret. 0.50 75,00 k SMM Review correspondence re; code enforcemenL 0.30 45,00 Ct 0510312018 JJJ Finance - Revisal draft ATM [ease,, errails V Gyne. 0.50 75-00 JJJ Community Development - Email Ang�a re: helicopter landing license, insurance. 0,50 75,00 0510412016 JJJ Finance - Ernaim Wayne re: ATM lease, r<� 0,50 75.00 JJ -1 En -ails Dan B., cur side re: meeting to discuss acquisition- ,�_T 0.50 75,00 0511)612010 JJJ Meeting at Olty Hall with Wayne, Rachel and ,teff re: ArviglCTC proposals. r r y 3.50 525,00 0 510912 0 9 6 JJJ Review Cfty Council agenda rnatorials, staff emails, schedule. Z. ,, 1,00 150,00 JJJ Follow-up email lc JO re- privat !public parking issue. 0.50 75-00 JJJ Emails D. Beeson re: meeting, is ues- 0.50 75-00 Mar 0511912096 JJJ Community Development - Emails h and Angela ra: 0� Clear Creek amendment of covenants. •#,0 0,50 75.00 05/1612016 JJJ Community Daveiopmenl - Ernails Angela re: Development Ag re e me nt/CUP s - School Districl-0 0,50 75.00 2M I I�S City of Monticello RE' ADMINISTRATION SERVICES RENDERED TO DATE: Page, 2 May 81, 2015 Account # 2348-O00G 165 HOURS JJJ Ccmmunily Development - EmaiIs, ArigeIa, rev!evr Communily 8ignagefTempora ry Signage Amendment, #allow -ups. 1CR410 M - 4 0D 1.04 150.00 0511712016 JJJ Communily Development - Ernails Marc and Angela, review closing documents for Phase 9 and 0 purchase of BCQL. Y.�Q Ir }'!n f 0.50 75,00 05118/2016 JJJ Community Development - Emails Angela, review City ounci l rnemu re; heIicopterG CAIGRE license-cl�q 0,50 75,0D 0511812016 JJJ Oommuni4y Developnient - Ernaft Angela, review and revise draft GRE helicapter License. + � �� 016- 1,00 150,00 05/23120'!6 JJM Review standard operation procedures fgr Inspection of massage enterprises, 0.60 00-00 el JJJ Emaiia staff, review schedule and projeot list, y� 0.50 78.00 JJJ Finance - Emails Wayne re' public works, chipp[og requests billing issue, '`r 0.50 75,00 0612412015 JJJ OomrnunIty Devolopment - Ernalls Angela re: GOr GRE, helicopter, 6A 1151&1 w 0.50 75.00 0612512016 JFK( Loan - Rpvi ew email of A. Schumann re. 6sti3faction of Mortgage and respond. PVA (-TYa- rk4�- &n) bl"ke 0.20 30-00 7,(1 A*� I . •�-3o� D5126120'16 JJJ Meeting with Mayor, Bret, D. Beeson an churc representatives re: St. Henry's. , -� � 2-00 300.00 D512712016 JJJ Voicemail and response to Jeff re: projects, data request. � 0.50 75-00 AMOUNT DUE 17.10 2,565.00 TOTAL CURRENT WORK 2,565.00 PREVIOUS BALANCE $3,645,00 0512612016 Payment - thank your -3,645-00 TOTAL AMQUNT DUE $2,565,00 -r 2-ov) Lr f (EJ. (--� [ L4,2w-14LO bo w. -�� [SSCP. 49 nQ.'q56LW *---I t --D - ou *� j5 -b. L5D -�* co Monticello EDA May 31, 2016 MN325-00030 Page: 1 Kennedy & Craven, Chartered 200 South Sixth Street, Suite 470 Minneapolis., MN 55402 Dahlheimer Property Conveyance �r' Through May 31, 2018 For All Legal Services As Fallows, a Hours Amount 514/2016 MNi Email and voicemail correspondence with A Schumann 0.30 57:00 regarding title matters for Dahlheimer. 5/412016 MEUI Phone conversation with developer's attorney regarding 0.80 152,00 contract and title issues; revise P&D contract. 5/512016 MNI :Finalize approval draft of Clear Creek contract for 5110 070 133.00 EDA meeting, 5/11/2016 MNI Clear Creek conveyance - review proposed amendment to 1,50 286.00 restrictive covenants; :phone conversation with developer's counsel; phone conversation with city attorney regarding same. 511112016 C13K Interoffice conference with'M Ingram 0.25 31.7:5 5/12/2016 MNI Phone conversation with J Thares regarding execution and 1.60 304,Q0 next steps for P&D contract; create :execution copy. 5/1612016 C B P Review emails and documents 0;25 $1.75 5115/2016 MNI Voicemail :and email correspondence with J Thares 0.20 38.00 regarding questions on amendment to restrictive covenants for Otter Creek, 511812016 MN'I Monticello .Clear Creek eovenants;amondmertt question.; 0;70 133.00 office conference with C Rocklitz regardsng closing, 5116/2016 CBR Interoffice conference; letter to CP Title.; emalls with 0.75 95,25 Buyer's attorney; copy documents 5119/2016 MNI Email and phone discussion with tit€e company and EDA, 0,60 114.00 developer regarding .closing matters including earnest money check (made out to wrong entity). 5123/20/6 M'NI. Clear Creek title commitment review and title matters/ 1.110 209.00 5123/20/6 CDR Emalls regarding commitment and earnest money; draft 0.25 document; review contract Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 Monticello EDA May 31, 2016 5/24/2016 CBR Letter to CP Title with replacement check; letter to developer; emails Total Services For All Disbursements As Follows: 5/23/2016 American Office Products - Tabs Total Disbursements: 0.75 95,25 $ 1,710.75 4.80 4.80 Total Services and Disbursements: $ 1,715.55 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612)337-9300 41-1225694 June 17, 2016 Statement No. 131946 Monticello EDA 505 Walnut Ave, Suite 1 Monticello, MN 55362 Through May 31, 2016 MN325-00030 Dahlheimer Property Conveyance 1,715.55 Total Current Billing: 1,715.55 declare, under penalty of law, that this account, claim or demand is just and corXect and that no part of it has been paid. nature of Page: 1 Kennedy & Graven., Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 City of Monticello May 31, 2016 MN190-00101 General EDA Matters Through May 31, 2016 For All Legal Services As Follows; Hours Amount 46VI-4"50 +00 --�-511612016 MNI Monthly finance call with city and EISA staff,Northland, 1.00 190.00 51191201.6 MNI Review Contract and TIF Plan for Master's Fifth, email 1,20 228;00 memo regarding:Master's Fifth and decertification date for TIF 1-22 to EDA:and City staff. Total Services: $ 418.00 Total 5ervlees and Disbursements: $ 418.00 ,+307` 213��22 Northland Securities, Inc. 45 South 7th Street -Suite 2004 Minneapolis, MN 55402-1.6.25 USA Vold: 612--851-5900 )~ax.: 512-851-5.951 Sold To: City of Monticello Angela Schumann 505 Walnut Street Monticello, MN 55362 a NORTHLAND SECURITIES I11voice Invoice Number: 44.93 Invoice Date: 6/9/16 Page; 1 Customerpo Payment Terins :Sales Rep 1D Diie Dato�� TIF Management. Plan Net 30 Days °D.escriptlon Amount [,,or :services related to TIF Managomen.t Plan Update. 2,:040.00 Please see :enclosed detail. ,JINN 1 3 Subtotal 2 , 040 . 00 SalesTzix Total Invoice Amount 2,040. 60 Check Na': l'ayrrient Received TOTAL I oPtl�Janal Securities, I�u. �kS:Ssiatlt 7th'Street Suite 20Qi1, ilRinncnpolis, ilfN 5.5402 'wi Free J:-.80:0-851-2920 zwie .612-851-5900 % 612-a51-.5987 urtiY �t'; tin i.tt a ucls e c u r q es; co to Member 'FINRA:ard :SiPC NORTELAND STRATEGIES Sp,�eia€ l�ro.j.Qcts GroUsp. INVOICE SUPPLEMENT Client: City of Monticello Project: TO Management Plan Update Contact: Angela Schumann City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55062 Billing Period: May 2016 Services Performed • Collection .of documentation from files at city hail • Update amortization schedules for TIF notes • Review of prior year financial performance since 2012 by district Staff.Tixne Nsitiort Hours Rate Billable Senior Professional 12.00 $170 $2,040.00 Professional - '$135 MOO Support - $105 $0.00 Total Staff 12.002,a40:aa Expenses Mileage $0.00 Printing $0.00 Other $0,00 Total Expenses` ?J..1 Q' $0.00 lUial.This Period �:. �:101 $x,C140:0[f Project Summary Total Budget* $ 7,000.00 Billed: This Period ($2;040.00) Billed Previous ($850.00) budget Remaining $ 4,110.00 Northland Securities, Inc. Paget of 2 CHECK REQUEST CHECK AMOUNT: Off"► A • Jo _ REQUEST DATE: —It/ 1 /o Check to: Harry T. Lantto 907 — 2°' Ave S Buffalo, MN 55313 Meetinp_ Worked: Planning Commission EDA Meeting City Council City Council Total Due: Vendor # Date WTime d1. Amount Due o. Date q Time S Amount Due Q �� Date l0 15 Time . ZS Amount Due o� •� d Date �Z7[(6 Time 7s Amount Due 6, 0 Planning Commission: ��. � f�tlC3. ji`"i`7C� �y- 00 EDA 'afl.. 4p'Zo1 • L43e jC) _ City Council I01. y I ! to. q?) V1 ` () Authorized by: *Uk Vj TIME SHEETS ATTACHED Date lo 7tr I MONTICELLO COMMUNITY CENTER TIME SHEET Employee Name HARRY LANTTO Position PUBLIC MEETING RECORDER - CONTRACT DATE TIIi'�iE IN TIME OUT Hours Worked Meeting t) Meetin$z Payment $60 for first 3 fours Agreement: $10 per hour for every Hour after MEETING RECORDER: H rry T. Lantto SIGNATURE: DATE: 6%1///.-, _ AUTHORIZED BY: 1 DATE; 2016 EMPLOYEE REIMBURSEMENT VOUCHER CITY OF MONTICELLO (Effective 1/1/16) NAME �� nv�► 'xl c� n'�`'P1 �� DATE OF REQUEST 9 Co -44 Z.at� Address to Mail (if necessary) {�,%,L C� , w • Al lV PURPOSE/DATE, �D` �P _ SUMZ LOCATION EXPENSES: (Please reference Travel and Reimbursement Police) Mileage ($.54 per mile) ZZ` (Total inilea�____ , A city vehicle was not available Travelingdirectionwarranted personal vehicle use. Traveling conditions warranted personal vehicle use.� Other Parking Fee Meals Lodging SUBTOTAL Other Description SIGNED � 40 (include dated, itemized receipts) (include dated, itemized hotel bill) A.ccouiit Niimber,-13 , `11 S:Ift� .433100 Account TOT.AI. TO PAS' 109 "W IAS I NOTE: `'`Attach copies of documentation, including invoices, receipts, seminar certificate, etc. DATE MILES WHERE TRAVELED Zm7 ^tie u C c�.c� ��► r#'j two YOUR TRIP TO: MCIDC 250 Canal Park Dr 2 HR 26 MIN ( 143.E MI IR Trip time based on traffic conditions as of 3:16 PM on June 28, 2016. Current Traffic: Light 1. Start out going south on Oakcrest Ct toward Oakcrest Dr. Then 0.04 miles 0.04 total mile. 2. Turn left onto Oakcrest Dr. Then 0.08 miles _ _ _ _ 0.11 total mile. 3. Take the 1 st left onto Oakcrest Ln, If you reach the end of Oakcrest Dr you've gone a little too far, Then 0.10 miles + 4. Take the 1st right onto 10th 5t NE. If you are on Garden Brook Dr and reach Brook Ct you've gone about 0.1 miles too fa r. 0.21 total mile: Thon 0.32 miles -------- _----- ... _ .. .:.-.... _......::...:..:. ..:..:::...:. ::.: :..:.::. 0.53 total mile. + 5. Take the 1st right onto Mayhew Lake Rd NE/County Hwy -1. Continue to follow Mayhew Lake Rd NE. Mayhew Lake Rd NE is 0.1 miles past Hillside Rd. If you are on 10th St NE and reach Quebecor Rd NE you've gone about 0.6 miles too far. _.._ Then0.57miles----._,._-..-_._______---._.-__-_.__-.---------- 1.10tota-(mile: 6. Take the 2nd left onto Highway 23 EIMN-23. Continue to follow MN -23. MN -23 is just past County Road 75.. If you reach Front St NE you've gone a little too far. _.._ Then 45.71 miles _____-__._------- --------------------------------------- — - 46.81 total mile: 7. Turn left onto Highway 65 SIMN-651MN-23. Highway 65 S is just past Frontage Rd. --- Then 1.62 miles ------------------------------------------ ___----- 48.43 total mile. + 8. Turn right onto Forest Ave EIMN-23. Continue to follow MN -23. MN -23 is 0.4 miles past Clark 5t. Then 17.56 mites 65.99 total mile: 9. Stay straight to go onto MN-361/County Hwy-61/State Highway 23, Then 0.16 miles 66.15 total mile: 4T 10, Merge onto 1-35 N via the ramp on the left toward MN -23 E. If you reach Tie Rd you've gone about 0.6 miles too far. Then 76.16 miles _ 142.31 total mile. %IT 11. Take the 5th Ave W exit, EXIT 256B, toward lake Ave, Then 0.20 mi€es - 142.51 total mile: 12. Keep straight to take the Lake Ave ramp. IP Then 0.07 miles 142.57 total mile: W!, 13. Keep right to take the Lake Ave NlLake Ave S ramp. 71 ___.. Then 0.19 miles ----------- ... 142.76 total mile. 14. Merge onto S Lake Ave. Then 0.18 miles ---------- ----- .__-_.,- . -- _-.._ ___ ._..-_____ 142.94 total mile: 15. Turn right to stay on S Lake Ave. Then 0.12 miles _ 143.06 total mile p� 16. Make a U-turn at Railroad St onto Canal Park Dr. �• I If you reach Buchanan St you've gone about 0.2 miles too far. Then 0.01 miles _.. 143.07 total mile. 17. 250 Canal Park Dr, Duluth, MN 55802-2314, 250 CANAL PARK DR is on the " right. se of directions and maps is subject to our Terms of Use. We don't guarantee accuracy, route conditions or usability. You assume all risk of use. arEconomic Development Association of Minnesota #EDAMDULUTH 1000 Westgate Drive, Ste. 252, St. Paul, MN 55114 E[OROmlc Development Phone: (651)290-6296 I. Pax: (650290-2266 1 Website; www.ed2m.org Prairie Vilest Pay-as-you-go balarice District=20 GC Payment to: Linda Smith {Not Riverwood Bank) Original Amount 65,000,00 213-46520-465110 Interest Rate 8,500% Payments Commence 811199 Ending no Later Than 811116 Available TIF 40,00% Correct Available TIF 36.00% State assessed fee No - county rernitllanGe represents whole district Fix rate to 36.01M 8 adjust rotinc+omw 9+1+18 vwowr po w vn 7f18.+15 increment Total Balance Dale Received Principal Interest Payment Rernainin 1213111998 -6,602.00 -6.6D2.00 71,602-00 1213111999 -6,216.00 -6,216,00 77,818.00 712 00D 3,902,00 2,853,00 -1,049.00 81,720,00 111112001 1,637,00 1,637.00 81,720.00 712612001 -1,981.00 3,408.01) 1,425.00 83,701.00 111512402 2,039,00 2,039.00 63,701.00 711642002 -2,236.00 2,904,00 658,00 85,937.00 1114/2003 284.00 2,030.00 2,314,00 85,653,DD 712442003 -1,338.01) 3,993,00 2,655.00 86,991.00 112M }4 418.40 2,569,00 2,987,00 86,573.00 712242004 -710,00 4,145,00 3,435.00 67,283.00 112012005 152.00 3,709.00 3,861.00 97.131.00 742112005 190.00 3,704.00 3,884.00 86,941,00 141912006 155.00 3,695.00 3,850.00 86,786,00 7120421)08 1.597.1)0 3,688.00 5,285.00 85,189.00 111842007 220.00 3,620.01) 3,810,00 84,969.00 711912007 757.00 3,611.00 4,388.01) 64,212.00 112MOO8 27.00 3,579,00 3,96.06 84,185.00 81112008 922,00 3,856.00 4,778.00 83,263.00 11,912DD9 11,941_00 1,237.72 3,538,68 4,776.40 82,025.28 EV112009 11,957.96 1,301.11 3486,07 4,787,18 80,724.17 11112010 10,824.35 898.96 3,430.78 4,329,74 79.825,20 81112010 11,994.18 1,405.10 3,392,57 4,797.67 78,420.10 11112011 9.950,66 647.41 3.332.85 3,984,26 77,772.69 81112011 10,435.67 868.83 3,305.34 4,17427 75,903,77 11112012 8,623.41 100.95 3,9%41 3,44$_36 76,722.81 91112012 8,288,08 54.51 3,260.72 3,315,23 76,668,30 141!2013 9,649.85 501.54 3,258.40 3,859.94 76,066.76 81112013 9,308.00 480,36 3,232,84 3,723-20 75,576.417 11142014 6,100,49 -1,015.82 3,212.DD 2.196,19 76,592.22 81142014 10,357.58 473,56 3,255,17 3,728.73 75,118.66 111!2016 5,714.45 -1,177.84 3,235,04 2,057.20 77,296.50 81112015 11,022.27 682.92 3,285.10 3,868,02 76,613.58 11112016 5,150.78 -1,041,80 3,256.06 2,21428 77,655,38 81112916 11,2B8-11 763.37 3, 300, 35 � 4,093.72 J 76,892.02 { 11112017 5,946.96 -1,127.00 3,267,01 2,140,91 78,019.01 B1112017 5,946.98 -1.174.9n 3,315.81 2,140.91 79,193.91 14112018 5,846,98 -1,224,53 3,365.74 2,140.91 80,418.74 81112018 5,545.9$ -1,276,88 3,417,80 2,140.91 81,695.62 Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 56402 City of Monticello May 31, 2016 MN190-00147 Block 34 TIF District Through 'May 31, 2016 For All Legal Services As Follows: Hours Amount 5/912016 MNI Research question regarding Mn'Dot desire for order rather 0;60 114.00 than deed for right-of-way conveyance. 5/11/2016 MNI Phone conversation with A Schumann regarding 0.20 38.00 preference for deed conveying property to MnDOT. Total Services: $ 1:62.00 00rotal Services and Disbursements: $ 152.00 JUN 2 2 2016 Page: 1 Kennedy & Graven., Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 City of Monticello May 31, 2016 MN190-00101 General EDA Matters Through May 31, 2016 For All Legal Services As Follows; Hours Amount 46VI-4"50 +00 --�-511612016 MNI Monthly finance call with city and EISA staff,Northland, 1.00 190.00 51191201.6 MNI Review Contract and TIF Plan for Master's Fifth, email 1,20 228;00 memo regarding:Master's Fifth and decertification date for TIF 1-22 to EDA:and City staff. Total Services: $ 418.00 Total 5ervlees and Disbursements: $ 418.00 ,+307` 213��22 Bt. Bens f Pay-as-you-go District; � Payment to: t. Olvu ospital 213-46524-466110 Original Amount 440,000,00 Interest Rate 8.000% Payments Commence 8/1101 Ending on Later Than 211126 Available TIF 90.000% ta#at assessed fee 0.0038 Increment Total Mama Date Received Principal Interest Payment Remaining 7/28/2001 23,597,00 17,433,00 41,030.00 416,403.00 1111 UU2 24,374.00 96,656,00 41,030.00 392,029.00 712512002 16,772.00 15,521.00 32,293.00 375,257.00 111412003 17,283.00 15,410.00 32,293.00 357,974.00 712412003 13,919.00 14,351.00 28,270.00 344,055.00 1/2312004 14,508.00 13,762.00 28,270,00 329,547,00 7MOO4 (73,00) 11,083,00 11,010.00 329,620,00 1213112005 5,140.00 13,185,00 18,325.00 324,480.00 1119MOOB 0-00 3,6-a5,00 3,G65.00 324,400.00 712012006 8,609,00 12,979.00 21,588.00 315,871.00 1213112005 5,355,00 12, 35,00 17,990,00 310.515.00 1/18/2007 21,588.00 13,365,00 34,953,00 288,928.00 7119/2007 8,635,00 12,421.00 21,056.00 280,293.00 713112007 8,900.00 12,166,00 21,056.00 271,393.00 112812008 9,256.00 11,800.00 21,055,00 262,138.00 8/112008 11,409,00 11,151.00 22,560.00 250,729,00 1!912008 25,067.OD 12,531.14 10,029,16 22,560.30 238,197,86 81112009 26,930,11 14,709.18 9,527.91 24,237.10 223,488.68 111!2010 211,'30,11 15,297.55 8,1139.55 24,237,10 208,191.12 8/112010 24,078.90 13.343,37 -8,327.64 21,671.01 194,847.76 11112011 24,078.91 13,877.11 7,793.91 21 ,671.02 180.970.65 811/2011 23,511,43 13,921.46 7,238.83 21 ,160,29 167,049.19 111/2012 23,511.43 14,478.32 6,681.97 21,160.29 152,570.87 81112012 23,886.05 'f5,3T5.62 5,702,53 21,479.45 137,194.25 1/112013 23,866.05 15,991.68 5,487.77 21,479.45 12'1,202.57 81112013 23,269.63 16,094,61 4,M8.10 20,942,71 105,107,97 111/2014 23,269.68 16,738.39 4,204,32 20,942.71 88,369.57 81112014 23,866.05 17,944.67 3,534.78 21,479.45 70,424.90 V112015 23,866.06 18,662.46 2,817.00 21,479,45 51,762.44 81112015 19,747-24 15,702.02 2, 070.50 17, 772.52 36.060.43 11112015 811/2016 19,747.21 20,816,86 18,330.10 19,730.33 9,442.42 17,772.82 19,730,33 7 789,21 X18.736,17 0.00 Front Porch Assoc. Pay-as-you-go District,. 29, Payment to; Michae w, PO Bax 1338, Monticello MN 55362 Original Amount 220,000.00 21346529-465110 Interest Rate 7,250% Payments Commence 811104 Ending on Later Than 211120 Available TIF 80,000% State assessed fee No - county remittan ce represents whole district I f '71 Increment T4W1 Balance Date Received Principal lnteri�st Payment Remaining 712212004 (4,110.00) 3,366.00 (245.00) 224,110.00 1/20!2005 (5,734,00) 2,390.00 (3,344.00) 229.844.00 712112005 1.052-00 8,332,00 9,384,00 228,792,00 111912006 (1,362.00) (3,932,00 5,570.00 230,154,00 7)2012006 3,614.00 8,343.00 11,957.00 226,540.00 1/1812007 2,688,00 8,212.00 10,900,00 223,852.00 711922007 6,240,00 8,115,00 13,365,00 218,612,00 112812008 1,452.00 7,925.00 9,377.00 217,180.00 8!1!2008 3,628.00 7,872,00 11,509.00 213,531.00 11112009 18,949.00 7,418.70 7,740.50 16.159.20 206,192.30 81112009 95,390,-.5 4,840,71 7,471.57 12,312.26 201,271.59 111/2010 14,460_E4 4,272,42 7,296.90 11,568.51 196,999.17 81112010 13,081.79 3,324.21 7,141,22 10,465.43 193,674,96 1112011 13,081.74 3,444.67 7,020.72 10,465.39 190,230,29 81112011 12,064,21 2,765.52 6,895.85 9,651.37 187,474.77 11112012 12,054.8$ 2,647,94 6,795,96 9,843,90 184,626.82 811/2012 11,134.04 2,214.51 6,692,72 8,907,23 182,412,31 11112013 12,602,74 3,469.75 6,612,45 10,082.19 178,942.57 81112013 8,W2.93 CW.68 6,4185,67 7,185.34 178,242.89 11112014 8,982.93 725.04 61,461.30 7,186.34 177,517,85 811/2014 10,038.83 1,596,04 6,435,02 8,031.06 175,921.81 111/2015 10,581.16 2,087.76 6,377,17 8,464.93 173,834.05 8/112015 11,406,13 2,823.42 6,301.48 9.124.90 171,010.63 1/112016 9,670,49 1,537.26 6,199.14 7,736.39 169473.37 81112096 12,552.81 3,898.84 6,143,41 X10,042,25 165,574,53 11112017 10,118.44 2,092.64 8,002.08 6,084.72 163,481.88 8//12017 10,118,40 2,168,50 5,928.22 8,094.72 181,313.39 11112018 10,118.40 2,247,11 5,847.61 8,094,72 159,066,28 81712018 10,118.40 2,328.87 5,766,15 8,094,72 '56,737,71 1/1/2019 10,118,40 2,412.98 5,681.74 8,084.72 ;54,324.73 I f '71 Cub Pay-as-you-go blalani�a District' 221 ,,,\(5j\ Payment to; BBF Properties {Cub) Original Amount 500,000.00 213-46581-465110 Interest Rate 7.500° Payments Commence 111{00 Ending no Later Than 211120 Available TIF 90. Do% .PID 155.076.001010 State assessed Fee 0.0036 InGrernent Total Balance Date RgQgjVQd Principal Interest Payment Renining 11112000 0.00 500,000.40 $1112000 (30,808.00) 6,692.00 (24,116.00) 530,80B.00 9{1{2001 (13,79$.00} 6,192.04 (7,527.00) 5214,521.{}{) 8!112001 (7,945,DD) 12,574,00 4,729.00 552.366.00 111{2002 (8,138.00) 12,57-d,00 4,435.00 560,505.00 81112002 (21,019.00) 12,00 (21,007,00) 58',624,00 111 X003 (21, 807.00) 0.00 (21,807-00) 603.337 , 00 81112003 (20,DB3,00) 2,562.00 (17,501.00) 523.394.00 111{2004 (20,915,00) 2,%6.00 (18.253.00) 641-209,00 811{2004 (20,401.00) 3,757,00 (16,644,00) 661,610.00 11112005 (21.1AR nn) _3,757 CO (17.409. DO) 685, 770.00 $11 f2005 (20,599.00) 5,112.00 (15,451,00) 706,375,00 1{1{2006 (21,371.00) 5,118.00 (16,253.00) 727,746.00 81112006 (20,522.00) 6,758.00 (13.764.00) 741:,268.00 11112007 (21,292,00) 6,768.00 (14,524.00} 760,560.00 81112007 (20.221.00) 9,637.00 (11, 684, OD) 788, 781, 00 11280008 (20,981,00) 8,82GOQ 1 ,3dS.84 810,762.W ${712008 (3.175.00} 27,228.00 24,053.04 813,-D37,00 1IW2009 29,697.00 (26,295.00) 4,227.00 4.227.30 840,132.00 81112009 31,728.16 (31,508_70) 6,055.34 6,055.34 871.740.70 11112010 31,728.15 (32,690.28) 28,55534 28,555.34 904,430.98 $11 f2010 32,032.69 (33,916.16) 2$.82942 28,829.42 939,347.14 11112011 82,032.69 (35,188.02) 28,629.42 28,629,42 973,53516 $11{2411 28,491.17 (36,507.57) 25,542.05 25,642.05 1,010.042.72 111{2012 28,49117 (37,676.60) 25,8.42.45 25,642.05 1.047,919.33 81112012 29,338,51 (39,296,97) 26,404.66 26,444.66 1,487,218.30 U 2013 29,338.51 (40,770.81) 26,404,66 26,404.66 1,127,986.91 51112013 2.9.241.80 (42.2W.51) 25.417, i i 25,41 T. I T 7,170.286.42 11112014 28,241.30 (43,885.74) 25,417.17 25.417,17 1,214.172.16 8I1i2014 29,227,51 (45,531.46) 26,304.7$ 26,304.75 1,259,703.62 VV201 b 29, 227, 51 (47, 238.89} 26,304.75 26,304.75 1, 3DG.942.50 Bf f 120I5 23, 258.47 (49, 010.34) 20, 932,26 20,932.26 1, 355,952.85 IW2016 23,258.07 (50,848.23) 20,932.26 20,932.26 1,406,801,08 81'1X2016 22,121.46 (52,755.04) 19,90931 -.;) 19,909,31 1,459,556.12 11112017 22,121.46 (54,733.35} 19,809.31 19,W9.31 1,514,269 47 8f 1!2417 22,121,46 (56.7a5.86) 19, 909.31 19,909.31 1,571,D7!5-33 11112018 22,121.46 (58,915.32) 19,909.3-1 19,909,31 1,829,990,65 81112018 22,721,46 (61,124.65) 19,909_31 19,909.31 1,691,115.30 11112419 22,121,46 (63,416.62) 19,909.31 19,909.31 1,754,532,13 8/112019 22,121,46 (65, 794, 95) 19,909.31 19,909.31 1, 00, 327.08 111f2020 22,121.46 (66,262,27) 19,909,31 19,909.31 1,888,589.3$ Landmark Square phase Pay-as-you-go bla lance District= E Payment to; ) formerly plaster's Fifth Avenue Original Amount 185,000.00 213-46585-4,66110 Intereg NfW 8.000% Payments Commence 811103 Ending no Later Than 211/23 Avallabte TIF 80,00-010 PID 155.010.036130 a 155.010.036140 Mate assessecf fee 0.4036 Increment Total Balance. Date Reaeivk Principal Interest Payment Remaining 8111.2003 0.00 185,000.00 11112004 0.00 1$5, 000,00 811r2004 3,085.00 3,085.00 185,300.Do 11112005 3,064,00 3,0$4.00 186,700.00 81112005 6,393.00 6,393.00 165.040.00 1/112006 6,393,00 6.393 -OD 185,1000.00 8/142006 5,830.00 6,830,DD 185,DDD,OD 11112007 0,630,00 6,93000 1$5,0] .DD 81112007 90,00 7,400.00 7,490.00 184,10.00 112812008 94.00 7.396.00 7,490.00 184,$ 16-00 84112008 0,100,00 5.100,00 1$4,0'16,40 11912009 6,332.00 5,898.0 5,898.80 184,816.00 81112009 6,304.90 5,674.41 5,674,41 184,816,00 11112010 8,504.90 5,674.41 5.674.41 184,816,00 811 /2010 6.2W. 02 5, 639.42 5,639.42 184,816.00 7!112011 6,266,D2 5.639.42 5,639.42 184,816.00 8/112011 5,668.11 5,101.30 5,701,30 184,816.00 11112012 5,668.11 5101.30 5,101.30 164,a16.04 811/2012 5.835.67 5,252.10 5,22.10 784,8.16.00 111/2013 5, 835, 67 5,252. 1 D 5.252.10 184,816.00 81112D13 5,617.76 5,055,93 5,055.96 184,816.00 11112014 B,637.T5 5,055.% 5,055,98 1EA, 616.D0 8/112014 5.978.58 5,380.72 5,380,72 T84,816,00 T11r2015 5,978.5a 5,380,72 5,380.72 184,816.00 51712015 4,899.75 4,4%,78 4,40 .78 184,816.00 1/112016 4,899.75 4,409.78 4,409.78 164.516.00 8/1/2016 4,962.46 4,466,21 X4,466,21 184,816.D0 _ 11112017 4,962.46 4.466.21 4,466.21 181816,00 811/2017 4,962,46 4,4B6.21 4,466.21 184.816.00 11112018 4,962.46 4,466.21 4,466.21 184,816.00 8/112018 4,962.46 4,466.21 4,466,21 184,816.00 1/112019 4,882.46 4,466.21 4,466.21 184,816.00 81712019 4.962.46 4,456.21 4,466.21 184,8T6.00 111/2020 4,962.46 4,466,21 4,468,21 184,816.00 81112020 4,962,46 4,466.21 4,466,21 184,818,00 11112021 4,862.46 4,468.2' 4,466.21 984,816,00 81112021 4.962.46 4,4662' 4,466.21 184,696.00 11712072 4,962.46 41,466.2' 4,466.21 184,816.00 811/2022 4,962,46 4,466.21 4,466.21 164,816,00 11112D23 4,962.46 4,466,21 4,466.21 184,816.00 jto, % gi o .n I .n o I 0 O N N O O O [- [- O O O N N Ol Ol o �n �n o0 00 " O I 1� N I N o O M O O O 0. �H ^ Q '6 � O L1, O R y N � y O M N O N }) i- Q U o � O O gi o .n I .n o I 0 O N N O O O [- [- O O O N N Ol Ol o �n �n o0 00 " O I 1� N I N o O M O O O M M M N N N cS O O O N aD O O L1, O R Q O O O a� a� y El C0 O O y � y C y � W y O � O N w ca F :J z N w i O WW � Q W 0 0 0 z N � a a m m x O O O M M M N N N cS N aD c O O a� a� C0 a N O N N � i O Q ¢' Q p S.' N � a 00 H n A WS gowernmont - energ - commercial City of Monticelle A#tn; Wayne Oberg, Finance Director 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 701 Xenia Avenue South Suite 340 ,dune 2T, 2016 Minneapolis, MN 55416 Project No: 01494-720 Tet 1783] 541.4NU Invoice No: 35 Fax; Y1SAM Economic Development & Market Match"rng L Acct x#213.46301,431990 Profess ionaI Services f 01 201Bto M -------------------•--------- Phase 03 2016 Fee Total Fee 20,000.00 Percent Complete 100,00 Total Earned 20,000.00 Previous Fee Billing 1 R,Onn no Current Fee Billing 4,000.00 Total Fee 4,000.40 Total this Phase $4,000.00 T61AI this Invoice 54,808.88 Outstanding Invoices Invoke Number Date Balance 84 5/2612016 4,000.00 Total 4,000.00 Total Now Duet,*0 Comments: Approved by: Reviewed by., Bret'Neiss Protecl mianager: Breanne Rothstein Equ Al 0ppartinity Empioyer wsbung-cam A WS 701 Kenya Avernu{. South Suite 300 City of Monticello July 8, 20i6 Minneapolis, MN 55416 Attn: Wayne Oberg, Finance Director Project Ma'. 01494-940 Tel: PU 541-490 505 Walnut Street, Suite 1 IhV6iM kJ6, 16 Fsx i�631 54t-17oo Monticello, MN 55362-8831 Block 34 Enviroramen;al DOCUments CP No. BLK034 OL Acct #213,46301,431990 Professional Services kp.M May 1, 2016 to May 31, 201 Phase 7 Phase II ESA Prafessianal Personnel Hours Rate Amount Environmental Oocumeots Mueiler, David 37,25 79.00 2,942,75 Rangitsch, Daniel 6.00 85.00 510,00 Spencer, Ryan 2.00 98.00 196.Do ResearuhlData C-Alection Spencer, Ryan 1.00 98,00 98-D0 To#als 46.25 3,746-75 Tatar Labor 3,746.75 Consultants Other Consultants 513112016 Test America Laboratories, Invoice No, 31147;64 1,521.00 Inc. 513112016 Test Arnerica Laboratories, Invoice No. 20028212 740-00 InE. 513112016 Bergerson-Caswell. Inc. Invoice No. 21729 3,345.00 Total Consultants 5.606.00 5,606.00 Field Services Billing 1-Person Coring Crew 7 -25 Hcurs @ 1 G2.00 1,174.E Total Field Services 1,17k60 1,174.50 BI111601-11llts Current Prior To-Date Total Billings 10,527,25 392,00 14,919.25 Limit 14,467,00 Remaining 3,547,75 "total this Phase $10,527.25 wsheng.rom Project 01494-940 MONT - Block 34 Environmental DocumenIs Invdce 15 Reviewed by: Bret Weiss Prci-ed Manager; Ryan Spencer was gnVPfn I - energy - c9,711rr rCial 701 Xenia Ayerrue Sauth City of Monticello June 27 2016 Sults 300Minneapolis, SAN 55415 Attn: Wayne Oberg, Prrancs Director Projecl No: 01494-940' Tel: 17631541-4800 505 Walnut Street, Suite 1 Invoice No: 1$ Fax: 17631541.1700 Monticello, MN 553K-8831 Block 34 Environmental Docurnents CP No- 3L.K034 L Acct #213-46301.431990 Professional Services from Me 1 2016 It 31 201 , Phase 7 �aso11ESA -- --�--- Professional Personnial Consultants Hours Rate Environmental Documents Jnc- 5/3112016 Mueller, David W0120f 6 1.00 79.00 Muelier, David 511112018 1-00 79.00 Mueller, David 511312018 3-50 79-00 Mueller, David 511612016 1.50 79.00 Mueller, David 5!1712016 3.00 79.00 Muller, David 5118l2O1$ 10-75 79-00 Mueller, David 611912016 8.25 79-00 Mueller, David 5120/2016 3,00 79,00 Mueller, David 512512016 2.25 79.00 Mueller, David 5131120'iB 3-00 79-00 Rangitsch, Daniel 511712016 1-00 85-00 Rangitsch, Dariel 5118/2016 4.50 85.00 Ingitsch, Dariel 512512016 .50 85,00 Spencer, Ryan 5M7120113 1.00 98.00 Spencer, Ryan 5/1812016 1-00 98.00 ReSearch/sato Cc)lleGtl017 Spencer, Ryan 513112016 1.00 98.00 Totals 46-25 Total Labor Consultants Other Consultants 5131 {2016 Test Arneriva Laboratories, Jnc- 5/3112016 Test America Laboratories, Inc. 513112016 l ergerson-Caswell, Inc - Total Consultants Field Services Billing '-Person CoHrig Crew Total Field Services 79,00 79.00 276-50 118-50 237,00 849,25 651.75 237.00 177,75 237-00 85-00 382.50 42.50 98.00 98-00 98-00 3,746.75 Invoice No. 31147364 1,521.00 Invoice No- 20028212 74000 3,746,75 Invoice No. 21729 3,345.00 5,606,400 5,606,00 7.25 Hours @ 162-00 1,174-60 1,174.50 1,174.50 Total this phase $10,527.25 Equal Opportunity Employer wsbeng.cnrn Total this Invoice $10,527.25 �l! Project 01494-540 MCNT - Block 04 Environmental Documents invcice 16 Outstanding Invoices Invoice Number date Balance 15 5!2612016 092.00 Total 392.00 Total Now Due $10,999.25 Billings to Date UMMOMS: Approved by " lx� - Reviewed by: Rret Weiss Projed Manngpr- Ryan qppnr.P.r Pair 2 Current Prior Total Labor 3.746,75 44.446-50 48,193.25 Consultant 5,606-00 9,136.50 14,742.50 Expense 0,00 2,076.49 2,076.49 Field Services 1,174,55 0,00 1,174.50 Totals 10,527.75 55,659.49 56,986.74 UMMOMS: Approved by " lx� - Reviewed by: Rret Weiss Projed Manngpr- Ryan qppnr.P.r Pair 2 ki i. B��Y0.1SON- CSTWELL, INC. . WELL DRILLING AND PUMP ,. 5116 Industrial Street Maple Plain LIN .55369 - I PH 7fA-s79 3121 FX- 763-479-2183 II TOO VVSB & Associates, inc. 701 Xenia Avenue Suite 300 Minneapolis, MN 5541 J_. . 21729 .lots 35637E -Block 34 -Probes 136 Sraodway E, 148 Broadway E 119 3rd Street E Monticello, MN 55352 — -- -- Net -30 5/31/2016 �. ORDER: 16093 DESCRIPTION: Probes �ra�ect � 4�4�1 � �� Phase # —fr Accounting U52: � RESOLUTIONJob935E37E ount Cude_C �Arm Attn� Ryan. /NSB Re: Soil probing of tern soil probes to various depths, Continuous soil sampling, collected one water sample per probe, grouted on completion. 1 LS M8hi1iza#i0n1Demnbilftti6r`I 400.00 1-5 DY Probe Frig and Operator 1550-00 2,025.00 { 80 FT Grouting 1 00 9RI71 nn 3 EA Temporary Well Permits 80.00 240.00 ' I LS Clear Pjblie Utilities 50.00 501.00 1 EA Private "Locate 350.00 50-00 " SALE AMOUNT * MEANS ITEM IS N01`11 -TAXABLE THANK YOU FOR YOU R BUSINESS! PAST DUE ACCOUNTS SUBJECT TO 1,5% FINANCE CHARGES PER MONTH PLUS ALL COLLECTION -COSTS- All OST - All PAW-,+nU pod by paper check will fes- . roar lyd io Images and the trarssclipn riiu be completed as an AGFt Tfe0!5a0liQn, 4lt1m 1pplirahle. Unlw!g Customer dolt ins Bargeman aswev not to pmcass Cusiom803 rhecres usrng the Ernag9 and AGH $Qlvic y, hCM IE@MS will be aonverled 10 Irnsges aeld prooassed ur," 9w A011 $erwl-�ces. �+ WPUTEREASEF0FR1SM1Wrj {niij 5}7�5�9+ cE-IPI1L -1%}16 'EgUal OEmployer mpll7 +oyer f eunt `aCtoy 3,345,00 3,345.#0 1494-940, Phase ro ect # Phase # Ryan Spencer 5/31/16 Aeoot,rkti ng use: TestAmen"ca ftco ntCodp A 1'Hl:LF4DERINENWRQNMENTAt.TES T1"G InveietfCredit No. 31147364 Invoice Dais May 27, 2016 Terms Ste Below federal Taa LD 23-2919996 Reknit to TestAmerica Laboratories Inc. PC) BOX 204290 Dallas TX 75320-4290 Bill to: WS8 & Associates, Inc Attn: Accounts Payable 701 Xenia Ave South Suite 344 Minneapolis, MN 55416 Ship to: WSB & Associates, Inr; 701 Xcn ia Ave South suite 340 Minneapolis, MN 554I6 P.O. Number W,O. Narober Contract Number Work Ordered by Purchase Order not required Ryan SpQncar Job Descriptio Site Name SDG Nuinher Invoice Contact See below 01494-944 R an S neer Job No, Job Deeri tionI Recei t Date Quantity Unit Price Amount MethadiTest Desert tion J31 ] 06-I Block 34 Phase 11 - LMonticcllo, MN 05CII2016 7470A - Mercury 6.40 1+4.00 94.04 8260E - Volatile Minncsota Subhot 6.04 55-04 330,QQ 9270D - Standard Stmivoiatiles List 3,04 154.04 450,00 WI -DRO- Wisconsin DRO 6.00 29-00 174.40 WI-GRO- Wisoonsin GRO 6.00 23.QQ 13$.44 6020A - Arsenic 6-00 8.00 48.04 6020A - Barium 6.40 8.00 48,00 6020A - Cadmium 6.40 8.00 48.00 6020A - Chromium 6.04 8.00 48.40 6020A - Lead 6.00 8.00 48.40 6020A - Seltniurn 6A0 UO 4g -raj 6020A - Silver 6.00 8.00 48-00 Safe and Env iron melttally Responsible Waste Management 6.04 1.50 9.04 (per sample) Pro ect Number Client Number Project Malo er Subiuta] 51,521.40 31002761 1446930 An era Muehiirtg Latest Sow1)le receipt Irate Latest Re ort Dnte Phone Number Total lil,52I.00 VJr I l LV 14 U�11 �11V 14 19 211-�4U 1 Tar p»pper credit, please include invoice number on aI1 remittance. Tes"merics Cedar Falls - 704 Enterprise Drive, retlAr falls, [A 54413 This ins -aim falis under TesL4merka Labaratorics Inc 5t31jdflrd TStC's of Not 30 Das unless su rcdcd 'e I of I Y lx by another valid contract aehicle i� place at the time these sere im w. -ere read Bred. 1494-40, Phase 07 �,3��1 i� Ryan per er Project#� ptose# 5-31-16 Use, [,A-m,:oLwnfing CU�1< .#� THE LERO ER IN ] �NVIR41rh1i=N TRL'rE9'r IM4 I"olcel relit No. 20028212 Invoice Date May 31, 2016 Tt�rrns See Below Federal Tax ID 23-2419996 Remit to TCAAmerlca Laboratories Inc- PO SOX 204290. DaJ las, TX 75320-4290 Bill to: A[tn; Accounts Payable 701 XenjaAve South Suite 300 Minneapolis, MN 55416 Ship to: WS13 & Associates, Inc 701 Xenia Ave South Suite 300 Minncapo:is, MN 55416 P.O. Number %V.O Yumhnr I (`nnr~ am N....,ka. i4'.,rl: fi rrlswsil h.. 1'=hOse Order not required - - Ryan Spencer Job Description Site [Mame SDG N umher Invoice C'nntact See below 200-33673-t )cyan Spencer Job No, Jab Deserl t[on Receipt Dntc Quantity Unit Prica Amount Method/Test D eq crip tion J33673-1 Block 34 03124120 10 TO -25 -1vfN MPGA List Safe and Environmentally Responsible Waste Management (Per sample) 4.00 0.00 185.40 0.04 740.00 0-00 Pro eet Number Client Number umber Project Mann ger I Subtotal 1 $740.00 20004924 1446930 Kathryn Kelly Laiest Sample R"pt ]Date Latest )Report ]Date Phone Numkber I TOM$790.00 u x L++rl-u I b U �i d I f1V 10 6L[1) 000.1 JUJU For proper 0r4Ait, please include invoice nurnber an alt remittance, TestArrerica Burlington - 30 Community Drive, Suite 11, South Bur[ington, VT 05403 This inw6m I'M Is under TcsWmerica Istwatories Inc. Swodard T&C s ANet 34 Das unless so crycdcd Page f of 1 Days p by anoctler valid ppntr$pt UBhiele In place a t she time these services wire rmdcred. Julie Cheney From: Angela Schumann Sent: Wednesday, July 20, 2016 9:17 AM To: Julie Cheney Cc: Jim Thares Subject: RE: WSB Invoice Ok to pay. Angela Schumann, AICP Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. From: Julie Cheney Sent: Tuesday, July 19, 2016 4:05 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: FW: WSB Invoice Importance: High Any update on this invoice for tomorrow? Can I enter as coded? Thanks Julie From: Julie Cheney Sent: Monday, July 18, 2016 12:02 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: FW: WSB Invoice Angela Following up on this revised WSB invoice. I would like to include it in the check run Wednesday morning. Thanks, Julie From: Julie Cheney Sent: Tuesday, July 12, 2016 2:33 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us>; Jeff O'Neill <Jeff.Oneill@ci.monticello.mn.us>; Wayne Oberg <Wayne.Oberg@ci.monticello.mn.us> Subject: WSB Invoice I am not sure where the WSB invoices are in the review process. 1 Attached is a revised invoice I received from them. The final amount is the same, but the line items have been revised. Please review and approve this revised invoice. Thanks ,Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us CITY Of mohticelio Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 Northland Securities, Inc, a Invoice 45 Sauth 7th Street NORTHLAND Suite 2000 Irrvoie Ilrlit�l�}r= Min�,eapOlis, MN 55402-1625 SE['llkrTiES Number, USA Voice: 612-851-5900 Fax, 612-851-5951 Sold 7-0{ Cfty of Monticeno Angela schumann 505 Walnut Street= McinCicel,lo, MN 55362 _ Customer Pry F Mgmt Flan Update Payment Terms -- �- - - Saies Rei ID~4- het 37 Days Description 4ervi $ rCiatea tc- T -TF MifL1;1 111g1an Update: ease Bee enclosed detail, j V t 11 2018 Invoice Date; 'x/11/16 1 Due Dale --� 9/10/Z6 Amount 2,890.00 i'No tal 2 , 8 90.0 ❑ Sales Tax Tota] In voice Amount 21890.41, Check o- PaYmenl Received TOTAI{ Maio 612 -Bi WO j To11-FWBC04351-2920 j Fax b22-851-5997 46 South ith Streck Suite 2000 1 Minneapolis, MN 55402 hlor IelmfsrTuLilhnsxcm I A4,- crF?NRRand.5+PC NORTHLAND STRATEGIC Sp9tiol Proj9G#S CarvVp INVOICE 5UPPLEx ENT Client: City of Monticello Project TIF Management Plan, Update Contact. Angela Schumann City of Monticello X1]5 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: lune 2416 Services Performed ■ Review district finandals and update financial plans • Prepare preliminary draft report Staff Time FCCjfj H urs Rat Biles. Cabe Senior Professional 17.00 $170 $2,890.00 Frofessionial - 5135 9.00 Support - $10.5 $0.00 Total Staff — — 17.00 $2,890.00 Expenses x1ileage Prin ting $0.00 Other O,UO Total Expenses $0.000A0 Total This Period SZ890.00 Project Summary Total Budget" Billed This Period $ 7,000.00 Billed Previous (990_) Budget remaining ($2,890.00) $ 1,22400 [Northland Securities, Inc Page 2 of 2 Julie Cheney From: Jim Thares Sent: Tuesday, July 19, 2016 8:16 AM To: Julie Cheney Subject: RE: Northland Securities Inv# 4560 $2,890.00 Morning Julie, this invoice looks fine. Code it to 213-46301-431990. Thanks. From: Julie Cheney Sent: Monday, July 18, 2016 11:58 AM To: Jim Thares Subject: FW: Northland Securities Inv# 4560 $2,890.00 Jim Following up on this invoice. Please submit by end of day Tuesday to be included in the check run Wednesday morning. Thanks Julie From: Julie Cheney Sent: Wednesday, July 13, 2016 2:42 PM To: Jim Thares<Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities Inv# 4560 $2,890.00 Jim Attached is Northland Securites Inv# 4560. Okay to pay $2,890.00? Please provide coding. Thanks, _Iulie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us CITY [i# Montkello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 1 gi N LE O 7t M N /r a 7 N ~ O o C O N C i O Q U o � a M V1 Z2 ca gi N LE O 7t M N a 7 N C O N C i O a M V1 M N N T � O 0 Q Q_ S C) y O 00 H 0 Vendor Date of Transaction �a CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ 14011 Circle purchaser name; Jeff O'Neill Jacob Thunander Angela Schumann Vicki Leerhoff Tracy Ergen Wayne Oberg Sarah Rathlisherger Jennifer Schreiber Jim Thares mp yee Signature Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41.800 101-41910 101-41920 101-41940 213-46500 213-46301 Circle expense code: City Council Administration Elections Finance Human Resources Planning and Zoning Data Processing City Hall Economic Devela ment HRA 421990 General Operating Supplies 431950 Newsletter Services 431990 Miscellaneous Prof Services 432200 Postage 433100 Travel/Training Expe se 443300 Dues sembership & Subscrip 443700 Licens and Permits 443990 j Misc. Other Expense Other g w Room Charge 129,00 State Tax 9.51 City 1 County Tax 8.39 Visa Payment (146.90) Balance Due: 0.00 Canal Park Lodge Account: 2014653 (ST211) Date: 6/10116 250 Canal Park Dr Room: 339 GROUP- Duluth, MN 55602 Arrival Date: 6/9116 (218) 279-6000 Departures Date: 6/10/16 info@canalparklodge,com Check In Time: 6/9/16 10:14 AM Out Time: 6110/16 8:48 AM ThareCheck ,James Rewards Program ID: EDAM EDAM You were checked out by: imlakar 505 Walnut Street Suite 1 You were checked in by: bloop Monticello, MN 55362 Total Balance Due: 0.00 619116 Room Charge #339 Thares, James 129.00 619/16 State Tax 9.51 619/16 City / County Tax 8,39 6110/16 Visa Payment (146.90) XXXXXXXXXXXX480 g w Room Charge 129,00 State Tax 9.51 City 1 County Tax 8.39 Visa Payment (146.90) Balance Due: 0.00 conomic Development ssaciation of Minnesota vveicome io the /_U'I b I-I)AIVI Summer C;onterence Thank you for attending the 2016 EDAM Summer Conference at the DECC in Duluth. The Professional Development Committee has planned another great conference program full of . time#y and informative educational sessions, great speakers, and opportunities for you to build valuable relationships with new and existing colleagues. Respectfully, Christie Rock Hantge, EDAM 2016 President Thank You to our Medalist Members Gold ® Great River Energy ® GREATER MSP ® Minnesota Department of Employment & Economic Development ® Minnesota Power, An ALLETE Company Silver ® Kennedy & Graven, Chartered Springsted Incorporated Xcel Energy, Inc. Continuing Education Credits Bronze ® Briggs and Morgan ® City of Burnsville - ® City of Duluth ® City of Oakdale a City of St, Louis Park ® Connexus Energy 0 Ehlers • Greater Fargo Moorhead EDC a ITC Midwest, LLC ® Kraus -Anderson ® LH B ® Metropolitan Council a Minnesota Business Finance Corp. ® Northland Securities, Inc. ® Short. Elliott Hend-rickson 0 Southwest Initiative Foundaliurn 0 St, Paul Port Authority ® Twin Cities - Metro CDC a WSB & Associates, Inc. International Economic Development Council (IEDC) has recognized this as a professional development event that counts towards the recertification of Certified Economic Developers (CEcD), Certification Maintenance (CM) credits have been applied for through the American Institute of Certified Planners (AICD). Conference attendees are eligible for National Development Council (NDC) recertification units. EDAM's mission: To champion economic development in Minnesota through professional development, networking, and advocacy. 2 AEEDAMDuluth Wednesday & Thursday Schedule WEDNESDAY, JUNE 8 4:00-6:30pm Registration — Harbor Side Ballroom Lobby 4:30-5:30pm Emerging Professionals — Room 301-305 Speakers: Erin Sparks, EDAM Member Services Chair and Eric Maass, EDAM Professional Development Committee member Are you new to the economic development profession, new to EDAM, or just looking for a new opportunity to get more involved with the organization? The EDAM Emerging Professionals Group is designed to connect young and emerging professionals with their peers for more effective networking while also providing access to some of the most accomplished professionals in the industry. An effective economic development strategy relies heavily on partnerships; leaders in the field understand this and have built a network of trusted colleagues to support the work they do. Begin building your own professional network and put your career on the fast track! 5:30-7:30pm President's Welcome Reception & Social — harbor Side Ballroom Lobby Network with your colleagues as everyone arrives, hear from President Christie Rock Hantge and celebrate the recipient of the 2016 President's Award. After the ceremony, stick around for games and music provided by The Electric Developers — a new EDAM combo. 7:30pm Networking (on your own) THURSDAY, JUNE 9 7:45am-3:00pm Registration — Harbor Side Ballroom Lobby 6:30-3:30am Breakfast at Canal Park Lodge (Included in your hotel stay if you are staying there) 3:30-3:45am 2016 Legislative Session Recap — Room 301-305 Speaker: Matt Brown, EDAM Government Relations Committee Chair 3:45-9:00am Welcome by Duluth Mayor — room 301-305 Speaker: Duluth Mayor Emily Larson 9:00-9:50am Keynote Presentation — Room 301-305 Speaker: Alan Hodnik,.Chairman, President, and CEO, ALLETE 9:50-10:1 Sam Break with Exhibitors — Harbor Side Ballroom Lobby #EDAMDululh 3 I I lul'Judy 'Du 1t:�Uule 10:15-11:00am idea Exchange --- Room 309-305 Brought back by popular demand, with a twist. Eight topics, with an opportunity to engage with colleagues on four. This round-robin format will be driven by attendees. EDAM will solicit topics in advance via Twitter and you can give suggestions as you check in on Wednesday. The top eight ideas will be the topics and the attendees at each table will take the discussion down the path they desire. No presentations, no facilitator, this will be an open time to share and learn. 11:00-11:30am Break with Exhibitors ® harbor Side Ballroom Lobby 11:30am-12:30pm Idea Interchange — Room 309-305 Brought back by popular demand, with a twist. Eight topics, with an opportunity to engage with colleagues on four. This round --robin format will be driven by attendees. EDAM will solicit topics in advance via Twitter and you can give suggestions as you check in on Wednesday. The top eight ideas will be the topics and the attendees at each table will take the discussion down the path they desire. No presentations, no facilitator, this will be an open time to share and learn. 12:30-1:30pm Lunch and DEED Update — Horizon Room Speaker: Shawntera Hardy, Commissioner, MN Dept. of Employment and Economic Development 1:30-1:45pm EDAM's Story: Celebrating 50 years — horizon Room Speakers: Megan Barnett-Livgard, EDAM Second Vice President and Adam Kienberger, EDAM First Vice President EDAM will celebrate 50 Years in 2017. First Vice President Adam Kienberger and Second Vice President Megan Barnett-Livgard will talk about the exciting ideas and events that are being planned in order to celebrate EDAM successes and impact over the past 50 years. 2:00-3:00pm Future Development through the Window of Forecast Modeling -- Room 309-305 Speaker; Dennis Farmer, AICP, Principal Forecaster, Metropolitan Council Economic development pros are aware of emerging demographic trends. But long-term planning demands greater detail about the timing, location and nature of future growth. To answer questions of what growth will happen, when and where, the Metropolitan Council maintains a real estate market model for small area forecasting. The Council's model estimates demand for various real estate types and location characteristics, and projects new development as households and businesses value their location options. The resulting local forecasts inform both local planning and the deployment of regional systems and services. These local forecasts also tell a story of how demographics and development patterns will change. 4 #EDAMDduth Thursday Schedule 2:00-4:00pm Vikre Distillery — offsite Speaker: Emily Vikre, PhD, President and Co -Founder, Vikre Distillery One of Duluth's most exciting emerging companies is in the craft distillery industry. Vikre Distillery is an incredible story of entrepreneurship — leaving promising careers on the East Coast to start a new venture that aligns personal passions with the natural resources and beauty of the place you grew up. Sustainability, community, locally sourced ingredients, the environment, and the water of Lake Superior are cornerstones of this emerging business, which today is producing outstanding gin, aquavit, whiskey, and vodka in Canal Park. In addition to a tour, we will hear the story of this start-up business, where the journey from concept to ribbon -cutting will be told. If entrepreneurship is an element of your economic development strategy, you won't want to miss this opportunity to hear about the original vision, site selection process, financing structure (including debt and equity), regulations and licensing, marketing strategies, how the business plan has evolved, and how they attract and retain talent that aligns with the company's core values. Also, you will hear what cities need to know if they want to attract entrepreneurs in the emerging craft distillery industry. Weather permitting, we will walk from the DECC to the distillery. Learn more about this company and its founders at www.vikredistillery.com. Optional tastings will be available at 3:30pm for a fee. 2:00-4:00pm St. Louis River Corridor Vision — offsite Speakers: Jim Filby Williams, Director of Public Administration, City of Duluth and Hans Johnson, Director of Recreational Lands, Minnesota Land Trust Along the St. Louis Riverfront, the City of Duluth is pursuing a revitalization vision that combines ecological restoration, green space acquisition and protection., park and trail improvements, and mixed use private development. The aim is to restore, preserve and Leverage the area's extraordinary mix of natural resources —the restored river itself, trout streams, old growth forests, and mountainous topography —to improve neighborhood quality of life, stimulate construction of new workforce housing, and establish the St. Louis River Corridor as a statewide tourist destination. This tour will focus on one especially complex and promising site between the base of Spirit Mountain and the riverfront opposite Tallas Island. Conditions permitting, participants may walk up to 1/2mile. on uneven natural surfaces. 4:00-6:00pm Break 6:00pm Meet at North Shore Scenic Railroad Depot 6:15pm Thursday Evening Networking — North Shore Scenic Railroad Join us at the North Shore Scenic Railroad at 6:00pm for a 2-1/2 hour trip along the North Shore with great views, networking, appetizers, and PUN! We will board the train around 6:15pm and leave .no later than. 6:30pm, so be sure to . arrive on time! This will be a great way to -see the North Shore[ #EDAMDWuih Friday Schedule FRIDAY, JUNE 10 7:45am-12:00pm Registration — Harbor Side Ballroom Lobby Arrive by 9:00am to enter the door prize drawing. Must be present at the drawing to win. 6:30-3:30am Breakfast at Canal Park Lodge (Included in your hotel stay if you are staying there) 9:00-9:45arn Keynote Presentation: An interview with Louis Jambois ® Room 301-305 Speaker: Louis Jambois . For the past 40+ (yup, it's actually been more than 40) years, Louis Jambois has held a variety of community and economic development jobs in Minnesota — not because he was particularly good at any of them, but because his supervisors were too benevolent to fire his sorry butt. Get up too early on Friday morning to hear his amazing and improbable tale of career survival. Draw inspiration from the realization that,.if Louis..could do it, anyone .can:. Consider advising your lowest -achieving children to pursue a career in public service as an alternative to living in your basement. Or, just sleep in as usual. Interviewed by Tony Schertler, another notable economic development neer-do-well. 9:45-10:00arn Break with Exhibitors ---- Harbor Side Ballroom Lobby 10:00-11:00arn Understanding Aftercare: Lessons from Foreign -Owned Enterprise Executives — Room 301-305 Moderator: Laurence Reszetar, Director, Foreign I: 7irect'Investment, Minnesota Trade Office Panelists: Evan Hoffman, Senior Manager, State Government Affairs, Organization for International Investment; Bill King, Vice President, Business Administration, Cirrus Aircraft; Chris Olsen, Vice President, Community and Government Affairs, Tate & Lyle; and Kapil Sharma, Vice President, Gove: nt-neat at Public Affairs —Nor th America, Wpro The panel of executives from foreign-owned enterprises operating in Minnesota and foreign direct investment specialists will share lessons learned from their experiences and the recently completed OFII whitepaper "Understanding Aftercare.." Panelists will share how economic developers can work to welcome and integrate these businesses into the community. Friday ~.Schedule 11:00-11:15am Break with Exhibitors Harbor Side Ballroom Lobby 11:15am-12:15pm Early Childhood Programs Key to Workforce Gains — Room 301-305 Speakers: Mark Lofthus, Economic Developmerit Director, Dakota Electric Association and Todd Otis, Senior Vice President for External Relations, Think Small Minnesota's economic growth is threatened by a tremendous workforce shortage. Too many workers are unprepared for work, and too few possess more advanced skills. There are many reasons why, including this: Par too many kids are not prepared for school success when they begin. kindergarten. Starting behind starts these children on a spiraling path downward — not reading by third grade leads to poor school performance, and eventually a lack of readiness to take the many jobs available today. If the workforce situation is bad today, it will only get worse if kids don't have access to quality child care -- which we know is a key to school readiness. This is a hard-core economic and workforce development issue that any development.official can appreciate. They will present compelling evidence and offer solutions, many of which are local, so that economic developers can act in their communities and regions to improve their chances for economic prosperity. 12:10pm Door Prue Drawings and Adjourn.— Room 301-305 =E •.Ss� �..+ ... A . -r.:s,'£k;.n kh.•' J t' --zr a-z3iT' r �'s' n. w-i?5:',... �•. :. _,..... �.; ��t ., +.-.,.. ..E -+a•�� c:.A - s r.Y - .., ,,:�..r•. x.` ;.;r,, iru'v1 d.C,Td. �ss.� .,...a --3•� '-:.m -..r_k ...i rf , , �;,. Conference Map HpBllUHfOYfP. �Q 205 I 204 ' 703 763 I. Four mgmt #EDAMDulw) 7 Vendor ate.. :c Date of Transaction CITY OF kl ONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $. Lns 00 Circle purchaser name: Jeff O'Neill Kerry Burr! Angela Schumann Vicki Leerhoff ra�y Er gyne 0berg Sarah Rathlisberger Jennifer Schreiber Jim Thares ,;Z�- xftul�. Employee Signa re Supervisor Signature Date approved Circle department code - 101 -41110 101-41310 101-41410 101-41520 101-41800 101-41910 101-41920 101-41940 213-46301 Circle expense code. 421990 431950 431990 432200 433100 443300 443700 443990 Other City Council Administration Elections Finance Human Resources Planning and Zoning Data Processing City Hall Economic Development HRA General Operating Supplies Newsletter Services Miscellaneous Prof Services Postage. Travel/Training Expense Dues Membership & Subscrip Licenses and Permits Misc. Other Expense a4k %,N"IeR Varidesk LLC PO Box 3588 Coppell TX 75019 United States (800) 207-2587 (800) 207-2587 Bill To Tracy Ergen City of Monticello 505 Walnut Street Suite 1 Monticello MN 55362 United States 49984 Sales Order #SO -N-328235 Date:06J1712016 Customer Account #: 565171 Ship To Tracy Ergen City of Monticello 505 Walnut Street Suite 1 Monticello MN 55362 United States Cube Corner 48 -White Ground - North America 495.00 $495,00 / d 7 � } ® \ ( / 0 \ \ E m \ \ ( y \ { ( 2 \ k = 2 \ ƒ 2 � t t ƒ \ _ _ 2 \ / \ 0 \ / / j \ Xcel Energy® RESPONSIBLE BY NATUREm NORTHERN STATES POWER COMPANY gage i ui 4 SERVICE ADDRESS ACCOUNT NUMBER 3 MONTICELLO EDA 51-0623082-8 06/30/2016 349 W BROADWAY ST Current Charges $34.97 MONTiCFLLO, MN 55362-9355 STATEMENT NUMBER STATEMENT DATE 3 r J J A 5 0 N D J7F7 M M A A M J 503729186 06/03/2016 $34,97 YOUR MONTHLY ELECTRICITY USAGE SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2} 1 2 3 4 Electricity Service 05/03/16 - 06/02/16 157 kWh $34.97 5 6 Current Charges $34.97 —- ACCOUNT BALANCE 12 13 J J A 5 0 N D J7F7 M M A A M J Previous Balance As of 05/03 $18.03 DAILY AVERAGES Last Year Payment Received Auto Pay 06/01 -$18.03 CR Temperature 55° F Balance Forward $0.00 Electricity kWh 0.0 Current Charges $34.97 Electricity Cast $0,59 Amount Due $34,97 0 allESTIONS ABOUT YOUR BILL? See mr website: xcelenergy.com INFORMATION ABOUT YOUR BILL Email us at: Customerservice@xcelenergy cem Thank you for your payment:. Please Call: 1-800-481.4700 'I��I'1111"�II'I�I��'II�'II��II"'I'1�1��1131111I�3I1"I�I�" Hearing Impaired: 1-800-895-4949 , Fax: 1-800-311-0050 iE Or write us at: XCEL ENERGY P.O. BOX 9477 PO BOX 8 EAU CLAIRE WI 54702-0008 MPLS MN 55484-9477 RETURN BOTFOM PORTION WITH YOUR PAYMENT + PLEASE Oa NOT USE STAPLES, TME OR PAPER CUPS Xcel Energy ACCaUNT NUMBER DUE DATE AMOUNIDUE 51-0623082-8 06/30/2016 $34.97 Automated Bank Payment Your bill is paid through an automated bank payment plan. 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 AV 01 024937 966828 91 A**5DGT 19 20 21 22 23 24 25 �11��113�I��I111�1'��I�'I��I"'IIIII�IIII�IIII'�1�111�311�II1� 26 27 28 29 MONTICELLO EDA 505 WALNUT 5T 5TE 1 MONTICELLO MN 55362-8831 'I��I'1111"�II'I�I��'II�'II��II"'I'1�1��1131111I�3I1"I�I�" XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 11 51063016 06230828 0000000349700000003497 Xcel Energy ld Customize your cooling rebate dollars Does your cooling upgrade qualify for a rebate? We have a wide range of standard rebates available for OX units, chillers, economizers, energy recovery ventilators and other select equipment. If your project doesn't qualify, don't worry—it might earn a rebate through our Custom Efficiency program. Preapproved projects can earn up to $400 per kW of electricity saved. SERVICE ADDRESS ACCOUNT NUMBER i i MONTICELLO EDA 349 W BROADWAY S7 MtJNTICELLO. MN 55362-9356 51-0623082-8 06r30r1016 STATEMENT NUMBER STATEMENT DATE 42888 Actual 503729186 06/03/2016 $34.97 SERVICE ADDRESS: 349 W BROADWAY ST MONTICELLO, MN 55362-9356 NEXT READ DATE: 07/06/16 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303657358 INVOICE NUMBER: 0624117623 METER 52995955 Read Dates: 05/03/16 - 46/02/16(30 Days) DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 42888 Actual 42731 Actual 157 kWh ELECTRICITY CHARGES_ RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Summer 10.47 kWh $0.087870 $0.92 Energy Charge Winter 146.53 kWh $0.074320 $10.89 Fuel Cost Charge 157 kWh $0.026433 $4.15 Affordability Chrg $0.97 Resource Adjustment $0.84 Interim Rate Adj $1.70 Subtotal $29.47 City Fees — $5.50 Total – – i;i4 97 INFORMATION ABOUT YOUR BILL For an average non -demand customer, 72% of your bill refers to power plant costs, 12% to high voltage line costs, and 16% to the cost of local wires connected to your business. 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SERVICE ADDRESS ACCOUNT NUMBER MONTIC 349WBELLOECA 349 W BROADWAY 5T 51-0623082-8 06/30/2016 MONTICELLO, MN 55362-9356 STATEMENT NUMBER STATEMENT DATEi 503729186 06/03/2016 IIILV$34.97 Take Advantage of Summer Savings Things are heating up! As temperatures continue to rise, check outthe ways to keep your energy bill low. Our rebates, programs and energy -efficiency tips can help your business save energy and money this summer. Simple changes can amount to big savings, so get started today. Visit xcelenergy,com for seasonal efficiency tips and to learn more about our energy efficiency programs. a" M , O a h 0 KK Be Aware of Scams If someone calls threatening to turn off your power due to an unpaid balance and asks you to pay with a prepaid or reloadable card, hang up the phone immediately. You may also be approached by people claiming to be with Xcel Energy and needing to do work at your business. Ask for Xce! Energy identification, and please, check with us if you're still not sure. Call us anytime at 1.800.461.4700. Don't let imposters steal your money, EDA Agenda: 8/10/16 6. Public Hearing - Consideration of adopting Resolution No. EDA- 2016 -006, a resolution approving a Purchase and Redevelopment Contract with Tim Taylor, Taylor Holdings, LLC for the acquisition and development of a residential lot located at 413 &1 Street West (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider authorizing the sale of a residential lot located at 413 4th Street West and further authorizing entering into a Purchase and Redevelopment Contract with the prospective buyer, Tim Taylor, Taylor Holdings,. The EDA has owned this lot since December 2008 when it was acquired to remove a blighted home and accessory structure on the property. It is zoned R -2 (Single and Two Family Residence) and is approximately 16,478 square feet in size. It is just west of the downtown area and has convenient access to retail and services and the Community Center and City Hall. The lot is surrounded by single family uses. The prospective buyer is a builder who intends to construct a one level, single family home in conformance with the R -2 zoning building standards and sell it as an owner occupied home. The attached Purchase & Redevelopment Contract stipulates that it be an owner occupied home and also be completed for occupancy within 12 months from the Purchase closing date. The EDA has a "right of reverter" to ensure that these stipulations are met. Key terms of the Purchase Agreement are: 1. Sale Price of $32,200. 2. Earnest money deposit of $1,000 3. Construction of a single family home in conformance with the R -2 Zoning District Building standards 4. Closing date 30 days after execution of the Purchase & Redevelopment Contract 5. Cash offer; not contingent on the buyer obtaining financing The EDA will note that the proposed home for the lot is illustrated in the attached elevation and site plans. An administrative site plan review will be required to review compliance with zoning codes; any variance would require review by the Planning Commission and City Council. Al. Staff Impact: The Community Development staff is involved in processing the purchase and redevelopment contract presentation for consideration by the EDA and the site plan to the Planning Commission. The EDA's legal counsel has been involved in preparation of the Purchase and Redevelopment Contract and will continue to assist and support staff in the land transaction process. A2. Budget Impact: The costs for preparation of the purchase and development contract are assigned to the EDA and are estimated at $1,200 + / -. This amount will be covered by the EDA Legal Fees line item. The buyer and seller will share the closing costs. The sale proceeds will result in a positive one -time benefit for the 2016 EDA budget. Closing costs estimated at $500.00 to $800.00 will be deducted from the sale proceeds. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution No. EDA- 2016 -006 approving a Purchase and Development Contract between the City of Monticello Economic Development Authority and Tim Taylor, Taylor Holdings, LLC and conveyance of the lot in connection with the Contract 2. Motion to deny the adoption of Resolution No. EDA- 2016 -006 approving a Purchase and Redevelopment Contract between the City of Monticello Economic Development Authority and Tim Taylor, Taylor Holdings, LLC and conveyance of lot in connection with the Contract. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative 91 wherein the Purchase and Redevelopment Contract between the City of Monticello Economic Development Authority and Tim Taylor, Taylor Holdings, LLC and the conveyance of a residential lot located at 413 4th Street West would be approved. The proposed land sale is consistent with the goals of the EDA in which it desires to sell land it holds with the intent of encouraging redevelopment in the core residential neighborhoods and upgrades in existing homes or new single family owner occupied housing in this area. D. SUPPORTING DATA: A. Resolution No. EDA- 2016 -006 B. Purchase and Redevelopment Agreement C. Parcel Aerial Image D. Parcel Zoning Map E. Proposed Home and Site Plan 2 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016 -006 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND TAYLOR HOLDINGS, INC., AND THE CONVEYANCE OF LAND IN CONNECTION WITH THE AGREEMENT BE IT RESOLVED by the Board of Commissioners ( "Board ") of the City of Monticello Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority currently administers Central Monticello Development Project No. 1 (the "Project "), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended. 1.02. To facilitate development of certain property in the Project, the Authority proposes to enter into a Purchase and Redevelopment Agreement (the "Contract ") between the Authority and Taylor Holdings, Inc. (the "Developer "), pursuant to which among other things the City will convey to the Authority, and the Authority will reconvey to Developer, certain property within the Project located at 413 4th Sreet West and described as follows (the "Development Property "): Lot 3, Block 29, and Lot 2, Block 29, except the Northwesterly 33 feet thereof, said Northwesterly 33 feet of Lot 2 being also described as that part of Lot 2 lying Northwesterly of a line drawn parallel to the Northwesterly line of said Lot 2 and distant 33 feet Southeasterly of said Northwesterly line, all in Townsite of Monticello, Wright County, Minnesota. 1.03. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Development Property to Developer, at which all interested persons were given an opportunity to be heard. 1.04. The Authority finds and determines that conveyance by the Authority of the Development Property to the Developer is for a public purpose and is in the public interest because it will further the development objectives of the Project and increase the supply of owner - occupied residential housing in the City, and further finds and determines that the conveyance of the Development Property has no relationship with the City's comprehensive plan. Section 2. Contract Approved, Further Proceedings. 2.01. The Board approves the Contract as presented to the Board, including the 484194v MNIMN325 -32 provisions for the conveyance of the Development Property therein, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Contract by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Contract as a whole, including without limitation execution of any deed or other documents necessary to convey the Development Property to Developer. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 10th day of August, 2016. President ATTEST: Secretary 484194v MNIMN325 -32 2 TO BE DATED AS OF THE DATE OF FINAL EDA APPROVAL PURCHASE AND REDEVELOPMENT AGREEMENT 413 411 Street West, Monticello, Minnesota 1. Parties. This Purchase and Redevelopment Agreement is made as of , 2016, between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota having its office located at 505 Walnut Street, Monticello, MN (the "Seller"), and Taylor Holdings, Inc., a Minnesota corporation, having its principal office at 1820 125th Avenue NE, Blaine, MN (the `Buyer") (the "Agreement "). 2. Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property in Wright County, Minnesota, legally described as follows (the "Property "): Lot 3, Block 29, and Lot 2, Block 29, except the Northwesterly 33 feet thereof, said Northwesterly 33 feet of Lot 2 being also described as that part of Lot 2 lying Northwesterly of a line drawn parallel to the Northwesterly line of said Lot 2 and distant 33 feet Southeasterly of said Northwesterly line, all in Townsite of Monticello. Check here if part or all of the land is Registered (Torrens) ❑ 3. Acceptance Deadline. This offer to purchase, unless accepted sooner, shall be null and void at 10:00 p.m. on August 10, 2016, and in such event all earnest money shall be refunded to Buyer. 4. Price and Terms. The price for the Property is $32,200 ( "Purchase Price ") which Buyer shall pay as follows: non - refundable earnest money of $1,000 by check, receipt of which is hereby acknowledged by Seller. The balance of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing" shall be no later than August 25, 2016. (15 days from date of this Agreement) 5. Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. 1 4836000 MN325 -32 6. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A, subject to the conditions subsequent required by Sections 15, 16, and 17 of this Agreement (the "Deed "). 7. Real Estate Taxes and Special Assessments. A. Seller shall pay, at or before closing, all real estate taxes due and payable in 2015 and prior years. Real estate taxes due and payable in the year of closing shall be pro -rated to Seller and Buyer as of the Date of Closing. B. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment in the year of closing. Seller represents that there are no special assessments pending as of the date of this agreement. If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, as Buyer's option: 1. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the property; or 2. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or 3. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 8. Closing Costs and Related Items. The Buyer will pay: (a) one -half the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b) fees for title evidence obtained by Buyer; (c) the recording fees for this Agreement and for the Deed transferring title to Buyer. Seller will pay all other fees normally paid by sellers, including (a) any transfer taxes, and Well Disclosure fees required to enable Buyer to record its deed from Seller under this Agreement; (b) one -half the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement;and (c) fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. 9. Sewer and Water. Seller warrants that city sewer is available at the Property line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 2 4836000 MN325 -32 10. Condition of Property. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void. Seller makes no warranties as to the condition of the Property. 11. Marketability of Title. As soon as reasonably possible after execution of this Agreement by both parties: (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in Seller's possession or control, to Buyer or to Buyer's designated title service provider; and (b) Buyer, at its sole expense, shall obtain the title evidence determined necessary or desirable by Buyer. The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The Seller shall have 90 days from the date of such objection to effect a cure; provided, however, that Seller shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 12. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any liability on its part upon provision of a quit claim deed to the Property from Buyer to Seller; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: 3 4836000 MN325 -32 C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises. 13. Well Disclosure. Seller's knowledge of wells is as follows: ❑ The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document. ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the Property have not changed since the last previously filed well disclosure certificate. 14. Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 15. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant "). This covenant shall survive the delivery of the Deed. A. The single family dwelling described in this Section is referred to as the "Minimum Improvements." B. The Minimum Improvements shall consist of a new single family dwelling, and shall be constructed substantially in accordance with the proposal approved by Seller on August 10, 2016, attached hereto as Exhibit B. The Buyer further agrees to construct the Minimum Improvements, or cause the same to be constructed, in accordance with the terms of this Agreement and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). C. Construction of the Minimum Improvements must be substantially completed by August 25, 2017, which is one year from the Date of Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Monticello building official. D. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a Certificate of Completion, in the form attached hereto as Exhibit C, for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed 4 4836000 MN325 -32 with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller for the Buyer to take or perform in order to obtain such certification. E. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1) Except for any agreement for sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer "), without the prior written approval of the Seller's board of commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Buyer to construct the Minimum Improvements or component thereof. (2) If the Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Wright County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other 5 4836000 MN325 -32 successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. (3) If the conditions described in paragraph (2) above are satisfied then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or the Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of the Seller. F. The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence, (b) will not rent the Property to any person or entity, (c) will not seek exemption from real estate taxes on the Property under State law, and (d) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Monticello or Seller in accordance with this Agreement). The covenants in this paragraph run with the 6 4836000 MN325 -32 land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for ten years after the Date of Closing. 16. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re -enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 17. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and /or possession of the Property or any part thereof as provided in Section 16, the Seller shall apply the purchase price paid by the Buyer under Section 4 of this Agreement as follows: 7 4836000 MN325 -32 (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 18. Time is of the essence for all provisions of this contract. 19. Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 20. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 21. Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 22. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 8 4836000 MN325 -32 23. No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 24. Recording. This Agreement shall be filed of record with the Wright County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 25. No Broker Involved. The Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its President STATE OF MINNESOTA COUNTY OF WRIGHT } ss. LIZA Its Executive Director The foregoing was acknowledged before me this day of August, 2016, by and , the President and Executive Director of City of Monticello Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public 9 4836000 MN325 -32 BUYER: TAYLOR HOLDINGS, INC. STATE OF MINNESOTA } ss. COUNTY OF The foregoing was acknowledged before me this day of August, 2016, by , the of Taylor Holdings, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South 6th Street Minneapolis, MN 55402 10 4836000 MN325 -32 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $ ECRV: THIS INDENTURE, between the City of Monticello Economic Development Authority, a Minnesota, a public body corporate and politic (the "Grantor"), and a Minnesota (the "Grantee "). WITNESSETH, that Grantor, in consideration of the sum of $ and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Wright and State of Minnesota described as follows, to -wit (such tract or parcel of land is hereinafter referred to as the "Property "): Lot 3, Block 29, and Lot 2, Block 29, except the Northwesterly 33 feet thereof, said Northwesterly 33 feet of Lot 2 being also described as that part of Lot 2 lying Northwesterly of a line drawn parallel to the Northwesterly line of said Lot 2 and distant 33 feet Southeasterly of said Northwesterly line, all in Townsite of Monticello. Check here if part or all of the land is Registered (Torrens) ❑ To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the of August, 2016, identified as "Purchase and Redevelopment Agreement" (hereafter referred to as the "Agreement ") and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Monticello, Minnesota, or for the refinancing of the same. 4836000 MN325 -32 It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Wright County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 15, 16 and 17 of the Agreement relating to the Grantor's right to re -enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 15F of the Agreement for a period of ten years after the date hereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and 4836000 MN325 -32 enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re -enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director, this day of August, 2016. ❑ The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: ). ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 4836000 MN325 -32 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President LOSE Its Executive Director STATE OF MINNESOTA ) ss COUNTY OF WRIGHT ) On this day of , 2016, before me, a notary public within and for County, personally appeared and to me personally known who by me duly sworn, did say that they are the President and Executive Director of the City of Monticello Economic Development Authority (the "Authority ") named in the foregoing instrument; that said instrument was signed on behalf of said Authority pursuant to a resolution of its governing body; and said and _ acknowledged said instrument to be the free act and deed of said Authority. This instrument was drafted by Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337 -9300 4836000 MN325 -32 Notary Public Tax Statements should be sent to: EXHIBIT B TO PURCHASE AND REDEVELOPMENT AGREEMENT APPROVED PROPOSAL 483600v1 MN325 -32 EXHIBIT C TO PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION 483600v1 MN325 -32 CERTIFICATE OF COMPLETION WHEREAS, the City of Monticello Economic Development Authority, a public body, corporate and politic (the "Grantor "), conveyed land in Wright County, Minnesota to Taylor Holdings, Inc., a Minnesota corporation (the "Grantee "), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Wright and State of Minnesota, as Document Numbers and , respectively; and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in Sections 14A and 14B of the Agreement (as described in said Deed) have been performed by the Grantee therein, and the County Recorder [and the Registrar of Titles] in and for the County of Wright and State of Minnesota are hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Sections 15A and 15B of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of said Deed; provided that the covenants set forth in Sections 15F of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. Dated: , 20 4836000 MN325 -32 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ss COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 20, by and , the President and Executive Director, respectively, of the City of Monticello Economic Development Authority, on behalf of the authority. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337 -9300 4836000 MN325 -32 Beacon 71V Wright County, MN Overview Legend Roads — CSAHCL — CTYCL MUNICL PRIVATECL TWPCL Highways — Interstate — State Hwy — US Hwy City/Township Limits c t Parcels Parcel ID 155010029020 Alternate ID n/a Owner Address n/a Sec/Twp /Rng 11- 121 -025 Class 958- MUNICIPAL PUBLIC SERVICE -OTHER Property Address 413 4TH ST W Acreage n/a MONTICELLO District n/a Brief Tax Description Sect-11 Twp- 121 Range -025 ORIGINAL PLAT MONTICELLO Lot-002 Block-029 LOT 3 &LOT 2 EX NWLY33FTTHOF SD NWLY 33FT0 F LT2 DES ASTH PRTOF LT2 LY NWLY OF LN DRWN PAR TO NWLY LN OF LT2 &33FTSELY OF SID NWLY LN OF LT2 BLK29 (Note: Not to be used on legal documents) Date created: 8/4/2016 Developed by Schneider The Schneider Corporation Legend BASE ZONING DISTRICTS Residential Districts Low Residenfial Densities ® A-0 RA R -r Medium Residential Dertsifies T -N R -1 L R -FUD High Residential Densities R -3 _ R-4 M-H Business Districts B•7 � B -x - B -3 _ B-4 CCD Industrial Districts 16C _ 1 -x 1 \i� PuDs ¢s pl Swan River i. OVERLAY DISTRICTS E_ _I performance Based Overlay District Special Use Overlay District r - - L I Mississippi Wild. Scenic & Rec Overlay District =Shore [and District 1 Free%vay Bonus Sign District OTHER �. Water r 9j, -,q ►r 1 7 3rd5t 413 4th Street West IVlz : V s �l 5r y4 F.,;4 eA VA ' F7:12 FRONT To BACK TYF, IT FRONT ELEVATION lfl IE � ~~ ° 2 DD � | OO | �| REAR ELEVATION Ld LErT ELEVATION F,16�4T ELEVATION of 4 ay _ ?@ 9 Y'2r p k 51. n p o26 � irk tw 3, 5- ;t 2' 4' Y MSTR. ,2 °x26 6 W.LGL. O BATH a AE. oya O =a s Re6 4B "x36" - LOWER 7 0 i� S S O N OPTIONAL v MASTER BATH 1, f � LAYOUT 0 O ox m �o d N1 L bi � O O LL- z Q • NOTE: ALL DIMENSIONING IS TO EXTERIOR OF 1/2" SHEATHING. ^\II /� ^I T L U pets: 10:'12/12 GjJ c 1LW=ZAL NO LJ: Revised: 4/en3 -9 II /E" PLATE HG-T. UNLEBE NOTED O -AL- WINDOWS TC 6 DETERMINED Revised: T/3O/13 Gf� /GRIJ5 OPTIONAL) E m Revlsed: - SAEETr GLAZING REQ'D FOR ALL GLA55 WITHIN 24" ARE OF DOCKS - - Revlsed: -5—TY GLAZING REQ'D. FOR ALL O O WINDOWS WITHIN IE" OF FLOOR BURFAC - _ Revlsed- ,IN GREATER THAN 5 SQ.=T, IN AREA Plan Number: EOL ID BEARING REQ'D e ALL BEAMS e HEADERS 1151102 -ALL 5TOOLE TO BE WEEATED IN A 3O" CLEAR 6EACE Wl— Page Number: 3oF4 R.O. 7 aE6osbx" R.O. A' -Q�^ s � a E � ET/ K 5' -Ok 5 4060 R.O. 4'4 I/4" z E'-0 I/4" R.O. 4'-0 I/4' x 6'-0 I/4' R.O. 44 I/4" x 6'-0 I/4" e e O 10 I- 9 I/2' L6L 3' -6" 10'- 2Ei411 Q }�_oll 3' -2 a" 5'- 83ia'I 5' -BEia" 3' -l" COVERED PORCH 12'0" x5'0" CED606E / CPpT6012 t- I' -6 m � d 9' -I I /S" PLATE HGT, c0 MASTER SUITE E.I I ro LIVING ROOM DINING ROOM 4' -I�' L814'-9, .� q�� - IOks2' ®p v 0 �ol��' I MSTR. E W.LGL, 16' -e" BATH � I II KITCHEN aR —R W � E.D. 6 ® REEG. cvEN/ � Q a --- �,e---L DR �'a" E" D x JEE II 6TAI.DARp �� r � O �6' -0" 6ATHEAY I I' 9sia" -m MAIN 1 =LOOfi� ALAN BEDROOM *2 -p" 0 n i n r BATH II' -I" x II' -6" 3 GAR GARAGE SCALE: I/� I -O GAAGE A1TIC 1981 SQ, ET. HOUSE � 6E VENTED PRGVIpE /2'GrF. BRD. �8 SQ. ET. FRNT. PORCH OE GARAGE SIDE W DF THE GDMMpN WALLS 60 SQ, ET. REAR PORCH- 922 SQ. ET. CxRCx, 1O,,aII 5' oll - � a 6 Rc5 - 19'3" m e' o, I I DORMER ABOVE I SDEL TE OPAQUE INSIpE PANE �' I TcssozA I BEDROOM •3 EAD DOOR � � I . Ba" — _'� COVERED 11 DER ovERH o = 13' -O _ _ - - - � �I,.�- 6yll�, TRUSS /T LsL PORCH 9' x B' Ov_TiHEAD DOOR 9' x E'�OVERHEAD DOOR rll Iii ROOF TRLIB6€ a 24" O., G. ROOT TRllbb� ®24" - 9 I /2" LSL O © 4x4 w/ II" WRA TSH2 -4065 E 3' 59 -O EDA Agenda: 8/10/16 7. Public Hearing - Consideration of adopting Resolution No. EDA- 2016 -007, a resolution approving a Purchase and Redevelopment Contract with Hallie Leffingwell, dba We Thrive Fitness, for the acquisition and development of a commercial lot located at 349 West Broadway (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider authorizing the sale of a commercial lot located at 349 West Broadway and further authorizing entering into a Purchase and Redevelopment Contract with the prospective buyer, Hallie Leffingwell (We Thrive Fitness, LLC). The EDA has owned this lot since August 2012 when it was acquired for potential long -term redevelopment purposes. It was formerly a gas station and has been cleared of tank leak contaminant issues by the MPCA. Currently the parcel is zoned as CCD (Commercial). The property is approximately 8,310 square feet in size and is situated just west of the core downtown area. The properties located across Linn Street to the west of this parcel are zoned R -2. Ms. Leffingwell intends to utilize the property as a fitness studio. She plans to remodel the facility and upgrade the look while keeping the retro gas station elements that will relate to her business operation, i.e. (large overhead doors with large windows). It is her goal to complete the remodeling estimated to cost approximately $100,000 +/- by mid to late November and be open for the Christmas and New Year season when exercise enrollments typically tick upward. Key terms of the Purchase Agreement are: 1. Sale Price of $45,000. 2. Earnest money deposit of $1,000 3. Verification of financing to complete the purchase and also complete the remodeling project per the plans attached to the Purchase and Redevelopment Contract 4. Completion of the specified improvements per the remodel plan attached to the Purchase and Redevelopment Contract 5. Verification of removal of hazardous waste materials located at the property 6. Closing date 75 days after execution of the Purchase & Redevelopment Contract The EDA has a right of reverter to ensure that the terms and stipulation are fully performed. The proposed building and site improvements illustrations are attached to the Purchase and Redevelopment Agreement. The site plan will also require separate land use actions through administrative land use application and review with expectation that any request for a variance or a CUP would be reviewed by the Planning Commission and City Council Al. Staff Impact: The Community Development staff is involved in processing the purchase and redevelopment contract presentation for consideration by the EDA The EDA's legal counsel has been involved in preparation of the Purchase and Redevelopment Contract and will continue to assist and support staff in the land transaction process. A2. Budget Impact: The costs for preparation of the purchase and development contract are assigned to the EDA and are estimated at $1,200 + / -. This amount will be covered by the EDA Legal Fees line item. The buyer and seller will share the closing costs. The sale proceeds will result in a positive one -time benefit for the 2016 EDA budget. Closing costs estimated at $500.00 to $600.00 will be deducted from the sale proceeds. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution No. EDA- 2016 -007 approving a Purchase and Development Contract between the City of Monticello Economic Development Authority and Hallie Leffingwell (We Thrive Fitness, LLC) and conveyance of the lot in connection with the Contract 2. Motion to deny the adoption of Resolution No. EDA- 2016 -007 approving a Purchase and Redevelopment Contract between the City of Monticello Economic Development Authority and Hallie Leffingwell (We Thrive Fitness, LLC) and conveyance of lot in connection with the Contract. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative 91 wherein the Purchase and Redevelopment Contract between the City of Monticello Economic Development Authority and Hallie Leffingwell (We Thrive Fitness, LLC) wherein conveyance of a commercial lot located at 349 West Broadway would be approved. The proposed land sale is consistent with the goals of the EDA in which it desires to sell land it holds with the intent of encouraging redevelopment in the core downtown neighborhood and furthermore it is consistent with the Comprehensive Plan encouraging redevelopment of the central commercial district with retail and service activities. The sale price of $45,000 constitutes a business subsidy under MN State Statutes. The subsidy amount (taxable market value minus the sale price [$81,500 - $45,000 = $36,500]) is less than $50,000 and therefore does not require a public hearing. The EDA attorney has reviewed the proposed subsidy for conformance to statutory requirements. 2 D. SUPPORTING DATA: A. Resolution No. EDA- 2016 -007 B. Purchase and Redevelopment Agreement C. Parcel Aerial Image D. Parcel Zoning Map E. Proposed Remodeling Plans /Site Plan CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016 -007 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT CONTRACT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND HALLIE LEFFINGWELL dba WE THRIVE FITNESS, AND THE CONVEYANCE OF LAND IN CONNECTION WITH THE AGREEMENT BE IT RESOLVED by the Board of Commissioners (`Board ") of the City of Monticello Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority currently administers Central Monticello Development Project No. 1 (the "Project "), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended. 1.02. To facilitate development of certain property in the Project, the Authority proposes to enter into a Purchase and Redevelopment Contract (the "Contract ") between the Authority and Hallie Leffingwell dba We Thrive Fitness (the "Developer "), pursuant to which among other things the Authority will convey to the Developer certain property within the Project described as follows (the "Development Property"): The South 1/2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South 1/2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid -point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot 1 for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. 1.03. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Development Property to Developer, at which all interested persons were given an opportunity to be heard. 1.04. The Authority finds and determines that conveyance by the Authority of the Development Property to the Developer is for a public purpose and is in the public interest because it will further the development objectives of the Project, encourage the retention of jobs, and increase the tax base; and further finds and determines that the conveyance of the Development Property has no relationship with the City's comprehensive plan. 484196v1 MNIMN325 -31 Section 2. Contract Approved, Further Proceedings. 2.01. The Board approves the Contract as presented to the Board, including the provisions for the conveyance of the Development Property therein, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Contract by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Contract as a whole, including without limitation execution of any deed or other documents necessary to convey the Development Property to Developer. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 10th day of August, 2016. President ATTEST: Secretary 484196v1 MNIMN325 -31 2 First draft, August 3, 2016 PURCHASE AND REDEVELOPMENT CONTRACT By and Between CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY and HALLIE LEFFINGWELL dba WE THRIVE FITNESS Dated as of: , 2016 This document was drafted by: KENNEDY & GRAVEN, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Telephone: 337 -9300 483670v1 MNIMN325 -31 TABLE OF CONTENTS Page PREAMBLE............................................................................................... ..............................1 ARTICLE I Section1.1. Definitions ............................................................................. ..............................2 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority ......................................... ............................... 5 Section 2.2. Representations and Warranties by the Redeveloper ........... ............................... 5 ARTICLE III Acquisition and Conveyance of Property Section 3.1. Conveyance of the Property ................................................. ............................... 7 Section 3.2. Purchase Price; Provisions for Payment .............................. ............................... 7 Section 3.3. Conditions of Conveyance ................................................... ............................... 7 Section 3.4. Place of Document Execution, Delivery and Recording, Costs ......................... 8 Section3.5. Title ...................................................................................... ............................... 8 Section 3.6. Soils, Environmental Conditions, Grading .......................... ............................... 9 Section 3.7. No Business Subsidy .......................................................... ............................... 10 Section 3.8. Payment of Administrative Costs ...................................... ............................... 10 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements ......................... ............................... 13 Section 4.2. Construction Plans ............................................................. ............................... 13 Section 4.3. Commencement and Completion of Construction ............... .............................14 Section 4.4. Certificate of Completion .................................................... .............................14 ARTICLE V Insurance Section5.1. Insurance ............................................................................ ............................... 16 Section5.2. Subordination ..................................................................... ............................... 17 483670v1 MNIMN325 -31 ARTICLE VI Review of Taxes Section 6.1. Review of Taxes .................................................................. .............................18 ARTICLE VII Financing Section7.1. Financing ............................................................................ ............................... 19 Section 7.2. Authority's Option to Cure Default on Mortgage .............. ............................... 19 Section 7.3. Subordination and Modification for the Benefit of Mortgagee ........................ 19 ARTICLE VIII Prohibitions Against Assignment and Transfer, Indemnification Section 8.1. Representation as to Redevelopment ................................. ............................... 21 Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignment of Agreement ................................................. ............................... 21 Section 8.3. Release and Indemnification Covenants ............................ ............................... 22 ARTICLE IX Events of Default Section 9.1. Events of Default Defined ................................................. ............................... 24 Section 9.2. Remedies on Default .......................................................... ............................... 24 Section 9.3. Revesting Title in Authority Upon Happening of Event Subsequent to 28 Section 10.4. Conveyance to Redeveloper .............................................. ............................... 24 Section 9.4. Resale of Reacquired Property; Disposition of Proceeds .. ............................... 26 Section 9.5. No Remedy Exclusive ........................................................ ............................... 27 Section 9.6. No Additional Waiver Implied by One Waiver ................. ............................... 27 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable........ 28 Section 10.2. Equal Employment Opportunity ........................................ ............................... 28 Section 10.3. Restrictions on Use ............................................................ ............................... 28 Section 10.4. Provisions Not Merged With Deed .................................... ............................... 28 Section 10.5. Titles of Articles and Sections ........................................... ............................... 28 Section 10.6. Notices and Demands ........................................................ ............................... 28 Section10.7. Counterparts ....................................................................... ............................... 29 Section10.8. Recording ............................................................................. .............................29 Section10.9 Amendment .......................................................................... .............................29 Section 10.10 Authority Approvals .......................................................... ............................... 29 Section 10.11 Termination .......................................................................... .............................29 Section 10.12 Choice of Law and Venue .................................................. ............................... 29 483670v1 MNIMN325 -31 TESTIMONIUM........................................................................................ ............................... S -1 SIGNATURES.......................................................................................... ............................... S -1 SCHEDULE A Description of Redevelopment Property SCHEDULE B Form of Quit Claim Deed SCHEDULE C Certificate of Completion (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 PURCHASE AND REDEVELOPMENT CONTRACT THIS AGREEMENT, made as of the day of , 2016, by and between THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota (the "Authority "), and HALLIE LEFFINGWELL DBA WE THRIVE FITNESS, an individual (the "Redeveloper "). WITNESSETH: WHEREAS, the Authority has undertaken a program to promote economic redevelopment and job opportunities and to promote the redevelopment of land which is underutilized within the City of Monticello (the "City "), and in this connection administers a redevelopment project known as Redevelopment Project No. 1 (the "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended (the "HRA Act ") and Minnesota Statutes, Sections 469.090 to 469.108 1, as amended (the "EDA Act "); and WHEREAS, pursuant to the HRA Act, the Authority is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, the Authority has acquired certain property described in Schedule A (the "Redevelopment Property ") within the Redevelopment Project, and intends to convey that property to the Redeveloper for redevelopment of certain improvements described herein; and WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the City of Monticello Economic Development Authority, or any successor or assign. "Authority Representative" means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. "Business Subsidy Act" means Minnesota Statutes, Section 116J.993 to 116J.995, as amended. "Certificate of Completion" means the certification provided to the Redeveloper, or the purchaser of any part, parcel or unit of the Redevelopment Property, pursuant to Section 4.4 of this Agreement. "City" means the City of Monticello, Minnesota. "Closing" has the meaning provided in Section 3.3(b). "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides); (5) landscape plan; and (6) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Wright, Minnesota. "EDA Act" means Minnesota Statutes, Sections 469.090 to 469.1081, as amended. "Event of Default" means an action by the Redeveloper listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. 483670v1 MNIMN325 -31 "HRA Act" means Minnesota Statutes, Sections 469.001 to 469.047, as amended. "Minimum Improvements" means the construction on the Redevelopment Property of an approximately square -foot health and fitness facility in an existing commercial building, including remediation of hazardous materials and complete remodel, including without limitation roofing, HVAC, electrical, plumbing, bathroom construction, paint, flooring, signage, and parking lot improvements. "Mortgage" means any mortgage made by the Redeveloper which is secured, in whole or in part, with the Redevelopment Property and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Redeveloper" means Hallie Leffingwell dba We Thrive Fitness or its permitted successors and assigns. "Redevelopment Project" means the Authority's Redevelopment Project No. 1. "Redevelopment Property" means the real property described in Schedule A of this Agreement. "Redevelopment Plan" means the Authority's Redevelopment Plan for the Redevelopment Project, as amended. "State" means the State of Minnesota. "Tan Official" means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Termination Date" means the earlier of (a) the date of issuance of a Certificate of Completion in substantially the form attached as Schedule C, or (b) termination of this Agreement pursuant to its terms. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of war, terrorism, strikes, other labor troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Authority in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Redeveloper's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such approval and construction is required under Sections 4.2 and 4.3 of this Agreement. 483670v1 MNIMN325 -31 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. The Authority makes the following representations as the basis for the undertaking on its part herein contained: (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the EDA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken to foster the redevelopment of certain real property which for a variety of reasons is presently underutilized, to prevent the emergence of blight, to retain and enhance tax base and employment in the City, and to stimulate further redevelopment of Monticello downtown area and the Redevelopment Project as a whole. Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is an individual resident of the State and has power to enter into this Agreement. (b) If the Redeveloper acquires the Redevelopment Property in accordance with this Agreement, the Redeveloper will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the Authority in the Redevelopment Project may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Redeveloper is aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (d) The Redeveloper will construct the Minimum Improvements in accordance with all local, state or federal energy - conservation laws or regulations. (e) The Redeveloper will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and 483670v1 MNIMN325 -31 conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (g) The Redeveloper is not currently in default under any business subsidy agreement with any grantor, as such terms are defined in the Business Subsidy Act. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE III Acquisition and Convevance of Property Section 3.1. Conveyance of the Property. As of the date of this Agreement, the Authority owns the Redevelopment Property as described in Schedule A. The Authority will convey title to and possession of the Redevelopment Property to the Redeveloper, subject to all the terms and conditions of this Agreement. Section 3.2. Purchase Price; Provisions for Pam. The purchase price to be paid to the Authority by the Redeveloper in exchange for the conveyance of the Redevelopment Property is $45,000. The purchase price shall be payable by the Redeveloper as follows: (i) non - refundable earnest money in the amount of $1,000.00 (the "Earnest Money "), receipt of which the Authority acknowledges upon execution in full of this Agreement; and (ii) the balance payable in cash or certified check at Closing. Section 3.3. Conditions of Convey. (a) The Authority shall convey title to and possession of the Redevelopment Property to the Redeveloper by a deed substantially in the form of the deed attached as Schedule B to this Agreement. The Authority's obligation to convey the Redevelopment Property to the Redeveloper is subject to satisfaction of the following terms and conditions: (1) The Authority having approved Construction Plans for the Minimum Improvements in accordance with Section 4.2. (2) The Authority having approved financing for construction of the Minimum Improvements in accordance with Article VII hereof, and the Redeveloper having closed on such permanent financing at or before Closing on transfer of title to the Redevelopment Property to the Redeveloper. (3) The Redeveloper having reviewed and approved (or waived objections to) title to the Redevelopment Property as set forth in Section 3.5. (4) The Redeveloper having reviewed and approved (or waived objections to) soil and environmental conditions as set forth in Section 3.6. (5) No uncured Event of Default under this Agreement. Conditions (1), (2), and (5) are solely for the benefit of the Authority, and may be waived by the Authority. Conditions (3) and (4) are solely for the benefit of the Redeveloper, and may be waived by the Redeveloper. 483670v1 MNIMN325 -31 (b) The closing on conveyance of the Redevelopment Property from the Authority to the Redeveloper shall occur upon satisfaction of the conditions specified in this Section, but no later than October 24, 2016 or at such earlier date as the parties hereto agree in writing ( "Closing "). Section 3.4. Place of Document Execution, Delivery and Recording, Costs. (a) Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all deeds, documents and the payment of any purchase price shall be made at the offices of the title company selected by Redeveloper ( "Title ") or such other location to which the parties may agree. (b) The deed shall be in recordable form and shall be promptly recorded in the proper office for the recordation of deeds and other instruments pertaining to the Redevelopment Property. At Closing, the Redeveloper shall pay: recording costs for the deed (excluding state deed tax) and any additional recordable documents referenced in this Agreement, if applicable; title insurance commitment fees and premiums, if any; and one -half of the closing fees charged by Title, if any. The parties agree and understand that the Redevelopment Property is exempt from property taxes for taxes payable in 2016, and is expected to be exempt from property taxes payable in 2017. (c) At Closing the Authority shall pay or cause to be paid the state deed tan, costs of recording any instruments used to clear title encumbrances, all outstanding special assessments against Redevelopment Property, and one -half of the closing costs charged by Title, if any. Section 3.5. Title. (a) As soon as practicable after the date of this Agreement, the Redeveloper shall obtain, at Redeveloper's sole expense, a commitment for the issuance of a policy of title for the Redevelopment Property. The Redeveloper shall have ten (10) days from the date of its receipt of such commitment to review the state of title to the Redevelopment Property and to provide the Authority with a list of written objections to such title. Upon receipt of the Redeveloper's list of written objections, the Authority shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Redeveloper. In the event that the Authority has failed to cure objections within sixty (60) days after its receipt of the Redeveloper's list of such objections, the Redeveloper may by the giving of written notice to the Authority (i) terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, or (ii) waive the objections and proceed to Closing. The Authority shall have no obligation to take any action to clear defects in the title to the Redevelopment Property, other than the good faith efforts described above. (b) The Authority shall take no actions to encumber title to the Redevelopment Property between the date of this Agreement and the time the deed is delivered to the Redeveloper. The Authority expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the Redevelopment Property prior to Closing. Upon Closing, the Authority is obligated to pay all costs to discharge any encumbrances to the Redevelopment Property attributable to actions of the Authority, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. (c) The Redeveloper shall take no actions to encumber title to the Redevelopment Property between the date of this Agreement and the time the deed is delivered to the Redeveloper. 483670v1 MNIMN325 -31 The Redeveloper expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the Redevelopment Property prior to Closing. Notwithstanding termination of this Agreement prior to Closing, Redeveloper is obligated to pay all costs to discharge any encumbrances to the Redevelopment Property attributable to actions of Redeveloper, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.6. Soils, Environmental Conditions. (a) Before closing on conveyance of the Redevelopment Property from the Authority to the Redeveloper, the Redeveloper may enter the Redevelopment Property and conduct any other environmental or soils studies deemed necessary by the Redeveloper. If, at least 10 days before Closing the Redeveloper determines that hazardous waste or other pollutants as defined under federal and state law exist on the property, or that the soils are otherwise unsuitable for construction of the Minimum Improvements, the Redeveloper may at its option terminate this Agreement by giving written notice to the Authority, upon receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder. (b) The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the soils or other environmental conditions on the Redevelopment Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and further acknowledges and agrees that the building located on the Redevelopment Property shall be conveyed AS -IS, and that remediation of hazardous materials within said building is solely the responsibility of the Redeveloper. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property. Section 3.7. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement' ' for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The parties agree and understand that the assessed market value of the Redevelopment Property is $81,500. The subsidy provided to the Redeveloper consists of a write -down in the acquisition cost of the Redevelopment Property as described in Section 3.2, for a total subsidy of $36,500 (the "Subsidy "). (2) The public purposes of the Subsidy are to retain jobs in the City and the State, to promote redevelopment activities and the removal of blight, and to increase the tan base of the City and the State. (3) The goals for the Subsidy are: to secure development of the Minimum Improvements on the Redevelopment Property; to maintain such improvements as a fitness facility for the time period described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.8(b) hereof. 483670v1 MNIMN325 -31 (4) If the goals described in clause (3) are not met, the Redeveloper must make the payments to the Authority described in Section 3.8(c). (5) The Subsidy is needed to induce the Redeveloper to acquire the Redevelopment Property and construct the Minimum Improvements at this site thus preserving and enhancing job and tan base growth for the City. (6) The Redeveloper must continue operation of the Minimum Improvements as a "Qualified Facility" for at least five years after the Benefit Date (defined hereinafter), subject to the continuing obligation described in Section 10.3 of this Agreement. The term Qualified Facility means a health and fitness studio. The improvements will be a Qualified Facility as long as the Minimum Improvements are operated by Redeveloper or a tenant for the aforementioned qualified uses. During any period when the Minimum Improvements are vacant and not operated for the aforementioned qualified uses, the Minimum Improvements will not constitute a Qualified Facility. (7) The Redeveloper does not have a parent corporation. (8) The Redeveloper has not received, nor does it expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Redevelopment Property or the Minimum Improvements. (b) Job and Wage Goals. The "Benefit Date" of the assistance provided in this Agreement is the earlier of the date of issuance of a certificate of completion for the Minimum Improvements or the date the Minimum Improvements are occupied by the Redeveloper or a tenant. Within two years after the Benefit Date (the "Compliance Date "), the Redeveloper or a tenant shall (i) retain at least one full -time equivalent job on the Development Property, and (ii) cause the average hourly wage of the one retained job to be at least $10 per hour, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Redeveloper's continuing obligations under Sections 3.7(a)(6) and 3.7(d). The Authority may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the Authority's legislative discretion regarding this matter. (c) Remedies. If the Redeveloper fails to meet the goals described in Section 3.7(a)(3), the Redeveloper shall repay to the Authority upon written demand from the Authority a "pro rata share" of the principal amount of the Subsidy together with interest on that amount at the implicit price deflator as defined in the Business Subsidy Act, accrued from the date of substantial completion of the Minimum Improvements to the date of payment. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; 483670v1 MNIMN325 -31 (iii) if the failure relates to maintenance of the facility as a Qualified Facility in accordance with Section 3.7(a)(6), 60 less the number of months of operation as a Qualified Facility (where any month in which the Qualified Facility is in operation for at least 15 days constitutes a month of operation), commencing on the Benefit Date and ending with the date the Qualified Facility ceases operation as determined by the Authority Representative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100 %. Nothing in this Section shall be construed to limit the Authority's remedies under Article IX hereof. In addition to the remedy described in this Section and any other remedy available to the Authority for failure to meet the goals stated in Section 3.7(a)(3), the Redeveloper agrees and understands that it may not a receive a business subsidy from the Authority or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Redeveloper satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Redeveloper must submit to the Authority a written report regarding business subsidy goals and results by no later than February 1 of each year, commencing February 1, 2017 and continuing until the later of (i) the date the goals stated Section 3.7(a)(3) are met; (ii) 30 days after expiration of the period described in Section 3.7(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.7(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Redeveloper regarding the required forms. If the Redeveloper fails to timely file any report required under this Section, the Authority will mail the Redeveloper a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Redeveloper fails to provide a report, the Redeveloper must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000. Section 3.8. Payment of Administrative Costs. The Authority acknowledges that Redeveloper has deposited with the Authority a non - refundable Earnest Money deposit of $1,000. The Authority will use such deposit to pay "Administrative Costs," which term means out of pocket costs incurred by the Authority together with staff costs of the Authority, all attributable to or incurred in connection with the negotiation and preparation of this Agreement and other documents and agreements in connection with the redevelopment of the Redevelopment Property. Administrative Costs in excess of the Earnest Money deposit shall be paid by the Authority. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before closing on conveyance of the Redevelopment Property under Article III, the Redeveloper shall submit to the Authority completed Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Redevelopment Plan, the TIF Plan, this Agreement, and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if. (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the City of Monticello Comprehensive Plan and Zoning Ordinance; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Redeveloper for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. No approval by the Authority shall relieve the Redeveloper of the obligation to comply with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part, the Redeveloper shall submit new or corrected Construction Plans within 30 days after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Redeveloper desires to make any material change in the Construction Plans after their approval by the Authority, the Redeveloper shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in 483670v1 MNIMN325 -31 any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Redeveloper must commence construction of the Minimum Improvements by no later than 30 days after Closing on conveyance of the Redevelopment Property. Subject to Unavoidable Delays, the Redeveloper must substantially complete construction of the Minimum Improvements no later than the date that is one year following Closing. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the Redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Subsequent to conveyance of the Redevelopment Property, or any part thereof, to the Redeveloper, and until construction of the Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for beginning and completion thereof), the Authority will furnish the Redeveloper with a Certificate of Completion in substantially the form provided in Schedule C. Such certification by the Authority shall be (and it shall be so provided in the deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the deed with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) The certificate provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Redevelopment Property. If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the 483670v1 MNIMN325 -31 Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Redeveloper has received a certificate of occupancy issued by the City for the Minimum Improvements. Section 4.5. Remediation of Hazardous Materials. Upon remediation of the hazardous materials documented in the Limited Asbestos and Regulated Materials Survey /Inspection Report dated February 12, 2016, the Redeveloper shall provide evidence reasonably satisfactory to the Authority that the necessary work has been completed, and that the remediation activities have been inspected and approved by the relevant public authority. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE V Insurance Section 5.1. Insurance. The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements and until the Termination Date an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so- called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100 %) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so- called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above - required limits, an umbrella excess liability policy may be used); and (iii) Workers' compensation insurance, with statutory coverage. (b) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Redeveloper and the Authority at least 30 days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (c) The Redeveloper agrees to notify the Authority immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary 483670v1 MNIMN325 -31 to accomplish such repair, reconstruction, and restoration, the Redeveloper will apply the net proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Redeveloper. (d) The Redeveloper and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the Authority with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Review of Taxes. The Redeveloper agrees that prior to the Termination Date it will not cause a reduction in the real property taxes paid in respect of the Redevelopment Property through: (a) willful destruction of the Redevelopment Property or any part thereof, or (b) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as otherwise provided in Section 5.1(e). The Redeveloper also agrees that it will not, prior to the Termination Date, apply for a deferral of property tax on the Redevelopment Property pursuant to any law, or transfer or permit transfer of the Redevelopment Property to any entity whose ownership or operation of the property would result in the Redevelopment Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City or Authority in accordance with this Agreement). (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE VII Financing Section 7.1. Financing. (a) Before conveyance of the Redevelopment Property, the Redeveloper shall submit to the Authority evidence of one or more commitments for mortgage financing which, together with committed equity for such construction, is sufficient for the construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long -term take -out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the Authority finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the Authority shall notify the Redeveloper in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the Authority is provided the evidence of financing. A failure by the Authority to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the Authority rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Redeveloper shall submit adequate evidence of financing within thirty (30) days after such rejection. Approval of any subordination agreement under Section 7.3 hereof will constitute approval of financing for the purposes of this Section. Section 7.2. Authority's Option to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Redeveloper shall cause the Authority to receive copies of any notice of default received by the Redeveloper from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage documents. In the event there is an event of default under this Agreement, the Authority will transmit to the Holder of any Mortgage a copy of any notice of default given by the Authority pursuant to Article IX of this Agreement. Section 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to facilitate the Redeveloper obtaining financing for purchase of the Redevelopment Property and for construction of the Minimum Improvements according to the Construction Plans, the Authority agrees to subordinate its rights under this Agreement, including without limitation its rights of reverter as to the Redevelopment Property under Sections 9.3 and 9.4 hereof, provided that (a) such subordination shall be subject to such reasonable terms and conditions as the Authority and Holder mutually agree in writing, and (b) the Authority's obligation to subordinate is contingent on the Authority's approval of the financing in accordance with Section 7.1 hereof. 483670v1 MNIMN325 -31 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Redevelopment. The Redeveloper represents and agrees that its purchase of the Redevelopment Property or portions thereof, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of Redevelopment of the Redevelopment Property and not for speculation in land holding. Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignment of Agreement. The Redeveloper represents and agrees that until the Termination Date: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to making the Minimum Improvements under this Agreement, and any other purpose authorized by this Agreement, the Redeveloper has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the Authority unless the Redeveloper remains liable and bound by this Redevelopment Agreement in which event the Authority's approval is not required. Any such transfer shall be subject to the provisions of this Agreement. (b) In the event the Redeveloper, upon transfer or assignment of the Redevelopment Property or any portion thereof, seeks to be released from its obligations under this Redevelopment Agreement as to the portions of the Redevelopment Property that is transferred or assigned, the Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property to be transferred. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Redeveloper under this Agreement as to the portion of the Redevelopment Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Redevelopment Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the 483670v1 MNIMN325 -31 Authority) deprive the Authority of any rights or remedies or controls with respect to the Redevelopment Property or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Minimum Improvements that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Minimum Improvements, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. In the event the foregoing conditions are satisfied then the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred, assigned or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) The Redeveloper releases from and covenants and agrees that the Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the Authority and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Redeveloper agrees to protect and defend the Authority and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) The Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or property of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Redevelopment Property or Minimum Improvements due to any act of negligence of any person. 483670v1 MNIMN325 -31 (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority in the individual capacity thereof. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides): (a) any failure by any party to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between the Redeveloper and the Authority in connection with redevelopment of the Redevelopment Property; and (b) any default by Redeveloper under a Mortgage, if any. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non - defaulting party may exercise its rights under this Section 9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non - defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Cancel and rescind or terminate the Agreement. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 9.3. Revesting Title in AuthoritUpon Happening of Event Subsequent to Conveyance to Redeveloper. In the event that subsequent to conveyance of the Redevelopment Property to the Redeveloper and prior to receipt by the Redeveloper of the Certificate of Completion for the Minimum Improvements required to be constructed on the Redevelopment Property: (a) the Redeveloper, subject to Unavoidable Delays, shall fail to begin construction of the Minimum Improvements in conformity with this Agreement and such failure to begin construction is not cured within 90 days after written notice from the Authority to the Redeveloper to do so; or (b) subject to Unavoidable Delays, the Redeveloper after commencement of the construction of the Minimum Improvements, fails to carry out its obligations with respect to the 483670v1 MNIMN325 -31 construction of such improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within 90 days after written demand from the Authority to the Redeveloper to do so; or (c) the Redeveloper fails to pay real estate taxes or assessments on the parcel or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the parcel (except to the extent permitted by this Agreement), or shall suffer any levy or attachment to be made, or any materialmen's or mechanics' lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to the Authority made for such payment, removal, or discharge, within thirty (30) days after written demand by the Authority to do so; provided, that if the Redeveloper first notifies the Authority of its intention to do so, it may in good faith contest any mechanics' or other lien filed or established and in such event the Authority shall permit such mechanics' or other lien to remain undischarged and unsatisfied during the period of such contest and any appeal and during the course of such contest the Redeveloper shall keep the Authority informed respecting the status of such defense; or (d) there is, in violation of the Agreement, any transfer of the parcel or any part thereof, or any change in the ownership or distribution thereof of the Redeveloper, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and such violation is not cured within sixty (60) days after written demand by the Authority to the Redeveloper, or if the event is by its nature incurable within 30 days, the Redeveloper does not, within such 30 -day period, provide assurances reasonably satisfactory to the Authority that the event will be cured as soon as reasonably possible; or (e) the Redeveloper fails to comply with any of its other covenants under this Agreement related to the Minimum Improvements and fails to cure any such noncompliance or breach within thirty (30) days after written demand from the Authority to the Redeveloper to do so, or if the event is by its nature incurable within 30 days, the Redeveloper does not, within such 30- day period, provide assurances reasonably satisfactory to the Authority that the event will be cured as soon as reasonably possible; or (f) the Holder of any Mortgage secured by the subject property exercises any remedy provided by the Mortgage documents or exercises any remedy provided by law or equity in the event of a default in any of the terms or conditions of the Mortgage, Then the Authority shall have the right to re -enter and take possession of the Redevelopment Property and to terminate (and revest in the Authority) the estate conveyed by the deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Redevelopment Property to the Redeveloper shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Redeveloper and failure on the part of the Redeveloper to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Authority at its option may declare a termination in favor of the Authority of the title, and of all the rights and interests in and to the Redevelopment Property conveyed to the Redeveloper, and that such title and 483670v1 MNIMN325 -31 all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the parcel, shall revert to the Authority, but only if the events stated in Section 9.4(a) -(f) have not been cured within the time periods provided above. Section 9.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Authority of title to and/or possession of the Redevelopment Property or any part thereof as provided in Section 9.3, the Authority shall, pursuant to its responsibilities under law, use its best efforts to sell the Redevelopment Property or part thereof as soon and in such manner as the Authority shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan and TIF Plan to a qualified and responsible party or parties (as determined by the Authority) who will assume the obligation of making or completing the Minimum Improvements or such other improvements in their stead as shall be satisfactory to the Authority in accordance with the uses specified for such parcel or part thereof in the Redevelopment Plan and TIF Plan. During any time while the Authority has title to and/or possession of a parcel obtained by reverter, the Authority will not disturb the rights of any tenants under any leases encumbering such parcel. Upon resale of the parcel, the proceeds thereof shall be applied: (a) First, to reimburse the Authority for all costs and expenses incurred by it, including but not limited to salaries of personnel, in connection with the recapture, management, and resale of the parcel (but less any income derived by the Authority from the property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the parcel or part thereof (or, in the event the parcel is exempt from taxation or assessment or such charge during the period of ownership thereof by the Authority, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Authority assessing official) as would have been payable if the parcel were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the parcel or part thereof at the time of revesting of title thereto in the Authority or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Redeveloper, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the subject improvements or any part thereof on the parcel or part thereof, and any amounts otherwise owing the Authority by the Redeveloper and its successor or transferee; and (b) Second, to reimburse the Redeveloper, its successor or transferee, up to the amount equal to (1) the purchase price paid by Redeveloper under Section 3.2; plus (2) the amount actually invested by it in making any of the subject improvements on the parcel or part thereof, less (2) any gains or income withdrawn or made by it from the Agreement or the parcel. Any balance remaining after such reimbursements shall be retained by the Authority as its property. Section 9.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle 483670v1 MNIMN325 -31 the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.6. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests, Authority Representatives Not Individually Liable. The Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or City or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non - discrimination laws and regulations. Section 10.3. Restrictions on Use. The Redeveloper agrees that until the Termination Date, the Redeveloper, and such successors and assigns, shall use the Redevelopment Property and the Minimum Improvements thereon only as a health and fitness facility. Further, until the Termination Date the Redeveloper shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at Hallie Leffingwell dba We Thrive Fitness, [address]; and 483670v1 MNIMN325 -31 (b) in the case of the Authority, is addressed to or delivered personally to the Authority at City of Monticello Economic Development Authority, 505 Walnut Street, Monticello, Minnesota 55362, Attn: Executive Director; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the County recorder. The Redeveloper shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Redeveloper. Section 10.10. AuthorityApprovals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative. Section 10.11. Termination. This Agreement terminates on the Termination Date. Within 30 days after the Termination Date, the Authority will deliver to Redeveloper a written release in recordable form satisfactory to Redeveloper, evidencing termination of this Agreement. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (The remainder of this page is intentionally left blank.) 483670v1 MNIMN325 -31 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its Chair By Its Executive Director STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of 2016, by and , the Chair and Executive Director of the City of Monticello Economic Development Authority, a public body politic and corporate, on behalf of the Authority. Notary Public S -1 483670v1 MNIMN325 -31 HALLIE LEFFINGWELL DBA WE THRIVE FITNESS STATE OF MINNESOTA ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2016 by Hallie Leffingwell dba We Thrive Fitness. Notary Public S -2 483670v1 MNIMN325 -31 SCHEDULE A DESCRIPTION OF REDEVELOPMENT PROPERTY The South' /2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South 1/2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid -point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot 1 for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. A -1 483670v1 MNIMN325 -31 SCHEDULE B FORM OF QUIT CLAIM DEED THIS INDENTURE, between the City of Monticello Economic Development Authority, a public body corporate and politic (the "Grantor "), and Hallie Leffingwell dba We Thrive Fitness, an individual (the "Grantee "). WITNESSETH, that Grantor, in consideration of the sum of $45,000 and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Wright and State of Minnesota described as follows, to -wit (such tract or parcel of land is hereinafter referred to as the "Property"): The South 1/2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South 1/2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid -point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot I for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. gFCTT0N 1 It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the day of August, 2016, identified as "Purchase and Redevelopment Contract" (hereafter referred to as the "Agreement ") and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable redevelopment program and applicable provisions of the zoning ordinance of the City of Monticello, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the Redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. B -1 483670v1 MNIMN325 -31 Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certifications and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Wright County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Section 9.3 of the Agreement relating to the Grantor's right to re -enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with all provisions of the Agreement that relate to the Property or use thereof for the periods specified in the Agreement, including without limitation the covenant set forth in Section 10.3 thereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner B -2 483670v1 MNIMN325 -31 of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re -enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. SECTION 4. This Deed is also given subject to: (a) Provision of the ordinances, building and zoning laws of the City of Monticello, and state and federal laws and regulations in so far as they affect this real estate. (b) [Any other permitted encumbrances after Redeveloper's title review] Grantor certifies that it does not know of any wells on the Property. B -3 483670v1 MNIMN325 -31 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director and has caused its corporate seal to be hereunto affixed this day of , 2016. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF WRIGHT ) On this day of , 2016, before me, a notary public within and for Wright County, personally appeared and to me personally known who by me duly sworn, did say that they are the President and Executive Director of the City of Monticello Economic Development Authority (the "Authority ") named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed on behalf of said Authority pursuant to a resolution of its governing body; and said and acknowledged said instrument to be the free act and deed of said Authority. Notary Public This instrument was drafted by: Kennedy & Graven, Chartered (MNI) 470 US Bank Plaza 200 South 61' Street Minneapolis, Minnesota 55402 B-4 483670v1 MNIMN325 -31 SCHEDULE C FORM OF CERTIFICATE OF COMPLETION C -1 483670v1 MNIMN325 -31 CERTIFICATE OF COMPLETION WHEREAS, the City of Monticello Economic Development Authority, a public body, corporate and politic (the "Grantor "), conveyed land in Wright County, Minnesota to Hallie Leffingwell dba We Thrive Fitness (the "Grantee "), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Wright and State of Minnesota, as Document Numbers and , respectively; and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to completing certain Minimum Improvements to be constructed on property described in the Contract; and WHEREAS, the Redeveloper has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimum Improvements specified to be done and made by the Redeveloper have been completed and the agreements and covenants in Articles III and IV of the Contract have been performed by the Redeveloper, and this Certificate is intended to be a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Contract related to completion of the Minimum Improvements, but any other covenants in the Contract shall remain in full force and effect. Dated: 20 C -2 483670v1 MNIMN325 -31 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ss COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 20, by and Executive Director, respectively, Authority, on behalf of the authority. and , the President of the City of Monticello Economic Development Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337 -9300 C -3 483670v1 MNIMN325 -31 Beacon 71V Wright County, MN Overview Legend Roads — CSAHCL — CTYCL MUNICL PRIVATECL TWPCL Highways Interstate — State Hwy US Hwy City/Township Limits c t Parcels Parcel ID 155010050011 Alternate ID n/a Owner Address n/a Sec/Twp /Rng 11- 121 -025 Class 958 - MUNICIPAL PUBLIC SERVICE -OTHER Property Address 349 BROADWAY W Acreage n/a MONTICELLO District n/a Brief Tax Description Sect-11 Twp- 121 Range -025 ORIGINAL PLAT MONTICELLO Lot-001 Block- 050S1/2 OFLTS1,2 &3 (Note: Not to be used on legal documents) Date created: 8/5/2016 Developed by Schneider The Schneider Corporation Legend BASE ZONING DISTRICTS Residential Districts Business Districts Low Residential Densities 8 -1 ® A-0 8 -2 R-A B -3 R-1 B -4 Medium Residential Densities CCD 0 R2 Industrial Districts R- P 111�7 IBC 1.1 Nigh Residential Densities 1 -2 R -3 - R-4 Puns _ A4-H Ol , Swan River OVERLAY DISTRICTS I_ _I Performance Based Overlay District Special Use Overlay District r — — I Mississippi Wild. Scenic & Rec Overlay District ® Shoreland District 1 Freeway Bonus Sign District OTHER 0 Water A-A FRA 449 West Broadway Vti 0 m c c 4 X1/1 w•�G �i • �� t o WeThrive Fitness LLC Proposed Exterior Enhancements — 349 West Broadway St WeThrive Fitness would like to maintain the "retro- garage" feel of the building while updating the look to create a sharp, clean appearance that will be functional and unique. The overall effect will be both appealing and intriguing to drive -by traffic. We visualize throwing open the garage doors in the summer mornings to reveal our clientele working the heavy bags in the boxing portion of the garage, and creating window space to allow a sight -line in the winter time for drive -by traffic. WeThrive Fitness has a unique capability to capitalize on preserving Fred's Auto Body Shop rather than tearing it down, as most buyers would be inclined to do in its current state. Primary Exterior Changes Paint: The enameled metal of the building will be preserved and repainted from white to gray and the black stripe redone. Lighting: Old, inefficient exterior canopy lighting will be replaced with efficient LED lighting up -to -codes with exterior lighting near a residential area. Parking: Parking will be cordoned off and restriped on the west side of the parcel in accordance with city codes. Glass Block Windows: Will be preserved with strategic blocks replaced with ventilation blocks to allow for airflow. Empty Door Frames Signoge Old door frames will be fitte with double -paned glass for Insertion of marketing materials /displays. Metal Applique signs of approximately 4x4 will be added. Signs will be designed /made by Jason Hoglund. Angela Schumann From: Jim Thares Sent: Monday, August 1, 2016 10:47 AM To: Angela Schumann Subject: FW: Parking Attachments: Parking 349 W Broadwayjpg Angela, attached is Hallie Leffingwell's site plan for 349 West Broadway Street. From: Hallie Leffingwell [mailto:wethrivefitness @gmail.com] Sent: Monday, August 01, 2016 10:45 AM To: Jim Thares Subject: Parking Good Morning Jim, I'm attaching a copy of my site plan for the parking for 349 W Broadway St. Based off the requirements for the Personal Services Commercial Property Requirements of 1.0 space per 250 sq. ft of floor space, the site would require a max of 6 spaces (if you base the floor space as the whole building vs. 4 spaces if you base off usable floor space of approx. 900 sq. ft.). The spaces are within the requirements of 20 ft. long and 9 ft wide and accessible. Please let me know if you see any issues and I will be happy to fix them. Have a great Monday, Hallie Leffingwell Owner, WeThrive Fitness LLC 8311 �s AetyNpeojg Ilet.Napis EDA Agenda: 8/10/16 8. Consideration of accepting 2016 TIF Management (JT) A. REFERENCE AND BACKGROUND: The EDA contracted with Northland Securities in early 2016 to complete a management analysis and recommendations for the EDA's many TIF districts. The extensive work that has been completed is contained in the 2016 TIF Management Plan. As stated in the Plan Overview, it is "intended to be a practical guide ... for the ongoing management of the City's TIF Districts and available funds ". Tammy Omdal, Northland Securities, will be in attendance at the meeting to walk the EDA through the report and the Plan recommendations. The 73 page report is attached for your review. Al. Staff Impact: The City's Community Development Department and the Finance Department staff along with Martha Ingram, the EDA Attorney, were involved in monitoring and consulting with Northland during the systematic review of the information on each of the TIF Districts and the issues that were revealed or action items that became apparent for each District. Staff were prepared to be involved in the oversight of the contracted work via monthly meetings with Northland to review progress and work through issues. A2. Budget Impact: The costs for preparing the Plan were determined in the original contract. The total amount authorized for completion of the TIF Management Plan is $7,000 (not to exceed). To date the report project has not required any additional work or unexpected charges. The EDA has been invoiced for and paid out approximately 70 percent of the work to date with the final invoice yet to be paid. B. ALTERNATIVE ACTIONS: 1. Motion to accept the 2016 TIF Management Plan prepared by Northland Securities. 2. Motion to deny acceptance of the 2016 TIF Management Plan prepared by Northland Securities. 3. Motion to table acceptance of the 2016 TIF Management Plan prepared by Northland Securities for further research or information. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative 41 wherein the EDA accepts the 2016 TIF Management Plan prepared by Northland Securities. The Plan is a valuable, helpful tool that will guide the EDA in the use of funds /resources for current and future development projects. It also ensures the EDA stays compliant with the various statutory changes and adjustments that annually affect TIF Districts and increment usage. D. SUPPORTING DATA: A. 2016 TIF Management Plan prepared by Northland Securities 2 ,FYI r� Management Plan for Tax Increment Financing Districts Monticello Economic Development Authority 2016 UPDATE August 3, 2016 NORTHLAND SECURITIES Northland Securities, Inc. 45 South 7th Street, Suite 2000 Minneapolis, MN 55402 (800) 851 -2920 Member NASD and SIPC Contents Introduction PlanOverview .............................................................................................................. ............................... 1 ActionsTaken ............................................................................................................... ............................... 1 Organizationof the Plan ........................................................................................... ..............................1 StudyApproach ............................................................................................................ ..............................1 Usingthe Plan ............................................................................................................... ..............................2 Overview of TIF in Monticello .................................................................................. ..............................3 Current Status of TIF Dis tricts ................................................................. ............................... 3 ProjectArea ................................................................................................ ............................... 3 TheAuthority .............................................................................................. ............................... 3 Figure 1 - Map of Central Monticello Redevelopment Project No. 1 ......... ..............................5 Table 1 - Summary of Key Information for TIF Districts .................................. ..............................6 Management Plan 7 ExecutiveSummary .................................................................................................... ............................... 7 Pre -1990 Districts ....................................................................................... ..............................7 Post1990 -Sound Plans ............................................................................ ..............................7 Post 1990 - Management Challenges ................................................... ..............................7 RegulatoryFramework .............................................................................................. ..............................8 Overall Management Strategy ............................................................................... ............................... 9 TIFRecord Books ........................................................................................ ............................... 9 Coordination With Wright County ......................................................... ..............................9 Administrative Expense ........................................................................... .............................10 Developmen t Ag reemen ts ...................................................................... .............................10 AnnualReporting ...................................................................................... .............................10 StatutoryFactors ......................................................................................................... .............................10 Administrative Expense ........................................................................... .............................11 KnockDown ............................................................................................... .............................11 Pooling......................................................................................................... .............................11 FiveYear Rule .............................................................................................. .............................12 SixYear Rule ................................................................................................ .............................13 Decertification............................................................................................ .............................13 Industrial Land Development ................................................................................. .............................13 District Summary 14 DistrictSummaries ..................................................................................................... .............................14 Table 2 -Tax Increment Financing Districts - Fund Balances ....................... .............................15 District1 -6 ( Raindance) ............................................................................................ .............................16 District 1 -19 (Mississippi Shores) ........................................................................... .............................19 District 1 -20 (Prairie West) ........................................................................................ .............................23 District1 -22 ( Downtown) ......................................................................................... .............................27 District 1 -24 (Church of St. Henry) ........................................................................ .............................32 District 1 -29 (Front Porch Associates) .................................................................. .............................36 District1 -30 ( CMHP) ................................................................................................... .............................40 District 1 -34 (Monticello Interchange) ................................................................ .............................44 District 1 -35 (Landmark Square II) ........................................................................ .............................48 District 1 -36 (Rocky Mountain Group) ................................................................. .............................51 District1 -38 ( Walker) ................................................................................................. .............................54 District 1 -39 (Otter Creek Crossing) ...................................................................... .............................57 Appendix 60 Table 3 - Wright County Report on Knock Down Status ............................... .............................60 Excerptsfrom TIF Act ................................................................................................. .............................61 Administrative Expense ........................................................................... .............................61 DistrictLimitations ................................................................................... .............................61 KnockDown ............................................................................................... .............................62 Pooling and Five -Year Rule ...................................................................... .............................63 Modificationof Plan ................................................................................. .............................68 Decertification............................................................................................ .............................69 Introduction Plan Overview development and affordable housing goals. This Management Plan serves as a guide for the manage- ment of the tax increment financing districts within the City of Monticello (collectively, the "TIF Districts "). The Plan contains overall management strategies and key fac- tors that influence the use of tax increment for the districts within the City of Monticello (the "City ").This Plan was first prepared in 2009 and then updated most recently in 2012. Actions Taken The Monticello Economic Development Authority (the "EDA ") has taken action on many key items since the last TIF Management Plan was completed in year 2012. The key items are as follows: • Acted to decertify the following TIF Districts: • TIF 1 -5 (Redevelopment) decertified and fund closed; • TIF 1 -6 (Redevelopment) decertified; • TIF 1 -36 (Economic Development) decertified; and • TIF 1 -37 (Economic Development) decertified and fund closed • Advanced the implementation of the downtown study, "Em- bracing Downtown" focused on marketing, land use, transportation, financing, and implementation strate- gies. • Purchased key parcels for redevelopment to advance eco- nomic development plans. • Provided funding for road improvement projects to help facili- tate redevelopment. • Adopted a plan allowing for pooling of available tax increment dollarsfromTIF 1 -22 (Downtown) to assist with meeting re- Continued to meet all obligations on outstanding loans, notes, and bonds for all of the TIF Districts. Organization of the Plan The Plan is organized following the same general outline used for the 2009 and 2012 Plans. The Plan is organized into three sections: 1. Introduction provides background information about the Plan, the process used to study the TIF Districts, and a general description of system of tax increment financing districts. 2. Management Plan discusses management issues that apply to all TIF Districts in the City. 3. District Summaries focuses on each individual TIF District. The summaries contain management strate- gies and financial data for each district. Information is provided on actions items and accomplishments that have occurred since 2012. Study Approach The study and this Plan was prepared by Northland Secu- rities. The following steps were taken as part of the study process: Key data was obtained from project files for each TIF district. This data includes excerpts of TIF plans and development agreements that establish the param- eters for the use of tax increment. • Dates related to the establishment and certification of the districts were verified. These dates determine the timing constraints for each district. • Wright County provided the current base tax capacity value, and the current increment tax capacity value for 1 the districts for taxes payable 2016. • Historical revenues, expenditures and fund balances come from financial data provided by the City. The fi- nancial summaries included in the Plan balance to the City's audited 2015 year -end financial statements. • The study approach did include reconciling revenue and expense, and balance sheet line items, to the an- nual reports the City filed with the Office of the State Auditor for fiscal year end 2014. The current balances for bond, note and interfund loan obligations represent the amount outstanding on December 31, 2015, as included in the City's audit- ed 2015 year -end financial statements and other doc- uments provided by the City for pay -go obligations. It is also important to note aspects not reviewed as part of this study, which are as follows: • This study is not intended to be an audit of the use of TIF within the City. • Northland did not specifically review project data to determine compliance with the terms of development agreements, including verification of invoices, etc. Using the Plan The Plan is intended to be a practical guide for citystaff, the EDA, and the City Council for the on -going management of the City's TIF Districts and available funds. As shown by use of both the prior 2009 and 2012 Plans, much of the in- formation in the Plan has enduring value and will serve to continue to guide management decisions over the life of the TIF Districts. It is important to note that management of the TIF Districts is dynamic and impacted by changes that are often times out of the EDA's direct control. For example, property values, tax rates, statutes and rules change from year -to -year. The Plan should be the founda- tion of an annual review and management plan update. This strategy is described in greater detail in the Manage- ment Plan section. Introduction k] Overview of TIF in Monticello Current Status of TIF Districts within the City The City has ten (10) established and active TIF Districts. In addition to these ten, the City also has two (2) TIF Districts that have been decertified but had reported fund balanc- es as of fiscal year -end 2015. The oldest district that remains open is TIF 1 -6, which was decertified effective December 31, 2013, but has a fund balance outstanding as of December 31, 2015. TIF 1 -6 was originally established in 1985 as a redevelopment district. District No. 1 -39 is the newest district established August 22, 2011. The following districts were included in the 2012 Plan but were subsequently decertified and the related funds closed and therefore are not included in this Plan:TIF 1 -5; and TIF 1 -37. Table 1 on page 6 summarizes the primary information for each TIF district. This information can also be found in the summary for the specific districts later in the Plan. The relevance of data will be explained in the Manage- ment Plan section, beginning on page 7. Project Area All TIF districts are part of Central Monticello Redevelop- ment Project Area No. 1. Figure 1 on page 5 provides a map that shows the boundaries of the Project Area and of each TIF District. The Project Area covers a large portion of the City. The primary economic development and redevelop- ment areas of the City fall into the Project Area. The primary function of the Project Area is to define the areas for use of tax increment financing. State Law re- quires each TIF District to be located with the boundaries of a project area. Subject to legal constraints applicable to each district, monies from a tax increment financing district can be spent outside theTIF district, but within the Project Area (commonly referred to as "Pooling "). The flexibility to spend tax increment revenues through- out the City was more relevant in the earlier years of TIF use. Prior to 1990, cities faced relatively little statutory limitation on the ability to spend tax increments on devel- opment activities outside of the TIF district, the pooling of funds. In 1990, the Legislature placed specific limits on pooling (see "Pooling "in Management Plan section). These statutory changes significantly diminished the need for an expansive project area. Despite these changes, the Central Monticello Redevelopment Project Area No.1 con- tinues to serve as a reasonable project area for the estab- lishment of TIF districts. The Authority The Monticello Economic Development Authority (the "EDA ") is designated as the statutory "authority" for all ex- isting TIF Districts in Monticello. The EDA is responsible for administering the TIF Districts and managing the plans for each TIF District. Generally, unless State Law specifically requires action by the City Council, all management powers for TIF districts are held by the EDA. The EDA is responsible for: • Managing TIF Plans for each of the TIF Districts to en- sure compliance with State Law. • Making decisions about the expenditure of funds col- lected by each TIF District. • Administering development agreements. • Preparing annual disclosure and reports. • Determining the appropriate time for decertification of a TIF District. Introduction • Authorizing interfund loans payable from EDA funds. The City Council approves the initial establishment of a TIF District. Future City Council approval (and a public hear- ing) is needed for certain plan modifications: • Changing the area of the district. • Increasing bonded indebtedness. • Determining the need to capitalize interest on bonds. • Increasing the portion of the captured tax capacity to be retained. • Increasing the budget (estimated project costs) for the district. • Designating additional parcels for public acquisition. The City Council is responsible for the issuance of general obligation bonds. When TIF Bonds are issued, the City and the EDA must enter into a pledge agreement for the con- veyance of tax increments used to pay principal and inter- est on the bonds. Introduction 4 Introduction Figure 1 Map of Central Monticello Redevelopment Project No. 1 and Boundaries of TIF Districts within the Project Area 5 Introduction Table 1 City of Monticello Summary of Tax Increment Financing (TIF) Districts TIF Districts Not Decertified or Fund Balance Remaining After Decertification, As of Fiscal Year End 2015 M Executive Summary This Management Plan section contains an overall man- agement plan for all of the TIF Districts. It presents strate- gies and issues that apply to all TIF districts. The section that follows is the District Summary section, which con- tains an individual district summary for each TIF district. The District Summary presents information and manage- ment strategies for the unique factors of each district. Monticello TIF districts fall into three broad categories: 1. Pre -1990. 2. Post -1990 with sound finance plans. 3. Post -1990 with management challenges. Pre -1990 Districts TIF District 1 -6 is the only remaining TIF district (decer- tified) with a fund balance that was established prior to 1990. This timing is important because pre -1990 districts are not encumbered by the limitations on pooling and the five -year rule (see discussion later in this section) . For this one remaining pre -1990 district, the decision facing the EDA is whether the fund for TIF District 1 -6 should be closed and funds returned to the County for redistribution or whether the remaining resources should continue to be held and used for public purposes as allowed by the TIF plan for the TIF District 1 -6 and State law. Post 1990 - Sound Plans With the exception of TIF District 1 -6, all other TIF Districts that are active were established after 1990. The statutory framework for these districts generally limits the ability to use them beyond their original purposes. TIF districts with "sound plans" have tax increment revenues that are projected to be sufficient to meet obligations against the districts (or districts with current fund balance in excess of outstanding obligations). These obligations consist of either notes with developers or interfund loans. In some cases, the projected tax increment shows that a district may be decertified prior to the final decertification date in the TIF plan. Districts in this category of "Post 1990 - Sound Plans "are as follows: TIF Districts 1 -19, 1 -20, 1 -24, 1 -29, 1 -30, and 1 -36. Post 1990 - Management Challenges While the majority of the City's TIF districts are in sound financial condition, five of the districts present financial management challenges that require active on -going management. These TIF Districts are as follows and de- scribed in more detail below: TIF Districts 1 -22, 1-34,1-35, 1 -38, and 1 -39. District 1 -22 District 1 -22 (downtown) is the largest and most complex. Statutory restrictions on pooling and the five -year (and six -year) rule limit the ability to use existing fund balances and future tax increments. The management plan for this district describes strategies for making the most effective use of these resources. District 1 -34 District 1 -34 (interchange) consists of thirteen parcels adjacent to Interstate 94. The district has not generated tax increment at the levels anticipated at time of estab- lishment of the district and at time of issuance of general obligation bonds to finance improvements to the east in- terchange with Interstate 94. The City has provided other sources of revenue to pay debt service on the bonds. The support from the City is projected to continue. District 1 -35 District 1 -35 consists of two parcels that were removed Management Plan 7 from the original Downtown district (1 -22) and made into a new redevelopment TIF district. The development an- ticipated in this district has not occurred. The factors that enabled the creation of the district have been removed. The district is presently not generating any tax increment because redevelopment as not yet occurred. The proper- ty owner has been in recent contact with the City and the EDA about other concepts for development the property, including the development of housing units. District 1 -38 The focus of this District will be the repayment of the in- terfund loan. Current projections estimate at the time of decertification the interfund loan will have an outstanding balance of $118,178. This assumes no increase in the col- lection of annual tax increment between 2016 and 2017. To the extent that tax increment collection is greater than projected then additional funds will be available for re- payment of the interfund loan. Any unpaid balance due to the EDA general fund will need to be written -off when the Fund for the District is closed. District 1 -39 The focus of District 1 -39 is the repayment of an interfund loan. It is estimated that at the time of decertification the interfund loan will have an outstanding balance of $78,693. This assumes no increase in the collection of tax increment between 2016 and 2021. To the extent that tax increment is greater than projected then additional funds will be available for repayment of the interfund loan. Any unpaid balance due to the EDA general fund will need to be written -off when the Fund for the District is closed. Regulatory Framework The challenge of effectively managing TIF districts comes from a complex regulatory framework. The use of tax in- crements for any district is governed by four distinct fac- tors: 1. State Law at the time the district is created. 2. Current State Law. 3. Adopted plan for the TIF district. 4. Development agreement. Tax increment financing is governed by a complex set of statutes that have changed over time. An important nu- ance for management of TIF districts is the relevance of the laws in existence at the time a district is established. These laws establish the majority of critical criteria for the use of tax increment from a district. Most aspects for the on -going use of tax increments from a district are gov- erned by the statutes in effect when the district is estab- lished. Among these factors are: Ability to spend money outside of the TIF district (pooling). Application of the five -year rule and the six -year rule. • Limitations on administrative expense. The implications of these factors are discussed in this sec- tion and in the individual district summaries. Current State Law sets the parameters for creating newTIF districts. The primary on -going influence of current stat- utes relates to reporting requirements for districts. All dis- tricts, regardless of when created, are subject to the same annual reporting. Within statutory constraints, the City sets the parameters for the use of tax increment financing in the TIF plan. Tax increments cannot be used for purposes not authorized in the plan. The amount of spending cannot exceed the estimated project costs contained in the plan. The City Management Plan N. cannot incur bonded indebtedness unless so authorized by the plan and the amount of debt cannot exceed limits set in the plan. The plan also sets the maximum period of time the City can collect tax increment from the district. This Plan contains many of the key management elements from the individual TIF plans for each of the districts. Di- rect reference to the actual TIF plan for a district should be made before making changes or authorizing new uses of tax increment from any district. The development agreement is the final piece of the regu- latory framework. A development agreement defines the factors that control the use of TIF for specific projects. The agreement describes the actions to be taken by the de- veloper. If these actions are completed, the City agrees to use TIF to pay for certain costs of development. Monticello uses two basic approaches to pay for project costs: interfund loans and developer notes. Both are con- sidered to be bonds under the TIF statutes. An interfund loan is a means for using EDA reserves (or other funds) to provide immediate assistance to a project. Tax increments are used to repay the loan with interest. With a developer note, the City agrees to reimburse a developer for specific project costs. The typical development agreement uses a specified percentage of annual tax increment from the district (or specified parcels in the district) to repay the de- veloper at a stated rate of interest on the unpaid balance. This approach is also called "pay -as- you -go': Overall Management Strategy The focus of this Plan is on the management of existing TIF districts. As part of the process of reviewing existing districts an overall strategy for the ongoing management of all of the TIF districts is offered. Much of the recom- mended strategy offered here is based on existing prac- tices employed by the EDA staff. The purpose of including this information is to clearly identify and institutionalize these practices. TIF Record Books Preceding the 2009 Plan, the EDA staff undertook a re- cords management project. This project organized the documents for each TIF district into a set of record books. The use of record books has been part of staff's practice for new districts. The real value of TIF record books comes from making them the central repository of all document and reporting related to a district. Important documents should continue to be added to the record books over the life of the district. Coordination With Wright County The County is a critical player in the management of TIF districts. The process begins with the request for certifica- tion of a district. Important elements of the relationship with the County include: • Certification Information. It is the EDA's responsibility to review, the Original Tax Capacity value, the Original Tax Rate and the parcel listing to ensure that the dis- trict is properly certified. Changes in the Original Tax Capacity, Vim. The Origi- nal Tax Capacity value may change from the value initially certified by the County. In reality, the County sets the base value of the district using the Estimated Market Value of the parcels in a district. The Origi- nal Tax Capacity may change over time according to changes to the property classification of parcels with- in a district. • Parcel Identification Numbers. Annexation, platting and parcel splits may alter parcel identification num- bers after certification of a district. The EDA should Management Plan annually review parcels numbers for each district to track and verify district boundaries. Changes in parcel numbers should be noted in the TIF record book. Knockdown. Monitoring parcel identification num- bers also allows the EDA to track the value parcels that have been removed through "knockdown" require- ments (see Knockdown under Statutory Factors on page 11). At the end of a TIF districts knockdown period, the EDA must inform the County of the parcels (if any) that are subject to knockdown. This approach ensures that parcels are not incorrectly removed from the district. It also places the EDA in a good position to know the relevant parcels, monitor activity on each parcel and to seek restoration of the value at the earliest oppor- tunity. The EDA has completed reporting to the County on the knock down status of all parcels located within each of the active TIF districts within the City. District 1 -22 is the only active TIF district that included parcels that were "knocked- down" (see Table 3 in the Appendix on page 60 for the report from Wright County). Administrative Expense Special attention should be given to accounting for ad- ministrative expense. The purpose of this strategy is two- fold. First, it allows the City to monitor compliance with statutory limitations (see Administrative Expense under Statu- tory Factors in this section on page 11). Second, account- ing for administrative expense is needed to determine the capacity for spending tax increments outside of the TIF district (see Pooling under Statutory Factors on page 11). Development Agreements While each development agreement is unique, they all share the need for clear record keeping. Among the items to track for each agreement are: • Documentation of developer expenditures for items eligible for reimbursement with TIF. • Documentation of developer compliance with other elements of agreement needed to receive reimburse- ment. • Establishment of date for accrual of interest under de- veloper note and calculation of additional principal from accrued interest. • Ongoing amortization of developer note. Annual Reporting The Plan is intended to be the foundation for ongoing management of the TIF districts. An important recom- mendation of the original 2009 Plan was to expand the annual reporting required by State Law to include the up- dating of the profiles for each TIF district. Parts of the 2009 recommendation were implemented and the EDA has been continuing to receive annually (in the spring) a sum- mary of all revenue and expenses and outstanding obliga- tions by district. The annual report provides a process for monitoring the factors described in the previous section. The on -going updating and review process allows the EDA to take a proactive approach with TIF management. Planning begins prior to budgeting for the next fiscal year. Decisions about district decertification can be made in a time frame that makes the district value available for gen- eral taxation in the next year. Statutory Factors Several elements of State Law are particularly relevant to the ongoing management of TIF districts. These include the following elements as described individually in more detail below: administrative expense, knock -down, pool- ing, five -year rule, and decertification. Management Plan 10 Administrative Expense Administrative expense may not exceed the lesser of 10% of the total estimated tax increment expenditures authorized by the TIF plan or 10% of the total tax incre- ments from the district (excluding any excess taxes under 469.177). An example of excess taxes is the taxes paid from captured tax capacity produced by a local tax rate that exceeds the original tax rate for the district. This rule applies to all districts requesting certifications after July 31, 2001. The limitation applies to District 1 -29 and newer. A slightly different limitation applies to older districts. The restriction on excess taxes does not apply. Administrative expense cannot exceed 10% of the lesser of the total es- timated tax increment expenditures authorized by the TIF plan or 10% of the total tax increments for the project. The limitation applies to District 1 -24 and older. Increments used to pay county administrative expense are not subject to the 10% limit on administrative expense (2009 amendment to the TIF Act). Knock Down A current listing of the parcels in a TIF district for purposes of calculating tax increment, as managed by the County, may not necessarily match the parcels in the original TIF Plan. One of the reasons for the difference can be due to the "knock down" of parcels. State Law (M.S. 469.176, Subd. 6) requires certain activities to occur on each parcel in the TIF district within four years of certification. These activities are: • Demolition, rehabilitation, or renovation of property. • Qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems. • Other site preparation. The value of parcels that fail this test are removed from the tax increment calculations for the district. State Law requires the EDA to provide the County with evidence re- lated to qualifying activity on each parcel by February 1 of the year following end of the knock down period. It is important to note that the parcels are not removed from the district. Parcels that are knocked down can be re- stored to the district when the EDA certifies to the County Auditor that qualifying activity has commenced. The val- ue that is restored to the Original Tax Capacity is the most recent tax capacity value of the parcel. In 2009, the Legislature extended the knock down period for certified on or after January 1, 2005, and before April 20, 2009, For these districts, the period is extended from four to six years. The changes affects Districts 1- 34,1- 35,1- 36,1 -37 and 1 -38. The City completed a comprehensive review of all parcels located within the boundaries of the TIF Districts and is current in its certification with the County as to the knock down status of all parcels within the City's TIF Districts (see Table 3 in the Appendix on page 60 for the report from Wright County). Pooling Pooling is the ability to spend tax increments outside of the TIF district. Limits on pooling were adopted by the Legislature in 1990 and apply to districts requesting certi- fication after May 1, 1988. Only District 1 -6 is exempt from the restrictions on pooling. Redevelopment districts are subject to a 25% limitation. The limit for all otherTIF districts is 20 %. The pooling limit is calculated based on total revenue derived from tax in- crement derived from property. Administrative expense applies to this restriction. The Management Plan 11 amount that can be spent outside of the TIF district is net of administrative expense. Timing is an important factor in evaluating the potential for expenditures outside of a TIF district. The opportunity for pooling exists only while there are obligations to be paid from tax increments (see Five Year Rule below). Once all obligations have been paid, the district must be decer- tified. A special exemption to pooling exists for housing TIF dis- tricts. Tax increments from housing TIF districts can be spent on other housing projects (authorized in the TIF plan) without regard to limits on pooling or the five -year rule. For other types of TIF districts, the statutory pooling re- strictions allow for an increase by up to 10% in the out of district expenditures to provide assistance for qualified low- income housing. State Law sets forth the criteria for determining if housing qualifies for this assistance. The TIF plan must be amended to authorize expenditures. The EDA amended District 1 -22 (a redevelopment district) in 2015 to pro- vide authority for the additional 10% pooling for housing. The EDA's ability to pool in order to make newTIF expendi- tures was expanded on a temporary basis under the 2010 Jobs Bill (with an extension in 2011). The authority grant- ed under MN Statutes 469.176, Subd. 4m requires approv- al of a spending plan and that project construction com- mence before July 1, 2012 and tax increments expended by December 31, 2012. The EDA adopted a spending plan under this temporary authority (which is now expired) for TIF District 1 -22. Five Year Rule The five -year rule is one of the most important TIF man- agement limitations. In simple terms, the EDA has five years from the date of certification to spend or obligate tax increments. After this time period passes, tax incre- ments can only be spent on prior obligations, on admin- istrative expense, or on authorized expenditures that comply with pooling restrictions. The pooling restrictions apply regardless of whether the tax increments are spent inside or outside of the TIF district. In 2009, the Legislature adopted an exemption to the five - year rule. For a redevelopment district or a renewal and renovation district certified after June 30, 2003, and be- fore April 20, 2009, the five -year rule period is extended to ten years after certification of the district. This changes affects TIF Districts 1 -34 and 1 -35. To avoid restriction under the five -year rule, one of the fol- lowing actions must take place within five years of certifi- cation of the district: 1. Revenues are actually paid to a third party with re- spect to the activity. 2. Bonds used to finance eligible activities are issued and sold to a third party. The proceeds of the bonds must be reasonably expected to be spent before the end of the later of (i) the five -year period, or (ii) a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Rev- enue Code, or are deposited in a reasonably required reserve or replacement fund. 3. Binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the reve- nues are spent under the contractual obligation. 4. Costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for pay- ment of the costs, including interest on un- reimbursed Management Plan 12 costs. 5. Expenditures are for special housing and infrastruc- ture purposes authorized by State Law. All of the TIF Districts with the exception of TIF District 1 -6 are sub- ject to the five -year rule. All of the TIF Districts, with the exception of 1- 34,1 -35, and 1 -39, have passed the five -year period and are subject to the spending limitations. SixYear Rule For TIF Districts that are subject to this rule, in the sixth year, and in each year following certification of a district, if the in- district percentage of the tax increment received from the County exceeds the cost spent on in- district ob- ligations in that year, the excess must be used only to pay or defease certain obligations (as defined in the TIF Act). The six -year rule is complex and the interpretation of the language in the TIF Act has been subject of recent discus- sion at the legislature and by the Office of the State Audi- tor, specifically related to the language in the TIF Act and whether the TIF Act subjects pooling to an annual limit in addition to the overall or cumulative limit. The Office of the State Auditor published a statement of position dat- ed September 2014 that finds the six -year rule to be an "annual limit" To date the TIF Districts for Monticello have been managed based on the interpretation that the six - year rule is an "annual limit" consistent with the Office of the State Auditor's position. The EDA should continue to monitor changes to the six -year rule that may occur at the legislative level. Decertification The evolution of State Law governing TIF provides that districts will be decertified at the earliest opportunity. The factors that influence the decertification decision include: • The five -year rule and pooling limits restrict the ability to use uncommitted tax increments to support other endeavors. The value of decertified TIF districts becomes avail- able for general taxation. The result is a lower tax rate. Excess tax increments are sent to the County for redis- tribution to taxing jurisdictions. The redistribution is based on the current year proportionate tax rates for taxes payable for the County, School District, and City. Housing and redevelopment districts may collect incre- ments for 25 years after the initial receipt of increment (ef- fectively 26 years). These districts were established before this interpretation of the TIF Act. All of the maximum de- certification dates shown in this report have been verified with Wright County and are consistent with the County's records. One of the management strategies in this report is to identify decertification dates to assist with the on -going monitoring of the financial condition of the districts for decertification. Industrial Land Development One of the desired outcome of the 2009 Plan was for an analysis to be performed of the use of TIF to write down the cost of land for industrial development. The City has previously compiled information on expenditures and revenues for the Monticello Business Center Otter Creek Crossing. This includes information on land acquisition costs, improvement costs, and the offsetting sources of revenue from cash payments and estimated tax incre- ment revenues. This information is important for plan- ning. Providing adequate locations for industrial develop- ment and the creation of jobs is an important objective of the Comprehensive Plan. The ability to provide affordable development sites is a critical element of a successful job growth strategy. Management Plan 13 District Summaries This section provides an individual summary for each TIF district. Each summary included in the District Summary section contains the following information: 1. Specific management recommendations for the TIF district. 2. KeyTIF management dates. 3. Listing of parcels. 4. Map of district boundaries 5. Financial profile, including prior years financial data and projections for the remaining life of the district. The projected future tax increment revenue is based on current (Pay 2016) property values and tax rates, except for districts where the original tax rate is less than the Pay 2016 rate, than the lower tax rate is used as per MN Statute 469.177, Subd.3(2).) Investment earnings apply a 2% interest rate to the end- ing cash balance in the previous year. These factors will change over the life of the district and alter the financial condition of the district. Table 2 on page 15 provides fund balances by TIF District as of year -end 2015 and estimated fund balance amounts for future year -to -date (YTD) or life of district as of December 31, 2025. District Summary 14 District Summary Table 2 City of Monticello Tax Increment Financing Districts Fund Balance 134 Fund Balances as of Year End 2015 Funds Funds Available Funds Available Funds to be Total TIF District Available for for Affordable for Economic Redevelopmen Housing Development Local Taxing Available t Projects Projects Jurisdictions TIF 1 -6 5 693,728 693,728 Future Fund Balance Estimates for Year -To -Date (YTD) or Life of District as of Year End 2025 c Funds Available Funds Available Funds Funds to be Total .. tit Projects Projects Devi .. Jurisdictions Redevelopment Housing Economic Local Taxing Available TIF 1 -6 5 845,651 845,651 TIF 1 -19 150,351 - 150,351 TIF 1 -19 337,550 337,550 TIF 1 -20 82,659 45,126 127,785 TIF 1 -20 117,795 - 117,795 TIF 1 -22 (62,449) 166,289 103,840 TIF 1 -22 703,207 197,644 - 900,851 TIF 1 -24 54,664 54,664 TIF 1 -24 2 472,057 472,057 TIF 1 -29 94,892 - 94,892 TIF 1 -29 2 254,232 - 254,232 TIF 1 -30 (41,749) (41749) TIF 1 -30 2 73,679 73,679 TIF 1 -34 (19,703) (19,703) TIF 1 -34 0 0 TIF 1 -35 4,111 4,111 TIF 1 -35 2 5,872 5,872 TIF 1 -36 - - _ TIF 1 -36 TIF 1 -38 (121,822) (121,822) TIF 1 -38 (118,177) (118,177) TIF 1 -39 (303,910) (303,910) TIF 1 -39 (78,630) (78,630) Total 698,346 258,158 (425,732) 211,415 742,187 Total 1,672,524 1,335,162 (196,807) - 2,810,880 Notes: 1. The facts for each individual TIF district should be reviewed and confirmed before spending of funds. 2. These districts are not planned to be decertified before year 2025. The balance shown is as estimated as of year -end 2025. 3. A negative amount indicates funds are due to another non -TIF fund as authorized by an interfund loan. 4. Available funds must be spent within the boundaries of Redevelopment Project No. 1. S. The funds for TIF 1 -6 are shown here as available for "Redevelopment Projects ". The funds are also available to pay for housing or economic development project costs, should the EDA so determine. 6. The amounts shown are after use of funds to meet existing obligations. The EDA may captitalize on the future flow of funds with approval by resolution. The EDA may reimburse itself through an 7. This balance does not include fund that may be available if land held for resale is sold. The land held for resale at the end of 2015 is valued at $209,000. 15 District 1 -6 District 1 -6 was originally established for the construction of a 33,000 square foot retail center. The District was de- certified 12/31/2013. While the District is no longer col- lecting tax increment, the Fund remains open with an available fund balance. The District is not subject to the limitations of pooling or the five -year rule.The District does not have any outstand- ing obligations. Actions Taken Since 2012 The District was decertified. Management Strategies Use of Fund Balance District 1 -6 has a fund balance of $693,728 as of the end of 2015. The Fund used to account for District 1 -6 will re- main open until all tax increment funds are expended or returned to the County for redistribution. Any expendi- ture of funds must be consistent with the TIF Plan and the adopted budget within. No further amendments to the TIF Plan can be made now that the District is decertified. The EDA should evaluate its plan and options for the use of the remaining balance. Tax increment from this District can be spent within the boundaries of the Project Area for uses authorized in the TIF Plan. Potential uses of the avail- able balance may include projects to support redevelop- ment, housing improvement projects, or to assist projects for economic development. Prior to making any expenditures from District 1 -6, it is im- portant to verify that any planned expenditures fall within the approved budget and any parcels for acquisition need to be included in the TIF Plan. No further modifications to the TIF Plan can be made as the District is decertified. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -6. District Summary District 1 -6 (Raindance) Redevelopment 16 Revenues Tax increment revenue 1,650,000 1,508,454 1,508,454 Interest and investment earnings 267,000 140,474 13,875 14,152 14,435 14,724 15,018 15,319 15,625 15,938 16,256 16,581 292,397 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds 67,500 64,150 64,150 Repayment / return of tax increment - Total Revenues 1,984,500 1,713,078 13,875 14,152 14,435 14,724 15,018 15,319 15,625 15,938 16,256 16,581 1,865,001 Expenditures Land /building acquisition 933,000 232,076 232,076 Site improvement /preparation costs 247,197 28,000 28,000 Utilities - Other public improvements 320,930 180,276 180,276 Construction of affordable housing - Temporary economic development - Authority administrative costs 45,000 40,971 40,971 Total Project Expenditures 1,546,127 481,323 - - - - - - - - - - 481,323 Bond principal payments on all other bonds 350,000 350,000 Bond principal payments for paygo - Bond interest payments on all other bonds 397,373 397,373 397,373 Bond interest payments for paygo - Interest payment on interfund loans - Tax increment returned to the county - Total Expenditures 1,943,500 1,228,696 - - - - - - - - - - 1,228,696 Revenues Over (Under) Expenditures 41,000 484,382 13,875 14,152 14,435 14,724 15,018 15,319 15,625 15,938 16,256 16,581 636,305 Other Financing Sources and Uses Transfer in - Transfer out (140,654) (140,654) Bond issued (other than refunding bonds) 350,000 350,000 Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - 209,346 - - - - - - - - - - 209,346 Net Change in Fund Balance 41,000 693,728 13,875 14,152 14,435 14,724 15,018 15,319 15,625 15,938 16,256 16,581 845,651 Beginning Fund Balance - 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 - Ending Fund Balance 41,000 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 17 Assets Cash 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Property held for resale - Other assets - Total Assets 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Liabilities Interfund loan due to non -TIF funds - Other liabilities - Total Liabilities - - - - - - - - - - - - Total Fund Balance 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Total Liabilities and Fund Balance 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Fund Balance by Purpose To be returned to County Available for redevelopment projects 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Total Fund Balance 693,728 707,603 721,755 736,190 750,913 765,932 781,250 796,875 812,813 829,069 845,651 845,651 Total amount of bonds authorized /issued 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 Total amount of bonds outstanding - - - - - - - - - - - - 18 District 1 -19 District 1 -19 was the first example of a single - purpose TIF district in the City. The District was initially established to assist with the construction of 49 units of senior rental housing. The District had a single obligation for a TIF note in the original par amount of $332,139 that terminated 2/1/2012 pursuant to terms in the agreement with Presbyterian Homes. Ninety percent (90 %) of annual tax increment was committed to repayment of theTIF note at an interest rate of 8 %. The District has no obligations outstanding. Actions Taken Since 2012 Final payments was made on the TIF note and the note terminated 2/1/2012 pursuant to terms in the agreement. Management Strategy Decertification The focus of District 1 -19 was the repayment of the TIF note issued to reimburse developer project costs. The Dis- trict did not generate sufficient tax increments to repay the principal amount of the note prior to the note termi- nation date of 2/1/2012. The EDA has no obligation to re- pay the outstanding principal; the note was payable from available tax increment only. District 1 -19 is a housing district and is not subject to the 5 -year rule or pooling limitations; there is no requirement to decertify a housing TIF district after the original agree- ment terminates, as long as the ongoing income qualifi- cations are met. Because District 1 -19 provided for rental housing, the TIF district can be kept open for as long as the developer (owner of the rental housing) is willing to continue to certify that tenants qualify for the income re- quirements, even after any contractual requirement to do so has terminated. To continue to collect tax increment, each year for the remaining duration of District 1 -19, the EDA will need to obtain an annual certification for income requirements. If the certification cannot be obtained then early decertifi- cation is required. Use of Fund Balance State Law limits the use of tax increment for this District. District 1 -19 is a housing district. Tax increments from the District Summary District 1 -19 (Mississippi Shores) Housing (LE, District can be used solely to assist with affordable hous- ing projects. Any expenditures must be authorized in the TIF plan. The TIF Plan cannot be modified further after decertification. The reported fund balance as of year end 2015 is $150,351. The EDA should determine its plans for the use of tax increment from the District. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -19. Each year, the EDA will need to request the annual cer- tification of verification of income requirements from the property owner. District Summary District 1 -19 (Mississippi Shores) Housing 20 Revenues Tax increment revenue 1,063,750 559,298 23,024 23,024 23,024 23,024 23,024 23,024 23,024 23,024 743,490 Interest and investment earnings 14,776 3,007 17,783 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds - Repayment / return of tax increment - Total Revenues 1,063,750 574,074 26,031 23,024 23,024 23,024 23,024 23,024 23,024 23,024 - - 761,273 Expenditures Land /building acquisition - Site improvement /preparation costs 100,173 - Utilities 62,000 - Other public improvements 143,657 - Construction of affordable housing - Temporary economic development - Authority administrative costs 20,000 39,158 39,158 Total Project Expenditures 325,830 39,158 - - - - - - - - - - 39,158 Bond principal payments on all other bonds - Bond principal payments for paygo 45,168 45,168 Bond interest payments on all other bonds 737,920 - Bond interest payments for paygo 339,397 339,397 Interest payment on interfund loans - Tax increment returned to the county - Total Expenditures 1,063,750 423,723 - - - - - - - - - - 423,723 Revenues Over (Under) Expenditures - 150,351 26,031 23,024 23,024 23,024 23,024 23,024 23,024 23,024 - - 337,550 Other Financing Sources and Uses Transfer in - Transfer out - Bond issued (other than refunding bonds) - Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - - - - - - - - - - - - - Net Change in Fund Balance - 150,351 26,031 23,024 23,024 23,024 23,024 23,024 23,024 23,024 - - 337,550 Beginning Fund Balance - 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 - Ending Fund Balance - 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 21 Assets Cash 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Property held for resale - Other assets - Total Assets 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Liabilities Interfund loan due to non -TIF funds - Other liabilities - Total Liabilities - - - - - - - - - - - - Total Fund Balance 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Total Liabilities and Fund Balance 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Fund Balance by Purpose To be returned to County - - Available for housing 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Total Fund Balance 150,351 176,382 199,406 222,430 245,454 268,478 291,502 314,526 337,550 337,550 337,550 337,550 Total amount of bonds authorized /issued 325,830 Total amount of bonds outstanding 22 District 1 -20 District 1 -20 is a redevelopment TIF district established for the construction of 10 single - family housing units. The tax increment from the District is used to support one remaining obligation. The remaining obligation is a TIF note issued to reimburse the developer for land acquisi- tion expense. The note is held was originally issued to Riverwood Bank and then assigned to Linda Smith. The $65,000 note is payable from 36% of the annual tax incre- ment, with final payment no later than 8/1/2018. The bal- ance outstanding on the note as of 12/31 /2015 is $76,592. The District will be decertified no later than December 31, 2024. Actions Taken Since 2012 Final payment in full was made on a prior outstanding in- terfund loan in the original amount of $65,000. Payments continued as scheduled on the outstanding TIF note. Management Strategy Decertification The District will need to be decertified once the outstand- ing obligation is satisfied for the TIF note, or the termina- tion date of 8/1/2018 for the note is reached, whichever date occurs first. Projections suggest that future years tax increment collections will not be sufficient to repay the principal amount of the TIF note prior to its ending date of 8/1/2018. The note is payable from available tax in- crement only and the EDA has no obligation for payment after the termination date. Use of Fund Balance District 1 -20 is subject to the six -year rule (see page 13 for information on the six -year rule). The total fund balance at the end of 2015 is $127,785. The financial plan shown on page 25, shows a balance, $45,126 needs to be returned to the County as excess tax increment. The remaining bal- ance of $82,659 is available to be spent on redevelopment within the Project Area. The source of the $82,659 is tax increment collected from interest earnings and market value homestead credit, sources that are not subject to the limitation of the five -year rule or pooling. Any use of funds must be consistent with the adopted TIF District Summary District 1 -20 (Prairie West) Redevelopment 23 Plan. In addition to use of funds for redevelopment pur- poses, as noted in the Pooling section of the Management Plan, additional expenditures could be authorized for qualified low- income housing. The TIF Plan would need to be modified to provide authority for use of funds for housing (see Pooling on page 11). Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -20. District Summary District 1 -20 (Prairie West) Redevelopment 24 Revenues Tax increment revenue 628,300 312,886 17,653 17,653 17,653 365,844 Interest and investment earnings 61,906 2,556 1,934 2,061 2,190 2,093 2,135 2,177 2,221 2,265 2,265 83,802 Market Value Homestead Credit 20,753 20,753 Loan /advance repayments 0 Lease proceeds 0 Repayment / return of tax increment 0 Total Revenues 628,300 395,545 20,208 19,586 19,713 2,190 2,093 2,135 2,177 2,221 2,265 2,265 470,400 Expenditures Land /building acquisition 200,000 65,000 65,000 Site improvement /preparation costs 0 Utilities 0 Other public improvements 0 Construction of affordable housing 0 Temporary economic development 0 Authority administrative costs 20,000 16,875 16,875 Total Project Expenditures 220,000 81,875 0 0 0 0 0 0 0 0 0 0 81,875 Bond principal payments on all other bonds 0 0 0 0 0 0 0 0 0 0 Bond principal payments for paygo 11,918 0 0 0 0 0 0 0 0 0 11,918 Bond interest payments on all other bonds 408,300 0 0 0 0 0 0 0 0 0 0 Bond interest payments for paygo 103,199 6,182 6,182 6,182 0 0 0 0 0 0 121,745 Interest payment on interfund loans 70,768 70,768 Tax increment returned to the county 45,126 7,058 7,058 7,058 0 0 0 0 0 66,299 Total Expenditures 628,300 267,760 51,308 13,240 13,240 7,058 0 0 0 0 0 0 352,605 Revenues Over (Under) Expenditures 0 127,785 (31,100) 6,347 6,474 (4,867) 2,093 2,135 2,177 2,221 2,265 2,265 117,795 Other Financing Sources and Uses Transferin 0 Transfer out 0 Bond issued (otherthan refunding bonds) 0 Refunding bonds issued 0 Bonds refunded 0 Bond discount 0 Bond premium 0 Sales of property 0 Total Other Financing Sources and Uses 0 0 0 0 0 0 0 0 0 0 0 0 Net Change in Fund Balance 0 127,785 (31,100) 6,347 6,474 (4,867) 2,093 2,135 2,177 2,221 2,265 2,265 117,795 Beginning Fund Balance 0 127,785 96,685 103,032 109,506 104,639 106,732 108,866 111,043 113,264 115,530 0 Ending Fund Balance 0 127,785 96,685 103,032 109,506 104,639 106,732 108,866 111,043 113,264 115,530 117,795 117,795 25 Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance 127,785 127,785 0 127,785 127,785 96,685 96,685 0 96,685 96,685 103,032 103,032 0 103,032 103,032 109,506 109,506 0 109,506 109,506 104,639 104,639 0 104,639 104,639 106,732 106,732 0 106,732 106,732 108,866 108,866 0 108,866 108,866 111,043 111,043 0 111,043 111,043 113,264 113,264 0 113,264 113,264 115,530 115,530 0 115,530 115,530 117,795 117,795 0 117,795 117,795 117,795 0 0 117,795 0 0 0 117,795 117,795 Fund Balance by Purpose To be returned to County 45,126 7,058 7,058 7,058 0 0 0 0 0 0 0 0 Available for redevelopment projects 82,659 89,628 95,975 102,449 104,639 106,732 108,866 111,043 113,264 115,530 117,795 117,795 Total Fund Balance 127,785 96,685 103,032 109,506 104,639 106,732 108,866 111,043 113,264 115,530 117,795 117,795 Pooling Analysis Tax increment derived from property 17,653 17,653 17,653 0 0 0 0 0 0 0 Indistrict % 1 1 1 Minimum TIF spent /committed within district 13,240 13,240 13,240 0 0 0 0 0 0 0 Less TIF spent /committed within district 6,182 6,182 6,182 0 0 0 0 0 0 0 Annual excess increment 7,058 7,058 7,058 0 0 0 0 0 0 0 Cumulative Pooled expenditures 16,875 16,875 16,875 16,875 16,875 16,875 16,875 16,875 16,875 16,875 16,875 Total amount of bonds authorized /issued 200,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 Total amount of bonds outstanding 76,592 76,592 76,592 76,592 0 0 0 0 0 0 0 0 Linda Smith Prairie West - Paygo Obligation Original issuance /par amount 65,000 65,000 65,000 65,000 Principal balance 76,592 76,592 76,592 76,592 Principal paid (11,592) 0 Interest Paid 103,199 6,182 6,182 6,182 Interfund Loan from EDA General Fund Original issuance /par amount 65,000 Principal balance 0 0 0 0 0 Principal paid 65,000 Interest Paid 70,768 26 District 1 -22 City Number 1 -22 District 1 -22 is the largest and most complex district in the Name Downtown District City and encompasses the downtown area. This district provides an excellent illustration of the challenges of im- Type Redevelopment plementing a large (geographic area) TIF district subject Date Established 3/10/1997 to the constraints of the five -year and six -year rules within .. - Certified 6/30/1997 the TI Act. Year of First Increment 1999 Date of - - 6/30/2002 The five -year rule time period has ended and the six -year Date of Decertification 12/31/2024 Date of . st Recent Modification 10/26/2015 rule began 6/30/2003. This means there are limitations on Original Tax Rate 112.62% the use of annual tax increment revenue. Base Tax Capacity as of Pay 2016 $164,951 Current Tax Capacity of $457,907 Tax increment revenue from three parcels within District Captured Tax Capacity as of Pay ' $292,956 Number of Parcels 55 1 -22 is pledged to the repayment of two developer notes. Fund Balance as $103,840 Cash Balance as of FYE2015 $489,704 1. The original development agreement with Master Outstanding Obligations Exist as of FYE2015 Yes Fifth Avenue, assigned to Laxmi Hotel Inc., provided 155- 010 - 002011 155- 010 - 051100 for a note in the amount of $185,000. The note is pay- 155 -010- 005010 155 -010- 052010 able with tax increments from parcels 155 - 010- 036130 155 -010- 005090 155 -010- 052060 and 155 - 010 - 036140. The note has an outstanding 155 -010- 006040 155 -010- 052110 155- 010 - 007020 155- 010 - 064030 balance of $184,816 as of 12/31/2015. The interest 155 -010- 011030 155 - 010 - 069080 rate on the note is 8% and does not accrue. The EDA 155- 010 - 014050 155- 040 - 002100 has no obligation t0 Yea the note other than from g p y 155- 010 - 016070 155- 076 - 001010 155 - 010 - 016090 155- 137 - 000100 pledged tax increment.The note is set to terminate no 155- 010 - 016100 155- 137 - 000200 later than 2/1/2023. 155 -010- 017030 155 - 137 - 000300 155- 010 - 017060 155- 137 - 000400 2. The development agreement with BBF Properties, Inc. 155 -010- 018060 155- 137 - 000500 provides for a note in the amount of $500,000. Tax in- 155- 010 - 018080 155 - 137 - 000600 155- 010 - 020010 155- 137 - 000700 crement has been sufficient to pay interest only with 155 - 010 - 020030 155 - 144 - 001020 entire principal balance remaining outstanding. The 155 - 010 - 032020 155- 144 - 001030 note is a able with tax increments from parcel 155- p y p 155- 010 - 033011 155 - 144 - 001040 155- 010 - 035060 155- 144 - 001050 076 - 001010. The EDA has no obligation to repay the 155 - 010 - 035120 155 - 144 - 001060 note other than from pledged tax increment.The note 155- 010 - 035130 155- 144 - 001070 is set to terminate no later than 2/1/2020. 155- 010 - 036040 155- 144 - 001080 155 -010- 036061 155- 144 - 001090 155- 010 - 036110 155- 144 - 001100 Tax increment from District 1 -22 was used to pay for up to 155 -010- 036111 155- 218 - 001010 $281,250 in redevelopment costs related to the construc- 155- 010 - 036130 155- 218 - 001020 tion of the Community Center and the redevelopment of 155 -010- 036140 155- 218 - 001030 155 - 010 - 051060 District Summary District 1 -22 (Downtown) Redevelopment 27 what was a blighted site. The use of tax increment for the Community Center was allowable by a grandfather provi- sion that allowed authorities to make expenditures for this type of purpose (which is now prohibited), if they acted to so by January 1, 2000. The provision was enacted in the 1999 Legislative session. Actions Taken Since 2012 The following actions have occurred since 2012: The EDA completed a comprehensive review of all parcels within the District and confirmed compliance with the four -year rule and the proper notification to the County of all qualifying development activity. Tax increment was returned to the County in compliance with the four -year rule following the review. The EDA removed 13 parcels from the District in an- ticipation of establishing a new redevelopment TIF district for the parcels located within Block 34 within the downtown area (EDA Resolution No. 2015 -001). The new redevelopment TIF district has not yet been established.The City made the necessary findings pre- serving the authority to establish a future TIF district for Block 34. • Payments continued as scheduled on the two out- standing pay -go TIF notes for the District. As authorized in an adopted spending plan, the City reconciled its use of tax increment from the District in the amount of $378,700 under the temporary au- thority granted by the legislature for economic de- velopment purposes pursuant to Minnesota Statutes 469.176, subd. 4c (d). This was commonly referred to as the "Jobs Bill ". • A comprehensive review of the financial activity with- in the District was completed to confirm compliance with the TIF Act. The review included determining the projected future funds that may be available, based on compliance with the six -year rule, assuming an annual test (EDA Resolution No. 2013 -012, adopted on 3/13/2013). Following this review, the EDA autho- rized an interfund loan up to a maximum amount of $800,000 (EDA Resolution No. 2014 -025, adopted on 3/12/2014), which allows for the EDA to capitalize es- timated future tax increment revenue under pooling authority and pursuant to the sixth -year rule in the TIF Act. As of year -end 2015, the District reports an interfund loan outstanding balance of $364,265. This balance includes $275,000 that was authorized for the purpose of acquiring Iand.The remaining land held for resale is reported to have a present value of $209,000. The EDA acted to modify the TIF Plan to authorize the use of tax increment from District 1 -22 to assist afford- able housing project. The modification (EDA Resolu- tion No. 2015 -010, adopted on 10/14/2015) allows the pooling of an additional 10% of tax increment col- lected from property within the District to assist with financing eligible affordable housing projects. Management Strategies District 1 -22 poses a significant management challenge. The area within the District is an important redevelop- ment focus area in the Comprehensive Plan. An existing TIF district and the fund balance in the district create fi- nancial tools needed to facilitate redevelopment projects. However, the five -year and six -year rules limit the options and ability of the EDA to use these resources. Pooling of Funds and Redistributing Excess Funds The decision by the EDA to retain parcels within District District Summary District 1 -22 (Downtown) Redevelopment 28 1 -22 allows the EDA to maximize the pooling of funds for both redevelopment and housing. Annually a detailed review of the flow of funds is completed to determine compliance with the pooling limitation (i.e., six -year rule). Based on the most recent review, and as included as part of the District Summary for District 1 -22, it is projected that over the remaining life of the District, tax increment will be collected and a fund balance available in the amount of $703,207 to assist with (new) redevelopment projects (or housing) and an additional $197,644 of future fund balance available for assisting housing (and not available for any other purpose). The interfund loan (in the maxi- mum amount of $800,000) authorized by the EDA allows the EDA to capitalize the future flow of funds and to spend on current projects at this time or a future date. Annually the EDA is required to return excess funds to the County for redistribution to the local taxing jurisdictions (County, School, and City). This is due to the limitations that exist in the TIF Act for use of tax increment (i.e., the five -year and six -year rules). Based on the modified TIF Plan for District 1 -22, the EDA must use a minimum of 65% of the tax increment collected within the District to meet indistrict (existing) obligations or return the funds to the County for redistribution. Early Decertification The development agreement with Master Fifth Avenue will terminate no later than 2/1/2023, pursuant to the de- velopment agreement. District 1 -22 will need to be termi- nated after this final obligation of the District is satisfied. The financial information shown on pages 30 and 31 for District 1 -22 is prepared based on the early decertifica- tion date of 12/31/2023. A resolution approving the early decertification of District 1 -22 will need to be adopted in 2023. Annual Reporting Requirements Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -22. District Summary District 1 -22 (Downtown) Redevelopment Revenues Tax increment revenue 39,000,000 4,619,910 282,348 282,348 282,348 282,348 282,348 282,348 282,348 282,348 6,878,695 Interest and investment earnings 610,839 9,794 10,659 11,063 13,261 15,502 18,773 21,125 23,523 25,970 23,056 783,564 Market Value Homestead Credit 15,252 15,252 Loan /advance repayments 56,468 56,468 Lease proceeds 381,771 381,771 Repayment / return of tax increment - Total Revenues 39,000,000 5,684,240 292,142 293,007 293,411 295,609 297,850 301,121 303,473 305,872 25,970 23,056 8,115,750 Expenditures Land /building acquisition 4,275,000 2,332,433 2,332,433 Site improvement /preparation costs 4,275,000 164,445 164,445 Utilities 4,275,000 88,441 88,441 Other public improvements 4,275,000 383,560 383,560 Construction of affordable housing - Temporary economic development 378,700 378,700 Authority administrative costs 1,900,000 250,946 250,946 Total Project Expenditures 19,000,000 3,598,525 - - - - - - - - - - 3,598,525 Bond principal payments on all other bonds 945,000 - - - - - - - - - 945,000 Bond principal payments for paygo 184 - - - - - - - - - 184 Bond interest payments on all other bonds 20,000,000 209,594 209,594 Bond interest payments for paygo 562,129 61,027 61,027 61,027 61,027 11,832 11,832 11,832 11,832 - 853,565 Interest payment on interfund loans - - - - - - - - - - Tax increment returned to the county 833,789 166,289 122,500 122,500 122,500 122,500 171,694 171,694 171,694 171,694 - 2,176,852 Total Expenditures 39,000,000 6,149,221 227,316 183,526 183,526 183,526 134,332 183,526 183,526 183,526 171,694 - 7,783,720 Revenues Over (Under) Expenditures - (464,981) 64,826 109,480 109,885 112,082 163,518 117,594 119,946 122,345 (145,724) 23,056 332,030 Other Financing Sources and Uses Transferin - Transfer out (376,179) (376,179) Bond issued (other than refunding bonds) 945,000 945,000 Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - 568,821 - - - - - - - - - - 568,821 Net Change in Fund Balance - 103,840 64,826 109,480 109,885 112,082 163,518 117,594 119,946 122,345 (145,724) 23,056 900,851 Beginning Fund Balance - 103,840 168,666 278,147 388,032 500,114 663,633 781,227 901,173 1,023,519 877,795 - Ending Fund Balance - 103,840 168,666 278,147 388,032 500,114 663,633 781,227 901,173 1,023,519 877,795 900,851 900,851 30 Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance Fund Balance by Purpose To be returned to County Available for redevelopment projects Available for affordable housing projects Total Fund Balance Pooling Analysis TIF derived from property Indistrict Minimum TIF spent /committed within district Less TIF spent /committed within district Annual excess increment Cumulative Pooled expenditures 489,704 532,931 553,147 663,032 775,114 938,633 1,056,227 1,176,173 1,298,519 1,152,794 1,175,848 1,175,848 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,001 209,002 209,002 710 - 699,414 741,931 762,147 872,032 984,114 1,147,633 1,265,227 1,385,173 1,507,519 1,361,795 1,384,850 1,384,850 386,574 364,265 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 209,000 595,574 573,265 484,000 484,000 484,000 484,000 484,000 484,000 484,000 484,000 484,000 484,000 103,840 168,666 278,147 388,032 500,114 663,633 781,227 901,173 1,023,519 877,795 900,851 900,851 699,414 741,931 762,147 872,032 984,114 1,147,633 1,265,227 1,385,173 1,507,519 1,361,795 1,384,851 1,384,851 166,289 122,500 122,500 122,500 122,500 171,694 171,694 171,694 171,694 - - - (62,449) 46,167 127,413 209,063 292,910 378,999 468,359 560,071 654,181 680,152 703,207 703,207 - 28,235 56,470 84,704 112,939 141,174 169,409 197,644 197,644 197,644 197,644 103,840 168,666 278,147 388,032 500,114 663,633 781,227 901,173 1,023,519 877,795 900,851 900,851 282,348 282,348 282,348 282,348 282,348 282,348 282,348 282,348 65% 65% 65% 65% 65% 65% 65% 65% 183,526 183,526 183,526 183,526 183,526 183,526 183,526 183,526 61,027 61,027 61,027 61,027 11,832 11,832 11,832 11,832 122,500 122,500 122,500 122,500 171,694 171,694 171,694 171,694 865,131 865,131 865,131 865,131 865,131 865,131 865,131 865,131 865,131 865,131 865,131 865,131 Total amount of bonds authorized /issued 39,000,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 685,000 Total amount of bonds outstanding 1,070,990 684,816 684,816 684,816 684,816 184,816 184,816 184,816 184,816 184,816 184,816 184,816 BBF Properties (Cub) - Paygo Obligation Original issuance /par amount 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Principal balance 500,000 500,000 500,000 500,000 500,000 - Principal paid - - - Interest Paid 436,524 49,194 49,194 49,194 49,194 - Laxmi Hotel Inc. - Paygo Obligation Original issuance /par amount 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 Principal balance 184,416 184,816 184,816 184,816 184,816 184,816 184,816 184,816 184,816 - Principal paid 184 - Interest Paid 125,602 11,832 11,832 11,832 11,832 11,832 11,832 11,832 11,832 - Interfund Loan from EDA General Fund Original issuance /par amount 408,883 408,883 408,883 408,883 408,883 408,883 408,883 408,883 408,883 408,883 408,883 408,883 Principal balance 386,574 364,265 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 Principal paid 22,309 22,309 89,265 - - - - Interest Paid - 31 District 1 -24 District 1 -24 was established as a housing TIF district to as- sist with the construction of 60 units of senior rental hous- ing. The tax increment from the District is obligated under a development agreement with St. Cloud Hospital Corpo- ration (dba St. Benedict's Center). Ninety percent (90 %) of annual tax increment is used to repay a $440,000 note at an interest rate of 8% ending no later than 2/1/2026. The District will be decertified no later than 12/31/2026. Actions Taken Since 2012 Payments on the outstanding note have continued. Management Strategy Decertification The TIF note is projected to be repaid in 2016. The finan- cial review for District 1 -24, as shown on pages 34 and 35, as- sumes the EDA will keep the District open for the maximum duration, with decertification to occur on 12/31/2026. District 1 -24 is a housing district and is not subject to the five -year rule or pooling; there is no requirement to de- certify a housing TIF district after the original agreement terminates, as long as the ongoing income qualifications are met. Because District 1 -24 provided for rental housing, the TIF district can be kept open for as long as the devel- oper (owner of the rental housing) is willing to continue to certify that tenants qualify for the income requirements, even after any contractual requirement to do so has termi- nated. If the EDA is not able to obtain an annual certifica- tion for income requirements then District 1 -24 will need to be decertified after the remaining obligation is repaid in 2016. Use of Fund Balance State Law limits the use of tax increment for this District District 1 -24 is a housing district. Tax increments from the District can be used solely to assist with affordable hous- ing projects. Any expenditures must be authorized in the TIF plan. The TIF Plan cannot be modified further after decertification. The reported fund balance as of year end 2015 is $54,664. The EDA should determine its plans for the use of tax increment from the District. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -24. District Summary District 1 -24 (Church of St. Henry) Housing Each year, the EDA will need to request the annual cer- tification of verification of income requirements from the property owner. District Summary District 1 -24 (Church of St. Henry) Housing 33 Revenues Tax increment revenue 1,900,000 789,798 41,784 41,784 41,784 41,784 41,784 41,784 41,784 41,784 41,784 41,784 41,784 1,249,424 Interest and investment earnings 20,000 12,046 1,093 1,161 2,009 2,875 3,758 4,659 5,578 6,515 7,471 8,447 9,441 65,055 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds 20,000 - Repayment / return of tax increment - Total Revenues 1,940,000 801,844 42,877 42,945 43,794 44,659 45,543 46,443 47,362 48,300 49,256 50,231 51,225 # # # # # ## Expenditures Land /building acquisition 140,000 Site improvement /preparation costs 220,000 - Utilities - Other public improvements 890,000 - Construction of affordable housing - Temporary economic development - Authority administrative costs 75,000 9,611 500 500 500 500 500 500 500 500 500 500 500 15,111 Total Project Expenditures 1,325,000 9,611 500 500 500 500 500 500 500 500 500 500 500 15,111 Bond principal payments on all other bonds - Bond principal payments for paygo 384,711 37,616 - - - - - - - - - - 422,327 Bond interest payments on all other bonds 615,000 - Bond interest payments for paygo 310,108 1,400 - - - - - - - - - - 311,508 Interest payment on interfund loans - Tax increment returned to the county - Total Expenditures 1,940,000 704,430 39,516 500 500 500 500 500 500 500 500 500 500 748,946 Revenues Over (Under) Expenditures 0 97,414 3,361 42,445 43,294 44,159 45,043 45,943 46,862 47,800 48,756 49,731 50,725 565,533 Other Financing Sources and Uses Transfer in - Transfer out (42,750) (42,750) Bond issued (other than refunding bonds) - Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses 0 (42,750) 0 0 0 0 0 0 0 0 0 (42,750) Net Change in Fund Balance 0 54,664 3,361 42,445 43,294 44,159 45,043 45,943 46,862 47,800 48,756 49,731 50,725 522,783 Beginning Fund Balance 0 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 - Ending Fund Balance 0 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 34 Fund Balance by Purpose To be returned to County - Available for housing 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Total Fund Balance 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Total amount of bonds authorized /issued 880,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 St. Cloud Hospitals /St. Benedicts - Paygo Obligation Original issuance /par amount 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 Principal balance 37,616 - - - - - - - - - - - - Principal paid 402,384 37,616 - Interest Paid 310,108 1,400 - 35 0 Assets Cash 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Property held for resale 0 Other assets 0 Total Assets 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Liabilities Interfund loan due to non -TIF funds Other liabilities - Total Liabilities - - - - - - - - - - - - - Total Fund Balance 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Total Liabilities and Fund Balance 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Fund Balance by Purpose To be returned to County - Available for housing 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Total Fund Balance 54,664 58,025 100,470 143,764 187,923 232,966 278,909 325,771 373,571 422,327 472,057 522,783 522,783 Total amount of bonds authorized /issued 880,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 St. Cloud Hospitals /St. Benedicts - Paygo Obligation Original issuance /par amount 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 Principal balance 37,616 - - - - - - - - - - - - Principal paid 402,384 37,616 - Interest Paid 310,108 1,400 - 35 District 1 -29 District 1 -29 is a housing TIF district established for the construction of owner - occupied housing for persons of low and moderate income. The tax increment from the District is used to support a note to reimburse the devel- oper for land acquisition and site improvement expenses. The $220,000 note, with interest at a rate of 7.25 %, is paid with 80% of the annual tax increment ending no later than 2/1/2020. The District will be decertified no later that 12/31/2029. Actions Taken Since 2012 Payments on the outstanding note, principal and interest, have been made to the extent increment has been avail- able to do so. Management Strategy Decertification The focus of this District will be the repayment of the ob- ligation to the developer. The projections in this report shows that the obligation will not be repaid in full by the 2/1/2020 termination date of the obligation, pursuant to the agreement. District 1 -29 is a housing district and is not subject to the five -year rule or pooling; there is no requirement to de- certify a housing TIF district after the original agreement terminates, as long as the income qualifications are met. District 1 -29 was established to assist owner - occupied af- fordable housing. The income requirement for owner -oc- cupied housing is at time of the original sale. There is no on -going annual income verification required. Practically, this means that District 1 -29, an owner - occupied housing TIF district, can stay open for their entire maximum (statu- tory) term, whether or not there is a contract in effect with a developer. Use of Fund Balance State Law limits the use of tax increment for this District. District Summary District 1 -29 (Front Porch Associates) Housing W District 1 -29 is a housing district. Tax increments from the District can be used solely to assist with affordable hous- ing projects. Any expenditures must be authorized in the TIF plan. The TIF Plan cannot be modified further after decertification. The reported fund balance as of year end 2015 is $94,892. The EDA should determine its plans for the use of tax increment for the District. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -29. • For the EDA to use of tax increment from District 1 -29 in the future, to assist owner - occupied affordable housing, the EDA will need to require the developer to provide evidence of income verification of the original occupants of the home. District Summary District 1 -29 (Front Porch Associates) Housing 37 Revenues Tax increment revenue 925,000 279,766 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 22,671 619,834 Interest and investment earnings 14,413 1,898 2,016 2,137 2,261 2,387 2,515 3,009 3,513 4,026 4,550 5,085 5,630 6,186 6,753 7,331 73,710 Market Value Homestead Credit 26,812 26,812 Loan /advance repayments Lease proceeds Repayment / return of tax increment - Total Revenues Expenditures Land /building acquisition 925,000 200,000 320,991 3,033 24,569 24,688 24,809 24,932 25,058 25,186 25,680 26,184 26,697 27,221 27,756 28,301 28,857 29,424 30,003 720,357 3,033 Site improvement /preparation costs 25,000 - Utilities 75,000 Other public improvements 110,000 Construction of affordable housing Temporary economic development - Authority administrative costs 90,000 13,138 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 20,638 Total Project Expenditures Bond principal payments on all other bonds 500,000 16,171 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 23,671 - Bond principal payments for paygo 42,721 - - - - - 42,721 Bond interest payments on all other bonds 425,000 - Bond interest payments for paygo 167,207 18,137 18,137 18,137 18,137 18,137 257,892 Interest payment on interfund loans - Tax increment returned to the county - Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources and Uses Transfer in 925,000 - 226,099 94,892 18,637 5,932 18,637 6,051 18,637 6,172 18,637 6,295 18,637 6,421 500 24,686 500 25,180 500 25,684 500 26,197 500 26,721 500 27,256 500 27,801 500 28,357 500 28,924 500 29,503 324,284 396,073 - Transfer out Bond issued (other than refunding bonds) Refunding bonds issued Bonds refunded Bond discount Bond premium Sales of property Total Other Financing Sources and Uses Net Change in Fund Balance Beginning Fund Balance 0 0 - 94,892 - - 5,932 94,892 - 6,051 100,824 - 6,172 106,875 - 6,295 113,047 - 6,421 119,342 - 24,686 125,763 - 25,180 150,449 - 25,684 175,629 - 26,197 201,313 - 26,721 227,511 - 27,256 254,232 - 27,801 281,488 - 28,357 309,289 - 28,924 337,646 - 29,503 366,570 - 396,073 - Ending Fund Balance 0 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 38 396,073 396,073 Assets Cash 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Property held for resale Other assets Total Assets 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Total Liabilities and Fund Balance 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Fund Balance by Purpose To be returned to County - Avallable for housing 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Total Fund Balance 94,892 100,824 106,875 113,047 119,342 125,763 150,449 175,629 201,313 227,511 254,232 281,488 309,289 337,646 366,570 396,073 396,073 Total amount of bonds authorized /issued 500,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 Front Porch Assoc. / Michael Cyr - Paygo Obligation Original issuance /par amount 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 Principal balance 177,279 177,279 177,279 177,279 177,279 177,279 - - - - - - - - - - Principal paid 42,721 - Interest Paid 167,207 18,137 18,137 18,137 18,137 18,137 7 District 1 -30 District 1 -30 is a housing TIF district established for the construction of 11 owner - occupied housing unit for per- sons of low and moderate income. The tax increment from the District is used to support an interfund loan in the amount of $158,000 payable to the City. The EDA makes payment on the interfund loan, include interest at a rate of 5 %, from 90% of the annual tax increment. The balance on the loan is $139,705, as of 12/31/2015, ending no later than 2/1/2030. The District will need to be decer- tified no later that 12/31/2029. Actions Taken Since 2012 Payments have been made on the interfund loan. Management Strategy Decertification The focus of this District has been the repayment of the internal loan. The pro forma for District 1 -30 assumes the EDA continues to make payments on the loan for the statutory duration of the District. The EDA may decide to repay the loan earlier without impacting its authority to keep District 1 -30 open and the continued collection of tax increment through 12/31/2029. Use of Fund Balance State Law limits the use of tax increment for this District. District 1 -30 is a housing district. Tax increments from the District can be used solely to assist with affordable hous- ing projects. Any expenditures must be authorized in the TIF plan. The TIF Plan cannot be modified further after decertification. The reported fund balance as of year end 2015 is $97,956. The EDA should determine its plans for the use of fund balance. The District will not generate any additional tax increment from property after 12/31/2029, the decertification date. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -30. For the EDA to use of tax increment from District 1 -30 District Summary District 1 -30 (CMHP) Housing 40 in the future, to assist owner - occupied affordable housing, the EDA will need to require the developer to provide evidence of income verification of the original occupants of the home. District Summary District 1 -30 (CMHP) Housing 41 Revenues Tax increment revenue 545,000 114,358 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 9,153 242,502 Interest and investment earnings 41,148 1,959 2,092 2,216 2,341 2,465 2,600 2,735 2,870 3,005 3,140 3,275 3,411 3,546 3,681 3,815 84,299 Market Value Homestead Credit 17,364 17,364 Loan /advance repayments 0 Lease proceeds 0 Repayment/ return of tax Increment 0 Total Revenues Expenditures Land /building acquisition 545,000 125,000 172,870 125,000 11,112 11,245 11,370 11,494 11,618 11,753 11,888 12,023 12,158 12,293 12,429 12,564 12,699 12,834 3,815 344,164 125,000 Site improvement/preparation costs 70,000 17,750 17,750 Utilities 25,000 25,000 25,000 Other public improvements 325,000 0 Construction of affordable housing 33,000 33,000 Temporary economic development 0 Authority administrative costs 50,000 10,799 26 500 500 500 12,325 Total Project Expenditures Bond principal payments on all other bonds 595,000 211,549 26 500 500 500 0 0 0 0 0 0 0 0 0 0 0 213,075 0 Bond principal payments for paygo 0 Bond interest payments on all other bonds 200,000 0 Bond interest payments for paygo 0 Interest payment on interfund loans 45,820 45,820 Tax increment returned to the county 0 Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources and Uses Transfer in 795,000 (250,000) 257,369 (84,499) 42,750 26 11,086 500 10,745 500 10,870 500 10,994 0 11,618 0 11,753 0 11,888 0 12,023 0 12,158 0 12,293 0 12,429 0 12,564 0 12,699 0 12,834 0 3,815 258,895 85,269 42,750 Transfer out 0 Bond issued (other than refunding bonds) 0 Refunding bonds issued 0 Bonds refunded 0 Bond discount 0 Bond premium 0 Sales of property 0 Total Other Financing Sources and Uses Net Change in Fund Balance Beginning Fund Balance 0 (250,000) 42,750 (41,749) 0 0 11,086 (41,749) 0 10,745 (30,663) 0 10,870 (19,917) 0 10,994 (9,048) 0 11,618 1,946 0 11,753 13,564 0 11,888 25,317 0 12,023 37,205 0 12,158 49,228 0 12,293 61,386 0 12,429 73,679 0 12,564 86,108 0 12,699 98,672 0 12,834 111,371 0 3,815 124,204 42,750 128,019 0 Ending Fund Balance (250,000) (41,749) (30,663) (19,917) (9,048) 1,946 13,564 25,317 37,205 49,228 61,386 73,679 86,108 98,672 111,371 124,204 42 128,019 128,019 Assets Cash 97,956 104,614 110,820 117,037 123,262 129,993 136,735 143,488 150,247 157,009 163,772 170,532 177,286 184,029 190,758 188,316 128,019 Property held for resale Other assets Total Assets 97,956 104,614 110,820 117,037 123,262 129,993 136,735 143,488 150,247 157,009 163,772 170,532 177,286 184,029 190,758 188,316 128,019 Liabilities Interfund loan due to non -TIF funds 139,705 135,277 130,738 126,085 121,316 116,428 111,418 106,283 101,019 95,623 90,093 84,424 78,614 72,658 66,554 60,297 0 Other liabilities Total Liabilities 139,705 135,277 130,738 126,085 121,316 116,428 111,418 106,283 101,019 95,623 90,093 84,424 78,614 72,658 66,554 60,297 0 Total Fund Balance (41,749) (30,663) (19,917) (9,048) 1,946 13,564 25,317 37,205 49,228 61,386 73,679 86,108 98,672 111,371 124,204 128,019 128,019 Total Liabilities and Fund Balance 97,956 104,614 110,820 117,037 123,262 129,993 136,735 143,488 150,247 157,009 163,772 170,532 177,286 184,029 190,758 188,316 128,019 Fund Balance by Purpose To be returned to County Available for housing (41,749) (30,663) (19,917) (9,048) 1,946 13,564 25,317 37,205 49,228 61,386 73,679 86,108 98,672 111,371 124,204 128,019 128,019 Total Fund Balance (41,749) (30,663) (19,917) (9,048) 1,946 13,564 25,317 37,205 49,228 61,386 73,679 86,108 98,672 111,371 124,204 128,019 128,019 Total amount of bonds authorized /issued 250,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 Interfund Loan from EDA General Fund Original issuance /par amount 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 158,000 Principal balance 139,705 135,277 130,738 126,085 121,316 116,428 111,418 106,283 101,019 95,623 90,093 84,424 78,614 72,658 66,554 60,297 Principal paid 18,295 4,428 4,539 4,653 4,769 4,888 5,010 5,135 5,264 5,395 5,530 5,669 5,810 5,956 6,104 6,257 Interest Paid 45,820 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 8,801 43 District 1 -34 District 1 -34 is the only renewal and renovation TIF district. This District was established to provide a portion of the funding to construct the east interchange with Interstate 94. The tax increments from this District are pledged to pay a portion of debt service on the original $10,735,000 G.O. Refunding Bonds, Series 2011A (the original issuance that was refunded with Series 2011 A was Series 2005A). Bond records contain a specific flow of funds for the "TIF Portion" of the debt service plan. This portion of the bond issue consists of $5,325,000 in principal. The flow of funds assumes $280,697 of annual tax increment revenues for the years 2013 through 2022. Other revenues needed to pay debt service on this portion of the bond issue in- clude special assessments, general tax levy and County revenues. District 1 -34 is scheduled to be decertified no later than December 31, 2022. Actions Taken Since 2012 The City transferred funds from this District for payment of the Bonds. The transfer of funds was in excess of available tax increment. This District is in a negative fund balance position. The EDA approved an interfund loan to provide cash from the EDA General Fund in a maximum amount of $500,000 (EDA Resolution No. 2016 -001, approved on March 9, 2016). This District benefited from the extended knock -down and five -year rule periods approved by the Legislature in 2009. Management Strategy Discharge Obligations The focus of District 1 -34 is the repayment of the outstand- ing bonds. It is anticipated that all of the tax increment revenue from this District will be used for debt service. The finance plan for the 2011A G.O. Bonds anticipated $280,697 per year in tax increment revenues. This is great- District Summary District 1 -34 (Monticello Interchange) Renewal & Renovation 44 er than the estimated annual revenue from current values and rates. Future development in this District may in- crease tax increment revenues beyond current estimates. Without an increase in tax increment from District 1 -34, the City will need to continue to cover debt service pay- ments that were originally anticipated to be paid from tax increment. Annual Reporting Requirements • Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -34. District Summary District 1 -34 (Monticello Interchange) Renewal & Renovation 45 Revenues Tax increment revenue 5,500,000 2,133,775 208,994 208,994 208,994 208,994 208,994 208,994 208,994 3,596,733 Interest and investment earnings 100,000 6,261 1,533 0 0 0 0 0 0 0 0 0 7,794 Market Value Homestead Credit - Loan /advance repayments Lease proceeds Repayment / return of tax increment - Total Revenues 5,600,000 2,140,036 210,527 208,994 208,994 208,994 208,994 208,994 208,994 0 0 0 3,604,527 Expenditures Land /building acquisition 3,000,000 - Site improvement /preparation costs 500,000 Utilities 100,000 - Other public improvements 6,900,000 4,993,221 4,993,221 Construction of affordable housing - Temporary economic development - Authority administrative costs 550,000 26,314 26,314 Total Project Expenditures 11,050,000 5,019,535 - - - - - - - - - - 5,019,535 Bond principal payments on all other bonds 1,434,790 190,824 208,994 208,994 208,994 208,994 208,994 208,994 2,879,578 Bond principal payments for paygo - Bond interest payments on all other bonds 750,000 476,290 - - - - - - - - 476,290 Bond interest payments for paygo - Interest payment on interfund loans Tax increment returned to the county - Total Expenditures 11,800,000 6,930,615 190,824 208,994 208,994 208,994 208,994 208,994 208,994 - - - 8,375,403 Revenues Over (Under) Expenditures (6,200,000) (4,790,579) 19,703 0 0 0 0 0 0 0 0 0 (4,770,876) Other Financing Sources and Uses Transfer in Transfer out - Bond issued (other than refunding bonds) 4,770,876 4,770,876 Refunding bonds issued 5,325,000 5,325,000 Bonds refunded (5,325,000) (5,325,000) Bond discount Bond premium Sales of property - Total Other Financing Sources and Uses 0 4,770,876 0 0 0 0 0 0 0 0 0 0 4,770,876 Net Change in Fund Balance (6,200,000) (19,703) 19,703 0 0 0 0 0 0 0 0 0 0 Beginning Fund Balance 0 (19,703) 0 0 0 0 0 0 0 0 0 0 Ending Fund Balance (6,200,000) (19,703) 0 0 0 0 0 0 0 0 0 0 0 46 Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance 12 12 19,715 19,715 (19,703) 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 - 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 Fund Balance by Purpose To be returned to County Available for redevelopment projects (19,703) 0 0 0 0 0 0 0 0 0 0 0 Total Fund Balance (19,703) 0 0 0 0 0 0 0 0 0 0 0 Pooling Analysis Tax increment derived from property 208,994 208,994 208,994 208,994 208,994 208,994 208,994 - - - Indistrict % 80% 80% 80% 80% 80% 80% 80% Minimum tax increment spent /committed within district 167,195 167,195 167,195 167,195 167,195 167,195 167,195 - - - Less increment spent /committed within district 190,824 208,994 208,994 208,994 208,994 208,994 208,994 - - - Annual excess increment (23,629) (41,799) (41,799) (41,799) (41,799) (41,799) (41,799) - - - Cumulative Pooled expenditures 26,314 26,314 26,314 26,314 26,314 26,314 26,314 26,314 26,314 26,314 26,314 Total amount of bonds authorized /issued 5,900,000 5,344,715 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 G.O. Bonds (2011 Series, Refunded 2005 Series) Original issuance /par amount (TIF Portion Only) 1 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 5,325,000 Principal balance 1 3,840,000 3,100,000 2,SSO,000 1,995,000 1,615,000 1,225,000 830,000 420,000 - - - Principal paid from TIF 1 745,000 190,824 208,994 208,994 208,994 208,994 208,994 208,994 - - Principal paid from other sources 740,000 549,176 341,006 346,006 171,006 181,006 186,006 201,006 420,000 Interest paid from TIF 419,520 Interest paid from other sources 56,770 81,650 68,750 57,700 48,3SO 40,650 30,825 18,750 6,300 Interfund Loan from EDA General Fund Original issuance /par amount 19,715 - - - - - Principal balance - - - - - Principal paid Interest Paid 47 District 1 -35 District 1 -35 is a redevelopment TIF district. The District was established to assist with the construction of 11,000 square foot commercial building. The District was created from parcels removed from District 1 -22. This approach established new time limits that constrain use of incre- ments in District 1 -22. The tax increment from District 1 -35 is obligated to repay the developer $170,000 at an interest rate of 6 %. The obligation for payment will end at a date no later than 2/1/2033. Ninety percent (90 %) of annual tax increment is to be used to make payment on the note. The District will be decertified no later than De- cember 31, 2033. The development planned for District 1 -35 has not hap- pened and there has been no tax increment collected from the District or payment made to the Developer. Actions Taken Since 2012 Funds were transferred into TIF District 1 -35 from TIF Dis- trict 1 -22 to cover administrative expenses incurred forTIF 1 -35. Management Strategy Development of the Property The strategy for District 1 -35 focuses on using the es- tablished TIF district to undertake development on this parcel, either as originally planned or as modifications to plans may permit. The factors that allowed the creation of the redevelopment district have been removed. Clear- ance of the site satisfied the criteria of the four -year knock down requirements. Management of this District benefits from 2009 amend- ments to the TIF Act. The limitations of the five -year rule are extended to ten years for the District. Obligations for the use of tax increments must be in place by August 1, 1 -35 Landmark Square II Redevelopment 9/12/2005 12/29/2005 8/1/2006 2008 8/1/2016 12/31/2033 Not applicable. 148.86% $6,263 $2,770 $0 1 $4,111 $4,111 Yes - 010 -36030 2016. The financial implications and options for this District can- not be fully analyzed until development occurs as origi- nally anticipated or an amendment to the Development Agreement is approved. Annual Reporting Requirements Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -35. District Summary District 1 -35 (Landmark Square II) Redevelopment 48 Revenues Tax increment revenue 450,000 Interest and investment earnings 2,101 82 84 86 87 89 91 93 94 96 98 100 102 104 106 108 111 113 115 3,862 Market Value Homestead Credit - Loan /advance repayments Lease proceeds Repayment/ return of tax increment - Total Revenues Expenditures Land /building acquisition 450,000 100,000 2,101 503 82 84 86 87 89 91 93 94 96 98 100 102 104 106 108 111 113 115 3,862 503 Site Improvement /preparation costs 35,000 - Utilltles 35,000 Other public Improvements 45,000 Construction of affordable housing Temporary economic development - Authority administrative costs 45,000 17,487 17,487 Total Project Expenditures Bond principal payments on all other bonds 260,000 17,990 17,990 - Bond principal payments for paygo Bond interest payments on all other bonds 190,000 Bond interest payments for paygo Interest payment on interfund loans Tax increment returned to the county - Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources and Uses Transfer in 450,000 0 17,990 (15,889) 20,000 82 84 86 87 89 91 93 94 96 98 100 102 104 106 108 111 113 115 17,990 (14,128) 20,000 Transfer out - Bond issued (otherthan refunding bonds) Refunding bonds Issued Bonds refunded Bond discount Bond premium Sales of property - Total Other Financing Sources and Uses Net Change in Fund Balance Beginning Fund Balance 0 0 20,000 4,111 0 0 82 4,111 0 84 4,193 0 86 4,277 0 87 4,363 0 89 4,450 0 91 4,539 0 93 4,630 0 94 4,722 0 96 4,817 0 98 4,913 0 100 5,011 0 102 5,112 0 104 5,214 0 106 5,318 0 108 5,424 0 111 5,533 0 113 5,644 0 115 5,756 20,000 5,872 - Ending Fund Balance 0 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 49 5,872 5,872 Assets Cash 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Property held for resale - Other assets - Total Assets 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Liabilities Interfund loan due to non -TIF funds - Other liabilities - Total Liabilities - - - - - - - - - - - - - - - - - - - - Total Fund Balance 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Total Liabilities and Fund Balance 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Fund Balance by Purpose To be returned to County - Availableforredevelopmentprojects 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Total Fund Balance 4,111 4,193 4,277 4,363 4,450 4,539 4,630 4,722 4,817 4,913 5,011 5,112 5,214 5,318 5,424 5,533 5,644 5,756 5,872 5,872 Pooling Analysis Tax increment derived frorn property - - - - - - - - - - - - - - - - - - tndistrict % 75% 75% 7511. 75% 75% 75% 75% 7511. 75% 75% 75% 7511. 75% 75% 75% 75% 7511. 75% Minimum tax increment spent /committed within district - - - - - - - - - - - - - - - - - - Less Increment spent /committed within district - - - - - - - - - - - - - - - - - - Annual excess Inn ement - - - - - - - - - - - - - - - - - - Cumulative Pooled expenditures 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 17,487 Total amount of bonds authorized /issued 450,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 Masters Fifth Avenue - Paygo Obligation Original issuance /par amount 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 Principal balance 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 Principal paid - Interest Paid j District 1 -36 District 1 -36 is an economic development TIF district. The District was established to assist with the construction of 54,000 square foot office /warehouse facility for Dahl - heimer Distributing. The tax increment from the District was obligated to repay an interfund loan from the EDA in the original maximum amount of $439,224. All available tax increment was committed for repayment of the inter - fund loan. The District was decertified as of December 31, 2015. Actions Taken Since 2012 Payments on the note were made. Management Strategy There are no outstanding items. The TIF District is decerti- fied and the Fund closed as of December 31, 2015. Annual Reporting Requirements • The 2015 annual reporting form must be filed with the Office of the State Auditor. This should be the final year of reporting that is required. District Summary District 1 -36 (Rocky Mountain Group) Economic Development 51 Revenues Tax increment revenue 650,000 583,222 583,222 Interest and investment earnings 50,000 46,004 - 46,004 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds - Repayment / return of tax increment 40,292 40,292 Total Revenues 700,000 669,518 - 669,518 Expenditures Land /building acquisition 411,768 50,000 50,000 Site improvement /preparation costs 135,776 38,568 38,568 Utilities 116,221 116,221 Other public improvements 390,724 390,724 Construction of affordable housing - Temporary economic development - Authority administrative costs 20,456 20,456 20,456 Total Project Expenditures 568,000 615,969 - 615,969 Bond principal payments on all other bonds - Bond principal payments for paygo - Bond interest payments on all other bonds 132,000 - Bond interest payments for paygo - Interest payment on interfund loans 115,564 115,564 Tax increment returned to the county - Total Expenditures 700,000 731,533 - 731,533 Revenues Over (Under) Expenditures - (62,015) - (62,015) Other Financing Sources and Uses Transfer in 62,015 62,015 Transfer out - Bond issued (other than refunding bonds) - Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - 62,015 - 62,015 Net Change in Fund Balance - - - - Beginning Fund Balance - - - Ending Fund Balance - - - - District Summary 6N Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance Fund Balance by Purpose To be returned to County - Available for economic development projects - - - Total Fund Balance - - - Pooling Analysis Tax increment derived from property - Indistrict % 80% Minimum tax increment spent /committed within district - Less increment spent /committed within district - Annual excess increment - Cumulative Pooled expenditures 20,456 20,456 20,456 Total amount of bonds authorized /issued 600,000 439,224 439,224 439,224 Interfund Loan from EDA General Fund Original issuance /par amount 439,224 439,224 439,224 Principal balance 110,975 - - Principal paid 328,249 - Interest Paid 115,564 - District Summary 53 District 1 -38 District 1 -38 is an economic development TIF district. The District was established to assist with the construction of a production /warehouse facility for Walker InStore. The tax increment from the District is obligated to repay a $152,460 interfund loan from the EDA general fund at an interest rate of 8 %. All available tax increment is commit- ted for payment on the loan. The District will be decerti- fied no later than December 31, 2017. Actions Taken Since 2012 Payments on the outstanding note were made. The TIF Plan for the District was modified in order to modify the line items within the original approved budget. Management Strategy Discharge Obligations The focus of this District is the repayment of the interfund loan. Current projections estimate at the time of decerti- fication the interfund loan will have an outstanding bal- ance of $118,781. This assumes no increase in the collec- tion of annual tax increment between 2016 and 2017. To the extent that tax increment collection is greater than projected then additional funds will be available for re- payment of the interfund loan. Any unpaid balance due to the EDA general fund will need to be written -off at the when the Fund for the District is closed. Annual Reporting Requirements Annual reporting form must be filed with the Office of the State Auditor as long as a balance of tax increment remains for District 1 -38. District Summary District 1 -38 (Walker) Economic Development ry 54 District Summary Revenues Tax increment revenue 120,000 87,378 11,462 11,462 110,303 Interest and investment earnings 0 0 0 0 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds - Repayment / return of tax increment - Total Revenues 120,000 87,378 11,462 11,462 0 110,303 Expenditures Land /building acquisition 73,500 152,460 152,460 Site improvement /preparation costs - Utilities - Other public improvements - Construction of affordable housing - Temporary economic development - Authority administrative costs 1,500 1,457 1,457 Total Project Expenditures 75,000 153,917 - - - 153,917 Bond principal payments on all other bonds - Bond principal payments for paygo - Bond interest payments on all other bonds 45,000 - Bond interest payments for paygo - Interest payment on interfund loans 55,283 9,711 9,569 - 74,563 Tax increment returned to the county - Total Expenditures 120,000 209,200 9,711 9,569 - 228,480 Revenues Over (Under) Expenditures 0 (121,822) 1,751 1,893 0 (118,177) Other Financing Sources and Uses Transfer in - Transfer out - Bond issued (other than refunding bonds) - Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - - - - - - Net Change in Fund Balance - (121,822) 1,751 1,893 0 (118,177) Beginning Fund Balance - (121,822) (120,071) (118,177) - Ending Fund Balance - (121,822) (120,071) (118,177) (118,177) (118,177) 55 District Summary Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance 0 1 1 1 To be returned to County 0 Available for economic development projects (121,822) (120,071) (118,177) (118,177) (118,177) - 0 1 1 1 121,822 120,071 118,178 118,178 118,178 TIF derived from property 11,462 11,462 - 121,822 120,071 118,178 118,178 118,178 (121,822) (120,071) (118,177) (118,177) (118,177) - 0 1 1 1 Fund Balance by Purpose 152,460 152,460 152,460 152,460 152,460 To be returned to County 0 Available for economic development projects (121,822) (120,071) (118,177) (118,177) (118,177) Total Fund Balance (121,822) (120,071) (118,177) (118,177) (118,177) Pooling Analysis 120,071 118,178 118,178 118,178 Principal paid TIF derived from property 11,462 11,462 - Indistrict % 80% 80% 80% Minimum TIF spent /committed within district 9,170 9,170 - Less TIF spent /committed within district 11,462 11,462 - Annual excess increment (2,292) (2,292) - Cumulative Pooled expenditures 1,457 1,457 1,457 1,457 Total amount of bonds authorized /issued 160,000 152,460 152,460 152,460 152,460 152,460 Interfund Loan from EDA General Fund Original issuance /par amount 152,460 152,460 152,460 152,460 152,460 Principal balance 121,822 120,071 118,178 118,178 118,178 Principal paid 42,834 1,751 1,893 Interest Paid 55,283 9,711 9,569 M District 1 -39 District 1 -39 is an economic development TIF district. The District was established to assist with the construction of a 40,000 square foot manufacturing facility in the City. The EDA provided assistance to the project through a write- down of the land cost. Tax increment from the District is obligated to repay a $413,994 interfund loan at an interest rate of 4 %. The authority for the interfund loan is included within the language of the development agreement. The loan was authorized to finance the acquisition of land. The interfund loan is payable through the last date of receipt of tax increment. All available tax increment is committed for payment on the interfund loan. Actions Taken Since 2012 This District was established after the 2012 TIF Manage- ment Report. The TIF Plan for the District was modified in year 2014 in order to increase the budget and the amount of bonds to be issued to reflect final plans and agreement with the developer of the facility. Management Strategy Discharge Obligations The focus of this District will be the repayment of the in- terfund loan. Current projections estimate at the time of decertification the interfund loan will have an outstand- ing balance of $78,693. This assumes no increase in the collection of annual tax increment between 2016 and 2021.To the extent that tax increment collection is greater than projected then additional funds will be available for repayment of the interfund loan. Any unpaid balance due to the EDA general fund will need to be written -off at the when the Fund for the District is closed. Annual Reporting Requirements Annual reporting form must be filed with the Office of 1 -39 Suburban Mfg II Economic Development 8/22/2011 6/29/2012 7/24/2012 2013 7/24/2017 12/31/2021 3/24/2014 121.49% $5,992 $53,250 $47,258 1 ($303,910) $56 Yes 1155- 223 - 001010 the State Auditor as long as a balance of tax increment remains for District 1 -39. District Summary District 1 -39 (Otter Creek Crossing) Economic Development • x. r{ r x � »r _ 57 Revenues Tax increment revenue 550,000 155,162 45,547 45,547 45,547 45,547 45,547 45,547 428,443 Interest and investment earnings 8,000 56 1 1 1 1 1 1 1 64 Market Value Homestead Credit - Loan /advance repayments - Lease proceeds - Repayment / return of tax increment - Total Revenues 558,000 155,218 45,548 45,548 45,548 45,548 45,548 45,548 1 428,507 Expenditures Land /building acquisition 413,994 413,994 413,994 Site improvement /preparation costs - Utilities - Other public improvements - Construction of affordable housing - Temporary economic development - Authority administrative costs 46,760 - Total Project Expenditures 460,754 413,994 - - - - - - - 413,994 Bond principal payments on all other bonds - Bond principal payments for paygo - Bond interest payments on all other bonds 97,246 - Bond interest payments for paygo - Interest payment on interfund loans 45,134 10,701 10,417 8,998 7,521 5,985 4,387 - 93,143 Tax increment returned to the county - Total Expenditures 558,000 459,128 10,701 10,417 8,998 7,521 5,985 4,387 - 507,137 Revenues Over (Under) Expenditures - (303,910) 34,847 35,131 36,550 38,027 39,563 41,161 1 (78,630) Other Financing Sources and Uses Transfer in - Transfer out - Bond issued (other than refunding bonds) - Refunding bonds issued - Bonds refunded - Bond discount - Bond premium - Sales of property - Total Other Financing Sources and Uses - - - - - - - - - - Net Change in Fund Balance - (303,910) 34,847 35,131 36,550 38,027 39,563 41,161 1 (78,630) Beginning Fund Balance - (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) - Ending Fund Balance - (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) (78,630) (78,630) 58 Assets Cash Property held for resale Other assets Total Assets Liabilities Interfund loan due to non -TIF funds Other liabilities Total Liabilities Total Fund Balance Total Liabilities and Fund Balance 56 57 58 59 60 61 62 63 63 - Available for economic development projects (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) (78,630) (78,630) Total Fund Balance (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) 56 57 58 59 60 61 62 63 63 303,966 269,120 233,990 197,441 159,415 119,853 78,693 78,693 78,693 80% 80% 80% 80% 80% Minimum TIF spent /committed within district 36,437 36,437 36,437 36,437 303,966 269,120 233,990 197,441 159,415 119,853 78,693 78,693 78,693 (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) (78,630) (78,630) 56 57 58 59 60 61 62 63 63 Fund Balance by Purpose 413,994 413,994 413,994 413,994 413,994 413,994 To be returned to County 413,994 413,994 - Available for economic development projects (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) (78,630) (78,630) Total Fund Balance (303,910) (269,063) (233,932) (197,382) (159,355) (119,792) (78,631) (78,630) (78,630) Pooling Analysis 413,994 413,994 413,994 413,994 413,994 413,994 413,994 TIF derived from property 45,547 45,547 45,547 45,547 45,547 45,547 - Indistrict % 80% 80% 80% 80% 80% 80% 80% Minimum TIF spent /committed within district 36,437 36,437 36,437 36,437 36,437 36,437 - Less TIF spent /committed within district 45,547 45,547 45,547 45,547 45,547 45,547 - Annual excess increment (9,109) (9,110) (9,110) (9,110) (9,110) (9,110) - 59 Cumulative Pooled expenditures - - - - - - - - - Total amount of bonds authorized /issued 413,994 413,994 413,994 413,994 413,994 413,994 413,994 413,994 413,994 413,994 Interfund Loan from EDA General Fund Original issuance /par amount 413,994 413,994 413,994 413,994 413,994 413,994 413,994 413,994 413,994 Principal balance 303,966 269,120 233,990 197,441 159,415 119,853 78,693 78,693 78,693 Principal paid 110,028 34,846 35,130 36,549 38,026 39,562 41,160 - Interest Paid 45,134 10,701 10,417 8,998 7,521 5,985 4,387 - 59 New TIF Districts Early Decertifications Prior Year Early Dece Payable 2015 Decertifications Cty Authority Code ISD 2015 Appendix Table 3 Knock Down Report from Wright County Received from the County February 29, 2016 2013 Legislature extended knockdown to 12 -31 -2016 for districts certified between 1-1-05-4-20-09 *- Parcels are knocked down in the payable year AFTER the knockdown proof year TIF Plan Original Cerifcation 4 Year Qualifying 4 Year For Payable Knockdown 1st year Decertification Early Decert District District Type Approval CRD Date Activity Proof Date Year Pass /Fail TI Date Date Monticello 080 882 Mississippi Shores TIF 1 -19 Housing 3/13/1995 4/27/1995 4/30/1995 4/30/1999 2/1/2000 2001 Pass 1998 2/31/2023 Monticello 620 882 Prairie West TIF 1 -20 Redevelopment 6/24/1996 12/20/1996 12/23/1996 12/23/2000 2/1/2001 2002 Pass 1999 2/31/2024 Monticello 622 882 Central Monticello TIF 1 -22 Redevelopment 3/10/1997 6/25/1997 6/30/1997 6/30/2001 2/1/2002 2003 Fail 1999 2/31/2024 Monticello 624 882 Church of St Henry TIF 1 -24 Housing 8/24/1998 1/4/1999 1/8/1999 1/8/2003 2/1/2004 2005 Pass 2001 2/31/2026 Monticello 629 882 Front Porch TIF 1 -29 Housing 3/15/2002 6/14/2002 8/22/2002 8/22/2006 2/1/2007 2008 Pass 2004 2/31/2029 Monticello 630 882 ICentral MN Housing I Housing 6/24/2002 1 6/28/2002 8/22/2002 8/22/2006 2/1/2007 2008 1 Pass 1 2004 2/31/2029 Monticello 634 882 Monticello Interchange TIF 1 -34 Renewal & Reno 7/25/2005 8/15/2005 8/1/2006 12/31/2016 2/1/2017 2018 Pass 2007 12/31/2022 Monticello 635 882 Landmark Square II TIF 1 -35 Redevelopment 9/12/2005 12/29/2005 8/1/2006 12/31/2016 2/1/2017 2018 Pass " "still no TI 12/31/2036 Monticello Monticello 636 637 638 882 882 882 Rocky Mountain Group TIF 1 -36 S L Real Estate VVRE LLC TIF 1 -38 Economic Economic 8/22/2005 4/23/2007 12/30/2005 1912006 10/1/2007 8/1/2006 7/14/2008 12/31/2016 12/31/2016 2/1/2017 2/1/2017 2018 2018 Pass Pass 2007 2009 12/31/2015 112016 12/31/2017 12/31/2014 Monticello 1 639 1 882 Puburban Manufacturing II Economic 8/22/2011 6/29/2012 7/24/2012 7/24/2016 2/1/2017 2018 Pass 2013 2/31/2021 .1 This appendix contained selected elements of State Law governing the use of TIF and related to the management of Monticello TIF districts. These statutes are current in 2015. Laws governing TIF may change in the future. This appendix is intended solely as an informational reference. Specific management actions must be based on a review of the relevant statutory language in effect at the time. Administrative Expense Administrative Expense Defined (469.174, Subd. 14) "Administrative expenses" means all expenditures of an authority other than: (1) amounts paid for the purchase of land; (2) amounts paid to contractors or others providing mate- rials and services, including architectural and engineering services, directly connected with the physical develop- ment of the real property in the project; (3) relocation benefits paid to or services provided for per- sons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs de- scribed in clauses (1) to (3). For districts for which the requests for certifications were made before August 1, 1979, or after June 30, 1982, "ad- ministrative expenses" includes amounts paid for services provided by bond counsel, fiscal consultants, and plan- ning or economic development consultants. Limitation on Administrative Expenses (469.176, Subd. 3) (a) For districts for which certification was requested be- fore August 1, 1979, or after June 30, 1982 and before Au- gust 1, 2001, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total estimated tax increment expenditures authorized by the tax increment financing plan or the to- tal tax increment expenditures for the project, whichever is less. (b) For districts for which certification was requested after July 31, 1979, and before July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the total tax increment expenditures authorized by the tax increment financing plan or the total estimated tax increment expenditures for the district, whichever is less. (c) For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for a project which exceed ten percent of total estimated tax increment expenditures au- thorized by the tax increment financing plan or the total tax increments, as defined in section 469.174, subdivision 25, clause (1), from the district, whichever is less. (d) Increments used to pay the county's administrative expenses under subdivision 4h are not subject to the per- centage limits in this subdivision. District Limitations Redevelopment Districts (469.176, Subd. 4j) At least 90 percent of the revenues derived from tax in- crements from a redevelopment district or renewal and renovation district must be used to finance the cost of cor- recting conditions that allow designation of redevelop- Appendix Excerpts from TIF Act 2015 Statutes W ment and renewal and renovation districts under section 469.174.These costs include, but are not limited to, acquir- ing properties containing structurally substandard build- ings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, de- molition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation sonal property, excluding retail sales; (3) research and development related to the activities list- ed in clause (1) or (2); (4) telemarketing if that activity is the exclusive use of the property; (5) tourism facilities; necessary to development of the land, and installation of (6) qualified border retail facilities; or utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority, in- cluding the cost of preparation of the development action response plan, may be included in the qualifying costs. Housing Districts (469.176, Subd. 4d) Revenue derived from tax increment from a housing dis- trict must be used solely to finance the cost of housing projects as defined in sections 469.174, subdivision 11, and 469.1761. The cost of public improvements directly related to the housing projects and the allocated admin- istrative expenses of the authority may be included in the cost of a housing project. Economic Development Districts (469.176, Subd. 4c) (a) (a) Revenue derived from tax increment from an eco- nomic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsi- dies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2) warehousing, storage, and distribution of tangible per- (7) space necessary for and related to the activities listed in clauses (1) to (6). (b) Notwithstanding the provisions of this subdivision, revenues derived from tax increment from an economic development district may be used to provide improve- ments, loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 square feet of any separately owned commercial facility located within the municipal jurisdiction of a small city, if the revenues de- rived from increments are spent only to assist the facility directly or for administrative expenses, the assistance is necessary to develop the facility, and all of the increments, except those for administrative expenses, are spent only for activities within the district. (c) A city is a small city for purposes of this subdivision if the city was a small city in the year in which the request for certification was made and applies for the rest of the dura- tion of the district, regardless of whether the city qualifies or ceases to qualify as a small city. Knock Down Action Required (469.176, Subd. 6) (a) If, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to section 469.177, no demolition, reha- Appendix Excerpts from TIF Act 2015 Statutes bilitation, or renovation of property or other site prepara- tion, including qualified improvement of a street adjacent to a parcel but not installation of utility service including Pooling and Five -Year Rule (469.1763) Subdivision 1.Definitions. sewer or water systems, has been commenced on a par- (a) For purposes of this section, the following terms have cel located within a tax increment financing district by the the meanings given. authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax incre- ment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the origi- nal net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation, or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accor- dance with the tax increment financing plan, the author- ity shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the com- missioner of revenue and add it to the original net tax ca- pacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submit- ted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial re- construction or rebuilding of an existing street. (b) For districts which were certified on or after January 1, 2005, and before April 20, 2009, the four year period under paragraph (a) is deemed to end on December 31, 2016. (b) "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazard- ous waste or pollution, installation of utilities, construc- tion of public or private improvements, and other similar activities, but only to the extent that tax increment rev- enues may be spent for such purposes under other law. (c) "Third party" means an entity other than (1) the person receiving the benefit of assistance financed with tax incre- ments, or (2) the municipality or the development author- ity or other person substantially under the control of the municipality. (d) "Revenues derived from tax increments paid by prop- erties in the district' means only tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include tax increment as defined in section 469.174, sub- division 25, clauses (2), (3), and (4). Subd. 2.Expenditures outside district. (a) For each tax increment financing district, an amount equal to at least 75 percent of the total revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to fi- nance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the in -dis- trict percentage for purposes of the preceding sentence is 80 percent. Not more than 25 percent of the total revenue Appendix Excerpts from TIF Act 2015 Statutes derived from tax increments paid by properties in the dis- trict may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the pooling percentage for purposes of the pre- ceding sentence is 20 percent. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating the percentages that must be expended within and without the district. (b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district. (c) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district under this subdivision are for the purposes described in paragraph (d), administrative ex- penses will be considered as expenditures for activities in the district. (d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivi- sion 4k, the expenditures, including the permitted expen- ditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permit- ted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the in- crease under this paragraph, the expenditures must: (1) be used exclusively to assist housing that meets the requirement for a qualified low- income building, as that term is used in section 42 of the Internal Revenue Code; and (2) not exceed the qualified basis of the housing, as de- fined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and (3) be used to: (i) acquire and prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing; or (iii) make public improvements directly related to the housing; or (4) be used to develop housing: (i) if the market value of the housing does not exceed the lesser of: (A) 150 percent of the average market value of single - family homes in that municipality; or (B) $200,000 for municipalities located in the met- ropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and (ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing struc- tures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclo- sure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption pe- riod stated in the notice provided under section 580.06 Appendix Excerpts from TIF Act 2015 Statutes ,i has expired. (e) For a district created within a biotechnology and health sciences industry zone as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing district located within such a zone, tax increment derived from such a district may be expended outside of the dis- trict but within the zone only for expenditures required for the construction of public infrastructure necessary to support the activities of the zone, land acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are considered as ex- penditures for activities within the district. The authority provided by this paragraph expires for expenditures made after the later of (1) December 31, 2015, or (2) the end of the five -year period beginning on the date the district was certified, provided that date was before January 1, 2016. (f) The authority under paragraph (d), clause (4), expires on December 31, 2016. Increments may continue to be expended under this authority after that date, if they are used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if December 31, 2016, is considered to be the last date of the five -year period af- ter certification under that provision. Subd.3.Five -year rule. (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (1) before or within five years after certification of the dis- trict, the revenues are actually paid to a third party with respect to the activity; (2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (i) the five -year period, or (ii) a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a rea- sonably required reserve or replacement fund; (3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation; (4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs; or (5) expenditures are made for housing purposes as per- mitted by subdivision 2, paragraphs (b) and (d), or for public infrastructure purposes within a zone as permit- ted by subdivision 2, paragraph (e). (b) For purposes of this subdivision, bonds include sub- sequent refunding bonds if the original refunded bonds meet the requirements of paragraph (a), clause (2). (c) For a redevelopment district or a renewal and renova- tion district certified after June 30, 2003, and before April 20, 2009, the five -year periods described in paragraph (a) are extended to ten years after certification of the district. This extension is provided primarily to accommodate de- lays in development activities due to unanticipated eco- nomic circumstances. Subd. 4.Use of revenues for decertification. (a) In each year beginning with the sixth year following certification of the district, if the applicable in- district per- Appendix Excerpts from TIF Act 2015 Statutes W cent of the revenues derived from tax increments paid by properties in the district exceeds the amount of expendi- tures that have been made for costs permitted under sub- division 3, an amount equal to the difference between the in- district percent of the revenues derived from tax incre- ments paid by properties in the district and the amount of expenditures that have been made for costs permitted under subdivision 3 must be used and only used to pay or defease the following or be set aside to pay the following: (1) outstanding bonds, as defined in subdivision 3, para- graphs (a), clause (2), and (b); (2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4); (3) credit enhanced bonds to which the revenues de- rived from tax increments are pledged, but only to the extent that revenues of the district for which the credit enhanced bonds were issued are insufficient to pay the bonds and to the extent that the increments from the ap- plicable pooling percent share for the district are insuf- ficient; or (4) the amount provided by the tax increment financing plan to be paid under subdivision 2, paragraphs (b), (d), and (e). (b) The district must be decertified and the pledge of tax increment discharged when the outstanding bonds have been defeased and when sufficient money has been set aside to pay, based on the increment to be col- lected through the end of the calendar year, the following amounts: (1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and (4); (2) the amount specified in the tax increment financing plan for activities qualifying under subdivision 2, para- graph (b), that have not been funded with the proceeds of bonds qualifying under paragraph (a), clause (1); and (3) the additional expenditures permitted by the tax in- crement financing plan for housing activities under an election under subdivision 2, paragraph (d), that have not been funded with the proceeds of bonds qualifying under paragraph (a), clause (1). Subd. 5.Credit enhanced bonds. Except as otherwise provided in this section, revenues de- rived from tax increments may be used to pay debt service on credit enhanced bonds issued to finance activities out- side of the district from which the revenues are derived, regardless of when the district is created. For purposes of this subdivision, "district' includes a district or a project area for which certification to collect increments was re- quested before August 1, 1979. Subd. 6.Pooling permitted for deficits. (a) This subdivision applies only to districts for which the request for certification was made before August 1, 2001, and without regard to whether the request for certifica- tion was made prior to August 1, 1979. (b) The municipality for the district may transfer available increments from another tax increment financing district located in the municipality, if the transfer is necessary to eliminate a deficit in the district to which the increments are transferred. The municipality may transfer increments as provided by this subdivision without regard to whether the transfer or expenditure is authorized by the tax incre- ment financing plan for the district from which the trans- fer is made. A deficit in the district for purposes of this sub- division means the lesser of the following two amounts: Appendix Excerpts from TIF Act 2015 Statutes :. MW the amount due during the calendar year to pay preexisting obligations of the district; minus (ii) the total increments collected or to be collected from properties located within the district that are available for the calendar year including amounts collected in prior years that are currently available; plus (iii) total increments from properties located in other districts in the municipality including amounts collect- ed in prior years that are available to be used to meet the district's obligations under this section, excluding this subdivision, or other provisions of law (but exclud- ing a special tax under section 469.1791 and the grant program under Laws 1997, chapter 231, article 1, sec- tion 19, or Laws 2001, First Special Session chapter 5); or (2) the reduction in increments collected from properties located in the district for the calendar year as a result of the changes in class rates in Laws 1997, chapter 231, ar- ticle 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001, First Special Session chapter 5, or the elimination of the general education tax levy un- der Laws 2001, First Special Session chapter 5. The authority may compute the deficit amount under clause (1) only (without regard to the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution, to use increments from the district to which increments are to be transferred and any transferred in- crements are only used to pay preexisting obligations and administrative expenses for the district that are required to be paid under section 469.176, subdivision 4h, para- graph (a). (c) A preexisting obligation means: (1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued to refund such bonds or to reimburse expenditures made in conjunction with a signed con- tractual agreement entered into before August 1, 2001, to the extent that the bonds are secured by a pledge of increments from the tax increment financing district; and (2) binding contracts entered into before August 1, 2001, to the extent that the contracts require payments se- cured by a pledge of increments from the tax increment financing district. (d) The municipality may require a development authority, other than a seaway port authority, to transfer available increments including amounts collected in prior years that are currently available for any of its tax increment fi- nancing districts in the municipality to make up an insuffi- ciency in another district in the municipality, regardless of whether the district was established by the development authority or another development authority. This author- ity applies notwithstanding any law to the contrary, but applies only to a development authority that: (1) was established by the municipality; or (2) the governing body of which is appointed, in whole or part, by the municipality or an officer of the munici- pality or which consists, in whole or part, of members of the governing body of the municipality. The municipality may use this authority only after it has first used all avail- able increments of the receiving development authority to eliminate the insufficiency and exercised any permit- ted action under section 469.1792, subdivision 3, for pre- existing districts of the receiving development authority to eliminate the insufficiency. (e) The authority under this subdivision to spend tax incre- ments outside of the area of the district from which the Appendix Excerpts from TIF Act 2015 Statutes :3J tax increments were collected: (1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e, 4i, and 4j; the expen- diture limits under section 469.176, subdivision 1c; and the other provisions of this section; and the percentage restrictions under subdivision 2 must be calculated after deducting increments spent under this subdivision from the total increments for the district; and (2) applies notwithstanding the provisions of the Tax In- crement Financing Act in effect for districts for which the request for certification was made before June 30, 1982, or any other law to the contrary. (f) If a preexisting obligation requires the development authority to pay an amount that is limited to the incre- ment from the district or a specific development within the district and if the obligation requires paying a higher amount to the extent that increments are available, the municipality may determine that the amount due under the preexisting obligation equals the higher amount and may authorize the transfer of increments under this sub- division to pay up to the higher amount. The existence of a guarantee of obligations by the individual or entity that would receive the payment under this paragraph is dis- regarded in the determination of eligibility to pool under this subdivision. The authority to transfer increments un- der this paragraph may only be used to the extent that the payment of all other preexisting obligations in the munici- pality due during the calendar year have been satisfied. (g) For transfers of increments made in calendar year 2005 and later, the reduction in increments as a result of the elimination of the general education tax levy for purposes of paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes payable in 2001, multiplied by the captured tax capacity of the district for the current taxes payable year. Modification of Plan (469.175, Subd. 4) (a) A tax increment financing plan may be modified by an authority. (b) The authority may make the following modifications only upon the notice and after the discussion, public hear- ing, and findings required for approval of the original plan: (1) any reduction or enlargement of geographic area of the project or tax increment financing district that does not meet the requirements of paragraph (e); (2) increase in amount of bonded indebtedness to be in- curred; (3) a determination to capitalize interest on the debt if that determination was not a part of the original plan; (4) increase in the portion of the captured net tax capac- ity to be retained by the authority; (5) increase in the estimate of the cost of the project, in- cluding administrative expenses, that will be paid or fi- nanced with tax increment from the district; or (6) designation of additional property to be acquired by the authority. (c) If an authority changes the type of district to another type of district, this change is not a modification but re- quires the authority to follow the procedure set forth in sections 469.174 to 469.179 for adoption of a new plan, in- cluding certification of the net tax capacity of the district by the county auditor. (d) If a redevelopment district or a renewal and renovation district is enlarged, the reasons and supporting facts for Appendix Excerpts from TIF Act 2015 Statutes the determination that the addition to the district meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or subdivision 10a, must be docu- mented. (e) The requirements of paragraph (b) do not apply if (1) the only modification is elimination of parcels from the project or district and (2)(A) the current net tax capacity of the parcels eliminated from the district equals or ex- ceeds the net tax capacity of those parcels in the district's original net tax capacity or (B) the authority agrees that, notwithstanding section 469.177, subdivision 1, the origi- nal net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated from the district. The authority must notify the county auditor of any modification that reduces or enlarges the geographic area of a district or a project area. (f) The geographic area of a tax increment financing dis- trict may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor or after August 1, 1984, for tax increment financing districts authorized prior to August 1, 1979. Decertification (469.177, Subd 12) The county auditor shall decertify a tax increment financ- ing district when the earliest of the following times is reached: (1) the applicable maximum duration limit under section 469.176, subdivisions 1 a to 1 g; (2) the maximum duration limit, if any, provided by the municipality pursuant to section 469.176, subdivision 1; (3) the time of decertification specified in section 469.1761, subdivision 4, if the commissioner of revenue issues an order of noncompliance and the maximum du- ration limit for economic development districts has been exceeded; (4) upon completion of the required actions to allow de- certification under section 469.1763, subdivision 4; or (5) upon the later of receipt by the county auditor of a written request for decertification from the authority that requested certification of the original net tax capacity of the district or its successor or the decertification date specified in the request. Appendix Excerpts from TIF Act 2015 Statutes NORTHLAND SECURITIES Northland Securities, Inc. 45 South 7th Street, Suite 2000 Minneapolis, MN 55402 (800) 851 -2920 Member NASD and SIPC Monticello TIF Management Plan 2016 The information in this presentation is based on sources believed to be reliable, but does not purport to be complete and is not warranted by Northland Securities, Inc.. o Plan overview o Overview of TIF in Monticello o Executive Summary o Regulatory Framework o Statutory Factors o District Summaries - Available Fund Balance o District Summary for Individual TIF Districts NORTHLAND SECURITIES August 10, 2016, EDA Meeting 1 CITY OF MONTICELLO MANAGEMENT PLAN FORTAX INCREMENT FINANCING (TIF) DISTRICTS Hc8$46 F—" c3 August 10, 2016 Presentation to Monticello W' _ Economic Development Authority TammyOmdal 4368 c Senior Vi President, Northland Securities HK 9269ce ;;y NORTHLAND SECURITIES 5tl... Member FINR4 and SIPC The information in this presentation is based on sources believed to be reliable, but does not purport to be complete and is not warranted by Northland Securities, Inc.. o Plan overview o Overview of TIF in Monticello o Executive Summary o Regulatory Framework o Statutory Factors o District Summaries - Available Fund Balance o District Summary for Individual TIF Districts NORTHLAND SECURITIES August 10, 2016, EDA Meeting 1 Monticello TIF Management Plan 2016 o Actions taken since 2012 • Decertified four TIF districts 0 - 5,1- 6,1 -36, and 1 -37) • Advanced implementation of downtown study • Purchased key parcels for redevelopment • Adopted a plan for pooling increment for downtown district ■ EDA has met all of its obligations NORTHLAND " I y SECURITIES o Study approach • Plan balances with city's financial statements • Reconciliation of the Plan to annual reporting to the State ■ The Plan is not an "audit" of the TIF districts o Using the Plan • Guide for on -going TIF management • As shown by the 2009 and 2012 Plans - much of the information within has enduring value to the EDA • Management of the TIF districts is dynamic and impacted by changes in law that are outside of the EDA's control NORTHLAND SECURITIES August 10, 2016, EDA Meeting 2 Monticello TIF Management Plan 2016 *City has 10 established and active TIF districts * In addition to these 10, the City has 2 TIF districts that are decertified but have funds remaining ■ TIF 1 -6 is the oldest district (originally established in 1985 and decertified in 2013) with balance remaining o Project Area ■ All TIF districts are within the Central Monticello Redevelopment Project Area No.1 NORTHLAND " I y SECURITIES NORTHLAND 'r SECURITIES August 10, 2016, EDA Meeting 3 Monticello TIF Management Plan 2016 *Pre -1990 District ■ TIF District 1 -6 *Post 1990 - Sound Plans • Tax increment revenue is projected to be sufficient to meet all current obligations • TIF 1- 19,1- 20,1- 24,1- 29,1 -30, and 1 -36 *Post 1990 - Management Challenges • Tax increment revenue is not projected to be sufficient to meet all current obligations • TIF 1- 22,1- 34,1- 35,1 -38, and 1 -39 NORTHLAND " I y SECURITIES *Use of TIF is governed by four distinct factors: ■ State law at time the district is created o Ability to spend money outside of the district (pooling) o Application of the 5 -year rule and 6 -year rule o Limitations on administrative expense • Current state law • Adopted plan for the TIF district • Development agreement NORTHLAND SECURITIES August 10, 2016, EDA Meeting 4 Monticello TIF Management Plan 2016 o Limitations on administrative expenses 04 -Year Knock Down Rule ■ All of the Monticello TIF districts are in compliance o Pooling ■ Five Year Rule Five years from date of certification to spend or obligate tax increment ■ SixYear Rule Beginning in year six from date of certification and each year following, if the in- district percentage of the TIF received exceeds the cost spent on in- district obligations, the excess must be used only to pay or defease certain obligations Differing interpretations of the six-year rule exist NORTHLAND " I y SECURITIES August 10, 2016, EDA Meeting 5 Monticello TIF Management Plan 2016 • Pre -1990 redevelopment district • $693,728 fund balance as of 12/31/15 • Fund will remain open until balance is spent • Balance can be spent on TIF eligible projects, including redevelopment, housing, or economic development • Spending must be consistent with the adopted budget in the TIF Plan NORTHLAND SECURITIES August 10, 2016, EDA Meeting 6 Monticello TIF Management Plan 2016 o Housing (rental) district o $150,351 fund balance as of 12/31/15 o Final payment was made on TIF note 2/1/12 • For the EDA to keep district open and collecting tax increment, owner of property will need to continue to income qualify tenants • Fund balance and future tax increment can be spent to assist affordable housing projects NORTHLAND " I y SECURITIES o Redevelopment district o $127,785 fund balance as of 12/31/15 ■ Of this balance, $45,126 owed to the County as excess increment o $65,000 interfund loan from the EDA has been repaid o $76,592 pay -go TIF note outstanding as of 12/31/15, with final payment to be made on 2/1/18 o Use of tax increment from the district must be consistent with the adopted TIF Plan ■ EDA could authorize pooling of funds for affordable housing NORTHLAND SECURITIES August 10, 2016, EDA Meeting 7 Monticello TIF Management Plan 2016 o Redevelopment district o $103,840 fund balance as of 12/31/15 • Of this balance, $166,289 owed to the County as excess increment • Net negative balance is covered by an interfund loan o $684,416 combined pay -go TIF notes outstanding as of 12/31/15, with final payments to be made on 2/1/20 and 2/1/23 o Use of tax increment from the district must be consistent with the adopted TIF Plan NORTHLAND " I y SECURITIES • Plan estimates that by year 2025, TIF 1 -22 will have $845,000 of tax increment available to assist with redevelopment and /or affordable housing projects • EDA has authorized an interfund loan allowing for the advance of up to $500,000 in funds (for pooling) ■ As of 12/31/2015 the balance on the interfund loan is $386,574 NORTHLAND SECURITIES August 10, 2016, EDA Meeting 8 Monticello TIF Management Plan 2016 • Housing (rental) district • $54,664 fund balance as of 12/31/15 • Final payment on TIF note ending no later than 2/11/2020 ■ Projected future tax increment revenue will not be sufficient to repay the note, EDA has pledged tax increment only and has no obligation to repay the note • Income qualification for owner - occupied housing is at time of the original sale; no on -going income verification required • Fund balance and future tax increment can be spent to assist affordable housing projects NORTHLAND " I y SECURITIES • Housing (owner- occupied) district • $94,892 fund balance as of 12/31/15 • Final payment on TIF note in 2016 • For the EDA to keep district open and collecting tax increment, owner of property will need to continue to income qualify tenants • Fund balance and future tax increment can be spent to assist affordable housing projects NORTHLAND SECURITIES August 10, 2016, EDA Meeting 9 Monticello TIF Management Plan 2016 • Housing (owner- occupied) district • ($41,749) fund balance as of 12/31/15 o Only obligation is for the repayment of an interfund loan • Loan issued in the original amount of $185,000with balance of $139,705 as of 12/31/15 • Tax increment is projected to be sufficient to repay the loan o Future tax increment can be spent to assist affordable housing projects NORTHLAND " I y SECURITIES o Renewal and Renovation district o ($19,703) fund balance as of 12/31/15 • Tax increment is pledged to the GO 2011A Refunding Bonds (original issue 2005A) • Tax increment generated has been less than originally projected and the City has needed to pay a larger portion of the debt service on the GO Bonds • EDA authorized an interfund loan to advance funds for payment of the GO Bonds if needed o City anticipates it will cover the shortfall in future years NORTHLAND `rte SECURITIES August 10, 2016, EDA Meeting 10 Monticello TIF Management Plan 2016 o Redevelopment district o $4,111 fund balance as of 12/31/15 • Paygo obligation of $170,000 is outstanding payable solely from 90% of the tax increment • District has not generated any tax increment ■ Tax increment can be collected for 25 years after the first year of collection - when this date does occur o Developer is considering options for development of the site NORTHLAND " I y SECURITIES o Economic Development district o $0 fund balance as of 12/31/15 o TIF district was decertified as of 12/31/15 and the Fund will be closed o There are no outstanding obligations NORTHLAND SECURITIES August 10, 2016, EDA Meeting 11 Monticello TIF Management Plan 2016 • Economic Development district • ($121,822) fund balance as of 12/31/15 o Only obligation is for the repayment of an interfund loan • Loan issued in the original amount of $152,460with balance of $121,822 as of 12/31/15 • Tax increment is projected to not be sufficient to repay the loan before decertification o Decertification date is 12/31/17 NORTHLAND " I y SECURITIES • Economic Development district • ($303,910) fund balance as of 12/31/15 • Only obligation is for the repayment of an interfund loan • Loan issued in the original amount of $413,994with balance of $303,966 as of 12/31/15 • Tax increment is projected to not be sufficient to repay the loan before decertification o Decertification date is 12/31/21 NORTHLAND SECURITIES August 10, 2016, EDA Meeting 12 Monticello TIF Management Plan 2016 • Pre -1990 District ■ TIF District 1 -6 ■ Plan for use of available funds • Post 1990 - Sound Plans ■ TIF is projected to be sufficient to meet all current obligations ■ TIF 1- 19,1- 20,1- 24,1- 29,1 -30, and 1 -36 ■ Continue to make payment on obligations o Post 1990 - Management Challenges ■ TIF is not projected to be sufficient to meet all current obligations ■ TIF 1- 22,1 -34,1- 35,1 -38, and 1 -39 ■ Actively manage annual tax increment and use of funds for obligations and the timing for writing off of existing obligations NORTHLAND " I y SECURITIES August 10, 2016, EDA Meeting 13 EDA Agenda: 08/10/16 9. Consideration of Resolution EDA 2016 -008 approving an Amendment to the Contract for Private Redevelopment between Masters Fifth Avenue and the Monticello EDA as related to Tax Increment Financing District 1 -35. (JT /AS) A. REFERENCE AND BACKGROUND: This item is consideration of an amendment to the Contract for Private Development between Masters Fifth Avenue and the Monticello EDA as it relates to TIF District 1 -35. At its' regular meeting on July 13, the EDA authorized preparation of the amendment for consideration at a future meeting. The genesis of the amendment goes back to the spring of 2016 when the developer, Masters Fifth Avenue, requested an expansion of possible uses from "11,000 square feet of retail center" to "11,000 square feet or more of commercial, residential or multi -use building " in order to meet an evolving development and financing environment. It should be noted that the proposed amendment of the Contract is a policy question for the EDA. The history of the request is as follows: The EDA approved an extension of the contract between the EDA and the developer in October of 2015 as related to TIF District 1 -35. At that time, the developer indicated there was the potential for an exclusively residential project on the TIF district parcel. EDA consideration of this item originally began at the April 13, 2016 meeting, where it then tabled action on the item - deferring any decision, to allow for consideration of the development stage PUD application by the City Council. The City Council acted on April 25, 2016 to approve the development stage PUD application for the proposed project. To further effect the PUD, the applicant will need approval of a final stage PUD and rezoning to PUD. The developer will therefore need to apply for final stage PUD for consideration and decision by the City Council as a next step. The EDA then considered the proposed Amendment at its May 11, 2016 meeting. Two motions were put forward with both of them resulting in a tie vote of the members; three (3) for and three (3) against. The respective motions were first to deny approval of the requested amendment and then to approve the item as presented. Both failed for lack of majority. At the July meeting the EDA motioned for approval of staff to prepare the amendment for review by the EDA. At the present time, the EDA Attorney is indicating that while the EDA may wish to consider the amendment to the Contract for Private Redevelopment between Masters Fifth Avenue and the Monticello EDA, it is recommended to refrain from considering any modification of the Tax Increment Financing Plan for TIF District 1 -35. Instead, at the time when the developer has a firm plan for the development, the TIF Plan would be amended if required. It should be noted that the developer is not requesting additional tax increment at this time. TIF District 1 -35 was certified in 2006, and was created to fund $170,000 in costs 1 EDA Agenda: 08/10/16 associated with the development of a proposed 11,000 square foot retail commercial project known as "Landmark Square II". The project area is a single parcel located at the northeast corner of Yd and Locust Streets. The tax increment generated in the district was intended to reimburse the developer for land acquisition through "pay -as- you -go" TIF assistance. If the EDA is willing to approve the amendment to the Contract, the result is that the developer would then gain flexibility in moving forward with the plan reviewed by the Council on 4 -25 -16 and /or or other future plans that may be submitted for review. It should be noted that if the plans prepared represent substantive alterations form those approved in April 2016, a new development stage PUD land use application will be required. In addition, given the EDA S decision at the last meeting, it may be that the EDA wishes to defer approval of the amendment to the contract for redevelopment until such time as the developer presents development plans for the district. Staff does recommend that the developer be required to submit all future plans to the EDA for - consideration and recommendation in any case. This requirements is already be stipulated in language in Article IV of the Contract, but often in practice, the plans are typically submitted as part of the building permitting process. Al. Budget Impact: Per the contract with the developer, the developer will be required to cover all costs associated with the amendment. A2. Staff Workload Impact: An estimated 8 to 10hours of staff and consulting time has been spent to date in reviewing, responding to the requested amendment and and preparing reports and documents. B. ALTERNATIVE ACTIONS: 1. Motion to approve the amendment to the Contract for Private Development between Masters Fifth Avenue and the Monticello EDA as it relates to TIF District 1 -35 wherein language includes an "11,000 square foot commercial, residential or multi- use center ". 2. Motion to deny approval of the proposed amendment to the Contract for Private Development between Masters Fifth Avenue and the Monticello EDA as it relates to TIF District 1 -35. 3. Motion to table action on approval of the amendment to the Contract for Private Redevelopment until such time as the developer provides plans for the development. 4. Motion to table this item for other additional information PJ EDA Agenda: 08/10/16 C. STAFF RECOMAHNDATION: 1. As noted, the amendment of the Contract is a policy question for the EDA. When the TIF district was created, it was intended to spur and support private commercial redevelopment. If the EDA supports the proposed amendment, Alternative 91 is recommended. If the EDA wishes to proceed under the original TIF Plan and Contract as previously amended, Alternative 92 is appropriate. D. SUPPORTING DATA: A. Resolution EDA 2016 -008 B. Developer Request, March 18th, 2016 C. TIF Plan 1 -35, excerpt D. TIF Management Plan, excerpt for TIF 1 -35 E. Proposed Fourth Amendment to Contract for Private Redevelopment EDA RESOLUTION NO. 2016- RESOLUTION APPROVING A FOURTH AMENDMENT OF A CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND MASTERS FIFTH AVENUE, INC. BE IT RESOLVED BY the Board of Commissioners ('Board ") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority currently administers Redevelopment Project No. 1 (the "Project"), pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act") within an area located in the City, and administers Tax Increment Financing District No. 1 -35 (the "TIF District") within the Project pursuant to Minnesota Statutes, Sections 469.174 to 469.1794. 1.02. The Authority and Masters Fifth Avenue, Inc. (the "Developer ") executed a certain Contract for Private Development, dated as of September 7, 2005, as amended by a First Amendment thereto dated as of June 7, 2006, by a Second Amendment thereto dated as of December 18, 2007, and by a Third Amendment thereto dated as of December 9, 2015 (as so amended, the "Agreement"), whereunder the Authority pledged Available Tan Increment (as defined in the Contract) to pay or reimburse certain land acquisition costs incurred by the Developer in connection with the development of an approximately 11,000 square foot retail center, with associated parking, known as Landmark Square II (the "Minimum Improvements ") on certain property in the TIF District. 1.03. The Developer has requested and the Authority has agreed to amend the definition of the Minimum Improvements to allow for greater flexibility in the future development, and to that end, the parties propose to execute a Fourth Amendment to the Agreement (the "Fourth Amendment") in the form presented to the Authority. Section 2. Fourth Amendment Approved. 2.01. The Fourth Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. The President and Executive Director are hereby authorized to execute, on behalf of the Authority, the Fourth Amendment. 484212v1 MNIMN190 -115 Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 10th day of August, 2016. President ATTEST: Executive Director 484212v1 MNIMN190 -115 Master's Fifth Avenue, Inc. 19577 180th Ave NW Big Lake, MN 55309 703 -390 -0393 March 18, 2016 TO: Monticello Economic Development Authority 505 Walnut Street Monticello, MN 55362 March 18, 2016 Attention: Angela Schumann We request consideration at your meeting of April 13th to consider an administrative change to the TIF District 1 -35 by amending the contract and TIF plan with Master's Fifth Avenue, Inc. to add the words "11,000 square foot or more commercial, residential or multi -use building" in place of the words "11,000 square foot retail center" in both documents. Thank you for your attention to this matter. Master's Fifth Avenue, Inc. Barry D. Fluth, president Ehlers & Associates, Inc. Tax Increment Financing District Overview City of Monticello Tax Increment Financing District No, 1 -35 The following summary contains an overview of the basic elements of the Tax increment Financing Plan for TIF District No. 1 -35. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of Tax Increment Financing District No. 1 -35 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Adoption of a Redevelopment Plan Modification for the Central Monticello Redevelopment Project No. 1_ (The Modification is to include the project activities anticipated in the District.) Type of TIF District: A redevelopment district Parcel Numbers *: 155-010-036011** 155- 010 -036010 ** 155 -010- 036030 ** *These parcels will be combined via an administrative lot combination by the City of Monticello * *.These parcels are "Knocked Down" parcels that are being removed from Tax Increment Financing District No. 1 -22 to be included in Tax Increment Financing District No. 1 -35. Proposed Development: The District is being created to facilitate construction of 11,000 s.f. of commercial space consisting of a restaurant, office and other uses m the City of ' Monticello. This project is being proposed by a local developer. The value of the new development is estimated to be $70 per s.£ plus land costs of approximately $230,000 for an esimated value of $1,000,000. The building will be completed in 2006 and the assistance of land acquisition, public improvements, site preparation, streets and sidewalks and utility costs will be funded on a pay-as-you- go basis at a rate of 6.5% TIF District Overview Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The date of receipt of the first tax increment will be approximately 2008. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2033, or when the TIF Plan is satisfied. Estimated annual tax Up to $17,014 increment: Proposed uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ............................................... $100,000 .................... Site Improvements /Preparation .......................................... $35,000 Public Utilities .................................... ............................... $35,000 Parking Facilities ................................ ............................... $35,000 Streets and Sidewalks ......................... ............................... $10,000 Interest.............................................. ............................... $190,000 Administrative Costs (up to 10 %) .............. ........................ $45,000 TOTAL PROJECT COSTS .............. ............................@QQ See Subsection 2 -10, page 2 -6 of the TIF Plan for the full budget authorization. Additional uses of funds are authorized which include inter -fund loans and transfers and bonded indebtedness. Form of financing: Financing will be primarily by a pay -as- you -go (PAYG) note. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund must be passed MOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (§ 469.176 Subd 6) following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation Other site preparation (not including utility services such as sewer and water) • If the activity has not been started by the approximately September, 2009, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. Page 2 TIF District Overview 5 Year Rule Within 5 years of certification revenues derived from tax increments (f 469.1763 Sub 3) must be expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: • The revenues are actually paid to a third party with respect to the activity • Bonds, the proceeds of which must be used to finan ce the activity, are issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of (i) the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund • Binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation • Costs with respect to the activity are paid and the revenues are spent to reimburse for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately September, 2010, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd_ 3, are included in Exhibit A of the City Council Adopting Resolution. Page 3 T[F DWct Overview MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND TAX INCREMENT FINANCING DISTRICT NO. I -35 Page 4 Proposed Tax lncren...c Financing District Ni Central Monticello Redevelopment Project? City of Monticello Wright County, Minnesota Proposer! Tax Increment Financing District No. 1 -35 District 1 -35 is a redevelopment TIF district. The Dis- trict was established to assist with the construction of 11,000 square foot commercial building. The District was created from parcels removed from District 1 -22. This approach established new time limits that con- strain use of increments in District 1 -22. The tax incre- ment from District 1 -35 is obligated to repay a $170,000 developer note at an interest rate of 6 %. The note will end at a date no later than 2/1/2023. Ninety percent (90 %) of annual tax increment is used to make pay- ment on the note. The District will be decertified no later than December 31, 2033. The development planned for District 1 -35 has not happened. Actions Taken Since 2009 Funds have been transferred into TIF District 1 -35 from TIF District 1 -22 to cover administrative expenses incurred for TIF 1 -35. Administrative Steps There are no outstanding administrative items. Management Strategy The strategy for District 1 -35 focuses on using the ex- isting district to undertake redevelopment on this par- cel. The factors that allow the creation of a new re- development district have been removed. A new TIF district is not an option. Clearance of the site satisfied the criteria of the 4 -year knock down requirements. Management of this District benefits from 2009 amend- ments to the TIF Act. The limitations of the five -year rule are extended to ten years for the District. Obli- gations for the use of tax increments must now be in Redevelopment District Summary r' .p ter ffi Year r - 2008 :�! I!!f�! rrrlj Knockdown !f!r rriri j�rr ,f'rr x rfl Decertification Original Tax Rate r ZI fl !!E °err Tai �;�r ti 6,068 .: ,ffir rlfri . �! ruff lrrri ff!! !'f!! rrrli place by August 1, 2016. The financial implications and options for this District cannot be fully analyzed until development occurs. 43 FOURTH AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT This agreement is made as of August 2016, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body politic and corporate (the "EDA ") and MASTERS FIFTH AVENUE, INC., a Minnesota corporation (the "Developer "). WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello ( "HRA ") and Developer entered into that certain Contract for Private Development dated September 7, 2005, as amended by an Amendment thereto dated as of June 7, 2006, a Second Amendment thereto dated as of December 18, 2007, and a Third Amendment thereto dated as of December 9, 2015 (as so amended, the "Contract ") providing, among other things, for the construction of an approximately 11,000 square foot retail center, with associated parking, known as Landmark Square II (the "Minimum Improvements ") on the property legally described within the Contract (the "Development Property") within the City of Monticello (the "City "); and WHEREAS, the City Council of the City has taken the necessary steps to allocate all powers and projects of the HRA to the EDA, and the HRA, by its Resolution dated November 7, 2007, has transferred and assigned to the EDA all outstanding contracts to which the HRA is a party, including the Contract; and WHEREAS, the Developer has requested and the EDA has determined to modify the definition of the Minimum Improvements described in the Contract. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. The definition of "Minimum Improvements" in Section 1.1 of the Contract is amended as follows: "Minimum Improvements" means the construction on the Development Property of an approximately 11,000 square foot commercial, residential, or multi -use building, with associated parking, known as Landmark Square II, and associated parking on an adjacent parcel ( "Adjacent Property")- 2. Miscellaneous. Except as amended by this Amendment, the Contract shall remain in full force and effect. Upon execution, the Developer shall reimburse the EDA for all out -of pocket - costs incurred by the EDA in connection with negotiating, drafting and approval of this Amendment. (The remainder of this page is intentionally left blank.) 483559A NININMI90 -115 IN WITNESS WHEREOF, the EDA has caused this Amendment to be duly executed in its name and behalf and its seal to be hereunto duly affixed and Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. Masters Fifth Avenue, Inc. City of Monticello Economic Development Authority By: Its 483559A NININMI90 -115 By: Its President By: Its Executive Director EDA Agenda — 08/10/16 10. Consideration of adopting Resolution EDA — 2016 -010 approving the 2017 EDA Budget and HRA Lew (JT) A. REFERENCE AND BACKGROUND: This item is in consideration of the proposed 2017 EDA budget and the accompanying HRA property tax levy. The proposed budget contains funding to carry out key work items consisting of paying for full -time staff, completing a small area study in the downtown core, additional marketing assistance on a scaled down basis and redevelopment expenditures in the amount of $106,000. The major change from the 2016 budget is the Miscellaneous Professional Services line item, which includes $50,000 for a small area study. The Economic Development Services (lead generation, regional networking, financial assistance packaging through WSB & Associates) line item has also decreased by $3,600 (down an additional $600 from that initially proposed in July [$3,000 then; now $3,600]). In comparison with 2016, the amount budgeted for the Economic Development Services via the Market Matching contract covering the period of January I through June 1(five months) is $12,000 versus the proposed $8,400 for the full 12 months in 2017. The Economic Development Assistance Services scope of work is being presented for consideration by the EDA as a separate item. The EDA revenue is provided through an HRA property tax levy and annual lease payments for farmland and - interest earnings bringing the total to $320,000. The HRA levy is proposed at $302,000 based on the statutorily allowed percentage of .0815 percent multiplied against the City's taxable market value of $1,631,446,700. Note that consistent with the EDA Enabling Resolution, the EDA budget requires review and acceptance by the City Council. Al. STAFF IMPACT: The staff impact due to presenting the 2017 budget to the EDA for review and feedback is estimated to be approximately 5 hours (includes time during the EDA meetings). A2. BUDGET IMPACT: The cost of presenting the 2017 budget to the EDA for review and feedback is minimal. It is part of the normal work duties of the EDA Executive Director and is a required approval step. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution EDA-2016-010 approving the 2017 EDA budget and the HRA property tax levy. 2. Motion to table action on the item for further research or information. (Note this would require a special meeting to occur in late August or early September) C. STAFF RECOMMWNDATION: Staff recommends Alternative #1 wherein the EDA adopts Resolution -EDA- 2016 -010 approving the 2017 EDA Budget and the 2017 HRA property tax levy. D. SUPPORTING DATA: A. Resolution 2016 -010 B. Proposed 2017 EDA Budget with HRA Tax ad valorem property tax levy included CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-009 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2017 WHEREAS, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended, the City Council of the City of Monticello, Minnesota (the "City ") previously created the City of Monticello Economic Development Authority (the "Authority "); and WHEREAS, the Authority is authorized to exercise all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "); and WHEREAS, Section 469.033, subd. 6, of the HRA Act permits the Authority to levy and collect a special benefit tax of up to .0185 percent of taxable market value in the City, levied upon all taxable real property within the City, to finance the Authority's economic development and redevelopment activities; and WHEREAS, the special benefit tax levy authorized by Section 469.033, subd. 6 of the HRA Act is separate and distinct from the City's levy and is not subject to levy limits; and WHEREAS, the Authority desires to levy a special benefit tax in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the Authority has determined to adopt a budget for fiscal year 2017 that provides for the levy of the special benefit tax in the amount of .0185 percent of taxable market value of property in the City, to be used for the Authority's economic development and redevelopment activities. NOW, THEREFORE, Be It Resolved by the Board of Commissioners (`Board ") of the Monticello Economic Development Authority as follows: 1. The Board hereby approves a budget of $320,000 (excluding TIF district and loan activity) for fiscal year 2017, including the levy of a special benefit tan in an amount not to exceed $302,000, subject to approval of such budget by the City Council prior to September 15, 2016. 2. Staff of the Authority is hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6 and request that the City Council consider approval of the special benefits tax levy. 484254v1 NlNINlN190 -101 3. There is hereby levied a special benefit tax pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in an amount not to exceed $302,000 with respect to taxes payable in calendar year 2017, contingent upon the approval of the City Council. 4. Staff of the Authority is hereby authorized and directed to take such other actions as are necessary to levy and certify such levy upon approval by the City Council. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 10th day of August, 2016. President Attest: Executive Director 484254v1 NlNINlN190 -101 2 Proposed 2017 EDA Budget - Expenditures EDA FUND 20i2___7_ 012 2013 2014 ACTUAL 2015 ACTUAL 2016 BUDGET 2016 PROJECTED 2017 BUDGET CHANGE EDA General EDAIHRA ACTUAL ACTUAL 213116301- 410100 SALARIES, FULL TIME -REG 9,883 $ 2,209 $ 4,255 _66 314 298 999 36 - - 5,379 17,724 48,000 30,874 1,400 24 76 1,144 77 - 8,026 1,512 - - 3,041 - 2,901 71,000 7,173 $ 363 - - 565 545 1,899 65 - 9,130 48,000 49,150 1,416 10 - 5,650 5,360 - 1,937 1,356 - - 4,696 - 11,072 732,900 66,560 - - 4,992 5,092 17,916 309 1,000 10,000 12,000 10,000 1,409 - 500 1,000 5,000 500 758 1,300 9,000 155,000 2,664 $ 66,560 - - 4,992 5,092 17,916 309 1,000 10,000 12,000 10,000 1,409 500 1,000 5,000 500 - 758 1,300 - 91000 155,000 2,664 - E 75,454 5,659 5,772 18,658 351 1,000 10,000 8,400 55,000 1,314 500 1,000 5,000 500 1,490 1,300 - 9,000 113,600 6,002 13.36% 13.36% 13.35% _ 4.14% - 13.59% - -- 0.00 0.00% -30.00 450.00 0.00 0.00% 0.00% 0.00% - - Z65 - - 0.00 - 26.71% 125.30% -- -- 213 - 463_01- 410200 _ 213- 46301- 410400 SALARIES, FULL TIME - OT SALARIES, TEMPORARY - REG 213- 46301- 410900 SALARIES, OTHER 213- 46301- 411100 SEVERANCE PAY 213-46301-412100 PERA CONTRIBUTIONS 716 160 213 - 46301 - 412200 FICA CONTRIBUTIONS 728 153 213-46301-413100 HEALTH /DENTAULIFE INSURAN 2,579 594 213 - 46301- 413500 FLEX BENEFITS - 213- 46301- 415100 Worker Compensation - 1,170 21346301421990 GENL OPERATING SUPPLIES 213 - 46301 - 422990 MISC REPAIR & MTC SUPPLIES 213 - 46301- 424100 SMALL TOOLS & EQUIPMENT 213- 46301 - 430260 PROF SRV - CONSTRUCTION CO - 213- 46301- 430300 PROF SRV - ENGINEERING FEE 4,461 213 - 46301- 430400 PROF SRV - LEGAL FEES 10,487 6,306 213 - 46301 - 430910 PROF SRV - Market Matching 24,000 213-46301431990 MISC PROFESSIONAL SERVICES IT Services 32,936 997 213-46301- 432150 691 213 - 46301- 432400 DELIVERY MAIL SERVICE (UPS 1091 46 213- 46301 - 433100 TRAVEL EXPENSE 290 3 Z13-46301-433100 CONFERENCE & SCHOOLS 148 95 21346301434600 MARKETING 13,047 723 213 - 46301- 435100 LEGAL NOTICE PUBLICATION 274 260 213 - 46301- 435100 GENERAL PUBLIC INFORMATION 399 21346301436100 Insurance - Uabilft /Propert Nehicle_ - _ 2,073 21346301- 437100 PROPERTYTAXES 1,628 213 46301438200 WATER & SEWER 213146301438100 GAS 21346301- 443300 DUES, MEMBERSHIP & SUBSCRI 4,309 2,366 213 46301461500 REDEVELOPMENT ACTIVITIES 260 213146301443990 MISC OTHER EXPENSE 658 2,323 213 - 46301451010 LAND (or value adjusted) - 55,800 213-46301-453010 IMPROVEMENTS 213 - 46301458010 Other Equipment 213- 46301- 460300 Interfund Loan - Principal 213- 46301- 461300 Interfund Loan - Interest 21346301461500 SA INT PYBL -LAND FOR RESAL 21346301472030 TRANSFER TO GENERAL FUND 213. 46301- 472030 TRANSFER TO DEBT SERVICE F 213- 46301- 472030 TRANSFER OUT - TRUNK FEES TOTAL EXPENDITURES 82,454 $ 100,427 $ 197,146 $ 881,287 $ 305,000 305,000 $ 320,000 4.92% Proposed 2017 EDA Budget - Revenues 2012 2013 DUNT NUMBER REVENUE Consolidated SPECIAL REVENUE F DUNT NUMBER REVENUES )0000- 310110 CURRENT AD VALOR )0000 - 310210 DELINQUENT AD VAL )0000- 310310 MOBILE HOME TAX 2012 2013 2014 2015 2016 1 2016 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET D 2012 2013 2014 2015 2016 2016 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJEC 21346519- 310500 $ $ $ $ 280,000 $ 287 21,222 22,940 213- 46520- 310500 TIF #20 - PRAIRIE WEST 17,938 15,408 1 nnn 1 Mn 1 qrn 1 JSn 1 95n 1 1 213- 46502- 310500 TIF #2 - METCALF & LARSON - - 213 -00000- 362110 - 85,126 CHANGE 213- 46505- 310500 TIF #5 - CONSTRUCTION 5 52,498 43 12 213 - 46621- 362150 INT EARNINGS - TAPPERS #021 - INT EARNINGS - UMC #022 213- 46506- 310500 TIF #6 - RAINDANCE (decertified) 83,229 76,895 (23,748) - 213- 46624 - 362150 INT EARNINGS - TAPPER'S #024 21346519- 310500 TIF #19 - MISSISSIPPI SHORES 32,686 32,686 33,425 21,222 21,222 22,940 213- 46520- 310500 TIF #20 - PRAIRIE WEST 17,938 15,408 16,072 17,173 17,173 22,576 213- 46522- 310500 TIF #22 - CCD /DOWNTOWN 376,242 340,652 344,851 289,299 288,000 274,980 213 - 46522- 347110 Rental of City Property 32,748 25,404 10,387 $ 1,198,160 - - 213- 46523 - 310500 TIF #23 - MIDWEST GRAPHICS - - -15.5% 213- 46524 - 310500 TIF #24 - ST BEN'S CENTER 47,732 46,539 47,732 39,494 39,494 41,632 21346526- 310500 ITIF #26 - TWIN CITY DIE CAST - - - 100.0% 213- 46527 - 310500 TIF #27 - JJ CO /PROFILE PW 46,238 -13.5% 19,012 -7.40/6 213- 46528- 310500 TIF #28 -IRTI - 213- 46529- 310500 TIF #29 - FRONT_ PORCH 23,737 17,966 21,217_ 8,247 20,480 8,801 _ 21,076 22,589 213 - 46530- 310500 TIF #30 - CMHP 7,689 6,750 8,801 9,120 213 - 46531- 310500 TIF #31 - U.M.C. - - - - - 213- 46533- 310500 TIF #33 - TAPPERS HOLDINGS - - 213- 46534- 310500 TIF #34 -194 INTERCHANGE 272,296 271,906 219,996 214,364 215,000 202,856 213- 46536 - 310500 TIF #36 - DAHLHEIMER DIST 67,161 66,593 66,593 58,241 - 213- 46537- 310500 IF #37 - KARLSBURGER FOOD 24,550 24,469 24,469 1 - - - 213- 46538- 310500 TIF #38 - WALKER IN -STORE 12,604 12,600 12,604 11,757 11,757 11,421 213 - 46539- 310500 TIF #39 - Suburban 53,471 54,905 46,786 53,471 45,450 213 - 46581- 310500 TIF 22.5 - CCD /AM000 - - 213- 00000- 319100 PENALTIES & INT - TAX - 213- 00000 - 334020 Intergovernmental 11,875 213- 46500 - 341090 INITIATIONIAPPLICATION FEE - 113 -UUUUU -36111 U 213 -00000- 362110 IN I trots 1 tAKNINUb - uen tU INTEREST EARNINGS - CMEF 44'a 1 1 25,513 tDJ,J3V J 213 -00000- 362110 INTEREST EARNINGS -TIF 85,126 CHANGE 213 - 00000- 362400 213 -00000- 362990 SALE OF PROPERTY OTHER MISCELLANEOUS REV 75,772 31,010 149 43 12 213 - 46621- 362150 INT EARNINGS - TAPPERS #021 213 - 46622 - 362150 INT EARNINGS - UMC #022 500 - 213- 46623- 362150 INT EARNINGS - WSI IND #023 - - 213- 46624 - 362150 INT EARNINGS - TAPPER'S #024 5,205 3,851 213- 46625- 362150 INT EARNINGS - KARLSBURGE 2,415 - 213- 46626- 362150 INT EARNINGS - HOGLUND #02E 3,811 2,629 213-46627- 362150 INT EARNINGS - PET HOSPITAL 1,093 758 213 - 46500 - 362200 TIF Intrafund LOAN REPAYMENT 10,054 117,742 213 - 46500- 362220 TIF Intrafund LOAN REPAYMENT 8,398 42,116 213 -00000 - 392000 TRANSFERS FROM OTHER FDS 92,000 TOTAL REVENUES $ 1,345,267 $ 1,198,160 rao I If, 19u 3 624 % BUDGET CHANGE 2017 % BUDGET CHANGE 302,000 7.9% 1,100 - 12.00% 2 500 - 0 - - 2 114,918 53,444 53,444 5 28,921 20,522 20,522 0 94,900 - - r'T 1,032,137 $ 1,096,710 $ 1,073,780 2017 % BUDGET CHANGE 2017 % BUDGET CHANGE 302,000 7.9% 1,100 - 12.00% 22,940 8.1% 22,576 31.5% 274,980 -4.5% 41,632 5.4% 22,589 7.2% 9,120 - -3.6% 202,856 -5.60/. 11,421 -2.9% 45,450 -15.0% 16,900 -15.5% 15,000 1 -31.8% 19,000 - 17.4% - 100.0% 46,238 -13.5% 19,012 -7.40/6 1,072,814 -2.2% EDA Agenda: 8/10/16 11. Consideration of Economic Development Assistance Scope of Work Proposal for a possible Contract with WSB & Associates for lead generation and financial assistance packaging (JT) A. REFERENCE AND BACKGROUND: This item is in consideration of an Economic Development Assistance Scope of Work Proposal with WSB & Associates. City staff proposes to enter into a 15 month (10 -1 -16 to 12- 31 -17) contract for Economic Development Assistance with WSB & Associates. In the past two years, the EDA has contracted with WSB for a Market Matching service at the rate of $4,000 per month. The current Scope of Work proposal is a greatly slimmed down variation of the previous work. While the previous contract was wide ranging in duties and event attendance, the primary focus of the new assistance format falls under the general effort of lead generation and financial assistance packaging. Al. Staff Impact: The City's Economic Development Manager has spent about 4 or 5 hours on the Scope of Work discussion with supervisors and with Jim Gromberg, WSB's lead economic development consultant, on the general concept and Scope of Work proposal. A2. Budget Impact: The total amount budgeted for Economic Development Assistance Services is $8,400 (not to exceed) in 2017 ($700 per month). The three months of service (Oct., Nov., Dec.) in 2016 ($2,100) would be funded out of the 2016 Miscellaneous Professional Services budget. B. ALTERNATIVE ACTIONS: Motion to accept the proposed Economic Development Assistance Services Scope of Work and further direct preparation of a 15 -month Contract for Economic Development Assistance Services between WSB & Associates and the Monticello EDA. 2. Motion to deny acceptance of the proposed Economic Development Services Scope of Work between WSB & Associates and the Monticello EDA. 3. Motion to table acceptance of the proposed Economic Development Assistance Services Scope of Work between WSB & Associates and the Monticello EDA for further research and /or discussion. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative 41 wherein the EDA accepts the proposed Economic Development Assistance Services Scope of Work and further directs preparation of a Contract for consideration by the EDA at a future meeting. Entering into a Contract for the proposed Scope of Work will provide more tools and a wider reach to the Monticello EDA and also allow the Economic Development Manager to be more effective with time and resources in the effort of, marketing, regional networking and identifying qualified leads and in generating financial packages for a variety of economic development projects. D. SUPPORTING DATA: A. Proposed WSB & Associates Economic Development Services Scope of Work 2 ��//A WSB & AsEficiates, Me- engineering • planning • environmental • construction August 4, 2016 Jim Thares Economic Development Manager City of Monticello 505 Walnut Avenue, Suite 1 Monticello, MN 56069 Re: Economic Development Services for the City of Monticello Dear Mr. Thares: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel 763 - 541 -4800 Fax 763 - 541 -1700 Thank you for providing WSB & Associates the opportunity to submit this proposal to provide Economic Development Services for the City of Monticello. Provided below is a summary of the proposed Scope of Services for ongoing Economic Development support. PROPOSED SCOPE OF SERVICES Task 1: Market Engagement 2.1 Active networking with potential market entrants (on- going). It is anticipated that it would average of 4 meetings each month would be attended. • Central Minnesota Industrial Partnership — WSB acts as representative. • Minnesota Medical Manufacturers Partnership - WSB retains membership and WSB acts as representative. • Central MN Manufacturer's Association — WSB acts as representative • CoreNet Global — WSB acts as representative • DEED — Membership and representation by both City and WSB. • EDAM — Membership and representation by both City and WSB. • Greater St. Cloud Development Corporation - Membership and representation by WSB. • Greater MSP — WSB retains membership and acts as representative • Minnesota Chamber of Commerce — WSB retains membership and acts as representative. • Minnesota High Tech Association — WSB acts as representative • NAIOP — WSB acts as representative • Urban Land Use Institute WSB acts as representative • Other Organizations on an as needed basis. • Conference and Association Trade Shows — TBD Equal Opportunity Employer wsbeng.com Jim Thares August 4, 2016 Page 2 - 2.2. Economic Development Opportunities - WSB will identify and assist in identifying potential economic development opportunities: including the following: • Land acquisition. • Financial ilncentive opportunities. • Preliminary proposal development. • Preliminary sketch plan design (non - certified drawings). • Assist in closing. • Act as a conduit for information and resource for prospect and City staff. • WSB will assist in providing detailed development related information to all qualified leads. • Assistance with financial package preparation in consultation with City staff, policy makers, and financial consultant. • Attendance at pre- design meetings associated with leads. Task 3: Communication 3.1 WSB will provide consistent and effective communication with City Staff, EDA, and City Council on a regular - scheduled basis. • Provide timely e-mail updates to City Staff • Provide Written Monthly Memo updating City Staff of Market Matching Economic Development efforts and outcomes. FEE FOR SERVICES As outlined in the above Scope of Services, the City has the option to retain WSB & Associates for 12 months at the fee of $700 per month, starting July 1, 2016. Travel expenses incurred by WSB within Minnesota as part of the Scope Services offering are included in the monthly fee. Travel expenses incurred by WSB for travel outside of Minnesota that are directed by the City of Monticello shall be paid for according to a negotiated price. Additionally, fees for services outside of the above described scope may be required from time to time shall be completed at an additional hourly rate. If you are in agreement with the proposed project Scope of Services and Fee, please sign below and return one copy to our office. If you have any questions or comments regarding the above information, please contact me at (763) 762 -2846. Sincerely, WSB & Associates Jim Gromberg Economic Development Coordinator Approval Signature By: Title: Date: EDA Agenda — 08/10/16 12. Consideration to approve funding for 2016 Industry of Year /MN Manufacturer's Week activities. (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to consider funding the expense activities associated with the Industry of the Year event. The Industry of the Year event is a business retention effort coordinated in partnership between the Industrial and Economic Development Committee (IEDC) and the EDA. The event is an opportunity to focus on contributions of the Monticello manufacturing and industrial community. It is held each year in conjunction with MN Manufacturer's Week, this year October 2nd -8d'. The breakfast event will occur this year on Wednesday, October 5d' at the MCC. Attendance is typically 50 -100 persons. The event includes breakfast and a featured speaker, relevant to economics and industry. The main focus of the event is an award presentation to the Industry of the Year, as voted by the full IEDC membership. The 2015 Industry of the Year recipient was Bondhus Corporation. In the past, the EDA has funded the Industry of the Year activities, with the IEDC completing the planning for the event itself. Costs for the 2016 event will include the cost for the complimentary breakfast and table preparation, estimated at $1000. Invitations and promotions for the event are completed in house with no cost to the EDA. In the past, the EDA and IEDC have also been able to arrange for speakers for the breakfast without cost. However, the IEDC began offering $250 event sponsorships to help defray both the costs of the event and also a potential speaker fee. Should the EDA choose to fund the event for 2016, the EDA will receive updates on the event based on IEDC planning efforts. Staff will also be working with an IEDC sub- committee on additional activities and promotion of this year's MN Manufacturing Week. Al. Budget Impact: The estimated expenses for the event are $1000. The EDA has sufficient funds in its Marketing line item to cover the estimated costs. A2. Staff Workload Impact: Staff coordination is estimated at 8 -12 hours. B. ALTERNATIVE ACTIONS: Motion to approve funding for the 2016 Industry of the Year event. 2. Motion to deny funding of the 2016 Industry of the Year event at this time. C. STAFF RECOMMENDATION: City staff recommends Alternative 91. This event is Monticello's opportunity to thank its existing businesses and support business retention and expansion. D. SUPPORTING DATA: 2016 Nomination Criteria and Form CITY OF Monticello 2016 Industry of the Year Nomination Form (Feel free to nominate more than one qualified industry — please use one form for each nomination) NOMINATIONS DUE SEPTEMBER Vt. 2016 Selection Criteria • Must be classified as Industry. Industry shall be defined as: a business that performs a majority of their commercial activity with other businesses and a minority of their commercial activity directly with the public consumer. • The Business has been established for at least (5) five years. • The Business has not received this award in the past five (5) years. • Business Excellence: Successful business practices, i.e., marketing and promotion of business ethics; promotion of employee growth and development; contribution to its industry; and research and development • Staff training, motivation, and employee engagement: Philosophy of engaging and empowering employees. Empowered employees are proactive and persistent, and make decisions that are consistent with the company's strategic goals and objectives. Organizations benefit greatly from having an engaged workforce. Research shows strong connections between employee engagement and turnover, productivity, customer service, loyalty and corporate financial performance. • Innovation: Creativity, entrepreneurial, and implementing innovation in business operations, products and services. Strides to continually distinguish itself from other businesses in their industry. • Community Involvement: A demonstrated interest in the welfare of the community through financial contribution, service, and civic leaderships. Actively supports the community through participating in volunteer programs and /or events • Customer Relations: A high level of customer confidence and excellence in customer services and relations. • Economic Growth: Continual increase in tax base and creation of liveable wage jobs. I would like to nominate the following industry /manufacturer: This industry /manufacturer is deserving because (please reference the criteria noted above in the nomination description): EDA Agenda — 08/10/16 13. Consideration of Amending Restrictive Covenants related to Outdoor Storage in Otter Creek Business Park (JT) A. REFERENCE AND BACKGROUND: The EDA requested City staff seek feedback from the present occupants of Otter Creek Business Park regarding possibly allowing outdoor storage. They also directed staff to create an illustration of a possible storage area as an accessory use on a lot in the Park drawn to scale. The results of the discussions with the present occupants in Otter Creek Park will be reviewed at the EDA meeting. At the June meeting, the EDA directed staff to discuss the first draft of possible standards allowing outdoor storage with the prospective business desiring to locate in Otter Creek Business Park. In a recent meeting with the business owners at Otter Creek Business Park to view potential sites, they indicated that they would they would try to work within the proposed standards and make it work as best as possible for their needs. They plan to build a 30,000 to 40,000 sq. ft. facility which would mean outdoor storage of 9,000 to 12,000 sq. ft. The key issue in the discussion is the size or volume of land area devoted to outdoor storage relative to the principal building or the entire lot area. The draft standards indicate allowed storage of 30 percent of the principal building. It does not include a capped amount of area although this may be a beneficial addition. The overall end goal should still be to achieve development in the business park that helps it retain its high quality elements and visual attractiveness. Al. STAFF IMPACT: There is minimal staff impact in considering amending the covenants and researching possible outdoor storage standards. Staff has a relatively small amount of time committed to this research to date including time spent communicating with and soliciting comments from the prospective business and the current occupants in Otter Creek Business Park. There may be additional time committed to this effort based on the EDA's discussion and direction. The consultant planner assisted by providing the sample ordinance from another City in the region. A2. BUDGET IMPACT: There is a low budgetary impact due to the EDA's discussion of outdoor storage standards. There has been a very small cost to involve the consultant planner in the discussion. This expense will be paid from the EDA general fund. B. ALTERNATIVE ACTIONS: 1. No Action — Consider staff report as informational only and a continuation of "Next Steps" tasks, or 2. Motion to authorize staff to continue working on "Next Steps" tasks including sending formal letters describing exploratory process to occupants of Otter Creek Business Park and also "noticing" a comment period at next EDA meeting, soliciting feedback from the IEDC as well as the City Council at its August 22, 2016 meeting. 3. Motion to deny authorizing staff to work on "Next Steps" tasks. 4. "Motion to table the item for more research and /or information" C. STAFF RECOMMENDATION: Staff recommends Alt. 1 or Alt. 2. In either case, this would mean staff continues working on "Next Steps" tasks and with more information made available to the EDA at the September meeting. Staff also recommends defining a capped amount of allowed outdoor storage and provisions for landscape screening standards. D. SUPPORTING DATA: A. Outdoor Storage Discussion — Possible Standards B. Sample Outdoor Storage Ordinance (e- mailed from Steve Grittman, NAC) C. Map of Otter Creek Business Park D. Illustration of scaled site showing area of outdoor storage on possible lots Otter Creek — Outlots E and F Outdoor Storage Discussion Open and Outdoor Storage as an accessory use under covenants, provided that: • Outdoor storage shall be limited to 30% of the gross square footage of the principal building. • The storage area shall not occupy any portion of the yard between the front building line and the adjoining public street, or the side building line and public street on a corner lot. • Outdoor storage areas must be 10' from all property lines and when adjacent to properties zoned other than industrial, shall be located a minimum of 50' feet from the adjacent property line. • The storage area shall not occupy any space required for conformity to the parking regulations of the Zoning Ordinance. • Outdoor storage areas must be kept in an orderly condition, permitting vehicular access to all materials or equipment. Lanes at least twenty (20) feet in width shall be required to meet this standard. No portion of the outdoor storage shall be more than fifty (50) feet from any access lane or other drive aisle, nor shall it block access to hydrants, fire sprinklers, or other fire - fighting equipment. • All outdoor storage must be screened completely from any right of way and adjacent property. Screening shall consist of masonry walls or fencing constructed of wood or vinyl and shall provide for 100% opacity. Gates shall be an exception to this requirement. Additional landscaping of one evergreen tree per 6' of linear fenceline required to be planted on exterior of outdoor storage area. Fences shall meet the height requirements of this ordinance. Metal fencing may be used where landscaping provides a complete year -round screen and is irrigated to ensure survivability in compliance. • Outdoor storage shall be allowed only on improved surface of asphalt or concrete. • Storage in shipping containers shall be prohibited. • There shall be no storage of hazardous materials, as defined by the Minnesota Pollution Control Agency. • Waste or recyclable material shall be contained in a refuse container. All such containers shall be stored within a screened enclosure per the requirements of this ordinance. • The property, including buildings and exterior site areas, shall comply with all applicable fire codes. • All lighting and noise shall be in compliance with this Ordinance. NEXT STEPS Illustration example Discussion with property owners Vicki Leerhoff From: Stephen Grittman <sgrittman @nacplanning.com> Sent: Thursday, May 26, 2016 12:39 PM To: Angela Schumann Subject: RE: Outdoor Storage Language Thanks for the reminder — here are the two clauses, both for Conditional Use Permits, one for the lesser standard industrial district (1 -1), and one for the higher standard district (I -P). Let me know if you have any questions. -sg 1 -1, Light Industrial (lower standards): G. Open and Outdoor Storage as an accessory use, provided that: 1. The activity of outdoor storage shall require a separate business license issued by the City of Little Canada. 2. The storage area in question occupies an area no greater than sixty (60) percent of the gross square footage of the subject parcel. 3. The storage area shall not occupy any portion of the yard between the front building line and the adjoining public street, or the side building line and public street on a corner lot. 4. The storage is utilized solely by those tenants of the principal building in an amount proportionate to each tenant's occupancy of said principal building. 5. The outdoor storage of equipment or materials, as defined by this Ordinance, must be capable of moving under its own power, stored on a trailer, stored within weather -proof containers, or other storage arrangements as approved by the City Council. Storage of any material directly on the ground when the dimensions of such item are less than three (3) feet in width, length, and height, shall be prohibited wherever the City Council determines that reasonable alternatives exist consistent with this section. 6. When storage or shipping containers are utilized, the following regulations shall apply: a. Containers shall be those manufactured expressly for the purpose of storing and /or shipping materials. b. No container, for the purpose of this ordinance, shall be greater than forty (40) feet in length, eight (8) feet in width, or eight and one half (8.5) feet in height. c. No more than one (1) such container may be allowed for each seven thousand five hundred (7,500) square feet of lot area. d. Containers shall not be stacked or arranged to exceed the eight and onehalf (8.5) foot height. e. Containers shall be painted to match or be complementary in color to the principal building, and shall be maintained to avoid rusting or other visible deterioration of the container. f. There shall be no storage of hazardous materials, as defined by the zoning ordinance Section 902 of this Ordinance, within any such container. 7. Outdoor storage areas must be kept in an orderly condition, permitting vehicular access to all materials or equipment. Lanes at least twenty (20) feet in width shall be required to meet this standard. No portion of the outdoor storage shall be more than fifty (50) feet from any access lane or other drive aisle, nor shall it block access to hydrants, fire sprinklers, or other fire - fighting equipment. Except for construction equipment which is stored or parked in its most compact condition, outdoor storage may not exceed eight (8) feet in height as measured from the ground on which it is located. 8. The storage area shall be fenced and fully screened from adjoining non - industrial property, park and trail areas, and public right of way. Where properly fenced and screened, outdoor storage may encroach into the required side or rear yard setback area. Gates may be excluded from this screening requirement as provided for in Section 903.020.0.6. 9. Screening shall consist of masonry walls or fencing constructed of wood or vinyl, as well as landscaping. Metal fencing may be used where landscaping provides a complete year -round screen and is irrigated to ensure survivability in compliance with Section 903.020.F (Fences) of this Ordinance. 10. Waste or recyclable material shall be contained in a refuse container. All such containers shall be stored within a screened enclosure within the rear yard of the property. 11. The storage area shall be paved with asphalt, concrete, or other material approved by the City Council. 12. The storage area shall not occupy any space required for conformity to the parking regulations of the Zoning Ordinance. 13. The property, including buildings and exterior site areas, shall comply with all applicable fire codes. 14. All lighting shall be hooded and so directed that the light source shall not be visible from the public right -of -way or from neighboring residential uses, and shall be in compliance with Section 903.020.1 of the Zoning Ordinance. 15. All other provisions and requirements as deemed necessary by the City Council. I -P, Industrial Park District (higher standards): A. Open and outdoor storage as an accessory use, provided that: 1. Storage area, in combination with semi -truck or trailer parking as defined in Section 918.040.6 of this Ordinance does not exceed twenty -five (25) percent of the gross floor area of the principal structure or ten (10) percent of the lot area, whichever is less. 2. The area is fenced and screened from view of neighboring residential uses and districts in compliance with Section 903.020.G of this Ordinance. Depending on the height of the equipment and /or materials to be stored, additional screening may be required. 3. Storage is screened from view of the public right -of -way in compliance with Section 903.020.G of this Ordinance. Depending on the height of the equipment and /or materials to be stored, additional screening may be required. Gates may be excluded from this screening requirement as provided for in Section 903.020.0.6. 4. Storage area is black top or concrete. 5. All lighting shall be hooded and so directed that the light source shall not be visible from the public right -of -way or from neighboring residences and shall be in compliance with Sections 902.020.1 of this Ordinance. 6. Area does not take up parking space as required for conformity to this Ordinance. 7. The provisions of Section 921.010.0 of this Ordinance are considered and satisfactorily met. 2 8. No outdoor storage area shall include storage of materials that are considered hazardous materials by the Minnesota Pollution Control Agency. 9. No outdoor storage shall be permitted in any yard except the rear yard of the property. In any yard, no outdoor storage area in the I -P, Industrial Park District, shall be closer to any property line than ten (10) feet. 10. When storage or shipping containers are utilized, the following regulations shall apply: a. Containers shall be those manufactured expressly for the purpose of storing and /or shipping materials. b. No container, for the purpose of this ordinance, shall be greater than forty (40) feet in length, eight (8) feet in width, or eight and one half (8.5) feet in height. c. No more than one (1) such container may be allowed for each fifteen thousand (15,000) square feet of lot area, but shall in no case exceed the provisions for outdoor storage in the I -P zoning district generally. d. Containers shall not be stacked or arranged to exceed the eight and onehalf (8.5) foot height. e. Containers shall be painted to match or be complementary in color to the principal building, and shall be maintained to avoid rusting or other visible deterioration of the container. f. There shall be no storage of hazardous materials, as defined by the zoning ordinance Section 902 of this Ordinance, within any such container. From: Angela Schumann [mailto:Angela .Schumann @ci.monticello.mn.us] Sent: Thursday, May 26, 2016 12:29 PM To: Stephen Grittman <sgrittman @nacplanning.com> Subject: Outdoor Storage Language Steve, Can you send me the outdoor storage language you referenced Tuesday? Angela Schumann, AICP Community Development Director City of Monticello www.ci.monticello.mn.us 763 - 271 -3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 3 Title s rA f V' ePA N WAI key y �x ` M+v� tiy15�VYP� 'frr �` /'ID " G t i W 1 ci)j Lta ? 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I Nswc 1331.02 { `r n a»sswc _.•�� —�" walVtr I K -�4 el namrr w Net Tr Srr/r � A q At .fB68IJOFJ.f�•£JS' 2134 00' I a V v" I x "11 V" .EASEMENT Fti 5ro 00 OCP,4:e note: paved & curbed surface (drawing is not to scale) •. A IV# 155171000030 55191 155 271MV,0020 -J - t552,2 A A ti OF ■ b 1 5 551940 if I J J V J J 1 221 1 `� _ T� * *Mi �r 15503 3 900010 155.1 C 1551 1000040 ks . 21310010420.1 155540104200 15550 ' 1551940 oo- 1 , b� 155194000430 Z s s y' - 1551710 101 7 15519440 024 p� 155111400050' • ` ti t * 15512800 155185000CL1:. , �, .I FENCE/TRI E AOOOO ° ~ 10`�` T- r SCREENIN 1p� ■ , ,■� �� _�•_: ■ .. 60 ■ _ �_ f�' 213100 104301, �■ ��' , • .;'; ,� k rr 1551 5 4 155171000060 103300 •.�,o- ra T ' ; i'' �.. F: EDA Agenda: 8/10/16 14. Consideration of landscaping improvements on Block 34, 100 East Broadway site (AS) A. REFERENCE AND BACKGROUND: City staff have discussed the current visual aesthetic of the southeast corner of TH25 /CSAH 75 intersection. As the City and EDA continue to move forward on planning for the marketing and development of publicly held land on Block 34, it is still important to maintain that corner in terms of its visual impact as a primary entrance point for the community. As such, staff would propose allowing a minimal amount of landscaping treatments to be installed at this corner, to be completed in fall, 2016. These improvements are detailed on the attached sketch plan. The plan picks up on elements present across the intersection at the Chamber of Commerce and have been selected based on lower maintenance requirements. In addition to the landscaping elements, the Parks Department is working with an artist on another park project in the community and has offered to coordinate the development of a public art piece for this corner. If the EDA would like to pursue this option, the Parks and Community Development Department will work with the artist to develop a concept for EDA and City review. In working with the artist, staff will make it clear that the art will need to be recognized as "moveable" in the event that it needs to be relocated to another location within the community. This is given the potential for development of the corner and the idea that the art piece may be replaced by other elements of the development itself. The artwork would not be available until 2017 at the earliest and would be related to funding through an Arts & Culture Legacy grant. Al. Staff Impact: Minor; Parks and Community Development staff spent less than 3 hours in discussions and site visit. A2. Budget Impact: The costs for the proposed landscaping treatments will be minimal, at under $500. The Parks Department budget will cover the costs and the Parks Department will contribute the labor for the project. B. ALTERNATIVE ACTIONS: Decision 1: Landscaping Improvements 1. Motion to authorize landscaping improvements at the southeast intersection of TH25 /CSAH 75. 2. Motion to table for additional information or discussion. Decision 2: Public Art Concept Motion to authorize staff to prepare for review a conceptual artwork plan for the southeast intersection for TH25 /CSAH 75. 2. Motion to table for additional information or discussion. C. STAFF RECOMMWNDATION: Staff recommends Alternative 91 for both decisions. As a highly visible location at a primary intersection, improved landscaping at this corner will maintain an attractive landscape for the area and would not negatively impact the marketing and development efforts for the property. D. SUPPORTING DATA: A. Aeriallmage B. Site Landscaping Sketch 2 75 CITY . � � 0 [ �•��. _ � \. � � \\ ) TH 25/ CSAH 75 Landscaping Concept e | 8/4/16 EDA Agenda — 08/10/16 15. Consideration of Director's Report (JT) A. REFERENCE AND BACKGROUND: Activities that warrant a brief comment in the month include: 1. Completion of a Housing Financial Assistance Program Information listing (attached) 2. Follow up contact with Bill Gorton, Keller Williams, regarding Block 34 and 52 3. Submitted Site Information, Community Profile and Financial Available Financial Assistance Programs packet to Cushman Wakefield for 40,000 sq. fot light industrial prospect 4. Gathering sample RFPs for Downtown Small Area Study Upcoming Event — Initiative Foundation 30 Year Anniversary — Friday, October 7, 2016 5p.m. to 8:30 p.m. River's Edge Convention Center in St. Cloud, MN. Al. STAFF IMPACT: No unusual staff impact; normal business activity A2. BUDGET IMPACT: No extraordinary budget impact; normal budgeted business costs. B. ALTERNATIVE ACTIONS: 1. None requested or required 2. Motion if the EDA feels direction is needed on items 1 -9 C. STAFF RECOMMENDATION: No recommendation requested; information presented as an update and /or discussion D. SUPPORTING DATA: A. Financial Assistance Programs (Housing) CITY OF Montf6eflo HOUSING FINANCIAL ASSISTANCE Available Local, State, Regional and Federal Financial Assistance Programs A wide range of financial assistance programs exist for residential development and rehabilitation projects For more information, please contact: Jim Thares, Monticello Economic Development Manager Phone: 763 - 271 -3254 E -mail: jim.thares @ci.monticello.mn.us CITY EDA 1. Tax Increment Financing (TIF): The City of Monticello EDA offers Tax Increment Financing (TIF) assistance to development projects for the purpose of creating new housing units and eliminating blighted and substandard structures. Affordability is a key criteria for a significant portion of owner - occupied units and typically 20 to 40 % of rental units are required to meet affordability requirements. The assistance requires proof that the development would not otherwise occur without TIF. It can be used for land write downs and /or site improvements as mutually agreed by the EDA and the developer. MN -DEED 2. Minnesota Small Cities Development Program (SCDP): This is a MN -DEED financing program for rehabilitation of existing residential property with a goal of eliminating slum and blight conditions or benefiting low and moderate income individuals. Grants are competitive and are submitted on an annual cycle. Eligible activities include property acquisition, installation of streets and utilities, site prep, new construction and rehabilitation of existing units for owner occupied and /or rental units. Funds are awarded to local units of government who in turn provide them to qualified individual applicants and /or developers through low interest loans, forgive -able loans or possible grants as gap funding to complete the specific project or scope of work. Interest rates are typically negotiated with terms matching the useful life of the asset being financed. Loans require appropriate collateral and /or personal guarantees. The maximum grant award to a municipality for single purpose project is $500,000, with comprehensive projects topping out at $750,000. The MN -DEED website is: www.mndeed.state.mn.us. HOUSING FINANCIAL ASSISTANCE PROGRAMS I City of Monticello MN HOUSING FINANCE AGENCY (MHFA) 3. Impact Fund Program Impact Fund dollars can be used to help create new and reinvest in existing affordable owner- occupied housing. Eligible activities include: land acquisition, new construction, demolition or removal of existing structures with rebuild, owner - occupied rehabilitation, acquisition and rehabilitation of existing housing. Household income cannot exceed 115% of greater of state or area median income. Eligible applicants include Cities, For - profit and Non - profit corporations, Housing & Redevelopment Authorities (HRAs). To learn more about the program, visit the Minnesota Housing website at www.mnhousing.gov. REGIONAL ASSISTANCE 4. Midwest Minnesota Community Development Corporation ( MMCDC): The MMCDC offers loans ranging from $5,000 to $20,000,000 for community needs and solutions including the development of apartment buildings, homes with affordable payments and new subdivisions. For more information, check out their website at www.mmcdc.com. FEDERAL ASSISTANCE S. USDA -Rural Development— Multi - Family Housing Loan Guarantee Program: The USDA -Rural Development Multi - Family Housing Loan Guarantee Program works with qualified private sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low and moderate income individuals and families in eligible rural areas (population of less than 35,000). Activities include new construction, improvement and purchase of multi - family rental housing for low to moderate income families and individuals, buying and improving land and providing necessary infrastructure. USDA will guarantee up to 90 percent of the loan. Interest rates are typically negotiated between the lender and the borrower and fixed for the life of the loan. Eligible applicants include: For - profit entities, Non - profit organizations and State and local governmental entities. Rents must be capped at 30 % of 115 % of the area median income. The USDA website is www.rd.usda.gov /programs- services Questions? Feel free to Contact: Jim Thares, Monticello Economic Development Manager Phone: 763 - 271 -3254 E -mail: lim.thares @ci.monticello.mn.us 2 HOUSING FINANCIAL ASSISTANCE PROGRAMS I City of Monticello