EDA Agenda 05-11-2011EDA MEETING
Wednesday, May 11, 2011
6:00 p.m.
Mississippi - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Bill Fair,
Matt Frie, and Council members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett
1. Call to Order
2. Approve Meeting Minutes:
a. April 13, 2011
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Consideration of entering into a Purchase Agreement between the Monticello Economic
Development Authority and John Edwin Chadwick LLC
6. Consideration of approving an extension to the Preliminary Development Agreement
between Rocky Mountain Group and the Monticello EDA
7. Director Report
8. Adjourn
Economic Development Authority Minutes 04 /13/11
MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 13,2011- 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie,
and Council Members Tom Perrault and Brian Stumpf
Commissioners Absent: Bill Fair
Staff: Executive Director Megan Barnett - Livgard
1. Call to Order
President Demeules called the meeting to order at 6 p.m.
2. Approve Meeting Minutes
a) March 9, 2011
BILL TAPPER MOVED TO APPROVE THE MARCH 9, 2011 EDA MINUTES.
MOTION WAS SECONDED BY TOM PERRAULT. MOTION CARRIED 6 -0.
3. Consideration of additional agenda items
a) Potential project utilizing the jobs bill
4. Approval of EDA Invoices
BILL TAPPER MOVED TO APPROVE INVOICES. MOTION WAS SECONDED BY
TRACY HINZ. MOTION CARRIED 6 -0.
5. Consideration of authorizing Ehlers and Associates to complete an in depth review of
TII+ District 1 -22 and complete records retention for districts 1 -23 —1 -36
Barnett - Livgard reviewed the fact there are "surplus" fiords in TIF 1 -22 that need to get
sorted out. Staff would like Ehlers to complete an in -depth review of the district to
determine how much surplus the EDA could pool and utilize for a project, what types of
projects would qualify, and what amount the EDA will need to decertify.
Ehlers and Associates is proposing to charge $195 per hour at a maximum fee of $1,500 to
Economic Development Authority Minutes 04/13/11
complete the review and outline a definite strategy. Attached is a proposal from Bruce
Kimmel.
Barnett - Livgard also requested Ehlers complete a records retention project for districts
1 -23 through 1 -36.
BILL TAPPER MOVED TO APPROVE AUTHORIZING EHLERS AND ASSOCIATES
TO COMPLETE AN IN DEPTH REVIEW OF TIF DISTRICT 1 -22 AND COMPLETE A
RECORDS RETENTION PROJECT FOR THE REMAINING DISTRICTS. MOTION
WAS SECONDED BY BRIAN STUMPF. MOTION CARRIED 6 -0.
6. Discuss consideration by the City Council of an update relating to the Monticello
Zoning Code regulations for Adult- Oriented Land uses
Barnett - Livgard reviewed the reason the City is going through an update to the zoning code
and stated the City Council will be reviewing the item at their April 25, 2011 meeting. No
action was required by the EDA.
Marketing Update
No marketing update at this time.
8. Director Report
The Director Report was included as part of the agenda packet submitted to the EDA.
9. Proceed to closed session to consider purchasing properties by the EDA
President Demeules moved to a closed session for the purpose of discussing potential
purchase of property from John Chadwick. After discussion was completed, President
Demeules ended the closed session and returned to the regular meeting at 6:55 p.m.
10. Consideration of accepting Mr. John Chadwick's counter offer for the purchase of
his 13.6 acre parcel legally referred to as PID 15517100006
The EDA discussed a purchase price in a closed session. The EDA directed city staff to
present a counter offer to Mr. Chadwick.
TRACY HINZ MOVED TO DIRECT STAFF TO PROVIDE A COUNTEROFFER FOR
JOHN CHADWICK'S PROPERTY OF 13.6 ACRES. MOTION WAS SECONDED BY
BRIAN STUMPF. MOTION CARRIED 5 -1 WITH TOM PERRAULT OPPOSED.
Economic Development Authority Minutes 04/13/11
11. Consideration of items added to the ap_enda
a) Potential project utilizing the jobs bill
Barnett - Livgard reviewed a potential opportunity to assist a developer in kick starting a
retail multi- tenant building. The jobs bill is anticipated to expire on July 1, 2011. The
City has the opportunity to assist in financing the gap in order to spur private
development.
There were a number of questions about using the jobs bill and the likely funding source
for any gap financing. In addition, there was some discussion about the risk involved
should other financing fall through.
BILL TAPPER MOVED TO DIRECT STAFF TO BEGIN WORKING WITH THE
DEVELOPER TO EXPLORE DETAILS AND VIABILITY OF SAID RETAIL
PROJECT UTILIZING THE JOBS BILL. MOTION WAS SECONDED BY BRIAN
STUMPF. MOTION CARRIED 6 -0.
12. Adjournment
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:15 PM. MOTION WAS
SECONDED BY MATT FRIE. MOTION CARRIED 6 -0.
Recorder: Megan Barnett- Livgard
Approved: May 11, 2011
Attest:
Megan Barnett - Livgard, Executive Director
3
4. APPROVAL OF INVOICES:
a. McComb Group LTD
*Embracing DT study ($153,624.05 spent to date)
b. Wright County Auditor
*413 4th Street County recycling assessment /
Garden Center utility special assessment
c. Real Estate Communications Group
*Sponsorship for Land Development Conference
d. Wright Sherburne Realty
*Auction earnest money
E. MARRS Advertising and Design
*Business postcards
$42,263.22
$890.71
$1,500
$5,000 - Vol
$331.85
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mfliminsin Advertising
andDesign w
P.O. Box 681, Monticello, MN 55362
www.majlra.com VA ph: 763.295.4393 C7 t: 783,295.8858
Bill To
City of Monticello
505 Walnut Street
Monticello, MN 55362
Invoice
Date Invoice #
4/21/11 1 604
4
TERMS
Due on receipt
Item
Qty.
Description
Rate
Amount
Print
500
Concierge Postcards
0.444
222.00
Project f ,aerials .:
Postag, for mailing
94.59
94.59
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15.26
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Thankyou foryourbusiness, TOTAL $331.85
Payments/Credits $0.00
Balance Due $331.85
Ann Zimmerman
prom:
went:
To:
Subject:
Yes. 213 - marketing
Megan Barnett
Monday, April 25, 20119:40 AM
Ann Zimmerman
RE: Majirs 604 4/21/11 $331.85
Meeaw garwett-c .tvgard
ECov1 ntM 0 DeveLopvv.ev'.t ptrector
Ctti of M0vLtt6eU0
505 waLvLut street
Movuttcetl,o MN 55362
Mei a v�,.�a rwett@ct. wi.owttce��o. w�,vi.. u.s
�63.2j x.3208 (direct)
j �3.2�5:�4.404 (fax)
From: Ann Zimmerman
Sent: Friday, April 22, 2011 12:51 PM
To: Megan Barnett
Subject: Majirs 604 4/21/11 $331.85
Megan;
Please refer to the attachment. Okay to pay?
Annie
271-3205
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CITY OF MONTICELLO
VOUCHER
Please complete, sign, and submit to Accts Payable by due date fo
® Disb. Ck, Batch Pay by F
VENDOR:
Name
Address 1 r,-,�
Address 2
City/ST/Zip .jA-A1%QP(A`MK1GS!: Lo Statement/
Invoice No;
DISTRIBUTION OF EXPENSE
TOTAL, $0.00 I,
APPROVED BY _ {
DATE: ,
voucher.xis
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1301911
ltc:tl Estate Communications Group
C ONFERENCES
A diha. Ifl—WW" r-awi q 0191-1
CONTRACT
Megan Barnett-Livgard
Economic Development Director
City of Monticello
505 Walnut Street
Monticello MN 55362
Meaan.Barnett(a ci.monticello,mn.us
763.271.3208 (direct)
This contract represents an agreement between City of Monticello and Minnesota Real Estate
Journal a division of Real Estate Communications Group and Law Bulletin Publishing Company, to
be a sponsor the Friday, May 13, 2011 MREJ Land Development Conference at the Golden Valley
Country Club In Minneapolis, MN.
City of Monticello agrees to pay the Real Estate Communications Group 1 500 in exchange for
certain promotional, public relations and marketing, including the following:
• Company recognition — name or logo on marketing materials
• Quarter Page 4 color ad— in a future issue of MREJ
• 3 Free Passes to the event
• List of conference attendees after event
• Marketing Materials Passed out at the event
Payment must be received seven days prior to each event. If payment has not been received, RECG
reserves the right to cancel the sponsorship and to pursue the cost of damages of the sponsorship in
full.
City of Monticello authorizes the Real Estate Communications Group Conferences to utilize various
materials (company name, company logo, personnel publicity shots, biographies and other
materials) to create materials that will be used to promote the aforementioned event. Promotional
materials may appear in printed and electronic formats,
The undersigned warrants that he or she is the original author, owner, or representative with the
authority to provide these materials and approvals.
This agreement is made in exchange for payments (or other goods and value considerations),
receipt of which will be acknowledged, and it constitutes the full and complete agreement between
Real Estate Communications Group Conferences and the client on this topic.
Jeff Johnson
Publisher/General Manager
Real Estate Communications Group
5353 Wayzata Blvd, #307
Minneapolis, MN 55416
Direct: 952-405-7780
Fax: 952-885-0818
Email: iiohnsonRreiournals.com
vr�.i1
Date
5353 Wayzata Blvd., Suite #307 0 Minneapolis, MN 55416 ♦ Phone 952.885.0815 0 Fax 952,885.0818
Megan Barnett
Om
-..�.�
From: Minnesota Real Estate Journal - Events [conferences@recg,com]
Sent: Monday, May 02, 2011 1:27 PM
To: Megan Barnett
Subject: MREJ 7th Annual Land Development Conference May 13, 2011
7th Annual Land Development Conference
May 13, 2011
Golden Valley Country CIub, 7001 Golden Valley Rd.
7:15 AM Registration & Continental Breakfast
5:00 AM -12:00 PM Program
REGISTER
$99 Registration
$129 Day of Event - Walk-ins Welcome!
This event is open to the public, all are welcome to attend.
Questions About Registration?
Contact Alan Davis
952.405.7783 adavis(@,reeg.co
*4 Hours of Real Estate and 4 Hours Appraisal Continuing Education Credits Has
Been Applied For*
7:15 AM Registration
7:30 AM Continental Breakfast
8:00 AM —12:00 PM Program
Speakers Include:
Mike Devoe, Ryland
Steve Schwankee, RLK Inc.
Ryan Jones, Metro Study
Tom Gump, Neighborhood Development Partners, LLC
David Bade, RLK Inc.
Richard Weiblen, Liberty Property Trust
Brian Pankratz, CB Richard Ellis
Tony Phelps, Opus Development Corporation
Deanna Kuennen, Rice County
Mary McDaris, Pulte Group
Jon Aune, Lennar
Tony Barranco, Ryan Companies
Tanya Bell, Wellington Management
Brian McCool, Fredrikson & Byron, P.A.
Joseph Springer, Fredrikson & Byron, P.A.
Sherrill Oman, Fredrikson & Byron, P.A.
Regina Harris, Bloomington HRA
7:55 AM Welcome & Introduction
8:00 AM What are Residential Builders and Developers doinz to ReStart Development?
• Current Market Conditions and Evaluating Land Price Trends
• Redevelopment and Inner Ring Opportunties
• Evaluating Bank Owned Lots and Raw Land
• How to increasing efficiencies in both direct -cost and cycle times
• What are builders buying and Why? What are the typical terms
• Future Trends and what is the "New Normal" moving forward
8:45 AM Affordable Land Development
• Affordable land development best -practices and systems
• What are the best cost factors to avoid
• Strategize to minunizing risk associated with Land Development.
• Importmant Prelimary work that will save time and dollars
9.15 AM Lepal StratelZies for Re -Starting Development
• Strategies for Structuring Deals for Foreclosed Property and Stalled Developments
• Preserving Entitlements
• Rights and Obligations under Development Agreements
• Update on New Legislation impacting real estate development
9:55 AM Break
10:05 AM Current Market Conditions, Inventory & Trends
• How does the Twin Cities Stack up in comparison to other metro areas in terms of existing lot
inventories and land vacancies
• Where is the activity happening and what are the drivers
• What types of connnercial property are trading and why
• Short Term & Long Term Tends & forecasts
10:40 AM Economic Development Tools for Land Development
• Due Diligence in today's market conditions and how to integrate sophisticated Acquisition
and Financing Solutions
• The importance of Site Selection, Feasibility Studies and Government Approvals
• How to partner and work with a municipality to get your deal done
• How to Negotiate Terms to protect your investment and how can you partner with your
municipality to reduce your risk
• How are municipalities driving growth and interest and helping private Land Owners market
and move property
11:15 AM What are Commercial Builders & Developers doing to Restart Development?
• Current market conditions and what should the cost of commercial land be
• Commercial Development project updates: what is in the pipeline and what is Land being
traded at.
• How to overcome a stagnant economy to get projects moving and what are the drivers to spur
development.
• How are you evaluating Redevelopment Opportunities
• Creative Financing Solutions to get projects started
• What does the future hold for development and when do you see Land prices moving up
again and will we ever see Land prices as high as it was in the mid 2000's?
12:00 PM Adjourn & Networldn
Register
To sponsor this event, please contact
Jeff Johnson, jjohnsonRcrejournals.eom - 952.405.7780 or
Jay Kodytek, jkod t4ek@rejournals.com -952.405,7781.
For registration questions, please contact Alan Davis, adavis Aregg.com - 952.405.7783.
Upcoming
Events
Finance 101 Conference - May 25, 2011
Real Estate Communications Group
5353 Wayzata Blvd #307
Minneapolis Minnesota 55416
United States
You are subscribed to this newsletter as megan.barnett@ei.monticello.mn.us. Please click here to modify your
message preferences or to unsubscribe from any future mailings. We will respect all unsubscribe requests.
CITY OF MONTICELLO
VOUCHER
Please complete, sign, and submit to Accts Payable by due date for check run,
VENDOR: Disb. Ck. Batch Pay by:
Name
Address I
Address 2
City/ST/Zip Statement/
Invoice No:
DISTRIBUTION OF EXPENSE
TOTAL: $0.00
APPROVED BY DATE:
CJ
voucher.xIs T�— 14"
cl'"k�5
Northstar MLS Matrix
Property Full Display, Commercial/Mixed Use, MLS #: 4025546
f- 11 Walnut St, Monticello, MN 55362
This is an Auction property. Auctioneer License #: 86-96 Auction Type: Reserve
Reserve Auction: The high bid is reduced in effect to an offer, not a sale. A minimum bid is not published,
a„d tha -11— rac1— rhe rinhr m accent or reiect anv bid within 72 hours of the conclusion of the auction,
Status: Active List Price: Auction
Original List Price: Auction
Acres:
Lot Dimensions: 198x498
List Date; 03/21/2011 Received By MLS:03/21/2011 Days On Market: 35 CDOhi History
General Property Information
Legal Description: Sect -11 Twp -121 Range -025 Original Plat Monticello Lot -003 Block -054 Lots 3 4 & 5 Bik 54
County: Wright
School District: 882 - MonticelloB82 - Monticello
Complex/Dev/Sub:
Lot Description: Tree Coverage - Medium, City Bus (w/in 6 blks)
Road Frontage: Cit
Zoning: esidential-Multi-Family Owner Occupied: N
Accesslblllty- None
Agent emarks: Price to be determined by open bidding May 7th 10 AM at the property. Please register
client 48 hrs prior to auction, email johnsonteam@yahoo.com to request reg. form,
$5000 earnest required cashiers check made out to bidder, Great SPLEX Great condition!
Public Remarks: Great en plex AWESOME River location across from West River ParK, walK-Tg-
downtown. (7) 2BR units & (1) IBR unit, 6 garages & 4 mini storages. Brand NEW roof,
many updates, always rented, non-smoking pet free building, coin -op laundry for Xtra
structure Information
Heat: Hot Water Exterior: Stucco, Brick/Stone
Fuel: Natural Gas Fencing:
0201 D.N�VIK
� 534'x'.,: t�Y936Mrcasch
Roof; Asphalt Shingles, Age 8 Years or
..._ i
Map Pagel 31 Map Coord; D3
Garage: 6
Water: City Water/Connected
Directions:
Sewer: City Sewer/Connected
Parking Char;
I94 West To Highway 25, North To River
Qinen Hnuse
ibllc
,I ..�8�
Schedule
Street, Left To Walnut Street, 1 Block To
=
Sale Includes:
Property (Across The Street From West
I� Book A Showing
River Park)
(Click Icon for Virtual Earth Map)
& d 1g Watchgd ]je{,r
lie Renort a nrohlem
with this hsr(na __._._.____...__.____
MLS Area:
341 - Wright County (Except Buffalo)
TAX INFORMATION
Style:
Apartments and Retail
Property ID: 15$010054030
Current Use:
Residential
Tax Year: 2010
Const Status:
Previously Owned
Tax Amt; $5,960
Total Units:
8
Assess Bal: $2,960
Foundation Size:
3,320
Tax w/assess: $
Building FInSgFt:
6,640
Assess Pend: Yes
Year Built:
1965
Homestead: No
Acres:
Lot Dimensions: 198x498
List Date; 03/21/2011 Received By MLS:03/21/2011 Days On Market: 35 CDOhi History
General Property Information
Legal Description: Sect -11 Twp -121 Range -025 Original Plat Monticello Lot -003 Block -054 Lots 3 4 & 5 Bik 54
County: Wright
School District: 882 - MonticelloB82 - Monticello
Complex/Dev/Sub:
Lot Description: Tree Coverage - Medium, City Bus (w/in 6 blks)
Road Frontage: Cit
Zoning: esidential-Multi-Family Owner Occupied: N
Accesslblllty- None
Agent emarks: Price to be determined by open bidding May 7th 10 AM at the property. Please register
client 48 hrs prior to auction, email johnsonteam@yahoo.com to request reg. form,
$5000 earnest required cashiers check made out to bidder, Great SPLEX Great condition!
Public Remarks: Great en plex AWESOME River location across from West River ParK, walK-Tg-
downtown. (7) 2BR units & (1) IBR unit, 6 garages & 4 mini storages. Brand NEW roof,
many updates, always rented, non-smoking pet free building, coin -op laundry for Xtra
structure Information
Heat: Hot Water Exterior: Stucco, Brick/Stone
Fuel: Natural Gas Fencing:
Air Cord: Wall
Roof; Asphalt Shingles, Age 8 Years or
Less
Garage: 6
Water: City Water/Connected
Oth Prkg; 12
Sewer: City Sewer/Connected
Parking Char;
Detached Garage, Driveway - Asphalt, Garage Door Opener
Utilities;
Miscellaneous:
Sale Includes:
Building, Land, Inventory, Fixture/ Equipment, Leases
Page 1 of 2
http://matrix.noitlistarmis.comIMatrix/HTMLRepoi-t, aspx?c=AAEAAAD* * * * *AQAAAA... 4/25/2011
11
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❑oo McCOMB GROUP Ltd.
EINO
❑❑❑ R E T A I L ECSO N S U L T A N T S
April 7, 2011
Statement #3912
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STATEMENT -- RE: EMBRACING DOWNTOWN MONTICELLO STUDY
Previous Balance $ 18,167.22
Payments Received $ 18,167.22
Professional Services
McCornb Group, Ltd $ 10,800.84
Economic.Deveiopment Services, Inc. 3,058.13
Architectural Consortium L.L.C. 2,039.66
Westwood Professional Services 26,364.59
Subtotal $ 42,263.22
Total This Statement $ 42,263.22
BALANCE DUE $ 42,263.22
Retainer Balance $ 59,000.00
Statements for each firm are- attached. 4
s
.
APP 1 3-2011 T' tau
t
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339-7000 Fax: (612) 338-5572
ORR MCCOMB GROUP Ltd.
❑�❑ R E T A I L EC SO N S U L T A N T S
April 7, 2011
Statement #3912A
CITY OF MONTICELLO
505 Walnut Street
Monticello, Minnesota 55362
Attention: Ms. Megan Barnett
STATEMENT — RE:
Previous Balance
Payments Received
Professional Services
James B. McComb
Linda Oie
Susan M. Nache
Subtotal
Expenses
Mileage
Reproduction
Computer
Postage
Report Production
Subtotal
Total This Statement
EMBRACING DOWNTOWN MONTICELLO STUDY
$ 3,319.25
$ 3,319.25
23.25
hrs. @ $
275
$ 6,393.75
26.50
hrs. @ $
150
3,975.00
0.75
hrs. @ $
100
75.00
$ 10,443,75
$
92.50
7.00
129.00
4.84
2.75
hrs. @ $
45
123.75
$ 357.09
$ 10,800.84
BALANCE DUE $ 10,800.84
Terms: Net ten days. Interest (at a rate of 1.5 percent per month) will be charged on all balances outstanding at the
end of the month.
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 • (612) 339-7000 Fax: (612) 338-5572
Economic
Povelopment
Services
April 5, 2011
James B. McComb, President
McComb Group, Ltd.
222 South Ninth Street
Suite 380
Minneapolis, MN 55402
Invoice
Embracing Downtown Monticello
Professional Services at $135/hour for March 2011
Community engagement/alternatives (14.5 hr)
Project Management/team & staff coordination (6.5 hr)
Communication (1.25 hr)
Expenses (facilitation supplies — $54.38)
Total
Please make checks payable to Economic Development Services, Inc.
3109 West 5& St. #204 Minneapolis, MN 55410
(612) 925-2013 fax (612) 925-2942
email; jking@econdevelop.com
$1,957.50
877.50
168.75
54.38
$3,058.13
� �a 1� i L • � �'j C i 'f I .� �� f
•;vii ni! ( �. ','•_ '
April 5, 2011
McComb Group Ltd.
222 South Ninth Street, Suite 380
MiAneapolis, MN 55402
Attn: Jim McComb
Project: Downtown Monticello
Architectural Consortium. LLC Projeet # 10-1068-01 Invoice #7
Billing Period: March 4- April 1, 2011
ARCHITECTURAL DESIGN SERVICES
Basic Services'.
Meeting with. staff
Coordinate with Miles
Edit plan options
Meeting with steering committee
Meeting with stakeholders
Architedural fees: $2,000.00
Reimbursable Expenses:
Copies $3,40
Sales tax @7.75 % $.26
Mileage $:36.00
TOTAL DUE $ 2,039.66
Payment due within 30 days of receipt of invoice Thank You.
Payable to: Architectural Consortium LLC
901 North Third Street, Suite 220
Mimeapolis, MN 55401
Attn: Kathy Anderson
INVOICE
r
Westwood
March 16, 2011
Project No:
McComb Group, Ltd. Invoice No:
Attn: James B. McComb
222 South Ninth Street, Ste.#380
Minneapolis, MN 55439
Professional Services from January 30 2011 to February 26 2011
Project McComb Group/Monticello/Downtown Revitalization Plan
For Professional Services provided per our agreement.
Task 2020 Project Management & Coordination
Task 2700 Alternative & Refined Plans
Outstanding Invoices
Service Hours Rendered
1,00
Service Hours Rendered
64.25
Westwood Professional Services
7699 Anagram Drlve
Eden Pralde, MN 55344
MAIIJ 952-997.5150
FAX 952-937-5822
TOLL FREE 1-88B-937-5150
EMAIL wpsG.vestwoodps.com
www.wastwoodps.corn
20101228.00
1102251
Total this Task
Total this Task
Amount
175.00
$175.00
Amount
11,162.50
$11,162.50
Total this Involce $11,337.50
Number Date Balance
1101235 2/17/2011 10,800.50
Total 10,800.50
Total Now Due $22,138.00
Thank you.
Miles Lindberg
E S TA B ILI S f1 E D IN 1 9 7 2 ARIZONA COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will accrue at 1.25% per month on invoices over 30 days
Task 2500 Transportation Data Collection
Westwood Professional$%rvlcas
IN Y ICG •
Service Hours Rendered
7699 Anagram Drive
Eden Prairle, rvW 55444
_...._..__.............._......
.
uAM 452.937.5150 I
fax 952.937.5922
ruu Sass 1-848.937-5150
WA]t wpS6Wesnv00dpS.c0m
Westtnrobd
wWmwa"oodps.com
April 06, 2011
Travel Expenses
Project No:
McComb Group, Ltd, Invoice No:
Attn: James B. McComb
20101228,00
1103023
222 South Ninth Street, Ste.#380
Monticello Count March
.Minneapolis, MN 65439
Professional Services from February 27, 2011 fo ARM 02.2011
Project McComb Group/Monticello/Downtown Revitalization plan
For Professional Services provided per our agreement.
3/31/2011 Loebner, John
2020 'Project Marlageinent & Coordination
-
Service Hours Rendered
Amount
3,00
525.00
Total this Task $625.00
Task 2500 Transportation Data Collection
Service Hours Rendered
Amount
_...._..__.............._......
6.00
967.50
Reimbursable Expenses
Travel Expenses
3131 /2091 Carter, Richard
Monticello Count March
128.50 '
24,2011
Misc. Reimbursables
3/31/2011 Loebner, John
Monticello Count March
$8.00
24,2011
Total Reimbursables
214.80 214.50
Total this Task
$1,182.00
Task 2620 Traffic Issues Analysis
Service Hours Rendered
Amount
22.00
3,850,00
Total this Task
$3,850.00
Task 2560 Transportation Alternatives Feasibllit
Service Hours Rendered
Amount
W A 8 L I S r! E R IN 1972 ARIZONA COLORADO
M[NNESOTA KANSAS OREGON TEXAS
Interest will accrue at 1,26% per month on invoices over 30 days
Project McComb Group/Monticello/Downtown Revitai Invoice 1103023
W50 1,662.50
Total this Task $1,66250
Task 2700 Altemative & Refined Plans
Reimbursable Expenses
Rep rod uction s/Photos
3/28/2011 Large Format Color Prints
3/29/2011 Albinson
Total Reimbursables
Task 2900 Client Meetings
Task 9999 Reimbursable Expenses
Unit Billing
Color Copies
Total Units
Outstanding Invoices
Service Hours Rendered
80.00
Amount
5,927.50
132.00
3/29/11 Mylars 148.09
280.09
Total this Task
Service Hours Rendered
8.00
Total this Task
Amount
1,400.00
280.09
$6,207.59
$1,400.00
200.0 Copies @ 1.00 200.00
200.00 200.00
Total this Task $200.00
Total this Invoice $75,027.09
Number pate Balance
1102251 3/16/2011 11,337.50
Total 11,337.50
Thankycta.
Miles Lindberg
Total Now Due $26,364.59
ESTABLISHED I N S 9 7 2 ARC= COLORADO MINNESOTA KANSAS OREGON TEXAS
Interest will accrue at 1.26% per month on Invoices over 30 days Page 2
3S
817
14
0* ROBERT J. I'IIMA
15
0"O'Ey
4A
0 y WRIGHT COIINIY AUDITOR/TREASURER
00
03
10 SECOND S'1'RBE'I' N,W, ROOM 232
C BUFFALO, MN 55313-1194
You may be eligible for one or even two
63� .0 763-682-7572 or 76.3-684.4540
Expired Exclusions:
www, co, wrigh t. mn. Lts
Property ID #'. R155-010-029020
Taxpayer ID Number: 2205
CITY OF MONTICELLO
505 WALNUT ST STE 1
MONTICELLO MN 55362-8822
Property Tax S71a t
for Taxes Payable in
for hiture reference
Description:
Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Lot -002
Block -029 LOT 3 &LOT 2 EX NWLY 33FT THOF SD NWLY 33FT OF
LT2 DES AS TH PRT OF LT2 LY NWLY OF LN DRWN PAR TO
NWLY LN OF LT2 &33FT SELY OF SD NWLY LN OF LT2
415 WY, ?*T e,�—
Taxes Payable Year: 2010 2011 1
—
PLEASE READ THE BACK OF THE STATEMENT FOR IMPORTANT INFORMATION
PAYABLE 2011 Is' HALF PAYMENT STUB
If your address has changedplease check this box t
TO AVOID PENALTY PAY ON OR BEFORE: MAY 16 and show the change on the back of this stub.
Property ID Number: R155-010-029020 FULL TAX AMOUNT: $25.00
a
Bill Number; 20615
FIRST 1/2 TAX AMOUNT DUE: $25.00 x
�1PENALTY: TOTAL: g
ID Number: II 2205 MAKE I �IIIII SII II � IIIINI I�IIIII�I MaxF cHFCKs PAYABLE & MAIL TO:
ROBERT J. HIIVAI A e g
WRIGHT COUNTY AUDITOR/TREASURER y
10 SECOND STREET N.W. ROOM 232
BUFFALO, MN 55313-1195
CITY OF MONTICELLO
505 WALNUT ST STE 1 No Rceelpt Sent Am Raquesl4lburcancelledohack is yourrecsl This realptlnold R the deck is not honored.
MONTICELLO MN 55362-8822
Pr nerdy _Ta lVafees & Clssslflcatlart
kstima a ce
ar
Improvements Excluded:
New Improvements/
You may be eligible for one or even two
Expired Exclusions:
refunds t0 r@dUCB your property tax
$$$
Taxable MarketValue:. I
Prop" Classtficatton: EXEfy1PT EXEMPT
REFUNDS? Read the back of this statement to find
out how to apply.
1. Usethis amopnt on Form M1 PR to see, if you are eligible for a property tax refund.
File byAugust 15. If this box is checked, you owe delinquent taxes and are not eligible.
a "
2 -Use these arnounts on Form M1 PR to see if you;are eligible for a special refund.
Your Propgrty Tax and Credits..
3. Your property taxes before credits.
4. Credits that reduce yourroPe�Y taxes "
p. ,
" A. Hoihestead and agricultural market value credits
13.: Other Credits .
5. Property taxes after credits
Property Tax by Jurisdiction '
6..County :..
7. City ,(CITY OF MONTICELLO)
B. State General Tax. '
9. School district (0882)
A; Voter approved levies
- 13.; Other local:levies
10. Specia(Taxing Districts .: .
11. Non7schogl.y9ter app roved.referenda1evies '.
12.Totpl property'tak befoie speclal.assessments
- - -
Special Assessments on Your Property; ..
13: Special assessments :..:: Principal $" 25.00
25 00
A.,CO SIN DEBT 86000-0 25.00
14: YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS
'25.00 25.00
—
PLEASE READ THE BACK OF THE STATEMENT FOR IMPORTANT INFORMATION
PAYABLE 2011 Is' HALF PAYMENT STUB
If your address has changedplease check this box t
TO AVOID PENALTY PAY ON OR BEFORE: MAY 16 and show the change on the back of this stub.
Property ID Number: R155-010-029020 FULL TAX AMOUNT: $25.00
a
Bill Number; 20615
FIRST 1/2 TAX AMOUNT DUE: $25.00 x
�1PENALTY: TOTAL: g
ID Number: II 2205 MAKE I �IIIII SII II � IIIINI I�IIIII�I MaxF cHFCKs PAYABLE & MAIL TO:
ROBERT J. HIIVAI A e g
WRIGHT COUNTY AUDITOR/TREASURER y
10 SECOND STREET N.W. ROOM 232
BUFFALO, MN 55313-1195
CITY OF MONTICELLO
505 WALNUT ST STE 1 No Rceelpt Sent Am Raquesl4lburcancelledohack is yourrecsl This realptlnold R the deck is not honored.
MONTICELLO MN 55362-8822
3S
7 3 .
d,�„' n� ROBERT J. I RVAI A.
031YtRIGIIT
COUNTY AUDITOR/CREASURBR
11
10 SECOND STREET N.W. ROOM 232
03
� BUFFALO, MN 55313-1194
N+b� a 763.682.7572 or 763-684.4540
w%vw.co.wrlghLmn.us
Property ID #: R155-010.067010
Taxpayer ID Number: 248203��
CITY OF MONTICELLO EDA i
505 WALNUT AVE STE 14,
MONTICELLO MN 55362.8822
$$$You may be eligible for one or even two
refunds to reduce your property tax.
REFUNDS? Read the back of this statement to find
out how to apply.
Property Tax Statement
for Tax yable in 2011
Description:'
Sect -11 Twp -121 Range -025 ORI FI' ONTICELLO LOTS
1,2,3,4&5 ELK B
i
ti4y
Taxes Pbyabic Year.: 2010 2011
�v PAYABLE 2011 18t HALF PAYMENT STUB PLEASE READ THE BACK OFTHESTATEMENT FOR IMPORTANT INFORMATION.
If your address has changed please check this box
TO AVOID PENALTY PAY ON OR BEFORE: MAY 16 and show the change on the back of this stub.
Property ID Number: R155-010.067010 FULL TAX AMOUNT:
Bill Number: 20899
ID Number: 248203
FIRST 1/2 TAX AMOUNT DUE:.
PENALTY: TOTAL:
$1,731.41
$865.71
MAKE CHECKS PAYABLE & MAIL TO:
ROBERT J. HIIVA.LA
WMGAT COUNTY AUDITOR/rREASURER
10 SECOND STREET N.W. ROOM 232
BUFFALO, MN 55313-1195
CITY OF MONTICELLO EDA
505 WALNUT AVE STE 1 No Re0sip1$m1LAifess Raqussted Your cnueled cd -A Is Your recelplTM walpt is vud'd lh0 cbe& is 401 hcowd.
MONTICELLO MN 55362-8822
11
•e
g81
5. CONSIDERATION OF ENTERING INTO A PURCHASE AGREEMENT
BETWEEN JOHN EDWIN CHADWICK LLC AND THE MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY (MBL).
A. REFERENCE AND BACKGROUND:
The EDA recently directed city staff to negotiate a purchase price of $130,000 for
John Chadwick's 13.6 acre parcel located adjacent to the Monticello Business
Center. Negotiations were successful between the parties and therefore staff
directed Kennedy and Graven to draft a Purchase Agreement. The proposed
Purchase Agreement is standard and straightforward. The EDA has approved
similar agreements in the past. Both parties are hoping to close by June 1, 2011.
B. STAFF RECOMMENDATION:
City Staff and Kennedy and Graven recommend the EDA enter into a Purchase
Agreement with John Edwin Chadwick LLC.
C. ALTERNATIVE ACTION:
1. Motion to approve entering into a Purchase Agreement with John Edwin Chadwick
LLC.
2. Motion to deny entering into a Purchase Agreement with John Edwin Chadwick.
3. Motion to table action for further research based on discussion.
D. ATTACHMENTS:
1. Proposed Purchase Agreement
EDA 5.11.11
PURCHASE AGREEMENT
THIS AGREEMENT is made as of this day of 2011, by and between J.
Edwin Chadwick LLC, a Minnesota limited liability company ( "Seller") and the City of
Monticello Economic Development Authority, a public body corporate and politic ( "Authority" or
"Buyer").
RECITALS
A. Seller is the owner of property located in Monticello, Minnesota, which is legally
described as Outlot F, Otter Creek Crossing, Wright County, Minnesota
("Property ").
B. The Property currently includes crop land and is fanned by a third -party tenant (the
"Tenant") pursuant to a one -year lease (the "Lease "), which extends through the
2011 harvest. Pursuant to the Lease, rent on the Property is payable by the Tenant
at the time of crop harvest. Buyer and Seller agree that rent payable by the Tenant
under the Lease in 2011 shall remain payable to Seller. Thereafter, renewals of the
Lease and payments thereunder, if any, shall be negotiated between the Buyer and
the Tenant.
AGREEMENT
A. Offer /Acceptance for Sale of Property. The Seller agrees to sell to the
Authority the Property and the Authority agrees to purchase the same, according to the terns
of this Agreement.
B. Purchase Price for Property and Terms.
1. PURCHASE PRICE: The total Purchase Price for the Property is One
Hundred Thirty Thousand and 00 /100ths Dollars ($130,000.00).
2. TERMS:
a. EARNEST MONEY. No earnest money is payable by the Buyer to
the Seller upon execution of this Purchase Agreement.
b. BALANCE DUE SELLER: Buyer agrees to pay by check or
electronic transfer of funds on the Closing Date the Purchase Price
for the Property according to the tenns of this Purchase Agreement.
C. DEED /MARKETABLE TITLE: Subject to perfonnance by Buyer,
Seller agrees to execute and deliver a Warranty Deed conveying
marketable title to the Property to Buyer, subject only to the
1
385577v3 MNI MN325 -22
following exceptions:
1) Building and zoning laws, ordinances, state and federal
regulations.
2) Reservation of minerals or mineral rights to the State of
Minnesota, if any.
3) Public utility and drainage easements of record that will not
interfere with Buyer's intended use of the Property.
4) Temporary Storm Water Drain Easement dated September 6,
2000 ( "Agreement ") depicted on plat of Otter Creek Crossing
recorded with the Wright County Recorder as Document No.
940579, which Agreement provides that it terminates no later
than August 1, 2010.
5) Right of Way Conveyance dated August 21, 1946, recorded
November 12, 1946 in Book 5 of Miscellaneous Records, page
582 as Document No. 166345, partially released by Partial
Release of Right of Way Conveyance dated May 31, 1978,
recorded June 5, 1978 as Document No. 326274 and Agreement
and Partial Release recorded as Document No. 724490.
6) Easement dated March 29, 1968, recorded June 18, 1968 in Book
37 of Miscellaneous Records, page 434 as Document No. 251155
in favor of United Power Association, which easement was
defined by Partial Release of Easement dated January 11, 1993,
recorded January 12, 1993 as Document No. 519735.
7) Easements for utility and drainage as shown on the recorded plat
of Otter Creek Crossing.
d. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER.
In addition to the Warranty Deed required at paragraph B.2.c. above,
Seller shall deliver to the Buyer:
1) Standard form Affidavit of Seller.
2) A "bring- down" certificate, certifying that all of the warranties
made by Seller in this Purchase Agreement remain true as of the
date of closing.
3) Certificate that Seller is not a foreign national.
4) If an environmental investigation by or on behalf of the Buyer
2
3855770 MNI MN325 -22
discloses the existence of petroleum product or other pollutant,
contaminant or other hazardous substance on the Property, either
(i) a closure letter from the Minnesota Pollution Control Agency
(MPCA) or other appropriate regulatory authority that
remediation has been completed to the satisfaction of the MPCA
or other authority; or (ii) Agreement for
remediation/indemnification and security as the Authority may
require.
5) Well disclosure certification, if required, or, if there is no well on
the Property, the Warranty Deed given pursuant to paragraph
B.2.c. above must include the following statement: "The Seller
certifies that the Seller does not know of any wells on the
described real property."
6) Any other documents reasonably required by the Authority's title
insurance company or attorney to evidence that title to the
Property is marketable and that Seller has complied with the
terms of this Purchase Agreement.
C. Contingencies. Buyer's obligation to buy is contingent upon the following:
1. Buyer's determination of marketable title pursuant to paragraph D of this
Agreement.
2. Buyer's determination, in its sole discretion, that the results of the
environmental investigation under this Agreement are satisfactory to
Buyer; and
3. Approval of this Agreement by the Buyer's Board of Commissioners.
Buyer shall have until the Date of Closing (as defined hereinafter) to remove the foregoing
contingencies. The contingencies are solely for the benefit of Buyer and may be waived by
Buyer.
If one or more of Buyer's contingencies is not satisfied or is not waived, in either case by
written notice from Buyer to Seller given on or before the Date of Closing, then this Purchase
Agreement shall thereupon be void, and Buyer and Seller shall execute and deliver to each
other a termination of this Purchase Agreement. As a contingent Purchase Agreement, the
termination of this Agreement is not required pursuant to Minnesota Statutes, Sections 559.21,
et. seq.
D. Title Examination /Curing Title Defects. The Seller will provide the Buyer
with a commitment for title insurance ( "Commitment ") for the Property. Seller shall pay for
the abstracting/title search and name search fees, Buyer shall pay all other fees including exam
fee and premium. The Authority shall have ten (10) business days after receipt of the
3
3855770 MNI MN325 -22
commitment and executed Purchase Agreement to examine the same and to deliver written
objections to title, if any, to Seller, or Authority's right to do so shall be deemed waived.
Notwithstanding the exceptions listed in paragraph B.2.c. hereof, the Authority reserves the
right to object to any or all exceptions from coverage listed in the Commitment. Seller shall
have until the Closing Date (or such later date as the parties may agree upon) to make title
marketable, at the Seller's cost. In the event that title to the Property cannot be made
marketable or is not made marketable by the Seller by the Closing Date, then, this Agreement
may be terminated at the option of the Buyer.
E. Environmental Investigation. The Seller warrants that to Seller's knowledge,
the Property has not been used for production, storage, deposit or disposal of any toxic or
hazardous waste or substance, petroleum product or asbestos product during the period of time
the Seller has owned the Property, other than farming chemicals used in accordance with
applicable laws and regulations. The Seller further warrants that the Seller has no knowledge
or information of any fact that would indicate the Property was used for production, storage,
deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos
product prior to the date the Seller purchased the Property, other than farming chemicals used
in accordance with applicable laws and regulations.
F. Real Estate Taxes and Special Assessments. Real estate taxes payable in the
year of closing will be pro -rated between the Buyer and Seller to the Date of Closing. Seller
shall pay all real estate taxes payable in previous years, the entire unpaid balance of levied
special assessments, including levied special assessments payable after the year of closing, and
all installments of special assessments due in the year of closing. Seller also agrees to pay all
assessments related to service charges furnished to the Property prior to the Date of Closing
(e.g., delinquent water or sewer bills), including those charges levied, pending, or certified to
taxes payable in the year of closing. If closing occurs prior to the date the amount of real
estate taxes due in the year of closing are available from Wright County, the current year's
taxes will be pro -rated based on the amount due in the prior year.
G. Date of Closing. The Date of Closing will be on or before June 1, 2011.
Delivery of all papers and the closing shall be made at the City Hall of the City of Monticello,
or at such other location as is mutually agreed upon by the parties.
H. Possession /Utilities /Removal of Property /Escrow.
1. Possession. The Seller agrees to deliver possession not later than the Date
of Closing, subject to the Lease.
2. Personal Property. The Seller agrees to remove all debris and all personal
property not included herein from the Property before the possession date.
Personal property not so removed shall be deemed forfeited to and shall
become the property of the Buyer. The Buyer may inspect the Property
immediately prior to closing and deduct from the purchase price payable
at closing an amount reasonably necessary to pay for the cost of removal
of any debris or personal property then remaining on the Property. The
4
3855770 MNI MN325 -22
provisions of this paragraph shall not merge with the deed and shall
survive closing on the property.
3. Remedies. The Authority's ability to deduct amounts due under this
paragraph from the purchase price is not exclusive but is in addition to the
Authority's rights at law and equity to collect such amounts from Seller.
The Seller is responsible for the amounts due under this paragraph even if
the Authority neglects to deduct the amount from the purchase price.
1. Seller Warranties.
1. Mechanics' Liens. Seller warrants that, prior to the closing, Seller shall
pay in full all amounts due for labor, materials, machinery, fixtures or
tools furnished within the 120 days immediately preceding the closing in
connection with construction, alteration or repair of any structure upon or
improvement to the Property.
2. Notices. Seller warrants that it has not received any notice from any
governmental authority as to violation of any law, ordinance or regulation
in connection with the Property.
3. Occupancy. Seller warrants that the Property is not now occupied, other
than by the Tenant under the Lease.
4. Broker Commission. Each party represents to the other that it has not
utilized the services of any real estate broker or agent in connection with
this Purchase Agreement or the transaction contemplated by this Purchase
Agreement. Each party agrees to indemnify, defend, and hold harmless the
other party against and in respect of any such obligation and liability based
in any way upon agreements, arrangements, or understandings made or
claimed to have been made by the party with any third person.
5. Strictures. There are no buildings on the Property. The parties
acknowledge that the Property is being sold in "as is" condition relating to
any structural, operational, and mechanical systems.
J. Closing Costs /Recording Fees /Deed Tax. The Authority will pay: (a) the
closing fees charged by the title insurance or other closing agent, if any, utilized to close the
transaction contemplated by this Agreement; (b) the premium for title insurance policy, if any,
obtained by the Authority; and (c) and recording fees to record its deed from Seller under this
Agreement. Seller will pay all other fees normally paid by sellers, including any transfer taxes,
fees and charges related to the filing of any instrument required to make title marketable and
required to enable Buyer to record its deed. Each party shall pay its own attorney fees.
5
3855770 MNI MN325 -22
K. Inspections. From the date of this Agreement to the Date of Closing, Authority,
its employees and agents, shall be entitled to enter upon the Property to conduct such
surveying, inspections, investigations, soil borings and testing, and drilling, monitoring,
sampling and testing of groundwater monitoring wells, as the Authority shall elect; provided,
that Seller is given at least 24 hours' notice. Authority will indemnify and hold Seller
harmless from any claims against Seller or the Property that arise as a result of Authority or its
agents entering upon the Property to perform such surveying, inspections, investigations, soil
borings and testing, and drilling, monitoring, sampling and testing of groundwater including
without limitation crop damage caused to Tenant's crops.
L. Risk of Loss. If there is any loss or damage to the Property between the date
hereof and the Date of Closing, for any reason including fire, vandalism, flood, earthquake or
act of God, the risk of loss shall be on the Seller. If the Property is destroyed or substantially
damaged before the Date of Closing, this Purchase Agreement shall become null and void, at
the Authority's option. At the request of the Authority, Seller agrees to sign a cancellation of
Purchase Agreement.
M. Default /Remedies. If the Buyer defaults in any of the covenants herein, the
Seller may terminate this Purchase Agreement, and on such termination all payments made
hereunder shall be retained by the Seller as liquidated damages, time being of the essence.
This provision shall not deprive either party of the right to enforce specific performance of this
Purchase Agreement, provided this Purchase Agreement has not terminated and action to
enforce specific performance is commenced within six months after such right of action arises.
In the event the Buyer defaults in its performance of the terms of this Purchase Agreement and
Notice of Cancellation is served upon the Buyer pursuant to Minn. Star. Section 559.21, the
termination period shall be thirty (30) days as permitted by Minn. Stat., Section 559.21, Subd.
4.
N. Notice. Any notice, demand, request or other communication that may or shall
be given or served by the parties, shall be deemed to have been given or served on the date the
same is personally served upon one of the following indicated recipients for notices, is sent by
recognized overnight courier for next business day delivery, or is deposited in the United
States Mail, registered or certified, return receipt requested, postage prepaid and addressed as
follows:
6
385577v3 MNI MN325 -22
SELLER: J. Edwin Chadwick, LLC
Attn: John E. Chadwick
4477 Manitou Road
Excelsior, MN 55331
With copy to: Moss & Barnett, a Professional Association
Attn: Charles A. Parsons
4800 Wells Fargo Center
Minneapolis, MN 55402
BUYER: City of Monticello Economic Development Authority
Attn: Economic Development Director
505 Walnut Street, Suite 1
Monticello, MN 55362
With copy to: Kennedy & Graven, Chartered
ATTN: Martha hrgram and
Catherine B. Rocklitz
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
O. Relocation. Seller asserts: 1) that the property is unoccupied and that the owner
has no intention of reoccupying the property; 2) that the Seller has been advised that Buyer
will only purchase the property if it can be acquired by negotiation and will not acquire the
property by condemnation; 3) that prior to any action by Buyer indicating an intent to acquire
the property the Seller requested that the property be acquired by negotiation; 4) that any
personal property remaining in the property will not be moved to Seller's current or future
residence; 5) that Seller has removed itself from the property for reasons unrelated to the
acquisition of the property by Buyer; and 6) that Seller asserts that Seller has no entitlement to
relocation assistance or benefits and waives any claims to such assistance and benefits.
P. Entire Agreement. This Purchase Agreement, Exhibits, and other amendments
signed by the parties, shall constitute the entire Agreement between Seller and the Authority
and supersedes any other written or oral agreements between the parties relating to the
Property. This Purchase Agreement can be modified only in a writing properly signed on
behalf of Seller and the Authority.
Q. Survival. Notwithstanding any other provisions of law or court decision to the
contrary, the provisions of this Purchase Agreement shall survive closing.
7
3855770 MNI MN325 -22
IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date
and year above.
Buyer: CITY OF MONTICELLO ECONOMIC Seller: J. EDWIN CHADWICK LLC
DEVELOPMENT AUTHORITY
Its President
And by:
Its Executive Director
3855770 MNI MN325 -22
By:
Its
6. CONSIDERATION OF EXTENDING THE PRELIMINARY DEVELOPMENT
AGREEMENT BETWEEN THE MONTICELLO EDA AND ROCKY
MOUNTAIN GROUP LLC. (MBL)
A. REFERENCE AND BACKGROUND:
As you may recall, the EDA approved entering into a Preliminary Development
Agreement with Dahlheimer Distribution (Rocky Mountain Group) at the May 2009
EDA meeting. The agreement stipulated the EDA would hold the property known as
Outlot C under contract with Rocky Mountain Group until October 31, 2010. Purchasing
Outlot C will allow Dahlheimer Distribution to expand their existing facility by
approximately 50,000 — 60,000 square feet. The EDA then approved an extension of the
Preliminary Development Agreement at their November 2010 meeting.
In order to complete the land sale transaction and desired expansion, Dahlheimer needs to
sell an existing building they own in the City of Ramsey. To date, this building has not
been sold. The Applicant continues to receive inquires from potential buyers, however to
date there is no signed purchase agreement. The applicant is requesting the EDA extend
the terms of the Preliminary Development Agreement.
B. STAFF RECOMMENDATION:
City Staff supports the requested extension and is recommending the EDA allow a one
year extension to allow for another construction season to commence. It is Staff s opinion
we should continue to work with our existing business to continue to help facilitate their
ultimate goal of expanding in Monticello.
C. ALTERNATIVE ACTIONS:
1. Motion to approve a one year extension to the Preliminary Development Agreement
between Rocky Mountain Group (Dahlheimer) and the Monticello EDA.
2. Motion to deny entering into a one year extension to the Preliminary Development
Agreement between Rocky Mountain Group and the Monticello EDA.
3. Motion to table item for further research.
D. SUPPORTING DATA:
a. Letter from Luke Dahlheimer requesting extension
b. Proposed revised Preliminary Development Agreement
1MEH:
d er
May 3, 2011
Economic Development Authority
City of Monticello
505 Walnut St.
Monticello, MN 55362
Dear EDA,
Dahlheimer Beverage/Rocky Mtn Group entered into a Preliminary
Development Agreement with the EDA to purchase adjacent property to that
which is currently owned by Rocky Mtn Group. That Preliminary
Development Agreement states that the contract has expired on April 30,
2011. At this time Dahlheimer Beverage/Rocky Mtn Group would like to
request the EDA consider an extension of the Development Agreement. Our
overall goal remains to purchase the property in order to facilitate an
expansion of our existing building at 3360 Chelsea Road West. We are
currently working toward site plans and possible timelines depending on the
sale of a property in Ramsey, MN. If you would like to discuss options
going forward please contact me at 295 -3347. Thank you for your
consideration.
3360 Chelsea Road West • Box 336 • Monticello, MN 55362 o Telephone 763 - 295 -3347
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
PRELIMINARY DEVELOPMENT AGREEMENT
(Monticello Business Center)
THIS AGREEMENT, dated this _ day of 20 by and between the
Monticello Economic Development Authority, a public body corporate and politic under the laws of
Minnesota ( "Authority ") and Rocky Mtn Group, LLC or its Assigns ( "Developer "):
WITNESSETH:
WHEREAS, the Authority owns certain property within the City of Monticello (the "City"),
which property is legally described in Exhibit A attached hereto ( "Property "); and
WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal ") for the
acquisition and development of the Property (the "Development "), which proposal is attached hereto
as Exhibit B; and
WHEREAS, the Developer has requested the Authority to explore the use of certain public
assistance to assist with the Development; and
WHEREAS, the Authority has determined that it is in the Authority's best interest that the
Developer be designated sole developer of the Property during the term of this Agreement; and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment
for public costs necessary for the Development; (ii) satisfactory mortgage and equity financing, or
adequate cash resources for the Development can be secured by the Developer; and (iii) the
economic feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties; and
WHEREAS, the Authority is willing to evaluate the Development and work toward all
necessary agreements with the Developer if the Developer agrees to make the nonrefundable
deposit described herein, which is intended, in part, to reimburse the Authority for its costs if the
Development is abandoned by Developer or necessary agreements are not reached under the terns
of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the parties agree as follows:
1. Negotiations between the parties shall proceed in an attempt to formulate a definitive
purchase and development contract ( "Contract ") based on the following:
(a) the Developer's Proposal, which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any changes
or modifications required by the Authority;
(b) a mutually satisfactory Contract to be negotiated and agreed upon in
367304A SJB MN190 -135
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertake during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement: (a) documents the present
understanding and commitments of the parties; and (b) will lead to negotiation and execution of a
mutually satisfactory Contract for the Development prior to the termination date of this Agreement.
The Contract (together with any other agreements entered into between the parties hereto
contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the tern of this Agreement, the Developer shall:
(a) Submit to the Authority a design proposal to be approved by the Authority
showing the location, size, and nature of the proposed Development, including floor layouts,
renderings, elevations, and other graphic or written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting and
completion of all phases of Development.
(b) Submit an over -all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain such other preliminary economic feasibility studies,
income and expense projections, and such other economic information as the Developer
may desire to further confirm the economic feasibility and soundness of the Development.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Development is financially feasible, and, to the extent Developer seeks public
financial assistance in any form (including reduced land cost, waiver of fees, and tax
increment financing), evidence that such assistance is reasonably necessary to make the
Development financially feasible.
(f) Furnish satisfactory, financial data to the Authority evidencing the
Developer's ability to undertake the Development.
(g) Cooperate with the Authority and City in replatfing of the Property as
described in Section 4.
4. During the term of this Agreement, the Authority agrees to:
(a) Continence the process necessary to undertake such public assistance as is
necessary pursuant to the terms of the Proposal, including without limitation
cormnencernent of actions necessary to expand Tax Increment Financing District No. 1 -36
367304A SIB MN190 -135 2
to include the Property
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
(c) Estimate the Authority's level and method of financial participation, if any,
in the Development and develop a financial plan for the Authority's participation.
(d) Grant to the Developer a right of access to the Property for purposes of
environmental and soil testing. Developer agrees to indemnify, save harmless, and
defend the Authority and City , their officers, and employees, from and against any and
all claims, actions, damages, liability and expense in connection with personal injury
and/or damage to the Property arising from or out of any occurrence in, upon or at the
Property caused by the act or omission of the Developer in connection with Developer's
entry on the Property. Further, Developer shall not permit any mechanics',
rmaterialmens' or other liens to stand against the Property or any part thereof for work or
materials furnished to Developer in connection with the right of entry granted pursuant to
this Agreement and Developer agrees to indemnify, defend and hold harmless the
Authority and City from and against the same.
(e) Commence replatting of the Property in order to create two parcels (with the divide
running parallel to Dalton Way). The parcel immediately adjacent to Developer's
existing parcel would contain 3 acres (referred to as "Parcel 1 "). The parcel adjacent to
Dalton Way would contain 3.19 acres (referred to as "Parcel 2 ").
5. It is expressly understood that execution of the Contract shall be subject to:
(a) A determination by the Authority in its sole discretion that its undertakings
are feasible based on (i) the projected tax increment revenues and any other revenues
designated by the Authority (to the extent requested by Developer); (ii) the purposes and
objectives of any tax increment, development, or other plan created or proposed for the
purpose of providing financial assistance for the Development, if any, including the
determination that such assistance is reasonably necessary in order to make the
Development possible; (iii) the best interests of the Authority.
(b) A determination by the Developer that the Development is feasible and in
the best interests of the Developer.
6. This Agreement is effective from the date hereof through October 31, 2010, unless
extended with approval of the Authority's board of commissioners. After expiration of the term of
this Agreement, neither party shall have any obligation hereunder except as expressly set forth to the
contrary herein.
(a) The EDA herein approved a 6 month extension to the terms of said Preliminary
Development Agreement on November 10, 2010. Said Agreement will be effective until April 30,
2011.
(b) The EDA herein approved a one year extension to the terns of said Preliminary
367304v4 SJB MN190 -135 3
Development Agreement on May 11, 2011. Said Agreement will be effective until May 11, 2012.
7. The Developer shall be solely responsible for all costs incurred by the Developer. In
addition, the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined.
For the purposes of this Agreement, the term "Administrative Costs" means out of pocket costs
incurred by the Authority and City together with staff costs of the Authority and City, all
attributable to or incurred in connection with the negotiation and preparation of this Agreement, the
Contract, and other documents and agreements in connection with the Development, including
without limitation all costs in connection with replatting of the Property and the cost of financial
advisors, attorneys, and planning and environmental consultants.
In order to secure payment of the Administrative Costs, the Authority acknowledges that
Developer delivered $5,000 to the Authority upon filing an application for tax increment assistance.
Upon for before execution of this Agreement, Developer shall deliver an additional $5,000 to the
Authority (by cash or a certified check), for a total deposit of $10,000. If at any one or more tines
during the tern of this Agreement, the Authority determines that Administrative Costs will exceed
$10,000 and that additional security is required, the Authority shall notify the Developer of the
amount of such additional security. Within ten calendar days of receipt of this notice, the Developer
shall deliver to the Authority the required additional security. The Authority will utilize the funds
delivered by the Developer to pay or reimburse itself for Administrative Costs. Upon termination of
this Agreement, the Authority will return to the Developer the funds paid by the Developer to the
Authority pursuant to this Section 7, less an amount equal to the Administrative Costs incurred by
the Authority through the date of notice of termination. For the purposes of this paragraph,
Administrative Costs are considered to be incurred if they have been paid, relate to services
performed, or are payable under a contract entered into, on or before the date of the notice of
termination.
This Section 7 shall survive termination of this Agreement and shall be binding on the
Developer regardless of the enforceability of any other provision of this Agreement.
This Agreement may be terminated upon 5 days written notice by a party to the
other party if:
(a) if, in the respective sole discretion of the Authority or the Developer, an
impasse has been reached in the negotiation or implementation of any material term or
condition of this Agreement or the Contract; or
(b) the Authority determines that its costs in performing under this Agreement
well exceed $10,000 and the Developer does not deliver additional security to the Authority
pursuant to Section 7; or
(c) a party fails to perform any of it's obligations under this Agreement.
If either party terminates the Agreement under this Section 8, the Developer shall remain
liable to the Authority to the extent provided under Section 7 of this Agreement.
9. The Developer shall not assign or transfer its rights under this Agreement in full
or in part to any person or entity that is not a "Related Party," or enter into any subcontracts to
367304v4 SJB MN190 -135 4
perform any of its obligations hereunder, without the prior written consent of the Authority. For
the purposes of this Agreement, a "Related Party" is an entity owned or controlled by Developer,
or owned and controlled by the same person or entity that owns or controls Developer.
10. In the event that the Developer, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by
appropriate legal and /or finance consulting or equitable proceedings, or other similar proceedings,
and the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement,
including reasonable attorneys' fees.
11. If any portion of this Agreement is held invalid by a court of competent jurisdiction,
such decision shall not affect the validity of any remaining portion of the Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another 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.
13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally:
(a) As to the Authority: Monticello Economic Development Authority
505 Walnut Street, Suite 1
Monticello, MN 55362 -8822
Attn: Executive Director
(b) As to the Developer: Rocky MTN Group, LLC
3360 Chelsea Road
PO Box 336
Monticello MN 55362
14. This Agreement may be executed simultaneously in any number of counterparts, all
of which shall constitute one and the same instrument.
15. 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.
16. The Developer hereby agrees to protect, defend and hold the Authority, the City
and their officers, elected and appointed officials, employees, administrators, commissioners,
agents, and representatives hannless from and indemnified against any and all loss, cost, fines,
charges, damage and expenses, including, without limitation, reasonable attorneys fees,
consultant and expert witness fees, and travel associated therewith, due to claims or demands of
any kind whatsoever caused by Developer or arising out of actions of Developer (and excluding
those caused by or arising out of the Authority's or City's own acts or conduct) with regard to (i)
3673044 SJB MN190 -135 5
the development, marketing, sale or leasing of all or any part of the Property, including, without
limitation, any claims for any lien imposed by law for services, labor or materials furnished to or
for the benefit of the Property, or (ii) any claim by the state of Minnesota or the Minnesota
Pollution Control Agency or any other person pertaining to the violation of any permits, orders,
decrees or demands made by said persons or with regard to the presence of any pollutant,
contaminant or hazardous waste on the Property; and (iii) or by reason of the execution of this
Agreement or the performance of this Agreement. The Developer, and the Developer's
successors or assigns, agree to protect, defend and save the Authority, and its officers, agents,
and employees, hannless from all such claims, demands, damages, and causes of action and the
costs, disbursements, and expenses of defending the same, including but not limited to, attorneys
fees, consulting engineering services, and other technical, administrative or professional
assistance. This indemnity shall be continuing and shall survive the performance, termination or
cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of
or waiver by the Authority of any immunities, defenses, or other limitations on liability to which
the Authority is entitled by law, including but not limited to the maximum monetary limits on
liability established by Minnesota Statutes, Chapter 466.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
ROCKY MTN GROUP, LLC
By
Its:
MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY
By
Its
President
By
Its Executive Director
3673040 SJB MN190 -135
EXHIBIT A
Description of Property
Outlot A, Otter Creek Crossings, 1" Addition, and Outlot C, Otter Creek Crossings 3'd Addition,
according to the recorded plat thereof, Wright County, Minnesota.
367304v4 San MN190-135 A -1
EXHIBIT B
Project Proposal
367304v4 SJB MN190 -135 B -1
Economic Development Director Updates:
IEDC:
The IEDC is interested in supporting the implementing of Project Lead the Way in
Monticello. This program connects students to training and courses related to actual
manufacturing jobs.
Planning Commission: See attached agenda
BR &E:
No new updates.
Inquiries:
Staff has been in contact with a few local manufacturers looking to expand.
City staff met with Ayers & Ayers, a development company interested in bringing a project to
Monticello. Bauer Design is also interested in bringing a project to Monticello.
Industrial Marketing / Venues:
The City is a member of CMMA, Central MN Manufactures Association. As an effort to meet
more manufacturers' staff is going to renew efforts to attend CMMA meetings and get
involved in this organization. Local businesses may be interested in also joining. Membership
information can be found at www.centrahnnmanufacturing.com. The next meeting is
scheduled for May 26`x' in Waite Park followed by a tour of DCI in St. Cloud.
Monticello will be a sponsor at the May 13`x' MN Real Estate Journal Land Development
Conference. Companies such as Ryan, Ryland, CB Richard Ellis, Opus, etc. will be attending
and speaking at the 7"' annual Land Conference.
Business Communications & Retention Initiatives:
The next Business Insider will be published in May.
Embracing Downtown:
Several public input meetings engaging business, land owners, and residents have been
completed. Four concept plans have been outlined and discussed in great detail. The
consulting group is in the process of regrouping and reviewing comments to pare down the
concepts to one preferred alternative. The consulting team will also be working on the
Comprehensive Plan and implementation/financial analysis section.
Economic Development related articles:
None at this time.
MISC.
WSI recently paid the required balloon payment for their GMEF loan and therefore satisfied
the terms of their loan.
Future Meeting Dates:
1. EDA: June 8, 2011
IEDC April 5, 2011