Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
EDA Agenda 02-13-2013
EDA MEETING Wednesday, February 13th, 2013 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN EDA Workshop - 2013 Workplan To be held immediately following the closed meeting. Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, Rod Dragsten and Council members Tom Perrault and Brian Stumpf Staff: Executive Director Jeff O'Neill, Wayne Oberg 1. Call to Order. 2. Approve Meeting Minutes: a. January 9', 2013 Regular Meeting Minutes 3. Consideration of additional agenda items. 4. Consideration of approving payment of bills. 5. Annual Meeting: a. Elect officers b. Review fund balances c. Review Enabling Resolution d. Review Bylaws 6. Consideration to adopt a management scenario for TIF District 1 -22. 7. Consideration of Director's Report. 8. Adjourn. 9. Closed Meeting — Land Acquisition Negotiations MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 9, 2013 - 6:00 p.m. Commissioners Present: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, Rod Dragsten, and Council Members Tom Perrault and Brian Stumpf Staff. Executive Director Jeff O'Neill, Angela Schumann, Wayne �. Call to Order 2. 3. 4 President Bill Demeules called the meeting to Approve Meeting Minutes October 10th, 2012 Regular Meeting BILL TAPPER MOVED TC EDA MEETING MINUTES MOTION. MOTION CARR November 14th, 10TH, 2012 REGULAR kMPF SECONDED THE racy Hinz abstained.) THE NOVEMBER 14TH, 2012 REGULAR LkECONDED THE MOTION. MOTION OO APPROVE THE DECEMBER 12TH, 2012 ETW MINUTES. MATT FRIE SECONDED THE MOTION. 4-0. (Bill Tapper, Brian Stumpf and Tracy Hinz abstained.) BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH DECEMBER 2012. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. Tom Perrault asked about the nearly $2,000 in penalties related to Wright County property taxes. Jeff O'Neill agreed to look into the issue. 5. 6. Economic Development Authority Minutes — 1/09/13 Consideration of EDA Commissioner Appointment Schedule Staff had previously noted that the EDA commissioner term schedule should be corrected so that all terms are appropriately staggered as required in the bylaws. The length of the terms served by Commissioners Rod Dragsten and Matt Frie will be reviewed and adjusted. Bill Demeules agreed to further clarify this issue and report back to the EDA. ers to Negotiations Team Jeff O'Neill underlined the importance of quickly acquisition and sale proposals presented to the EI establishing a team with representation from bo more readily address opportunities and conte appoint two members to a joint EDA -Co ai initial response, research and negotiation ass acquisition or land sale proposal. The full EDA recommendation, formally act to establish a negol acquisition or sale offer. Bill Demeules noted that he, Bill TaIN7, rbst and IV Hilgart had been acting in this capacity on an informal basis as h is a d. He suggested that it might be useful to develo,st� operating es for al team. He indicated that it would provide greater 'lity for the A to regul ly plan for the option of conducting a closed me e ' ollowin heduled ED meetings. He pointed out that item 9 in the agenda was u eetin I-SAMMaLel he ault would not be involved in a negotiations Ss t e the EDA as well as the City Council. Rod Dragsten stated although e in d ' participating in a team, he felt confident that Bill eules and Bi l per wo ontinue to do a good job in representing the EDA. UA and Cil' He recommended would be huv EDA e/S ale ding to land value of mcil in order to EDA formally ON&Wfor the lsider the te'am's and take action on the final :d if theMwere any legal issues that should be considered prior to formal int negotiations team. Jeff O'Neill agreed to check with the City Attorney. TRACY HINZ*VROVED TO APPOINT EDA COMMISSIONERS BILL DEMEULES AND BILL TAPPER TO THE EDA -CITY COUNCIL PURCHASE NEGOTIATIONS TEAM PENDING APPROVAL BY THE CITY ATTORNEY. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 7-0. 7. Consideration of Director's Report EDA/CC Workshop — Several dates in late January and early February were suggested as options for rescheduling the joint EDA/CC goal setting workshop. Staff will confirm Economic Development Authority Minutes — 01/09/13 whether or not Monday, January 28th after 5:30 p.m. would be a workable plan. Montgomery Farms Building - Jeff O'Neill stated that the City has continued to work to pay appropriate tenant relocation fees while still protecting City interests. He confirmed that the City would no longer be responsible for the cost of the building's utilities after the end of the month. McCombs Reports - Tom Perrault noted that the design for Block 34 looked different. Matt Frie asked about the funding proposed for improving the inter n at County Highway 75 and State Highway 25. Jeff O'Neill indicated that outsid dinassistance priorities had now shifted from construction costs to maintenance att Frie said that he'd rather the EDA focus on other projects rather than pay lly f pocket for this project. Jeff O'Neill stated that the analysis of the session. He indicated that it has now been investment, beyond what is generated by block. 4 Ace Hardware will remain in its 8. Adjournment BILL TAPPER MOVED TO ADJ(1 TOM PERRAULT SFCDNDED THE 9. Closed location. PW%vduld be di d in a future work lined that it would re a significant ready e site for a tend e anchor U MEETING AT 6:37 P.M. CARRIED 7-0. The EDA moved Wo folloig the regular meeting. EDA Agenda — 02/13/13 Consideration of approving payment of bills. (WO) A. REFERENCE AND BACKGROUND: Included are the previous month's invoices for approval of payment. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through January 29', 2013. 2. Motion to deny payment of bills through January 29', 2013. 3. Motion of other. C. STAFF RECOMMENDATION: City staff recommends approval of payment for submitted invoices. D. SUPPORTING DATA: A. Invoices through January 29', 2013, that have not received prior approval. 13 14 15 16 17 mu Mm ON O Q O O Q 0 p I 00 O P 5 O N � N M_ r 4 0 O O lei Iq O O m N "D N E U N N N M M O N � N O Vl 00 O t} b 41 ct m M Cl O ""� .�-+ N dN" O O 6 Uj N F.i ,.may 0 Q Q Q Q ? w° 4 Q � p 0 p I 00 00 O P N O N � N M_ r 4 0 O O lei Iq O O m N "D N E U N N N M M O N � N O Vl 00 O t} b 41 ct m M Cl O ""� .�-+ N dN" O O 6 Uj N F.i ,.may 0 Q Q Q Q ? w° 4 Q � p 00 00 O P 6 O N � N M_ O C O O lei Iq O O o0 � "D N E N N N N M M O O N O Vl 00 O t} Ir 41 Vl m M Cl O ""� .�-+ N dN" O 6 N N N N Q Q N OZ kr) ID O O O O O O O [n O 6 C? O CJ CJ C7 Cl 0 0 m 00 00 00 M_ O O O N N N N E N m M N N N r N N O N N N O N N b G N Lr-i Q Q Q Q ? w° 4 w° w° a o b w � Ob W H z z O O z 0 0 U U U O [n O 6 C? O CJ CJ C7 Cl 0 0 m 00 00 00 O O O N N N E M r N N N N N N «w O NQ A, M M h 1 M N O d c� di p b ROMUMMEM December 19, 2012 Angela Schumann, Community Development Director City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 -8831 Invoice Economic Development Professional services for December 2012 [4.5 hours at $150] Balance on contract Please make checks payable to Economic Development Services, Inc, jking0'wcandeveqepxorr1 612 925 2013 $52.08 Wright County Econom €c Development Partnership PO Box 525 Rockford MN 55373 763.477.3035 jstrum@wrlghtpBrtnershlp.org i 2013 Membership Dues f r n +:r Glaie; il/26/2012 4 zo1z !;Od TI.- Jeff O'Neil City of Monticello 505 Walnut Street Suite i Monticello MN 55362 $x373.50 Total Discount Subtotal ? $2373.50 Sales Tex I To t a 1 $2373.50 )/r +.YrighrCoun -y If you have any questions U"OOMIC pevelnpment Partnamhlp please contact Jeanette at rwwrt fIJfYZ"P,,i1:,Iv 763.477.3035. Thank you for your business! 2013 Pledge Reminder 405 First Street SE Initiative""o Little Fails, MN 56345 FOUNDATION Phone; (320) 632 -9255 or Fax: (320) 632 -9258 www.ifound.org Customer Contact Name Jeff O'NeilI Company Name City of Monticello Address 505 Walnut St City /State /Zip Monticello, MN 55362 -8822 Purchase Order # ICRI22012 Date 12/20/2012 lk Remit payment to address above and make check payable to: M Initiative Foundation �+ � for 1h tons ul Pur oses Ossl A Y J Account 0: 402 -4020 Amount; $2,200. Route CoRy to Finance Assistant o� a ►nfnf. Energy Always There.® QUESTIONS OR COMMENTS? CenterPoini Energy PO BOX 1144 MINNEAPOLIS MN 55440 -1144 (Address not for bill payment) Monday - ftiday Call S a.m. - S p.m Gill info 612 - 321 -4939 Ce nterPolntE nergymom DIDYOU KNOW? Your account Is ready to view noun. Register for free online account actress. View balance, usage history, make an online payment, view recommendations for saving energy and money with My Energy Analyzer, and much more. Register at ConterPointEnergy.com/ rnyaccountonline, Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 9429449 -3 Billing date 01/0212010 Date due 01/30/2013 Total amount due $ 12.82 ACCT SUMMARY Gas oharges Previous balance $12,82 Payment 12120/2012 _._ -12,82 Balance forward $ 0,00 Current billing 12,82 Total amount duo $12A2 SERVICE ADDRESS 202 Pino St Monticello MN 1563B2.8 565 YOUR GAS USAGE MOW #MIW29312 @67 32 Day billing period 11129/2012 to 12/31/2012 Current reading 12/31/2012 5369 Previous reading 11/29/2012 5369 Metered usage 00 ccF X Therm factor of 1.001 to - Therroo ueod h 32 days e 0 Next meter reading 01/29/2013 Next billing date 01/31/2013 YOUR BILL IN DETAIL Cum /Ind Firm Rate Basic charge $12,00 Dellvery charge 0.Q0 Darnuplino ad ustment 0,00 Gas AffordabllIty PIRG 0.00 State sales tax 0.82 Total current charges $12,82 Page 1 Of 1 Avg daffy temp: Thte perlod this year 24 °F; this porlod last year 26 °F, /i .r` rr1F Mali this Portion with payment. please do not UMude lotiers or notes �VPill6�irl�IrA {r Energgy Account number 9429449 -3 AlwgsThore: pate due 01/30/2013 Total amount due $12.82 CENTERPOINT ENERGY Amount paid PO BOX 1144 MINNEAPOLIS MN 56440 -1144 CENTERPOINT ENERGY PO sax 4671 HOUSTON TX 77210 -41371 loll III " I III IIr III III 11 1,1111111111111II.I111111hI111111 h4r1II 00018670 01 AV 0,3601 THE CITY OF MONTICELLO ECONOMIC DCVI= LOPMENT 505 WALNUT ST MONTICELLO MN 156362.8821 mpoPrlllll till` oll�Il1l�rrlh�IllrII�IIIII�IIIIIIr�llplrull 034nC174932054 00720000094294493oannnnon ,282nnOOCI00128290 Point. qw Energy Always There' QUESTIONS OR COMMENTS? CenterPoint Energy PO BOX 1144 MIAINEAPOLIS MN 55440 -1144 (Address not for bill payment) Monday - Friday Call S a.m. - 5 p,m. Bill into 612 - 321 -4939 ContorholmEne rgy.com Your account is ready to view now, Register for free online account access, View balance, usage history, make an online payment, view recommendations for saving energy and money with My Energy Analyzer, and much more. Reg ister at CenterPointEnergy,com/ myaccountonline. Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 9429448 -5 Billing date 0110212013 Dale due 01/30/2013 Total amount due $140.49 ACCT SUMMARY Gas charges Previous balance $86.77 Payment 12/2812012 -85.77 Balance forward $ 0,00 Current billing 140,49 Total amount due $140.49 SERVICE ADDRESS 206 Pine St Monticello MN 55362 -6665 YOUR GAS USAGE Meter # M113802312888 32 Day billing period 11/2912012 to 12101/2012 Current reading 12/31/2012 516 Previous reading 11129/2012 327 Mete red usage 10 CCF H Thorro factor of 1.01110 t 7hotme used in 32 deye 189 Next molar reading 01/2912013 Next bluing date 01131/2013 YOUR MILL IN DETAIL Comlind Firm Rate Basic charge $12.00 Delivery-charge 1139 therms @ $0,15661tri-IM 29.60 Deoougling adjustment 189 Therms @ $0,00039tTHM 0,07 Gas Aflordability PRO 189 Therms @ $0,00490/THM 0.93 Cost of gas, 189 therms @ $0.47011 /THM 88,85 State salBs taK 9.04 Total current charges $140,49 a �o Avg dolly goo use; This period this yr 5.91horms; ads Period last yr 9.7 Illorms Page 1 of 1 Avg dory tamp: This period [his year 24'F; this ported last year 2s'F. CenterPlvin% Mall this portion %a payment Please do not lncludo letters or notes �qg Account number 9429448 -5 hate due 01130/2013 Total amount due $140.49 CENTERPOINT ENERGY Amount paid $ ... . PO BOX 1144 MINNEAPOLIS MN $5440 -1144 CEN7ERPOINT ENERGY PO t3OX 4671 HOUSTON TX 77210 -4671 111rIIrlllll° firllllujh° i�illlfl °lllll Jill Jill 11lihlllllllrll1 00916669.41 AV 6.3641 THE CITY OF MONTICELLO ECX)NOMIC DEVELOPMENT 506 WALNUT ST MONTIGELLO MN 66362 -6021 llltlli� °illllllil °ill'llll °° ell °" Ell °I� °Iilll(rBllill °'llll�rlill 0340074932047 00 720 QDD0942 944855000000140490CIDOU01404930 CenterPoint. Energy Always There QUESTIONS OR COMMENTS? CenterPoint Energy PO BOX 1144 MINNEAPOLIS MN 55440 -1144 (Address not for bill payment) Monday - Friday Gall 8 a.m. - 5 p.m, 13111 info 612- 321 -4939 CentsrPointEnergy,com DIDYOU KNOW? Your account is ready to view now. Register for tree online account access. View balance, usage history, make an online payment view recommendations for saving enorgy and money with My Energy Analyzer, and much more. Register at Centeri'o fntEnergy ,co m/ myaccountoriline. I'Mmiff" am= Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 9429460 -1 Rifling date 011/02/2013 Date due 01/30/2013 Total amount due $ 275 -31 ACCT SUMMARY Gas charges Previous balance $177,10 Payment 12/2812012 • 177,10 Balance forward $ 0,00 Current billing 275.31 Total amount due $275.31 SERVICE ADDRESS 112 E Broadway St Monticello MN 66362 -4654 YOUR GAS USAGE M919r # Ml 9909103487 32 Day billing period 11/29/2012 to 12/31/2012 Current reading 12/31/2012 1949 Previous reading 11/29/2012 1560 Metered usage 309 CCPXThorm factor all 1.00114' =Therms used in 02 days 389 Next meter reading 01/29/2013 Next billing date 01A[112013 YOUR BILL IN DETAIL Cem/tnd Firm Rate 8asio charge $18.00 Delivery charge h 989 thorms $0,16403/THM @ 59.92 Decoupling adjustment 389 therms 0 - $0.01313/THM -5.11 Gas Allordabllity PING 389 therms @ $0,00490/THM 1,91 Cost of gas* 389 therms @ $0,470131THM 02.08 State sales tax 17.71 Total currorN chargos $275.31 2013 N Aye dally gas use; TbIs period this yr 12.2 therms; thlo period lael yr t1.9 thorms Page 1 Of 1 Avo4dy Imp: This peflsd thle year 24'F; He period last year x9° P, t r uAuirrl. Mail this putton with paymwL Plaaea do not inhale lenam nr neue rff Account number 9429450 -1 n1wW^ThPAe pate due 01/30/2013 Total amount due $ 278.31 CENTERPOINT ENERGY Amount paid PO BOX 1144 MINNEAPOLIS MN 55440 -1144 CENTERPOINT ENERGY PO BOX 4671 HOUSTON TX 77210 -4671 Ill► 1111111- 11iI111111119111111I111111111111' 11-1111r1111111,1u 00010671 01 AV 0.8501 THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT 505 WALNUTST MONTICELLO MN 65362 -8821 11111111IIIII Jill III IIrIIII III IifIII1tllll1111 11111111111111 ,1111 0340074932062 007200 00094294 50140110BOU27531110BOU0275AI50 r11► a � i f� �n N /� Q �syu N � o � qq � N 0 P-1 C o 0 O 064 0 O z u W Q 'l1 O t V W Q bI d as �d C z-. C 0 u �i ,nN o a N O 00 a G� O O O N N N�y N 0 N 4d O O � p q Q1 !j N FQ'Uhji w v� F4 a OO d O U U rx1 W 6 b T � N N M N N N N [f M N 'CJ W w° .'n M� 0 F� E� x u a, u� M O N ti p H �n N /� Q � .M- Q N � o � qq � N 0 P-1 C o 0 � U 0 O 064 0 O z u W Q 'l1 O t V W Q bI d as �d C z-. C 0 u �i ,nN o a N O 00 a G� O O O N N N�y N 0 N 4d O O � p q Q1 !j N FQ'Uhji w v� F4 a OO d O U U rx1 W 6 b T � N N M N N N N [f M N 'CJ W w° .'n M� 0 F� E� x u a, u� M O N ti p H --- Anierftide (I INVOICE i Page I of 1 6500 Saukview Drive Customer Number: 220625800 St. Cloud, MN 56303 -0804 Account T)rpe: Charge 0 Invoice Number: 2200303146 ~" Ph: (320) 251 -2525 T+x: (320) 253 -7904 Invoice Date: 10111712012 lamail: aoot=22@amef1pride.com ameripride,com Route: 12 GARY STEIL ...�... Service: FAW - WE Deliver To: Bill To; �— CITY OF MONTICELLO CITY OF MON110ELLO DELMRY ACCOUNTS PAYABLE 202 PINE ST )BROADWAY PLAZA MONTICELLO MN 55362 305 WALNUT STREET STE 1 0 MONTICELLO MN 55362 01007 USA ASK. YOUR CSR ABOUT OUR FULL LING OF RESTROOM SERVICES Del Qty Line Type Bank I Itow Description Locicer Emp Natue Emp 0 Inv Bill Qty Total SACS BATCCEL Ali DISP BATTERY S 0 0 010011 EVEXC Rent CDEND'WI> ROLL TOWEL CADINE 2 2 2.041 10 Runt CT40WRT ROLL TOWEL WIHTE 20 10 39,541 Sales D141012 TORK ROLL BATI•I TI 0 0 01007 EVEXC Rent D209305 DISP T T SCA 2 2 0.117 EVEXC Rent DISIlARL DISPENSER AIR FRE 2 2 24,367 2 Sales GSCNMAN GRNISCENT MANGO A 0 2 0.001 EVEXC Rent YJN30FM MAT 3X 10 'HONEYCOM 1 1 16.961 Sur Chg 22SPOS SERVICE CHARGI3 81951 Subtotal '91.96 ftnature Initials w DEL THRU PIZZA FACTORY CLOSET Balance as of 1011712012 Tax 6,875% 6.33 Tottil,Doe: USD 98.29 Current 1 -30 31-60 Aver GO 9$,29 0.00 O.OU .. ; Please Remit Payment to: AmeriPricle Services, P.O. Box 3100, Bemidji, MN, 56619 -3100 within 27 clays Thank you .tor your busivessl MINNESOTA PETROLEUM SERVICE 682 - 39th Avenue RE Columbia Heights, MN 55421 Phone: (763) 780 -5191 Fax; (763) 7805472 Toll Free; (888) 797 -7677 www wpetro,com City of Monticello cb Bob Pascke 505 Walnut Street Monticello, MN 55362 Invoice I N O n N O_ W r VWi 1 u b W wr+ 0 C> d ON;, rte+ Q Cl ~ N CD CD � 3 11 U U N N .O`Wq� �IQWa� i� UN U N Vii N A U N V�Ni tJ[ t![ N N to N N N Vii 0 0 d O O N fg 1 n AL 0 V 4 W W W W W T 0. oo O O O 4 O O O O O O O wr+ 0 C> d ON;, rte+ Q Cl CD CD 3 11 U U N N W b J p h r r C O d O O � fg 1 n °z °z °z 0 V 4 °�° O O 0. oo o0 zz O O daa cr 1.f 0 oN a `c M r r r m w U o In cn CA CA o Gn Qp O O tl0 R4 G � > > > tl4 UG ti o' p' c, rn b O ro, O D O O o o p O O o O D O a Cl a a a Q o d1= R f-+ LA N 0 0 o O O O O O O C) O O wr+ 0 C> d ON;, rte+ Q Cl CD CD _� U U N N W b J O O C O O O O O fg 1 n 0 V 4 O O O F+ C+ O Q - - - C> Q 4o- P O N N N 0 0 V -4 41 4P W W oNo Uri A w bo W b oho V T N O N O A O A C k7 O d ON;, [ _� fg 1 n 0. O O cr 1.f 0 oN a `c U C k7 O d A ry IO rt b 0 fg 1 d A ry IO rt b 0 S % 2 S LA / Lh { / \{ / § $ ( k \ LA ° q § \ • ) & ? 3 § § > a n \ / � \ \ § § � � � - ■ E \ k ¥ ¥ $ ? © k k / CL 2 K M � + } , § § r ( Er ( ( ( ( 9 \ § \ § \ / A § \ § k \ § \ § 00 00 ) \ G w o o fo ] / } }\ ƒ { k \ LA \ \ \ CD / / 7 f t § j 4 \ k o o CN > \ o � . � CITY OF MONTICELLO VOUCHER Please complete, sign, and submit to Accts Payable by due date for check run. R Disb. Gk. Batch Pay by: VENDOR: 'Name Address 1 Address 2 city/svzip . ....... Statement/ la.voi cc No: DISTRIBUTION OF EXPENSE TOTAL: � 9 S w q APPROVED BY DATE, 4e voucherAs Prairie West Fray -as- you -go blalance District: 20 Payment to: Riverwood Flank /Linda Smith Original Amount 65,000.00 Interest Rate 81500% Payments Commence 811/99 Ending no Later Than 811118 Avaialbe TII; 40,00% Increment Total Balance Dale Received Principal Interest Payment Remaining 12/31/1998 - 6,602.00 - 6,602.00 71,602.00 12131/1999 6,216.00 - 6,216.00 77,818.00 7/28/2000 - 3,902.00 2,853.00 -1,049.00 81,720.00 1111/2001 1,637.00 1,637.00 81,720.00 7/26/2001 - 1,981.00 3,406.,00 1,426.00 83,701.00 1/15/2002 2,039.00 2,039.00 83,701,00 711612002 - 2,236.00 2,904.00 668.00 85,937.00 1/1412003 284.00 2,030.00 2,314.00 85,653,00 7124/2003 - 1,338.00 3,993,00 2,655.00 86,991.00 1/2312004 418.00 2,569.00 21087M 86,573.00 7/2212004 - 710.00 4,145.00 3,435.00 87,283.00 112012005 152,00 3,709.00 3,861:00 87,131.00 7/21/2005 190.OQ 3,704,.00 3,894.00 86,941.00 1/19/2006 165.00 3,695.00 3,850.00 86,786,00 7/20/2006 1,597.00 3,688,00 6,285.00 85,1$9.00 1/18/2007 220:00 3,620.00 3,840.00 84,969.00 7/1912007 757.00 3,611.00 4,368.00 84,212.00 1/2812008 27.00 3,679.00 3,606:00 84,185.00 8/1/2008 922.00 3,856.00 4,778.00 83,263.00 1/9/2009 11,941.00 1,237.72 3,538,68 4,776.40 82,025.28 8/1/2009 11,967.36 1,301.11 3,486.07 4,787.18 80,724.17 1/1/2010 10,824.35 898.96 3,430.78 4,329.74 79,825.20 811/2010 11,994.18 1,405.10 3,392.57 4,797.67 78,420.10 1/112011 9,960.66 647.41 3,332.85 3,980.26 77,772.659 8/1/2011 10,436.67 868..93 3,305,34 4.,174.27 76,903.77 1/112012 8,623.41 180:95 3,268.41 3,449.36 76,722.81 8{,/g1„1J2�n0122 8,28{(8,,.08 3,�26p0,7J2 76,6�6+8,3y0 [54.61 ±3,3115M 811/2013 9,649.86 627.10 3,232.84 3,859,94 75,439,66 11112014 9,649.86 663.75 3,206.19 3,859.94 74,785.91 8/1/2014 9,649.86 681.64 3,178,40 3,859.94 74,104.37 111120/5 9,649.85 710,50 3,149.44 3,859.94 73,393.86 811/2015 9,649:855 74030 3,119.24 3,859.94 72,653.16 1/112016 9,649.85 772.18 3,087.76 3,859,94 71,880.98 8/112016 9,649.86 805.00 3,054.94 3,859.94 71,075.98 1/1/2017 9,649.85 839.21 $,020.73 3,859.94 70,236.77 81112017 9,649.85 874.88 2,985.06 3,859.94 69;361.89 1/1/2018 9,649.85 912.06 2,947.88 3,859.94 68,449.83 8/112018 9,649.85 950.82 2,909.12 3,859,94 67,499,01 Total (2,499,01) 119,203.42 116,704.40 S is Y 1 p Y N i 1 I !F[H 1 V I A I i I N LI S.I W G W �y N +W H I 1 1 N N U N q iJ F1 H N v lu ,y N p, N A+ N H u u U sl N �.j �I GS IID P `O h N C 9 W f i , W Ar �{a1{++.aa..n A*w yLN.11ww wu4W11�i. iW +wwwVx IH+N do P ap Aqa ndP as I 1 i ra ! 1 I 1 i w y Iwa nNf I, 'A W N m <�'g i I ! ill N :A Li IT IX Ilt >W 4 111 L1 W N N n W ial 41 Os W W .� 91 W 1 .a.aa+w e+ an Wabmt.mwl+w a.u�IN WW la'wJCO �>AOPH�,ewr� i � j '1 to W NASH 11 llNCdri n 3a RIp l�6tlb 0 P1JJ edtG oPp Po W P NlR Matt A�Imil ltn I Y I 1 1 3 i W µ I ! yl U! N N C 111 VF A W !3 N W� m o }Yj W R4 iY IS W µ V tll _Y i I 1 lww W wW W W pinA W Alrt l,i MN A VI ,F Ap N µtltlt W WOI WN ! I iIP lir A -IA W! P Ol 4 m ID Y N W r,>• 111 N N• P v q w -w +O 1fl w S1 45 Ip p� p >: I N I il u>, H'ww ewe. sl.a 1+W IpaaiAildc� °o eoo w wwwu Ws�PIR pLI Nm H i 1 l � i I I tl Itl M N � 63 N N 3 ' m w •. N u ?I 1a 1 I O b o nm o cai O 9 C la'• Q C a 0 .0- A A MM D d b IA P .WP, p •0 p 0 O a W b C o e Y! H M IX al N QI b5 V u p N N N N IsIW t3 nnn 36 P 6 a©Pm6 b a°PRP °o a oc,• • w ' an hoe iv 4;q er �PCa oq ad (] d W A Ei N b A 6 P O P p W W W g A P 4 P W a P Y N b Lnl G s 1 1 1 +3 W CMi VI LI AI Ili 1 N I io a'A o o 6 • • 6 p C O q q4 CtYwbo u,c pq oG cm nd p6 D SiQ a pq P A C3 A p 0 6 4 G P P " 0 P R W q P O 0 0 O W U tl IG U a p i la l 3 1 1 1 1 1 t 3 I I A I O Q O b tl d m O d V e9 a 4P 9 o Q g A 4 n 0 O d r o c cbi b g O G q Cf 6g 1P PPpAAn A Q p P a d a o O q GfO P A aCSm d8 A •:PO 1'Ci l l > t ! f i H 3 l•u 6 e Pe ? 4P 0 P q 6 6 P 6 n D O n A d A tl a 1 0 l tlabb Ogtld P AaR9 aPp A 130 P'W n 3 +) I I 1 1 � 1 I i 141 l� 3 R O Q C O P o V p j C O ubi V n V A o n a ; li 1 m t „has: 4H]] �1 a a P Y a1 P C• A I A N L�j I S ZO Al W b R i l0 I P tl p A i W N W SQ W W I N N O 1 KN p W p A V N H Ip W A r � 3 3 I 1 1 I �# I Y CS i I j 1199 H m i tl N 41 m W i w i ta °c bw w u i I N p I W tl tl O b W +7 R D O A O V! 1 1 ! + 1 W i , .•i W. 'fn .W I iw wo Inav �3 pl -J W N w W 1 •0 P 1 P Q W CpR V Y 14 0 0 d i{I 1 I W L}, J r i Y � o � 11A55 IUpS aµi i S+ W a+ w P A q m H�mtlN1 N J W 4 W 1+ N Yom” i'9 a A 57 A O 2 M aAOOOOtY N a p W v w ypJ� w � l6 a y W 71 ® Su W � W LI YF Q N IT h� W W N tW3 6 b o p m 3�IJ a E 13n+wS� wa c o o WW b ! w lJ iml P !low 1.011 C:. ka S 1 p� 1 INA �niH11 n A I ¢ O }tl++ IbI��1 Ibi1 M 'r1 M N 1 iN+l W W p G IS N p 1 N +M�l W �1w11 e: I wCI HI ,.I i � vv sN i. u w.1 19 W P 1 M JJ+1 'P •S N lb IrI ww m 1� i� lyyAl1m u I wwfwf�lIIw i 1 I 1 I I 1 3 I 3 N H 3 I Y i -A tll. W FI M I nm?•GS i p W b ts fpm SxR W.p 4 q y1 .1 ID iAb iO � J 6.O d W a�pppp O: � LP`I i N VI C! b G b N 1p o a U Al F; Li NON 1 6l P !0 a A �3 P D' i I I i 1 I 1 �1 w i y�S11 I w N N L Y Y O 4 tl .fin d - a i Y lM I M W m..9A.. w- 'V' "R"'W I I 1 1 f 1 l 1 I �1 F+ 1 F N .£it w n w 1. W e- ' Y N1 3A F3 N.W Yf N £il Sa i+ p� 1 UI IfF Ul :yl A pl -H a if N iJ +ti it b 1+ a 91 LI b• 1.1 1 91 4i 01 -a I o y IN1I1 A appp -,n s+ a , o n 1 J V. J W F+ • w 1 3 11010, 1 Y' b J !A W itWv- w �'%r pia R W a�lnc W tc f •i w i 1 SWINON Invoice submitted to: City of Monticello Jeff O'Neil, City Administrator 505 Walnut Street Monticello, MN 55362 Wilson Development Services, LLC 510 North Chestnut Street, Suite 200 Chaska, MN 55318 952.448.4530 800.448.4630 FEIN 20- 1829971 Invoice Date Invoice Number ,Last Bill Date December 18, 2012 23019 11/14/2012 JAN - g 2013 �. 1 In Reference To: Acquisition & Relocation Services - Montgomery Farms Professional Services _ Hrs /Rate Amount Barbara Lee's Dance Studio 11/19/2012 JFC Time 0.40 38.00 Phone call with tenant regarding advertising claim, Discuss with Dan 95.00 /hr Barbara Lee's Dance Studio DIAW Time 0.10 11.00 Disc additional advertising claim with John I10.001hr Barbara Lee's Dance Studio 1 1 12612 0 1 2 JFC Time 0.40 38.00 Review tenant advertising contract and update file for replacement 95.00/hr site search fees. Barbara Lee's Dance Studio SUBTOTAL: [ 0.90 87.00; BL Used Bike Shop 1111912012 JFC Time 0.40 38.00 Discuss tenant with Leah. Phone call with tenant to arrange meeting. 95.001hr BL Used Bike Shop LGT Time 0.20 19.00 Call from Rota regarding he wants to meet and discuss relocation 95.00 /hr benefits with reactor. Discussed with Dan, John to meet with Rob BL Used Bike Shop City of Monticello Monticello- Montgomery Farms Page 2 Hrs /Rate Amounk 11/19/2012 DHW Time 0.20 22.00 Discuss with John regarding has replacement site. Obtain move cost 110.001hr BL Used Bike Shop 11/20/2012 JFC Time 0.40 38.00 Prepare for meeting with tenant and Jim Peterson - Bullseye properties 95,00 /hr BL Used Bike Shop 11121/2012 JFC Time 3.50 342.00 Meet with owner and Jim Paterson - Bullseye Properties in Monticello. 95.001hr Discuss relocation plans with Dan BL Used Bike Shop 11126/2012 JFC Time 0.30 28,50 Phone call with tenant regarding questions about personal property 95.00 /hr BI- Used Bike Shop 11/27/2012 JFC Time 0.50 47.50 Phone call with tenant regarding questions about personal property. 95.00 1hr Review tenant property value and replacement cost BL Used Bike Shop 11/28)2012 JFC Time 0,40 38.00 Phone call with Jim Peterson of Bullseye Properties regarding build 95,001hr out and rent at proposed new site. BL Used Bike Shop 11/29/2012 JFC Time 0.50 47.50 Discuss relocation with Dan. Phone call with tenant regarding 95.00 /hr contractor to estimate dismantling of skateboard ramps BL Used Bike Shop 11/3012012 DHW Time 0.60 66.00 Meeting with Bike Shop owner - pictures of skateboard ramp - discuss 110.00 /hr move and Business Re- Establishment for increased rent. Mil.= BL Used Bike Shop SUBTOTAL; [ 7.10 686.50; Pizza Factory (Ekegren) 11/2/2012 DHW Time 0,50 55.00 Call with Sandy at Chamber of Commerce - discuss available sites 110,00 1hr and relocation process, Pizza Factory (Ekegren) 11/15/2012 DHW Tirne 0.30 33.00 Call with Angela - discuss extended occupancy, insurance, rent and 110.00/hr keys Pizza Factory (Ekegren) City of Monticello Monticello- Montgomery Farms Page 3 Hrs /Rate Amoun 11/2112012 JFC Time 0.40 38.00 Meet with Jlm Peterson- Bullseye Properties in Monticello regarding 95,00 /hr business relocation, Discuss relocation with Dan Pizza Factory (Ekegren) 11/2312012 DML Time 0.50 37.50 Type memo to Angela Schumann regarding Pizza Factory revised 75.00/hr lease and draft letter to Mr, Ekegren. Type DRAFT letter to Mr. Ekegren regarding continued occupancy, lease, rent, etc. Scan lease with handwritten revisions and send back to Angela with memo and draft letter Pizza Factory (Ekegren) DHW Time 2.00 220.00 Revise lease and draft letter to Gary Ekegren. Memo to Angela 110,00 /hr Schumann regarding revised lease and draft of letter (included for review) Pizza Factory (Ekegren) 11/26/2012 LGT Time 0.30 28.50 Searched for business entity on Security of state website - unable to 95.001hr find. Pizza Factory (Ekegren) 11/3012012 DHW Time 0.50 55,00 Stop at Pizza F=actory - Gary out; brief meeting with Angela & Jeff 110.00/hr Pizza Factory (Ekegren) SUBTOTAL: [ 4,50 467.00; Wong, Fu- Lakeland Dental Associates 111112012 DML Time 0.10 7.50 Type brief email to Morphew advising Dan not available on Friday to 75.00 /hr do walk -thru. Wong, Fu- Lakeland Dental Associates 11/15/2012 DML Time 0.20 15,00 Type memo to Morphew asking if 11/30 works for walk -thru7 75,00 /hr Type email response to Morphew regarding preparation of walk -thru - be able to Identify substitute equipment items to be estimated separately Wong, Fu- Lakeland Dental Associates DHW Time 0,40 44.00 Gail Dion at All Furniture - LM 110,00 /hr Call Jeff Johnson at Berger Transfer Call with Morphew - confirm time Wong, Fu- Lakeland Dental Associates City of Monticello Monticello- Montgomery Farms page 4 Hrs /Rate Amount 11/21/2012 DML Time 0.10 7.50 Type brief email response to J. Morphew confirming 12 noon on 11130 75.001hr for walk -thru Wong, Fu- Lakeland Dental Associates 11/30/2012 DHW Time 3.00 330.00 Meeting Steve from All Furniture regarding walk -thru for move 110.00 /hr estimate with attorney Morphew Wong, Fu- Lakeland Dental Associates SUBTOTAL: [ 3.80 404.00; z- Project Management 11130!2012 DML Time 1.96 147.00 1111 - 11130, 2012 Consultant entries recorded to database for 75.00/hr client/case history, status and file maintenance /backup. z- Project Management SUBTOTAL: [ 1.96 147.00' For professional services rendered 18.26 $1,791.50 Additional Charges: QW /Price Wong, Fu- Lakeland Dental Associates 11/29/2012 DHW Mileage 112 62.16 Mileage- - Meeting forwalk -thru 0.56 Wong, Fu- Lakeland Dental /associates SUBTOTAL: [ 62.16; z- Project Management 11/21/2012 JFC Mileage 102 56.61 Mileage- to Monticello 0.56 z- Project Management 1 1 13012012 Copies- Internal 97 14.55 Copies -1111 - 11130, 2012 0.15 z- Project Management SUBTOTAL: [ 71.16. City of Monticello Monticello - Montgomery Farms page 5 Amount Total costs $133.32 Amounfi For professional services rendered 18.26 $1,924.82 Total amount of this bill $1,924.82 Previous balance $1,08ZOS 12.11112012 Payment - Thank You: Check No. 109786 ($1,082.05 Total payments and adjustments ($1,082,06 Balance due $1,924.82 son Invoice submitted to: City of Monticello Attn: Jeff O'Neil 505 Walnut Street Monticello, MN 55382 Wilson Development Services, LLG. 510 North Chestnut Street, Sulte 200 Chaska, MN 55318 952.448.4630 800.448.4630 r FEIN 2e- 1629971 y 2013 Invoice ` Invoice Date Invoice Number Last Bill Date December 18, 2012 23033 In Reference To: Acquisition and Relocation Consultant Services Cruiser Properties Professional Services Cruiser Properties 1112812012 DHW Time Call with Jeff O'Neil regarding relocation eligibility MTF eG& PO Cruiser Properties 1'12- SUBTOTAL: zProject Management 11/3012012 DML Time 1 111 - 1 1130, 2012 Consultant entries recorded to database for clientfcase history, status and file maintenance /backup. tA 0114T zProject Management Vfto-tA� SUBTOTAL: For professional services rendered For professional services rendered Balance due Hrs /Rate Amount 0.20 24.00 120,00 /hr [ 0.20 24,00; 0.10 8.50 85.001hr [ .0.10 t3,5a; 0.30 $32.50 0.30 $32,50 $32.50 *Carlson Building Services, Inc Invoice BILL TO SHIP TO City of Monticello Monticello Building Economic Development Authority 202 Pine Street 505 Walnut Street Monticello, MN 55362 Monticello, MN 55362 Net 15 DATE INVOICE NO. P.O. NO. TERMS DUE DATE SHIP DATE 12/15/2012 42774 Net 15 1/1/2013 12/15/2012 ITEM DESCRIPTION QTY RATE AMOUNT jot Regular Monthly Services for January 350.00 35n.00T ) EC i 9 2012 Thank you for your business, sales Tax (6.876%) $24.06 Total $374.06 4111 Mackenzie Court NE, Suite 100, St, Michael, MN 55376 (763)497 -8020 (763)497 -8564 fax www.carlsonbidgsoxvioes.com 1 >rA RLNON BUILDING SERVI CUSTOMER City of Mcmtioello $00n0micDevelopment Authority 505 Walnut Street Monticello, MN 55302 Inc. CreditMemo .S JAN (] ° J 20�j 13 F:.. 1 4111 Mackenzlc Court NB, Suite 100 • St. Michael, MN 55376 (763) 497 -8020' Fax (763) 497 -8564 DATE CREDIT NO, P,O, NO. PROJECT 1/4/2013 43035 DESCRIPTION QTY RATE AMOUNT Credit for rill but one day of Setvice. fit Jaiwary (invoice 323,08 .32108T #42774) Sales Tax 6,875% -22.21 �otal $- 345.29 4111 Mackenzlc Court NB, Suite 100 • St. Michael, MN 55376 (763) 497 -8020' Fax (763) 497 -8564 0 �L oN r ��veLaPnnErrr sEmnees January 14, 2013 City of Monticello Attn: Angie McIntire 505 Walnut St. Monticello, MN 55362 Re: Broadway Plaza Building Good .Clean Fun Tattoos Dear Angie, OFFICE 952.448.4630 800.448.4830 FAx 952.448.4878 WILSON DEV51 O@AOL.COM 510 C H ESTNUT STREET, SMITE 200 CHASKA, MINNESOTA 55818 Enclosed is an invoice in the amount of $100.00 for a move estimate done at Good Clean Fun Tattoos in Monticello to determine the amount to be paid for a self-move. Please issue the check as follows to: Berger Transfer & Storage in the amount of $100.00. Please send me the check to me when ready and I will mail to the vendor. Sincerely, n Callender Wilson Development Services LLC ------------------ Invoice To ---------- WILSON DEVELOPMENT SERVICES ATTU: STEVE SCHMIEG 510 N CHESTNUT STREET STE 200 CHASKA, MN 55318 ------------------ shipper ---- --- - - - - -- WILSON DEVELOPMENT SVCS 510 N CHESTNUT ST, STE 200 CHASKA, MN 55318 None Make Checks Payable & Remit To Berger Transfer & Storage NW 7215 PO Box 1450 Federal Id# 41- 0677589 btinneapolis, MN 55485 -7215 (651) 639.2260 Cust #: 172967 Load Date:1/11/2013 Tariff: De1v Date:1 /11/2013 Section: BOL: Contract: PO #: ------- ----- - -- - -- Consignee -------------- WILSON DEVELOPMENT SVCS 510 N CHESTNUT ST, STE 200 CHASKA., NN 55318 ------------------------------------ NOTES ------------------------------------------------- ---------------------------------------------------------------------------------------- Charge BID: GOOD CLEAN FUN TATTOOS 100.00 --------------------------- ACCESSORIAL CHARGES------ -------- ------------------ --- -- - -- ---- Description ----- - - - - -- - -- Qty -- -- _ - -- Ram - - - -- Charges ORIGINAL Totals: Pay This Amount: Late Payment Charge After 30 Days Total. With Late Charge : Charges 100.00 100.00 10.00 110.00 A G E N T A L L I E D V A N L I N E S TERMS OF APPLICABLE TARIFFS AND BILL OF LADING APPLY. SUBJECT TO TERMS AND CONDITIONS ON THE REVERSE SIDE. BEREER Me "NQ FOR War fry s) January 11, 2013 John Callender Wilson Development Services 510 North Chestnut Street, Ste. 200 Chaska, MN 55318 Mr, Callender, Thank you for giving Berger Transfer the opportunity to give you a Bid for the relocation of your client Good Clean Fun Tattoos located in Monticello. Berger would handle all loading, moving, and placing of items that will be moved. Berger is not responsible for any electrical or plumbing disconnects or reconnects. If you have any questions call me at your earliest convenience so that we can discuss them. It is my purpose at all times to render a thoughtful and considerate move that will merit your highest esteem. Sincerely, Berger Transfer & Storage, Inc. Jeff Johnson Move Consultant Office & Industrial Division Agant for Plied van Ur3es" BERSER fV7OVfNG FORWAND }} Good Clean Fun Tattoos Relocation Bid 1111113 Labor & Transportation Main Move One Supervisor $ 41.00 per man hour x 7 hours $ 287.00 One Driver $ 41.00 per man hour x 7 hours $ 287.00 One Mover / Installer $ 3 5.00 per man hour x 7 hours $ 245.00 One Truck $ 25.00 per truck hour x 7 hours $175.00 $ 994.00 Materials 20 Boxes $ 2.50 each $ 50.00 1 roll tape $ 5.00 6.875 % Tax $ 3.79 $ 58.79 Material Delivery $ 198.00 Total Bid $1,250.79 INSURANCE Under our complete insurance program, we carry all necessary requirements pertaining to liability, property damage and bodily injury. PROPERTY DAMAGE (Non -Auto) $1,000,000.00 per accident BODILY INJURY (Auto) $1,000,000.00 per accident UMBRELLA LIABILITY $9,000,000.00 per accident A Certificate of coverage can be furnished, if required, naming both origin and destination buildings and their prospective managing companies. kE.. P. WforNWVan nee" SERSER MOVING; FOF7WARM) LOCAL OFFICE & 1NDUSTRML PROTECTION PLAN Please sign and date one of the following; Basic Liability $.60 per pound per article. Under this protection your goods are covered up to $.60 per pound (of weight) per individual item. There is no charge for this coverage. Signature: Date: Replacement Value Protection This option covers your goods for replacement value. This type of coverage has a minimum declared value of $10,000.00. This coverage is available with a $0 or $500.00 deductible. $0 Deductible available at $8.00 per $1,000.00 declared value. $S00.00Deductible available at $5.00 per $1,000.00 declared value. Signature: Date: Declared Value: Premium: As always, your relocation consultant will be glad to answer any questions regarding this or any other moving matters. When declaring the good's value, you must use the full value of all items to avoid an under insurance penalty. Berger has the option to repair or replace damaged items, ACCEPTANCE OF PROPOSAL This proposal is based on the information provided by your company. We have developed a move plan we believe to be cost efficient based on this information. It is important that we reserve equipment and begin working with you to finalize the move plan. Payment terms are net 30 days upon receipt of invoice. Late payments will be assessed 2% interest per month (including partial month), plus attorney fees and costs of collection. The estimated price, specifications, and conditions are satisfactory and accepted. If changes in the move plan occur, the company representative will keep Berger advised. Carrier Representative Company Representative Date of Proposal Date of Acceptance r ILSCJI� DEVELOPMENT SERVICES January 18, 2013 City of Monticello Attn: Angie McIntire 505 Walnut St. Monticello, MN 55362 Re; Broadway Plaza Building Good Clean Fun Tattoos Relocation Moving Costs Claim #1 Dear Angie, OFFICE 952.448.4630 800.448.4630 FAX 952.448.4676 WILSON[) EV510 @AOL.COM 510 CHESTNUT STREET, SUITE 200 CHASKA, MINNESOTA 55318 Enclosed is a relocation claim in the amount of $2,500.00 for this tenant's expenses searching for a relocation site for the business, along with a claim summary. Please issue the check as follows to: Good Clean Fun Tattoos in the amount of $2,500.00. Let me know when the check is ready so Jon Carpenter can pick it up at City Hall. Sincerely, Jo n Callender Wilson Development Services LLC KA Minnesota Department of Transportation V,2008f0l (0" MOVING COSTS "Important. Submit Prompffy After Move* Dccupanw (Days) ❑ Residence 0 Ad. Device ❑ Government 13 Other PP O.-C89 f3 90.179 mmao M Business 13 Farm ❑ Non-Profit )9(Advance Q Partial ❑Final Submitted Arnount$ Payee(s): Good Clean Fun Tattoos, Inc. District Approval: eta Agency Approval: Dist, S. P. Parcel Vale G.S. Job No. Date Application Approved: Fed No. County Wright Vendor No., Attn. Finance: (`�E. Acquisition, ❑ Pending 0 Accepted 0 Em. Domain Parcel Owner: Mail Check T% (Name ar Caption) City of Monticello ESA Addressee(s): Payee will pick-up at City Hall Parcel Addr.: 206 Pine St Mailing Addr.: City, State Zip: Monticello, MN 55362 city, state 1p: RELOCATION CLAIM ELIGIBILITY LOCATION PERSONAL PROPERTY MOVED TO Displacee Facility Name Name(s): Good, Clean, Fun Tattoos, Inc. andlorType: Occupancy Date: 912011 13 Owner IM Tonard Street Address: 9010 Quantrelf . e Ave. NE Eligibility Date-, 4113pI12 Acquisition Date* 6115/2012 (Notice Of Intent or Purchase Utter) (if determined, el8o'Fandlng°) City, State Zip: Otsego, MN 55330 Dates) of the Move: Begin: TBD End* TBD Name of Mover(s): FOR OFFICAL USE ONLY MOVING COSTS ❑ Residential Schedule Basis ❑ Receipts /Actual Cost ❑ Non-Residential Bid/Estimate Type Of Dwelling Residential Schedule Room Counts Residential Moving Costs by Schedule:.. ........... $ ❑ Apartment Dwelling Rooms ................. Residential Moving Costs by Actual Cost:.......... $ ❑ House Basement Count ................. Non-Residential Moving Costs by Actual Cost:.. $ 11 Other Garage Count.. .................. Non-Residential Moving Costs by Bid/Estimate: $ ❑ Furnished by Occpt Other Count ........................ Non-Res. Searching Expenses (Max. $2.500) $ 2,500.00 ❑ Furnished by Others Total Room Count............ TOTAL MOVING COSTS CLAIMED: ................ $ 2,000.00 Displacee Residency Certification: I attest under penalty of perjury, that, as applicable: 1) myself and my family are lawful citizens of, or aliens lawfully admitted for residence in, the United States; OR 2) myself and/or members of this partnership, association or corporation are lawful citizens of, or aliens lawfully admitted for residency and authorized to conduct business in, the United States, Claimant Acknowledgement 1, the undersigned, do hereby certify that the above Information is true and correct, and that any receipts or statements attached hereto accurately represent the expenses incurred. I further certify that I have not submitted any other claim for reimbursement of, or received payment for, any expense submitted with thls claim. OFFICIAL USE ONLY, (comments) Authorized Signature:7 Name (print): hn Carpenter Telephone: 763-295-3403 Date, Fed Tax I.C. or Soc. See. No.: MN State Tax I.D. No.: See Over for Instructions and Personal Property Acknowledgment Moving Costs Page 1 of 2 RL1 032 119/2013 Business Relocation Summary Good Clean Fun Tattoos MN DOT Clalm #1 (Moving Costs) 1117113 24.303 Related Expenses ITEM Previously Submitted Ts Submittal : Claim Amount to Date 24.301(g) Actual Moving Expenses - 1 Trans ortation of personal property >_ - 2 Packing, crating, unpacking, un- crating c� - 3 Disconnection, dismantling, etc. of personal property'' - 4 Stora a of personal property w wr - 5 Insurance for replacement value - 6 Loss of ro e!t , damaged, stolen F - 7 Other related expense �- - 11 Licenses, permit & certification 12 Professional Services Plan the Move - 13 Printed Material 1 signs ,. 14 Direct Loss -' - 15 Cost incurred in sale,._ -z U = - 16 Purchase of substitute property" 17 Searching for replacement x2,;50 „0 2,504.00 18 Low Value -High Value t - SuBTOTAL - 2 oa ao 2,500.00 24.303 Related Expenses a Utilities from ROW - b Professional feeldetermine suitability - c Impact Fees - - 4 SUBTOTAL - 24.304 (a) Business Reestablishment 1 jCode Requirements - 2 Modification to replacement property 3 Exterior Signa e 4 Redecoration/replacement surfaces - 5 Advertisement..3.`x, 6 Increased operational costs 7 Other F - Subtotal SUBTOTAL Maximum $50,000 TOTAL „',2;5(#0:00; 2,540.00 CITY Or MONTICELLO VOUCHER Please complete, sign, and submit to Acas Puyable by due date for check run. [X] Drib. Ck. BatGh Pay by: VENDOR: Name+ Address 1 Address 2 CitylsUzip statement/ hivoioe No: DISTRIBUTION OF EXPENSE; TOTAL I. vi APPROVED BY DATE; voucher.As St. Bons Pay -as -you jo District: 24 Payment to: St. Cloud Hospital Original Amount 440,000.00 Interest Rate 8,000% Payments Commence 811.101 Ending on Later Than 211126 Available TIF 90,000% Increment Total Balance Date Received Principal Interest Payment Remaining 7126/2001 23;597.00 17,433,00 41,030.00 416,40100 111.512002 24;374.00 16,666.00 41,030.00 $92,029.00 7126/2002 16,772.00 16;521.00 32,293.00 376,257.00 1/14/2003 17, 283.00 16, 010.00 32, 293.00 357,974-00 7/24/2003 13, 919.00 14, 351.00 28, 270.00 344, 065.00 1/2312004 14,508.00 13,762.00 28,270.00 329,547.00 712212004 (73.00) 11,083.00 11,010.00 329,620.00 12/3112005 5,140,00 13,185.00 18,326.00 324,480.00 /11912006 0.00 3,665.00 3,665.00 324,480.00 712012006 8,609.00 12,979M 21, 588.00 315., 871,00 12131/2006 5,355.00 12,635.00 17,990.00 310,516.00 1118/2007 21,588.00 13,366.00 34,953.00 288;928.00 7/19/2007 8,635.00 12,421.00 21,056.00 280,293.00 7/31/2007 8,900.00 12,156.00 21.056M 271; 393.00 1128/2008 9,265.00 11, 800.00 . 21, 056.00 262,138.00 8/112008 11,409.00 11,151.00 22, 660.00 250, 729.00 111/2009 25,067.00 12,531.14 10,029.16 22,660.30 238,197.86 81112009 26,930.11 14,709.18 %527.91 24,237.10 223,488.68 111/2010 261,930.11 15,297.56 8,939.55 24,237.10 208,191.12 81172010 24,078.90 13,343.37 8,327:64 21.,671,01 194.,847..76 1/112011 24, 078.91 13,877-11 7,793.91 21, 671.02 180, 970.66 8/1/2011 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 8/1/2012 23,866.06 15,376.612 6,102.83 21,479.45 137,194.25 4%112013 31W —15 f 7-M 21,479.45 1211202W 8/1/2013 23,866.05 16,631.34 4,848.10 21,479.45 104,571.23 1/112014 23,866:05 17,296.60 4,182,85 21,479.46 87,274.64 81112014 .23,866.05 17,988.46 3,490,99 21,479.45 69,286.18 1/112015 23,866.05 18,708.00 2,771.45 21,479A5 50,578.18 8/1/2015 23,866.06 19,466.32 2,023.13 21,479.45 31,121.86 1/112016 23,866.05 20,234.57 1,244.87 21,479.45 10,887.29 8/1/2016 23,866.06 10,887.29 436.49 11,322.78 0.00 Total 440,000.00 296,299.45 736,299.45 1314 � RN } i n us4S W Tcn a,aR I W � 4 4k N W a) h1+tL W N N W N p) N N W N 'E1 W� N N ��••;; N W N N N ��i W W� V g P I�, (1 O W II µv o war I;µn vis•Gva n�iwnRaaPOb'.a aan Vf ul Ih .ukm In ulP W mwN At N.a�N�'. �w mw,a �..'..ow mss+ rw v wio ',ym P -W InwRnir In %1 �! rocy W Wwir en vesmm-:W elwq A M P 4M1 W �y m r cl M d+ W P W f al N GI W W V N CJ Ih d• a e(.;; N it b =+ W N W T• P nl ',l '.F W Af 1iF p nl tJ (p GI R w A O W IP N In;m W W a. �ru � -N a NUt°lilaroa�m�a ml�n�m•�.r: °Rw v -mw n.wan�n °a o1Pi11°a�i '77++ N G m m W W 11 W'', tHi1 H W nS tlt U Vl' 111 Ul W P W W t4 W o P p N W RI 41 4i 41 bl W la 1., s Vi P W IP N W'}h}�, Abp �W1 +YQ Y�M.ii"N 0p�1 NWW MNN W Ayyl VF X1.1 R appt p -N M W fil .�i1 W: A �0. � ice. w W Q p Yjyp I�R W A bill W /7 VI N iil O N 3h Ol oNj P q W'P}, H n� J V W P 1 4 i 4i } iW.l 'W W IV pp dm+Y Wq L.N VNIpp UL V o P .p Q O b n a P YP.I G tl O O tl b C O g U q a q Oy A O C tl C c p o a p ip1• A N H 4 mm m N I �In u eao a I N i • g o Q a P 6 Q n Q R5 6 6 b P 4'N i 1 1 ' I 1 1 1 i w�I j 1 a W W 4, Vt VI U t 1 i a cf il c :a e o o a c P o o a 4 q a 4 C P a GI J P -P P P O b R b b W P a 4 4 1R aY a O d o Q W I • f i . I i 1 i I I I 1 I ' P P q o n n n LY ° tl Q a 4 4 6 qP P P O P� q� P'Q' •Q g fl b 4' a° it 0 0 i pn 1 p ti q o a 6 4 a a b d tl V (}'a tl tl R tl d P a _d V R a G•1 41 Kd tl n R ; d -' - i 1 1 , 1 1 I . • � 1 i N � P o q P P g a R a aq o° YS tl e 6 R o a .b b tl b O a a s Z W V p tl a P C1 P a tl l o i i I I 1 I s• i H 1 u. L. 4o o o °o a e° o a G qq. ] G © o© I n S� CI 4i tl Q g a 4 q o e p Q Q G L Q p o a q n o o V q i It s � FP rt t ,I f" fm V LL, Si f I I � I 1 i I 1 1 i e 1 1 m HA t �m m we W tl W V AI A Wit' �1 yyuu N m +Nia aaWYP 1p 4t W61 W, -4s Z. •N , 4 P b to k, 41 ",. I+.H >ti of a V'e b d H d N i°i 1 e I � i I I 5 I. e t I = S• ,p � V� w a W a� f i 5 � 1 W � i m e� yl ZIP. -a m i in o1 F p�q q s P N V.P.o r rr" Y � Of4 AM W L 1 1 I 1 W N I 1 W MiaY N q W� 1 kwJ u N q u m P bt� I1C1I1 r INC O Wtl Y i I sp °o ab bo is 64 C •b 6.6 W I CROCI I p �➢aQ �P W • 1 f i M ♦1 Gi µ I.M. I N 6 115 In �3 4� H �Wp � P o i 1, O f3 N o .1 !�] Irt n O O a 01 aG i.l iyin�m w qm � i wee a psi ii i .�wy P 6i pp m Vi �iq s W Hd W Gb V APS Q anQim^ ma ki w a 1wA tw,�1 j+ w p V tYNyy LM 1w�n 00 IN A W m tl v N Q PV G C p V `i t 1' i 0 WW Is H OR 1 Y' 4�R IiiGO�}d +a W 1 f I R4 1 4 ♦F a o a o o i W N M o d Ire 11� 1 1 W �t N'�1 ; H 0'1 yl • w,aP a I g,om a !�' Y�•1 Y W I V d� V tl c W Gd 49W A I }N•1 N W w U W W N r r P N w m a� i m� a a� �i• I 1 I f { H � w m m fHa C I 4Vi W p IP.I 1 win w is i �a -a o a w � Ix w!n lz s mam a a�� 1 lam Htl Nr I mmsa so to s+4, . I p� Ip !!IA W W W s5 qa VPI 1 H of q 1 +1 m,C IC b �I. V1 •1_ O O,t+ m. i �, M..G_la...is,..o, W - 1 I i i I i / I � I I I ay way qq H 1 I N 1��I p i a p ,1 u p la y dl M tl N i ONj a pW1 1 0 2 • N a a ld I �p�Umw��•Smw�wnvlalwmmWl�wGmgml CITY OF MONTICELLO VOUCHER Please complete, sign, and subrnft to Accts Payable by due date for check run.. [�d Disb. Cis, Batch Pay by: "VENDOR- Name Address 1 Address 2 City/ST/Zip Statement/ hwoice "Na; DISTRIBUTION OF EXPENSE TOTAL: i , APPROVED BY DATE: vouchor.xfs Front Porch Assoc. Pay -as- you -go District: 29 Payment to: Front Porch Associates LTID, /Michael Cyr Original Amount 220,000.00 Interest Rate 7.250 %n Payments Commence 811104 Ending on Later Than 211120 Available TIF 80,000 % Increment Total Balance Date Received Principal Interest Payment Remaining 7122/2004 (4,110.00) 3,865.00 (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 1/19/2006 (1,362,00) 6,932.00 5,570;00 230,154.00 7120/2006 3,614.00 8,34100 11,957.00 226,540.00 1/18/2007 2,688.00 8,212,00 10, 900, 00 223, 852.00 7119/2007 5,240.00 8,115.00 '13,355.00 218,612.00 1128/2408 1,452.00 7,926.00 9,377.00 217,160.00 8/1/2008 3,629.00 7,872,00 11,501.00 213,531,00 1/112009 18,949.00 7,418.70 7,740.50 15,159.20 206,112.30 81112009 15,390.35 4,840.71 7,471.57 12,312.28 201,271,59 1/112010 14,460.64 4,272.42 7,296.10 11,568.51 196,999.17 8/1/2010 13,081.79 3,324.21 7,141,22 10,465.43 193,674.96 11112011 13,081.74 3,444,67 7,02012 10,465.39 190,230.29 8/1/2011 12,064.21 2,755.52 6,895.85 9,651.37 187,474.77 1/1/2012 12,054.88 2,847.94 6,795.96 9,643.90 184,626.82 8/1/2012 11,134.04 2,214.51 6,69232 8,907.23 182,412.31 01/20 3 12 0274 3j4, 75=nm- �- ;642A& 10,082.19 178,942.57 811/2013 12,602.74 3,695.52 6,486:67 10,082.19 175;347.04 111/2014 12,602.74 3,725.86 61,356.33 10,.082.19 171,621.18 811/2014 12,602.74 3,860.92 6,221.27 10,082.19 167,760.26 1/1/2015 12,602.74 4,000.88 6,081.31 10,082.19 163,759.37 8/1/2015 12,602.74 4,145.91 5,936.28 10,082.19 159,613.46 111/2016 12,602.74 4,296.20 5,785.99 10,082.19 155,317.26 811/2016 12,602.74 4,451.94 5,630.25 10,082.19 150,865.31 111/2017 12,602.74 4,613.32 5,468.87 10,082.19 146,251.99 8/1.12017 12,602,74 4,780.56 6,301.63 10,082.19 141,471.43 1/1/2018 12,602.74 4,953.86 5,128.34 10,082.19 136,517.58 81112018 12,602.74 5,133.43 4,941376 1€1,082.19 131,384.16 1/1/2019 12,602.74 5,319.52 4,762:68 10,082.19 126,064.63 Total 93,936.37 193,761.45 287,696.82 titr tr 9 sa_ � . � M 1 r 1 1 1 1 1 i i 1 m i tl d g P oP a G p C l yyyy G1 !n 4l b. p tlr cY o e W W W W N -N N Ni16 -N 1 � N �i N N 4i ,•Np U N N N N N p N {Nu a L1 (� N I�i N N N '.S P� 3. tl yj_P IJ a O W I 3 +IW-i N t" „IM•rY }'H W1•tKWYNYN YMW IN+RR M f �i M` V 6l d L IM N N W p 1' • r N i^' W N W O � ' yy[[ 71ii�� S rp �s (n Ps bl rA [� f u V1 N Af Ei Nail 65 W as N N w a �e a H Lr w W w W W b y1 X W Ip N W C O A W W 1-I�e �. W to W u (d lV N '..r a A. m N aS W St7 i Yr Pra w'. sd �ATiAmm.tp k+m Nl+wb fi Xq si tM1 pigl9�q K.W ��PP Y. p:AN P AN M Af. IW✓ W ANOM W W bP W�Jltlmtlp Pd W TNtlk -Ad W �pH AIR Ip W A f In p .r i� 111 a a w W M W V r�J M m 'M.4 0 d w ftl ipp iq- W 6:4 C A ft a pd. 1n1bb 1 i• i k W 113 AI .UI Ui �'1 SII -+e {fir pp� N yk P1 1iN.p� 1}L[ N Of lff .tl N W Apµ W �{ N W.Q W 1I .4 P A d M * P A W 'Y bW W P A N N N q CI wW' O rill LI US .A � O IJ PA�7 �aA1 �•! .mod i�.t A I 4f h. W LA � y�W Lwi w1ar' Wo LYNN tNll ' W i a 0 Aa n as a o o a u o w o Po °o D o e aa° m a °a'n v��� v a dnro a Pn rwa do dd o i l - N W W ONI pNI PWW 9t 1 WsA � aoa � w P O P. a¢ o P• P P C A W p'C p N a o q' N N N -tl • O G O G N a p n l nc. ti© G9i Pagp . . lYeWMPQWPno °nuwwga aaq wo Pa i I W W W VI PI i �• *� �ii m ai � us w 1 >J 0 8 d• d P• b e” un P a o N 41 " . P P a. . G A tl" Q g P W 'n pA q G i! O d 7o V P W a g a 4 Q R Ci O O O O a O 6 p O O� ib K O m I i 1 1 N � A 6Y b C1.6 P W P 6o e P P o A5 u Q a 6 6 tl a a q d d" '6 6 • n P tl 4 P a P e 4 P 9 P P O e e n d R p Ci P rS b P a 4 P o a 1 - a ; 1 i - 1 1 1 1 w �A!] p Pn oriP� OO qqoP P PASAp py.p qly tl dn�qq pOq CO F qq 1 • g b 4 q A W Y/ O P A P W H W 6 C? P p o o n 4 g 9 —OP O O t3 1 1 1 �yy I r 11 r 1 rll'' i 3 I. 1 i 1 � 1 1 j x1 ' y i � H ' j I i I i I b p ONO .! 1�pm W. IT A M 111 I v L4 i E! 77ro7 ro .� k -F� �e VVVttt 1 .p yy�� spy h r v W G 9 "f N i W goyol� mam W 11�.��1� el �iN. "'e+ D ; 41 - ' N W W P S9 111 N Ip CI i •� N 4 F' l+ A• Al Vd rb G O P W 4 Ti Li i i iII w u m I � N 4ri 1mryry � W 1 Ip o O pi N E u � °o i w°a a`0i °e We ul�n °n °o °a P° 6Wi1 I +i W 01 W n a i 3 S s i 1 i i 1� 3 Y S'" i P1HRN p*F C 4ia I�� r� •11�tiy� m i H ! W m�awa � �Im wiil t� -4q4 1 M m A WY 10 b W b 1 X 4k W A. P b W k+rN � -p I ►mmlao 1 i i W 1D 4'P W` I 1p W O tl pf q .o K+ .v N POW •F R p D O X Iryym wr wwamre a�a i >M Nba wsp W i Ir r N A N W �i W �.SSa A 1 1tml1oa Awl' ` q GVY � �^ W A W p O INiI awi P G b O N � {u YR K YA'i 3 Pi W o o iw � I I j j l j � l [ u W N W Ish. W W W M 1 W N U e � N w a 1 a .a a l m ,i e• I Ib 1� r W {WPf11 p pp W i W � �W�r5r �W�r1 ; 111 '�TT N .L qq11 O O I N�fNil 'IDV YWi NG.p G na o f �mS d; pyiw P W N � 1 1 1 j i1 4 W P W jp po kNi 1G�. pN. � 4 1 Vl p � I.s p P ` Y PI P tap R p V b Q L} N W I yi 1'Ri� N Its ? 1a5 tl 59 .R C S i S I 1 I i 3 3 1 1 ' 1 I i 1 Am W w N f V wIp W u Nw 1 1 1 1 1 i ff f 1 1 yI f 1 1 yin in p /+ W W A N i33 !r CG � W W to qty Ll Q �S !µJ P i+ N Y W to r eW H OI Al N G5 -1 .J WHW A t W I �:', •. 0 4 i kn m 4i sU m V m u� Y �W Ul o i W 15 q Otl I -1 W 1.1 W .dim i n 5 1 OT`ry OF MONT CELLO VOUCHER Please complete, sign, and subm ft, to Accts Payable by due date for check run. Disb. Ck, Latch Pay by: VENDOR- Nance tai, 1 Address i Address 2 City/ST/Zip Statement/ Invoice No: DISTRIBUTION OF EXPENSE TOTAL:.f.�� APPROVED 13Y DATE. -4 /f il,_,< Cub Pay -as- you -go blalance District. 22.1 Payment to: BSF properties Original Amount 500,000.,00 Interest Rate 7,500% Payments Commence 111100 Ending no Later Than 2/1120 Avaialbe TIF 90.00% PID 155.076,001010 Increment Total Balance Date Received Principal Interest Payment Remaining 111/2000 0.00 500,000.00 8/1/2000 (30,808,00) 6,692.00 (24,116.00) 530,808.00 111/21701 (13,713,00) 6,192.00 (7,521.00) 544,521.00 8/1/2001 (7;845.00) 12,574.00 4,729.00 552,366.00 111/2002 (8,139,00) 12,574.00 4,435.00 560,505.00 811/2002 (21,019.00) 12.00 (21,007.00) 581,524.00 11112003 (21,807.00) 0.0.0 (21,807.00) 603,331.00 811/2003 (20,063.00) 2,562.00 (17,501,00) 623,394.00 1/1/2004 (20,815.00) 2,562.00 (18,253.00) 644,209.00 8/1/2004 (20,401.00) 3,757,00 (16,644,00) 664,610.00 1/1/2005 (21,166.00) 3,757,00 (17,409.00) 685,776.00 81112005 (20;899.00) 5,118.00 (15,481.00) 708,375.00 1/112006 (21,371.00) 5,118.00 (18,253.00) 727,746.00 8/1/2006 (20,522.00) 6,768.00 (13;754.00) 748,268.00 1/1/2007 (21,292.00) 6,768.00 (14,524.00) 769,660.00 81112007 (20,221,00) 8,637,00 (11,584.00) 789,781.00 1/28/2008 (20;981.00) 8,636.00 (12,345.00) 810,782.00 8/112008 (8,175.00) 27,228.00 24,053.00 813,937.00 119/2009 29,697,00 (26,295,00) 4,227.00 4,227.30 840,232.00 8/1/2009 31,728.16 (31,508.70) 6,055.34 6,055.34 871,740.70 1/112010 $1,728.15 (32,690.28) 28,555.34 28,555.34 904,430.98 8/1/2010 32,032.69 (33,916,15) 28,829.42 28,829.42 938,34714 11112011 32,032.89 (35,188.02) 28,829.42 28,829.42 973,535.16 6/1/2011 26,491.17 (36,507.57) 25,642.05 25,642,05 1,010,042.72 11112012 26,491.17 (37,876.60) 25,642,05 .25,642.05 1,047,919.33 811/2012 29,338.51 (39,296.97) 26,404.66 26,404.66 1,087,216.30 .4Z,1 W26;40 6 26,404:66 1,127,986.91 8/1/2013 29,338.51 (42,299.51) 26,404.66 28,404.68 1,170,286.42 1/1/2014 29,338.51 (43,885.74) 26,404.66 26,404.66 1,214,172.10 8/112014 29,338.51 (45,531:46) 26,404.66 26,404,66 1,259,703.62 111/2015 29,338.51 (47,238.89) 26,404.66 26,404,66 1,306,942.50 8/1/2015 29,338.51 (49,010.34) 26,404.66 26,404.66 1,355,952.85 1/1/2016 29,338.51 (50,848.23) 26,404.66 26,404.66 1,406,801,08 811/2016 29,338.51 (52,755,04) 26,404.66 26,404:86 1,459,556.12 111/2017 29,338,51 (54,733.35) 26,4014.66 26,404.66 1,514,289,47 8/112017 29,338.51 (56,785,86) 26,404,66 26,404.66 1,571,075.33 1/112018 29,338.51 (58,915.32) 26,404,66 26,404.66 1,629,990.65 811/2018 29,338.51 (61,124.65) 26,404.66 26,404.66 1,691,115.30 111/2019 29,338.51 (63,416.82) 26;404.66 26,404.66 1,754,532.13 8/112019 29,338.51 (65,794.95) 26,404.66 26,404.66 1,820,327,06 '11112020 29,338.51 (68,262.27) 26,404.66 26,404.66 1,886,589.35 Total (1,098,808.35) 606,119.17 581,963.47 0)Wty nw a 1911++ R6bor1 J HIBYala W1101IT t allnrYAuaiycrwREMmmEH TU SECOND MEET M.W. ROOM 730 WMAL0. MN 58313.1165 7W,837,7572 w 758.8tt4.19d0 rn+w.ovwshSl ma.ua Properly IDN; 8165 4i &Qp1Q16 Propertyr Tax Statement for Taxes Payable in 2012 Do6ortlIllow 60•11 Twy-M Rovga•026 MONTICELLO MALL Lptd101 Blook-001 You maybe eligible for one or oven two $ refunds to induce your property tax. REFUNDS? out the beck of ails stalamant to find aut how to apply. ------------------------------------------------------- PAYABLE 2012 2ND HALF PAYMENT STUB ""'Remy'" tF Itd6 BTA7&M&hT rORI+PCR7AlYf INtpNN7 gFl TO AVOID PENALTY PAY ON 04 BEFORE: OOTOUR 15 D I# y wr a 1drplpeNK ahaaged please aback this ban pad rl ,,w Ul0 dlpa6eun theback al d111 nb1n, PropprlylgNumber: R156A7f -WI010 ��-,.suE sE�Ot~l.P.u"11�6 �?C�1M{�t3N7t BUI Numbar. 22326 PENALTY: TOTAL: IuNumBar: .201307 ?erg MPB 8155- B76-oai010 &Wk CHl»CKS AAYABLE d 441L TO: Robart J 11I1vala LWdaht 0aunly Auditor(Traaburar 10 socund Skeet NX, R00111 2a0 Butialo, MN 55313 -1M BSF PROPERTIES INC WARK ROBERTSON PO BOX 690 aoruu xlfrks >u�p +. Scar a arairm,me3e.m n.rWa Dui. n Dan. $16 LAKE 4N 6544R990 PAYABLE 20121 5 r i1 .' PAYMENT YVENT STUB I'l."KIWADUGUAEH pF ltas a7n7en CHrfoft lMPtlr#rfJrr lnr ln7 Tel TO AVOID P94ALTY PAY ON OR BEFORE: MAY 1a T `i 11 ywlr addrxss ban Ooped plstsa 5hsak Us box and L j ahnwlhe ahahpe 041 to hack al lhle club. 'sA PrapSrty rb NamhSr. R 165-016-001010 ��}Ll,;�'A}� fltrt4llNi ;h � 131ENumhur: 223?0 PI1i$T'12TAxA'Mi3UN SUE• S 72 ; 6 IDNulnbw 201557 PENALTY; TOTAL: q MPN R188- 070 -001010 MAKE CHECKS PAYAt3L1w & MAIL TO: � a hors J 1lllVala Wr1g1111uUWyAUdIlwMoQ*urar s 10 sacznrl woof N.W., I2 Oal 2811 1luttalo, MN 553131195 .t^ BBF PROPERTIES INC %MARK ROBERTSON PO BOX 990 woaealt�unuwwwlra.0 xwuus.n amt+ +taaean� eo a wn«w,s. 610 LAKE MN 564404990 A CITY OF MONTICELLO VOUCHER Please complete, slgn, atidsuhmft to ,Accts Payable by due clime r check run, FXI Disb. Ck, Batch Pay by: VENDOR: Name vm�, " M6 Address I Address 2 City/ST/Zip Statement/ Invoice No: DISTRIBUTION OF EXPIKNSF, 5 �L , TOTAL: , 5,L, APPROVED BY voucher.xis DATE: Landmark. Square Phasf Pay -as- you -g© blalance Dlstddat 22.5 Payment to: Master's Fifth Avenue Original Amount I W000.00 Interest Rate 8.000% Payments Commence 811103 Ending no Later Than 211123 Avalalbe TIF 90.00% PI© 155.010.035130 & 155.010.036140 Increment Total Balances Date Received Principal Interest Payment Remaining 8/112003 0.00 185,000.00 1/112004 0.00 185,000,00 81112004 3,086,00 3,086.00 185,000.00 111/2005 3,084,00 3,084.00 185,000.00 811/2005 6,393,00 6,393,00 185,000.00 111/2006 6,393.00 61393.06 185,000.00 8/1/2006 6,830.00 6,830.00 185,000.00 1/112007 6,830.00 61830.00 186,000..00 6/1/2007 90.00 7,400.00 7,490,00 184,910,00 1/28/2008 94.00. 7,3913:00 7,490.00 184,816.00 8/112008 51106,00 5,106.00 184,816.00 119/2009 6,382.00 6,698.80 5,608.80 184,818.00 811/2009 6,364.90 6,674.41 5674.41 184,818.00 111/2010 6,304.90 5,674.41 5,674.41 184,8115.00 8/1/2010 6,266.02 5,639.42 5,539.42 184,816,00 111/2011 6;266.02 5,639,42 5,639.42 184,816.00 8/112011 5,668.11 5,101.30 5,101.30 184,816.00 1/1/2012 5,6138.11 51101.30 6,101.30 '184,816.00 :8111211`12 5,836.67 65 262;40 5,252.10 184,616.00 iM20:135133 ............ .. ,2526 X5,262.10 184,615.00 8/1/2013 5,835.57 5,25210 6,262.10 184,816.00 111/2014 5,835.67 5,252.10 5,252.10 184,816.00 8/1/2014 5,835,67 5;25210 5,252.1.0 184,816.00 11112016 5,835,67 5,252,10 5,252.10 184,819.00 81112015 5,835.67 5,252.113 5,25110 184,816,00 111/2016 5,835:67 5,252.10 5,252.10 164,61600 81112016 5,835.67 5,252.10 5,252.10 184,816.00 111/2017 5,835.67 6,252.10 6,262,10 184,815.00 8/112017 5,635.67 5,252.10 6,252.10 184,896.00 1/1/2018 5,835.67 6,252.10 5,262.10 184,896.00 8/112018 5,835,67 5,262.10 5,252.10 184,818.00 11112019 5,835.67 5,252,10 5,252.10 104,016.00 81112019 5,535.67 5,252.10 5,252.10 184,816.00 111/2020 5,835.57 6,252.10 6,252.10 184,816.00 8/112020 5,835.67 5,252.10 5,252.10 184,816.00 1/9/2021 5,835.67 5,252.10 5,252.10 164,816.013 81112021 5,8355.67 5.252.10 5,252.10 184,816.00 1/112022 6.8135.117 5,252.10 5,252.10 184,818.00 811/2022 3,835.67 6,252.10 5,252.10 184,816,00 11112023 5,835.67 5,252.10 5,252.10 184,816.00 Total 94.00 1'66,577.32 166,671.32 002 0 k Jr' V " &:k 11Yta'11 ���: T,Yv op RobertJ ftala WR afiTC6VNTYAUD1T0FVTREASURER TO AVOID PENALTY PAY ON ORBIFOREI MTOBEII14 105E'CONU4TREEr No. R0om2w q} 6llP1ALO,MH6,fi$4,4 �,f ah6w Uss thaapa on Iha bftA of W4 SMh. r&40ar.70r2wr0,.680•e514 � reed w+rww.xslghlnln.ua PTOpert16 8185.010.038130 = 1.11yoIONuraber; 211087 MASTE'$ FfFTN.AVENUE ING 18577' 1WHAVE 810 LAKE MN 55309 Property Tax Statement for Taxes Payable in 2072 neacriptlon$ Sect -11 Twp•121 Renga -25, ORIGINAL FLAT MONTICELLO Lot -013 01%k -030 You mey bo allglble for one or sysn two raiunds to radlrcq yourPMP0* 19x. Read the brick orthis stalama,414j W out how to apply, PAYABLE 2012 2ND HALF PAYMENT STUB reens111101roruAM101Thlss TATrMCHT10ftWPDRTANTfnr.RncaneN TO AVOID PENALTY PAY ON ORBIFOREI MTOBEII14 ( j0yaureedrosih0schznge6PhasechrscRUtlsuoxend it�_11 ahaw£7 a atsanpe on Ifio buk� of aii& aloe. �,f ah6w Uss thaapa on Iha bftA of W4 SMh. FUU.L— TA.x'3 MQLjNT r VropertylDNumben RlM,010 -5t30 ;BE F1Dif2;Tli�S` IrtOUNf °i?lf a Bal.NumborT 2008E PENALTY. 747A1; 4 ID Number: 211697 PENALTY: TOTAL, �i MI'N Ft166010-W6140 !WAKE CHECKS PAYAM6 & MAIL TO: 1 1tubort.J 101yola 1Nrfghl Courtly AudEorlrrealurer z 10Saaurd Sirdal N.W., .Room 230 Buffalo, MN 55313.1195 a MAVEY& FIFTH AVENUE INC, MASTER'S FIFTHAVENLIE ING 18577l807HAVE aecm.iw ullx uY H „z oM4AMtq VU f1ro, Mxq ifW Ytlwk'i aMrvxr ;. now«ku r,9yakw€riusnaiJaedGtw oa#TAneahx9waaeewa2xrvwu. Rlq LAKE NiN 55109 PAYABLE 2092 1$T HALF PAYMENT STUB PLfR`JErieh"Irl 1 nFTta��TRTgxi #rPk,Radn9ArnNrz rcR�arroK TO AVOID PENALTY PAY ON OR OePORE: MAY 15 t�1 R yaur addraao nonohongod Nlwso ahocR 110 Wt and it�_11 ahaw£7 a atsanpe on Ifio buk� of aii& aloe. ('Toperty lO Numhari R 16Sdi15 030180 FUU.L— TA.x'3 MQLjNT r Bill"rrmlwrt 20567 FI 37, ii 7}[X71hi0Up17OUE" a 971.00 ID Number: 211697 PENALTY: TOTAL, Q" 4 MP# RT85,01"30140 WAKE CHECKS PAYABLE & MAIL TO.' 1 Rabart J FIRvala Wright Gounly AUdkorlTraaaurer � 10 Sncend tirrnal NX, Room 230 oulfalo, MN $53184195 MAVEY& FIFTH AVENUE INC, 195577/ 190TH AVE C 1310 MN 6530U. aecm.iw ullx uY H „z oM4AMtq VU f1ro, Mxq ifW Ytlwk'i aMrvxr ;. �dTV LA aa.l x z q l� rssw j Robert Htivala WRIefrT C0JNTKAUO rOWfRSA3UREN VSGOONOSTitk'ST'NA ROOM= BUFALO,Mg 53i3,fi96 7a3�B82�r57Z nr'7V3�tBa�7GdV riNrN.ndxnl�larnn.uy PropurlytD#; Ri56,01t1A361A0 Taxpayer ID Number,, 211097 MASTER'S FIFTH AVENUE INC 10577180TH AVE BIG LAKE MN 55909 Property Tax Statement for Taxes Payable in. 2012 llmOptton: 390.11 TwpA21 Ranua,025OWGINAL PLAT MONTICELLO L01-014 BTock*30 LOTS 14 & i5 BLK 80 You maybe elfgIbta roron6 or even two refunds to roduns yourpropedy fox. REFUNPDS? Read the back of this statement to find out how to apply. PAYABLE 2D12 2ND HALF PAYMENT STUB ILLhR READ TM EIAM OF THUOTEMM9NYFOR IMapftTNA VdiOR4%104 TO AVOi6 PENALTY HAY ON Oft OEFORE: OCTOBOIR 15 � Ifyqur addrsne has changed }5leaac chsok m sbax opd allow Ere c.lnngd gn.NS Vdnk of the an117. 4 PropagIO Numbon RIM-010430140 „St:�QND.tI2.1AYAM0: N�,�t�Fr� 16,113.00 Bill Number. 20692 PENALTY: TOTAL: s 10 Number. 211N7 A MP# 11155.010. 430140 MAKU G14EQK$ PA YAaLE 4 MA 14 TO: Rohsrt J Hllvala Wght county Audllarfrrc mfor 10 Sucond Street N,W„ Room 230 a Buffalo, MN 863134195 i MASTER'S FtFrH AVENUE ING 19577190THAVE mr rar�erntiaawavauace rx�Ewtreuuswrrs, «wa�sstuaea. BIG LAKE MN 65309 PAYABLE 20121ST HALF PAYMENT STUB 1CL IaFi EAP7raeAGK PP 711111 TEr,(ERYro?5PPn7Ag71 vrpn WTIVN TO AVOID PENALTY PAY ON OR BEFORE. MAY i& ( [ ityeueadd mbr�0.6gedptgnsa check lhly bag and +,.....t 6how the change eri Sic LaGko.lhis aluh. b PeopedgIDNurnber; A1b5,Ui0030i40 < Qvy `A vwi;n 8. � 6111 Num6on 70692 .: IDNumbar, 811097 PENALTY, TOTAL: $. MPN 11166. 010.038140 WHECHECK$PAYA13LE'>Y, MAIL TO. nobgrl J Hllvala WHOM County Audilerfirdasuror 10 Sncond Sheet NX, Room 230 BtlRti €n, MN bb313.1105 MASTEf r$ FIFTH AVENUE ING 19577 180TH AVE 010 WE MN 55309 mna��n onocw�+.ra�nwemAr: eea.nee e� yrcH "" "` u.ww. O z 0 iSl O z V d 1l�h1 V 0 po C 0 N M 0O0 Vl 4l Vl %O cd 0 U m_ 0 N r1 G O V d Ni C,3 `V 1" 1 ,�-� N O O O N O �D Vj 1-i o � R 4 N 00 Ln z 00 O n M O Vl m .n N W) Ln G 0 O P W r-1 i 0 N M 00 000 QNt 0O0 Vl 4l Vl %O M N N a� rn rn rn T T ONi ONi 0 i Q+ p O O O O N N N N N C> (Z) Q C- 0 0 0 0 V) 00 O O O 'o N N N N C G O O A Ni w ,�-� N N 1D �D p d N O 00 00 O V R 4 N 00 Ln Q 00 O n M O Vl m .n N W) Ln G 0 O P W r-1 i x x x x V V U U DC PC >C 5C 00 00 O O N N Cl V) 00 O O O c N N N N C G O O r•i Ni •�-� ,�-� N N 1D �D 00 00 O O N N V) N N N N N CJ c N N N N M �N M m N � d W r-1 i d W � U A' f1] � t7 W z z w 0 t� O O O O O a V) M M M M c N N N N M �N M m N N N N N N rn N 'd W N 0 O �4 N M U �n O O O U D L xcelF►,e,igya LSPONSIBLE BY NATUS Northern States Power Company Please Return This portion With Your Payment } :tom ........v -, .i :• ,:: v.: n{.'' use .a: ::::E' '. Yt: rs +C: }..:......_U..: - 51- 0517384.8 91/1412M3 $1532 Thank You! AV 01 001023 35381 8 5 A * *6D0T t�rrrlPrl�rrr�rrl�rr��+ �II�I" �I 'l1'll'�Iri�lltl]�I�I�I�IJIn�I MONTICELLO EDA 545 WALNUT ST STE 1 MONTICELLO MN 55362 -0831 Irrr��lrr�h' llllrnnlr {��'Irlr�rllflrrf�l��:�: rll�rri��lrr�rlrr P.U. BOX 9477 M PLS, M N 85484 -9477 hmml'i' 31 51U11413 U5173 845 ODUODUU1532- UUOUG00153E 0etadi and Rotnin This Potion rorYOur Hoaords tlnastions: Call 24 Hours 7 Days A Week or write to us at s >. �Y . h> ": , Please Call: 800 B9r 4999 Fast: Northern States Power Company i liaarin lmpairad: 800 BS -4949 1800) 895 -2095 PO BOXU .:n_:n::. -, _ .= Q Espario: 800 667 -8776 _EAU CLAIRE WI 54702 -0000 s NO y > Billing Summary Residenfal Previous Balance 11112 Payment necaivnd as of 12/14 Bolonce As Of 12114 Current Energy Charges 12114 Total: ,98 Averages for This Last )Billing Period Year Year Averane Tamaerattir _ _ 29* a ElactricAwh. per Day 15 a.o Cast op r llay VAR sa.uU * 0 Degrees Warmer Elea tAu Chargos Usage Paliud: 11 /1x112 to 12113712 Meter Beading Information Invoice # 4512156S Meter 7000052245031 Residential Somito 31 Days Total Energy -kft Basic sorvice Cho $7.11 Company Reading on 17113 .... ............................... 04R76 AfFordability Charge X9.50 Co art Beading on 11112 .................... 6 U m 3 Energy Charge Winter47 kWh 6SU.00975U To aI sage in 1 Days k'W h 47 Fuel Cost Charge 47 kWh G $49*85 $1.32 Hasa urce Adjustment: a Subtotal $1236 City Foes $t% State Tax @6.875yo Total Amount 1 77 n � o = Different fuel sources are used to generate electricity, a.ind:they produce different air emissions. For updated environmental information for the year ended °2011 g6 to; wuvw,xcelanergyx�r MINRates, then go to Additional Resources, Bill Inserts and — Brochures /Insi,do Your Electrid Bill- trivironmental Disclosura,& Costs. If you don't have Internet access, please contact us at 1.800.895.4999and we can provide you with this information. Thankyau foryour payment, r ON110ELLO EDA 112 f BROADWAY ST MONTICELLO, MN 55362 -9321 See.hack of bill for Account fk 51- 0517384 -8 more information. Page 1 of 1 Statement Date: 12114112 Next Scheduled Meter Reading gate MW == 01/18/13 01/1412013 $15.32 Please see the back of this hill for more information regarding the late payment charge, Pay on or before the date due to avoid assessment of a late payment charge. Statement# 35[1809310 1 4 e Premise # 30361 lsir8 854 XcelEnergy® RESPONSIBLE BY MATUBEw Northern States Power Company Please fletarn This Portion WM Your Payment. MI. This Last Billinn Period _ _ 51- 06232 0 01/1512013 $1 a.80 Thank Youl 29* AV 01 002196 86568 E 9 Ak *5DQT lull' 111 "111rIIIIItI'II "'lllllrllrl«l� II1t111�II1111II1tIIl1 MONTICELLO EDA 505 WALNUT ST STE:1 MONTICELLO MN 55362 -6831 rfllr111, nl�lrr�lll�ll���ll�l�lf�l�lll�lltl �mll4n�ln,l , M 9477 MPLS PLS (VIN 55884.5477 31 51011513 062308iy8 17C71ZH110158 1000D 1001580 Detach and Retain This Portion For Your Reaords `j (Wastions: Celt arwrite to us at: Ploaso Call: (8 00 ) 491 -4700 Northern States power Company Hearin Impaired. 800 295.4949 PO BOX 8 £� � < � " I Hearing P } sy -_ aria Fax: {9001311 -0050 EAU CLAIRE WI 54702-0008 Billing Sltntmary Commercial Previous Balance 11113 Payment Received as of 12117 Balance As Of 17117 Commercial Electric Service 12117 Total DEC 242012. CA . # � 5.80• Ile Averages for This Last Billinn Period _ _ Year Year Avoraae TomPerature 29* 28 Electriciltwh per hay 0A 0.0 Cost p o Day $0,-40 $0 Qa Motor 0 Company Reading on 12116 Por an average non - demand customer, 73% of your bill refers to power plant costs, 10% to high voltage line Costs, and 17% to the cost of local Wires connected to your business. For an averagge demand - billed customer, 13% of your total bill refers to power plant costs, 10% to high voltage lines, and 7% to the cost of local wires connected to your business. MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362 -06 See back of hill-for Account #: 51. 0623082 -5 more information. Page 1 of 2 Statement Date: 12111112 Next Scheduled Meter Readin Date �;� =°x '= :. {... ::. i�'?:., -..,:. - ? VON -- r, - .:. �;zA:ss: -'-s:. °•� - . :°i•- %$5'tk -S�' ii'.S:Y #,��5„ar�tvrwn:�.. - �:4:> ....: .., bra,`.C:.'::Ct..+A�S- 'G.i:',r - ^r.," ._ -,..2.fif,�:':3�fi3�n�risx - <r..:3 .. :.:::= `...Z'sm xK. F.ifab,. -4.ur �l'.."'U:...9 - .:x ..r.': .2.. -..- ," Z ... .nw.viS3+9.SiL`t3i3::::i'?i:'°' _ _ - k•.,,'-. Electric Charges Osage Period: 11/13/12 to 17116/12 Invoice #451397423 Total Energy -kWh Motor 0 Company Reading on 12116 42695 000052.995965 Company Realiing on 11113 42695 Total Usage in 33 Days kWh 0 Sm Gen Svc (Metered) 33 Days Basic Service Chg $6.61 Affordability Chg $0.67 Energy Charge Winter 0 kWh 0 $0.066870 $0.00 Resource Adjustment r092'200' Subtotal City roes $5.50 State Tax 06.875% 1A Tbta1 Amount $15.00 Por an average non - demand customer, 73% of your bill refers to power plant costs, 10% to high voltage line Costs, and 17% to the cost of local Wires connected to your business. For an averagge demand - billed customer, 13% of your total bill refers to power plant costs, 10% to high voltage lines, and 7% to the cost of local wires connected to your business. MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362 -06 See back of hill-for Account #: 51. 0623082 -5 more information. Page 1 of 2 Statement Date: 12111112 Next Scheduled Meter Readin Date �;� =°x '= 01/21113 01115/2013 $15.80 Please see the back of this bill for more information regarding the late payment charge. Pay on or before the date due to avoid assessment of a late payment charge. Statement # 350983305 Premise # 303657355 .:o 1s �l m� Xcel Energyr RESPONSIBLE BY NATURE- Northern States Power Company Please Return This Portion With Your Payment. POWN .-M-1 This Last Year Year 01 EINSTEIN MAN 51- 0592578 -0 01/15/2013 $15.80 Thank You! AV 01 002196 86968 E 9 A * *600T III' IPIIIIIIIIw.-II IIIIIIII111 III 111111II1111111III1[111111111 MONTICELLO EDA 505 WALNUT ST MONTICELLO MN 55362 -8831 uIII�I�r��II�IrII�IIlIlI1111I 'II'I�III' {I[II IlI I I :IIi. II; " P.O. BOX 9477 } MPLS, MN 55484 -9477 31 510115/3 05925780 DOCC00015800000000IS80 Detach and Retain This Portion For Your Records Questions: Cull or write to us at: Please Call: (800) 481 -4100 Northern Status Power Company 3�. Hearing Impaired: ($OD} 805,4949 Pd e0x 8 Fax: (0001311-0050 EAU CLAIRE W1 54702-0008 BillirigSuitlmarq Commercial Previous Balance 11112 Payment Received as of 12/17 Balance As Of 12117 Commercial Electric Service 11117 Total .E Averages for Billing Neiad This Last Year Year Average Temperature 29'F.__ ... 29 Electric /kwh per Day C st p or Day 0.0 0,0 $0.49 $0,00 *0 Decrees Warmer Electric Charges Osage Period: 11112112 to 12115112 Invoice # 451404757 Total EuaWkWh Meter # Compuny°Readiug on 12/15 12807 000007727701 Comvny Redding on 11/1'2 3 &I Total Usage in 33 Bays kWh 0 Actual DemandAW 0.24 Billable Demand 0 $m Gen Svc 1Meterad) 33 Days Basic Service Chg Affordubilly Chg Energy Cbarge Winter Resource Adjustment subtotal City Foes State Tax @0,875% Total Amount $Ball %ol 0kWh 08.0661170 $0.60 $0.00 $9.28 $5.50 $15.90 For an average noel- demand customer, 73% of your bill refers to power plant costs, 10% to high voltage line costs and 17 %t0 the cost of local vuiros. connected to your business. For an average diumorld - billed customer, 3ol0 of your total hN refers to powor plant costs, 10% to high voltage lines, and 7% to the cost of local wires connected to your business, MONTICELLO EDA Next Schadulad ���� � 202 PINE ST Meter Reading Data � ..........:.. °r.... -: -- - - MONTICELLO, MN 55362 01118113 01/15/2013 $15.80 Please see the back of this bill for more information Soo back of bill for Account 1F: 51- 0592678 -0 regarding the Into payment charge. Pay on or before the more information. date due to avoid assessment of a late payment charge. Pagel of 2 stoloment Date: 12/17112 StatOmont # 350982807 Premise # 303547449 N N � ;a Xcel Energrya RESPONSIBLE BY NATURETM Northern States Power Company Please Return This Pardon With Your Payment, AV 02 002108 $6958 D 9 A * *6DOT III III I'll ill rl�l�l�l��ll III -11- I.IIIIrlII'lllllllllllnll�l MONTICELLO EDA 505 WALNUT ST STE 1 MONTIGELLO MN 55362 -0631 IIhII��II,IIIIIUU�IIIIIIIIIII Ill 11111f jrllrti,lllllllllr RO. BOX 9477 MPI-3, MN 55484 - 9477 , 3 31 51011 EII A 09173655 01300 0F1692DI1 ld©C121692 Detach and Retain This Pnrrion For Your nannrds Questions: Call or write to us at; Please Call: {ITU(Ij 401.4700 Northern States power Company n illi s t 1. r i#P $s Hearing a Impaired: 1000} 896 -4944 PO ABOX LAIRE Wl 54702 0000 n Fax; I } 1 Commercial Pravinus Balance 11112 Payment ilecoivod as of 12117 Valance As Of 1Y117 Commercial Electric Service 12/11 Total mg Summary 198.91 Q C 2 4 201? 91U2 $216.9 Averages for This Last Billing Period Year Year Average Tem eraturo 29 i~ 29 Electrielkwh per Day 52.9 0.0 Cast per Day $6.58 $0.00 a 0 Degrees Warmer Electric Charges Usage Period: 11/12712 to 12/15112 Invoice # 4513947.68 Total Energy -kWh Motor # Company Reading on 17115 44048 000007727744 Company Reading an 11112 45811 Total usage in 33 Days kWh 1024 Actual &mend -kW 3.97 Billable Demand 4 Sm Gen Svc (Metered) 33 Days Basic Service Chg Affordability Cho Energy Charge Winter Fuel Cost Charge Resource Adjustment Subtotal City Fees State Tax 06.8751A Total Amount $8,01 $0.67 1024 kWh @ $0.060810 $013.47 1024 kWh ®$0.0213408 $29.09 $4.01 $110.055 $x.50 $124.35 For an average non - demand customer, 73% of your bill refers to power plant costs, 10% to high voltage line costs, and 17% to the cast of local wires connected to your business. For an average demand - billed customer, 83 °/4 of yourtotal bill refers to power.plant costs,10%to high voltage lines, and 7% to the cost of local wires connected to your business, MONTICELLO EDA 206 PINE ST MONTICELLO, MN 55362 -9665 See back of hill for Accaunt A 519517365-5 more information. Page 1 of 4 Statement Date: 12J17 /12 NuxtScheduled :° : :a. MM M s Y,i::: .:. 51- 0517365 -5 01!1'517113 $216.92 Thank Youl AV 02 002108 $6958 D 9 A * *6DOT III III I'll ill rl�l�l�l��ll III -11- I.IIIIrlII'lllllllllllnll�l MONTICELLO EDA 505 WALNUT ST STE 1 MONTIGELLO MN 55362 -0631 IIhII��II,IIIIIUU�IIIIIIIIIII Ill 11111f jrllrti,lllllllllr RO. BOX 9477 MPI-3, MN 55484 - 9477 , 3 31 51011 EII A 09173655 01300 0F1692DI1 ld©C121692 Detach and Retain This Pnrrion For Your nannrds Questions: Call or write to us at; Please Call: {ITU(Ij 401.4700 Northern States power Company n illi s t 1. r i#P $s Hearing a Impaired: 1000} 896 -4944 PO ABOX LAIRE Wl 54702 0000 n Fax; I } 1 Commercial Pravinus Balance 11112 Payment ilecoivod as of 12117 Valance As Of 1Y117 Commercial Electric Service 12/11 Total mg Summary 198.91 Q C 2 4 201? 91U2 $216.9 Averages for This Last Billing Period Year Year Average Tem eraturo 29 i~ 29 Electrielkwh per Day 52.9 0.0 Cast per Day $6.58 $0.00 a 0 Degrees Warmer Electric Charges Usage Period: 11/12712 to 12/15112 Invoice # 4513947.68 Total Energy -kWh Motor # Company Reading on 17115 44048 000007727744 Company Reading an 11112 45811 Total usage in 33 Days kWh 1024 Actual &mend -kW 3.97 Billable Demand 4 Sm Gen Svc (Metered) 33 Days Basic Service Chg Affordability Cho Energy Charge Winter Fuel Cost Charge Resource Adjustment Subtotal City Fees State Tax 06.8751A Total Amount $8,01 $0.67 1024 kWh @ $0.060810 $013.47 1024 kWh ®$0.0213408 $29.09 $4.01 $110.055 $x.50 $124.35 For an average non - demand customer, 73% of your bill refers to power plant costs, 10% to high voltage line costs, and 17% to the cast of local wires connected to your business. For an average demand - billed customer, 83 °/4 of yourtotal bill refers to power.plant costs,10%to high voltage lines, and 7% to the cost of local wires connected to your business, MONTICELLO EDA 206 PINE ST MONTICELLO, MN 55362 -9665 See back of hill for Accaunt A 519517365-5 more information. Page 1 of 4 Statement Date: 12J17 /12 NuxtScheduled :° : :a. Motor ReadingDate -- 01/10113 01/15%2013 $215.92 Please see the back of this bill for more information regarding the iota payment chargs, Pay on or before the date due to avoid assessment of a late payment charge. Statement # 354979382 Promise # 302451493 XcelEnergydo RESPONSIBLE BY NAiaBBN Nerlhern Motes power Company Please Return This Portion With Your Payment. MONTICELLO EIIA 505 WALNUT ST STE 1 MONTICELLO MN 55362 -8822 P,0, BOX 9477 M P LS, MN 55484 -9477 31 511411115113 05173655 0000OU216920000 GUE1,692 Detach and Retain This Portion For Your Rouorft — Quostians. Call or write to us at; Please Call: (0001401 -0700 Northern States Powor Company p Hearing Impaired: 000 895 -0949 PO p ( ) [il�fl[3t1?�•T�1[61 ... 3f :. U1� - Fax: 1800 311 -0050 EAU CLAME WI 54702 - 0008 Electric EharOes Usage Period: 11I11112 to 12115/11 . ["voice # 451393129 Tonal Enorgy -kWh Motor# Company Reading on 17115 000007727732 Company Readin on 11112 Total Usage in 33 Days Actual Demand -IrW Billable Demand Sm Gen Svc (Motored) 33 Days Basle Service Chg Affordability Chg Energy Charge Winter Fuel Cost Charge Resource Adjustment S"btetal City Fees State Tax 06.0751A Tote Amount Averagesfcr This Last Billing Period Year Year Average Tom erature 29* ! ]Qctric /kwh per pay 52.9 0,0 .. __ . Cast per Dax -- On 56 �i1.04 * 0 Degrees Warmer 59522 ,ra0I06 kWh 724 4.74 5 $8,61 $0.67 724 kWh 0$0.066910 $48,01 724 kWh @$0.028412 $20.57 $ti1.17 $5.50 $3 96 ,57 For an average non- domand customer, 73% of your bill refers to power plant COW, 10%to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand- billed customer, 63% of your total bill refers to power plant costs, 10% to high voltage lines, and 7% to the cost of local wires connected to your business, MOWICEI.1:0 EDA NextSchedulod :.............. ` ° "` 112 E BROADWAY ST Meter Reading Data ',�..: ::w¢ MONTICELLO, MN 55362 -9321 D1118/13 01/154413 $216.92 Soo back of hill for Account #: 51- 06617365 -5 more infarmatian. Page 3 of 4 Statement Date.1ZI17 /12 Statement # 350979382 premise # 302695149 51- 01517365 -5 01/1512D13 $216.92 Thank You! P,0, BOX 9477 M P LS, MN 55484 -9477 31 511411115113 05173655 0000OU216920000 GUE1,692 Detach and Retain This Portion For Your Rouorft — Quostians. Call or write to us at; Please Call: (0001401 -0700 Northern States Powor Company p Hearing Impaired: 000 895 -0949 PO p ( ) [il�fl[3t1?�•T�1[61 ... 3f :. U1� - Fax: 1800 311 -0050 EAU CLAME WI 54702 - 0008 Electric EharOes Usage Period: 11I11112 to 12115/11 . ["voice # 451393129 Tonal Enorgy -kWh Motor# Company Reading on 17115 000007727732 Company Readin on 11112 Total Usage in 33 Days Actual Demand -IrW Billable Demand Sm Gen Svc (Motored) 33 Days Basle Service Chg Affordability Chg Energy Charge Winter Fuel Cost Charge Resource Adjustment S"btetal City Fees State Tax 06.0751A Tote Amount Averagesfcr This Last Billing Period Year Year Average Tom erature 29* ! ]Qctric /kwh per pay 52.9 0,0 .. __ . Cast per Dax -- On 56 �i1.04 * 0 Degrees Warmer 59522 ,ra0I06 kWh 724 4.74 5 $8,61 $0.67 724 kWh 0$0.066910 $48,01 724 kWh @$0.028412 $20.57 $ti1.17 $5.50 $3 96 ,57 For an average non- domand customer, 73% of your bill refers to power plant COW, 10%to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand- billed customer, 63% of your total bill refers to power plant costs, 10% to high voltage lines, and 7% to the cost of local wires connected to your business, MOWICEI.1:0 EDA NextSchedulod :.............. ` ° "` 112 E BROADWAY ST Meter Reading Data ',�..: ::w¢ MONTICELLO, MN 55362 -9321 D1118/13 01/154413 $216.92 Soo back of hill for Account #: 51- 06617365 -5 more infarmatian. Page 3 of 4 Statement Date.1ZI17 /12 Statement # 350979382 premise # 302695149 r WIL ON DEVELOPMENT SERVICES December 26, 2012 City of Monticello Attn: Angle McIntire 505 Walnut St. Monticello, MN 55362 Re: Broadway Plaza Building 0L Used Bike Shop Dear Angie, OFFICE: 952.448.4630 800.448.4630 FAX 952.448.4676 WI LSONDEV510 @AOC.COM 510 CHESTNUT STREET, SUITE 200 CHASKA, MINNESOTA 55318 Enclosed is an invoice in the amount of $150.00 for a move estimate done at BL Used Bike Shop in Monticello to determine the amount to be paid for a self -move. Please issue the check as follows to: Action Moving Services, Inc. in the amount of $150.00. ! Please send me an electronic copy of the check for the file, when complete. Sincerely, 64 hn Callender Wilson Development Services LLC 4 a Ann Zimmerman From: Angie McIntire Sent: Wednesday, December 26, 2012 2:43 PM To: Ann Zimmerman ' Subject: FW: Check Request -BL Used Bike Shop Attachments: doc20121226125457.pdfi doc20121226125132.pdf; doc20121226125144.pdf Ok to pay $150 to Action Moving for MGFARM Relo (on behalf of BL Bikes this time) Thanks and let me know if you have any questions. Angie From: John Callender [maiito: john @wilsondevelopmentservices.com] Sent: Wednesday, December 26, 2012 2:04 PM To: Angie McIntire Cc: Ann Zimmerman; Jeff O'Neill Subject: FW: Check Request -BL Used Bike Shop Hi Angie, Attached is a memo requesting payment to Action Moving Services, along with the invoice and a copy of the move estimate done at BL Used Bike Shop. Let me know if you have any questions about this payment request. Happy holidays, John 1 fro] WIL.�-30N DE-1VEILOPME-i9l' 12400 Washburn Avenue South Burnsville, MN 55337 952-894-8888 FAX 952-894-0020 800-328-3803 www.actionmoving.com 510 NO. Cf*--"F3TNtJT CTI-, &00 CHA,33KA, tllt� 5f.S20. G FED. 1D# 41- 1 3971 33 INVOICE INVOICE NUMBERI"B-itJS INVOICE DATE-' P,O, NUMBER CUSTOMER NUMBER- 'E"(:;: ' SHIPPER BL U,31-M 511<E S•O(" -f I f 11 ;L..L,,ui SALESMAN SERVICE DEDESCRIPTION AMOUNT QUANTITY CHARGES& CODE OR WEIGHT ATE CREDITS 6L)WEY FOR SL. BIKE i3HOIr" BOOk" S1.1r-WEY 1. 00 1 150. 001-A 150, cm BY GV-Z•EFZ OP" 'THE T(:;(::,, Wi]-1 be ('N-AF�GED IF NO"I''PAID BY I /PQ`/J-`1 LtAS[7-X:) t'.W 1.514 AMD A 111INT11LAV-4, (Jf- $10t 00 PAY 1 150 00 IF POSTMARKEID BY 1% /2 13 $ A w cc 1 6,; 04 tl 4F 9 , P .. f ACTIaN 12121/2012 Dane Wollak Cell: 612.983.2238 MOVINGr g INC. dana.wollak@aotlonmoving.com MINNEAPOLIS i ST. PAUL 12400 Washburn Avenue South Burnsville, MN 55337 952 -894 -8888 • 800 - 328 -3803 Fax: 952 -894 -0020 www.action moving,com John Callender I Wilson Development Re: BL Used Bike Shop f Rob Butler'° 112 East Broadway Monticello, MN 55362 john @wiisondevelopmentservices.com Move: We will use 4 men and 1 truck at $190.00 per hour including ramp and travel for 8 hours for an estimated cost of $1520.00 $1,520.00 Disassemble and reassemble of shelves with hangers in front room $240.00 Toggles, screws, etc. $38.00 7.125% Sales Tax $2.71 Disassemble and reassemble of ramp by Vary Hove Construction $2,730.00 Screws, shims, extra lumber, etc. $155.00 7.125% Sales Tax $11.04 Packing 1 Loadinq Gondolas: We will use 2 men and pack truck at $92.00 per hour for 7 hours including travel for an estimated cost of $644.00 $644.00 Packing materials $78.00 7.125% Sales Tax $5.56 Insurance: $30,000 Full Value Protection $225.00 Total Estimated Cost: A AA7� Infer3talawmv ift0y /gaafiliI -Vro- ,c.u,....i.,.ou.nou.�uovu PROMOV ., „.,,,,,.,,e AIRerlC9a Rfollllf8 af:d IIOI -Iffn 4UCf8hOR $5,649.31 (5 1AM' MLN�, klemrt.raU.,e.{Amd% An fATA Company r I� ON 0 �I�J DEVEIAPMENT SERVICES December 21, 2012 City of Monticello Attn: Angie McIntire 505 Walnut St. Monticello, MN 55362 Re: Broadway Plaza Building Lakeland Dental Clinic' Dear Angie, OFFICE 952.448.4630 800.448.4630 PAX 952.448.4676 WILSONDEV510@A0L.00M 510 CHESTNUT STREET, SUITE 204 CHASKA, MINNESOTA 5.5318 Enclosed is an invoice in the amount of $200.00 for a move estimate done at Lakeland Dental Clinic in Monticello to determine the amount to be paid for a self -move. Please issue the check as follows to: .V 510 Berger Transfer & Storage in the amount of $200.00. Please send me an electronic copy of the check for the file, when complete. Sincerely, 6JCallender Wilson Development Services LLC Ann Zimmerman From: Angie McIntire Sent: Monday, December 24, 2012 8:58 AM To: Ann Zimmerman Subject: FW: Check Request - Lakeland Dental Clinic Attachments: doc20121221164402.pdf, doc20121221163156,pdf, doc20121221165632.pdf OK to pay for Montgomery Farms Relo. $200 to Berger Transfer & Storage Angie From: John Callender [mailto: john Owilsondevelopmentservices,comj Sent: Friday, December 21, 2012 4:51 PM To: Angie McIntire Cc: Ann Zimmerman; Jeff O'Neill Subject: Check Request- Lakeland Dental Clinic Hi Angie, Attached is a memo requesting payment to Berger Transfer, along with the invoice and a copy of the move estimate done at Lakeland Dental Clinic. Let me know if you have any questions about this payment request. Happy holidays, John BERGER Invoice 0 Date 120070428 000 12/18/2012 ------------ - - - - -- Invoice To WILSON DEVELOPMIuNT SERVICES ATTN: STEVE SCHMIEG 510 N CHESTNUT STREET STE 200 CHASKA, MEd 55318 ------------ - ----- Shipper - -- WILSON DEVELOPMENT SVCS 510 N CHESTNUT STREET, STE 200 CHASKA, MN 55318 - -- Cust #: 172957 Tariff: Section: Contract: Make Checks Payable & Rem-it To Berger Transfer & Storage NW 7215 PO Box 1450 Federal Id# 41- 0677589 Minneapolis, MN 55485 -7215 (651) 639 -2260 Load Date:12/17/2012 Del.v Date:12/17/2012 BOL: PO #: - - -- ------------ - - - - -- Consignee - - -- WILSON DEVELOPMENT SVCS 510 CHESTNUT ST, STE 200 CHASKA, MEd 55318 ----------------------------------------------- NOTES--------------- - - - - -- None BIDS ------------------------------------ CHARGES-------------------------- --- ----- - - - - -- Description ----- - - - - -- - -- Oty - - -- - - -- Rate - - - -- ORIGINAL Totals: Pay This Amount; Late Payment Charge After 30 Days Total With Late Charge: Charge 200.00 Charges Charges 200.00 200.00 10.00 210.00 A G E N T A L L I E D V A N L! N E S TERMS OF APPLICABLE TARIFFS AND BILL OF LADING APPLY. SUBJECT TO TERMS AND CONDITIONS ON THE REVERSE SIDE, SERWR A/!C?VPNG FORWARWD December 17, 2012 V F r I John Callender Wilson Development Services 510 North Chesmut Street, Ste.200 Chaska, MN 55318 Mr, Callender, Thank you for giving Berger Transfer the opportunity to give you a Bid for the relocation of your client Lakeland Dental located in Monticello. Berger would handle all packing, loading, moving, unpacking and placing of items that will be moved. Berger is not responsible for any electrical or plumbing disconnects or reconnects. If you have any questions call me at your earliest convenience so that we can discuss them. It is my purpose at all times to render a thoughtful and considerate move that will merit your highest esteem. Sincerely, Berger Transfer & Storage, Inc. Jeff Johnson Move Consultant Office & Industrial Division L Agent for Mod Van tines® WRWR MOVING FORWAPW� Lakeland Dental Relocation Bid 12/17112 Packing Three Men & Truck @ $132.00 per hour x 9 hours , $ 1,488.00 Labor & Transportation Main Move One Supervisor $ 41.00 per roan hour x 9 hours $ 369.00 Two Drivers $ 4 1. 00 per man hour x 9 hours $ 738.00 Pour Movers $ 33.00 per man hour x 9 hours $1,188.00 Two Installers $ 35.00 per man hour x 9 hours $ 630.00 Two Trucks $ 25.00 per man hour x 9 hours $450.00 $ 3,375.00 Unpacking $1,188.00 Materials 50 Boxes $ 2.50 each $125.00 4 rolls tapes $ 20.00 6.875 % Tax 12, 97 $ 154.97 Total Bid $ 5,905.97 INSURANCE Under our complete insurance program, we carry all necessary requirements pertaining to liability, property damage and bodily injiuy. PROPERTY DAMAGE (Nan -Auto) $1,000,000.00 per accident BODILY INJURY (Auto) $1,000,000.00 per accident iM 3RELLA LIABILITY $9,000,000.00 per accident A Certificate of coverage can be furnished, if required, naming both origin mud destination buildings and their prospective managing companies. BERSeR MOVING F[?RKARi7 ) LOCAL OFFICE & INDUSTRIAL PROTECTION PLAN Please sign and date one of the following: r7) Basic Liabili , $.60 per pound per article. Under this protection your goods are covered up to $.60 per pound (of weight) per individual item, There is no charge for this coverage. e Signature: Date: s= r_ Replacement Value Protection This option covers your goods for replacement value. This type of coverage has a minimum declared value of $10,000.00. This coverage is available with a $0 or $500.00 deductible. $0 Deductible available at $8.00 per $1,000.00 declared value. $500.00 Deductible available at $5, 00 per $1,000.00 declared value. Signature: Date: Declared Value; . Premium: As always, your relocation consultant will be glad to answer any questions regarding this or any other moving matters. When declaring the good's value, you must use the full value of all items to avoid an under insurance penalty. Berger has the option to repair or replace damaged items. ACCEPTANCE OF PROPOSAL This proposal is based on the information provided by your company. We have developed a move plan we believe to be cost efficient based on this information. It is important that we reserve equipment and begin working with you to finalize the move plan. Payment terms are net 30 days upon receipt of invoice. Late payments will be assessed 2% interest per month (including partial month), plus attorney fees and costs of collection. The estimated price, specifications, and conditions are satisfactory and accepted. If changes in the move plan occur, the company representative will keep Berger advised. Carrier Representative Date of Proposal Agent tarMod Van Lam- Company Representative Date of Acceptance 5a A. B. EDA Agenda — 02/13/13 Annual Meeting - Elect Officers. (AS) REFERENCE AND BACKGROUND The EDA makes one -year appointments for the officer positions of President, Vice - President, Secretary and Treasurer at its annual meeting in February, per EDA bylaws. The election of officers is an internal function of the EDA and does not require ratification by the City Council. Currently, the officer positions are held as follows: President: Bill Demeules Vice President: Bill Tapper Secretary: Staff — previously Executive Director of EDA Treasurer: Tracy Hinz Vice Treasurer: Unknown ALTERNATIVE ACTIONS 1 and Motion to appoint Commissioner as EDA Vice - President, as EDA Vice - Treasurer. C. STAFF RECOMMENDATION None. D. SUPPORTING DATA None. as EDA President, as EDA Treasurer EDA Agenda: 2/13/2012 5b. Annual Meeting - Acceptance of EDA Fund Balance Report. (WO /AS) A. REFERENCE AND BACKGROUND: Attached is the annual estimated fund balance report for the EDA General Fund. The report provides line item detail for all of the EDA's sub - funds, the majority of which are the tax increment districts within the City. In addition to TIF Districts, fund balance information for the EDA "General" sub -fund the GMEF are also reflected in the report. The information represents the unaudited balances of the districts, as staff is still in the process of closing out fiscal year 2012. The report includes information on the final fund balance total for TIF District 1 -5, which was decertified in December of 2012. The surplus increment in 1 -5 was allocated by the EDA to the 7t' Street West extension project. It should be noted that District 1 -6 (Raindance) is legally required to be decertified at the end of 2013. The report also reflects budgeting adjustments made related to the EDA's "general" sub -fund. In 2012, the EDA made a structural change to its budgeting process in order to more clearly reflect actual cash and land assets. The report also shows the $890,000 allocation from TIF 1- 22 to the EDA "general" sub -fund, which was completed in conjunction with the TIF 1 -22 knock -down analysis. Staff has also provided a status report on existing GMEF loans. Only one of the GMEF loans is not current at the present time. Staff has been in contact with the mortgagee to discuss status of payment. Staff will also be consulting with the EDA's attorney as related to next steps in case of any potential default. B. ALTERNATIVE ACTIONS: 1. Motion to accept the 2012 EDA Fund Balance Report. 2. Motion of other. C. STAFF RECOMMENDATION: City staff recommends alternative 1 above. D. SUPPORTING DATA: 2012 EDA Fund Balance Report GMEF Loan Report GMEF Customer Loan Status Borrower: First pmt date: Amount of loan: Pet Hospital Hoglund Body & Equip Senior Center Swan River Genereux Tapper's Holding" "Balloon payment 1/1/2012 $ 50,000.00 9/1/2010 $ 198,281.00 8/3/2001 $ 105,000.00 5/1/2005 $ 200,000.00 4/1/2009 $ 24,295.84 11/1/2010 $ 162,937.80 'ity Date: 12/1/20] 8/1/20] 4/3/20] 5/1/202 4/1/207 10/1/209 amount: Currently due for: Balance remainin $ 1,450.00 12/1/2012 25 $ 35,113.28 $ 3,554.00 3/1/2013 30 $ 102,594.32 $ 950.00 3/1/2013 26 $ 33,038.60 $ 1,433.00 3/1/2013 146 $ 148,202.69 $ 524.76 3/1/2013 2 $ 1,045.92 $ 1,159.92 3/1/2013 8 $ 142,478.21 - m Y O - L � � A � K Z N i I i I it 9! II I I III II ■1111 ■11111 ■I ■II ■IIIII�III ■11111 ■II ■Ilil III�I��IIIIIIIII IIII Il�llllll�llll�il ■1111 ■11118 ■I ■II ■19119111 ■11111 ■II ■IIli I III III�6��I1011ll I I I I�I I Ill�ill�al I ■1111 ■11111 ■I ■II ■IIIIIVIII ■11111 ■II ■1191 III�I��II� VIII Illll IIII IIII III it ■ 9111 ■11111 ■I ■II ■Illil�lll ■11111 ■II ■1119 d! I I II II I I! - m Y O - L � � A � K Z N EDA Agenda — 02/13/13 5c. Consideration to Review EDA Enabling Resolution. (JO /AS) A. REFERENCE AND BACKGROUND The EDA is asked to review the EDA Enabling Resolution and recommend any required amendments. The Enabling Resolution enumerates the authority, structure and powers of the EDA, including those powers granted to the entity when the EDA was reconstituted in 2007 to include the powers of the City Housing & Redevelopment Authority. EDA Attorney Martha Ingram of Kennedy & Graven has noted that at least one amendment is necessary: the EDA will need to amend the document to reflect the change in Executive Director from Economic Development Director to City Administrator. This amendment pertains to section 4.01 of the resolution. At the time this report was written, the EDA Attorney was out of the office and unable to provide the amended document. (Staff does not have on file the Word version of the latest Enabling Resolution and therefore cannot make the change internally) If staff is able to obtain the amended resolution prior to the meeting, it will be presented for EDA adoption. B. ALTERNATIVE ACTIONS Motion to recommend the amendment of the EDA Enabling Resolution per the recommendation of EDA Attorney. 2. Motion of other. C. STAFF RECOMMENDATION Staff recommends the amendment and adoption of the Amended and Restated Enabling Resolution, subject additional changes proposed by the EDA. D. SUPPORTING DATA Resolution 2008 -5 — Amended and Restated EDA Enabling Resolution CITY OF MONTICELLO RESOLUTION NO. 2008 -5 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY; SUPERCEDING ORDINANCE NO. 172 BE IT RESOLVED By the City Council of the City of Monticello, Minnesota ( "City") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act ") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City, and is authorized by Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act ") to establish a housing and redevelopment authority to coordinate and administer housing and redevelopment plans and programs for the City. 1.02. By a resolution approved November 30, 1970, the City established the Housing and Redevelopment Authority in and for the City of Monticello (the "HRA "), for the purpose of coordinating and administering housing and redevelopment projects and activities in and for the City. 1.03. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title 11, Chapter 3 (the "Enabling Ordinance "), the City established the City of Monticello Economic Development Authority ( "EDA "), for the purpose of coordinating and administering economic development activities in and for the City. 1.04. By resolution approved on October 22, 2007 (the "Allocation Resolution"), the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello ('URN). 1.05. By resolution approved October 22, 2007, the City Council adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution ") in order to conform the powers of the EDA to the Allocation Resolution. 1.06. The City Council has determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.07. The City Council has in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the modified Enabling Resolution. 1.08. This resolution constitutes an amendment and restatement of the original Enabling Ordinance, incorporating the transfer of HRA powers to the EDA in accordance with the Allocation 321892v6 MNI MN 190 -130 1 Resolution, and also supercedes in all respects the Enabling Resolution adopted on October 22, 2007. Section 2. Enabling Authority. 2.01. The EDA was established under the Enabling Ordinance as adopted April 10, 1989 and codified as Title I1, Chapter 3 of the City Code. , 2.02. The Economic Development Authority shall be composed of 7 members to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the members shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) members shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non - Council commissioners shall be appointed for six-year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership. A vacancy for this or any other reason must be filled for a new term (in the case of a Council member) or the balance of the unexpired term (in the case of a non - Council member), in the manner in which the original appointment was made. 2.05. At least three of the members who are not members of the City Council shall be residents of the City, and not more than two of the members who are not members of the City Council may be nonresidents of the City, provided that such members own a business and own property in the City. 2.06. All members shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the EDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 321892v6 MNI MN 190-130 2 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A member must not serve as president and vice president at the same time. The other offices may be held by the same member. The other offices of the secretary and assistant treasurer need not be held by a member. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and detemvnations showing the vote of each member on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The Economic Development Director shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the EDA may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 5. Functions. Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act. 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the "Fund ") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the EDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 321892v6 MNl MN 190-130 3 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, fiunish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. 321892v6 MNI MN 190-130 4 (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following: (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defiled in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this 321892v6 MNi 1b1N190 -130 5 Enabling Resolution or the Allocation Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. Approved by the City Council of the City of Monticello on this 14th day of January 2008. Mayor ATTEST: wt 321892v6 MNI MN190 -130 6 EDA Agenda — 02/13/13 5d. Review and adopt EDA Bylaws. (AS) A. REFERENCE AND BACKGROUND The EDA is asked to review the Bylaws of the Economic Development Authority and to recommend any necessary amendments. The EDA's bylaws outline the role of the EDA officers, executive director, and the general meeting rules and procedures. Similar to the EDA Enabling Resolution, EDA Attorney Martha Ingram of Kennedy & Graven has noted that the bylaws should be amended to reflect the change in Executive Director from Economic Development Director to City Administrator. This amendment pertains to Article IV of the document. A draft of the bylaws with this change is presented for adoption by the EDA. B. ALTERNATIVE ACTIONS Motion to adopt the Bylaws of the Economic Development Authority as amended, dated February 13', 2013. 2. Motion of other. C. STAFF RECOMMENDATION Staff recommends adoption of the Bylaws of the Economic Development Authority as amended. D. SUPPORTING DATA Bylaws of the Economic Development Authority, December 15, 2010 Bylaws of the Economic Development Authority, February 13', 2013 BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.108 1, as amended. ARTICLE II - THE COMMISSIONERS Section 1. ,Appointment, Terms, Vacancies, Pay, and Removal: Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution ") and Section 2 -3 -1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota (the "Ordinance "). ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and 1 325599v5 MNI MN190 -130 other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by check only; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The Economic Development Director shall be designated as Executive Director of the Authority. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. 2 325599v5 MNI MN 190-130 Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director, ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority maybe called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. ' Quorum. At any meeting of the Authority, the presence of four commissioners shall onstitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution, the Ordinance, or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employees. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Section 3. Legal Services. The Authority may use the services of the city attorney or 3 325599v5 MNI MN 190 -130 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing, The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution and Section 2 -3 -4 of the Ordinance. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution and Section 2 -3 -5 of the Ordinance. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution or Ordinance, the Enabling Resolution and Ordinance shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: December 15, 2010. (Seal) Signed: President 4 325599v5 MNI MN 190-130 BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.1081, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution ") and Section 2 -3 -1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota (the "Ordinance "). ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and 3255990 MNI MN 190 -130 other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by check only; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator shall be designated as Executive Director of the Authority. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. 2 3255990 MNI MN 190 -130 Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution, the Ordinance, or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employees. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Section 3. Leal Services. The Authority may use the services of the city attorney or 3 3255990 MNI MN 190 -130 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing. The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution and Section 2 -3 -4 of the Ordinance. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution and Section 2 -3 -5 of the Ordinance. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. hi any instance where these bylaws are in conflict with the Enabling Resolution or Ordinance, the Enabling Resolution and Ordinance shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: February 13', 2013. (Seal) 4 3255990 MNI MN 190 -130 Signed: President Executive Director EDA Agenda — 02/13/13 6. Consideration to adopt a management scenario for TIF District 1 -22. (JO /AS /WO) A. REFERENCE AND BACKGROUND In December of 2012, the EDA adopted the TIF 1 -22 Management Plan prepared by Northland Securities. The Management Plan outlined a set of "Next Steps" for the EDA in managing TIF 1 -22. The first step was to determine if there was a reason to continue collecting increment in the district. From that point, the EDA could take appropriate action to decertify parcels, return excess increment, and modify the TIF plan as necessary. To accomplish the first step as recommended by the management plan, the EDA is asked to adopt one of the three management scenarios for the district. In discussing and ultimately adopting one of the scenarios, the EDA will have established whether there is a "reason" and a rationale for continuing to collect increment within the district. The Management Plan clearly summarizes the three possible scenarios. The plan scenarios each include information on the amount of pooled increment available for use and the amount of unrestricted funds returned to the City after increment is returned to the County. In summary, Scenario A keeps the district intact and allows it to continue to generate increment until its required decertification date. This approach would provide the EDA with the maximum amount of financial resources (through pooling of the increment) for achieving its redevelopment goals. Scenario C takes the opposite approach, decertifying all parcels within TIF 1 -22 except those with remaining obligations. It would not utilize increment funds available under pooling, instead returning unspent increment to Wright County. This would create the greatest amount of funding returned directly to the City (not the EDA). Scenario B provides a "middle ground" option, allowing for some pooling expenditures with the removal of all parcels without obligation from the district. The EDA will need to review and discuss how each of the scenarios will impact its ability to support and accomplish the overall economic development goals of the City. Once the EDA has determined which management scenario will best serve its goals, the EDA will be able to move forward to the accomplishment of the other stated "Next Steps ". The EDA's action on this item will be forwarded to the City Council for acceptance, as required by the EDA's Enabling Resolution. B. ALTERNATIVE ACTIONS 1. Motion to recommend Scenario as the management strategy for TIF District 1 -22 and to direct staff to prepare a resolution for adoption of the same. 2. Motion of other. C. STAFF RECOMMENDATION Staff recommends the adoption of Scenario A as the management strategy for TIF District 1 -22. The district was originally developed to accomplish the redevelopment envisioned for the downtown with the 1997 Revitalization Plan, and under Scenario A, would remain in place to continue to serve redevelopment goals as most recently defined by the Embracing Downtown Plan. D. SUPPORTING DATA A. TIF 1 -22 Analysis & Management Plan B. TIF 1 -22 Map 2 i 1 TIF Analysis and Management Plan Scenarios For TI F District No. 1 -22 Monticello Economic Development Authority December 12, 2012 NORTHLAND STRATEGIES Special Projects Group Contents Introduction and Executive Summary Introduction................................................................................................................... ..............................1 ExecutiveSummary ..................................................................................................... ..............................1 NextSteps ...................................................................................................................... ............................... 3 Table A - Comparison of Possible Scenarios for Different Decisions on Use of TIF ............ 4 Regulatory Framework and Statutory Factors 5 RegulatoryFramework .............................................................................................. ..............................5 StatutoryFactors ......................................................................................................... ............................... 5 Administrative Expense ............................................................................ ..............................5 4 -Year Knock -Down ................................................................................... ..............................5 Pooling......................................................................................................... ............................... 6 FiveYear Rule ............................................................................................... ..............................6 Decertification............................................................................................ ............................... 7 ExpandedTax Base ..................................................................................................... ............................... 7 District Summary and Potential Scenarios for Use of TIF 8 DistrictSummary ........................................................................................................ ............................... 8 ScenarioA ...................................................................................................................... .............................11 ScenarioB ...................................................................................................................... .............................13 ScenarioC ...................................................................................................................... .............................15 INTRODUCTION This report serves as a follow -up report to the 2012 TIF Management Report adopted by the Economic Devel- opment Authority (EDA) on June 20, 2012 and the City Council on July 9, 2012. This report addresses man- agement strategies that are specific to the Downtown TIF District No. 1 -22 ( "TIF22 "). TIF22 is the largest and most complex district in Mon- ticello. The geographic area of the District is an impor- tant redevelopment focus area in the City's Compre- hensive Plan. Opportunity exists to use tax increment from this district to facilitate project development, with certain limitations. The Five -Year Rule in the TIF Act limits the ability of the EDA to use all of the tax increment that otherwise would be available. The 2012 TIF Management Report recommended the following additional investigation for TIF22: 1. Verify 4 -year knock -down status of parcels. 2. Analyze pooling capacity. 3. Analyze District revenues. 4. Identify Key Investments. This report addresses items 1 through 3 and provides information needed by the EDA to proceed with iden- tification of key investments that it may decide to fund with available tax increment from TIF22. The investigations undertaken for this report did not include a review of tax increments previously paid to the City for the community center area redevelop- ment costs. This was mentioned in the 2012 TIF Man- agement Report as a management strategy to be ad- dressed. City is reviewing and may address this item separately with the EDA. EXECUTIVE SUMMARY Knock -Down Status Evidence of Qualifying Activities With limited exception, the analysis shows the EDA is in compliance with the 4 -year knock -down rule. (Explanation of the rule can be found on page 5.) The knock -down date for TIF22 is June 30, 2001. The analysis shows the existing tax increment balance in TIF22 includes approximately $42,000 of increment (which is about 1% of the total tax increment balance) that should be returned to Wright County in compli- ance with the knock -down rule. The City received one additional year (paid in 2002) of tax increment on parcels that did not have certain qualifying activities occur within four years of the certification date of the district. These parcels should have been removed one year earlier than they were. The City of Monticello will receive approximately $17,300 of the $42,000 back through redistribution of the increment as General Fund tax revenue. Reinstatement of Parcels with Activity Parcel analysis shows the EDA has an opportunity to reinstate parcels previously removed from the district. Parcels that had qualifying activities occur after the ini- tial knock -down date of June 30, 2001 are eligible to be reinstated. However, the value of reinstating parcels is limited unless the parcels to be reinstated will have future development to generate tax increment. The law requires that parcels be reinstated at their current value not the value that existed at the time of original certification. Use of tax increment derived from these parcels is limited by the five -year rule and pooling re- strictions. Introduction and Executive Summary 1 Pooling Capacity There is existing tax increment derived from prop- erty within TIF22 that may be spent under pooling authority (see Table A on page 4 for dollar amounts). The EDA may pool up to 25% of the tax increment de- rived from property within the district (over the life of the district). Administrative expenditures must be in- cluded in the 25% limit. Expenditures must be within the Redevelopment Project Area No. 1. The EDA may increase the limit on Pooling by 10% for the purpose of Housing. There are conditions on the use of the ad- ditional pooling for housing that must be met. North- land has provided the EDA with a separate memoran- dum on the authority for pooling for housing. Estimates for future tax increment available for Pool- ing depends on which parcels the EDA decides to keep within TIF22. The EDA has options to remove parcels which are no longer needed to meet obligations. In addition to having a choice on which parcels to retain within the TIF district, the EDA also has the option to reinstate certain qualified parcels that were previously removed that could provide additional tax increment if future development occurs on an undeveloped parcel. Only the revenues derived from tax increments paid by the properties in the TIF district are subject to pooling restrictions and the five -year rule. Proceeds from other revenue such as the sale or lease of property purchased with tax increments, principal and interest received on loans or advances made with tax increments, invest- ment earnings on or from tax increments, repayments to an authority, and market value homestead credit paid to the authority are not subject to the restrictions, even though they are all tax increments. The City has unspent tax increment revenue that was not de- rived from property that is available to be spent on eligible project costs. If the tax increment revenue it is not spent on eligible project costs it will need to be returned to the County as excess tax increment. District Revenues Three different scenarios are presented in the report to provide a framework for the different choices the EDA has with respect to existing and future district revenues. The scenarios are intended to illustrate impact and do not represent the only scenarios. Ulti- mate decisions made by the EDA may represent slight variations of the scenarios shown in the report. The scenarios include projections on future revenues and expenditures. The EDA's decisions on spending of tax increment and selection of parcels to remain in the district has impli- cations to the City's General Fund and to the City's general tax base. Advance removal of parcels from TIF22 (in advance of the 2024 decertification date) will increase the City's general tax base sooner than anticipated. And, a decision to return unspent tax in- crement to the County will provide cash to the City's General Fund. (Excess tax increment is redistributed to the local taxing jurisdictions based on relative share of the tax rate.) The three scenarios presented for use of district rev- enues are as follows: • Scenario A - assumes the EDA acts to retain all cur- rent 58 parcels within TIF22 for the remaining life of the district in order to maximize available tax in- crement to be spent under pooling authority. This scenario provides the greatest amount of resources for development projects. Introduction and Executive Summary 2 • Scenario B - assumes the EDA acts to remove all but three parcels from TIF22 and to therefore limit but still proceed with spending a reduced amount of tax increment under pooling authority. This scenario provides additional resources for devel- opment projects but less than under Scenario A. • Scenario C - is similar to Scenario B in that it as- sumes the EDA acts to remove all but three parcels from TIF22. However, under Scenario C the EDA would not spend increment under pooling author- ity. Unspent tax increment would be returned to the County for redistribution to the local taxing ju- risdictions earlier (possibly as soon as 2013) than under the other two scenarios. Scenario C pro- vides the greatest amount of return of tax incre- ment to the local taxing jurisdictions. The portion of tax increment revenue collected that cannot be used to pay for existing obligations or spent under pooling will need to be declared as excess tax increment and returned to Wright County. The tim- ing of the return of the excess tax increment may be at the end of the district in 2024, or sooner, depending on decisions made about the use of tax increment funds and the timing of expenditures. The City will receive its proportionate share of any tax increment revenue back through redistribution based on the City's re- spective share of the local tax capacity rate. NEXT STEPS The next steps for the EDA to consider for use of dis- trict revenues for TIF22 are as follows: 1. Determine if reason to collect future tax increment. • Which specific projects might the EDA fund with pooled tax increment and what is the cost of these projects? 2. Determine if any parcels should be reinstated. • For what purpose will tax increment gener- ated from the reinstatement of parcels (assum- ing future development were to occur on these parcels) be used? 3. Determine if "usable' funds should be retained or redistributed to the local taxing jurisdictions. • How might the City benefit overall from receiv- ing (one -time) redistributed tax dollars into the City's General Fund and the earlier than antici- pated increase in general tax base (from the re- moval of parcels presently within TIF22)? 4. Make spending plan for usable funds (current and future) and (if needed) modify TIF Plan. 5. As needed, act to decertify parcels. 6. Determine funds for redistribution. Introduction and Executive Summary Introduction and TABLE A Executive Summary Comparison of Possible Scenarios for Different Decisions on Use of TIF from TIF District No. 1-22 Dollar Figures Shown are Estimated Total Life of District Scenario A Scenario B Scenario C Retain All Retain Three $0 Parcels Within Parcels Within Retain Three District, District, Parcels Within Authorize Authorize District, No Pooling Pooling Pooling Source of Funds (not including bond proceeds) Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Total Use of Funds (Spent /Committed and Available for New Projects) Increment spent /committed Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Return of excess tax increment to County Total Estimated City Portion of Excess Tax Increment Returned for Distribution* * timing of receipt of funds varies across scenarios $7,359,289 $2,155,538 $9,514,827 $4,207,161 $2,099,181 $6,306,343 $4,207,161 $1,884,558 $6,091,719 $2,824,492 $2,824,492 $2,824,492 $3,463,136 $2,618,748 $0 $735,929 $420,716 $0 $2,491,270 $442,386 $3,267,227 $9,514,827 $6,306,342 $6,091,719 $996,508 $176,954 $1,306,891 For a year by year review of estimated increment available for "new" redevelopment projects (including administrative expense) and increment available for "new" housing projects (income qualified) see the "District Summary and Poten- tial Scenarios for Use of TIF' Section of the report. Scenario A is shown on page 12 Scenario B is shown on page 14 Scenario C is shown on page 16 4 Regulatory Framework Tax increment financing is governed by a complex set of statutes that have changed over time. An important nuance of TIF is the relevance of the laws in existence at the time the district was established. These laws es- tablish the majority of critical criteria for the use of tax increment from TIF22. Most aspects for the on -going use of tax increments from the district are governed by the statutes in effect when the district was established. Among these factors are: • Ability to spend money outside of the TIF district (pooling authority). • Application of the 5 -year rule. • Limitations on administrative expense. Within statutory constraints, the parameters for the use of tax increment financing are set in the TIF plan. Tax increments cannot be used for purposes not au- thorized in the plan. The amount of spending cannot exceed the estimated project costs contained in the plan. The City cannot incur bonded indebtedness un- less 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. Direct reference to the actual TIF plan for TIF22 should be made before mak- ing changes or authorizing new uses of tax increment from any district. Statutory Factors Several elements of State Law are particularly relevant to the ongoing management of TIF22. Administrative Expense Based on the request for certification date for TIF22, June 25, 1997, the limitation on administrative expens- es is that administrative expense cannot exceed 10% of the lesser of the total estimated tax increment ex- penditures authorized by the TIF plan or 10% of the total tax increments for the project. Increments used to pay county administrative expense are not subject to the 10% limit on administrative expense (2009 amend- ment to the TIF Act). 4 -Year Knock -Down The current listing of the 58 parcels in TIF22 (pay 2012) does not match the original list of 231 certified parcels in the TIF Plan. Parcels have been removed /added through a combination of the "knock down rule" and changes in platting. State law requires certain activi- ties to occur on each parcel in the TIF district within four years of certification. These activities are: • Demolition, rehabilitation, or renovation of prop- erty. • Qualified improvement of a street adjacent to a parcel but not installation of utility service includ- ing sewer or water systems. • Other site preparation. The value of parcels that failed this test have been removed from the tax increment calculations for the district. State Law required that the EDA needed to provide the County with evidence related to qualify- ing activity on each parcel by February 1 of the year following end of the knock down period, which was February 1, 2002 for TIF22. It is important to note that the parcels are not removed from the district. Parcels that are knocked down can be restored to the district when the EDA certifies to the County Auditor that qualifying activity has com- Regulatory Framework and Statutory Factors 5 menced. The value that is restored to the original tax capacity is the most recent tax capacity value of the parcel. The table below provides a summary of the changes in parcels within TIF22 from original certification to today (pay 2012). 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 request- ing certification after May 1, 1988. TIF22 is a redevelopment district and is subject to a 25% limitation. The pooling limit is calculated based on total tax increment revenue derived from property within the district. Administrative expense applies to this restriction. The amount that can be spent outside of the TIF district is net of administrative expense. Timing is an important factor in evaluating the poten- tial for expenditures outside of the TIF district. The opportunity for pooling exists only while there are ob- ligations to be paid from tax increments (see Five Year Rule below). Once all obligations have been paid, the district must be decertified. The statutory pooling restrictions applicable to TIF22, allow for an increase by up to 10% in the out of dis- trict 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 authorize the expenditures. Five Year Rule The five -year rule is one of the most important TIF management limitations. TIF22 is subject to the Five Year Rule. In simple terms, the EDA had 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 ad- ministrative expense, or on authorized expenditures that comply with pooling restrictions. The pooling restrictions apply regardless of whether the tax incre- ments are spent inside or outside of the TIF district. To avoid restriction under the five -year rule, one of the following actions needed to take place within five years of certification of the district: 1. Revenues are actually paid to a third party with respect 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 Regulatory Framework and Statutory Factors A Parcels Added Parcels Removed Cumulative Parcels Remaining Original parcels certified 613011997 231 231 Parcels requested for removal by City 111612003 (x8 45 Parcel adjusted by County (i.e, replats and her changes) h (15) 56 Parcels requested for add back by City 21812003 3 59 Parcels requested for add bac0emoval by City 811212003 3 (2) @ Parcels requested for removal by city 1212112010 (2) 58 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 request- ing certification after May 1, 1988. TIF22 is a redevelopment district and is subject to a 25% limitation. The pooling limit is calculated based on total tax increment revenue derived from property within the district. Administrative expense applies to this restriction. The amount that can be spent outside of the TIF district is net of administrative expense. Timing is an important factor in evaluating the poten- tial for expenditures outside of the TIF district. The opportunity for pooling exists only while there are ob- ligations to be paid from tax increments (see Five Year Rule below). Once all obligations have been paid, the district must be decertified. The statutory pooling restrictions applicable to TIF22, allow for an increase by up to 10% in the out of dis- trict 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 authorize the expenditures. Five Year Rule The five -year rule is one of the most important TIF management limitations. TIF22 is subject to the Five Year Rule. In simple terms, the EDA had 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 ad- ministrative expense, or on authorized expenditures that comply with pooling restrictions. The pooling restrictions apply regardless of whether the tax incre- ments are spent inside or outside of the TIF district. To avoid restriction under the five -year rule, one of the following actions needed to take place within five years of certification of the district: 1. Revenues are actually paid to a third party with respect 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 Regulatory Framework and Statutory Factors A 3. Q of the use of that term under section 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 before or with- in five years after certification of the district and the revenues are spent under the contractual obli- gation. 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 unreim- bursed costs. 5. Expenditures are for special housing and infra- structure purposes authorized by State Law. Decertification The evolution of State Law governing TIF has in- creased the incentive to decertify districts at the earli- est opportunity. The factors that influence the decerti- fication decision include: • The five -year rule and pooling limits restrict the ability to use uncommitted tax increments to sup- port other endeavors. • The value of decertified TIF districts becomes available for general taxation. The result is a lower tax rate. • Excess tax increments are sent to the County for redistribution to taxing jurisdictions. Expanded Tax Base The early removal of developed parcels from the TIF district will not only allow the City to benefit from the redistribution of excess funds, it will also add to the local tax base. The tax capacity value captured by the TIF district becomes available for general taxation. The removal of parcels described in this report (under Scenarios B and C) will add approximately $200,000 in tax capacity to the City's general tax base. At the City tax rate for pay 2012, this value is equivalent to about $95,000 in annual property tax revenue to the City. Regulatory Framework and Statutory Factors 7 The Downtown TIF District (1 -22) is the largest and City Number ...................................................................... ...........................1 -22 most complex district in Monticello. This district County Number ................................ ............................... ............................622 provides an excellent illustration of the challenges of Name ............................ ............................... .......................Downtown District implementing a large TIF district subject to the con- Type .......................................................... ............................... Redevelopment straints of the five -year rule. Established...................................... ............................... ........................3 /10/97 The five -year rule time period has ended. Fund bal- Certification Requested ............. ............................... ........................6 /25/97 ance may only be spent on the following activities: Certified ........................................... ............................... ........................6 /30/97 • Existing obligations Year of First Increment ................... ............................... ...........................1999 4 -Year Knockdown ....................... ............................... ........................6 /30/01 • Administrative expense 5 -Year Rule ...................................... ............................... ........................6 /30/02 • Development activities authorized in the TIF Decertification ............................. ............................... .......................12 /31/24 plan and within the pooling restrictions. Original Tax Rate .......................... ............................... .....................112.618% Tax increments from District 1 -22 is pledged to pay- Original TaxCapacityvalue ....... ............................... ........................157,311 ment of bonds. The pledge of increment to the G.O. Current Base Tax capacity value ............................ ........................178,814 Tax Increment Bonds, Series 2004A, ended in 2010 Current (Pay 2012) Tax Capacity ............................. ........................458,208 when the bonds were called and prepaid in full. (This Parcels (Pay 2012) .............................................................. .............................58 issue was a current refunding of the original $2,150,000 155- 010- 002011 155- 010- 036130 155 - 010 - 005010 G.O. Temporary Tax Increment Bonds, Series 2001.) 155- 010 - 005090 155- 010- 051060 155- 010- 006040 In addition to the prior pledge to the now retired 2004 155- 010- 051100 155- 010 - 007020 155- 010 - 052010 bonds, tax increment from District 1 -22 is pledged to 155- 010- 011030 155- 010 - 052060 155- 010- 011040 the payment of two developer notes. 155- 010 - 052110 155- 010- 014050 155- 010- 053130 155- 010 - 016070 155- 010 - 054030 155- 010 - 016090 1. The development agreement with Master Fifth 155- 010- 069080 155- 010- 016100 155- 040 - 002100 Avenue, Inc. provides for a note in the amount of 155- 010- 017030 155- 076- 001010 155- 010- 017060 $185,000 (shown as 22.5 Amoco in projections). 155- 137 - 000100 155- 010 - 018060 155- 137 - 000200 The note is payable with tax increments from 155- 010 - 018080 155- 137 - 000300 155- 010 - 020010 parcels 155 - 010 - 036130 and 155 - 010 - 036140. The 155 -137- 000400 155 - 010 - 020030 155 -137- 000500 note has an outstanding balance of $184,816 as of 155- 010 - 032020 155- 137 - 000600 155- 010 - 033011 12/31/2011. The note does not accrue interest. The 155- 137 - 000700 155- 010 - 034060 155- 144 - 000010 note is set to terminate no later than 2/1/2023. 155- 010 - 034130 155- 144 - 001020 155- 010 - 034150 2. The development agreement with BBF Properties, 155- 144 - 001030 155- 010 - 035060 155- 144 - 001040 Inc. provides for a note in the amount of $500,000. 155- 010 - 035120 155- 144 - 001050 155- 010 - 035130 The total principal on the note has grown to 155- 144 - 001060 155- 010 - 036040 155- 144 - 001070 $1,047,919 with the accrual of unpaid interest, as 155- 010 - 036061 155- 144 - 001080 155- 010 - 036110 155- 144 - 001090 155- 010 - 036111 155- 010 - 036140 District Summary and Potential Scenarios for Use of TIF District 1 -22 (Downtown) Redevelopment FA r of 12/31/2011 (shown as 22.1 Cub in projections). The note is payable with tax increments from par - cel 155- 076 - 001010. The note is set to terminate no later than 2/1/2020. Tax increment from District 1 -22 was pledged to pay for up to $281,250 in redevelopment costs related to the construction of the Community Center. The EDA (HRA) agreed to pay the City $5,625 semi - annually be- ginning August 1, 2000. The status of the payments is under review by the City to confirm the amount of the outstanding obligation, if any. Actions Taken Since 2009 Outstanding bonds from Series 2004A were called and paid in full in 2010. The City requested guidance from Kennedy & Grav- en (memo dated February 2, 2010) and Ehlers (memo Dated July 5, 2011) on options for use of funds from TIF District 1 -22. The City adopted a spending plan that allows for the temporary expansion of spending authority for Dis- trict 1 -22, as granted by MN Statute 469.176, SubdAm. The spending plan provides authority to use TIF from this District for the purpose of stimulating construc- tion. Construction must commence before July 1, 2012 and the TIF must be spent by December 31, 2012. Ab- sent the temporary flexibility offered by this authority, the EDA would have been required to remove all but three (3) parcels from TIF District 1 -22 after the out- standing obligation for the 2004 Bonds was satisfied in 2010. Administrative Tasks The task of reviewing expenditure transactions that occurred under temporary pooling authority and as authorized by the spending plan adopted by the EDA were completed by city staff. The results of this review did not cause the projected fund balance amounts to vary from what was shown in the adopted 2012 TIF Management Report. 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 exist- ing TIF district and the fund balance in the district cre- ate financial tools needed to facilitate redevelopment projects. However, the five -year rule limits the options and ability of the EDA to use these resources. Temporary Pooling Authority The temporary pooling authority provided by the Leg- islature in the Jobs Bill provided a short term window to access the available fund balance for offering assis- tance to project that would otherwise not qualify for use of funds from District 1 -22. In 2009, the EDA acted to approve a spending plan under the temporary pool- ing authority to assist with development (Walgreens). Additional Investigations As recommended in the adopted 2012 TIF Manage- ment Report for this District, several additional inves- tigations have been completed. 1. Verify knockdown status of parcels. Over the life of this District, parcels have been removed under the knockdown provisions of State Law. The City has evidence that the parcels that remain in the district met the 4 -year knock -down rule. In plan- ning for the future of funds available within TIF22, the analysis completed confirms that the tax capac- ity calculations are based on the correct parcels. District Summary and Potential Scenarios for Use of TIF District Summary and 2. Anal)�ze pooling capacity. The analysis completed Potential Scenarios for provides information on the ability to make expen- Use of TI F ditures within the pooling limits to evaluate future options for TIF22. The analysis required two pieces of information: (1) total estimated administrative expense over the life of the district and (2) total es- timated tax increment revenue derived from prop- erty and tax increment revenue "not" derived from property over the life of the district. The analysis also considered the ability to increase the pooling amount for housing purposes. 3. Analyze District revenues. All prior revenues col- lected in TIF22 were reviewed in order to deter- mine if any funds are not "tax increments ". The analysis did not identify any such monies. The statutory definition of tax increment includes the actual tax revenues derived from property and other funds that are derived from the tax incre- ments (i.e., interest income). 4. Identify Key Investments. This is work that the EDA will need to undertake. Analysis shows that the TIF22 has the legal and financial capacity to continue to undertake development activities in the Downtown area should the EDA to determine it wants to do so. The alternative would be to re- turn the tax increment as excess to the County for redistribution to the local taxing jurisdictions. Satisfy Commitment to Community Center The investigations conducted did not include a review of tax increments previously paid to the City for com- munity center area redevelopment costs. Existing fund balance should be used to pay the remaining amount (estimate to be about $10,000), if there is in fact an out- standing balance. The City will perform this analysis. W SCENARIO A Scenario A assumes the EDA acts to retain all current 58 parcels within TIF22 and acts to maximize avail- able increment for Pooling. This scenario provides the greatest amount of resources for future development projects. It also requires that TIF22 remain in existence the full duration of the district, until year 2024, in or- der to leverage future tax increments and maximize the amount of revenue expended under pooling au- thority in earlier years. It is not assumed under Scenario A that parcels previ- ously removed from the district are reinstated. The reinstatement of parcels will only provide additional tax increment if development occurs on these parcels after reinstatement to the district. Key items to consider with proceeding under Scenario A are as follows: • The amount of future tax increment to be collect- ed and the ability to spend pooled tax increment in earlier years on development projects is maxi- mized. • The City will not realize an immediate benefit from an increase in general tax base that would other- wise result from early removal of 55 of the cur- rent 58 parcels from the district. The approximate $200,000 in tax capacity of the 55 parcels that could be removed represents the equivalent of about $95,000 in annual tax revenue to the City (based on pay 2012 property tax rate). The City will realize an increase in general tax base in the future when TIF22 is decertified. • City receipt of excess tax increment (one -time money) may not be realized until the end of the district, which is year 2024. District Summary and Potential Scenarios for Use of TIF 11 District Summary and City of Monticello Increment spent /committed 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 Increment available for "new" redevelopment projects (incl admin) 2,817,598 160,000 160,000 160,000 90,000 10,000 10,000 10,000 10,000 10,000 10,000 15,538 3,463,136 Potential Scenarios for Tax Increment Financing District No. 1-22 735,929 Not available for spending- excess increment - - - - - - - - - - - - - 2,491,270 2,491,270 Total Use of Tax Increment 2,123,011 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 9,514,827 12 Use of TIF SCENARIO Projected Scenario A Accounted for in Prior Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District Source of Funds Tax increment revenue derived from property in district 3,268,866 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 7,359,289 Tax increment revenue not derived from property in district 1,831,657 52,901 59,550 65,145 3 2,843 4,380 5,974 8,999 13,655 18,372 24,462 30,646 36,951 2,155,538 Subtotal tax increment 5,100,523 367,549 374,198 379,793 314,651 317,491 319,028 320,622 323,647 328,303 333,020 339,110 345,294 351,599 9,514,827 Bond proceeds 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 374,198 379,793 314,651 317,491 319,028 320,622 323,647 328,303 333,020 339,110 345,294 351,599 12,749,969 Use of Funds Increment spent /committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - 1,457,598 - - - - - - - - - - - 1,497,444 Administrative expenditures 212,378 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 342,378 Subtotal 252,224 10,000 1,467,598 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1,839,822 Pooled tax increment for housing purposes - - 735,929 - - - - - - - - - - - 735,929 Expenditure of TIF revenue not dervied from property 270,000 1,350,000 150,000 150,000 150,000 80,000 5,538 2,155,538 Return of excess tax increment to County - - - - - - 2,491,270 2,491,270 Total Use of Funds 5,358,153 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 12,749,969 Beginning Fund Balance - 2,977,512 3,257,267 144 142,144 219,001 298,697 449,931 682,759 918,612 1,223,089 1,532,283 1,847,567 2,169,035 - Ending Fund Balance 2,977,512 3,257,267 144 142,144 219,001 298,697 449,931 682,759 918,612 1,223,089 1,532,283 1,847,567 2,169,035 (0) (0) Estimated City ofMonticello's portion ofexcess tax increment 996,508 996,508 Use of Tax Increment (Spent /Committed Vs. New Spending) Increment spent /committed 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 Increment available for "new" redevelopment projects (incl admin) 2,817,598 160,000 160,000 160,000 90,000 10,000 10,000 10,000 10,000 10,000 10,000 15,538 3,463,136 Increment available for "new" housing projects (income qualified) 735,929 - - - - - - - - - - - 735,929 Not available for spending- excess increment - - - - - - - - - - - - - 2,491,270 2,491,270 Total Use of Tax Increment 2,123,011 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 9,514,827 12 SCENARIO B Scenario B assumes the EDA acts to remove 55 of the 58 parcels currently within TIF22 (effective for taxes pay- able in year 2013) and to therefore limit the amount of tax increment revenue that is available for new spend- ing under pooling authority. This scenario provides additional revenue for project spending but less than what otherwise would be available under Scenario A. Key items to consider with proceeding under Scenario B are as follows: • Limits the amount of future tax increment to be collected but still allows for maximizing the abil- ity to pool existing tax increment (currently within TIF22). • City will immediately benefit from an increase in tax base from the removal of parcels from the dis- trict at this time. The unanticipated increase in tax capacity would begin in year 2013 and result in lower than anticipated tax rates for taxes payable in 2013. The estimated $200,000 increase in tax ca- pacity for the City is equivalent to about 1% of the City's tax capacity. • City receipt of excess tax increment (one -time money) may not be realized until the end of the district, which is year 2024. • Scenario B assumes the City does not return excess tax increment until the end of the district and out- standing obligations are met. The City could de- cide to return tax increment sooner, depending on timing of future pooled project spending. District Summary and Potential Scenarios for Use of TIF 13 City of Monticello Tax Increment Financing District No. 1-22 SCENARIO B Source of Funds Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Subtotal tax increment Bond proceeds District Summary and Potential Scenarios for Use of TIF Projected Scenario B Accounted for in Prior Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District 3,268,866 314,648 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 4,207,161 1,831,657 52,901 59,550 65,145 8,007 9,127 9,104 9,103 9,101 9,100 9,099 9,097 9,096 9,094 2,099,181 5,100,523 367,549 138,174 143,769 86,631 87,751 87,727 87,727 87,725 23,756 23,755 23,753 23,752 23,750 6,306,343 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 138,174 143,769 86,631 87,751 87,727 87,727 87,725 23,756 23,755 23,753 23,752 23,750 9,541,485 Use of Funds Increment spent /committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - 669,566 - - - - - - - - - - - 709,412 Administrative expenditures 212,378 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 342,378 Subtotal 252,224 10,000 679,566 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1,051,790 Pooled tax incrementfor housing purposes - - 420,716 - - - - - - - - - - - 420,716 Expenditure of TIF revenue not dervied from property 270,000 1,817,000 12,182 2,099,182 Return of excess tax increment to County - - 442,386 442,386 Total Use of Funds 5,358,153 87,794 2,995,076 87,794 87,794 87,794 87,794 87,794 87,794 23,826 23,826 23,826 23,826 478,394 9,541,484 Beginning Fund Balance - 2,977,512 3,257,267 400,365 456,341 455,178 455,135 455,068 455,001 454,932 454,862 454,791 454,718 454,644 - Ending Fund Balance 2,977,512 3,257,267 400,365 456,341 455,178 455,135 455,068 455,001 454,932 454,862 454,791 454,718 454,644 0 0 Estimated City ofMonticello's portion ofexcess tax increment - - - - - - - - - - - - - 176,954 176,954 Use of Tax Increment (Spent /Committed Vs. New Spending) Increment spent /committed 2,123,011 Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Not available for spending - excess increment - Total Use of Tax Increment 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 2,496,566 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 22,182 2,618,748 420,716 - - - - - - - - - - - 420,716 - - - - - - - - - - - - 442,386 442,386 87,794 2,995,076 87,794 87,794 87,794 87,794 87,794 87,794 23,826 23,826 23,826 23,826 478,394 6,306,342 14 SCENARIO C Scenario C assumes the EDA acts to remove 55 of the 58 parcels currently within TIF22 (effective for taxes payable in year 2013). Under Scenario C, in contrast to Scenario B, the EDA would not act to spend increment under the pooling authority. All available (uncommit- ted) tax increment revenue would be returned imme- diately to the County for distribution to the local tax- ing jurisdictions. This scenario does not provide any additional revenue for project spending. Key items to consider with proceeding under Scenario C are as follows: • Limits the amount of future tax increment to be collected to only what is needed to pay existing outstanding obligations. • City will immediately benefit from an increase in tax base from the removal of parcels from the dis- trict at this time. The unanticipated increase in tax capacity would begin in year 2013 and result in lower than anticipated tax rates for taxes payable in 2013. The estimated $200,000 increase in tax ca- pacity for the City is equivalent to about 1% of the City's tax capacity. • City receipt of excess tax increment through the redistribution of tax revenue to the local taxing ju- risdictions (one -time money) would be realized in year 2013. District Summary and Potential Scenarios for Use of TIF 15 City of Monticello Tax Increment Financing District No. 1-22 SCENARIO C Source of Funds Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Subtotal tax increment Bond proceeds District Summary and Potential Scenarios for Use of TIF Total Source of Funds 8,335,665 Projected Scenario C 9,326,861 Accounted for in Prior 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District 3,268,866 314,648 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 4,207,161 1,831,657 52,901 - - - - - - - - - - - - 1,884,558 5,100,523 367,549 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 6,091,719 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 9,326,861 Use of Funds Increment spent /committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - - - - - - - - - - - - - 39,846 Administrative expenditures 212,378 10,000 222,378 Subtotal 252,224 10,000 262,224 Pooled tax increment for housing purposes - - Expenditure of TIF revenue not dervied from property 270,000 270,000 Return of excess tax increment to County - 3,258,097 9,130 3,267,227 Total Use of Funds 5,358,153 87,794 3,335,891 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 22,956 9,326,861 Beginning Fund Balance - 2,977,512 3,257,267 0 830 1,660 2,490 3,320 4,150 4,980 5,810 6,640 7,470 8,300 - Ending Fund Balance 2,977,512 3,257,267 0 830 1,660 2,490 3,320 4,150 4,980 5,810 6,640 7,470 8,300 0 0 Estimated City ofMonticello's portion ofexcess tax increment - - 1,303,239 - - - - - - - - - - 3,652 1,306,891 Use of Tax Increment (Spent/Committed Vs. New Spending] Increment spent /committed Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Not available for spending - excess increment Total Use of Tax Increment 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 - - 3,258,097 - - - - - - - - - - 9,130 3,267,227 2,123,011 87,794 3,335,891 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 22,956 6,091,719 16 a \11 71'/f \m jv g' I \ � f / V® I io e 3 'gee jv 8A ib ' jy8 I I L/ / <!�/ 0 TI F District 1 -22 � _, 1997 Establishment Parcels Q 2012 County Records 1 inch = 100 feet CITY _/ EDA Agenda: 02/13/13 1 7. Executive Director’s Report. (JO/AS) Economic Development Chapter – Comp Plan Staff met with HKGi to review the preliminary data gathered for updating Chapter 2 of the Comprehensive Plan. HKGI has used a variety of resources to update the chapter’s information on population, age, income, employment, etc. They have also developed a strategy for incorporation of relevant data from the Business Retention & Expansion study and McCombs downtown market study. HKGi will present the data and discuss it s relat ionship to the Economic Development Chapter with t he small group of EDA, IEDC and Planning Commission members in February. A packet of materials, including the draft revision of Chapter 2 and current Chapter 4 with discussion points, will be sent on 2/8/13. The EDA’s representatives to that committee are Bill Tapper and Rod Dragsten. The date for the meeting has been set for Thursday, February 14th at 3:30 PM. Embracing Downtown & reStoreing Downtown Relocation of tenants continues to progress on Block 34. Three tenants remain in the building and Wilson Development Services continues to work toward their relocation. A current expense report is included with this packet. It is expected that the EDA will be down to two tenants within the month. The City has learned that the State of Minnesota will contribute $450,000 to the CSAH 75/TH 25 intersection improvements. This funding would be required to be utilized on or before FY2015. Wright County has also indicated that they would be willing to contribute an amount of funding equal to the cost of a street overlay for CSAH 75 in the project area. In addition, the City will find out in February whether it was successful in its third attempt at federal grant funding for the project. The need to complete improvements at the intersection will impact how quickly the Montgomery Farms buildings are demolished. This in turn, impacts the tools and resources available for private redevelopment projects. Staff has contacted EDA attorney Martha Ingram with the following related questions: 1. If buildings the EDA purchased for redevelopment need to come down in advance of redevelopment due to a major City road project, is there an interim time window that would still allow for the creation of a redevelopment district later, if we qualify the parcels appropriately? a. Does the fact that the buildings have to come down for a road project create some kind of automatic exemption still allowing for a redevelopment district in any case, as long as we can qualify the parcels before they come down? EDA Agenda: 02/13/13 2 The reSTOREing downtown effort continues to push forward. The group launched its website in January. Planning Commission can follow the group’s efforts at www.reSTOREingdtmonticello.org A status update meeting was scheduled for February 7 th, 2013. A verbal report on the meeting will be provided to the EDA at the regular meeting. Economic Development Position - Recap The City Council and EDA met in a joint workshop on January 28 th to discuss the next steps in hiring for an economic development position for the City. The City Administrator has proposed re-focusing the position towards external sales and marketing for the City. The intent would be to put a strong emphasis on lead development and prospecting outside the community with the intent of attracting business and jobs to the community. The EDA and Council indicated some support for the idea, but requested that staff prepare and bring back for review the following information: 1. Job description – other cities or entities with similar positions 2. Impact on budget – pay range, potential expenses, etc. 3. Performance measures – how to determine success? What combination of factors? Under this plan, the City Administrator, Community Development Director and Finance Director would continue to support the internal economic development functions of the City. IEDC Mission At its January meeting, the IEDC membership conducted an in-depth discussion regarding the benefits and purpose of the IEDC. Through discussion, the group reached a consensus that the IEDC served primarily as an advocate for the business community. The IEDC serves a valuable role in the opportunity for a cross-section of business to exchange ideas and information whic h supports business development and retention within the community. After reviewing three proposed mission statements, each with a different focus, the IEDC adopted a mission statement focused on advocacy and including reference to the group’s involvement with business communications. The final mission statement is listed below. The group also adopted a 2013 workplan, attached. The Monticello IEDC will advocate for industrial and economic growth within the City of Monticello by promoting awareness and communication efforts on behalf of the business community. EDA Agenda: 02/13/13 3 Transportation Updates The City is completing the feasibility report for the completion of 7 th Street West from Minnesota to Elm Street. The project is tentatively scheduled for summer 201 3, pending Council approvals and agreements with adjacent property owners. MnDOT will be completing an expansion of TH25 top four lanes south of Kjellberg’s Mobile Home Park in 2014. The expansion will include a reconfiguration of access points along the highway from Kjellberg’s to Cty. 106. In addition, MnDOT will be signalizing the TH25 and 106 intersection with the project. In 2014, MnDOT will also be working on I-94 to complete an additional lane between CSAH 18 and TH 25 exits to accommodate exiting and entering interstate traffic between the two interchanges, as well as an acceleration land onto eastbound i-94 from the TH 25 ramp. Economic Development Handbook Enclosed for the EDA’s reference is a new reference tool prepared by the Department of Trade and Economic Development and the Minnesota Economic Development Foundation. INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE 2013 WORKPLAN Mission Statement: The Monticello IEDC will advocate for industrial and economic growth within the City of Monticello by promoting awareness and communication efforts on behalf of the business community. Objective: The IEDC is dedicated to being pro- active in following the guidelines established in the Monticello Comprehensive Plan. It is the intention of the IEDC to work within the areas identified below as supporting actions and objectives: Land Use: a. Provide assistance in the updating of the Economic Development section of Comprehensive Plan Transportation: a. Continue to lead the City in moving forward key transportation projects by participating in the Transportation Advisory Committee. Economic Development: a. Ongoing Efforts i. Concierge Program — Breakfast w/Mayor & Administrator ii. Grow MN Visits and Business Tour iii. Business Recognition — Industry of the Year b. Focused Projects i. IEDC Networking /Prospecting ii. Support Restoreing Downtown iii. Support Bertram Chain of Lakes c. Communications i. Economic Development Website ii. Enews iii. City Admin /Community Development E- correspondence ECONOMIC DEVELOPMENT AUTHORITY HANDBOOK October 2011 i PREFACE In these uncertain economic times, it is more important than ever for cities to develop and utilize sound economic development procedures and practices to address an ever more complex and changing marketplace. This handbook has been prepared as a guide to assist local economic development leaders to utilize their limited resources in the best practical manner. Furthermore, this handbook seeks to ascertain methods in which one can better set up one’s EDA to make it more efficient and effective in utilizing scarce resources. The key to successful economic development is communication with local businesses to learn of their needs and concerns, and to determine how to best use the community’s resources to address those concerns. Throughout my career in various economic development roles, I have seen, firsthand, just how vital development tools such as EDAs, Housing and Redevelopment Authorities, and Port Authorities can be to a community in building a vibrant business climate and in generating significant employment opportunities. Early in my career at the Region Nine Development Commission, I would have given anything to have a document such as this to utilize! As a Business Finance Specialist with the Minnesota Department of Trade and Economic Development (now MN DEED) I was able to see directly just how important EDAs are to local communities and how they could be utilized to great effect by cities in Southern Minnesota. In addition, the ability to utilize EDA powers significantly benefited economic development through my tenure as Community Development Director in the City of Roseville and as City Administrator for Oakdale. In both communities, I found the use of an EDA (or similar authorities) to be an invaluable tool in many development and redevelopment projects. I would like to offer special thanks to a number of individuals for their hard work and dedication in updating this handbook. I would especially like to thank Mary Ippel from Briggs and Morgan for her experience and for her extensive help preparing this handbook. I would also like to thank the City of Oakdale staff including Assistant to the Administrator Dave Schaps, for coordinating the update of this handbook and compiling the information, and Intern Devin Swanberg for conducting the background research. In addition, my thanks to the Minnesota Economic Development Foundation for funding this project, the Minnesota Department of Employment and Economic Development for its review and subsequent publication of the handbook, and the Economic Development Association of Minnesota for its review of the handbook. We hope this guide will help you in your own economic development endeavors. Now go out there and create jobs and develop that tax base! Sincerely, Craig A. Waldron, City Administrator, ICMA-CM City of Oakdale ii ACKNOWLEDGEMENTS The Minnesota Economic Development Foundation would like to thank and acknowledge the efforts of Mary Ippel of Briggs and Morgan and the City of Oakdale staff on the writing and compiling of the information contained in this document. www.ci.oakdale.mn.us www.briggs.com iii TABLE OF CONTENTS Preface.............................................................................................................................................. i Acknowledgements ......................................................................................................................... ii Introduction to Local Economic Development Organizations ........................................................1 Business Organizations ............................................................................................................1 Development Corporations .......................................................................................................1 Government Organizations .......................................................................................................2 Formation and Operation of Economic Development Authorities (EDA) ......................................4 Reasons for Forming an EDA ..................................................................................................4 Procedures for Establishing an EDA ........................................................................................4 Board of Commissioners ..........................................................................................................7 Officers, Duties and Organizational Issues ..............................................................................9 Powers of EDAs ...........................................................................................................................16 General Powers and Purposes ................................................................................................16 Specific Powers ......................................................................................................................17 Financing and Bonding Powers ..............................................................................................23 Limitation of Powers ............................................................................................................25 Glossary .........................................................................................................................................27 Tables .............................................................................................................................................30 Sample Bylaws and Enabling Resolutions, ..................................................................................34 Sample Job Description ................................................................................................................48 Sample Revolving Loan Fund Policy ............................................................................................51 iv NOTICE The Minnesota Economic Development Foundation, the Minnesota Department of Employment and Economic Development, the Economic Development Association of Minnesota, and the authors and editors of this publication have used their best efforts in preparing this publication, and they make no representations or warranties with respect to the accuracy or completeness of the contents of this publication and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. The advice and strategies contained herein may not be suitable for your situation. Any interpretations and opinions are not intended to reflect any position of the Minnesota Economic Development Foundation, the Minnesota Department of Employment and Economic Development, the Economic Development Association of Minnesota, or the law firms, branches of government, or organizations with which the authors and editors are associated, unless they have been specifically adopted by such organizations. If legal advice or other professional assistance is required, the services of a competent professional person should be sought. 1 INTRODUCTION TO LOCAL ECONOMIC DEVELOPMENT ORGANIZATIONS There are several types of organizational structures available for community economic development programs. The type of organization that a community decides to establish is dependent on the special activities that are targeted. In some communities, business development and job creation are the primary goals, while others have housing development as a priority. Many communities have existing community economic development groups. There are several different kinds of organizations available that focus on economic growth. The type of growth that a community wishes to achieve will dictate what type of group will be formed. In addition, the purpose and creation of the organization will impact the statutory powers available to the entity. Each of these organizations may focus on different issues such as housing development, creation of jobs, and business development. The majority of community groups focus on economic growth opposed to housing growth. Outlined below is a brief description of each type of development organization. Business Organizations Commercial Club: Usually an incorporated 501(c)(4) or (6) organization whose purpose is to promote community and retail events. This group is usually made up of local retail owners and owners of local businesses. This is an unpaid organization consisting of volunteers and has no staff. Chamber of Commerce: A chamber is an incorporated non-profit 501(c)(4) or (6) that is generally affiliated with the state and national chamber of commerce. The chamber consists of local business professionals of the community who meet together to promote local businesses and the community. Generally, they have an elected board with limited staff. Larger chambers often deal with tourism and overall business development of the community. They sometimes are politically active and can be a powerful lobbying force when dealing with policy that affects the community's economic strategy. Chambers are generally active and can hold educational and other events for local businesses. Development Corporations For-Profit: A corporation formed to develop and sell industrial land and/or provide financing for business development within the community. Local investors can buy shares that can be paid in dividends from profits made on projects. Money invested in corporations can be repaid to the stockholders. The board is made up of shareholders and may or may not have staff. The corporation is subject to federal and state income tax. Non-Profit: A corporation formed to develop and sell industrial land and/or provide financing for business development in the community. Shares are sold or funds may be raised in other ways. No dividends are paid on shares. The non-profit corporation must obtain either 501(c)(3) or 501(c)(4) status from the IRS. Donations made to a 501(c)(3) by both individuals and 2 businesses are tax deductible. Obtaining 501(c)(3) status can be difficult, expensive and time- consuming and many communities are not willing to go through the lengthy process. Although 501(c)(4) status is less difficult to obtain than 501(c)(3) status, only a business may make contributions that are tax deductible, individual contributions are not eligible for the tax deduction. Also, organizations with 501(c)(3) are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of or against any candidate for elective public office. Government Organizations Economic Development Commission: A board used to advise a City Council, appointed by the Mayor and/or City Council. It has limited or no decision making authority and is used as a sounding board or a first point of contact for the City Council on development projects. The commission is used to draft strategies and policies for ratification and implementation of local plans on a volunteer basis. Housing Redevelopment Authority (HRA): An HRA is a public corporation with power to undertake certain types of housing and redevelopment or renewal activities. While state legislation conveys authority for housing and redevelopment in each City, it is up to the City Council to formally establish an HRA before it can do business and use its powers. Once a council legally establishes an HRA, it may undertake certain types of planning and community development activities on its own with council approval. Port Authority: This is a legal entity created by the State Legislature to promote the general welfare of a City's port district, increase the volume of commerce in the port and provide facilities for handling, storage and shipment of freight. The Port Authority actively develops commerce within the City and can enable business location and expansion. The powers of a Port Authority are more expansive then those of an HRA or an EDA. The State Legislature authorizes the creation of Port Authorities. A Port Authority is a separate political entity with the right to sue and be sued in its own name and is generally organized to increase commerce in a City. Unlike EDAs and HRAs, a Port Authority may issue general obligation bonds without holding an election. Joint Powers Board: This is a board created by multiple Cities, Townships or Counties for a certain purpose, such as economic development. The agreement between the units of government would specifically describe activities and powers that the board exercises in carrying out its duties. Economic Development Authority (EDA): An EDA is a legal entity created by a City or a County to facilitate a well-rounded development program by taking advantage of some of the port authority powers and all of the HRA powers. By combining and utilizing HRA, EDA and City powers, community leaders are able to create flexible business assistance and development programs. EDAs for example, are allowed, to buy and sell property; make loans and grants to businesses; provide guarantees or other credit enhancements; and to sell bonds. All Cities have authority from the State Legislature to create an EDA. The City may consolidate the EDA with an existing HRA or the City may establish the EDA as a separate entity. The City 3 Council may create an EDA by passing an enabling resolution. Before adopting the enabling resolution, the City must first conduct a public hearing. The enabling resolution establishes a Board of Commissioners for the EDA. The City Council can choose to serve as the EDA Board of Commissioners or create a board composed of council members and community members. The Mayor, with approval of the Council, appoints the Commissioners. The Board may consist of three, five or seven members who serve six-year terms. The Board is subject to the open meeting law. Rural Development Finance Authority (RFDA). A nonprofit corporation established by a County or group of Counties through special legislation. RFDAs are designed to facilitate the production and processing of agricultural products and promote jobs in agriculture and natural resources industries. The board is appointed by the County Board of Commissioners. Note: Please see appendix for a table comparing selected development laws. 4 FORMATION AND OPERATION OF AN ECONOMIC DEVELOPMENT AUTHORITY Reasons for Forming an EDA The Minnesota Legislature granted Cities the power to create economic development authorities in 1987. By giving Cities this ability they can promote economic growth. EDAs were created to work in conjunction with and to facilitate other economic development organizations such as Port Authorities and Housing Redevelopment Authorities (HRA). This allows Cities to create a better approach to economic development allowing them to create flexible business assistance and development programs. In addition to HRA powers, EDAs were authorized to exercise the powers of Cities in connection with City development districts and the powers of municipalities or development agencies in connection with municipal industrial development. By consolidating the powers of economic and housing development into one body, City officials are not only able to focus development on blighted areas but, also create programs that will prevent blight from occurring elsewhere within the community. The primary powers of an EDA: • Serve to promote business and to recruit new businesses • Issue revenue bonds. • Acquiring property. • Purchase and sell land. • Serve as a limited partner. • Make or guarantee or other credit enhancements. • Issue general obligation bonds (approved by election). Procedures for Establishing an EDA In order for a City to create an EDA the City Council must adopt a written resolution called an enabling resolution. A County can also create an EDA. This handbook describes the process for Cities to establish an EDA. Through the enabling resolution EDA's are granted all of the powers described in Minnesota Statutes, 469.090-1082, subject to any limitation on those powers as specified by the City. EDA's are also granted the powers given to HRAs in the HRA law, powers almost identical to Port Authorities under the Port Authority Law and all of the development powers granted to a City under the municipal development district law and the industrial development act. Before adopting an enabling resolution the City Council must hold a public hearing and it must determine the number of Board Members to be on the EDA. The notice of the public hearing must identify the place and time of the hearing, brief statement of the purpose of the hearing, and the notice must contain a summary of the resolution. The notice of public hearing must be published in newspaper of general circulation once a week for two consecutive weeks prior to 5 the meeting. The first publication must appear not more than 30 days from the date of the public hearing. Without limiting the right of the EDA to petition the City Council at any time, each year, within 60 days of the anniversary date of the first adoption of the enabling resolution, the EDA shall submit to the City Council a report stating whether and how the enabling resolution should be modified. Within 30 days of receiving the recommendation, the City Council shall review the enabling resolution, consider the recommendation of the EDA, and make any modification it considers appropriate (Minn. Stat. § 469.092, Subd. 3). All modifications to the enabling resolution must be by written resolution and must be adopted after notice is given and a public hearing conducted as required for the original adoption of the enabling resolution (Minn. Stat. § 469.093, Subd. 2). An EDA is a public body corporate and politic as well as a political subdivision of the State of Minnesota with the right to sue or be sued in its own name. An EDA carries out an essential governmental function when it exercises its powers, but is not immune from liability because of this. (Minn. Stat. § 469.091, Subd. 2) 6 Enabling Resolution, Bylaws, Transfer Resolution and Ordinance Checklist _____ Board Size (Optional) _____ 3 – Minimum of 1 City Council member _____ 5 – Minimum of 2 City Council members _____ 7 – Minimum of 2 City Council members _____ Officers/Staff Powers and Duties _____ - President _____ - Executive Director _____ - Vice President _____ - Engineers _____ - Treasurer _____ - Technical/Support Staff _____ - Assistant Treasurer _____ - Secretary _____ Procedures _____ - Board Compensation _____ - Quorum _____ - Budget _____ - Treasurer's Bond _____ - Fiscal Year _____ - Reports/Financials/Audits _____ - Corporate Seal _____ - Professional/Technical Services _____ - Annual/Monthly/Special Meetings _____ - Amendments to By-Laws _____ - Depositories _____ - Conflict of Interest _____ Committee Structure (optional) _____ - Local Publicity _____ - Business Retention and Expansion _____ - Planning and Zoning _____ - Marketing _____ - Sites and Buildings _____ - Advisory _____ Transfer of Authority and Programs _____ Economic Development Powers ____ - Economic Development Districts _____ - Redevelopment Districts ____ - Acquisition of Property _____ - Options ____ - Eminent Domain _____ - Contracts ____ - Limited Partnerships _____ - Rights and Easements ____ - Acceptance of Public Land _____ - Foreign Trade Zone ____ - Public Facilities _____ - Government Agent ____ - Studies/Analysis/Research _____ - Public Relations ____ - Loans _____ - Use of Proceeds ____ - Mined Underground Space _____ - Levy of Taxes ____ - Advances _____ - Issuance of Bonds _____ Housing and Redevelopment Powers ____ - Acquisition of Open Land _____ - Acquisition of Unused Land ____ - Sale of Real/Personal Property _____ - Studies ____ - Comprehensive Plans _____ - Inventory of Land/Buildings ____ - Joint Powers Agreements _____ - Parking Facilities ____ - Bonding Authority _____ - Special Benefit Tax ____ - Property Tax Exemption _____ - Borrowing/Acceptance of Funds ____ - Rehabilitation Loan/Grants _____ - Interest Reduction Program _____ Limitations on Powers ____ - Limitations on All Powers _____ - Limitations on Individual Powers 7 Board of Commissioners of EDA Board Size The City Council must determine the size and makeup of a Board of Commissioners. The City Council may serve as the Board of Commissioners or it can create a board that includes members of the community. The Board shall be appointed as follows: A. Three-member EDA: the Commissioners constituting a three-member EDA, one of whom must be a member of the City Council, shall be appointed by the Mayor with the approval of the City Council. Those initially appointed shall be appointed for terms of two, four, and six years, respectively. Thereafter all Commissioners shall be appointed for six-year terms. B. Five-member EDA: the Commissioners constituting a five-member EDA, two of whom must be members of the City Council, shall be appointed by the Mayor with the approval of the City Council. Those initially appointed shall be appointed for terms of two, three, four, five and six years respectively. Thereafter all Commissioners shall be appointed for six-year terms. C. Seven-member EDA: the Commissioners constituting a seven-member EDA, two of whom must be members of the City Council, shall be appointed by the Mayor with the approval of the City Council. Those initially appointed shall be appointed for terms of one, two, three, four, and five years respectively and two members for six years. Thereafter all Commissioners shall be appointed for six-year terms. An EDA may be increased from three to five or seven members or from five to seven members by a resolution adopted by the City Council following the procedures provided for modifying the enabling resolution. Cause for Removal A Commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A Commissioner shall be removed only after a hearing. A copy of the charges must be given to the Commissioner at least ten days before the hearing. The Commissioner must be given an opportunity to be heard in person or by counsel at the hearing. When written charges have been submitted against a Commissioner, the City Council may temporarily suspend the Commissioner. If the City Council finds that those charges have not been substantiated, the Commissioner shall be immediately reinstated. If a Commissioner is removed, a record of the proceedings, together with the charges and findings, shall be filed in the office of the City clerk. 8 Vacancy A vacancy is created in the membership of an EDA when a City Council member of the EDA ends council membership. A vacancy for this or another reason must be filled for the balance of the unexpired term, in the manner in which the original appointment was made. The City Council may set the term of the commissioners who are members of the City Council to coincide with their term of office as members of the City Council. Committees The EDA Board of Commissioners is responsible for the decision making process for the EDA, many Cities have found it helpful to develop a committee structure to assist in reaching the economic development goals of the community on or ongoing or ad hoc depending on upon the workload and particular issues that may arise. Possible committees could include: Local Publicity and Education Committee Sites and Buildings Committee Business Retention and Expansion (BRE) Marketing Committee 9 Officers, Duties and Organizational Issues The EDA must adopt bylaws, rules of procedure and an official seal. In the appendix is an example of organizational bylaws. Officers An EDA shall elect a president, a vice-president, a treasurer, a secretary and an assistant treasurer. The Authority shall elect the president, treasurer, and secretary annually. A Commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same Commissioner. The offices of secretary and assistant treasurer need not be held by a Commissioner. At a minimum, there must be three officers on the board. (Minn. Stat. § 469.096). Duties and Powers of Officers The president and vice-president have the usual duties and powers of their offices. They may be given other duties and powers by the EDA. The treasurer is responsible for receiving, disbursing and monitoring all funds of the EDA. When disbursing funds, the transaction must be by check only. The treasurer must also keep an account Marketing Committee Business Retention And Expansion Committee Sites and Buildings Committee Local Publicity and Education Committee EDA Board Executive Director EDA Staff 10 of the source of all receipts, as well as the nature, purpose and authority of all expenditures. The treasurer is responsible for filing a detailed financial statement with the secretary at least once a year at times set by the EDA. Quarterly reports may also be filed. The treasurer is also responsible for the acts of the assistant treasurer. The assistant treasurer has the powers and duties if the treasurer is absent or disabled. (Minn. Stat. § 469.096, Subd. 4). The EDA must obtain a treasurer's bond conditioned for the faithful discharge of official duties. The bond must be approved as a form and surety by the EDA and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at one time, as determined at least annually by the EDA provided that the bond may not exceed $300,000 (Minn. Stat. § 469.096, Subd. 6) The EDA may choose to have the secretary and the assistant treasurer position filled by a non- board member (Minn. Stat., § 469.096, Subd. 2). Public Money EDA money is public money. Checks An EDA check must be signed by the treasurer and one other officer named by the EDA in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. Financial Statement The EDA's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets, and its outstanding liabilities in a form required for the City's financial statements. The EDA shall examine the statement together with the treasurer's vouchers. If the EDA finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. (Minn. Stat. § 469.051). Compensation and Reimbursement A Commissioner, including the president, shall be paid for attending each regular or special meetings in an amount to be determined by the City Council. (Minn. Stat., § 469.095, Subd. 4). In addition to receiving pay for meetings, the Commissioners may be reimbursed for actual expenses incurred in doing official business of the EDA. All money paid for compensation or reimbursement must be paid out of the EDA's budget. Conflict of Interest A Commissioner or employee of an EDA shall not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project sponsored by the EDA. EDA Commissioners or employees may not have any financial interest, 11 direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any project (Minn. Stat., § 469.098). The following is a list of exceptions when an EDA may contract for goods or services with a Commissioner or officer of the EDA who has a financial interest in a project. Approval of this action must be passed by a unanimous vote of the EDA with the affected Commissioner abstaining from the vote on the resolution (Minn. Stat., § 471.88). 1. When an officer or Commissioner is employed by a bank or savings association that serves as the EDAs depository or as a source of borrowing, and that Commissioner has an interest either direct or indirect, no restrictions apply. However, if a Commissioner or officer does have a direct or indirect interest as a director or an employee of the bank or savings association, he or she must make that disclosure and enter it into the minutes of the EDA. This disclosure serves as notice of the Commissioner's interest and does not need to be made on future transactions with that designated financial institution. 2. When a Commissioner of the EDA is employed by a bank that is engaged in making loans or performing trust services involving real or personal property affected by any plan of the EDA, there is no restriction that applies to the loans made or trust services performed by the Commissioner's bank if he or she discloses the nature of the loans or trust services of which the Commissioner has personal knowledge. This disclosure must be entered in the minutes of the EDA. 3. If the EDA has designated an official newspaper, or publication where it publishes its public notices and minutes, and a Commissioner has an interest in the paper. 4. If the EDA enters into a contract with a cooperative association where a Commissioner is a shareholder or stockholder, but not an officer or manager. 5. A contract for which competitive bids are not required by law and where the amount does not exceed $5,000. 6. Contracts for goods or services when consideration does not exceed $5,000 in any year and the sealed bid process is used and the contracting governmental unit has a population of less than 1,000. 7. When an EDA Commissioner is engaged in or employed by a firm that is in the business of importing or exporting or general trade, the EDA may enter into business transactions with the Commissioner or the Commissioner’s employer provided that the Commissioner abstains from voting on any resolution that sets rates affecting shippers or users of an EDA-owned facility. (Minn. Stat. § 471.88) Ethics Law Changes made in the 1994 Ethics in Government Act not only affect state legislators but also local officials. The definition of a local official is "a person who holds elective office in a political subdivision or who is appointed to or employed in a public position in a political subdivision". Minn. Stat. § 10A.01 Subd. 22 goes on to state that local officials are those who 12 have the "authority to recommend, or as a member of the governing body, make major decisions regarding the expenditure or investment of public money." Based on these definitions, EDA executive directors and commission members are subject to the gift restrictions of the Ethics in Government Act. A local official is prohibited from accepting gifts from a lobbyist or lobbyist principal including: • Money, • Real or personal property, • A service, • A loan, • A forbearance or forgiveness of indebtedness, or • A promise of future employment unless the lobbyist or lobbyist principal receives consideration of equal or greater value in return. Employees, Services, and Supplies The EDA may employ an executive director, a chief engineer, other technical experts and agents, and other employees as it may require. The EDA must determine their duties, qualifications and compensation. Also, the EDA may contract for the services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. The EDA may use the services of the City Attorney or hire a general counsel for its legal needs (Minn. Stat. § 469.097). (See appendix for sample job description). The EDA may utilize the City/County's purchasing department in connection with construction work and to purchase equipment, supplies and materials. The City/County may furnish offices, structures and space, stenographic, clerical, engineering and other assistance to the EDA in order for it to perform its duties and to carry out its powers. The EDA may also delegate to one or more of its agents or employees powers or duties it may deem proper. Depositories Every two years the EDA shall name a national or state bank(s) within Minnesota as depositories for its funds. Before acting as a depository, the bank must give the EDA a bond approved as to form and surety by the EDA. The bond must state the conditions for the safekeeping and the prompt repayment of deposits. The amount of the bond must be at least equal to the maximum amount expected to be deposited at any one time. An EDA may deposit all its money from any one source in one bank account. When the EDA funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss of the deposits because of the failure, bankruptcy or other act or default of the depository bank. However, an EDA may accept assignments of collateral from the depository bank to secure the deposits just as assignments of collateral are permitted by law to secure deposit of the EDA’s City (Minn. Stat. § 469.099) 13 Budget, Fiscal Year, Taxes, Audits and Reports The fiscal year of the EDA must be the same as that of its governing City. It must annually submit its budget to the City in a time frame that matches the City’s normal budget cycle. This budget must include a detailed written estimate of the amount of money that the EDA expects to need from the City during the next fiscal year. There are many ways in which EDA's budgets are established. EDAs have the ability to receive funding from virtually any source, public and private, and including the general funds of the underlying City. In addition, EDAs utilize administrative fees from loan or grant agreements, guarantees or other credit enhancements or contributions from local businesses or organizations. The most common practice is a direct general fund appropriation to the EDA out of the City general fund. The EDA is required to send its budget to the City Council with an estimate of funding requirements for the next fiscal year, and it is through this procedure that a City may give money from the City's general funds for the EDA to use. There is no limit to the amount of funding that can be provided to an EDA through this mechanism. One of the fringe benefits of City general fund monies lies in the fact that their use may not be as restricted as monies from other funding sources. This enables an EDA to use them for virtually any economic development purpose, as long as appropriate findings are made and safeguards imposed to demonstrate the use will promote economic development in the City. Such uses include write downs, grants or loans, working-capital loans and the purchase of limited partnership interests. For example, an EDA received funding using dollars remaining in a City's bond fund after all bonds were retired, and used these dollars to capitalize a revolving loan fund. In addition to the annual budget, the EDA must submit a detailed annual report to the City Council outlining its activities, receipts and expenditures during the preceding calendar year. The report may also include other matters and recommendations that the EDA deems advisable for the economic development of the City. On an annual basis the financial statements of the EDA must be prepared, audited, filed and published or posted in the manner required for the financial statements of the City. The financial statements must permit a comparison and reconciliation with the City’s accounts and financial reports. The report must be filed with the State Auditor by June 30th of each year. The auditor will review the report and may accept it or audit the books of the EDA for cause (Minn. Stat. § 469.100). City Levy of Taxes for EDA Activities The City may, at the request of the EDA, levy a tax in any year for the benefit of the EDA in an amount not more than 0.01813 percent of taxable market value. The amount levied must be paid by the City treasurer to the treasurer of the EDA, to be spent by the EDA. A City may increase its levy for economic development authority purposes under Minnesota Statutes 469.107, Subdivision 1 in the following way. The City Council must first pass a resolution stating the proposed amount of levy increase. The City must then publish the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the City. The hearing must be held two to 14 four weeks after the first publication. After the hearing, the City Council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be published in the City's official newspaper or if none exists in a newspaper of general circulation in the City. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the City Clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the City in the last general election. The election must be held at a general or special election. Notice of the election must be given in the manner required by law. The notice must state the purpose and amount of the levy. Levy of Taxes for HRA Activities Subject to the approval by resolution of the governing body of the City, the EDA may levy a tax for HRA purposes upon all taxable property within that taxing district. The levy cannot not exceed an amount equal to 0.0185 percent of taxable market value, and must be spent for purposes authorized under the HRA statutes. These levies must be included in the EDAs annual budget. Transfer of Authority The City may by ordinance divide the economic development, housing and redevelopment powers granted under the EDA and HRA sections in Minnesota Statutes, Chapter 469 between the EDA and any other authority or commission established under statute or City charter for economic development, housing or redevelopment. The City may, by resolution, transfer the control, authority and operation of any project or program located within the City from another governmental agency or subdivision that established the project or program to the EDA. The City may also require the EDA to accept control, authority and operation of the project or program. If a project or program is transferred to the EDA, it may exercise all of the powers that the governmental unit establishing the project or program could have exercised with respect to the project or program. When a project or program is transferred to the EDA, the EDA must pledge in writing to perform the terms, conditions and covenants of the bond indenture or other agreements executed for the security of any bonds that were issued by the governmental subdivision that initiated the project or program. The EDA may exercise all of the powers necessary to perform the terms, conditions and contracts of any indenture or other agreements executed for the security of the bonds and will become obligated for the bonds when the project or program is transferred. If the City transfers a housing project or a housing development project to the EDA, the City must transfer all housing development and management powers relating to that specific project or program. Transfer of Personnel The City may also by resolution place any employees of the HRA under the direction, supervision or control of the EDA. The transfer of employees does not affect the employee rights 15 existing under a collective bargaining agreement or fringe benefit plan. Upon transfer, the employees will become employees of the EDA. 16 POWERS OF EDAS General Powers and Purposes The primary benefit of an EDA rests in its ability to easily and flexibly accomplish a wide range of development and redevelopment objectives. An EDA is granted a remarkably full complement of development powers. These include (subject to any limitation in the enabling resolution) the powers enumerated by its enabling legislation, but also those powers granted by cross-reference to housing and redevelopment authorities (HRAs), to Cities in connection with projects and development districts, of municipalities and redevelopment agencies in connection with Municipal Industrial Development. These development powers allow an EDA great latitude, flexibility and efficiency in pursuing economic development objectives. The purposes to which EDAs may direct their powers are not entirely clear in the statutes. They appear to include making land suitable and available for economic development and to encourage the location or expansion of economic development facilities. Also, through incorporating the purposes of HRAs, EDAs also can provide adequate housing in addition to clearing and developing blighted areas. And by incorporating the broad purposes of Municipal Industrial Development, EDAs may actively promote, attract and encourage the development of economically sound industry and commerce for the purpose of preventing the emergence of blighted and marginal lands and areas of chronic unemployment. Usually, an EDA must adopt or reference a broader plan to exercise its powers. Certain EDA powers can only be exercised within the boundaries of an "Economic Development District; certain HRA powers must be exercised within the boundaries of a "Redevelopment Project," and certain municipal powers must be exercised within a "Municipal Development District." Certain EDA Powers must be exercised only within the boundaries of an "Economic Development District." The EDA may create and define the boundaries of economic development districts at any place or places within the City, except the district boundaries must be contiguous. An EDA must hold a public hearing on the establishment and at least 10 days before the hearing the EDA shall publish notice of the hearing in a daily newspaper of general circulation in the City. The EDA must find that an economic development district is proper and desirable to establish and develop within the City. Redevelopment Project When the EDA exercises many of the powers of an HRA, such powers must be used within the boundaries of a Redevelopment Project established under the HRA law. When establishing a Redevelopment Project, the EDA must develop a redevelopment plan which provides an outline for the development or redevelopment of the area. The EDA must obtain the written opinion of the City's planning agency if there is one. The City Council must approve or disapprove the plan within 30 days after holding a public hearing on the Redevelopment Project. The council must make the following findings in connection with its approval: 17 1. The land in the project area would not be made available for redevelopment without the financial aid to be sought from the EDA. 2. The redevelopment plans for the redevelopment areas in the locality will afford maximum opportunity consistent with needs of the locality as a whole for the redevelopment of the areas by private enterprise. 3. The redevelopment plan conforms to the general comprehensive plan for the development of the locality as a whole. (Minn. Stat. § 469.028). Municipal Development District When the EDA exercises certain powers of cities identified in the City Development District law (Minn. Stat. §§ 469.124-469.143), they must be used within the boundaries of a Municipal Development District. A development district may be designated anywhere within the boundaries of a City and the City must adopt a Development Program for the development district, which is a statement of objections for the development district and contain the information set forth in Minn. Stat. § 469.125, Subd. 3. The City may develop a program for improving the district to provide the impetus for commercial development, increase employment, protect pedestrians, provide open space relief and other actions which are in the public purpose. Prior to designation, the City must consult with its planning agency or department, publish notice, and hold a public hearing. Specific Powers Because EDAs derive powers both directly from EDA law and indirectly by cross reference with other development statutes, there is often considerable overlap in the statutes which can be cited as authority for a given power. For example, the power to acquire and develop property under the EDA Law must be exercised within the boundaries of an "economic development district." Since the definition of an economic development district is very restrictive, the EDA power to acquire land cannot be exercised in many circumstances. However, the comparable HRA power to acquire and develop property is far more general and can be exercised in a broad range of development circumstances. By picking and choosing the particular statutory authority best suited to a given proposed action, an EDA can usually carry out its purposes with a minimum of inconvenience. Many of the powers of an EDA are listed below, including powers derived from EDA, HRA and municipal authorities. When considering the exercise of any specific power cited, your should always review the available legislation and consult with your legal and development advisors. Acquisition of Property An EDA may acquire the necessary rights, titles or interest in property through purchase, lease or gift. While the property is owned by the EDA and used for governmental purposes, the property is exempt from taxation by the state or its political subdivisions. However, once the EDA sells or leases the property for use by a non-governmental body, it becomes subject to taxation. 18 Options The EDA may sign options to purchase, sell or lease property. This power may be used to set aside a particular building or site for future development purposes. Eminent Domain An EDA may exercise the right of eminent domain under Chapter 117 or under its City's charter to acquire property by condemnation. If the property is owned by the City for public use, the City must approve the taking. Also, the EDA may take possession of the property after it files a petition in condemnation proceedings describing the property -- a practice sometimes referred to as a "quick take" proceeding. Loans An EDA may make loans to businesses to carry out the purposes outlined in the EDA Law (Minn. Stat. § 469.192). Contracts The EDA may enter into contracts with both governmental and non-governmental entities for the purpose of economic development, including the purchase or sale of real and personal property. An EDA may not incur an obligation or expense under the HRA Law, unless it has an existing appropriation, or can identify reasonably expected revenues sufficient to discharge the obligation or pay the expense. Independent authority is found in the EDA Law for the EDA to guarantee loans, as more fully discussed under the "Advances" power described later in this handbook. Limited Partnership An EDA may be a limited partner in a partnership whose purpose is consistent with the EDA's purpose. If a City is participating in a project as a limited partner, it may wish to stipulate in the equity agreement a limit on its current and future liability. This stipulation will serve as a safeguard for the City if legal action is brought against the firm as a result of its operation or inequities in its services or products. Rights and Easements The EDA may acquire rights and easements for development of an economic development district. It may be necessary for an EDA to utilize these powers when extending public infrastructure to a project area. Acceptance of Public Land and Property The EDA may accept land, money, or assistance, either by gift, loan or otherwise, in any form from the federal or state government, or its agencies, or a local subdivision of the state government to carry out its economic development activities. 19 An EDA may accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the EDA in an economic development district. Foreign Trade Zone Minnesota Statute 469.101, Subdivision 11 authorizes EDAs to operate and manage Foreign Trade Zones. Foreign or "Free" Trade Zones (FTZ) were established to facilitate international trade by serving as "safe havens" and can increase a company's cash flow by reducing costs associated with import restrictions and duties. FTZs can be warehouses, storage tanks or fenced- in areas near harbors, airports or industrial parks. Foreign and domestic goods are brought into a zone where they can be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned and mixed with foreign and domestic products or used in a manufacturing process. There are two types of foreign trade zones. General zones are located at or adjacent to a U.S. Customs Port of Entry (i.e. Minneapolis-St. Paul International Airport or Duluth Port) and subzones which are technically part of the general zone but are physically removed from it. General zones typically have multiple users occupying a facility or warehouse site, while "subzones" are special-purpose facilities operated by individual firms that cannot be accommodated within a general zone and are engaged in large-scale manufacturing. The major goods being produced in subzones are automobiles, trucks, motorcycles, tractors, women's garments, and refined oil. Although a zone is operated as a public utility and can be managed by either a public or private corporation, it is treated as foreign territory and considered to be in foreign commerce, therefore providing benefit to the users. The usual formal Customs entry procedure and payment of duties is not required on the foreign merchandise unless and until it enters Customs territory for domestic consumption, in which case the importer ordinarily has a choice of paying duties either on the original foreign material or the finished product. In addition, quota restrictions do not normally apply to foreign goods stored in zones. Domestic goods moved into a zone for export may be considered exported upon entering the zone for purposes of excise tax rebates and drawback. In some cases companies can avoid both import duties on an item and state and local ad valorem taxes when goods are exported from the zone. In most cases, Federal taxes and excise taxes can be deferred on the goods until they enter the U.S. marketplace. Public Facilities The EDA may operate and maintain a public parking facility or other public facility to promote development or prevent the emergence of slum and blight. Frequently, these powers are exercised in cooperation with other units of government, including Cities, counties and school districts. Projects may include City halls, fire stations, libraries, community centers, administration buildings, and many others. For example a City may want a community center for its residents. In order for the project to occur, the EDA sells revenue bonds, constructs the community center, and leases the community center to the City. The lease is paid by an annual appropriation from the City's general fund to 20 the EDA, and the EDA uses the lease payments to pay the principal and interest due on the revenue bonds. When the revenue bonds are retired, title to the new community center will be transferred to the City. Government Agent An EDA may cooperate with or act as an agent for the federal or state government, a state public body, an agency or instrument of a government, or a public body to carry out its mission. Studies, Analysis, Research An EDA may study and analyze economic development needs in the City, and ways to meet those needs. An EDA may study the desirable patterns for land use for economic development and community growth and other factors affecting local economic development in the City. It may make the results of the studies available to the public and to business/industry in general. An EDA may engage in research and disseminate information on economic development within the City. Public Relations To further its economic development efforts, an EDA may join an official, industrial, commercial, or trade association, or other organization. It may also have a reception of officials who may contribute to advancing the City and its economic development activities. It may also carry out other public relations activities as it deems appropriate in fulfilling its efforts to promote the City and its economic development projects (Minn. Stat. § 469.101, Subd. 16). Joint Powers Agreements Any two or more EDAs using HRA powers or together with an HRA may join with one another to exercise, either jointly or otherwise, any or all of their powers. This joint powers agreement may be used for the purpose of financing, including the issuance of bonds and giving security, planning, undertaking, owning, constructing, operating, or contracting a housing project located within the area of operation of any one or more of the EDAs or HRAs. The EDA may, by resolution, authorize any other housing authority or EDA utilizing HRA powers to act on its behalf with respect to any or all powers, as its agent or otherwise. An EDA may by resolution authorize another housing authority to exercise its powers within the authorizing EDAs area of operation at the same time that the authorizing authority is exercising the same powers. Tax Increment Financing There are many benefits afforded to a City by utilizing Tax Increment Financing (TIF) to facilitate economic development. Some of these are: the City can realize new development, which would not otherwise occur without the use of TIF; the City may realize broader economic gains of new development in terms of employment, tax base enhancement and secondary spin- off effects; the City can facilitate the construction of related public improvements it wishes to achieve by coordinating a TIF project with more general public improvement projects; the City 21 may have better control over the nature of the development; the City may be able to fund administrative and/or community development costs with revenue from the TIF district and; in some cases, the qualifying of new development is enhanced by the TIF financing. An EDA may act as an Authority for the purposes of creating and administering tax increment financing districts and plans. These powers must be exercised within a Redevelopment Project, when acting under HRA powers, or within a Municipal Development District when exercising City powers. In general, an EDA must receive approval from the City Council prior to adoption of a Tax Increment Financing plan, and comply in all respects with the requirements of Minnesota Statutes 469.174 - 469.179. There are several types of TIF districts allowed by statute. The following is a brief description of each. Redevelopment District: • Generally a blighted area containing substandard buildings. • Requires documentation to evaluate occupied land area and analysis of substandard buildings. • Maximum duration of TIF district is 25 years from receipt of the first increment. Renewal and Renovation District: • Blight and obsolescence tests must be met. • Maximum duration of TIF district is 15 years from receipt of the first tax increment. Housing District • Provides housing opportunities for persons and families of low and moderate income. • Maximum duration of TIF district is 25 years from receipt of the first tax increment. Soils Condition District: • Provides for the removal or remediation of hazardous substances or contaminants as specified in a development action response plan. • Such costs must exceed (a) the fair market value of the land before completion of the preparation or (b) $2 per square foot of the area of each parcel. • Maximum duration of the TIF district is 20 years from receipt of the first tax increment. Economic Development District: • May be used only for manufacturing, production, processing, warehousing, storage, distribution (excluding retail sales), research and development, telemarketing, certain tourism and border City retail facilities and uses are directly related to or in support of such qualifying activities. Prohibits establishment if more than 15 percent of the square footage of such facilities are used for other purposes. 22 • Must demonstrate retention of local businesses, increased employment or preservation or enhancement of the state tax base, etc. • Maximum duration of TIF district is 8 years from receipt of the first tax increment. • May be used for commercial facilities not exceeding 15,000 square feet in Cities with populations of 5,000 or less located at least 10 miles outside of a City with a population of 10,000 or more. Other than administrative expenses, all increments must be spent within the TIF district. • Expanded Rules for any type of development if construction commences by July 1, 2011 and certification of district is requested by June 30, 2011. Compact Development District: • May be used to redevelop property where 70 percent of the parcel is industrial or utility property. • The project must result in an increase of square footage of industrial or utility property by three times or more over its current level. • Must be approved before June 30, 2012. In order to establish a TIF district, a specific process must be followed including the following: 1. A Development Program or Redevelopment Plan (depending on statutory authority used) must be prepared. This sets forth the general goals for the development or redevelopment project area. 2. A Tax Increment Financing Plan must be prepared. This sets forth the specific project(s) to be undertaken, costs involved, and revenues projected, and is the guiding document for the proposed project. 3. A public hearing on the TIF Plan and district must be conducted. Notification of the public hearing must be published 10-30 days prior to the hearing. 4. A TIF district "fiscal and economic impact" letter must be received by the County and school district at least 30 days prior to the public hearing. 5. The City planning commission must review the TIF Plan and Development Program prior to City approval. 6. At the public hearing, all interested parties are invited to express their opinion(s). 7. Subsequent to the public hearing, the City must approve or reject the TIF Plan and district. 8. Upon approval, the City must request County certification of the original value of the TIF district which will begin the tax increment collection process. 9. Actual project expenditures may not be made until the TIF Plan is adopted and the TIF district is established. 23 Financing and Bonding Powers Issuing General Obligation Bonds The EDA may issue General Obligation Bonds (GO Bonds) in anticipation of income from any source for any purpose allowed by statute. The City must, by ordinance and by two thirds vote, give specific consent to pledge the City’s full faith and credit to the GO Bonds. The EDA must comply with the provisions of Minnesota Statutes § 475, the general public indebtedness statute. An election is required to issue GO Bonds backed by the City’s full faith and credit. Issuing Revenue Bonds Revenue bonds may be issued by the EDA to fund any authorized activity of the EDA. The revenues generated by the projects to be financed and/or other revenues of the EDA may be pledged to the payment of the revenue bonds. Bonds may also be secured by a mortgage on certain EDA property. The EDA can pledge its full faith and credit and limited taxing power to the payment of revenue bonds, but it may not pledge the full faith and credit of the City. Because the credit strength of an EDA is usually very limited, the feasibility of a revenue bond offering is highly dependent upon the project to be financed. For example, if an EDA were to issue a revenue bond to finance the construction of a building to be leased to a manufacturing firm, the interest rate and security terms of the revenue bond would depend primarily on the creditworthiness of the manufacturer. For weaker projects and tenants, issuance may not be feasible. Advances As noted earlier in this handbook, there is independent authority for an EDA to make a loan. An EDA may advance (loan) its general fund money or credit without interest. The advances must be repaid from the sale or lease of land. If the money advanced for the development or redevelopment project was obtained from the sale of the EDAs general obligation bonds, then the interest rate on the advances must not be lower than the average annual interest rate on the EDAs general obligation bonds that are outstanding at the time the advances are made. Advances made to acquire land and to construct facilities for recreational purposes, do not need to be reimbursed (Minn. Stat. § 469.106). Secondary Market An EDA may sell, at private or public sale, at the price or prices determined by the EDA, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development, job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an individual (Minn. Stat. § 469.101, Subd. 22). An EDA operating a revolving loan fund may choose to sell a loan on the secondary market if it needs to recapitalize the loan fund in order to finance additional projects. 24 Borrowing in Anticipation of Bonds After authorizing a bond issue, an EDA may borrow funds to provide money immediately required for the project, but the loan must not exceed the amount of the bonds. The EDA must approve a resolution stating the terms of the loan. The due date for the loan may not be for more than 12 months from the date of the loan origination and may be repaid with interest from the proceeds of the bonds when the bonds are issued and delivered to the bond purchasers. The loan must not be obtained from any Commissioner of the EDA or from any corporation, association, or other institution of which a Commissioner is a stockholder or officer (Minn. Stat. § 469.101, Subd. 19). Revolving Loan Funds Small business growth in most communities provides the greatest opportunity for new investment and job development. However, because constraints on capital markets, financial institutions may be unable or unwilling to provide a complete financing package, and many good companies end up with marginal long-term financing. Businesses and financial institutions invest dollars in projects to make a profit and to earn a return on that investment. Unless the project offers the promise of a positive return, it is difficult to sell a prospective investor on locating or expanding a business. Stimulating investment requires impacting a business and a bank's spending decisions. An EDA can impact business spending decisions by providing an opportunity where rates of return on investment are attractive and competitive. Many EDAs do this by operating a local Revolving Loan Fund (RLF) designed to facilitate small business investment. The typical goal of a local RLF is to leverage private sector investment by filling the capital market gap for financing long-term assets. Most RLFs provide a cost advantage to the business to lessen their financial constraints and meet the community's goal of increasing productivity and creating new, permanent jobs. The RLF can provide lower interest payments, more flexible equity requirements, longer terms, deferred principle payments and a subordinate collateral position to the bank. The type of businesses that are eligible for loan funds type of businesses that are eligible for loan funds will depend on the loan guidelines established by the particular EDA. An RLF can be designed in several different ways. The most common type of RLFs structure is the direct loan to the business. Direct loans are made to the business with a separate set of loan documents and collateral to secure the loan. These loans are typically made to fill the gap in a development project. The second type of funding structure is a loan guarantee. The EDA provides a partial guarantee to the private lender to ensure repayment of the loan and to limit the risk to the private lender. This type of activity provides several advantages to the EDA, notably, smaller capitalization requirements, increased leverage of funds, and limited administrative activity 25 A third type of RLF is a linked deposit program. With a linked deposit program, the EDA works with other government agencies and large non-profit institutions to place a certificate of deposit with the lending institution at below market rate. This action allows the bank to increase its liquidity of funds, gain a higher return on a riskier project and improve collateral coverage. The most fundamental issue in the development of a revolving loan program is the developmen of policies and procedures for operating, marketing, financing and dealing with delinquencies o defaults. It is important to consider working with development counsel and/or financial adviso to discuss the intricacies and mechanics of a RLF program. The source of capitalization for local loan funds varies by community. Communities are utilizing local sources through the use of excess general fund or municipal utility reserves, Tax Increment Financing reserves and partnerships with banks or utilities to capitalize local revolving loan funds. Limitation of Powers The City Council may place limits on the activities of the EDA in the enabling resolution. These limitations may be placed on the power to issue general obligation or revenue bonds, the power to grant or loan EDA funds, power to enter into limited partnerships, or any other specific power over which the governing body wishes to exercise control. The following is a list of specific areas where the governing body may exercise control (Minn. Stat. § 469.092): 1. that the EDA may not exercise any specified power contained in Minn. Stat. §§ 469.001 to 469.047, 469.090 to 469.108, and 469.124 to 469.134 or that the EDA must not exercise any powers without the prior approval of the City Council. 2. that, except when previously pledged by the EDA, the City Council may by resolution require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines is not necessary for the successful operation of the authority to the debt service fund of the City, to be used solely to reduce tax levies for bonded indebtedness of the City; 3. that the sale of all bonds or obligations issued by the EDA be approved by the City Council before issuance; 4. that the EDA follows the budget process for City departments as provided by the City and as implemented by the City Council and Mayor; 5. that all official actions of the EDA must be consistent with the adopted comprehensive plan of the City, and any official controls implementing the comprehensive plan; 6. that the EDA submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval; 26 7. that the EDA to submit its administrative structure and management practices to the City Council for approval. 8. any other limitation or control established by the City Council by the enabling resolution. 27 GLOSSARY Cash Flow: Can the business repay the loan out of operating cash flow. Collateral: A tangible asset like land, building, inventory, machinery and equipment, etc., offered as security on a loan. Typically, the value of the offering is greater than the amount loaned. Commercial Club: Usually an incorporated 501(c)(4) or (6) organization whose purpose is to promote community and retail events. The membership is usually made up of retail business owners or owners of businesses in the central or downtown business district. Chamber of Commerce: A chamber is an incorporated, non-profit 501(c)(4) or (6) that is generally affiliated with the state and national chamber of commerce. The chamber consists of local business professionals of the community who meet together to promote local businesses and the community. Generally, they have an elected board with and most have limited staff. Larger chambers often deal with tourism and overall business development of the community. They sometimes are politically active and can be a powerful lobbying force when dealing with policy that affects the community's economic strategy. Chambers are generally active and can hold educational and other events for local businesses. Development Commission: A board used to advise City Council, appointed by the Mayor and/or City Council. It has limited or no decision making authority and is used as a sounding board or a first point of contact for the City Council for development projects. The commission is used to draft strategies and policies for ratification and implementation of local plans on a volunteer basis. Economic Development District: A type of tax increment financing district which consists of any project, or portions of a project, but which the authority finds to be in the public interest because: it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or it will result in increased employment in the state; or it will result in preservation and enhancement of the tax base of the state. Excess Increments: Tax increments that exceed the amount needed to pay the costs authorized under the tax increment financing plan. Increments are not excess increments if the TIF plan has been amended or modified to permit additional spending. The law requires that excess increments be used to prepay outstanding bonds or deposited in an escrow account for bond payments or returned to the City, County, and school district(s) in proportion to their local tax rates. For-Profit Development Corporation: A corporation formed to develop and sell industrial land and/or provide financing for business development within the community. Local investors can buy shares that can be paid dividends for profits made on projects. Money invested in corporations can be repaid to the stockholders. The board is made up of shareholders and may or may not have staff. The corporation is subject to federal and state income tax. 28 Guarantee Fee: Money paid by a borrower to a government agency, company, or individual to guarantee repayment of a loan. The fee is usually a percentage of the amount of the guarantee. Housing District: A type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts. A project does not qualify under this subdivision if the fair market value of the improvements which are constructed for commercial use or for uses other than low and moderate income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The fair market value of the improvements may be determined using the cost of construction, capitalized income, or other appropriate method of estimating market value. Housing Redevelopment Authority: An HRA is a public corporation with power to undertake certain types of housing and redevelopment of renewal activities. While state legislation conveys authority for housing and redevelopment in each City, it is up to the City Council to formally establish an HRA before it can do business and use its powers. Once a council legally establishes an HRA, it may undertake certain types of planning and community development activities on its own with council approval Joint Powers Board: This is a board created by two or more Cities, townships, or counties for a specific purpose, such as economic development. The agreement between the units of government would specifically describe activities and powers that the board exercises in carrying out its duties. Limited Partnership: A form of group ownership with at least one general partner and one limited partner, the general partner has unlimited liability. Limited partners can only lose their initial investment. Port Authority: This is a legal entity created by the State Legislature to promote the general welfare of a City's port district, increase the volume of commerce in the port and provide facilities for handling, storage and shipment of freight. The Port Authority actively develops commerce within the City and can enable business location and expansion. The powers of the Port Authority are more expansive than the HRA or EDA. Port Authorities can issue General Obligation bonds without an election. Redevelopment District: A type of tax increment financing district consisting of a project , or portions of a project, within which the authority finds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or the property consists of vacant, used, under used, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way. 29 Renewal and Renovation district: A type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one of the following conditions exist: parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements; 20 percent of the buildings are structurally substandard; and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or identified hazards to the health, safety, and general well-being of the community; and the conditions are reasonably distributed throughout the geographic area of the district. Rural Development Finance Authority (RFDA): A non-profit corporation established by a County or group of counties through special legislation. RFDAs are designed to facilitate the production and processing of agricultural products and promote jobs in agriculture and natural resource industries. The board of directors is appointed by the County board of commissioners. Structurally Substandard: A building that contains defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of the interior partitions, or similar factors. which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. A building is not structurally substandard if it is in compliance with the City's building code applicable to new buildings or it could be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. Tax Increment District: A district consists of the geographic area for which tax increments are collected. The development authority defines the area in the tax increment plan. A district may be contiguous or non-contiguous area within a project area. 30 TABLES COMPARISON OF SELECTED DEVELOPMENT LAWS Rural Development Finance Authority Purpose: An RDFA may be established by a County or group of counties to bring about the production of agricultural products and to encourage increased employment in agriculture. A RDFA is a non-profit corporation. Governing Body: An RDFA is controlled by a Board of Directors who are either elected or appointed by the County Board. If more than one County is involved, then all counties involved must be represented on the board. The board must have a minimum of five members. All projects and activities of the RDFA must have approval of the Commissioner of the Department of Employment and Economic Development. Municipal Industrial Development Act: Purpose: The main focus of Minn. Stat. , §§ 469.152 to 469.1651 includes the following: expansion and economic growth in blighted land areas; retention of industry within the district; overall strengthening of community tax base; and the general enhancement of the economy in the district. Governing Body: Consists of the representing governmental unit--e.g. City Council/County Commissioners for Cities, County Board for counties, etc. All rights of a municipality are granted to bondholders. When beginning a project, each municipality must provide the Commissioner of the Department of Employment and Economic Development with specified information regarding the details of the contracting agreement. All projects must be approved by the state Commissioner (except County jails). Housing Redevelopment Development Authorities Purpose: An HRA is responsible for determining blighted land areas, and for preventing the spread of blight, including substandard building structures. A blighted area is one with buildings and areas that are detrimental to the health, safety and welfare of the community. The HRA may then provide for improvements or redevelopment of these areas through a redevelopment plan. An HRAs main area of operation is housing program development. HRAs are primarily concerned with family rehabilitation, housing redevelopment, public housing, and rent assistance. Governing Body: Approval for any project through the approval of a redevelopment plan, must be granted by the appropriate City Council. Activities are controlled by a board of commissioners. An HRA is independent of the local government. Approval of the redevelopment plan for the proposed project is needed, however, by the governmental unit in order to proceed. Economic Authorities Purpose: The overall purpose of an EDA is to promote economic development within a district. EDAs may exercise their own powers which are similar to port authority powers, powers of a HRA, and the powers of Cities in connection with development districts and municipal industrial development activities. Governing Body: EDA is created through an enabling resolution written and approved by City Council. EDAs have a board consisting of 3, 5, or 7 commissioners appointed by the Mayor with the approval of City Council. The board may also consist entirely of City Council members. The City Council may control the activities of the EDA by limiting its powers under the enabling resolution and through the annual approval of the EDA budget. 31 Rural Development Finance Authority: (continued) Activities: 1. Build, obtain and operate projects designed for the production of agricultural products. 2. Perform agricultural research. 3. Seek aid from additional sources to promote employment. 4. Undertake projects authorized under the agricultural resource loan guarantee program. 5. May enter contracts and employ financial specialists for assistance. 6. Issue bonds or notes for financing purposes. Municipal Industrial Development Act: (continued) Activities 1. Build, acquire, and retain all lands, structures, and equipment relating to a project. 2. Enter into contracts with other municipalities and agencies in connection with projects. 3. Assign revenues from projects to the holders of bonds. 4. Sell property associated with projects. 5. Exempt from property taxes on nonresidential structures built for sale or rent until the building is sold or rented; maximum time is 4 years. 6. May contractually limit its ability to exercise authority, allowing a municipality to enter into a contract with bondholders. 7. Make all necessary contracts in order to secure payments of its bonds. Housing Redevelopment Development Authorities (continued) Activities: 1. May establish a redevelopment project (Minn. Stat. 469.002) for the elimination/and prevention of blighted areas. 2. Carry out projects designed to improve blighted areas. 3. Acquire real or personal property for activities related to projects. 4. May provide for the administration of a commercial building loan program to preserve small sized buildings in its district. 5. May sell real or personal property for project related purposes. 6. May sell its lands and properties to private or public parties. Sale is dependent on these parties' responsibility to continue with the redevelopment plan specified by the HRA. 7. May act as federal government agent in carrying out provisions of Municipal Housing and Redevelopment Act. 8. May exercise the powers granted to redevelopment agencies under Minn. Stat. §§ 469.152 to 469.1651. 9. Provide relocation payments and assistance in accordance with federal guidelines. Economic Authorities (continued) Activities: EDAs are granted powers within their own district, outside their development district, and, by cross-reference, the powers of HRAs, development districts in connection with the City, and agencies in connection with Municipal Industrial Development. Powers: 1. Acquire property for creation of development district that is tax exempt. 2. Sell or lease land either by private or public means. 3. Carry out EDA law to develop and improve land within the district. The EDA may make any necessary arrangements to make land suitable for development. 4. Exercise Eminent Domain. 5. Enter into contracts for the purpose of economic development. 6. Purchase all materials needed to carry out development. 7. Engage in research to determine factors of specified development projects. 8. Act as a limited partner in contracts with additional parties. Cross reference powers: 1. Exercise Industrial Development powers for HRA and EDA powers for industrial development activities. 32 Port Authorities: Purpose: Originally, the purpose behind port authorities was to acquire and promote development of harbors and ports. Currently, the only operating port in this regard is that of the Duluth Port Authority. The additional 25 port authorities in Minnesota exist to promote economic development, including increased commerce and acquisition of facilities within the specified port district of the City. Governing Body: A port authority is a governmental subdivision of the state. Direct authority is handled by a board of commissioners (usually 3-7 members) appointed by the City Council. Ports are a statutorily created municipal body. General Port Activities: 1. Adopt plans for improvement and development of port districts. 2. Oversee the activities of privately owned port facilities. 3. Acquire and construct various facilities and charge for the use of these facilities. 4. Acquire, lease, own and operate real or personal property. 5. Sell or exchange property (real or personal) owned by the port. 6. Determine legislation to improve development and commerce within the district. 7. Apply to the federal Foreign Trade Board for authorization to exercise the powers relating to foreign trade zones. 8. Act as agent for the federal government to carry out the provisions of sections 469.090 to 469.108. 9. Issue Revenue Bonds and with the approval of the City Council, given by ordinance, General Obligation Bonds secured by a pledge of the "Full Faith and Credit" of the City. Municipal Development Districts: Purpose: The purpose of an MDD is to improve the general economy of a community by increasing employment and enhancing the tax base. Governing Body: The MDD falls under control of the City Council/County Commissioners. The council then designates a board to administer the districts. In first class Cities, an advisory board must be created to aid with district activities. A majority of members on the board must be real property owners on lands within the district. In St. Paul and Minneapolis the board must be elected, in other Cities the members may be appointed. Activities: 1. An MDD may obtain land through eminent domain or negotiation. 2. The MDD may design a development program within the district. 3. The MDD may further develop the facilities, transportation, or overall quality of life in a district through building acquisition, construction or reconstruction. 4. The municipality may be given ordinances regulating traffic in parking facilities or pedestrian skyway systems. 5. A municipality may lease all or portions of the basement, 1st or 2nd floors of buildings within the district. 6. The MDD may accept grants from private institutions or other sources for public facilities and general improvements. 7. The municipality may use private developers to construct buildings/facilities under the development plan. The City will reimburse the developers from MDD funds. 8. A municipality has the authorization to: install lighting systems, street signs, construct special landscaping, install snow removal systems, and build public parking ramps. City Council Purpose: The main purpose of any City Council regarding the development units in this report, is to act as a control mechanism for operations. The power of the City Council and the controls it has over each of these units varies from City to City. For Port Authority: The City Council/County Commissioners of any port has indirect control over a port's use of general obligations bonds used for industrial projects. City Council/County Commissioners has the authority to approve the board of commissioners for any port. If a seven-member board is developed, two members must be from the City Council/County Commissioners. For Municipal Development District: City Council has the power to designate an existing department, agency, HRA, or other to administrate the district. City Council may adopt ordinances designed to aid specific MDD projects. The City has the power to create an MDD advisory board. The City Council may defer property taxes on improved property (within the district) where a private developer constructs the improvement upon request of the economic developer. 33 Port Authorities: (continued) 10. Contract with outside parties for the port. 11. Employ a director or additional staff as it deems necessary. 12. Allow membership in organizations to advance port activities and provide funds for public relations assistance. These powers granted to a port are connected with powers of industrial development districts: 1. Develop and improve property within an industrial district and make them adequate for industrial use. 2. Exercise the power of a City regarding mined underground development. 3. Obtain rights and easements connected with industrial districts. 4. Exercise the powers specified under Minn. Stat. §§ 469.152 to 469.1651 to further improve the purposes of sections 469.090 to 469.108 (port authorities and industrial development districts). 5. Enter into a partnership agreement where the port serves as a limited partner only. 6. Receive for one dollar, tax forfeited land. 7. Use the power of eminent domain. 8. A port authority may create industrial development districts within the port district. 9. A port may obtain lands and facilities required for industrial development purposes. 10. Cooperate, and become an agent to the federal government in carrying out legislation concerned with operations in harbor and industrial districts. 11. Operate and maintain various parking systems and facilities to improve economic development. City Council: (continued) For Municipal Industrial Development Act: City Council acts as the overall Governing Body with direct and indirect control over municipal activities. For Rural Development Finance Authority Act: Inapplicable--County related. For an HRA: City Council approves appointees to the HRA Board of Directors. City Council has certain powers of restrictions that may be enforced on the HRA. Generally, projects and activities must be approved by the City Council. For an EDA: The City Council may establish an EDA by way of enabling resolution. It may also determine the specific powers the EDA is to have in that resolution. City Council must have membership on the EDA Board of Commissioners. It may serve as the EDA Board of Commissioners in entirety or choose a portion of members from the business community or general public. City Council approves the Mayor's appointments to the EDA Board of Directors. 34 SAMPLE BYLAWS AND ENABLING RESOLUTIONS EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF [NAMEOFCITY], MINNESOTA HELD: _____________, [Year] Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of [NameofCity], Minnesota, was held at the [NameofCity] City Hall on _______________, [Year], commencing at ______ p.m. The following members of the Council were present: and the following were absent: Councilmember____________ introduced the following Resolution and moved its adoption: RESOLUTION CALLING FOR PUBLIC HEARING ON THE QUESTION OF ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY IT IS HEREBY RESOLVED by the City Council of the City of [NameofCity], Minnesota, as follows: 1. Recitals. (a) The City is authorized pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, to establish an Economic Development Authority for the City. (b) The Council desires to initiate the process for considering the establishment of an Economic Development Authority. 2. Public Hearing. The Council shall hold a public hearing on the question of establishing for the City an Economic Development Authority and the City Clerk is hereby authorized and directed to cause notice of that public hearing, substantially in the form attached to and made a part of this Resolution, to be published in the City's official newspaper once a week for two consecutive weeks prior to the scheduled public hearing date, with the first publication occurring no earlier than 30 days prior to the public hearing date. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember ___________________________ and upon vote being taken thereon, the following voted in favor thereof: 35 and the following voted against the same: whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and City Clerk. Adopted by the City Council on ________________, [Year]. By ____________________________________ Mayor Attest ___________________________ City Clerk 36 NOTICE OF PUBLIC HEARING ON THE PROPOSAL TO ESTABLISH AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF [NAMEOFCITY], MINNESOTA Notice is hereby given that the City Council (the "Council") of the City of [NameofCity], Minnesota, will hold a public hearing on _____________, [Year], at a meeting of the Council beginning at approximately _____ p.m., at the [NameofCity] City Hall in the City of [NameofCity], Minnesota, relating to the question of the establishment by the City of an economic development authority (the "EDA") pursuant to Minnesota Statutes, Sections 469.090 through 469.1082. Following the public hearing the Council will consider an enabling resolution (the "Enabling Resolution") which would establish the EDA. The Enabling Resolution, a copy of which is on file and available for inspection in the City offices, would authorize the EDA to exercise all powers granted to such authorities pursuant to the above-mentioned statutes and would designate that the EDA would be governed by a five-member Board of Commissioners, all of whom would be members of the City Council. Upon approval of the Enabling Resolution, an organizational meeting of the EDA will be held on the same evening. All interested persons may appear at the _____________ public hearing and present their views orally or in writing. 37 STATE OF MINNESOTA ) COUNTY OF [NAMEOFCOUNTY] ) SS CITY OF [NAMEOFCITY] ) I, the undersigned, being the duly qualified and acting City Clerk of the City of [NameofCity], Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular or special meeting of the City Council held on __________________, [Year], with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to calling a public hearing on the question of establishing an Economic Development Authority for the City. Witness my hand as City Clerk and the official seal of the City on _______________, [Year]. ___________________________________ City Clerk (SEAL) 38 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF [NAMEOFCITY], MINNESOTA HELD: ___________________, [Year] Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of [NameofCity], Minnesota, was held at the [NameofCity] City Hall on _______________, [Year], commencing at ______ p.m., C.T. The following members of the Council were present: and the following were absent: Councilmember____________ introduced the following Resolution and moved its adoption: ENABLING RESOLUTION ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF [NAMEOFCITY], MINNESOTA, UNDER MINNESOTA STATUTES, SECTIONS 469.090 THROUGH 469.1082 BE IT RESOLVED by the City Council (the "Council") of the City of [NameofCity], Minnesota (the "City"), as follows: 1. Recitals. The City is authorized pursuant to Minnesota Statutes, Sections 469.090 through 469.1082 (the "Economic Development Authority Act"), to establish an economic development authority for the City and the Council desires to do so in order to promote certain economic, commercial, housing, and/or industrial development and redevelopment goals and objectives. The City has caused notice of a public hearing on the establishment by the City of an economic development authority to be published in a newspaper of general circulation in the City once each week for two consecutive weeks, and pursuant to such notice, a public hearing on the proposal has been held by the Council on the date hereof, at which hearing all persons desiring to present their oral or written comments on the proposal were given an opportunity to do so. 2. Establishment of Economic Development Authority. Pursuant to the Economic Development Authority Act, the Council hereby establishes an economic development authority for the City to be known as the Economic Development Authority of the City of [NameofCity], Minnesota (the "EDA"). The EDA shall be governed by a board of commissioners thereof consisting of five members, all of whom shall be members of the Council. Each Commissioner of the EDA who is a member of the Council shall cease to be a Commissioner effective at such time as he or she is no longer a member of the Council, and a successor Commissioner shall be 39 appointed pursuant to the Economic Development Authority Act to serve the remainder of the applicable term so vacated. [Revise to reflect if EDA Board consists of community members and council members.] 3. Powers. The EDA shall have all powers given to an economic development authority pursuant to the Economic Development Authority Act, as the same may be amended or supplemented. [Revise to reflect if City is limiting the powers of the EDA] The motion for the adoption of the foregoing resolution was duly seconded by Councilmember ___________________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and City Clerk-Treasurer. Adopted by the City Council on ________________, [Year]. By ____________________________________ Mayor Attest ___________________________ Clerk 40 STATE OF MINNESOTA ) COUNTY OF [NAMEOFCOUNTY] ) SS CITY OF [NAMEOFCITY] ) I, the undersigned, being the duly qualified and acting City Clerk of the City of [NameofCity], Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular or special meeting of the City Council held on __________________, [Year], with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to an enabling resolution establishing the Economic Development Authority of the City of [NameofCity], Minnesota. Witness my hand as City Clerk and the official seal of the City on _______________, [Year]. ___________________________________ City Clerk (SEAL) 41 RESOLUTION ORGANIZING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF [NAMEOFCITY], MINNESOTA IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of [NameofCity], Minnesota (the "EDA") as follows: 1. Recitals. (a) On _____________, [Year], the City of [NameofCity], Minnesota (the "City"), acting through its City Council, adopted an enabling resolution establishing the EDA pursuant to Minnesota Statutes, Sections 469.090 through 469.108. (b) The Board wishes to provide for the basic organization of the EDA, including appointment of officers and adoption of Bylaws. 2. Adoption of Bylaws and Appointment of Officers. The Board hereby (1) approves the Bylaws of the EDA, as presented on the date hereof for the Board's consideration, and (2) appoints and approves the following officers of the EDA (Note: the offices of President, Vice-President and Treasurer must be held by Boardmembers, but the offices of Secretary and Assistant Treasurer need not be; the offices of President and Vice-President must be held by different persons): President ____________________ Vice-President ____________________ Secretary ____________________ Treasurer ____________________ Assistant Treasurer ____________________ The President shall be the chief presiding officer of the Board and shall have such other responsibilities as may be required by law or conferred on the President by resolution of the Board. In the absence of the President, the Vice-President shall assume all of said responsibilities of the President. The offices of President, Treasurer, and Secretary shall be elected annually, as required by law. The Secretary shall act as the chief recording officer for the Board and shall maintain a file of minutes of Board meetings and resolutions. In accordance with Minnesota Statutes, Section 469.096, Subdivision 8, all checks of the EDA shall be signed by the Treasurer and the Assistant Treasurer and shall state the nature of the claim for which the check is issued. As required by law, the EDA shall adopt an official seal. 3. Regular Meetings of the Board. The Board's regular meetings shall be held at such times as the Board may designate. 42 The following Boardmembers were present: and the following were absent: The motion for the adoption of the foregoing resolution was introduced by Boardmember __________________ and was duly seconded by Boardmember _______________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted and was signed by the President and Secretary. Adopted by the Board of Commissioners on ________________, [Year]. By ____________________________________ President Attest ___________________________ Secretary 43 STATE OF MINNESOTA ) COUNTY OF [NAMEOFCOUNTY] ) SS ECONOMIC DEVELOPMENT ) AUTHORITY OF THE CITY ) OF [NAMEOFCITY], MINNESOTA ) I, the undersigned, being the duly qualified and acting Secretary of the Economic Development Authority of the City of [NameofCity], Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular or special meeting of the Board of Commissioners held on ___________________, [Year], with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to a Resolution Organizing the Economic Development Authority of the City of [NameofCity], Minnesota. WITNESS my hand officially as Secretary on _________________, [Year]. _______________________________________ Secretary 44 BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF [NAMEOFCITY], MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Economic Development Authority of the City of [NameofCity], Minnesota" (which may sometimes be referred to as the "EDA" or the "Authority"), and its governing body shall be called the Board of Commissioners (the "Board"). The Board shall be the body responsible for the general governance of the Authority and shall conduct its official business at meetings thereof. Section 2. Seal of Authority. As required by Minnesota Statutes, Section 469.096, Subdivision 1, the Authority shall have an official seal, which shall be in the form depicted on Exhibit A. Section 3. Office of Authority. The offices of the Authority shall be the [NameofCity] City Hall. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority shall be a President, a Vice- President, a Treasurer, an Assistant Treasurer and a Secretary. The President, the Vice-President and the Treasurer shall be members of the Board and shall be elected annually, and no Commissioner may be both President and Vice-President simultaneously. The Assistant Treasurer and the Secretary need not be members of the Board. Section 2. President. The President shall preside at all meetings of the Board. Except as otherwise authorized by resolution of the Board, the President and the Secretary (the Vice-President, in the Secretary's absence or incapacity) shall sign all contracts, deeds and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice-President. The Vice-President shall perform the duties of the President in the absence or incapacity of the President; and in case of the resignation or death of the President, the Vice-President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The Secretary shall also have such additional duties and responsibilities as the Board may from time to time and by resolution prescribe. 45 Section 5. Treasurer. The Treasurer shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank or banks as the Board may select. The Treasurer and Assistant Treasurer shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Board. The Treasurer shall keep regular books of accounts showing receipts and expenditures and shall render to the Board, at least annually (or more often when requested), an account of such transactions and also of the financial condition of the Authority. The Treasurer shall post a bond as required by Minnesota Statutes, Section 469.096, Subdivision 6. The Assistant Treasurer shall act as the Treasurer's agent and assistant to perform the above-described duties, subject to the Treasurer's approval thereof. Section 6. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Board or the bylaws or rules and regulations of the Authority. Section 7. Vacancies. Should the office of President, Vice-President, Treasurer, Assistant Treasurer or Secretary become vacant, the Board shall elect a successor at the next regular meeting, or at a special meeting called for such purpose, and such election shall be for the unexpired term of said officer. Section 8. Additional Personnel. The Board may from time to time employ such personnel as it deems necessary to exercise its powers, duties, and functions. The selection and compensation of such personnel shall be determined by the Board. ARTICLE III - MEETINGS Section 1. Regular Meetings. The regular meetings of the Board shall occur according to a meeting schedule, if any, adopted or revised from time to time by resolution of the Board. Section 2. Special Meetings. Special meetings of the Board may be called by the President or any two members of the Board for the purpose of transacting any business designated in the call. The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Board or may be mailed to the business or home address of each member of the Board at least two (2) days prior to the date of such special meeting. At such special meeting no business shall be considered other than as designated in the call, but if at least four members of the Board are present at a special meeting, any and all business may be transacted at such special meeting. Notice of any special meeting shall be posted and/or published as may be required by law. Section 3. Quorum. The powers of the Authority shall be vested in the Board. Three Commissioners shall constitute a quorum for the purpose of conducting the business and exercising the powers of the Authority and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Board upon a vote of a majority of the Commissioners present. 46 Section 4. Order of Business. At the regular meetings of the Board the following shall be the order of business: 1. Roll call. 2. Approval of the minutes of previous meeting. 3. Bills and communications. 4. Reports. 5. Unfinished business. 6. New business. 7. Adjournment. All resolutions shall be written or transcribed and shall be retained in the journal of the proceedings maintained by the Secretary. Section 5. Adoption of Resolutions. Resolutions of the Board shall be deemed adopted if approved by not less than a simple majority of all Commissioners present, unless a different requirement for adoption is prescribed by law. Resolutions may but need not be read aloud prior to vote taken thereon and may but need not be executed after passage. Section 6. Rules of Order. The meetings of the Board shall be governed by the most recent edition of Robert's Rules of Order. ARTICLE IV - MISCELLANEOUS Section 1. Amendments to Bylaws. The bylaws of the Authority shall be amended only by resolution approved by at least three of the members of the Board. Section 2. Fiscal Year. The fiscal year of the Authority shall coincide with the fiscal year of the City of [NameofCity], Minnesota. Adopted on _____________, [Year]. 47 Exhibit A Form of Official Seal 48 SAMPLE JOB DESCRIPTION POSITION TITLE: Economic Development Director DEPARTMENT: Economic Development ACCOUNTABLE TO: City Administrator PRIMARY OBJECTIVE OF POSITION: Serves as chief staff to the Economic Development Authority, planning, directing, and implementing the economic development efforts of the City under the direction of the Authority. Performs highly skilled, managerial, coordinative and technical tasks. Generates business leads, promotes business retention and expansion, creates a positive attitude for development and raises supportive public awareness for strategic economic planning and development. DUTIES AND RESPONSIBILITIES: 1. Prepares, organizes and implements a coordinated target marketing program to generate leads for specific business and industry. 2. Researches, designs, recommends and implements programs to encourage location of new businesses and expansion of existing businesses within the City. Coordinates resources of public and private sectors - i.e. Federal and State Grants, Industrial Development Bonds and SPA Loans, Tax Increment Financing, banks, mortgage companies, etc. 3. Develops strategies and programs for allocation and delivery of City/Authority financial assistance resources. 4. Maintains contacts with Minnesota Department of Employment and Economic Development, area Development Corporations, and area commercial and industrial real estate brokers and developers. 5. Maintains current inventory of potential business location sites within the City - both building and vacant land, including contact persons. 6. Maintains updated demographic data, promotional materials and existing building lists for economic development programs. 7. Works with prospective businesses to tailor a proposal suited to their specific needs, including alternative locations and financing packages. 49 8. May negotiate economic incentive packages with prospective businesses. Analyzes financial needs of specific companies to insure that public/Authority resources are applied judiciously. 9. Maintains contact with current businesses to stay abreast of their future business plans and needs. 10. Identifies and contacts prospective clients for location and expansion within the City. 11. Assists locating or expanding businesses in understanding and anticipating comprehensive plan locations, zoning districts, standards and processes. Works closely with City Planning, Building Inspections, and Engineering Divisions to help facilitate a smooth review process. 12. Periodically reviews all economic development programs for effectiveness, making recommendations to Authority and City officials for changes as deemed appropriate. 13. Participates in exhibitions, seminars, media events and the like to attract businesses to the City. 14. Limited travel may be required to attend conferences, meet with prospective clients, research potential problems, financing, etc. 15. Prepare annual budget and work program for submission to the Authority and City Council. 16. Provide quarterly and annual report to the Authority and City Council regarding status of work program, future program potentials and activities of the staff. 17. Serves as chief staff support to Economic Development Authority. Prepares agendas and background information reports for Authority meetings. Attends meetings of the Authority, Chamber of Commerce, City Council, etc. and follows up staff responsibilities as assigned. 18. Completes other duties as assigned by the Economic Development Authority. KNOWLEDGE, SKILLS AND ABILITIES 1. Thorough working knowledge of the principles, practices and procedures of economic development. 2. Ability to organize and coordinate support from professional and technical City staff, legal consultants, other government agencies, private business, and the financial services industry. 50 3. Ability to analyze the economics of a particular business location or expansion project, so as to make independent judgments about the effectiveness of financial assistance or inducements. 4. Ability to establish and maintain contacts and effective working relationships with potential business clients. QUALIFICATIONS 1. Bachelor's Degree in Public Administration, Business Administration, or a closely related field highly desirable. 2. Minimum of three years of experience working in economic development, preferably at the local government level. 3. A demonstrated record of ongoing continuing education in economic development. 51 SAMPLE REVOLVING LOAN FUND POLICY Oakdale Seed Fund ____________________________________________________ Purpose The purpose of the Oakdale Seed Fund is to expand the tax base and promote new job opportunities by providing small business concerns and developers of multi-tenant facilities with a portion of the financing necessary for their projects. These Administrative Procedures set forth the organization and guidelines for personnel engaged in making loans through the Seed Fund. All personnel engaged in interviewing applicants for Fund assistance and accepting, screening, processing applications and servicing loans for the program should become familiar with this information. The procedures are for use by private lenders as well as staff employed by the City of Oakdale. Scope of EDA/ Seed Fund Activities Purpose The administrative procedures are a guideline for personnel working with the Oakdale Seed Fund. They set forth the internal requirements of the program and how it should be managed by the Oakdale EDA. The EDA was created with the intention of assisting small businesses primarily by providing financial assistance for growth and expansion. The EDA and the Seed Fund are intended to provide such assistance within the specified boundaries of the City of Oakdale. Any revenue generated by the Seed Fund to the EDA is incidental to the community benefits as measured by the creation and retention of jobs, increased tax base, expanded business ownership activities and improved community services. Authority Chapter 469 of the Minnesota State Statutes as amended authorizes the EDA to make loans to prospective private businesses. Recipients of financial assistance under this program are subject to non-discrimination requirements of the laws and policies governing such government assistance. 52 Project Financed By the Oakdale Seed Fund The purpose of the Oakdale Seed Fund is to provide assistance to small business. This may occur by directly providing financing to the small business or indirectly by providing financing to a developer who will build a facility to assist a small business. Eligible Applicant Defined Applicants may be small businesses or developers that are organized as a proprietorship, partnership or corporation. Size Eligibility For Businesses For purposes of the Oakdale Seed Fund, a business may qualify if its sales are less than $6 million annually for each of the last two fiscal years preceding the application for assistance from the fund. The Economic Development Authority may make exceptions to this rule on a case-by-case basis. Sound Business Purpose The proceeds from a loan made through the Oakdale Seed Fund are to be used to assist an identifiable small business concern or a developer in accomplishing a sound business purpose. A sound business purpose would not exist if any of the following conditions occur: a) If the project proposed will destabilize existing multi-tenant facilities or have an adverse impact on them. b) If it is to accomplish an expansion or conversion which is unwarranted in light of the small business concern’s past experience and management ability. Ineligible Projects a) Retail businesses b) Nonprofit institutions c) Gambling organizations d) Lending or investment organizations e) Land held primarily for sale or investment Project Costs “Project costs” should be limited to direct expenditures necessary to acquire, construct, convert, or expand a business including site 53 improvements and professional fees directly attributable and essential to a project such as survey, engineering, architectural, legal and accounting. In this context legal expenditures for such items as zoning changes title searches, title insurance, recording fees, etc., which are clearly essential to the total project can be included as project costs. While there is considerable flexibility in determining the composition of a project, in general it should be a productive asset when competed. In the classic sense, this would be land, building, machinery, and equipment. Elements of Project Costs In developing the aggregate project costs for the Oakdale Seed Fund the following guidelines will be used: Land Valuation of land injected by the small business concern into the project should be at the appraised value based on an appraisal acceptable to the EDA. The appraisal should conform with current bank regulatory requirements. Land Improvements Improvements which are paid through special tax assessments or user fees should not be included in determining project costs. Improvements to the land which are a portion of the project cost could include but are not limited to the following: 1) Grading 2) New streets or street improvements including curb and gutter 3) Parking lots 4) Utilities – water, sewer, gas, electric or 5) Landscaping Purchased and/or Remodel an Existing Building The cost of purchasing an existing building generally includes the value of the land and applicable fees and charges required to gain clear title to the property. Purchasing an existing facility with funds provided by the Oakdale Seed Fund is permissible. 54 Building Construction Construction includes the erection of a new building and/or a major addition to an existing building. Purchase Machinery and Equipment Oakdale Seed Fund proceeds can be used to finance the purchase of major items of machinery and equipment independent of land and building. These items are defined to have a useful life of at least 7 years. The term of the loan will be commensurate with the life of the asset. Ineligible Project Costs The following costs should not be construed as part of the project costs under this program. a) Management fees b) Financing costs and fees c) Franchise fees d) Debt consolidation e) Moving costs Leasehold Improvements Financing should be permitted for leasehold improvements including construction on leased land. The lease should be equal to or greater than the term of the loan. The remaining economic life of the facility or leasehold improvements should be equal to or greater than the term of the Seed Fund loan. Financing may be provided if the land or building owner allows the EDA to secure lien positions on the land or building and improvements, sufficient to fully secure its exposure or if other collateral sufficient in value to fully protect the interest of the Oakdale EDA is offered. Limited or Single Purpose Assets The construction or the purchase of limited use assets should not be financed under the Oakdale Seed Fund unless the liquidating value of the asset plus other available collateral, if sold, would be 55 sufficient to protect the Oakdale EDA from realizing a substantial loss. Working Capital Proceeds from an Oakdale Seed Fund loan should not be used for working capital or to refinance prior obligations of the small business concern. Availability of Personal Resources Since the primary focus of the Oakdale Seed Fund is economic development, personal resources of the owners or principals of the small business concern should not usually disqualify the small business concern from receiving assistance. Where credit factors indicate the need for additional capitalization, the injection of personal resources may be required to make the loan credit-worthy. Personal Guarantees The EDA should require the personal guaranty of any person owning 20% or more of the small business concern regardless of the form of ownership. Participants and Structure of Project Financing Maximum Private Sector Exposure The Oakdale Seed Fund is designed to foster projects contributing to sound economic growth in Oakdale in such a way that maximum private sector exposure is stimulated and encouraged. The Seed Fund should not be a substitute for conventional business financing or be used in place of other specialized state, federal or local programs that may be better suited to the specific project needs. In most Seed Fund projects a private sector lender will make a separate secured loan equal to a certain percentage of the total project cost and will usually be secured by a senior lien on project assets acquired with the financing. The EDA’s share of the project financing will usually be secured by a junior lien position on project assets. The EDA will use the Seed Fund to participate with the private sector lender in making the total loan to the small business concern. Private Sector Lender Financing may be provided by regulated and/or non-regulated financial institutions or noninstitutional sources if they are in the business of providing financing for commercial purposes and they are not associated with the small business concern receiving 56 financial assistance. The terms and conditions of such financing must be acceptable to the Oakdale EDA based on the small business concern’s ability to repay the Oakdale Seed Fund Loan. Interest Rate The lender and EDA may establish their own rate provided the rate is legal and reasonable. The lender and EDA may charge either a fixed or variable rate of interest on their loan. A renegotiable rate of interest is acceptable provided terms and conditions are established and agreed to both by the Oakdale EDA and the lender at the time of the loan approval. The EDA must be aware of the lender’s terms and conditions in assessing the small business concern’s ability to repay the Oakdale Seed Fund Loan. Balloon Payment Such payments may be considered where circumstances warrant their use. Amount The maximum amount of private lender financing should be included in each project. At least 50% of the project cost should be funded by a private lender. Maturity Maturity must be reasonable in relation to the life of the asset being financed. In no instance should the maturity of the Oakdale Seed Fund Loan exceed the maturity of the loan being provided by the private lender. Personal Guarantees The EDA requires the personal guaranty of any person owning 20% or more of the small business concern regardless of the form of ownership. Where ownership ranges from 5% to 19% the requirement for personal guarantees is discretionary. A partial guarantee may be considered for less than the total amount of the loan. Generally, a guaranty will not be required where ownership is less than 5%. Alter Ego Loans For tax and other reasons some small business owners prefer to separate the ownership of the asset from the operating small business concern. In such cases the small business owners form two legal entities: One entity owns part or all of the fixed assets and the other entity is the operating company. Loans will be permitted to the “alter ego” (passive concern) which is an eligible small business concern when: a) The applicant (passive concern) is a business entity that is organized and operated for profit, whether operating as an individual proprietorship, partnership or corporation; 57 b) The operating small business concern is an eligible small business and the proposed use of proceeds would be allowable for such assistance if the operating small business concern were the owner of the property that is owned or to be owned by the applicant; c) The ownership interests in the applicant shall be completely identical with and in the same proportion as the ownership interest in such operating small business concern; d) Collateral includes an assignment of the lease between the applicant and the operating small business concern and a lien on the property itself. The lease, including options, shall be for a term of not less than the term of the loan; e) The operating small business concern must be either a guarantor or co-borrower, and any owners of 20% or more of the equity of the operating small business concern and of the applicant must also guarantee the loan. Franchises A franchise is eligible for the Oakdale Seed Fund if the franchise has the right to profit from his/her efforts commensurate with ownership and is eligible in all other respects. Franchises are ineligible only in the exceptional cases where the franchise agreement disguised as a contract of employment under the guise of a franchise operation. Where royalty or similar payments must be made by the borrower to the franchisor, a condition should be considered that prohibits such payment as long as the EDA loan is in default. Where credit factors warrant, guarantee of the franchisor should also be considered. Operational Requirements Responsibilities of the EDA/Oakdale Seed Fund The Oakdale EDA/Seed Fund will offer its assistance to small business in need of financing. It will cooperate with other lenders participating in projects. The EDA and the Seed Fund are able to: a) Package and process loan applications b) Close and service loans c) Make available management services or cause such services to be made available 58 d) Maintain the organizational and operational requirements set forth in these administrative guidelines Disclosure of Information On a loan application, no recommendation of any individual, (including a loan officer, city staff person or EDA board member) may be divulged directly or indirectly to an applicant, or to any of its representatives or any other unauthorized source. Only final EDA actions may be released. Diversified Portfolio The EDA will not concentrate the Seed Fund in any one type of industry. The EDA is encouraged to make loans to a variety of businesses in different industries. The Oakdale Seed Fund is designed primarily to assist existing healthy businesses to grow and create jobs. While new businesses (businesses in existence for less than two years) do create jobs, they should be considered for Seed Fund financing only after careful scrutiny as to management capability, experience, and financial support. Place of Business The EDA shall maintain an accessible place of business open to the public during regular business hours and maintain staff adequate to perform normal business transactions. The EDA’s place of business shall be located within the Community Development Department of the Oakdale City Hall. Fiscal Year The EDA shall choose and establish a fiscal year. The EDA is encouraged to establish a fiscal year which coincides with the City’s fiscal year (January 1 through December 31). Records The EDA shall maintain financial records including books of accounts and minutes of all meetings of the directors. All records and supporting documents relating to the EDA’s transactions shall be kept at its’ principal office. Records and documents which are the basis for or related to the financial statements or loans shall be preserved for the periods required by the Internal Revenue Service (IRS) in accordance with generally accepted accounting practices. Maintaining Loan Portfolio Documents The EDA shall develop a filing and control system which ensures that the following information and documents relating to its loan portfolio are available at its principal office. The EDA filing 59 system must contain information and documents related to each loan made through the Seed Fund as follows: 1) Loan application including all exhibits; 2) Loan authorization and all correspondence related to the loan prior to closing; 3) Loan closing documents including all documents relating to participation with the private lender; 4) Evidence of a 10% equity injection by the small business concern; 5) Amortization schedule; 6) Financial statements of the small business concern; 7) Related correspondence; 8) Evidence of field visits; 9) Condition of collateral; 10) Tickler file for insurance and UCC; 11) Evidence that taxes and insurance have been paid; 12) All other items relating to the loan. Restrictions Conflicts of Interest/Self-Dealing Self-dealing by the EDA, its Board of Directors, employees or any other related parties to the prejudice of the small business concern, or the EDA is prohibited. The EDA shall not permit a significant relationship to exist or to be created between the EDA and a small business concern to be assisted while assistance through the Seed Fund is outstanding. Servicing Capability In most cases, the EDA will service the loan. The EDA may require that the private lender to service the loan. In this instance, a servicing agreement will be completed between the private lender and the EDA. Costs of servicing will be paid for by the applicant. 60 Notice of Default In cases where the private lender is servicing the loan, the lender must agree to furnish the Oakdale EDA with written notice of any default by the small business concern within thirty (30) days of the date of default. The lender must give the Oakdale EDA sixty (60) days notice prior to a foreclosure sale. This agreement must incorporate provisions providing for a timely written notification from the lender to the Oakdale EDA of any default, delinquency by the small business concern on the lender’s portion of the financing and the right of the Oakdale EDA to an immediate purchase of the lender’s senior position in the loan thereby allowing the EDA the opportunity to protect its position and to avoid the accumulation of legal costs, preservation expenses, etc. Loan Processing Repayment ability An Oakdale Seed Fund Loan must be secured so as to reasonably assure repayment. Reasonable assurance of repayment takes into consideration earnings, management ability and financial condition of the borrower as well as the value of collateral. Process for Analyzing Loan Applications The intake of loan applications will be completed by the Community Development Department staff of the City of Oakdale. Upon receipt of a complete application, the staff will complete an initial review to determine the ability of the program to address the identified financing need. If the project meets the intent and general parameters of the program, the application will be forwarded to the city’s economic development consultant who will complete additional due diligence work on the application. The consultant will provide a report on the loan request to the Loan Committee of the EDA. The loan committee will make a recommendation to the Economic Development Authority who will make the final decision on the loan request. Credit Information and Credit Reports Upon receipt of the loan application, a credit report will be ordered from the private lender participating in the project. The report will be provided to the Oakdale EDA if the lender receives permission from the borrower. If the application package includes an acceptable credit report or sufficient credit information is supplied by the small business concern/lender or is available from other sources a new credit report may not be needed. Letters should be written by the private lender to credit references and others where 61 necessary to determine the applicant’s credit standing. Telephone contact should be made with credit references where appropriate. Credit Requirement The small business concern must meet certain practical credit requirements including the following: 1) The applicant must be in good character as determined by the private lender and the Oakdale EDA. 2) There must be evidence that management has the ability to operate the business successfully. 3) The small business concern must have enough capital in the business so that with the assistance through the Oakdale EDA and Seed Fund it will be possible for the business to operate on a sound financial basis. 4) While the questions of security and collateral are important in determining whether financial assistance will be extended, they are not the only factors upon which the approval or rejection of an application is determined. The Oakdale EDA attaches great importance to management, the inherent soundness of the small business concern, the small business concern’s earnings records and prospects, the small business concern’s long-range possibilities for successful operation and whether the granting of financial assistance will increase employment or have other favorable effects on the economy of the City of Oakdale. Financial Statement Requirements The loan officer of the private lender must evaluate the reliability of the financial statement submitted. All statements must be signed and dated by the proprietor, a partner, or unauthorized office of the applicant unless they are accompanied by an independent accountant’s report. Statements submitted on a compilation basis must be signed by the small business concern owner or designated officer. Business Financial Statements 62 Balance sheets, profit and loss statements and statement of change in financial position are normally required for the preceding two full years. In addition, an interim statement for the current period is required when the application is received more than ninety (90) days after the end of the last fiscal year. An aging of accounts receivable and payables should accompany the interim balance sheet. Analysis of Loan Applications Additional Data Additional financial data or written explanation may be required where necessary for an adequate analysis. This is especially true for new businesses or for existing businesses planning major changes in their operations. Both cases should require earnings projections. Cash flows or other types of data may be required where deemed necessary and appropriate. Personal Financial Statements Personal financial statements are required for proprietors, general partners each owner of 20% or more of the business including limited partners and guarantors. All statements must be signed and dated. Processing Time All loans are to be processed within thirty (30) working days. The processing cycle will begin with the day the application is received as indicated by a date stamp and ends when the loan authorization is issued. Time awaiting the receipt of additional information will be excluded from the processing time. If major delays are anticipated in receiving additional information to complete the package, the application will be returned to the small business concern within three (3) working days. Loan Servicing There are two options for loan servicing. The EDA may elect to have loans serviced by lenders participating in the financing for any project or service the loan internally. The EDA may require the servicer to obtain and review the financial statements of the small business concern annually; review the small business concern’s payment of taxes and insurance, review the uniform commercial code filings on 63 collateral and monitor other financing senior to the loan to assure that payments are current. The EDA may also require the servicer to make field visits as necessary to review the condition of collateral and report to the EDA any default or any other adverse trend condition or information as they occur and take or propose remedial servicing actions as ordinarily performed by a prudent lender. The EDA will provide written instructions to the servicer outlining the services that need to be provided as a part of the servicing contract. In addition, the servicer will not, without the prior written authorization of the Oakdale EDA, authorize any actions regarding the EDA loan including: 1) Make or consent to any substantial alteration in the terms of the loan instrument. 2) Make or consent to release of collateral. 3) Accelerate the maturity of the note. 4) Sue upon the loan instrument. 5) Waive any claim against borrower, guarantor, obligor or stand-by creditor arising out of the loan instrument. 6) Directly or indirectly charge or receive a bonus, fee, commission or other payment or benefit in connection with the making and servicing of the loan except as authorized by the program. 7) Require or obtain any funds, certificates of deposit or compensating balance not under the unrestricted control of the small business concern or any other agreement establishing any preference in favor of the lender. Repayment The servicer is required to ensure the timely forwarding of the small business concern’s monthly payment to the Oakdale Seed Fund. 64 Upon request, this information can be made available in alternative formats. For more information, email economic.development@state.mn.us or call 651-259-7432. DEED is an equal opportunity employer and service provider.