EDA Agenda 05-13-2015EDA MEETING
Wednesday, May 13th, 2015
6:00 p.m.
Mississippi Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy
Hinz, James Davidson, Steve Johnson and Council members Tom Perrault and Lloyd Hilgart
Staff: Executive Director Jeff O'Neill, Angela Schumann, Wayne Oberg
1. Call to Order.
2. Roll Call.
3. Approve Meeting Minutes:
a. Special Meeting — April 8th, 2015
b. Regular Meeting — April 8th, 2015
4. Consideration of additional agenda items.
5. Consideration of approving payment of bills.
6. Consideration to adopt Resolution EDA 2015 -006 approving an Assignment and
Assumption Agreement Between Front Porch Associates, Ltd and Michael Cyr as Related
to Tax Increment Financing District No. 1 -29.
7. Consideration to approve expense and authorize agreement related to additional
demolition related costs and completion of a Phase II Environmental Site Assessment for
the EDA -owned property at 100 East Broadway.
8. Consideration of action relating to Transformation Home Loan.
9. Consideration to adopt the 2015 EDA Work Plan.
10. Consideration to establish an EDA sub - committee for development of an Economic
Development staff recommendation.
11. Consideration of Director's Report.
12. Adjourn.
EDA Agenda: 5/13/15
5. Consideration of approving payment of bills (WO)
A. REFERENCE AND BACKGROUND:
Invoices submitted during the previous month are included for review and
consideration.
B. ALTERNATIVE ACTIONS:
1. Motion to approve payment of bills through April 2015.
2. Motion to approve the payment of bills through April 2015 with changes
directed by the EDA.
C. STAFF RECOMMENDATION:
Staff recommends approval of payment for invoices submitted.
D. SUPPORTING DATA:
Invoices
Accounts Payable
CJTY Or
Transactions by Account
User: Julie.Cheney Monti eRo
Printed: 04/08/2015 - 1:24PM Mo
Batch: 00203.04.2015
Account Number Vendor Description GL Date Check No Amount PO No
213 - 46301 - 421990 WRIGHT CO RECORDER Satisfaction of Mortgage - Dezell 04/14/2015 113932 46.00
Vendor Subtotal for Dept:46301 46.00
213 - 46301 - 430400 KENNEDY AND GRAVEN CHART General EDA TIE 36 & 37 04/14/2015 113898 425.50
213 - 46301 - 430400 KENNEDY AND GRAVEN CHART General EDA Matters through 2/28/15 04/14/2015 113898 943.50
213 - 46301 - 430400 KENNEDY AND GRAVEN CHART BLK034 TIE District through 2/28/15 04/14/2015 113898 74.00
Vendor Subtotal for Dept:46301 1,443.00
213 - 46301 - 434600 MICHAEL D CHOUINARD Property Signs (2) 04/14/2015 113884 650.00
Vendor Subtotal for Dept:46301 650.00
Subtotal for Fund: 213 2,139.00
The preceding list of bills payable was reviewed and approved for payment.
Report Total: 2,139.00
Date: 5/13/15 Approved by:
Tracy Hinz, Treasurer
AP- Transactions by Account (04/08/2015 - 1:24 PM) Page 1
Accounts Payable
CJTY Or
Transactions by Account
User: Debbie.Davidson Monti eRo
Printed: 04/22/2015 - 3:34PM Mo
Batch: 00205.04.2015
Account Number Vendor Description GL Date Check No Amount PO No
213-46301-431990 WSB & ASSOCIATES INC Econonmic Development & Market M 04/28/2015 0 4,000.00
Vendor Subtotal for Dept:46301 4,000.00
213-46301-431990 NORTHLAND SECURITIES INC EDA Special Tax Levy Authority - Ma 04/28/2015 113986 660.00
Vendor Subtotal for Dept:46301 660.00
213-46301-431990 HARRY LANTTO 4/8/15 EDA Meeting Recording 04/28/2015 0 60.00
Vendor Subtotal for Dept:46301 60.00
213 - 46301 - 437100 WRIGHT CO AUDITOR -TREAS R155- 171 - 000060 first 1/2 tax 04/28/2015 114012 678.00
Vendor Subtotal for Dept:46301 678.00
Subtotal for Fund: 213 5,398.00
The preceding list of bills payable was reviewed and approved for payment.
Report Total: 5,398.00
Date: 5 -13 -15 Approved by:
Tracy Hinz, Treasurer
AP- Transactions by Account (04/22/2015 - 3:34 PM) Page 1
Accounts Payable
CJTY Or
Transactions by Account
User: Julie.Cheney Monti eRo
Printed: 04/15/2015 - 10:55AM Mo
Batch: 00201.04.2015
Account Number Vendor Description GL Date Check No Amount PO No
213 - 46301 - 443990 US BANK CORPORATE PMT SYS Dominos Pizza - Pizza for special wort 04/28/2015 0 34.28
Vendor Subtotal for Dept:46301 34.28
213 - 46500 - 443990 US BANK CORPORATE PMT SYS Target - Chips for meeting lunch 04/28/2015 0 3.99
213 - 46500 - 443990 US BANK CORPORATE PMT SYS Jimmy Johns - food for meeting 04/28/2015 0 32.30
Vendor Subtotal for Dept:46500 36.29
213-46522-431000 US BANK CORPORATE PMT SYS Advanced Disposal - February 2015 04/28/2015 0 10.55
Vendor Subtotal for Dept:46522 10.55
Subtotal for Fund: 213 81.12
The preceding list of bills payable was reviewed and approved for payment. Report Total: 81.12
Date: 5/13/15 Approved by
Tracy Hinz, Treasurer
AP- Transactions by Account (04/15/2015 - 10:55 AM) Page 1
Accounts Payable
CJTY Or
Transactions by Account
User: Debbie.Davidson Monti eRo
Printed: 05/01/2015 - 10:57AM
Batch: 00215.04.2015
Account Number Vendor Description GL Date Check No Amount PO No
213 - 46522 - 438100 XCEL ENERGY ZCULPS - 51- 0623082 -8 04/30/2015 0 17.09
Vendor Subtotal for Dept:46522 17.09
Subtotal for Fund: 213 17.09
Report Total: 17.09
The preceding list of bills payable was reviewed and approved for payment.
Approved by:
Tracy Hinz, Treasurer
AP- Transactions by Account (05/01/2015 - 10:57 AM) Page 1
EDA Agenda: 05/13/15
6. Consideration to adopt Resolution EDA- 2015 -006 approving an Assignment and
Assumption Agreement Between Front Porch Associates, Ltd and Michael Cyr as
Related to Tax Increment Financing District No. 1 -29. (AS)
Michael Cyr, developer of the Vine Place project, has requested that the EDA approve an
assignment of the tax increment for TIF District 1 -29.
In 2002, the Housing and Redevelopment Authority, the City of Monticello and Front
Porch Associates, Ltd. entered into a Contract for Private Development for the Vine
Place development project. Under the Contract, the HRA agreed to reimburse Front
Porch for a portion of the costs of acquisition of the development site and site
improvements through tax increment generated in the district.
Mr. Cyr has requested that the contract now be assigned to himself, as the business entity
of Front Porch Associates, Ltd is being dissolved. The dissolution is stated as occurring
due to the development project being completed and obligations fulfilled. Upon approval
and execution of the assignment and assumption Mr. Cyr will receive the available tax
increment and will assume the continuing rights and obligations of the contract. This is
not an amendment of any of the other terms of the contract.
Staff has that the development improvements required by the contract have been
completed and any private loans or mortgages associated with Front Porch Associates,
Ltd. have been satisfied.
B. ALTERNATIVE ACTIONS:
1. Motion to adopt Resolution EDA- 2015 -0 approving an Assignment and
Assumption Agreement Between Front Porch Associates, Ltd and Michael Cyr.
2. Motion of other.
C. STAFF RECOMMENDATION:
Staff recommends approval of the resolution and the col esponding execution of the
assignment and assumption agreement.
D. SUPPORTING DATA:
A. Resolution EDA- 2015 -006
B. Assignment and Assumption Agreement
C. Letter of Request
1
CITY OF MONTICELLO
WRIGHT COUNTY, MINNNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA- 2015 -006
APPROVING AN ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN
FRONT PORCH ASSOCIATES, LTD AND MICHAEL CYR
BE IT RESOLVED By the Board of Commissioners ('Board ") of the City of Monticello
Economic Development Authority ( "Authority ") as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of Monticello (the
"HRA "), the City of Monticello (the "City ") and Front Porch Associates, Ltd. (the "Assignor ")
entered into a Contract for Private Development dated as of May 1, 2002, as amended (the
"Contract ").
1.02. Pursuant to the Contract, the HRA agreed to reimburse Assignor for a portion of
Assignor's costs of acquisition of and site improvements on the Development Property through
Available Tax Increment.
1.03. In 2007, the HRA and the Authority consolidated operations, and the Contract was
assigned by the HRA to the Authority.
1.04. Assignor now wishes to assign its rights and obligations under the Contract to
Michael L. Cyr (the "Assignee "), and to assign the right to receive Available Tax Increment to
Assignee, and Assignee wishes to assume such rights and obligations under the Contract and
accept the assignment of the Available Tan Increment, and to that end the Assignor and Assignee
have proposed to enter into an Assignment and Assumption Agreement (the "Assignment").
1.05. The Board has reviewed the Assignment and finds that the approval and execution of
the Authority's consent thereto are in the best interest of the City and its residents.
Section 2. AuthoritApproval, Other Proceedings.
2.01. The Assignment, including the attached Consent of the Authority related thereto, as
presented to the Board is hereby in all respects approved, subject to modifications that do not alter
the substance of the transaction and that are approved by the President and Executive Director,
provided that execution of the consent to the Assignment by such officials shall be conclusive
evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Consent attached to the Assignment and any other documents requiring execution
by the Authority in order to carry out the transaction described in the Assignment.
459925v1 MNIMN190 -101
CITY OF MONTICELLO
WRIGHT COUNTY, MINNNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA- 2015 -006
2.03. Authority staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this day of , 2015.
President
ATTEST:
Secretary
459925v1 MMNM190 -101 2
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS ASSIGNMENT, made as of this day of April, 2015, by and between FRONT
PORCH ASSOCIATES, LTD, a Minnesota limited liability company, with its principal office at
P.O. Box 1338, Monticello, Minnesota 55362 ( "Assignor "), and Michael L. Cyr, an individual,
whose address is P.O. Box 1338, Monticello, Minnesota 55362 ( "Assignee ").
RECITALS:
A. The Housing and Redevelopment Authority in and for the City of Monticello (the
"HRA "), the City of Monticello (the "City ") and Assignor entered into a Contract for
Private Development dated as of May 1, 2002, as amended (the "Contract ").
B. The defined terms in the Contract shall have the same meaning hereunder.
C. Pursuant to the Contract, the HRA agreed to reimburse Assignor for a portion of
Assignor's costs of acquisition of and site improvements on the Development Property
through Available Tax Increment.
D. In 2007, the HRA and the City of Monticello Economic Development Authority (the
"Authority ") consolidated operations, and the Contract was assigned by the HRA to the
Authority.
E. Assignor now wishes to assign its rights and obligations under the Contract to Assignee,
and to assign the right to receive Available Tax Increment to Assignee, and Assignee
wishes to assume such rights and obligations under the Contract and accept the
assignment of the Available Tan Increment.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:
Assignor does hereby grant, transfer, and assign to Assignee all of its rights and
interests in the Contract.
2. Assignee hereby accepts this Assignment and assumes and agrees to faithfully
abide by, perform, and discharge each and every term, covenant, and condition of
the Contract and the exhibits thereto applicable to the "Developer," and to be fully
bound by all of the foregoing.
3. Notwithstanding any provisions to the contrary in the Contract, the parties agree
and understand that the Contract shall terminate on February 1, 2020 or upon such
earlier date terminated in accordance with its terms, and that the final payment of
Available Tax Increment to the Assignee will occur on or before the Termination
Date.
459879v MNIMN190 -97
4. Assignor and Assignee agree that this Assignment shall not be amended or
changed in any way without prior written approval of the Authority and City.
5. This Assignment and Assumption shall be binding upon and inure to the benefit
of the successors and assigns of the parties hereto and shall further be for the
benefit and reliance of the Authority and City.
[The remainder of this page is intentionally left blank.]
459879v MNIMN190 -97 2
IN WITNESS WHEREOF, the parties have executed this Assignment and Assumption
Agreement as of the date first indicated above.
ASSIGNOR:
FRONT PORCH ASSOCIATES, LTD.
By:
Its:
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of April, 2015, by
, the President of Front Porch Associates, Ltd., a Minnesota corporation,
on behalf of the corporation.
Notary Public
459879v MNIMN190 -97 S -1
ASSIGNEE:
MICHAEL L. CYR
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of April, 2015, by
Michael L. Cyr, an individual.
Notary Public
459879v MNIMN190 -97 S -2
The foregoing Assignment and Assumption of Contract for Private Development is consented to by:
CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
CITY OF MONTICELLO, MINNESOTA
By
Its Mayor
By
Its City Administrator
This document was drafted by:
KENNEDY & GRAVEN, Chartered (MNI)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
Telephone: (612) 337 -9300
459879v MNIMN190 -97 S -3
Front Porch Associates, Ltd. — Michael Cyr
P.O. Box 1338
Monticello, MN 55362
Phone: 612.366.0717
27 March 2015
Wayne 4berg
City of Monticello, Minnesota
505 Walnut Street
Monticello, Minnesota 55362
Mr. Qberg,
As the sole shareholder and President of Front Porch Associates, Ltd., I hereby request
that the proceeds of Tax Increment Finance District 1 -29 that have previously been
disbursed to Front Porch Associates, Ltd_ be assigned to Michael L. Cyr for all future
disbursements.
The business entity of Front Porch Associates, Ltd. is being dissolved, as the purpose
for its formation has been fulfilled.
Please acknowledge receipt of this request and acceptance by the City of Monticello of
this assignment.
Sincerely,
Michael L. Cyr
PO Box 1338
Monticello, Minnesota 55362
EDA Agenda: 05/13/15
7. Consideration to approve expense and authorize agreement related to additional
demolition related costs and completion of a Phase 11 Environmental Site
Assessment for the EDA -owned property at 100 East Broadway. (AS /SB)
A. REFERENCE AND BACKGROUND:
The EDA is asked to consider authorizing additional fees related to unknown conditions
discovered with demolition and also authorize resulting expenses for a Phase II
Environmental Site Assessment (ESA) as related to the demolition of the EDA -owned
property at 100 East Broadway.
Phase 11 FSA
On Wednesday, May 6, discolored soil and petroleum type odors were observed with the
removal of the foundation and sewer service extension for the 100 East Broadway
building. As the EDA will recall, a Phase I Environmental Site Assessment was
completed on publicly -owned properties on Block 34 and identified a Philips 66 Station
historically occupied the site as well as a coal gasification use. WSB's environmental
scientist was on -site on May 6 to observe the resulting conditions. A soil sample was sent
to a testing lab on May 7 to determine the type and concentrations of the potential
contaminant found in the soil per MPCA guidelines. The results of the test will be known
the week of May 11 to determine if the sample constituents a potential environmental
release. If the result qualifies as a contaminant release, the City could be eligible for
reimbursement of remediation costs based on the MPCA's Petrofund program. This
process will be vetted after all testing and investigation is completed. This discovery also
triggers the recommendation to complete a Phase II ESA now. The recommendation
with the Phase I report was to complete a Phase II ESA prior to redevelopment of the
block.
Consequently, as part of MnDOT's TH 25 /CSAH 75 intersection project plan review, the
agency has also requested that the City complete a Phase 11 ESA. This request is related
to the conveyance of land to MnDOT for the right turn lane from north -bound TH 25 to
east -bound CSAH 75. This conveyance will transfer property from the EDA to MnDOT
for right of way purposes.
WSB & Associates, the City's consulting engineer, has prepared a scope of work for the
Phase 11 analysis. The scope includes a description of services, timeline for completion
and cost estimate.
At this time, WSB and the Finance Director are also reviewing whether the scope
included with the Phase II as identified will be sufficient to meet the requirements of a
possible future Soils Condition District. More information on that issue will be presented
during the regular EDA meeting.
EDA Agenda: 05/13/15
The Phase 11 will also address specifically the requirements of MnDOT for the land
conveyance area of 100 East Broadway. Staff reviewed the option of extending the
Phase 11 analysis area to include other publicly -owned parcel on the Block. However, the
existing buildings on the site represent an obstacle to a full Phase 11 analysis for 112 and
130 East Broadway at this time. It would be inefficient to complete portions of a Phase II
analysis for those properties at this time. A Phase 11 ESA for those properties will be an
option at a future time.
It should be noted that timing of completion of the Phase II ESA is important relative to
the TH 25 /CSAH 75 improvements. WSB's scope of work is designed to fit within these
constraints. After the Phase II is complete, it will then be determined if additional
investigation and remediation will need to occur based on the test results and as
determined by the MPCA. If additional investigation and remediation is needed, this will
result in additional costs beyond the scope of the Phase 11 ESA.
The EDA is asked to expend $12,500 toward the cost of the Phase 11 ESA as described in
the enclosed proposal. The scope of the Phase II needs to be approved by MnDOT and it
is anticipated confirmation of the scope will occur prior to the EDA meeting.
Additional Demolition - Related Fees
On May 6, the City's water and sewer utility superintendent discovered an additional 4-
inch PVC line under the sidewalk along TH 25 that connected to the known 6 -inch
service line that was to be extended to the site as part of the demolition contract. A
trench box was delivered to the site on May 7 to allow for safe exploration of this 4 -inch
line to determine where the service extends to within the site and where it should be
disconnected and capped. The additional cost of the trench box supplied by Veit totaled
$1,550. Additional labor and equipment costs provided by Veit to assist in the
exploration of this service line is estimated at $1,000. In addition, two sidewalk panels
were removed and need to be replaced to maintain pedestrian use until the TH 25 /CSAH
75 intersection improvements start in mid -July. Public Works will replace the sidewalk
with cold mix asphalt in the interim.
Additional fees related to testing of the potential contaminated soil, reporting and
additional on -site observation by WSB to address these above outside of the project
scope for demolition oversight services, totals approximately $2,500.
The total cost for the above additional fees is $5,050.
Al. Budget Impact: The Phase II ESA as proposed is estimated at $12,500. The
additional demolition - related fees total $5,050. These two costs total $17,550.
This amount will be paid from the EDA General Fund.
EDA Agenda: 05/13/15
A2. Staff Workload Impact: The administration of the ESA contract will require the
work and coordination between the Community Development and Engineering
departments.
B. ALTERNATIVE ACTIONS:
Motion to approve expense of $17,550 and to authorize the EDA Director and
President to enter into an agreement related to completion of a Phase II
Environmental Site Assessment for the EDA -owned property at 100 East Broadway.
2. Motion to request quotes for completion of a Phase II Environmental Site Assessment
for Publicly -Owned Parcels on Block 34.
3. Motion of other.
C. STAFF RECOMMENDATION:
City staff recommends Alternative #1. As a professional service, the EDA is not required
to obtain quotes for the Phase II ESA. Given WSB's familiarity with the site area, their
completion of the Phase 1 document, and the project time constraints, staff recommends
proceeding under alternative 1.
However, the EDA may wish for staff to obtain quotes prior to proceeding and authorize
staff to call for a special meeting for consideration as necessary.
D. SUPPORTING DATA:
A. Proposal and Agreement for Phase III Environmental Site Assessment Services, WSB
& Associates
WSB
&& Assoc- engineering • planning • environmental • construction 701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel 763 - 541 -4800
Fax 763 - 541 -1700
May 7, 2015
Angela Schumann
Community Development Director
505 Walnut Street, Suite 1
Monticello, MN 55362
Re: Scope of Work and Cost for a Limited Phase II ESA located at the intersection of Trunk
Highway 25 and CSAH 75 (Broadway Street) in Monticello, MN.
Dear Ms. Schumann:
As requested, outlined below is a scope of work and cost to perform a Limited Phase II
Environmental Site Assessment (ESA) located at the intersection of Highway 25 and Broadway
Street in Monticello, Minnesota (the Site) in light of the potential contaminant release discovered
on May 6, 2015 with the demolition of the building at 100 West Broadway Street. A Phase I
ESA completed by WSB determined that a Philips 66 Station historically occupied the
southeastern corner of the Site (current location of 100 Broadway East) from approximately
1930 to 1970. Based on this information, a subsurface investigation was recommended since
previous gasoline storage and /or automobile service activities may have resulted in
undocumented petroleum releases. The purpose of the Limited Phase II ESA is to assess the
subsurface soil, groundwater, and soil vapor conditions at the Site for evidence of a petroleum
release. Recently, MnDOT has requested a Phase II Environmental Site Assessment for the site
and adjoining areas as it relates to the conveyance of right of way from the EDA to MnDOT at
the southeast corner of the intersection to accommodate the intersection improvements.
The following tasks are proposed as part of this scope of work:
Soil Borings and Screening
WSB will complete 8 soil borings at the intersection as show on the enclosed map to assess the
subsurface soil, groundwater, and soil vapor conditions. The soil borings will be advanced 24
feet below ground surface (bgs) or at least 5 feet below the groundwater table (whichever is
encountered first). Five (5) soil borings will be advanced on the southeastern corner of the
intersection (current location of 100 Broadway East), two borings will be advanced on the
southwestern corner of the intersection, and one boring will be advanced on the northeast portion
of the intersection. The soil boring activities will consist of the following:
• Performing public and a private utility locates prior to the subsurface investigation.
• Advancing eight (8) push -probe soil boings to 24 feet bgs.
• Screening soils using a photoionization detector (PID) with a 10.6 eV lamp.
St. Cloud • Minneapolis • St. Paul
Equal Opportunity Employer
wsbeng.com
Ms. Angela Schumann
May 6, 2015
Page 2
• Recording general soil classifications /observations on a field log.
• Abandoning borings per Minnesota Department of Health (MDH) requirements.
Soil, Groundwater, and Soil Vapor Sampling
WSB will collect soil, groundwater, and soil vapor samples from each boring location. The
sampling will consist of the following:
• Collecting of up to eight (8) soil, eight (8) groundwater, and eight (8) soil vapor
samples and per MPCA and MDH guidelines.
• Submitting all analytical samples to a MDH certified laboratory.
• Analyzing each soil sample for the following analytical parameters:
• Diesel range organics (DRO)
• Gasoline range organics (GRO)
• Benzene, Ethyl Benzene, Toluene, and Xylene (BETX)
• Lead
• Analyzing each groundwater sample for the following analytical parameters:
• DRO
• GRO
• Benzene, Ethyl Benzene, Toluene, and Xylene (BETX)
• Lead
• Analyzing each soil vapor sample for the following analytical parameters:
o Volatile Organic Compounds (VOCs)
Reporting
WSB will summarize the results of the Phase 11 ESA in a final report. At a minimum, the report
will include the following:
• Scope of work
• Sample location map
• Sample methods and procedures
• Investigation results
• Conclusions and recommendations
• Reporting and coordination with the MPCA Petrofund program
Meetings
WSB will attend one EDA meeting to present the Phase II ESA report.
Scope Assumptions
• All borings will be advanced on City owned property and /or roadway right of way.
• Based on available information, the depth to groundwater at the Site is approximately 20
feet bgs.
• Subsurface obstructions will not inhibit advancement of borings.
Ms. Angela Schumann
May 6, 2015
Page 3
Soil /groundwater samples will be submitted for laboratory analysis with a standard 10
day turnaround time.
The City will provide one review /comment of the final report.
Total Cost and Schedule
The cost to perform the described Limited Phase II ESA is based on an hourly not -to- exceed fee
of $12,500. WSB will contract with a drilling contractor to perform the borings and a lab
company to provide the material testing. These costs amount to $6,000 and are pass through
costs included in the total fee. If additional work is required beyond the scope outlined above,
WSB will receive authorization from the City prior to completing any additional work. Upon
authorization, the work can be performed as early as the week of May 18, 2015. If you wish to
authorize this work, please sign below and submit a copy to WSB.
Sincerely,
WSB & Associates, Inc.
&4-�
Ryan Spencer
Senior Environmental Scientist
I hereby authorize the above scope of work, schedule, and cost.
Signature
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EDA Agenda: 5/13/15
8. Consideration of action on default of Transformation Home Loan. (AS)
A. REFERENCE AND BACKGROUND
The EDA is asked to review information related to an EDA Transformation Home Loan
which is in default and to take action as to next steps related to the default.
In 2007, the EDA entered into a third mortgage agreement with borrower Felicia L.
Whitmore for a Transformation Home Loan related to property at 312 East River Street, in
the amount of $9,581.00.
The Transformation Home Loan program, developed by the HRA, was developed to allow
homeowners of properties within the core city the opportunity to make repairs and
renovations to their homes, intending to encourage retention of owner - occupied housing in
the core city and to increase the value and aesthetics of the properties. The target criteria
identified homes which would meet the redevelopment qualifications requirements for
"structurally substandard" as defined with TIF law.
The third mortgage and promissory note are dated September 27th, 2007. The
Transformation Home Loan program allows for forgiveness of the loan if the property is
not sold within 5 years of the closing date of the loan.
The Finance Department had been tracking the loan and noted in 2010 that 312 East River
Street had gone into foreclosure. At that time, the Finance Department and Economic
Development Department decision was to wait for the title company to contact the EDA as
part of the title research. Unfortunately, the City and EDA's records show no record of
contact by the title company. The title company has been contact to show verification that
the city was contacted regarding the mortgage in any sale transaction. To -date no
information has been provided.
The property then went to sheriff s sale on March 31, 2010. The sheriff s certificate shows
only the first (primary) mortgage. There was no document filed to satisfy the HRA
mortgage or release it.
The property was purchased in May of 2014 by a private party and is no longer bank -
owned.
The City's attorney has reviewed the EDA's options related to default for such loan
programs and provided a summary of possible actions. Unfortunately, as the property has
already gone through foreclosure and sheriffs sale, it would appear that the EDA's only
recourse at this time is to pursue legal action against the borrower. The attorney has
further indicated that successful action related to the title company and title insurance is
also unlikely. The third position on the mortgage represented a risk for recovery in this
situation.
Therefore, the EDA is asked at this time to determine whether to take further action against
the original property owner or to declare the amount unrecoverable and close out the loan.
B. ALTERNATIVE ACTIONS
1. Motion to declare the amount unrecoverable and close out the loan.
2. Motion to pursue legal action against the 312 East River Street Transformation
Home Loan mortgagee for recovery of outstanding loan amount and expenses.
C. STAFF RECOMMENDATION
Staff recommends Alternative 91. The costs to pursue action against the mortgagee are
likely to be commensurate with the outstanding loan amount. Additionally, the
mortgagee's ability to pay the outstanding amount with a successful judgement is
questionable. Moreover, the program was designed to improve housing stock within the
core downtown, which was achieved in this case.
D. SUPPORTING DATA
A. Loan Documents
B. Attorney Background
2
�esevation hand Fee and Registration
Ag L , MRT amount
Tax Keceipt 9 Q �_�
of S as been paid this
_ 2 - Oe�'
Date: Year
Robert J. J.I 1' rlTrcasFarer
BY:
clerk
Mortgage Registratnoa Tax: $
Doc. No. A 1070499
OFFICE OF THE COUNTY RECORDER
WRIGHT COUNTY, MINNESOTA
Certified Filed and/or Recorded on
10-29-2007 at 09:48
Check #: 5246 Fee: $ 46.00
Payment Code 02
Addl. Fee
Larry A. Unger, County Recorde°
The maximum principal i ndebtedness secured by this mortgage is $99581.00.
Returu to:
FIRST MINNESOTA BANK
P.O. BOX 960
]MONTICELLO MN 55362 T RD MORTGAGE
THIS MORTGAGE is given on Septembeia� 2007. Borrower is Felicia L. Whitmore
( "Borrower "). This Mortgage is given to the Housing and Redevelopment Authority in and for
the City of Monticello, a public body corporate and politic (the "Authority"). Borrower owes the
Authority the principal sum of $9,581.00. This debt is evidenced by a promissory note of even
date herewith (the "Note' . This Mortgage secures to Authority: (a) the repayment of the debt
evidenced by the Note, and all renewals, extensions and modifications of the Note; (b) the
payment of all other sums, advanced to protect the security of this Mortgage; (c) the performance
of Borrower's covenants and agreements under this Mortgage and the Note; and (d) is subject to
the terms and conditions of that certain Transformation Home Loan Application from Borrower
to Authority, approved as of September 12, 2007. For this purpose, Borrower does hereby
mortgage, grant and convey to the Authority, with power of sale, the property located in Wright
County, Minnesota and fully described in the attached Exhibit A, together with all the
improvements now or hereafter erected on the property, and all easements, appurtenances, and
fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Mortgage. All of the foregoing is referred to in this Mortgage as the "Property."
BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby
conveyed and has the right to mortgage, grant, and convey the Property and that the Property is
unencumbered, except for encumbrances of record and as set forth in paragraph 17. Borrower
warrants and will defend generally the title to the Property against all claims and demands,
subject to any encumbrances of record.
Borrower and the Authority agree as follows:
1. PAYMENT OF PRINCIPAL; LATE CHARGES. Borrower shall promptly pay
when due the principal on the debt evidenced by the Note and any late charges due under the
Note.
320881vt NIM MN190 -131
2. CHARGES; LIENS. Borrower shall pay all taxes, assessments, charges, fines,
and impositions attributable to the Property which may attain priority over this Mortgage, and
leasehold payments or ground rents, if any. Borrower shall pay these obligations on time
directly to the person owed payment.
Borrower shall promptly discharge any lien which has priority over this Mortgage unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner
reasonably acceptable to the Authority; (b) contests in good faith the lien by, or defends against
enforcement of the lien in, legal proceedings which in the Authority's opinion operate to prevent
the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to
the Authority subordinating the lien to this Mortgage. If the Authority determines that any part
of the Property is subject to a lien which may attain priority over this Mortgage, the Authority
may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or
more of the actions set forth above within thirty (30) days of the giving of notice.
3. HAZARD OR PROPERTY INSURANCE. Borrower shall keep the
improvements now existing or hereafter erected on the Property insured against loss by fire and
any other hazards for which the Authority requires insurance. This insurance shall be maintained
in the amounts and for the periods that the Authority reasonably requires. The insurance carrier
providing the insurance shall be chosen by Borrower subject to the Authority's approval, which
shall not be unreasonably withheld or delayed. If Borrower fails to maintain coverage described
above, the Authority may, at the Authority's option, obtain coverage to protect the Authority's
rights in the Property in accordance with paragraph 5.
All insurance policies and renewals shall be reasonably acceptable to the Authority and
shall include a standard mortgage clause. If the Authority requires, Borrower shall promptly
give to the Authority all receipts of paid premiums and renewal notices. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and the Authority. The Authority may
make proof of loss if not made promptly by Borrower.
If under paragraph 15 the Property is acquired by the Authority, Borrower's right to any
insurance policies and proceeds resulting from damage to the Property prior to the acquisition
shall pass to the Authority to the extent of the sums secured by this Mortgage immediately prior
to the acquisition.
4. PROTECTION OF THE PROPERTY. Borrower shall not destroy or damage the
Property or commit waste on the Property. Borrower shall be in default if any forfeiture action
or proceeding, whether civil or criminal, is begun that in the Authority's good faith judgment
could result in forfeiture of the Property or otherwise materially impair the lien created by this
Mortgage or the Authority's security interest. Borrower may cure such a default and reinstate, as
provided in paragraph 13, by causing the action or proceeding to be dismissed with a ruling that,
in the Authority's good faith determination, precludes forfeiture of Borrower's interest in the
Property or other material impairment of the lien created by this Mortgage or the Authority's
security interest. Borrower shall also be in default if Borrower gave materially false or
inaccurate information or statements to the Authority in connection with the loan evidenced by
the Note.
320881v1 MNI MN 190 -131 2
5. PROTECTION OF AUTHORITY'S RIGHTS IN THE PROPERTY. If Borrower
fails to perform the covenants and agreements contained in this Mortgage, or there is a legal
proceeding that may significantly affect the Authority's rights in the Property (such as a
proceeding in bankruptcy, condemnation or forfeiture), the Authority may do and pay for
whatever is necessary to protect the value of the Property and the Authority's rights in the
Property. The Authority's actions may include paying any sums secured by a lien which has
priority over this Mortgage, appearing in court, paying reasonable attorneys fees and entering on
the Property to make repairs. Although the Authority may take action under this paragraph 5, the
Authority is not required to do so.
Any amounts disbursed by the Authority under this paragraph 5 shall become additional
debt of Borrower secured by this Mortgage. Unless Borrower and the Authority agree to other
terms of payment, these amounts shall bear interest from the date of disbursement at a rate equal
to the interest rate on the Note and shall be payable, with interest, upon notice from the Authority
to Borrower requesting payment.
6. INSPECTION. The Authority or its agent may make reasonable entries upon and
inspections of the Property.
7. CONDEMNATION. The proceeds of any award or claim for damages, direct or
consequential, in connection with any condemnation or other taking of any part of the Property,
or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the
Authority.
In the event of a total taking of the Property, the proceeds shall be applied to the sums
secured by this Mortgage, whether or not then due, with any excess paid to Borrower. In the
event of a partial taking of the Property in which the fair market value of the Property
immediately before the taking is equal to or greater than the amount of the sums secured by this
Mortgage immediately before the taking, unless Borrower and the Authority otherwise agree in
writing, if any, the sums secured by this Mortgage shall be reduced by the amount of the
proceeds multiplied by the following fraction: (a) the total amount of the sums secured
immediately before the taking, divided by (b) the fair market value of the Property immediately
before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the
Property in which the fair market value of the Property immediately before the taking is less than
the amount of the sums secured immediately before the taking, unless Borrower and the
Authority otherwise agree in writing or unless applicable law otherwise provides, the proceeds
shall be applied to the sums secured by this Mortgage whether or not the sums are then due.
The Authority acknowledges this Mortgage is subordinate to the liens specifically
referred to in Section 17 hereof.
8. FORBEARANCE BY AUTHORITY NOT A WAIVER. Any forbearance by the
Authority in exercising any right or remedy shall not be a waiver of or preclude the exercise of
any right or remedy.
320881v1 MNI NIN190 -131 3
9. SUCCESSORS AND ASSIGNS BOUND. The covenants and agreements of this
Mortgage shall bind and benefit the successors and assigns of the Authority and Borrower.
10. LOAN CHARGES. If the loan secured by this Mortgage is or becomes subject to
a law which sets maximum loan charges, and that law is finally interpreted so that the interest or
other loan charges collected or to be collected in connection with the loan exceed the permitted
limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded
permitted limits will be refunded to Borrower. The Authority may choose to make this refund by
reducing the principal owed under the Note or by making a direct payment to Borrower. If a
refund reduces principal, the reduction will be treated as a partial prepayment under the Note.
11. NOTICES. Any notice to Borrower provided for in this Mortgage shall be given
by delivering it personally or by mailing it by first class United States mail, postage prepaid,
return receipt requested. The notice shall be directed to Borrower at 9988 Westin Drive,
Monticello, Minnesota 55362, or any other address Borrower designates by notice to the
Authority. Any notice to the Authority shall be given or mailed City Hall, 505 Walnut Street,
Suite 1, Monticello, Minnesota 55362, Attention: Executive Director, or any other address the
Authority designates by notice to Borrower. Any notice provided for in this Mortgage shall be
deemed to have been given to Borrower or the Authority when given as provided in this
paragraph.
12. GOVERNING LAW, SEVERABILITY. This Mortgage shall be governed by the
law of the state of Minnesota. In the event that any provision or clause of this Mortgage or the
Note conflicts with applicable law, such conflict shall not affect other provisions of this
Mortgage or the Note which can be given effect without the conflicting provision. To this end,
the provisions of this Mortgage and the Note are declared to be severable.
13. BORROWER'S RIGHT TO REINSTATE. If Borrower meets certain conditions,
Borrower shall have the right to have enforcement of this Mortgage discontinued at any time
prior to the earlier of, (a) five (5 )days before sale of the Property pursuant to any power of sale
contained in this Mortgage; or (b) entry of a judgment enforcing this Mortgage. Those
conditions are that Borrower: (a) pays the Authority all sums which then would be due under this
Mortgage and the Note as if no acceleration had occurred; (b) cures any default of any other
covenants or agreements; (c) pays all expenses incurred in enforcing this Mortgage, including,
but not limited to, reasonable attorneys fees; and (d) takes such action as the Authority may
reasonably require to assure that the lien of this Mortgage, the Authority's rights in the Property
and Borrower's obligation to pay the sums secured by this Mortgage shall continue unchanged.
Upon reinstatement by Borrower, this Mortgage and the obligations secured hereby shall remain
fully effective as if no acceleration had occurred.
14. HAZARDOUS SUBSTANCES. Borrower shall not cause or permit the presence,
use, disposal, storage, or release of any hazardous substances on or in the Property, except those
solvents, oils, cleaning materials, and other substances as are used in the ordinary course of
Borrower's business. Borrower shall not do, and will use its best efforts not to allow anyone else
to do, anything affecting the Property that is in violation of any environmental law.
320881v1 MNI MN190 -131 4
Borrower shall promptly give the Authority written notice of any investigation, claim,
demand, lawsuit or other action by any governmental or regulatory agency or private party
involving the Property and any hazardous substance or environmental law of which Borrower
has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory
EDA, that any removal or other remediation of any hazardous substance affecting the Property is
necessary, Borrower shall promptly take all necessary remedial actions in accordance with that
environmental law.
As used in this paragraph 14, "hazardous substances" are those substances defined as
toxic or hazardous substances by environmental law and the following substances: gasoline,
kerosene, other flammable or toxic petroleum products, volatile solvents, materials containing
asbestos or formaldehyde, and radioactive materials. As used in this paragraph i.4,
"environmental law" means federal or state laws that relate to environmental protection.
15. ACCELERATION; REMEDIES. The Authority shall give notice to Borrower
prior to acceleration following Borrower's breach of any covenant or agreement in this Mortgage
( "Event of Default "). The notice shall specify: (a) the default; (b) the action required to cure the
default; (c) a date, not less than thirty (30) days from the date the notice is given to Borrower by
which the default must be cured, provided, however, if Borrower is diligently pursuing a cure,
Borrower shall have such additional time as is reasonably necessary to complete the cure; and
(d) that failure to cure the default on or before the date specified in the notice may result in
acceleration of the sums secured by this Mortgage and sale of the Property. The notice shall
further inform Borrower of the right to reinstate after acceleration and sale. If the default is not
cured on or before the date specified in the notice, the Authority at its option may require
immediate payment in full of any sums secured by this Mortgage without further demand and
may invoke the power of sale and any other remedies permitted by law. The Authority shall be
entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 15,
including, but not limited to, reasonable attorneys fees.
If the Authority invokes the power of sale, the Authority shall cause a copy of a notice of
sale to be served upon any person in possession of the Property. The Authority shall publish a
notice of sale, and the Property shall be sold at public auction in the manner prescribed by law.
The Authority or its designee may purchase the Property at any sale. The proceeds of the sale
shall be applied in the following order: (a) to all expenses of the sale, including, but not limited
to, reasonable attorneys fees; (b) to all sums secured by this Mortgage; and (c) any excess to the
person or persons legally entitled to it.
16. RELEASE OF MORTGAGE. Upon payment or forgiveness of all sums secured
by this Mortgage, the Authority shall discharge this Mortgage without charge to Borrower.
Authority shall pay any recordation costs.
17. PRIOR LIENS. The Authority acknowledges this Mortgage is subordinate to the
following previously recorded lien on the Property:
(a) Mortgage in the amount of $116,892 for the benefit of J.P. Morgan/Chase,
recorded in Wright County on , Document No.
320881v1 MNI MN190 -131 5
(b) Mortgage in the amount of $29,500 for the benefit of First Minnesota Bank,
recorded in Wright County on October 4L200 Document IrTo. 1068146
(The remainder of this page is intentionally left blank.)
320881v1 MNI MN190 -131 6
Uts
Felici . Whitmore
STATE OF MINNESOTA )
SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this 7 day of September,
2007 by Felicia L. Whitmore.
KATHRYN M. ROMER �
NOTARY PUBLIC - MINNESOTA Notary Public
my Commission Expires Jan 31, 2010
This document drafted by:
KENNEDY & GRAVEN, CHARTERED (MNI)
200 South Sixth Street
470 U.S. Bank Plaza
Minneapolis, MN 55402
(612) 337 -9300
320881v1 MNT MN190 -131 S -1
EXHIBIT A
TO MORTGAGE
LEGAL DESCRIPTION
That property located within the City of Monticello, Wright County, Minnesota and legally
described as follows:
PID # 155- 015- 005130
Lot 013, Block 05, Lower Monticello
290363vi MNI NfN 190-116 A -1
PROMISSORY NOTE
$9,581.00
September') 4 'IC, 2007
Felicia L. Whitmore ("Maker"), for value received, hereby promises to pay to the
Housing and Redevelopment Authority in and for the City of Monticello, a public body
corporate and politic under the laws of Minnesota, or its assigns (collectively referred to herein
as "Holder "), at its designated principal office or such other place as the Holder may designate in
writing, the principal sum of Nine Thousand Five Hundred Eighty -one and no /100 ths Dollars
($9,581.00) or so much thereof as may be advanced under this Note, without interest thereon, in
any coin or currency that at the time or times of payment is legal tender for the payment of
private debts in the United States of America. The principal of this Note is payable as follows:
1. The entire unpaid balance of principal shall be due and payable upon the earlier of
the following: (i) thirty (30) days after written notification by Holder to Maker of the occurrence
of an Event of Default as defined in the Mortgage given by the Maker to the Holder of even date
herewith (the "Mortgage ") and demand of payment according to Section 15 of the Mortgage; or
(ii) ten (10) days after the Maker makes or allows to be made any total or partial transfer, sale,
assignment, conveyance, lease, or transfer in any other mode, of the Property (as defined
hereafter), if such transfer occurs within five (5) years after the date of this Note. If the Maker
does not sell the Property within five (5) years of the Loan Closing Date, no payments shall be
payable on this Note and the principal balance shall be forgiven.
2. This Note is given pursuant to the completed Transformation Hoene Loan
application delivered by the Maker to the Holder and approved by the Holder on September
12, 2007 (the "Application "). If any information in the Application is found to be invalid for
whatever reason, such invalidity shall constitute an Event of Default hereunder.
3. This Note is secured by the Mortgage regarding the property described in the
Mortgage (the "Property"). All of the agreements, conditions, covenants, provisions, and
stipulations contained in the Application and the Mortgage are hereby made a part of this Note to
the same extent and with the same force and effect as if they were fully set forth herein. It is
agreed that time is of the essence of this Note. If an Event of Default occurs under the
Application, the Mortgage, or any other instrument securing this Note, then the Holder of this
Note may at its right and option, without notice, declare immediately due and payable the
principal balance of this Note and interest accrued thereon, together with reasonable attorneys
fees and expenses incurred by the Holder of this Note in collecting or enforcing payment hereof,
whether by lawsuit or otherwise, and all other sums due hereunder or any instrument securing
this Note. The Maker of this Note agrees that the Holder of this Note may, without notice to and
without affecting the liability of the Maker, accept additional or substitute security for this Note,
or release any security or any party liable for this Note or extend or renew this Note.
4. The remedies of the Holder of this Note as provided herein, and in the
Application, the Mortgage, or any other instrument securing this Note shall be cumulative and
320882v1 NMMN190 -131
concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the
Holder of this Note, may be exercised as often as occasion therefor shall occur; and the failure to
exercise any such right or remedy shall in no event be construed as a waiver or release thereof.
The Holder of this Note shall not be deemed, by any act of omission or conunission, to
have waived any of its rights or remedies hereunder unless such waiver is in writing and signed
by the Holder and then only to the extent specifically set forth in the writing. A waiver with
reference to one event shall not be construed as continuing or as a bar to or waiver of any right or
remedy as to a subsequent event. This Note may not be amended, modified, or changed except
only by an instrument in writing signed by the party against whom enforcement of any such
amendment, modifications, or change is sought.
5. If any term of this Note, or the application thereof to any person or circumstances
shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of
such term to persons or circumstances other than those to which it is invalid or unenforceable
shall not be affected thereby, and each term of this Note shall be valid and enforceable to the
fullest extent permitted by law.
6. If any Event of Default occurs, and if Holder engages legal counsel or others in
connection with advice to Holder or Holder's rights and remedies under the Loan Agreement or
this Note, Maker shall pay all reasonable expenses incurred by Holder for such persons,
irrespective of whether any suite or other proceeding has been or is filed or commenced. Any
such expenses, costs and charges shall constitute additional principal, payable upon demand, and
subject to this Note and the Mortgage.
7. It is intended that this Note is made with reference to and shall be construed as {I
Minnesota contract and is governed by the laws thereof. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
8. The performance or observance of any promise or condition set forth in this Note
may be waived, amended, or modified only by a writing signed by the Maker and the Holder.
No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall
any single or partial exercise of any other power, right, or remedy.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things
required to exist, happen, and be performed precedent to or in the issuance of this Note do exist,
have happened, and have been performed in regular and due form as required by law.
3208820 MNI MN190 -131 2
IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the
day of September, 2007
Felicia L Whitmore
[SIGNATURE PAGE FOR PROMISSORY NOTE]
320882v1 MNI MN190 -131 S -1
CITY'S RIGHTS AND REMEDIES WHEN FIRST MORTGAGE
HOLDER FORECLOSES ON PROPERT THAT CITY HOLDS A
MORTGAGE ON UNDER A CITY TRANSFORMATION LOAN
As you and I discussed, I have set forth below the City's rights and remedies
when a person signing the City's, "Transformation Loan Documents ", (" City
Loan Documents "), the (`Borrower ") defaults under the terms of a mortgage that is
prior to the City's "Transformation Mortgage" on the real property ( "Property ")
securing the City's Transformation Loan, the ( "First Mortgage ") and the holder of
the First Mortgage ( "First Mortgagor ") forecloses on the Property.
1. City's Rights Prior to Sheriff Sale of Foreclosure by First Mortgagor.
The City can bid in and purchase the Property at the time of the Sheriff's Sale of
the Property. This would require that the City know when the Sheriff's Sale is to
take place and bring certified funds in the amount that the First Mortgagor claims
is due under the First Mortgage. The City can find out when the Sheriff's Sale is
going to be, by filing with the County a "Request for Notice of Foreclosure" that
would require the First Mortgagor to provide notice to the City, of the date of the
Sheriffs sale. This is probably not an approach that the City would take since the
amount that the City would be required to pay for the Property would be
substantial and the Property might not even be worth what the First Mortgagor is
owed. If the City did take this approach, they would have to wait for a period of
six (6) months (the "Redemption Period "), before they could get clear title to the
Property and be able to sell it, unless the Borrower vacated the Property, in which
case the City could apply to the Court's to shorten the Redemption Period to five
(5) weeks.
2. City's Rights After Sheriff's Sale. The City can file a "Notice of
Intent to Redeem" and if the City believes that it can sell the Property for more
than the amount owed the First Mortgagor, plus the cost of holding the Property,
paying a real estate broker to sell the Property and recover what the City is owed
under the Transformation Loan, they could redeem the Property by paying the
Sheriff the amount owed the First Mortgagor and get a Sheriff's Certificate of
Redemption and then sell the Property.
Again, this is not a very likely approach since the Property most likely is not
going to be worth the amount it would cost to redeem plus the cost of holding the
Property and selling the same.
179674v1
If the City does not exercise either of the foregoing, then the City will lose
all of its rights in the Property in that the First Mortgagor would have title to the
Property and the City could only take action against the Borrower to collect the
amount owing the City under the Transformation Loan.
If the City is going to try to collect from the Borrower under the
Transformation Loan it would involve suing the Borrower in District Court to
obtain a judgment against the Borrower and trying to collect from the Borrower.
Before starting a collection action against a Borrower under the
Transformation Loan, the City should try to determine if the Borrower is
collectible i.e. is working and may be able to pay the City over a period of time or
have other property that the City could get title to. Collection actions can be
expensive when you take into account the Court filing fees, service of process fees
and attorneys' fees and if the Borrower is not collectible, it is just throwing good
money after bad.
After your review let me know if you have any questions.
179674v1
EDA Agenda — 05/13/15
9. Consideration to adopt the 2015 EDA Work Plan. (JO /AS)
A. REFERENCE AND BACKGROUND
Attached for consideration is the draft 2015 EDA Work Plan. The plan is based on
feedback received during the February, March and April EDA workshops regarding the
development of the plan.
Staff has attempted to incorporate revisions reflective of the Authority's direction at the
workshops.
Although staff has prepared the work plan as a single year document, it is understood that
many of the goals will require more than one year to realize and some are on- going.
The categories for the work plan are reflective of the Comprehensive Plan's primary goals
for economic development, which are:
• Attracting & Retaining Jobs
• Expanding Tan Base
• Enhancing Downtown
• Facilitating Redevelopment
B. ALTERNATIVE ACTIONS
1. Motion to adopt the 2015 EDA Work Plan.
2. Motion of other.
C. STAFF RECOMMENDATION
Staff recommends the adoption of the 2015 Work Plan, subject to those revisions
recommended by the EDA Board of Commissioners. If adopted by the EDA, the work
plan will be shared with the City Council, per the EDA's Enabling Resolution.
D. SUPPORTING DATA
Draft 2015 EDA Work Plan, including Appendix
EDA Enabling Resolution
EDA 2015 WORK PLAN
EDA Purpose:
The EDA is charged with coordinating and administering the City of Monticello's economic
development and redevelopment plans and programs. The EDA is also responsible for housing
and housing redevelopment.
EDA Work Plan Mission Statement:
The EDA's 2015 work plan is adopted in support of achieving the goals of the Monticello
Comprehensive Plan. The EDA will be proactive by developing and undertaking actions for
achievement of the Comprehensive Plan's Economic Development goals and will be reactive in
responding to economic development opportunities as they arise in the most timely and effective
manner possible. The EDA shall utilize the economic development strategies of the
Comprehensive Plan as a guide for action.
Comprehensive Plan Goals:
Attracting & Retaining Jobs
Expanding Tax Base
Enhancing Downtown
Facilitating Redevelopment
Housing Choice for Life -Cycle
2015 Action Statements:
1. Research for implementation the adoption of a 2016 EDA (and /or HRA) levy.
2. Research for implementation the use of tax abatement by the City of Monticello,
including specific use criteria.
3. Clearly understand allowable uses of available pooled housing increment as a financial
resource.
4. Continue to support redevelopment efforts for publicly -owned properties on Block 34.
5. Engage as a partner in other redevelopment opportunities as they arise, actively
encouraging redevelopment within the TH25 /CSAH 75 area.
6. Market industrial development at the Monticello Business Center (Otter Creek Business
Park), targeting businesses which will be a supplier, customer or collaborative partner to
existing businesses within the community.
7. Encourage more proactive lead development and response in all market segments to
support a diversified tax base.
8. Develop and re- establish a dedicated economic development staff position to facilitate
and support the accomplishment of Comprehensive Plan goals.
9. Market EDA incentive programs in a more proactive manner, both within the community
and beyond, beginning with the education on these resources at the EDA level.
10. Actively market for sale for development the EDA -owned properties at Cedar Street, 349
West Broadway and 413 W. 4t' Street.
11. Examine housing stock for aging or blighted properties and research development of
programs for redevelopment and /or revitalization.
12. Support the development of the Destination for Innovation brand and implement in
economic development activities.
Appendix: Monticello Comprehensive Plan, Chapter 5 - Economic Development
rrJJlJJ1JJr
Ideally, the Comprehensive Plan does not have an Economic Development
chapter. The Land Use Plan would be sufficient to channel market forces
to meet the development objectives of the community. In reality, certain
development needs cannot be met without public intervention. The
Economic Development chapter of the Plan focuses on the aspects of
Monticello's future that require particular attention and action by the City.
These actions include:
► Attracting and retaining jobs
► Expanding the tax base
► Enhancing the economic vitality of Downtown
► Facilitating redevelopment
Attracting and Retaining Jobs
The creation and retention of jobs is one of the most important objectives
for Monticello. Jobs, particularly jobs with income levels capable of
supporting a family, are key to achieving many elements of Monticello's
vision for the future.
► Jobs attract residents to the community. Jobs will pay a critical role in
creating the type of "move up" housing sought by the City.
► Jobs provide the income needed to support local business and
government services.
► Retention of businesses promote community stability by keeping jobs
and residents in Monticello.
The Community Context chapter of the Comprehensive Plan contains a
section on Employment. This section contains data about employment in
Monticello and of its residents. Among the key findings in this section are:
► While the community added nearly 5,000 people between 2000 and
2010 according to the U.S. Census, it only added 1,430 jobs according
to the Quarterly Census of Employment and Wages (QCEW). In 2010,
the community had 6,992 jobs according to the QCEW but 7,093
people in the labor force according to the Census.
2008 Comprehensive Plan - Updated 2013 Economic Development 1 4 -1
► The U.S. Census Bureau, Center for Economic
Studies' OntheMap website shows that in 2010
4,597 people leave the community each day to
work, while 3,849 people come into the community
to work. Only 835 both live and work in the
community.
► Approximately 15% of residents in 2010 are
employed within the community. This has dropped
from 18% in 2002.
► As shown in Figure 4.1, 2012 data from the
Minnesota Department of Employment and
Economic Development (DEED) on their
mnprospector.com website shows that Monticello
is made up of a wide range of small to medium
sized employers. Only 10 employers have more
than 100 employees. Over half have fewer than
four (4) employees.
► Workers for Monticello businesses come primarily
from Monticello and the surrounding region.
Nearly 75% of people working in Monticello live in
Monticello, adjacent townships, or other places in
Wright and Sherburne counties (2010 OntheMap).
► Nearly 40% of Monticello residents work in
Hennepin County, with the largest percentage in
Minneapolis, Plymouth, and Maple Grove. Another
15% work elsewhere in Wright County, including
Buffalo and St. Michael.
► The 2007 -2011 American Community Survey
(ACS) Census reported a mean travel time to work
of 28.5 minutes. This is up from the 2000 Census
travel time of 24 minutes. The mean travel time in
the 2007 -2011 ACS was 29.7 minutes for Wright
County and 24.5 minutes for the region overall.
Figure 4-1:2012 Total Establishments by Size
N O R, , K's-VA-4-P,
1 -4 Employees
254
52.05
5 -9 Employees
97
19.88
10 -19 Employees
64
13.11
20 -49 Employees
42
8.61
50 -99 Employees
21
4.30
100 -249 Employees
7
1.43
250 -499 Employees
2
0.41
500 -999 Employees
1
0.20
Background Reports
The City of Monticello conducts studies and assessments
as needed to help guide its economic development
efforts. The findings and recommendations of these
studies are summarized below with the most recent
provided first.
2010 Business Retention and Expansion Research (BR &E)
Report
Monticello's Business Retention and Expansion (BR &E)
program was initiated by the City of Monticello, the
Monticello Chamber of Commerce and Industry,
DEED, and the University of Minnesota Extension. It
was also sponsored by over a dozen local businesses.
Through the BR &E program, 60 businesses were
visited. Findings from the visits and data analysis found:
► 78% of the visited businesses were locally owned
and operated.
► 20% of businesses were in manufacturing, 18% in
retail trade, and 13% in other services.
► The businesses employed over 1,600 full -time and
975 part -time employees, with a trimmed average
(an average where the low and high were discarded
to prevent skewing) of 15.38 full -time employees,
slightly down from 15.52 three years ago. The
firms also had a trimmed average of 7.76 part -time
employees, up from 6.96 three years ago.
► Most full -time employees are in manufacturing,
food and beverage, retail trade, and medical, while
part -time employees are in medical, retail trade,
and tourism /recreational services.
► Survey results indicated that the medical industry
is the highest employer in Monticello, followed by
retail trade and manufacturing.
► Businesses in the community are fairly stable with
about half expecting some type of change.
The BR &E identified four strategies aimed at helping
businesses become more profitable. Each strategy
was accompanied by a list of potential projects
intended to be ideas for the community to explore.
The implementation of the projects is intended to be
a collaborative effort among the various sectors of the
community. The four strategies identified included:
4 -2 1 Economic Development City of Monticello
► Improve Business Retention and Expansion
Through Technical and Development Assistance.
► Improve Labor Force Availability and Productivity.
► Improve Infrastructure to Help Move Goods,
Customers, and the Labor Force More Efficiently.
► Improve and Promote the Quality of Life in
Monticello.
During the 2013 comprehensive plan economic
development update process, it was noted that the 2010
Business Retention and Expansion Research strategies
were similar to the 2008 Development Strategies. The
review process identified the need to continue similar
strategies into the future.
Preceding the development of the 2008 Comprehensive
Plan an assessment was conducted by St. Cloud State
University to determine whether a bioscience park
should be established in Monticello. At that time the
bioscience industry was an economic development
focus statewide. While the attraction of a bioscience
business is not a particular focus of Monticello today,
there are findings of that study that can be useful to
consider in the overall development of economic
development strategies for the community.
Some of the Monticello's strengths for attracting
businesses included:
► Land availability (compared to Metro Area).
► Access to major highways (I -94, U.S. 10 and STH
25).
► Regional growth of employment base.
► Development of local fiber optic system.
► Proximity to universities.
► Overall location.
► Expansive park system.
► Monticello Community Center.
Recommended business development activities that
apply to the attraction and retention of all businesses
include ensuring that there are sites suitable and
attractive to potential businesses available and ready
for development. The community should continue to
explore and establish partnerships with a variety of
stakeholders that can work together to support business
attraction and retention. This includes the identification
of funding sources which may be an incentive for
businesses locating in Monticello. When available the
City should participate in special tax zones that have
been made available at the state and federal level to
support business development and retention.
Expanding the Tax Base
A traditional objective of local economic development
planning is the expansion of the property tax base.
Under the current system of local government finance,
property taxes are the largest source of city revenue.
For this reason, it is an important aspect of economic
development planning in Monticello.
Understanding the Property Tax System
Effective strategies to promote the growth of the tax
base require a clear understanding of the property tax
system.
Property Valuation
There are three forms of property valuation. The
foundation of the property tax system is Estimated
Market Value. This amount is the value of a parcel
of property as set by the County Assessor. In some
circumstances, the State Legislature limits the amount
of Estimated Market Value that can be used for taxation.
These adjustments result in the Taxable Market Value.
The value used to calculate property taxes is Tax
Capacity. Tax Capacity Value is a percentage of Taxable
Market Value. The percentage factors are set by the
State Legislature and vary by class of property.
Changes in the Tax System
Traditional economic development theory seeks
commercial and industrial development as a means of
building tax base. Historically, the system supported
this approach. A dollar of estimated market value of
commercial - industrial property carried a higher tax
capacity value than residential property. Over the past
twelve years, tax "reforms" by the State Legislature have
changed this situation.
2008 Comprehensive Plan - Updated 2013 Economic Development 1 4 -3
Figure 4 -2: Changes in Tax Capacity Value - Commercial /Industrial
450,00
Office
400,000
Apt
350,000
Industrial
300,000
Office
> 250,000
T
Townhome
Q
v 200,000
Acres
150,000
10
100,000
10
50,000
10
Coverage
30%
0
1997 1998 1999 2000 2001 2002 to 2012
300,000
250,000
200,000
v
150,000
a
v
X
H
100,000
50,000
0
Figure 4 -3: Tax Capacity Comparison
Industrial Retail
Office
Single Townhome
Apt
Industrial
Retail
Office
Single
Townhome
AS
Acres
10
10
10
10
10
10
Coverage
30%
30%
30%
3
6
12
Development (SF or Units)
130,680
130,680
130,680
30
60
120
EMVperSForUnit
65
80
100
400,000
250,000
150,000
EMV
8,494,200
10,454,400
13,068,000
12,000,000
15,000,000
18,000,000
Tax Capacity
169,134
208,338
260,610
120,000
150,000
225,000
4 -4 1 Economic Development City of Monticello
The chart in Figure 4 -2 shows how legislative changes
have reduced the tax base created by commercial -
industrial development. This chart is based on the
tax capacity value for $3,000,000 of Taxable Market
Value. The legislative changes in the rates used to set
tax capacity mean that this property produced 56% less
tax base in 2012 than in 1997.
This trend takes on additional meaning when compared
to other classifications of property. Figure 4 -3
compares the tax capacity value for the primary forms
of development in Monticello. The valuations in this
chart are based on assumptions about the density
of development and estimated market value of new
development. Changes in these assumptions will alter
the results.
This chart clearly illustrates the current reality for
economic development strategies. All forms of
development contribute tax base to the community.
It is risky placing too much weight on one type of
development for tax base growth. In addition, cities
do not control the critical elements of the tax system.
Changes in the system lead to unanticipated results at
the local level.
Tax base growth has implications that are unique
to Monticello. The chart in Figure 4 -4 shows the
distribution of taxes payable in 2011. Utilities, likely
largely Xcel Energy, contributes about one -third of
the City's taxes, while both commercial /industrial and
residential uses contribute 28% each.
Enhancing Downtown
Maintaining a successful Downtown is an important
element of the economic development plan for
Monticello. Downtown is a key business district
providing goods, services, and jobs for the community.
Downtown is unlike any other business district because
of its unique role in Monticello's identity and heritage.
The Land Use chapter describes plans, policies, and
strategies related to Downtown Monticello. Downtown
is part of the Economic Development chapter because
of the likelihood that city actions and investments
Figure 4 -4: Distribution of 2011 Taxes Payable
will be needed to achieve community objectives for
Downtown. This intervention may include:
Public improvements to provide services or to
enhance the Downtown environment.
Provision of adequate parking supply.
Acquisition of land.
Preparation of sites for development.
Removal of other physical and economic barriers
to achieve community objectives.
These actions may require the use of tax increment
financing, tax abatement, or other finance tools
available to the City.
In 2011, the City of Monticello conducted a retail market
study for Downtown Monticello. The report, Embracing
Downtown Monticello, has been incorporated in the
Comprehensive Plan as an appendix and serves as a
resource for the implementation of the Comprehensive
Plan. The study included many components including
an identification and analysis of existing businesses,
evaluation of shopping areas that are competition for
Downtown, a survey of customers, delineation of the
trade area, and the establishment of market demand
for various businesses.
2008 Comprehensive Plan - Updated 2013 Economic Development 1 4 -5
Some findings of the study included:
► Downtown Monticello enjoys a strategic location
between the Mississippi River and I -94. This
focuses traffic on TH -25 resulting in traffic counts
higher in Downtown than south of I -94
► Due to physical barriers created by the Mississippi
River and I -94, about one -third of Downtown and
secondary trade area shoppers must pass through
Downtown Monticello to reach the shopping areas
south of I -94.
► Downtown has the largest concentration of
shopping goods stores and restaurants.
► Downtown's trade area population was estimated at
93,500 in 2010 and is projected to have an annual
growth rate of 2.2 %.
► Monticello's large anchor stores (Cub Foods,
SuperTarget, Walmart, and Home Depot) create
a secondary trade area. The population of the
combined Downtown and secondary trade areas
was 127,190 in 2010.
► CentraCare Health System, with 25 beds and 600
employees has established Monticello as a regional
medical center.
► Increased residential development stimulates
increased commercial development. The recent
economic conditions have slowed residential
development, thus resulting in reduced tenant
demand for retail space.
► Additional retail space in Downtown Monticello
can be supported by the trade area population. A
range of store types can be considered including
shopping goods, convenience goods, and food
establishments. Downtown's existing wide variety
of services limits potential future opportunities.
However, market research indicates that Monticello
could support additional medical practices.
4 -6 1 Economic Development City of Monticello
Figure 4 -5: Embracing Downtown Monticello Primary and Secondary Trade Areas
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4 -6 1 Economic Development City of Monticello
Facilitating Redevelopment
The Comprehensive Plan seeks to create a place where
land use plans, policies, and controls work together
with private investment to properly maintain all
properties in Monticello. It is recognized that this
approach may not succeed in all locations. Despite
the best plans and intentions, properties may become
physically deteriorated and /or economically inviable. In
such places, city intervention maybe need to facilitate
redevelopment and prevent the spread of blight. This
intervention may include:
► Acquisition of land.
► Preparation of sites for development.
► Construction or reconstruction of public
improvements.
► Provision of adequate parking supply.
► Remediation of polluted land as needed.
► Removal of other physical and economic barriers
to achieve community objectives.
These actions may require the use of tax increment
financing, tax abatement, or other finance tools
available to the City.
Development Strategies
The following strategies will be used to implement
the Comprehensive Plan in the area of Economic
Development:
1. The City must use the Comprehensive Plan
to provide adequate locations for future job -
producing development (Places to Work).
2. The City should adhere to the Comprehensive Plan
to encourage stable business setting and promote
investment and expansion of facilities.
3. The City should coordinate utility planning
and manage other development to ensure that
expansion areas are capable of supporting new
development in a timely manner.
4. The City will continue to work with existing
businesses to maintain an excellent business
environment, retain jobs, and facilitate expansions.
5. In addition to assisting business seeking to locate
in Monticello, the City should actively target and
market to businesses which will be a supplier,
customer or collaborative partner to existing
businesses within the community.
6. The City should target and market to businesses
which would benefit from Monticello's utility and
communications infrastructure.
7. The City will work with the CentraCare Health
System to ensure the retention and to promote the
expansion of health care services in Monticello.
8. The City will use the Comprehensive Plan to
maintain and enhance the quality of life in
Monticello as a tool for attracting businesses and
jobs.
2008 Comprehensive Plan - Updated 2013 Economic Development 1 4 -7
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2013-010
AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
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.
1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as
Title II, 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.
1.03. By resolutions approved on October 22, 2007 and January 14, 2008, 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 and adopted an Amended
and Restated Enabling Resolution (the "Enabling Resolution "), which superceded the Enabling
Ordinance in all respects.
1.04. The City Council further amended the Enabling Resolution after a duly noticed
public hearing on February 27, 2012.
1.05. The City Council has now determined to revise and clarify certain provisions of
the Enabling Resolution by the adoption of this resolution.
1.06. 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 proposed
modifications to the Enabling Resolution.
1.07. This resolution constitutes an amendment and restatement of the Enabling
Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects.
Section 2. Enabling Authority.
2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as
adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated
by this resolution.
2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and
confirmed by the City Council.
2.03. Two of the commissioners 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) commissioners 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, when any commissioner ends EDA
membership prior to expiration of his or her term of office, on the day following the expiration of a
commissioner's term of office, or when a commissioner is removed by the City Council subject to
the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new
term or the balance of the unexpired term, as applicable, in the manner in which the original
appointment was made.
2.05. All of the commissioners who are not members of the City Council must be either
residents of the City, business - owners in the City, or property- owners in the City.
2.06. All commissioners 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 FDA 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.
3.01. The EDA shall elect a president, vice president, treasurer, assistant 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 other offices of the secretary
and assistant treasurer need not be held by a commissioner.
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 determinations showing the
vote of each commissioner 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 City Administrator, or any other person designated in writing by the City
Administrator and approved by a majority of the EDA commissioners, 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 FDA'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.
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, furnish 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.
(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 defined 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
Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA
Act.
ADOPTED BY the City Council of the City of Monticello on this 25th day of March, 2013.
CITY OF MONTICELLO
Clint Herbst, Mayor
ATTEST:
J46XVII, City Administrator
EDA Agenda — 05/13/15
10. Consideration to establish an EDA sub - committee for development of an Economic
Development staff recommendation. (JO /AS)
A. REFERENCE AND BACKGROUND
The EDA is asked to appoint 2 -3 members to an EDA sub - committee for purposes of
developing a recommendation for Economic Development staffing. A work group for this
purpose was requested by the EDA at its April workshop on the 2015 EDA Work Plan.
The sub - committee will review sample job descriptions, the functions of the economic
development department (past, present and future), and the contract for Market Matching
services as part of developing a recommendation. The goal will be to have a
recommendation on staffing for the regular EDA meeting in June, which can then be
refined and forwarded to the City Council for consideration and budgeting discussions.
Staff would propose a first meeting date of Wednesday, May 20', 2015 at a time to be
determined by the new sub - committee.
Sample job descriptions, the Market Matching contract, and other supporting materials will
be provided in advance of the May 20th, 2015 meeting to sub - committee members.
B. ALTERNATIVE ACTIONS
Motion to appoint EDA Commissioners
and
to a sub - committee for development of an Economic Development staffing
recommendation.
2. Motion of other.
C. STAFF RECOMMENDATION
Staff defers to the EDA on the establishment of this work group. This item is being
brought forward based on the direction given by the EDA at its workshop. An alternative
to the formation of a sub - committee is to allow staff to prepare a staffing recommendation
for EDA discussion in June.
D. SUPPORTING DATA
Sample Economic Development job descriptions.
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:
. 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
SBA 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.
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.
8. May negotiate economic incentive packages with prospective businesses. Analyzes
financial needs of specific companies to insure that public /Authority resources ar e 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 procedure s 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.
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
Bachelor's Degree in Public Administration, Business Administration, or a closely related
field highly desirable.
Minimum of three years of experience working in economic development, preferably at the
local government level.
A demonstrated record of ongoing continuing education in economic development.
Economic Development Director
City of Monticello
Exempt
Title of Class: Economic Development Director
Effective Date: November 15, 1991
Revised Date: October 13, 2008
February 11, 2011
DESCRIPTION OF DUTIES
General Statement of Duties: Performs responsible professional work, planning, promoting,
developing and implementing economic development and redevelopment goals for the City; performs
related duties as required.
Supervision Received: Works under the general supervision of the Community Development
Director.
Supervision Exercised: None.
TYPICAL DUTIES PERFORMED
The listed examples may not include all duties performed by all positions in this class. Duties may
vary somewhat from position to position within a class.
*Provides administrative and professional support as the Executive Director for the EDA, managing
business affairs and acting as a liaison for the City.
Oversees the Authority's financial and fund reports and ensures compliance with the MN Business
Subsidy Act and State Auditor's requirements.
*Plans, develops, presents for approval and implements long range goals and strategies that support
the City Council and EDA goals as reflected in the Monticello Comprehensive Plan and
Monticello Redevelopment Project No. I Plan.
*Oversees, develops and administers financial funding strategies, policies and programs that support
the City's goals and comply with State law.
*Encourages commercial and industrial business retention and expansion with existing businesses
and property owners.
*Negotiates terms and conditions for TIF Districts, purchase agreements, development contracts, loan
agreements, assessment agreements and related documents with assistance from the EDA's
attorney.
*Assists with the land acquisition process for proposed redevelopment and negotiates purchase
agreements on behalf of the EDA; may coordinate eminent domain process on occasion as
appropriate.
*Works with the Community Development Coordinator and Chief Building Official to ensure
coordination between economic development and redevelopment projects and the City Zoning
ordinance and review process.
*Provides city staff with reports on development proposals and project updates and assists in
identifying site development issues facing industrial development projects.
*Maintains regular contact with business and property owners, developers, real estate agents, lending
institutions and related organizations to facilitate achievement of goals; develops and delivers
presentations at conferences, meetings and seminars.
Economic Development Director
City of Monticello
Exempt
*Primary staff liaison to the Industrial and Economic Development Committee, Chamber of
Commerce, Wright County Economic Development Partnership, Economic Development
Association of MN and MN Department of Employment & Economic Development.
*Identifies new industrial prospects and serves as primary City liaison at prospect stage.
*Assists in maintaining open and positive communication between private project owners /managers
and city staff from prospect stage through project completion.
*Participates in the citywide marketing/branding effort including updating City promotional
brochures and videos and maintaining an updated community profile to coordinate economic
development marketing and promotional activities and accomplish goals.
Maintains updated information pertaining to economic development on City website.
*Plans and oversees marketing for City -owned business center.
*Prepares and presents information to prospective businesses relating to development opportunities
and financial incentives.
*Prepares annual business report for the EDA, completes required forms and publishes notices.
*Maintains all business records for the Economic Development Department and EDA.
*Facilitates review and assessment of current financial incentive tools; explores financial incentives
used by other communities for application in Monticello.
*Assists in developing and preparing individualized project financing proposals in cooperation with
City consultants to meet prospects' financing requirements.
*Informs industrial prospects of Monticello site development standards and explains the value to the
prospect and City in maintaining high quality industrial areas.
*Assists the Community Development Coordinator as needed in providing guidance to business
developers from implementation through project completion.
Schedules and attends industrial business location visits with the promotional subcommittee and
City staff, coordinates and facilitates tours of the City, meetings and luncheons.
*Provides finance consultants with information necessary to develop a financial plan including
"Source/Use" statement.
*Markets the availability of the GMEF and other financial incentives for expansion projects.
*Assists developers with preliminary and formal GMEF applications, analyzes formal application
and financial information and prepares written recommendation for EDA and Council
approval.
Recommends TIF assistance level available or refers related questions to city consultants.
*Assists developer with TIF application process, assures compliance with statutory requirements and
coordinates the TIF process with the County, EDA and Council.
*Reviews issues related to compliance with TIF City Guidelines and GMEF Policies /Guidelines;
recommends updates as needed.
*Monitors UDAG and GMEF balances; recommends authorization of additional funds to the EDA.
Prepares EDA agendas for review by the City Administrator and oversees preparation of minutes.
*Facilitates annual EDA planning processes in coordination with the Comprehensive Plan and
prepares requests for amendments; suggests improvements and drafts written plans.
*Assists in preparing and updating economic development and redevelopment portions of the
City's comprehensive plan and provides input on other aspects of the plan.
*Prepares the annual Economic Development Work Plan and develops and monitors the annual
budget.
Monitors legislative initiatives related to economic development and redevelopment, which may
impact the EDA and City; may provide testimony at the State Legislature.
*Prepares city newsletter articles relating to economic development.
Economic Development Director
City of Monticello
Exempt
*Schedules City Administrator and IDC teams for Business Retention and Expansion (BRE) visits;
conducts and assesses BRE surveys and responds to questions and concerns.
*Researches, collects data, and prepares reports as needed or as directed by the EDA or City
Administrator.
*Provides information and policy recommendations to City Administrator for incorporation into
reports to the City Council.
*Provides regular feedback to the Engineering Department to ensure up -to -date information is
available on existing commercial and industrial properties, owners and utilities /services.
May assist in preparation of grant applications.
Performs other duties as needed or assigned by the City Administrator.
KNOWLEDGE, SHILLS AND ABILITIES
*Considerable knowledge of government processes and services, economic research and marketing
related to economic development and redevelopment.
*Considerable knowledge of industrial property development.
*Considerable knowledge of city planning, project development, financing, land acquisition and
related areas.
*Working knowledge of laws, rules and regulations related to development and related financing and
ability to communicate such to industrial project developers.
*Considerable skill to operate office equipment including personal computer with Internet, word
processing, spreadsheet, Power Point and database management applications.
*Considerable ability to create innovative marketing proposals for developers and promote the City
as a desirable destination for development or relocation of business and industry.
*Considerable ability to plan and coordinate prospect visits and provide prospects with information
necessary for considering Monticello as a site for their companies.
*Considerable ability to assist community development and engineering staff and developers in
resolving site development problems in a positive manner.
*Considerable ability to communicate effectively both orally and in writing and maintain effective
working relationships with state and federal agencies, property and businesses owners, elected
and appointed officials, committee members, potential developers and the general public.
*Considerable ability to develop alternatives and determine costs, advantages and disadvantages of
various alternatives.
*Considerable ability to analyze financial statements including balance sheets, profit and loss sheets
and cash flow statements.
*Considerable ability to use good judgment in addressing potential conflicts between industrial and
commercial interests and City policies, standards and plans.
*Considerable ability to perform mathematical calculations, analyze data and prepare reports.
Working ability to read and interpret building plans, site plans and city service maps.
MINIMUM QUALIFICATIONS
Bachelor's degree with major course work in economic development, local and urban affairs,
planning or a related field and three years of experience in economic or community development.
Must obtain certification from the National Development Council within one year of hire. Must
possess and maintain a valid MN Class D Driver's license.
*Asterisked items are essential to the job
EDA Agenda: 05/13/15
1
11. Director’s Report
A verbal report will be provided at the meeting.