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EDA Agenda 03-12-2014EDA MEETING Wednesday, March 12th, 2014 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, Rod Dragsten and Council members Tom Perrault and Brian Stumpf Staff: Executive Director Jeff O'Neill, Wayne Oberg, Angela Schumann 1. Call to Order. 2. Approve Meeting Minutes: a. February 12th, 2014 Regular Meeting Minutes 3. Consideration of additional agenda items. 4. Consideration of approving payment of bills. 5. Consideration to adopt Resolution 2014 -024, adopting amendments to the bylaws of the Economic Development Authority. 6. Consideration to approve Resolution 2014 -025 Approving the Terms of a $800,000 Tax Increment Interfund Loan in Connection with Tax Increment Financing District No. 1 -22 within Central Monticello Redevelopment Project No. 1. 7. Consideration to Adopt Resolution 2014 -023 Approving Purchase Agreement for property at 130 East Broadway, 9155010034102. 8. Consideration to Adopt Resolution 2014 -022 Adopting a Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -39. 9. Consideration of Director's Report. 10. Adjourn. MINUTES SPECIAL MEETING — IECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 121", 2014 — 5 p.m. Academy Room — Monficel to Community Center Present: Bill Demeules, Bill Tapper, Brian Stumpf, Tom Perrault, Rod Dragsten, Tracy Hinz, Matt Frie Absent: None Others: Angela Schumann, Jeff O'Neill, Wayne Oberg 1. Call to Order Bill Demeules called the special EDA meeting to order at 5:11 p.m. Purpose of Meeting The purpose of the special meeting is to discuss development of the 2014 EDA workplan. 3. Workshop Angela Schumann acknowledged that. although the objectives of the EDA's 2013 workplan continue to be a priority, the focus of the workshop is to develop a unified message about Monticello upon whichto build the 2014 and future workplans. She suggested that developing a "brand" would establish.direction and drive for Monticello. Schumann provided copies of numerous resources, such as the Economic Development Chapter of the Comprehensive Plan, the 2013 EDA workplan, and a draft workplan idea sheet to invite brainstorming and identify program options for additional research and possible future implementation. Schumann briefly outlined services and amenities cited in the Comp Plan that attract and keep people in Monticello. Among those noted and discussed were: o Excellent public education system o Access to a wide range of quality health care services o An unequaled system of parks, trails and recreation facilities including Monticello Community Center, the Mississippi River and Bertram Regional Park o A downtown area that combines a successful commercial district, community identity and heritage with connection to the Mississippi River o A thriving place of commerce that provides needed goods and services through businesses engaged in the civic life of Monticello o A wide range of employment opportunities with a growing emphasis on jobs at higher wage levels that allow more people to live and work in Monticello Special EDA Minutes: 2/12/14 Brian Stumpf also pointed to the many quality senior housing options as a local asset. Jeff O'Neill noted that land availability, access to transportation and a manufacturing emphasis were also significant local assets. He suggested that successful communities seem to have a synergy which involves a walkable community, attention to aesthetics, and connectivity. He mentioned that some communities have hosted competitive events designed to identify new applications for local technology capacity and draw attention to the community. O'Neill also suggested a focus on creating an awareness of the satellite educational opportunities in town. There was some discussion about the perception that Monticello is too far from the metro area. O'Neill agreed that countering that perception is critical to marketing the community. Matt Frie suggested that supporting area transportation efforts would seem to close the distance. Schumann noted that the IEDC had included continued support of initiatives like the I-94 Coalition as part of their workplan as well. Schumann summarized that three factors seem to be key to the City's identity. Monticello is a subregional hub; it is tech savvy; and it is a recreation destination. She suggested that the EDA prioritize efforts in support of this identity. Tracy Hinz suggested that the EDA also focus on enhancing the circumstances of those that live and work in town. Schumann pointed to the Business Expansion Pilot Program as one of the many option available to address retention and show local appreciation. Bill Tappensuggested that the EDA hire expertise to move forward with branding. Schumann noted that the City of Elk River had done so for their brand "Powered by Nature." She indicated that while it may be manageable for staff and the EDA to work together to develop a brand, it would likely be best to hire to broadly market the brand. Hinz asked about utilizing social media and local print media to address perceptions. Schumann pointed to the recent "Why I Love Monticello" Facebook effort as one approach that seems to be working. Schumann agreed to further research branding opportunities and work with staff to craft a core message for EDA consideration. 3. Adiournment MATT FRIE MOVED TO ADJORN THE SPECIAL MEETING AT 5:55 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7-0. Recorder: Kerry Burri Date Approved: Attest: EDA Representative MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING Wednesday, February 12t1, 2014 - 6:00 p.m., Mississippi Room Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault, Brian Stumpf Absent: None Others: Jeff O'Neill, Wayne Oberg, Angela Schumann 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Acceptance of Minutes a. December 11th, 2013, Special Meeting Minutes ROD DRAGSTEN MOVED TO ACCEPT THE DECEMBER 11TU, 2013 MEETING MINUTES AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. (Brian Stumpf abstained.) b. December 11th, 2013 Regular Meeting Minutes MATT FRIE MOVED TO ACCEPT THE DECEMBER 11TU, 2013 MEETING MINUTES AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. (Brian Stumpf abstained.) c. January 81h 2014, Regular Meeting Minutes BRIAN STUMPF MOVED TO ACCEPT THE JANUARY 8TU, 2014 MEETING MINUTES AS PRESENTED. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 5 -0. (Matt Frie and Bill Demeules abstained.) 3. Consideration of additional agenda items None 4. Consideration of approving payment of bills BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH JANUARY 2014 IN THE AMOUNT OF $64,943.71. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 5. Annual Meeting a. Consideration to Elect Officers EDA Minutes: 02/12/14 Angela Schumann noted that there were no terms due to expire. She invited members to propose nominations for one -year appointments for the officer positions of President, Vice - President, Secretary, Treasurer and Vice - Treasurer. Schumann clarified that the Vice - Treasurer position ensures that another commissioner has signatory authority in the absence of the Treasurer. BILL TAPPER MOVED TO APPOINT BILL DEMEULES AS EDA PRESIDENT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. BRIAN STUMPF MOVED TO APPOINT BILL TAPPER AS EDA VICE - PRESIDENT. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7- 0. BRIAN STUMPF MOVED TO APPOINT STAFF AS EDA SECRETARY. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. MATT FRIE MOVED TO APPOINT TRACY HINZ AS EDA TREASURER. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. BRIAN STUMPF MOVED TO APPOINT MATT FRIE AS EDA VICE - TREASURER. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. a+ b. Consideration of Acceptance of EDA Fund Balance Report Finance Director Wayne Oberg stated that he had included a broad overview of investment and market value concepts as part of his presentation in an effort to provide clarity and transparency as related to development of the Fund Balance Report. Tracy Hinz asked if Oberg was the only one involved in City investment decisions. Oberg stated that, although decisions are not made by a Finance Committee, they are made in accordance with state statute and the city investment policy. He noted that the City identifies safety, liquidity and yield, in that order, as investment priorities. He defined these and other key terms including par, discount, premium, yield and duration to provide the EDA with a framework for thinking about investment strategies. Hinz asked if TIF funds were used for investment. Oberg indicated that investments were made utilizing pooled funds from many sources. Hinz also asked how much of the EDA's available fund balance is invested. Oberg said that one seventh of EDA funds is pooled for investment. Oberg noted that the Fund Balance Report displays negative amounts for investment EDA Minutes: 02/12/14 earnings and that this reflects the increase in interest rates and the corresponding decline in investment market values. He further discussed shifting market values, tracking and marking the market, and structuring the portfolio. Oberg summarized several graphs which illustrated varied durations and resulting percentage investment yields. He recommended that investments be no longer than ten years in duration to ensure the preservation of capital. City Administrator Jeff O'Neill suggested that perhaps the changing economy and amount of reserve funding on hand in the past may account for differing investment duration perspectives. Oberg clarified that the Fund Balance Report summarizes unrealized losses or losses on paper rather than actual loss. Schumann stated that in relationship to the one GMEF loan currently in arrears, she and Oberg had communicated with the loan recipient on options for becoming current with GMEF loan payments. BILL TAPPER MOVED TO ACCEPT THE 2013 EDA FUND BALANCE REPORT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7- 0. c. Consideration to review EDA Bylaws Schumann reported that the EDA bylaws required no changes from a legal or statutory standpoint at this time. She invited commissioner input related to the bylaws and the enabling resolution. Tom Perrault wondered about the accuracy of Section 5.3, Treasurer's Duty, in the bylaws which specifies that EDA disbursements are to be made by check only. He also noted that the language within Section 6.03 of the Enabling Resolution seemed to refer to the HRA as a separate entity from the EDA. Schumann agreed to review these questions with the EDA attorney. Matt Frie said that he wanted to make sure that all procedures were incorporated into the EDA bylaws. Staff indicated that the EDA operates within state statutes and that meetings are conducted in accordance with Robert's Rules of Order as stated in the bylaws. BILL TAPPER MOVED TO DIRECT STAFF TO RESPOND TO QUESTIONS RELATED TO THE EDA BYLAWS AND ENABLING RESOLUTION FOR FURTHER EDA CONSIDERATION. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. d. Consideration to review Business Subsidy policies EDA Minutes: 02/12/14 Staff asked for EDA input related to its business subsidy policies and criteria including guidelines for Tax Increment Financing (TIF), Greater Monticello Enterprise Fund (GMEF) and Small Cities Economic Development Set -aside Revolving Loan Fund. There was some brief discussion related to minimum wage requirements and some concern that these could be interpreted as discouraging entry level positions. The general consensus of the EDA seemed to be to reconsider the language once legislative had been taken to increase the minimum wage. Tracy Hinz indicated that she'd like the EDA to do a better job of marketing business subsidy options within the community. Schumann suggested that the IEDC discuss incentive programs at an upcoming meeting. 6. Consideration to review for approval 2014 Greater MSP Sales Force partnership commitment BILL TAPPER MOVED TO APPROVE A $400 ANNUAL LICENSE FEE FOR 2014 FOR THE GREATER MSP SALESFORCE CRM LICENSE. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. 7. Consideration of the Director's Report I -94 Reconstruction Project (CSAH 18 to West of TH 25) — MnDOT will conduct an open house to answer questions about the traffic impact likely during upcoming I -94 reconstruction project on March Yd from 5- 6:30pm at the Monticello Community Center. Further information about this project can be found by clicking the link on the City's website scroller. Market Matching Contract Report — Staff will make the mid -year Market Matching report available on the City's website. 8. Adjournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:24 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burri Approved: Attest: EDA Representative 4 EDA Agenda: 03/12/14 4. Consideration of approving payment of bills (WO) A. REFERENCE AND BACKGROUND: Included are the previous month's invoices for approval of payment. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through February 2014 in the amount of $11,532.86. 2. Motion to approve the registers with changes directed by the EDA. C. STAFF RECOMMENDATION: City staff recommends approval of payment for submitted invoices. D. SUPPORTING DATA: Invoices Accounts Payablc Transactions by Account User. AtmZinmierman Printed: 02/05/2014 - 9:07AM Batch. 0020102.2014 CITY OF Account Number Vendor Description M pate Check No Amount PO No 213 46301 - 430400 KEM0D"Y AND GRAVEN CHAR] General EDA Matteis through 11/30/1. 12/31/2013 111875 1,422.00 Vendor Subtotal forDept:46301 I,422.00 213- 46301 - 431990 ECONOMIC DEVELOPMENT SEF !Hospitality MarketAualysis for Down 02/11/2014 111862 4,500.00 Vendor Subtotal forDept:46301 4,500.00 213-46506431990 NORTll AND 3ECURiiaES lNC December 2013 - TIF i-6 Dma resolu 1213112013 111892 280.00 213. 46506- 431990 NORTHLAND SECURITIES INC November 2013 - TIF 1 -6 1213 VM13 111892 640.00 Vendor Subtotal forDept46506 920.00 213 - 46522 -430400 F-2NNEDYAND GRAVEN CT AR7 General EDA Matters thmugh 12/31/1 12/31/2013 111875 216.00 Vendor Subtotal for Dept46522 216.00 213- 46522- 431990 NORTMAND SECURITIES INC December 2013 - TIF 1 -22 Blight Fiat 12/3I/2013 111892 200.00 21346522-431990 NORTHLAND SECURITIES ITI`RS INC November 2013 - TIF 142 12/31)2013 111892 320.00 Vendor Subtotal for Dept46522 520,00 213 46522 -431990 WILSON DEVELOPMENT SERVI( MGFARM - Acquisition & Relocation 12/31/2013 0 1,287.00 21346522-431990 'WILSON DEVEL.OPNIENT S13RVI( MGFARM - Acquisition & Relocation 12131/2013 0 61.02 AP- Transactions by Account (07/05)1014 - 9:07 AK Page 1 Account Namber Vendor Description GLDiite Check No Amount PO No vemor Subtotal fnr Dept46522 1�48A2 213 - 46522438100 XCELENERGY MUTARM 51- 0798481 -0 02/11/2014 111910 Vendor subtatal forDept46522' 213-46539-431990 NORrE AND sECLIRTiTES JKc November 2013 -17F 1 -39 12312013 11I892 Vendor Subtotal for Dept46539 Subtotal for Fund: 213 Reportutal:. The preceding list of bills payable,was reviewed and approved for payment. Date: 315174 Approved by_ Tracy Hinz, Treasurer 76.15 76.15 160.00 160.00 9,162.17 9,162.17 i AP- Transactions by Amount (02/052024 - 9:07 AM? Fagg 2 Accounts Payable Transactions by Account user: Ann.Zimmerman Printed: 02/19/2014 - I0:12ANT Batch: 00205.02.2014 a Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 -431990 HARRY LANNITO 2/12114 EDAnq recording 02/2512014 0 50.00 213 - 46522 - 438300 CEN TRPOINd' ENERGY Vendor Subtotal for Dept:46301 02!2512014 50.06 21346522 - 438100 XCEL ENERGY ZCULPS - 51- 0623082.8 OV25/20I4 111972 17.10 21346522- 438100 XCEL ENERGY MGFARM - 51- 0592578-0 02/25/20I4 111972 17.10 213-46522-438100 XCEL ENERGY MGFARM - 51 -05173848 02/25/2014 111972 11-43 213-46522-438100 XCEL ENERGY utx - MGFARM - 51- 0517365 -5 02/2512014 111972 11120 Vendor Subtotal for Dept-.4652,2 213 - 46522 - 438300 CENTER.POINT ENERGY utx - MGFARM - 9739645 -1 02/25=4 111924 213 - 46522 - 438300 CENTERPOINT ENERGY utx - MGFARM - 9739641 -0 0212512014 111924 213 - 46522 - 438300 CEN TRPOINd' ENERGY utx - MGFARM - 9429449 -3 02!2512014 111924 213 - 46522 - 438300 CENTERPOINT ENERGY ntx - MGFARM - 9429448 -5 07)25/2014 111924 213- 46522 - 438300 CENTERPOINT ENERGY utx - MGFARM - 9429450 -1 02!25/2014 111924 Vendor Subtotal for Dept:46522 213- 46539 431990 NOKMAND SECURITIES INC January 2014 - TIF 1 -39 02!2512014 111947 Vendor Subtotal for Dept46539 Subtotal far Fund: 213 156.83 14.75 111.31 12,.59 279.00 27696 694.61 1,280.00 1,280.00 2,181.44 AP- Thusactions by Accouilt (02119/2014 -10:12 AM) Pagel Accounts Payable Transactions by Account User. Ann O=erman Printed_ 02/19/2014 - 11:42AM Batch: 00201.02.2014 Account Number Vendor Description GL bate Check No Amount PO No 213 - 46522431000 US BANK CORPORAI'i PMT SYS Advanced Disposal - MGFARM -100 12/31/2013 0 1055 Vendor Subtotal forDept46522 1055 213. 46522 - 438200 CITY OF MONTICELLO MOFARM -100 Broadway b 02/15/1014 0 178.70 Vendor Subtotal for Dept46522 178.70 Subtotal forFuud: 213 189.25 Report Total: 18925 The preceding list of bills payable was reviewed and approved for payment Date: 315114 Approved by: Tracy Hinz, Treasurer AP- liansactims byAccount (02119/2014 - 11:42 AK Pagel Account Number Vendor Description GL Date CLeckNo Amount PQ No Report Total: 2,18184 The preceding list of bills payable was reviewed and approved for payment. Date: 315114 Approved by: Tracy Hinz, Treasurer AP- Transactions by Aocount {02/19/2014 -1 0:12 ANO Page 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337 -9300 December 31, 2013 Statement No. 118027 City of Monticello Accounts Payable 505 Walnut Avenue, Suite 1 Monticello, MN 55362 Through November 30, 2013 MN1 90 -00 1 01 General EDA Matters I declare, under penalty of law, that this account, claim or demand is just and correct and that no part of it has been paid. Signature of Claim nt 1,422.00 Total Current Billing: 1,422.00 Page: 1 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 City of Monticello Minneapolis, MN 55402 November 30, 2013 MN190 -00101 General EDA Matters Through November 30, 2013 For All Legal Services As Follows: Hours Amount 111412013 MNI Review of staff report and resolutions for TIF 6 1.30 234.00 Modification. 11/512013 MNI Review EDA staff report for TIF 1 -6 modification. 0.90 162.00 11114/2013 MNI Phone conversation with A Schumann regarding 1.90 342.00 possibility of assisting private economic development corporations with market studies, other small- budget due diligence assistance. 11115/2013 MNI Review questions from T Omdal regarding findings for 0.60 108.00 substandard buildings and order of events (adoption of resolution, removal of parcels from TIF 1 -22, demolition); email response. 11/1812013 MNI Phone and email correspondence with city staff regarding 1.10 198A0 TIF 1 -22 questions; phone conversation with Northland regarding same; review TIF act; follow -up with city. 11/1912013 MNI Phone conference with A Schumann and W Oberg 0.60 108.00 regarding possible acquisition of liquor store property; follow -up email regarding ability to acquire business, along with property. 1111912013 MNI Research question from EDA staff and T Omdal regarding 0.50 90.00 removing parcels from redevelopment TIF district. 11/2072013 MNI Review staff report for Council meeting on TIF 6 1.00 180.00 modification Total Services, $ 1,422.00 Total Services and Disbursements: $ 1,422,00 EconorniC Development Services, Inc. v January 24, 2013 Jeff O'Neill, City Administrator City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 Invoice Hospitality Market Analysis for Downtown Monticello First payment of three JAN 2 8 2014 .. ............ rwwm� Please make checks payable to Economic Development Services, Inc. 612 925 2013 $4,500.00 Northland Securities, Inc. 45 South 7th. Street Suite 2000 Minneapolis, MN 55402 -1625 USA Voice; '612"451• -5900 Fax- 612 -851 -5951 NORTHLAND SECURITIES Sold To: City of Monticello ,Angela Schumann 505 Walnut Street, Suite 1 Monticello, MN 55362 Invoice lnvoice NLlmbc r; 3 5'1.9 Invoice Date: 1/14./14 Page: 1 JAN 1 5 2014; Customer PO Paymetlt Terms Sales Rep ID - Due WDale TIC' Dist Mgmt W— - -W -- Net 30 Days -- — 2/13/14 Subtotal 480.00 Sales Tax Total Invoice Amount 400.00 Check No. Paymout Received TOTAL Norrhlan4i Sectivlt3C6, Inc. 45 South 7th Street, Suite 2000, Minhetapelia, MN 55402 nii r— 1- 800 - 851. -2920 Mi i. 612 -$51 -5900 nix 612 - 851 -5987 WWW,U0XL 10ndSCCUCW0&COtn Member FINKA and SIPC NORTHLAND STRATEGIES Special Projects Group INVOICE SUPPLEMENT Client: City of Monticello Project: TIP District Management Contact: Angela Schumann City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: December 2023 Services Performed Til? District 1.6, Draft resolution and review staff report $280.00 TIF District 1 -22, Blight Findings and communication with leg $200.00 Staff Time Positio Senior Professional Professional Support Total Staff Expenses Mileage Printing Other Total Expenses Total This Periad. :.. Project Summary Total Budget Billed This Period Billed Previous Budget Remaining *Billing on an ltnurly basis, Hours J�ak Billable lable 3.00 $160 $484.00 $185 $0.110 - $205 $0.00 3.00 $480,00 $0.00 $0.00 $0.00 $0.00 $480.00 ' ($484.00) ($2,960.00) $(3,444.00) Northland Securities, Inc. Page 2 of 2 Northland Securities, Inc, 45 South 7th Street Suite 2000 Minneapolis, MN 55402 -1625 USA Voice: 612 --1151 -5900 Fax: 612- 851 -5951 Invoice NORTHLAND SECURITIES Invoice Number: 3473 AS.r. -.�.' ,.. `s: •Y -: c .'Invoice Date: 12/12/1.3 ;E Pop: DEC 1 3 2013 Sold T0: City of Monticello Angela Schumann 505 walnut Street, Suite 1 Monticello, MN 55362 Subtotal 1., 120. 00 Sales Tax Total Invoice Amount I, 1a0.00 Check No: Payknent Receives! TOTAL Northland Secarities, Inc. 45 South 7th Street, Suite 2000, Minneapolis, MN 55402 Tau nwr 1- 500 -851 -2920 &loin 612• - 851.5900 Fax 612 - 851 -5987 Www,northlandsecutities,corn Member FINRA And VPC NORTHLAND STRATEGIES 5pecla.1' Projects Group INVOICE SUPPLEMENT Client: City of Monticello Project: TIP District Management Contact: Angela Schumann City of Monticello 505 'Wa rout Street 51.1 itp 1 Monticello, MN 55562 Billing Period: November 2013 Services Performed + Attending meeting with EDA on modification + Meet with city staff to review TIP 1 -22 and TIP 1 -39 • Attending meeting witli City Council on modification + Review prior TIF 1 -22 modifications and findings Staff Time Position ki rn rs Date BilInble Senior Professional 7.00 $160 $1,120,00 Professional - $135 $0.00 Support - $105 $0.00 Total Staff 7.00 $1,120.00 Expenses Mileage $0.00 Printing $0.00 Other $o,00 Total Fxpenses . $0.00 Total This Period : $1;20.00 Project Summary Total Budget" $ - Billed This Period ($1,120.00) Billed Previous ($1,840.00) Budget:Remaining $(2,960.00) *Billing on an hourly basis. Northland Securities, Inc. Page 2 of 2 Kennedy & Craven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337 -9300 January 22, 2014 Statement No. 118305 City of Monticello Accounts Payable 505 Walnut Avenue, Suite 1 Monticello, MN 65362 Through December 31, 2013 MN190 -00101 General EDA Matters declare, under penalty of law, that this account, claim or demand Is just and correct and that no rl of t has been paid. 03�'/ Signature of GIs ' ant JAN 2 8 2034 216.00 Total Current Billing, 216,00 Page: 1 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 65402 City of Monticello December 31, 2013 MN190 -00101 General EDA Matters Through December 31, 2013 For All Legal Services As Follows: Hours Amount 12118!2013 MNI Review all TIP documents in file for TIP district 1 -22 1.20 216,00 (search for documentatlon of blight findings); emall correspondence with T Omdal regarding same, Total Services: $ 216.00 Total Services and Disbursements: $ 216.00 Invoice submitted to: City of Monticello Attn: Angela Schumann 505 Walnut Street Monticello, MN 56362 Wilson Development Services, LLC 510 Nodh Chestnut Street, Suite 200 Chaska, MN 55318 952.448.4630 800.448.4630 FEIN 26- 1629971 Invoice Dato Invoice Number Last BIN Date January 14, 2014' 22812 51912012 In Reference To: Acquisition & Relocation Services- Montgomery Farms Professional Services . . Pizza�Factnry_(Ekeareri) : . . 111412013 DHW 'Time. Call with Angie, Call to Carry - not hear from him Pizza Factory (Ekegren) JAN 1 6 2014 11/712013 DHW Time. Return call to Garry regarding meeting time & required progress Pizza Factory (Ekegren) 111812013 DM dime Type memo to Angela,Schumann & Tom Scott regarding Pizza Faotgry meeting. Pizza Factory (Ekegren) DHW Timd Call from Peterson, minimal progress. Memo to Angela & T. Scott -' status. of meeting and.plan i'izza Factory (Ekegren) 1111512013 - DML Time Type brief email. response to Angela'regarding conversatlon with Garry.- came down with flu, hope to be better by Monday Pizza Factory (Ekegren) . DHW Time Call Garry - Left message EDA move to terminate lease Pizza Factory (Ekegren) Hrs /Rate _ Amount 0.20 22.00 110.001hr 0,2.0 22.00_ 11.0..001h r . 0.20 15.00 75.001h r 0.40 44.00 110,001hr I 0.10 7,50 75, 00 /hr 0.20 22.00 110.01)1h r City of Monticello Monticello- Montgomery Farms page 2 HrslF2ate Amount 1 111 8/2 01 3 DML Time 0.20 15.00 Type brief email response to Tom Scott regarding Yes meeting is a go; 75,00 /hr Type brief email response to Tom Scott regarding Yes, say "an advance on his relocation benefits" authorizing City to pay unpaid rent out of benefits Pizza Factory (Ekegren) DHW Time 4.50 495,00 Respond to Tom Scott regarding lease drafting and use of relocation 110.00 /hr to pay unpaid rent. Attend meeting In Monticello. Pizza Factory (Ekegren) 11/25/2013 DML Time 0.30 22.50 Type memo to Garry Ekegren, cc Angela Schumann regarding 75.001hr replacement site cornrnitment & cash requirements; to Dan for review - not sent yet Pizza Factory (Ekegren) 11126/2013 HNF Time 1.30 123.50 Prepared check request for partial'claim #1 for morning expenses, 95,001hr updated. business relocation summary & altachmerit to claim, emailed all.documents,ta. Angie &Angela at-M.onlicello,. Updated file. . Pizza Factory ( Ekegren) DML Time 0.1fl 7.50. Edit memo to Garry.Ekegren;.co Angela Schumann from yesterday - 75.00/hr HOLD until talked with Angela . Pizza Factory (Ekegren) DHW Time 0.70. 77:00 Jim= Poterson called.- lease signed. Call Angela - set-meel ing; call 9.1;0.00 /hr Peterson & Garry - meeting time &date Pizza Factory (Ekegren) 8UBTOTAL: [ 8.40 873.00` Won_q, Fu- Lakeland Dental Associates 11/3/2013 DHW Time 1.00 110.00 Work up claim #3 - Memo to'Morphew 110,00/hr Wong, Fu- Lakeland- Dental Associates 11/412013 HNF Time 2,30. 218.50 Prepared claim #3- final, typed attachment to final claim #3; to Dan for 95,001hr review. Updated file, Wong, Fu- Lakeland Dental Associates 111612013 HNF ' Time 0.40 38.00 Discussed with Dan, updated attachment to final moving cost claim; 95.001hr emailed final claim #3 to Jon Morphew for review & distribution to Dr. City of Monticello Monticello- Montgomery Farms page 3 HrslRate Amount Wong for signature. Updated file. Wong, Fu- Lakeland Dental Associates 11/2112013 HNF Time 0.50 47.50 Received final moving cost claim #3 signed, prepared check request, 95.00/hr emailed to Angela & Angie @a Monticello, Updated file Wong, Fu- Lakeland Dental Associates SUBTOTAL; For professional services rendered Additional Charges: C 4.20 414.00' 12.60 $9,287.00 Total amount of this bill $4,210.23 Previous balance $3,583.78 t /Price ' Pizza Factory _(Eke.. rc�en) 11/48/2013 DHW Mileage - 108 i 61.02 Mileage 1-1-2013 -IRS Rate Attend meeting 0.67 Pizza Factory (Ekegren) -SUBTOTAL; [ 01.02; z- Project Management ' 913012013- Other 1 926.62 Miweilaneous Expenses- Actual;Cost Sept. 2013 services (Inv 926.62 #23350 dated 10121113) Computer crash = inforrriatlon last; PAID ACH on 111.13113 z- Projeet Management 10131/2013 Other. 1 1,935.59 - Miscellaneous Expenses AC.tual Cost Oct. 2013 services (Inv 1,935.59 #23389 dated 11111113) Computer crash -information lost; PAID ACH on 12123/13 z- Project Management. .SUBTOTAL: 2,862.21; Total costs $2,923.23 For professional services rendered 12.60 $4,210.23 Total amount of this bill $4,210.23 Previous balance $3,583.78 City of Monticello Monticello- Montgomery Farms Page 4 5/3012012 Payment - Thank You. Check No, 908405 11/1412093 Payment -Thank You 12/2412013 Payment -Thank You Total payments and adjustments Balance due Amount ($3,583.78 ($926.62 ($1,935.59 ($8,445.99 $1,348.02 HOSPOSSIBLE BY MATURI:m QUESTIONS ABOUT YOUR BILL? Seeourwehsite: xcelenergy.com Email us at: Cu314merservic6(Mxe0l0nef9yX0M Please Call: 1800- 481 -4700 Bearing Impaired: 1- 800 - 895-4948 Fax: 1800 -311 -0050 or write us at: XCEL ENERGY PO Box 0 EAU CLAIRE WI 54702 -0008 NORTHERN STATES POWER COMPANY Pega i of e MAILING ADDRESS A00OUNT NUMBER $76.15 MONTICELLO EDA Ot WALNUT ST STE 1 51 0790401 -0 02/`1412014 MONTICELLO MN 55382.8822 STATEMENT NUMBER STATERrIENT DATE JIM= e f. JINN 308333484 01/20/2014 $76.15 is t8 16 17 18 ACCOUNT BALANCE Previous Balance Payment Received Balance Forward Current Charges Amount Due As ofi 12/07 Chock 01/02 C n $67.07 - $67.07 CH $76.15 PREMISES SUMMARY PREMISES NUMBER PREMISES IDENTIFIER PREMISES DESCRIPTOR CURRENT BILL 302392979 106 E BROADWAY ST LAB AREA $72.33 303420703 106 E BROADWAY ST FRONT OFFICE $3.82 Total INFORMATION ABOUT YOUR BILL The liesource Adjustment line item on your bill has been updated to reflect changes in the State Energy Policy and the Renewable Development Fund portions which recover the costs of energy - related legislative mandates and renewable energy development program costs. Questions? Contact us at 1 -800- 481 -4700 or xcelonergy.Com. Interim electric rates became effective Jan. 3, 2014. See the enclosed bill insert for details. Questions? Contact us at 1- 800 -481 -4700 or inquire @xcelenergy.com. Thank you for your payment. CV, Jfte1EnerW RETURN BOTTOM PORTIORVAn-1 voUn pAYWNT, P17J SkDg NaTU6fE x7AVIES,'rAPE an rAPtUt''UPs - ,M)URIPgE AMOUNT EWL48EI `;' 510798481 -0 I 02/14/2014 $76.15 Please see the book of Cis bill for more information regarding iho late payment charge, Pay on or bafore the date due to avoid assossmontof a late paymanteharge. Make your chockpayoble toXCEL ENERGY AV 02 003313 8403A 15 A * &SDGT r111t1,1F�llll�iri11K IlIlulllrlrl111111 'nrl11rllrrrl,i�llllll' MONTICELL.O EPA 605 WALNUT ST STE 1 MONTICELLO MN 55362 -6831 $76.15 f 2 8 4 5 if 7 8 f. JINN 2 7 2014 i..7 x..;. 12 is t8 16 17 18 19 20 21 22 23 24 RETURN BOTTOM PORTIORVAn-1 voUn pAYWNT, P17J SkDg NaTU6fE x7AVIES,'rAPE an rAPtUt''UPs - ,M)URIPgE AMOUNT EWL48EI `;' 510798481 -0 I 02/14/2014 $76.15 Please see the book of Cis bill for more information regarding iho late payment charge, Pay on or bafore the date due to avoid assossmontof a late paymanteharge. Make your chockpayoble toXCEL ENERGY AV 02 003313 8403A 15 A * &SDGT r111t1,1F�llll�iri11K IlIlulllrlrl111111 'nrl11rllrrrl,i�llllll' MONTICELL.O EPA 605 WALNUT ST STE 1 MONTICELLO MN 55362 -6831 i111�1111111�sr1,�1�1�IRl ;# 1111' 11111'1111""If'lill'1,11i1,1111 XCEL ENERGY P,0. BOX 9477 MPI"S MN 55484 -9477 31 51GP1414 07984810 00013=76150131[10000761S p5 _ V f 2 8 4 5 if 7 8 D 10 11 12 is t8 16 17 18 19 20 21 22 23 24 25 26 V 28 i111�1111111�sr1,�1�1�IRl ;# 1111' 11111'1111""If'lill'1,11i1,1111 XCEL ENERGY P,0. BOX 9477 MPI"S MN 55484 -9477 31 51GP1414 07984810 00013=76150131[10000761S p5 _ V XeelEnergy YOUR MONTHLY ELECTRICITY USAGE ,I I M A M ,I J A S 0 N D J 0AILYAVE90ES Temperature `s' ;,• oggi Llectririty kWh��` geadeav cost 171 MQNTICEI.I.O I;t1A ft WALNUT 5T STE 1 MONTICELLO MN 55382.9022 51- 0798483 -0 390333484 1 01/20/2014 SERVO ADDRESS; LAB ANA 106 E BRQAUVIIAY ST MONTICELLO, MH 58982 -9321 NEXT READ DATE; 02P 1/14 ELECTRICITY SERVIC9 DIrTAILS PREMISES NUMBER; 302302979 INVOICE NUMIIFR-. 050409364 ELECTRICITY CHARGES PATE: Sta Can tm aI' atnred) DESCRIPTION USAGE UNITS RATE 01159 Basic service Cho $10.00 Energy Charge Winter 588 kWh $0.489530 $40.86 Fuel Cost Charge M kWh $0.033401 $13.64 Affordability Chrg $0.83 Resource Adjustment $2.54 Interim Rate Adj $0.73 Subtotal $74.68 City Fees $5,50 State Tax 6.675% $5.51 Fatal - - — - $01.69 IIIDN- RECURRING CHARGES f C1REUITS DETAILS DESCRIPTION - CHARGE Ele Interim Refund CR Premise# 302392979 , $13.36 CIR Total , $1336 CIR Promises Total $7233 Pop Quiz Pipe insulation can typically reduce energy losses by A. 2R °/a 0.55% C. BO% D. 90,11% Source; AnspoosihleOyNaturacnm/llusinesa CI i XcelEnewe fags 4 orb VAILI1NGADDRIESS ACCMUNT RUMBER T4JmNe[8taf$ , W. � Electricity kWMh r } x Eleadaiiy STATENiIENT NUMBER fags 4 orb VAILI1NGADDRIESS ACCMUNT RUMBER r r MONTICELLO EDA 505 WA1 KLU sT sTE 1 51- 0788481 -0 110814 MONTIl WD MN 55862 -9022 STATENiIENT NUMBER j8TA7VMEN1rVATE e AMMI 388333484 01/20/2014 $76.15 SERVICEADDRESS: FRONT OFFICE y. 1 7116 E BROADWAY ST MIIpNTICELLO, NIN 653fit �. NEXT READ DATE: 02/11/14 � ELECTRICITY SERVICE DETAILS 3 s, PREMISES NUMBER: 803470763 1NVDICENUMBER: 0504861179 ' > METER 77 785 head Aatat 1 V.071.13.Ot/t 1114 (35 Days) DESCRIPTION CURRENT REAUINO POE IOUs READING USAGR Total Energy OS939 AcIval 66423 Aona1 16 kWh 4amand AMMI 1 0.53 kW 0111abfe Demand $0.54 Affordability Chrg 1 kW ELECTRICITY C"ARGES RATE: Sm Gen Svc (1VlUtUred) DESCMPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 16 kWh $0.069580 $1.11 Fuel Cost Charge 16 kWh. $0.033750 $0.54 Affordability Chrg $0.93 Resource Adjustment $0.07 Interim Rate Adj $019 Subtotal $12.84 City Fees $5.50 State Tax 6.075% — $1.26 Total $19.60 NON- RECURRING CHARGES / CREDITS DETAILS DESCRIPTION CHARGE Efe Interim Refund CR Promise #3=0703 -$15.70 CR Total $15.78 CR Premises Total .' $3.82 INFORMATION ABOUT YOUR BILL Your electric bill this month includes a credit for the differenco you paid under interim rates and the final approved rates with interest Your credit displays as the ling item "Elec Interim Refund CA." Cluestions? Contact us at 1- 800481 -4700 or inquirefxcolenergy.com. For an average non- demand customer, 72% of your bill refers to power plant costs, 11 % to high voltage line costs, and 17% to the cast of local wires connected to your business. For an average demand - billed customer, 82% of your total bill refers to power plant costs, 10% to high voltage lines, and 8%n to the cost of local Wires connected to your business. City Containers Amount $427.62 Solid Waste Management Tax $72,27 TRUX ACCT # Apartment Description 1453 - Oolf Course 3 yard Amount Mgmt Tax $30.60 $5.20 $499.88 Total $35,sfl 1454 -Ellison Park 3yard $40.80 $6.94 $47,74 $10,55 1455- West Bridgc Park 2yard $20,40 $3,47 $23.87 1 1456 -Monticello Sewage Plant 2yard $20.40 $3,47 $23,87 1401 IlartBlvd 1456 -Monticello Sewage Plant 3yard $76.51 $13101 $89.52 14D1 AartBEvd 1438 - City Hall 3 - 3 yards $179.52 $30.35 $208.87 505 Walnut St 1459-?,ionticellD library 2yard $10.20 $1.73 $11.93 6th St & Walnut 4458 -1 -ti -Way Liquors 3y$rd $20,40 $3.47 $23.87 545 Pine 3t 1 13DA 95 gal trash $6.89 17 $10,55 11 IDDBtoadwayB 65,galrecycle $2,49 1 Ann Zimmerman From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Account: Service Address: Service Period.: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Thursday, January 16, 201412:10 PM AP Your bill from City of Monticello, MN is ready, moreinformation.pdf Previous Reading Serial Date Reading 54063925 10/1/2013 3318128 Current Charges - Water: Water: CITY WATER - TXBL Consumption Water: CITY WATER - TXBL Sewer: SEWER - COMMERCIAL Consumption Sewer: SEWER - COMMERCIAL Sewer: SW DISCERG FEE COM/APT/MH 2% Consumption Sewer: SW DISCHRG FEE - COM/APT/MH 2% Water Taxes: WATER TAX ON 100% Total Current Charges:. Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 2/18/2014 This was the amount due at the time of billing. I 007256-001 100 BROADWAY E 10/1/2013 to 12/31/2013 (92 days) 1/15/2014 2/18/2014 Current Reading Date Reading Cons 1/1/2014 3342812 24684 $0.00 $31.64 $17.00 $103.59 $20.65 $2.07 $0.41 $3.34 $178.70 $327.41 $327.41 $0.00 $178.70 $1.78.70 CHECK REQUEST FROM: Kitty Baltos, Conununity Center Director CHECK AMOUNT: +ra REQUEST DATE: Cheek to: Harry T, Lantto Vendor # 907- 2" " Ave S Buffalo, MN 55313 Meeting Worked: EDA Meeting Date Time 3 Amount Due, Other Date Time Amount Due Total Due; 1100, Planning Commission: EDA Other Authorized so I �,00 Date �I�' kIi TIME SHEETS ATTACHED I * *Please return to KITTY for forwarding" Pape 2 of 4 MAIM140 AApN1SS ACcouNT Rumnik n MoM EEDA 51p23062 -6 elEner v 005 WALNUT s STE i 7/s 2014 � NIOMICR O MN 558924022 'STATEMENT INNER STATE T tiA7# 400669843 02/07/2014 $17.40 im A new year is a groat till ma for ... ... new recipes, new ways to be energy efficient, new rebates, new prizes to win and more. Join our growing number of followers on Facebook, Twitter and Pinterest who stay in the know about impnrtant information and specials. L LP XCEL ENERGY'S HISTORICAL FACT OF THE MONTH SERVICE ADDRESS: 849 W BROADWAY ST%e1iT10ELL0, NIN 1 MZ*356 NEXT READ DATE: 03/12/14 ELECTRICITY SERVICE DETAILS PREMMISES NUMIIIIEII: 303657350 INVi110ENUIUBEN 0507628415 ELECTRICITY CHARGES RATE: Sm Can Sue (Metered) DESCRIPTION USA06 UNITS HATE CMAflDE Basic Service Chg $10.00 Fnergy Charge Winter 0 kWh $0.469530 KOO Fool Cost Charge 0 kWh $0.033050 MOD Affordability Chrg $0.93 Resource Adjustment $0.01 Interim Rate Adi $0.68 Subtotal $11.64 City Fees $5.50 Total $97.10 INFORMATION ABOUT YOUR BILL For an average non - demand customer, 72% of your bill refers to power plant casts, 11% to high voltage line costs, and 17 % to the cost of local wires connected to your business. For an average demand- billed customer, 82 % of your total bill refers to power plant costs, 104/9 to high voltage lines, and 8% to the cast of local wires connected to your business. Starting in 1949 and continuing through the I880s, all pov plants built by Xcel Energy's Southwestern Public Service were designed by in -house engineers working in Amarillo. Check back each month for more information on the h istor of kcel Energy. rd XcelEneraya Aq� IT is A now year is a greet time for ... .. new recipes, new ways to be energy efficient, new rebates, new prises to win and more. Join our growing number of followers on Eacebook, Twitter and. Pinterest who stay in the know about important information and specials. A L Page 2 or 4 MAILING ADDRESS ACCOUNT NUMBER 51-0592578-0 i 03/101414 MONTICELLO EDA 595 WALNUT ST MOWICELLO-MN 55a02-3a21 STATEMCNTNUM09 STTEMENTOATE AJ10014 a + 0amand 400877494 $17.10 XCEL ENERGY'S HISTORICAL FACT OF THE MONTH SERVICE ADDRESS: M'PINE ST MONTICELLO, MN 55382 NFXr READ DATE: Oa/13/14 ELECTRICITY SERVICE DETAILS PREMISES NUMBER; 303847449 INVOICE NUMBER: 0507845232 MET£R 7727701 Head Dotes; 01/11/14 - 07,/00114 (28 D0YS1 DE5CAIP1'ION CURRENT99APING PREVIOUSREAOIN[ I USAGE Total Energy 12839 Actual 12939 Actual 0 km 0amand Actual 0 kN1 Billable Oemard 0 kW ELECTRICITY CHARGES RATE- Sns Gen Svc IMewed) DESCRIPTION USAGE UNITS RATE CIIARl1E Basic Servlw N $10.00 Energy Charge. Winter 0 kWh $0.069530 $0,00 Fuel Cast Charge 0 kWh $0.033050 $0.00 Affordability Chrg $0.93 Resource Adjustment $0.01 Interim Rate Adi $0.66 Subtotal $11.60 City Fees $5.50 Total $17,10 INFORMATION AB BUT YOUR BILL For an average non- demand customer, 72% of your hill raters to power plant costs, I I% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand - billed customer, 82% of your total bill refers to power plant "sts,10% to high voltage lines, and 8% to the cast of local wires connected to your business. Starting-in 1949 and continuing through the 1900s, all pov plants built by 7fcei Energy's Southwestern Public Service were designed by iwhouse engineers working In Amarillo. Check back each month for more infarmation on the histol of Xcel E=nergy. Xcel Energy IN A new year As a great time for wr, ... new recipes, new ways to be energy efficient, new rebates, new prizes to win and more. Join our growing number of followers on Facebook, Twitter and Pinterest who stay in the known about important information and specials. X Page 2 of 0 MAILINn ADDRESS ACCOUNT NUMBER 51- 05 17313" :11012014 MONTICELLO EDA 5615 WALNUT Sr STE 1 MON11CRI -O MN 65362.8822 STATEMENT NUMBER STATEMENT BATE � 490074923 02/10/2014 $11.43 SERVICE ADDRESS: 1112 1 BROADWAY ST MIONTICELLO, MN 55304321 NEXT READ BATE: 08/13/14 ELECTRICITY SERVICE DETAILS PnEMISES NUMBER: 303008854 INVOICE NUMBER: 0507838451 ELECTRICITY CHARGES RACE: Residential Sorvice uIESCRIPTIOM USAO£ UNITS RATE CHARGE Basic Service Chg $6.04 Energy Charge Winter 2 kWh $0.073930 $0.15 Fuel Cost Charge 2 kWh $0.035000 $0.07 Affordability Chrg $0.71 Resource Adjustment $0.01 Interlm Rate Adi - -- $0:54 Subtotal $9.48 City Fees $1.95 Total $11.43 INFORMATION AI OUTYOUR BILL For an average residential customer, 55% of your hill refers to power plant costs, 9% to high voltage line costs and 36% to the cost of local wires that are connected to your home. The Home Energy Squad" can help you save on winter energy bills. Let our experts assess your home's energy - saving opportunities and install energy - efficient materials in two hours or less. select your efficient materials from a suite of items including, a programmable thermostat, weather stripping, lighting upgrades, a high - efficiency showerhead, and more to value of $200}- -,all for a low -cost fee of $701 To schedule a Nome Energy Squad visit today call 806.227r4M or visit HoweEnorgySquadmet. Xceffinemyo IN A new year is e great tllllfle for... ... new recipes, new ways to be energy efficient new rebates, new prizes to win and Moro. Join Our growing number of followers on racebook, Twitter and Pinterest who stay in the know About important information and specials. Pee 2'aft MAILING ADDRESS ACCOUNT NUMBER CURRENT 89010 MONTEE;UOl Da 545 WALNUr ST STE 1 51 0517$65 5 03/11/2014 MONTICELLOMN55302.8022 STATERENTNUMBER STATEMENTIDATE Demand Actual 401066642 02/11/2014 $111.20 XCEL ENERGY'S HISTORICAL FACT OF THE MONTH SERVICEADDHESS: S1Z9 BROADWAY StMONTICELIA,NIN m-wzi NEXT READ HATE: 08/15/14 ELECTR #CITY SERVICE DETAILS PREMISES NUMBEM 382695149 INVOICE NUMBER. 0508089713 WOEII?MM Read Oates: 81111114 � 02/09/14 [29 Days) DESCRIPTION CURRENT 89010 PHEVIOUSREAU)NO I USAGE Total Energy 64655 Actual 84416 Actual 1 239 kWh Demand Actual $16.67_ 2.71 kW Billable Damond $7.97 Affordability Chrg 3 kw ELECTRICITY CHARGES RATE; Sm Gen Stitt (Metemd) DESCHIPTION USAGE UNITS RATE CIIAR4E Basic. SP,rvice Chg $10:00 Energy Charge Winter 239 kWh $0.069530 $16.67_ Fuel Cost Charge 239 kWh $0.033347 $7.97 Affordability Chrg $033 Resource Adjustment $1.07 Interlin Rate Adj $1.76 Subtotal $3835 City foes $5.50 Total $43.95 INFORMATION ABOUT YOUR BILL. For an average non - demand customer, 7Z% of your bill rafters to power pie at costs, 11 % to high Voltage lino cosh, and 1.7% to tho cost of local wires connected to your business. For an average demand- billed customer, 820 ofyourtotal bill refers to power plant rosts,10% to high voltage lines, and 8% to the cost of local wires cannoctod to your business. Starting in 1949 and continuing through the 1960s, all pay plants built by Xcel Cnergy s Southwestern Public Service were designed by in -house engineers working in Amarillo Check back each month for more information on the histoi of Xcel Energy. Zwffininyo ABSPar141HIL16 qtr NA7gRSm DAIL� � Y) ERAGES s t Temperature i inetrlcity kWh QUESTIONS AROUTYOUH HILL? Saeourwehsite: xcalenergy,com Email us at: Customerserviceftelenergy,cam please call: 1- 800 - 481 -4700 Hearing Impalred., 1- 800 - 005-4949 Fax: 1- 800 -311 -0050 Or write us at: XCEL ENERGY Pa BOX R EAU CLAIRE WI 54702 -0008 , Xce1iery- NORTHERN STATES POWER COMPAW Page 1 of 4 IMAILINGADDRESS ACCOUNT NUMBER r + 03f1gf2014'. MONTICELLO LOA 51.0517365 - 5D5 WALNUT ST STE 1 e e MONCEi;LOMNS6862 -8822 STATEMENT NUMB CFI STATEMENT DATE to �+� 400877159 02/10/2014 $6735 SUMMARY OF CU Electricity Service ACCOUNT BALANCE Previous Balance Payment Received Balance Forward Current Charges Amount Due INFORMATION ABOUT YOUR RILL filed charges begin on page 23 _ _ � � -' T1.� 'f...... w•s. -ten ..�y.lfy..._,_... As of 01/11 Check 01/27 "r, 05:42 CSC �S- Differentfuel sources are used to generate electricity, and they produce different air emissions. For updated environmental information forthe year ended 2012 go to: www.xcelonargy.com /MNRatos, then go to Additional Resources, Bill Inserts and Brochures/Inside Your Electric Bill- Environmental Disclosure & Costs. If you don't have internet access, please contact us at 1- 800 -481 -4700 and we can provide you With this information. Thankyou for your payment. Beware of stammers posing as someone from Xcel Energy, They could be trying to steal your identity, collect on a bill, or sell you a service. The best wayto combat these scams is to contactXcel Energy directly to verifythe legitimacy of a call or email. VisitXcelenergy,com fortips on howtc identify an Xcel Energy worker and protect your personal information, REIURN 60"#TOM PORTION WITH YOUR PAYMEN ". • PLEASE AO NOT USE STML18JAPk OR PmER cUPS ACCOUNT NUMUCH I DUE DATE 51- 0517365 -5 1 03110/2014 1 $67.35 Please sou the back orthis bill for more information regarding the lato payment charge. Pay on or before the data due to avold assassmontof a late payment charge. Ma ko your chock payable to XCEL ENERGY AV (K 020560 403038120 D"61)GT , 1111111111= IIIIIII' I111111IIl1lIr1111II1 'IIIIiII'I' IIIIIII�uIIII MONTICE110 EIIA 605 WALNUT 5T ST.rl 1 MONTICELLO MN 55362 -6831 2 S 0 5 6 7 e e 11 1R to �+� 1t3 16 17 18 10 20 21 22 23 24 25 26 27 28 28 30 31 11111" Ii1' Ihl' =IIIIIII��IIIIIIII�r,lI1111 IIl1111rhllll�l'nlll XCEL ENERGY P.D. BOX 9477 MPLS MR 55484 -9477 41 S101014 05173655 dl�f]CICICIE1k,7�5ClggppnCl67�5 w ��erPoinf® , We haven't received the past �, FRargy Customername CITY OF MONTICELLO ANGELA SCHUMAN pay this amount today, if you've Account number 9739645 -1 Always There! Billing data 01/31/2014 Date due 02128/2014 YOUR BILL IN DETAIL Comllnd Him Rate 'total amount due $ 15.75 ' QUESTIONS OR COMMENTS? CenterPoint Energy PO SOX 1144 MINNEAPOLIS MN 66440 -1144 (Address not for bill payment) Monday - Friday Call 8 a, m. - 5 p.m, Bill into 6112,3214938 CenterPolntBnergy.com DIDYOU KNOW? ACCT SUMMARY • ;Qas;Chalges Previous balance $30.07 Payment 01116/2014 I: "4'~ - � !' -16.61 Balance forward ; ,$14.46 Payment adjustment 01/09/2014 13,46 Current billing � ° 1" . � "° 6 2014 14.75 Total amount duo i $18,75 SERVICE ADDRESS 106 E Broadway 5t Monticello MN 55302 -9321 YOUR GAS USAGE Meter# MI 0802312700 We haven't received the past 30 pay billing period 12/3012013 to 01/29/2014 04- due charges of $1.00. Please Current reading 01/29/2014 '� 2363 pay this amount today, if you've Previous reeding 12130/2013 2360 recently made your pAyitrenl, Motored Ueage 3 CCF X Therm faclar of 1,00770 = Therms wed In Z0 days = 3 Thank You. Next mater reading 03102120'14 Next billing date 03103/2014 Your account Is ready to view YOUR BILL IN DETAIL Comllnd Him Rate now. Register for free online Baslc charge $12,00 account access. View balance, Delivery charge 3 therms @ $0.163391THM 0.46 usage history, make an online Decoupling adjustment 3 therms @ $0.008201THM 0.02 payment, view recommendations Gas Affordablllty PRG 3 therms @ $0.004901THM 0.01 for saving energy and money Cast of gasp 3 therms @ $0,626671THM 1.50 with My Energy Analyzer, 'includes a purchased gas adjustment Of $0.01967 and much more, Register interim rate adjustment 0,60 at CenterPointEnorgy.nnml (Basic Chg + ($0,66930'thermsy)'4.88000% myaccountonline. Total current charges Avo da8y gas use: This pe(fod tlds yr 0.11 THM; Ihls period last yr 6.6 T"M Page 1 of 1 Avg dally temp: Thle porlad Ih33 yr 8 °F; tide Period last yr 18 T ' conkirFQ/nt S- Mail Ihls portion Whh paymaet. Plasae do but include fetters or notes. gy Account number 9739645 -1 Atsmp Date due 02/28/2014 Total amount due CENTERPOINT ENERGY Ainount paid $ -... PO BOX 1144 't 5 ' MINNEAPOLJS MN 55440 -1144 CENTERPOINT ENERGY PO BOX 4671 HOUSTON TX 77210 -4671 ;r 111. 111111111 I it, III I III, IIIII1111 '111f1111111111111 Jill 11111 '111 00010666 01 AV 0.3781 CITY or MONTICELLO ANGELA SCHUMAN 505 WALNUT ST STE 1 MONTICELL,O. MN 56362 -8822 111111111 n11118411111111111111111 111111111'11' 11$1111111$1111111 1400082709952 0072000009739645130000000 157500000001575kO All CenterPoint® , r 30 Day billing perlod En"y Customer name CITY OF MONTICELLO ANGELA SCHUMAN Previous reading Account number 9739641 -0 Always There° !lilting date 01/31/2014 Next billing date Crate due 0212MO14 Cost of gas" 136 therms Total amount due $112.31 QUESTIONS OR COMMENTS? CenterPoint Energy PO BOX 1144 MINNEAPOLIS MN 55440 -1144 (Address not for bill payment) Monday - Friday Call 8 a.m. - 5 p.m. Bill Info 612- 321 -4938 CenterPaintEnergy. com DID YOU KNOW? We haven't received the past due chatges of $1.00. Please pay this amount toddy. If you've recently made your patyment, Thank You. Your account is ready to view now. Register for free online account access. View balance, usage history, make an online payment, view recommendations for saving energy and money with My Energy Analyzer, and much more. Register at CenterPointEnergy_comf myoccountonline, ACCTSUMMARY Prevlaus balance Payment 011161201.4 _ Balance forward Payment adjustment 01109/2014 Current billing Total amount due E' SERVICE ADDRESS 100 E Broadway St Monticello MN 55362 -9321 _$69.45 1,7.29 I� i� f? .._ 6 f � � � • � • 16.29 111.31 .. 1 $112.31 YOUR GAS USAGE Meter 9 M1W02312729 30 Day billing perlod 12130/2013 to 01/2912014 +r%i7' Currant reading 01/2912014 150 Previous reading 12/30/2013 15 Metered Usage 136 CCF X Therrn factor of 1.00770 - Therms used In 30 days 136 Next meter reading 03/02/2014 Next billing date 03103/2014 YOUR BILL IN DETAIL Comlind rirm Rate Basic charge Mall thts podldn wllh payment. $12,00 Delivery charge 136 therms @ $0.153391THM 20.86 Decoupling adjustment 130 therms @ $0.008201THM 1.12 Gas Affordability PRG 136 therms Q $0,004901THM 0.67 Cost of gas" 136 therms aQ $0,527211THM 71.70 *includee a purchased gas adjustment of $0.01967 Interim rate adjustment 4.96 (Basic Chg + ($0.65930 1herms)) *4,88000% Total current charges $111.31 Avg dally gas use; Tills perlod this yr 4.6 THM; Uils period Iasi yr 0 THM Page 1 of 1 Avg dally tamp; This posed this yr 0'I ;Use peded IW yr 18T CENTERPOINT ENERGY rp PO BOX 4671 HOUSTON TX 77210.4671 �' j' �' II' ulll' ��' llll�ul�ril�llul 'I�I��I�I�N'ljlllll'lilll�l'fll 00019866 01 AV 0.378 1 CITY OF MONTICELLO ANGELA SCHUMAN 605 WALNUT ST STE 1 MONTICELLO, MN 56362 -8822 11111 11111 1111' 1111 gill ' illuil111111n1nili11l141tnn 'Ill1llli 1401082709545 0072000009 73964 06000000112310000001123120 n}igrpQlj� Mall thts podldn wllh payment. Please do not Include letters or notes, �,l=ner9Y Account number 9739641 -0 Date due 0212812014 Asvtty Them., Total amount due $ g CE=NTERPOINT ENERGY Amount paid $ PO BOX 1144 MINNEAPOILIS MN 55"04 1 44 13� CENTERPOINT ENERGY rp PO BOX 4671 HOUSTON TX 77210.4671 �' j' �' II' ulll' ��' llll�ul�ril�llul 'I�I��I�I�N'ljlllll'lilll�l'fll 00019866 01 AV 0.378 1 CITY OF MONTICELLO ANGELA SCHUMAN 605 WALNUT ST STE 1 MONTICELLO, MN 56362 -8822 11111 11111 1111' 1111 gill ' illuil111111n1nili11l141tnn 'Ill1llli 1401082709545 0072000009 73964 06000000112310000001123120 Ce nteftinn. , Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 9429449 -3 ,Always Therein 8111ing date 01/31/2014 Date due 02>2a12014 Total amount due $ 13.59 QUESTIONS OR COMMENTS? CenterPoint Energy PO BOX 1144 ACCT SUMMARY :..: • .•• ...:. : • . �.,.... •, ,.: ::.:,:;.: - Gas charges r MINNEAPOLIS MN 55440 -1144 Previous balance Payment 8l 2494 a -76.26 not for bill payment) Balance forwar d • ' � �: � � 3g,73 Monday - Friday Call $ a.m. - 5 p.m. payment adjustment 0110012014' �. r - E(� j�. 1.= '' - 37.73 Bill Info 812- 321-4939 Current billing " r 12,59 CenterPointEnergy.com Total amount due $1g,5g SERVICE= ADDRESS 202 Pine St ". Monticello MN 55362 -8565 DID YOU KNOW? YOUR GAB USAGE Maier # M19822312867 We haven't received the past 30 pay billing period 1 213 41201 3 to 01/2912014 c t a '� due charges of $1.110. Please Current reading g 01129120'14 5486 pay this amount today. If you've Previous reading 12/34/2013 5486 recently made your payment, Metered Usage 0 001- X Therm factor of 1.00770 y Thorn s used In 30 days = Thank You. Next meter reeding 03!0212014 Next bllling date 03103/2014 Your account Is ready to view YOUR BILL IN DETAIL ComAnd Firm Rate now. Register for free online Basic charge $12.00 accowit access. View balance, Delivery charge 0,04 usage history, make an online Decaupling adjustment 0.00 payment, view recommendations Gas Affordability PRG 0100 for saving energy and money Interim rate adjustment 0,50 with My Energy Analyzer, (13"Ir.Chg + ($0,659301herms)) "4.88000% and much more. Register at CenterPointEneryy,cam/ rnyaccountonline. Total current charges $12.59 " Page 1 of 1 Avg dally temp: Tlrls period this yr 8 Ti this period lasl yr 18 °F Centerpafnt, Mail this portion with payment. Please do not Include letters or notes. Account number 9429449.3 Date due 02128/2014 A{wTt�etx' Total amount due CENTERPOINT ENERGY Amount paid $ PO BOX 1144 MINNEAPOLIS MN 55440 -1,144 CENTERPOINT ENERGY ,o PO BOX 4871 n HOUSTON TX 77210 -4671 Will 00019715 01 AV 4.3781 THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT 505 WALNUT sT MONTICELLO, MN 55362 -8821 111111111 11 111th1111111111111 ill 11 Ill Jill 1111i1101111 036111179479700 007200000942444934 0300000135900000001359 O Codl7terPot>ots �gy Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 8429448 -5 Always There.° Billing date 01/3112014 Date due 02/2812014 Total amount due $ 280.47 QUESTIONS OR COMMENTS? GenterPoint Energy PO BOX 1144 ACCT SUMMARY r Gas charges MINNEAPOLIS MN 55440 -1144 Previous balance Pa meet 01/16/2074 5n . �96,Bg � �= Address not for bill payment) � p Y ) 8alange forward •• � 7 99.15 Monday - Friday Call 6 a.m. •- 5 p.m, Pdyment adjustment 01/09/2014 j 97,68 Bill info 612-3214939 Current billing { �� "�};!1 : '278.00 CenterPofntEnergy.com Total amount duo I $280,47 SERVICE ADDRESS 206 Pine St Monticello MN 55362 -8665 DIDYOU KNOW? YOUR GAS USAGE Meter # M19802312869 We haven't received the past 30 Clay billing period 112130/201300112912014 Uol-A due Charges of $1.47. please Current reading 01/29/2014 1709 pay this amount today, If you've Previous reading 12/30/2013 1345 recently made your payment, Metered Usage 864 COF X Therm Notar of 1,40770 =Therms used In 30 days = 367 Thank You. Next meter reading 0310212014 Next bllling date 0310312014 Your account Is ready to view YOUR BILL IN DETAIL Comllnd Firm Rate now. Register for free online Basic charge $12,00 account access. View balance, Dellvery charge 367 therms @ $0.153391THM 56.29 usage history., make an online Decoupling adjustment 367 therms @ $0.006201THM 3.01 payment, view recommendations Gas Affordability PRIS 367 therms @ $0.004901THM 1.80 for saving energy and money Cost of gas* 367 tilerms @ $0.527281THM 193.51 with My Energy Analyzer, *Includes a purchased gas adjustment of $0.01967 and much more. Register Interim rate adjustment 12.39 at CenterPointEnergy.coml * * Q (Basic Chg + ($0,65930 therms)) 4.88000 /o myaccountonlino. Total current charges 9 OE Avg dally-ass uso, Tlds partod lhts yr 122 THM; thls perlod last yr 9.2 THM Centelpaint �rgy CEN'TERPOINT ENERGY PO BOX 1144 MINNEAPOLIS MN 55440 -1144 Page 1 of 1 Avg dally temp; This period this yr a OP= this parlod Inst yr 18 OF Meil this pottiorl with payment. Please do not Intrude letters ornotea Account number Date due Total amount due Amount bald 942944a -5 02128!2014 ;_I i' 00 CENTERPOiNT ENERGY ro PO BOX 4671 HOUSTON Tx 77210 -4671 11111111111111111 Jill 1111111111111111111111f11111111 00019713 01 AV 0.3781 THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT 505 WALNUT ST MONTICELLO, MN 55362 -8821 11111111' Ildllll bill III 111111111111 1111111 [All 11111111 Jill 11111 , 0380079979692 0072900 009429448550000002804700000028fJ4730 �centel po nto , Mater # M19909103467 lla gy Customer name THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT Account number 9429450 -1 Always Them." Billing date 0113112014 Previous reading Date due 0212812014 recently made your payment, Total amount due $ 279,22 011.119STIONS OR COMM5NTS7 CenterPolnt Energy PO BOX 1144 MINNEAPOLIS MN 55440 -1144 (Address not for bill payment) Monday - Friday Call 8 a.m. 5 p.m. Bill info 612- 321 -1939 CenterPointEnergy.com - DID YOU KNOW? ACCT SUMMARY i s. Obs charga& Previous balance :T;, °. k^ , .,, , ,+, '.$428.42 Payment 0111612014 : - 269.81 Balance forward �W !.$ 156.61 Payment adjustment 01 10 912 0 1' ? s � 71 ;.l .1 - 154.35 Current billing ` "` , 276.98 Total amount due s i 4270.22 SERVICE ADDRESS ; 112 E Broadway St Monticello MN 55362 -4654 Avg dally gas use; This purlud thin yr 12.2 THM; 1116 period last yr 14.7 THM CenterPohil f� norgy AlwqsTheve CEWERPOINT ENERGY PO BOX 1144 MINNEAPOLIS MN 55440 -1144 Page 1 of i Avg deity lamp: This period this yr 8 °F; this period last yr 18 °F Mai thispudton With paymnnt, Please Uo not Include tatters u7 notes_ Account number Date dire Total amount due Amount paid CENTERPOINT ENERGY PO BOX 4671 HOUSTON TX 77210 -4671 111111111 Jill 1111111 Jill I1 11111111 111111111111111111,1 it, itI1111 00019714 01 AV o.378 1 9429450 -1 021291201 $ 2 THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT 505 WALNUT ST MONTICELLO, MN 55362 -8621 "• 11111u111111111111 11111111111i111 Jill .1111111111111111111111111 03800749797718 00720000094294SU 120[]C 0002792CC1[3i OU02792270 YOUR GAS USAGE Mater # M19909103467 We haven't received the past 30 Day billing period 12/3012013 to 01/29/2014 ti. f due charges of $2.26. Please Current reading 0112912014 ' 4433 pay this amount today. If you've Previous reading 12/30/2013 4070 recently made your payment, Metered .Usage 363 COF x Therm factor of 1.00770 - Tharrns used In 3t7 days 366 Thank You. Th Next maker reading 03/02/2014 Next billing date 03/OS/2014 Your account is ready to view YOUR BILL. IN DETAIL Comllnd Firm Rate now. Register for free online Basic charge $18.00 account access. View balance, Delivery charge 366 therms @ $0.1508UTFIM 65,20 usage history, make an online Decoupling adjustment 366 Therms @ -$0.009871THM -3.61 payment, view recommendations Gas Affordability PRG 366 therms @ $0.004901THM 1.79 For saving energy and money Cost of gas' 366 therms @ $0.52724/THM 192.97 with My Energy Analyzer, ``Includes a purchased gas adjustment of $0,01967 and much more. register Interim rate adjustment "4.88000% 12.61 at CenterPointEnergy.coml (Basic Chg + ($0.66672 "therms)) rinyaccauntonline. Total current charges C$276.06 Avg dally gas use; This purlud thin yr 12.2 THM; 1116 period last yr 14.7 THM CenterPohil f� norgy AlwqsTheve CEWERPOINT ENERGY PO BOX 1144 MINNEAPOLIS MN 55440 -1144 Page 1 of i Avg deity lamp: This period this yr 8 °F; this period last yr 18 °F Mai thispudton With paymnnt, Please Uo not Include tatters u7 notes_ Account number Date dire Total amount due Amount paid CENTERPOINT ENERGY PO BOX 4671 HOUSTON TX 77210 -4671 111111111 Jill 1111111 Jill I1 11111111 111111111111111111,1 it, itI1111 00019714 01 AV o.378 1 9429450 -1 021291201 $ 2 THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT 505 WALNUT ST MONTICELLO, MN 55362 -8621 "• 11111u111111111111 11111111111i111 Jill .1111111111111111111111111 03800749797718 00720000094294SU 120[]C 0002792CC1[3i OU02792270 NORTHLAND STRATEGIES Special projects Group INVOICE SUPPLEMENT Client: City of Monticello Project: TIF District Management, TIP 39 Contact: Angela Schumann City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362 Billing Period: January 2014 Services Performed • TIF 39 modification development • TIF 39 prepaxe draft report for EDA • TIP 39 finalize draft report and amortization schedules TIF 39 subunit draft resolution calling for public hearing and notice • TIF 39 EDA meeting Staff Time Position Hou Rate Billable Senior Prnfessinnal 8.00 $160 $1,280.00 Professional - $135 $0.00 Support - $105 $0.00 Total Staff 8.00 $1,280.00 Expenses Mileage $0.00 Printing $0.00 Other _ $0.00 Total Expenses $0.00 Project Summary Total Budget* $ - Billed This Poriod ($1,2$0.00) Billed Previous $0.00 Budget Remaining $(1,280.00) "gitling on an hourly basis, Northland Securities, Inc. Page 2 of 2 EDA Agenda - 03/12/14 5. Consideration to adopt Resolution 2014 -024, adopting amendments to the bylaws of the Economic Development Authority. (AS) A. REFERENCE AND BACKGROUND: In February, the EDA directed staff to research with the EDA attorney questions raised by the Authority members on the bylaws document and on the EDA Enabling Resolution. Staff has consulted with Kennedy & Graven and has received the following information regarding questions. 1. As related to the HRA reference in the EDA Enabling Resolution, Section 6.03. "Enabling resolution: the references to the HRA are correct and should not be changed Section 6.03 is basically a backward - looking recital reassuring any party to an outstanding contract with the HRA, or any existing bondholder of an HRA bond, that transferring the HRA's powers to the EDA does not create any problems under those outstanding obligations (i.e. that the contracts and bonds are still valid and enforceable, even though the EDA has taken over for the HRA). " 2. As related to bylaws Section 5(3). "Bylaws: if the EDA does disburse funds by wire transfer or by credit card, those should be added to the bylaws as permissible forms of payment of EDAjunds. " Accordingly, the attorney has prepared a resolution for adoption of the proposed amendment to the bylaws. The bylaws included for reference show this most recent redline for amendment, as well as the changes made in the 2013 review, for reference. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2014 -024, adopting amendments to the bylaws of the Economic Development Authority. 2. Motion of other. C. STAFF RECOMMENDATION: Staff recommends alternative 1 above. D. SUPPORTING DATA: A. Resolution 2014 -024 B. Bylaws of the Economic Development Authority, proposed amendments C. Bylaws of the Economic Development Authority, February 13th, 2013 D. EDA Enabling Resolution CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2014-024 RESOLUTION APPROVING AMENDMENT OF BYLAWS WHEREAS, the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority ") has considered proposed amendments to its Bylaws; and WHEREAS, the Board has determined that it is reasonable, expedient and in the best interest of the public to amend the Bylaws of the Authority to authorize the payment of Authority funds by any method authorized by the Authority, including without limitation check, wire transfer, or credit card payments; and WHEREAS, Article VIII, Section 1 of the Bylaws provides for amendments to the Bylaws by majority vote of the Board at any regular or special meeting of the Authority. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: Resolution. The Authority's Bylaws are amended in the form attached to this The Board hereby approves the amended Bylaws. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 12th day of March, 2014. President ATTEST: Executive Director /Secretary BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.1081, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution ") and Section 2 -3 -1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota (the "Ordinance "). ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and 325599v36 MINI MIN190 -130 other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by eheek eny nv Authority - approved method, including without limitation check, wire transfer, or credit card, (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The > eea, mie Pe elepmea* Dir- e,. * shall be designated as Executive Director of the Authority. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole 2 325599v36 MINI MIN190 -130 custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution, the Ordinance, or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employees. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. 325599v36 MINI MIN190 -130 Section 3. Legal Services. The Authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing_ The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution and Section 2 -3 -4 of the Ordinance. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution and Section 2 -3 -5 of the Ordinance. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution or Ordinance, the Enabling Resolution and Ordinance shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: , 404-9 -2014. (Seal) 4 325599v36 MINI MIN190 -130 Signed: President Executive Director 325599v36 MINI MN190 -130 Document comparison by Workshare Professional on Monday, March 03, 2014 2:54:37 PM Input: Document 1 ID Powerpocs: //DOCSOPEN/325599/5 Description DOCSOPEN- #325599 -v5- Monticello EDA_bylaws Document 2 ID file: / /C: /Documents and Settings /mni /Application Data /OpenText /DM /Temp /DOCSOPEN- #325599 -v6- Monticello_EDA_bylaws.doc Description DOCSOPEN- #325599 -v6- Monticello EDA_bylaws Rendering set Istandard Legend: Format change 4eve a dell e Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 5 Deletions 5 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 1 10 BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority, The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authoritv. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.1081, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution ") and Section 2 -3 -1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota (the "Ordinance "). ARTICLE HI - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner, Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and 325599v5 MN1 MN190 -130 other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer; (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by check only; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Section 7. Public Money- Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator shall be designated as Executive Director of the Authority. Section t. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. 2 325599v5 MNI MN190 -130 Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Sl -vcial Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution, the Ordinance, or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employees. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Section 3. Legal Services. The Authority may use the services of the city attorney or 325599v5 MN MN190 -130 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing, The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. Cite Facilities. Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions. Powers and Duties. Shall be in accordance with the Enabling Resolution and Section 2 -3 -4 of the Ordinance. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution and Section 2 -3 -5 of the Ordinance. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution or Ordinance, the Enabling Resolution and Ordinance shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: April 10th, 2013. (Seal) Ll 325599v5 MNI MN190 -130 Signed: President five Director 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.O6. 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 EDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 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 FDA 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 FDA 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: Jeft,OXVII, City Administrator EDA Agenda - 03/12/14 6. Consideration to approve Resolution 2014 -025 Approving the Terms of a $800,000 Tax Increment Interfund Loan in Connection with Tax Increment Financing District No. 1 -22 within Central Monticello Redevelopment Proiect No. 1. (AS/WO /Northland) A. REFERENCE AND BACKGROUND: The EDA is asked to review for approval a resolution relating to an interfund loan in connection with TIF District 1 -22. As noted in the memo prepared by Northland Securities, the resolution will allow the EDA to capitalize on the estimated cash flow of future tax increment funds available under pooling authority and tax increment not derived from property in TIF District 1 -22. The resolution would authorize an interfund loan to TIF District 1 -22 from the EDA General Fund. The amount of the interfund loan will equal the total estimated amount of future tax increment available for project costs in TIF 1 -22. This amount is estimated at $797,755. Repayment of the interfund loan is proposed to be made from available tax increment generated within TIF 1 -22. The memo prepared by Northland Securities also provides further background on the purpose for the proposed action, the status of TIF 1 -22 funding, and the requirements for return of increment to Wright County under the statutes associated with pooling limitations for tax increment financing districts. B. ALTERNATIVE ACTIONS: Motion to adopt Resolution 2014 -025, approving the Terms of a $800,000 Tax Increment Interfund Loan in Connection with Tax Increment Financing District No. 1 -22 within Central Monticello Redevelopment Project No. 1. 2. Motion of other. C. STAFF RECOMMENDATION: Staff recommends alternative 1 above. This action is necessary to allow the EDA to utilize the available pooled increment expected to be generated over the life of TIF District 1 -22, and to comply with statutes which govern the use of tax increment. D. SUPPORTING DATA: A. Resolution 2014 -025 B. Northland Securities Memo, RE: TIF 1 -22, dated March 3rd, 2014 C. TIF Management Plan, TIF 1 -22 C➢TY OF MONTICELLO ECONOMRC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2014-025 RESOLUTION APPROVING THE TERMS OF A $800,000 TAX INCREMENT INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-22 WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 WHEREAS, pursuant to Minnesota Statutes, Sections 469.090 through 469.108, the Monticello Economic Development Authority (the "Authority") has been established and is authorized to exercise economic development powers; WHEREAS, the Authority hereby determines to pay for certain project costs, including administrative costs, incurred by the City and Authority as authorized in the TIF Plan for the Tax Increment Financing District No. 1-22 (the "TIF District") consisting of acquisition of real property, relocation costs, architectural, engineering, legal and financial services and related expenses to implement the TIF Plan for the TIF District (collectively, the "Costs"), which Costs will be financed on a temporary basis from the Authority's general fund (the "General Fund"); WHEREAS, the Authority, pursuant to Minnesota Statutes, Section 469.174 through 469.1794 (the "TIF Act"), under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from the General Fund or any other fund from which such advances may be legally made in order to finance the Costs; and WHEREAS, the Authority intends to reimburse itself for the Costs from the portion of the proceeds of tax increments derived from property within the TIF District and from tax increment from the TIF District not derived from property within the TIF District, pursuant to Minnesota Statutes, Section 469.173, and in accordance with the terms of this resolution (which terms are referred to collectively as the "TIF Loan") and the proposed TIF Plan. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Monticello Economic Development Authority as follows: 1. Interfund Loan. The Authority has determined to pay for certain costs (the "Qualified Costs") identified in the TIF Plan consisting of certain administrative expenses and costs of the Project, which costs will be financed on a temporary basis from the Authority's General Fund, the Authority's operating budget or any other fund from which such advances may be legally made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance or loan money from the Fund in order to finance the Qualified Costs. The Authority intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the following terms (which terms are referred to collectively as the "Interfund Loan"): (a) The Authority shall repay to the Fund from which the Qualified Costs are initially paid, the principal amount of $800,000 (or, if less, the amount actually paid from such fund) together with interest at 4.00% per annum (which is not more than the greater of (i) the rate specified under Minnesota Statutes, Section 270.75, or (ii) the rate specified under Minnesota Statutes, Section 549.09) from the date of the payment(s). There may be multiple repayment schedules if all $800,000 is not spent at one time. Qualified Costs shall be documented as to principal amount and date of the payment(s). (b) Principal and interest on the Interfund Loan ("Payments") shall be paid semi-annually on each June 20 and December 20 commencing with the first June 20 or December 20 occurring after the date the tax increments from the TIF District are available and not otherwise pledged to and including the earlier of (a) the date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date of last receipt of tax increment from the proposed TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of Available Tax Increment as hereinafter defined. Payments shall be applied first to accrued interest, and then to unpaid principal. (c) Payments on the Interfund Loan are payable solely from "Available Tax Increments which shall mean, on each Payment Date, an amount not exceeding 25 percent of the tax increment generated in the preceding six (6) months with respect to the Property within the TIF District, including tax increment remitted to the Authority by Wright County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794. Payments on this Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. (d) The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal 2 amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination of the proposed TIF District. (f) The Authority may amend the terms of the Interfund Loan at any time by resolution of the Authority, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 12th day of March, 2014. President ATTEST: Executive Director/Secretary EXTRACT OF MINUTES OF A MEETING OF THE CITY OF MONTICELLO ECONOMIC DVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA HELD: March 12, 2014 Pursuant to due call and notice thereof, a regular meeting of the City of Monticello Economic Development Authority, Wright County, Minnesota, was duly held at the Monticello City Hall on Wednesday, the 12th day of March, 2014 at 6:00 p.m. for the purpose, in part, of approving the terms of a tax increment loan in connection with Tax Increment Financing District No. 1-22. The following Commissioners were present: and the following were absent: Commissioner moved its adoption: introduced the following resolution and The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 0 CERTIFICATION STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) I, the undersigned, being the duly qualified and Executive Director/Secretary of the City of Monticello Economic Development Authority, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the Board of Commissioners of the City of Monticello Economic Development Authority, duly called and held, as such minutes relate to the approving the terms of a tax increment loan in connection with Tax Increment Financing District No. 1-22. WITNESS my hand as such Executive Director/Secretary of the City of Monticello Economic Development Authority this 12th day of March, 2014. Executive Director/Secretary 5 NORTHLAND STRATEGIES Special Projects Group ►I ►I NTIMI UTIff] ►I To: Angela Schumann, Community Development Director Wayne Oberg, Finance Director From: Tammy Omdal Date: March 3, 2014 Re: Tax Increment Financing (TIF) District No. 1 -22 The purpose of this memorandum is to provide information concerning the on -going management of TIF District No. 1 -22 (the "District "). Northland has completed a review of preliminary (unaudited) 2013 expenditures and revenues for the District and a review of the 2012 TIF Report for the District prepared and submitted by the City to the State Auditor's Office. The purpose of the analysis was to address the following three items and offer conclusions: 1. Determine the estimated amount of funds that will be available from the District to be spent on project costs within the boundaries of the Central Monticello Redevelopment Project. - Based on current estimates for revenue and expenditures, including administrative costs, the District is estimated to generate an additional $797,755 in tax increment revenue that will be available to be spent on eligible (new) project costs within the boundaries of the Redevelopment Project. The source of funds will come from tax increment available under pooling authority (limited to 25% of tax increment) and from tax increment not derived from property (i.e., lease revenue, land sale proceeds, interest income, etc.). 2. Identify actions required by the EDA to provide the authority for the expenditure of funds on project costs. - In order to capitalize the estimated cash flow of future tax increment funds (available under pooling authority and tax increment not derived from property), the EDA will need to authorize an interfund loan to the District. The par amount of the interfund loan will equal the estimated amount of future tax increment available for project costs, which is estimated at $797,755. Repayment of the interfund loan will be made semi - annually from available tax increment. Northland Securities, Inc. 45 South 7th Street, Suite 2000, Minneapolis, MN 55402 Toll Free 1- 200 - 851 -2920 Main 612 -851 -5900 www.northlandsecurities.com Member FINRA and SIPC Tax Increment Financing March 3, 2014 Page 2 3. Identify amount and timing of return of excess tax increment to the County for redistribution to the local taxing jurisdictions (city, county, school district). - As previously estimated, the District will generate excess tax increment that will need to be returned to the County for redistribution. Over the life of the district the estimated amount of excess tax increment to be returned is approximately $2,364,000. This amount assumes the EDA acts to pool an estimated approximate $340,000 of future tax increment to pay for qualified housing project costs versus returning the funds as excess increment. If the EDA does not take future actions to authorize pooling for qualified housing project costs, then the annual increment that otherwise could be pooled for housing purposes will need to be returned to the County as excess tax increment. In compliance with the statute that governs the use of tax increment, each year the EDA must calculate the amount of excess tax increment and return the balance to the County. The balance of excess increment is not available to be spent or to provide a source of temporary cash flow for project costs. The EDA must return excess increment within nine months after the end of the year. Explanation of TI F Fund Balance As shown in Table A on the next page, based on preliminary 2013 (unaudited) revenues and expenditures reported for the District, the City reports an estimated fund balance for the District as of December 31, 2013 of $624,252. The majority of the year end 2013 fund balance, or $595,959, is not available for expenditure and will need to be returned to the County in 2014 as excess tax increment for redistribution to the local taxing jurisdictions. There is an estimated $28,294 of increment available to the EDA within the District for future (new) project spending at the end of 2013. The total amount of estimated tax increment to be generated and available for project costs, generated between years 2014 and 2024, is the $797,755. The source of funds comes from estimated future pooled tax increment and tax increment not derived from property. The EDA may act to capitalize the future flow of these funds through the authorization of an interfund loan to the District. Interfund TIF Loan An interfund loan resolution has been prepared for consideration by the EDA. The resolution will allow for the payment of project costs, up to a maximum principal amount of $800,000 (or, if less, the amount actually paid for project costs) to be financed on a temporary basis from the EDA's General Fund, EDA operating budget or any other fund from which such advances may be legally made. The EDA will reimburse itself for the payment of project costs, plus interest thereon, from available tax increment from the District. The repayment of the loan is limited to the actual amount of tax increment that is generated and available for repayment of the loan plus interest. Restrictions on pooling and the five -year and sixth -year rules in the statutes governing the use of tax increments limit the amount of tax increment available for repayment of the proposed interfund loan to 25 percent (or less, if other in- district expenditures are greater) of the total semi - annual revenue derived from tax increments paid by properties in the district. Tax Increment Financing March 3, 2014 Page 3 TABLE A Tax Increment Financing District No. 1 -22 Source and Use of Funds and Ending TIF Fund Balance Estimated Restated Prior Estimated Total Life of Years (As of Year 2013 Years 2014 District, as of End 201 1) 2012 (Unaudited) through 2024 Year End 2024 TIF revenue $5,155,479 $458,232 $357,790 $3,894,264 $9,865,765 Less use of funds (including administration costs) $3,283,708 $1,583,103 $437,875 $850,318 $6,155,004 Less return of excess increment to County $42,563 $0 $2,322,194 $2,364,757 Net source of funds $1,871,771 ($1,167,434) ($80,085) $721,752 $1,346,004 Beginning Fund Balance $0 $1,871,771 $704,337 $624,252 $0 Increase (decrease) in fund balance $1,871,771 ($1,167,434) ($80,085) $721,752 $1,346,004 Ending TIF Fund Balance $1,871,771 $704,337 $624,252 $1,346,004 $1,346,004 Explanation of Ending TIF Fund Balance: Excess to be returned to County for redistribution $182,548 $401,416 $595,959 $207,598 $207,598 Available for housing, if so approved by EDA $0 $0 $0 $340,652 $340,652 Subtotal of Excess Increment $182,548 $401,416 $595,959 $548,250 $548,250 Available under 25% pooling limitation $371,007 $293,384 $1,618 $623,987 $623,987 Available TIF not derived from property $1,318,216 $9,538 $26,676 $173,768 $173,768 Subtotal of Increment Available for Project Spending $1,689,223 $302,922 $28,294 $797,755 $797,755 Total Ending TIF Fund Balance $1,871,771 $704,337 $624,252 $1,346,004 $1,346,004 Notes: The City made adjustments to prior year reported revenue and expenses to remove non -tax increment revenues and expenditures that were previously accounted for in TIF District No. 1-22. The revenue and expenses were reclassified to the EDA General Fund. The net adjustment to year end 2011 fund balance for TIF District No. 1 -22 is as follows: Year End 2011 TIF Fund Balance for TIF District No. 1 -22, as originally reported to the EDA at end of FY 2011 $2,977,512 Adjustment to revenues (includes $2,150,000 restatement of bond proceeds)' ($3,255,741) Adjustment to expenses (for bond principal payments) ($2,150,000) Net Total Adj ustment2 ($1,105,741) Restated Year End 2011 TIF Fund Balance $1,871,771 ' This does not include anytax increment revenue derived from property or tax increment derived from other sources. 2 TIF District No. 1 -22 fund balance decreased bythis amount and the EDA General Fund fund balance increased by this amount. i 1 TIF Analysis and Management Plan Scenarios For T1 District No. 1 -22 Monticello Economic Development Authority December 12, 2012 NORTHLAND STRATEGIES Special Projects Group Contents Introduction and Executive Summary Introduction.................................................................................................................. ............................... 1 ExecutiveSummary .................................................................................................... ............................... 1 NextSteps ...................................................................................................................... ............................... 3 Table A - Comparison of Possible Scenarios for Different Decisions on Use of TIF ............4 Regulatory Framework and Statutory Factors 5 RegulatoryFramework .............................................................................................. ..............................5 StatutoryFactors ......................................................................................................... ............................... 5 Administrative Expense ............................................................................ ..............................5 4 -Year Knock -Down ................................................................................... ..............................5 Pooling......................................................................................................... ............................... 6 FiveYear Rule .............................................................................................. ............................... 6 Decertification............................................................................................ ............................... 7 ExpandedTax Base ..................................................................................................... ............................... 7 District Summary and Potential Scenarios for Use of TIF 8 DistrictSummary ......................................................................................................... ..............................8 ScenarioA ...................................................................................................................... .............................11 ScenarioB ...................................................................................................................... .............................13 ScenarioC ...................................................................................................................... .............................15 INTRODUCTION This report serves as a follow -up report to the 2012 TIF Management Report adopted by the Economic Devel- opment Authority (EDA) on June 20, 2012 and the City Council on July 9, 2012. This report addresses man- agement strategies that are specific to the Downtown TIF District No. 1 -22 ( "TIF22 "). TIF22 is the largest and most complex district in Mon- ticello. The geographic area of the District is an impor- tant redevelopment focus area in the City's Compre- hensive Plan. Opportunity exists to use tax increment from this district to facilitate project development, with certain limitations. The Five -Year Rule in the TIF Act limits the ability of the EDA to use all of the tax increment that otherwise would be available. The 2012 TIF Management Report recommended the following additional investigation for TIF22: 1. Verify 4 -year knock -down status of parcels. 2. Analyze pooling capacity. 3. Analyze District revenues. 4. Identify Key Investments. This report addresses items 1 through 3 and provides information needed by the EDA to proceed with iden- tification of key investments that it may decide to fund with available tax increment from TIF22. The investigations undertaken for this report did not include a review of tax increments previously paid to the City for the community center area redevelop- ment costs. This was mentioned in the 2012 TIF Man- agement Report as a management strategy to be ad- dressed. City is reviewing and may address this item separately with the EDA. EXECUTIVE SUMMARY Knock -Down Status Evidence of Qualifying Activities With limited exception, the analysis shows the EDA is in compliance with the 4 -year knock -down rule. (Explanation of the rule can be found on page 5.) The knock -down date for TIF22 is June 30, 2001. The analysis shows the existing tax increment balance in TIF22 includes approximately $42,000 of increment (which is about 1% of the total tax increment balance) that should be returned to Wright County in compli- ance with the knock -down rule. The City received one additional year (paid in 2002) of tax increment on parcels that did not have certain qualifying activities occur within four years of the certification date of the district. These parcels should have been removed one year earlier than they were. The City of Monticello will receive approximately $17,300 of the $42,000 back through redistribution of the increment as General Fund tax revenue. Reinstatement of Parcels with Activity Parcel analysis shows the EDA has an opportunity to reinstate parcels previously removed from the district. Parcels that had qualifying activities occur after the ini- tial knock -down date of June 30, 2001 are eligible to be reinstated. However, the value of reinstating parcels is limited unless the parcels to be reinstated will have future development to generate tax increment. The law requires that parcels be reinstated at their current value not the value that existed at the time of original certification. Use of tax increment derived from these parcels is limited by the five -year rule and pooling re- strictions. Introduction and Executive Summary 1 Pooling Capacity There is existing tax increment derived from prop- erty within TIF22 that may be spent under pooling authority (see Table A on page 4 for dollar amounts). The EDA may pool up to 25% of the tax increment de- rived from property within the district (over the life of the district). Administrative expenditures must be in- cluded in the 25% limit. Expenditures must be within the Redevelopment Project Area No. 1. The EDA may increase the limit on Pooling by 10% for the purpose of Housing. There are conditions on the use of the ad- ditional pooling for housing that must be met. North- land has provided the EDA with a separate memoran- dum on the authority for pooling for housing. Estimates for future tax increment available for Pool- ing depends on which parcels the EDA decides to keep within TIF22. The EDA has options to remove parcels which are no longer needed to meet obligations. In addition to having a choice on which parcels to retain within the TIF district, the EDA also has the option to reinstate certain qualified parcels that were previously removed that could provide additional tax increment if future development occurs on an undeveloped parcel. Only the revenues derived from tax increments paid by the properties in the TIF district are subject to pooling restrictions and the five -year rule. Proceeds from other revenue such as the sale or lease of property purchased with tax increments, principal and interest received on loans or advances made with tax increments, invest- ment earnings on or from tax increments, repayments to an authority, and market value homestead credit paid to the authority are not subject to the restrictions, even though they are all tax increments. The City has unspent tax increment revenue that was not de- rived from property that is available to be spent on eligible project costs. If the tax increment revenue it is not spent on eligible project costs it will need to be returned to the County as excess tax increment. District Revenues Three different scenarios are presented in the report to provide a framework for the different choices the EDA has with respect to existing and future district revenues. The scenarios are intended to illustrate impact and do not represent the only scenarios. Ulti- mate decisions made by the EDA may represent slight variations of the scenarios shown in the report. The scenarios include projections on future revenues and expenditures. The EDA's decisions on spending of tax increment and selection of parcels to remain in the district has impli- cations to the City's General Fund and to the City's general tax base. Advance removal of parcels from TIF22 (in advance of the 2024 decertification date) will increase the City's general tax base sooner than anticipated. And, a decision to return unspent tax in- crement to the County will provide cash to the City's General Fund. (Excess tax increment is redistributed to the local taxing jurisdictions based on relative share of the tax rate.) The three scenarios presented for use of district rev- enues are as follows: • Scenario A - assumes the EDA acts to retain all cur- rent 58 parcels within TIF22 for the remaining life of the district in order to maximize available tax in- crement to be spent under pooling authority. This scenario provides the greatest amount of resources for development projects. Introduction and Executive Summary 6 • Scenario B - assumes the EDA acts to remove all but three parcels from TIF22 and to therefore limit but still proceed with spending a reduced amount of tax increment under pooling authority. This scenario provides additional resources for devel- opment projects but less than under Scenario A. • Scenario C - is similar to Scenario B in that it as- sumes the EDA acts to remove all but three parcels from TIF22. However, under Scenario C the EDA would not spend increment under pooling author- ity. Unspent tax increment would be returned to the County for redistribution to the local taxing ju- risdictions earlier (possibly as soon as 2013) than under the other two scenarios. Scenario C pro- vides the greatest amount of return of tax incre- ment to the local taxing jurisdictions. The portion of tax increment revenue collected that cannot be used to pay for existing obligations or spent under pooling will need to be declared as excess tax increment and returned to Wright County. The tim- ing of the return of the excess tax increment may be at the end of the district in 2024, or sooner, depending on decisions made about the use of tax increment funds and the timing of expenditures. The City will receive its proportionate share of any tax increment revenue back through redistribution based on the City's re- spective share of the local tax capacity rate. NEXT STEPS The next steps for the EDA to consider for use of dis- trict revenues for TIF22 are as follows: 1. Determine if reason to collect future tax increment. • Which specific projects might the EDA fund with pooled tax increment and what is the cost of these projects? 2. Determine if any parcels should be reinstated. • For what purpose will tax increment gener- ated from the reinstatement of parcels (assum- ing future development were to occur on these parcels) be used? 3. Determine if "usable' funds should be retained or redistributed to the local taxing jurisdictions. • How might the City benefit overall from receiv- ing (one -time) redistributed tax dollars into the City's General Fund and the earlier than antici- pated increase in general tax base (from the re- moval of parcels presently within TIF22)? 4. Make spending plan for usable funds (current and future) and (if needed) modify TIF Plan. 5. As needed, act to decertify parcels. 6. Determine funds for redistribution. Introduction and Executive Summary 3 Introduction and TABLE A Executive Summary Comparison of Possible Scenarios for Different Decisions on Use of TIF from TIF District No. 1-22 Dollar Figures Shown are Estimated Total Life of District Scenario A Scenario B Scenario C Retain All Retain Three $0 Parcels Within Parcels Within Retain Three District, District, Parcels Within Authorize Authorize District, No Pooling Pooling Pooling Source of Funds (not including bond proceeds) Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Total Use of Funds (Spent /Committed and Available for New Projects) Increment spent /committed Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Return of excess tax increment to County Total Estimated City Portion of Excess Tax Increment Returned for Distribution* * timing of receipt of funds varies across scenarios $7,359,289 $2,155,538 $9,514,827 $4,207,161 $2,099,181 $6,306,343 $4,207,161 $1,884,558 $6,091,719 $2,824,492 $2,824,492 $2,824,492 $3,463,136 $2,618,748 $0 $735,929 $420,716 $0 $2,491,270 $442,386 $3,267,227 $9,514,827 $6,306,342 $6,091,719 $996,508 $176,954 $1,306,891 For a year by year review of estimated increment available for "new" redevelopment projects (including administrative expense) and increment available for °new° housing projects (income qualified) see the "District Summary and Poten- tial Scenarios for Use of TIF' Section of the report. Scenario A is shown on page 12 Scenario B is shown on page 14 Scenario C is shown on page 16 4 Regulatory Framework Tax increment financing is governed by a complex set of statutes that have changed over time. An important nuance of TIF is the relevance of the laws in existence at the time the district was established. These laws es- tablish the majority of critical criteria for the use of tax increment from TIF22. Most aspects for the on -going use of tax increments from the district are governed by the statutes in effect when the district was established. Among these factors are: • Ability to spend money outside of the TIF district (pooling authority). • Application of the 5 -year rule. • Limitations on administrative expense. Within statutory constraints, the parameters for the use of tax increment financing are set in the TIF plan. Tax increments cannot be used for purposes not au- thorized in the plan. The amount of spending cannot exceed the estimated project costs contained in the plan. The City cannot incur bonded indebtedness un- less so authorized by the plan and the amount of debt cannot exceed limits set in the plan. The plan also sets the maximum period of time the City can collect tax increment from the district. Direct reference to the actual TIF plan for TIF22 should be made before mak- ing changes or authorizing new uses of tax increment from any district. Statutory Factors Several elements of State Law are particularly relevant to the ongoing management of TIF22. Administrative Expense Based on the request for certification date for TIF22, June 25, 1997, the limitation on administrative expens- es is that administrative expense cannot exceed 10% of the lesser of the total estimated tax increment ex- penditures authorized by the TIF plan or 10% of the total tax increments for the project. Increments used to pay county administrative expense are not subject to the 10% limit on administrative expense (2009 amend- ment to the TIF Act). 4 -Year Knock -Down The current listing of the 58 parcels in TIF22 (pay 2012) does not match the original list of 231 certified parcels in the TIF Plan. Parcels have been removed /added through a combination of the "knock down rule" and changes in platting. State law requires certain activi- ties to occur on each parcel in the TIF district within four years of certification. These activities are: • Demolition, rehabilitation, or renovation of prop- erty. • Qualified improvement of a street adjacent to a parcel but not installation of utility service includ- ing sewer or water systems. • Other site preparation. The value of parcels that failed this test have been removed from the tax increment calculations for the district. State Law required that the EDA needed to provide the County with evidence related to qualify- ing activity on each parcel by February 1 of the year following end of the knock down period, which was February 1, 2002 for TIF22. It is important to note that the parcels are not removed from the district. Parcels that are knocked down can be restored to the district when the EDA certifies to the County Auditor that qualifying activity has com- Regulatory Framework and Statutory Factors 61 menced. The value that is restored to the original tax capacity is the most recent tax capacity value of the parcel. The table below provides a summary of the changes in parcels within TIF22 from original certification to today (pay 2012). Pooling Pooling is the ability to spend tax increments outside of the TIF district. Limits on pooling were adopted by the Legislature in 1990 and apply to districts request- ing certification after May 1, 1988. TIF22 is a redevelopment district and is subject to a 25% limitation. The pooling limit is calculated based on total tax increment revenue derived from property within the district. Administrative expense applies to this restriction. The amount that can be spent outside of the TIF district is net of administrative expense. Timing is an important factor in evaluating the poten- tial for expenditures outside of the TIF district. The opportunity for pooling exists only while there are ob- ligations to be paid from tax increments (see Five Year Rule below). Once all obligations have been paid, the district must be decertified. The statutory pooling restrictions applicable to TIF22, allow for an increase by up to 10% in the out of dis- trict expenditures to provide assistance for qualified low- income housing. State Law sets forth the criteria for determining if housing qualifies for this assistance. The TIF plan must authorize the expenditures. Five Year Rule The five -year rule is one of the most important TIF management limitations. TIF22 is subject to the Five Year Rule. In simple terms, the EDA had five years from the date of certification to spend or obligate tax increments. After this time period passes tax incre- ments can only be spent on prior obligations, on ad- ministrative expense, or on authorized expenditures that comply with pooling restrictions. The pooling restrictions apply regardless of whether the tax incre- ments are spent inside or outside of the TIF district. To avoid restriction under the five -year rule, one of the following actions needed to take place within five years of certification of the district: 1. Revenues are actually paid to a third party with respect to the activity. 2. Bonds used to finance eligible activities are issued and sold to a third party. The proceeds of the bonds must be reasonably expected to be spent before the end of the later of (i) the five -year period, or (ii) a reasonable temporary period within the meaning Regulatory Framework and Statutory Factors M Parcels Added Parcels Removed Cumulative Parcels Remaining Original parcels certified 613011F 231 231 Parcels requested for removal by City 111612003 (x8 45 Parcel adjusted by County (i.e, replats and her changes) h (15) 56 Parcels requested for add back by City 21812003 3 59 Parcels requested for add bac0emoval by City 811212003 3 (2) @ Parcels requested for removal by city 1212112010 (2) 58 Pooling Pooling is the ability to spend tax increments outside of the TIF district. Limits on pooling were adopted by the Legislature in 1990 and apply to districts request- ing certification after May 1, 1988. TIF22 is a redevelopment district and is subject to a 25% limitation. The pooling limit is calculated based on total tax increment revenue derived from property within the district. Administrative expense applies to this restriction. The amount that can be spent outside of the TIF district is net of administrative expense. Timing is an important factor in evaluating the poten- tial for expenditures outside of the TIF district. The opportunity for pooling exists only while there are ob- ligations to be paid from tax increments (see Five Year Rule below). Once all obligations have been paid, the district must be decertified. The statutory pooling restrictions applicable to TIF22, allow for an increase by up to 10% in the out of dis- trict expenditures to provide assistance for qualified low- income housing. State Law sets forth the criteria for determining if housing qualifies for this assistance. The TIF plan must authorize the expenditures. Five Year Rule The five -year rule is one of the most important TIF management limitations. TIF22 is subject to the Five Year Rule. In simple terms, the EDA had five years from the date of certification to spend or obligate tax increments. After this time period passes tax incre- ments can only be spent on prior obligations, on ad- ministrative expense, or on authorized expenditures that comply with pooling restrictions. The pooling restrictions apply regardless of whether the tax incre- ments are spent inside or outside of the TIF district. To avoid restriction under the five -year rule, one of the following actions needed to take place within five years of certification of the district: 1. Revenues are actually paid to a third party with respect to the activity. 2. Bonds used to finance eligible activities are issued and sold to a third party. The proceeds of the bonds must be reasonably expected to be spent before the end of the later of (i) the five -year period, or (ii) a reasonable temporary period within the meaning Regulatory Framework and Statutory Factors M 3. Q of the use of that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund. Binding contracts with a third party are entered into for performance of the activity before or with- in five years after certification of the district and the revenues are spent under the contractual obli- gation. Costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs, including interest on unreim- bursed costs. 5. Expenditures are for special housing and infra- structure purposes authorized by State Law. Decertification The evolution of State Law governing TIF has in- creased the incentive to decertify districts at the earli- est opportunity. The factors that influence the decerti- fication decision include: • The five -year rule and pooling limits restrict the ability to use uncommitted tax increments to sup- port other endeavors. • The value of decertified TIF districts becomes available for general taxation. The result is a lower tax rate. • Excess tax increments are sent to the County for redistribution to taxing jurisdictions. Expanded Tax Base The early removal of developed parcels from the TIF district will not only allow the City to benefit from the redistribution of excess funds, it will also add to the local tax base. The tax capacity value captured by the TIF district becomes available for general taxation. The removal of parcels described in this report (under Scenarios B and C) will add approximately $200,000 in tax capacity to the City's general tax base. At the City tax rate for pay 2012, this value is equivalent to about $95,000 in annual property tax revenue to the City. Regulatory Framework and Statutory Factors 7 The Downtown TIF District (1 -22) is the largest and City Number ...................................................................... ...........................1 -22 most complex district in Monticello. This district County Number ................................ ............................... ............................622 provides an excellent illustration of the challenges of Name ............................ ............................... .......................Downtown District implementing a large TIF district subject to the con - Type.......................................................... ............................... Redevelopment straints of the five -year rule. Established...................................... ............................... ........................3 /10/97 The five -year rule time period has ended. Fund bal- Certification Requested ............. ............................... ........................6 /25/97 ance may only be spent on the following activities: Certified ........................................... ............................... ........................6 /30/97 • Existing Obligations Year of First Increment ................... ............................... ...........................1999 4 -Year Knockdown ....................... ............................... ........................6 /30/01 • Administrative expense 5 -Year Rule ...................................... ............................... ........................6 /30/02 • Development activities authorized in the TIF Decertification ............................. ............................... .......................12 /31/24 plan and within the pooling restrictions. Original Tax Rate .......................... ............................... .....................112.618% Tax increments from District 1 -22 is pledged to pay- Original Tax Capacity Value ....... ............................... ........................157,311 ment of bonds. The pledge of increment to the G.O. Current Base Tax capacity value ............................ ........................178,814 Tax Increment Bonds, Series 2004A, ended in 2010 Current (Pay 2012) Tax Capacity ............................. ........................458,208 when the bonds were called and prepaid in full. (This Parcels (Pay 2012) .............................................................. .............................58 issue was a current refunding Of the Original $2,150,000 155- 010 - 002011 155- 010 - 036130 155- 010 - 005010 G.O. Temporary Tax Increment Bonds, Series 2001.) 155- 010 - 005090 155- 010 - 051060 155- 010 - 006040 In addition to the prior pledge to the now retired 2004 155- 010- 051100 155- 010- 007020 155- 010- 052010 bonds, tax increment from District 1 -22 is pledged to 155- 010 - 011030 155- 010 - 052060 155- 010 - 011040 the payment Of two developer notes. 155- 010 - 052110 155- 010 - 014050 155- 010 - 053130 155- 010 - 016070 155- 010 - 054030 155- 010 - 016090 1. The development agreement with Master Fifth 155- 010 - 069080 155- 010 - 016100 155- 040 - 002100 Avenue, Inc. provides for a note in the amount Of 155- 010 - 017030 155- 076 - 001010 155- 010 - 017060 $185,000 (shown as 22.5 Amoco in projections). 155- 137 - 000100 155- 010 - 018060 155- 137 - 000200 The note is payable with tax increments from 155- 010 - 018080 155- 137 - 000300 155- 010 - 020010 parcels 155 - 010 - 036130 and 155 - 010 - 036140. The 155- 137 - 000400 155- 010 - 020030 155- 137 - 000500 note has an Outstanding balance Of $184,816 as Of 155- 010 - 032020 155- 137 - 000600 155- 010 - 033011 12/31/2011. The note does not accrue interest. The 155- 137 - 000700 155- 010 - 034060 155- 144 - 000010 note is set to terminate no later than 2/1/2023. 155- 010 - 034130 155- 144 - 001020 155- 010 - 034150 2. The development agreement with BBF Properties, 155- 144 - 001030 155- 010 - 035060 155- 144 - 001040 Inc. provides for a note in the amount Of $500,000. 155- 010 - 035120 155- 144 - 001050 155- 010 - 035130 The total principal On the note has grown to 155- 144 - 001060 155- 010 - 036040 155- 144 - 001070 $1,047,919 with the accrual Of unpaid interest, as 155- 010 - 036061 155- 144 - 001080 155- 010 - 036110 155- 144 - 001090 155- 010 - 036111 155- 010 - 036140 District Summary and Potential Scenarios for Use of TIF District 1 -22 (Downtown) Redevelopment C`7 of 12/31/2011 (shown as 22.1 Cub in projections). The note is payable with tax increments from par - cel 155- 076 - 001010. The note is set to terminate no later than 2/1/2020. Tax increment from District 1 -22 was pledged to pay for up to $281,250 in redevelopment costs related to the construction of the Community Center. The EDA (HRA) agreed to pay the City $5,625 semi - annually be- ginning August 1, 2000. The status of the payments is under review by the City to confirm the amount of the outstanding obligation, if any. Actions Taken Since 2009 Outstanding bonds from Series 2004A were called and paid in full in 2010. The City requested guidance from Kennedy & Grav- en (memo dated February 2, 2010) and Ehlers (memo Dated July 5, 2011) on options for use of funds from TIF District 1 -22. The City adopted a spending plan that allows for the temporary expansion of spending authority for Dis- trict 1 -22, as granted by MN Statute 469.176, SubdAm. The spending plan provides authority to use TIF from this District for the purpose of stimulating construc- tion. Construction must commence before July 1, 2012 and the TIF must be spent by December 31, 2012. Ab- sent the temporary flexibility offered by this authority, the EDA would have been required to remove all but three (3) parcels from TIF District 1 -22 after the out- standing obligation for the 2004 Bonds was satisfied in 2010. Administrative Tasks The task of reviewing expenditure transactions that occurred under temporary pooling authority and as authorized by the spending plan adopted by the EDA were completed by city staff. The results of this review did not cause the projected fund balance amounts to vary from what was shown in the adopted 2012 TIF Management Report. Management Strategies District 1 -22 poses a significant management challenge. The area within the District is an important redevelop- ment focus area in the Comprehensive Plan. An exist- ing TIF district and the fund balance in the district cre- ate financial tools needed to facilitate redevelopment projects. However, the five -year rule limits the options and ability of the EDA to use these resources. Temporary Pooling Authority The temporary pooling authority provided by the Leg- islature in the Jobs Bill provided a short term window to access the available fund balance for offering assis- tance to project that would otherwise not qualify for use of funds from District 1 -22. In 2009, the EDA acted to approve a spending plan under the temporary pool- ing authority to assist with development (Walgreens). Additional Investigations As recommended in the adopted 2012 TIF Manage- ment Report for this District, several additional inves- tigations have been completed. 1. Verify knockdown status of parcels. Over the life of this District, parcels have been removed under the knockdown provisions of State Law. The City has evidence that the parcels that remain in the district met the 4 -year knock -down rule. In plan- ning for the future of funds available within TIF22, the analysis completed confirms that the tax capac- ity calculations are based on the correct parcels. District Summary and Potential Scenarios for Use of TIF District Summary and 2. Anal)�ze pooling capacity. The analysis completed Potential Scenarios for provides information on the ability to make expen- Use of TI F ditures within the pooling limits to evaluate future options for TIF22. The analysis required two pieces of information: (1) total estimated administrative expense over the life of the district and (2) total es- timated tax increment revenue derived from prop- erty and tax increment revenue "not" derived from property over the life of the district. The analysis also considered the ability to increase the pooling amount for housing purposes. 3. Analyze District revenues. All prior revenues col- lected in TIF22 were reviewed in order to deter- mine if any funds are not "tax increments ". The analysis did not identify any such monies. The statutory definition of tax increment includes the actual tax revenues derived from property and other funds that are derived from the tax incre- ments (i.e., interest income). 4. Identify Key Investments. This is work that the EDA will need to undertake. Analysis shows that the TIF22 has the legal and financial capacity to continue to undertake development activities in the Downtown area should the EDA to determine it wants to do so. The alternative would be to re- turn the tax increment as excess to the County for redistribution to the local taxing jurisdictions. Satisfy Commitment to Community Center The investigations conducted did not include a review of tax increments previously paid to the City for com- munity center area redevelopment costs. Existing fund balance should be used to pay the remaining amount (estimate to be about $10,000), if there is in fact an out- standing balance. The City will perform this analysis. 10 SCENARIO A Scenario A assumes the EDA acts to retain all current 58 parcels within TIF22 and acts to maximize avail- able increment for Pooling. This scenario provides the greatest amount of resources for future development projects. It also requires that TIF22 remain in existence the full duration of the district, until year 2024, in or- der to leverage future tax increments and maximize the amount of revenue expended under pooling au- thority in earlier years. It is not assumed under Scenario A that parcels previ- ously removed from the district are reinstated. The reinstatement of parcels will only provide additional tax increment if development occurs on these parcels after reinstatement to the district. Key items to consider with proceeding under Scenario A are as follows: • The amount of future tax increment to be collect- ed and the ability to spend pooled tax increment in earlier years on development projects is maxi- mized. • The City will not realize an immediate benefit from an increase in general tax base that would other- wise result from early removal of 55 of the cur- rent 58 parcels from the district. The approximate $200,000 in tax capacity of the 55 parcels that could be removed represents the equivalent of about $95,000 in annual tax revenue to the City (based on pay 2012 property tax rate). The City will realize an increase in general tax base in the future when TIF22 is decertified. • City receipt of excess tax increment (one -time money) may not be realized until the end of the district, which is year 2024. District Summary and Potential Scenarios for Use ofTIF 11 District Summary and Cityof Monticello Increment spent /committed 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 Increment available for "new" redevelopment projects (Intl admin) 2,817,598 160,000 160,000 160,000 90,000 10,000 10,000 10,000 10,000 10,000 10,000 15,538 3,463,136 Potential Scenarios for Tax Increment Financing District No. 1-22 735,929 Not available for spending- excess increment - - - - - - - - - - - - - 2,491,270 2,491,270 Total Use of Tax Increment 2,123,011 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 9,514,827 12 Use of TI F SCENARIO A Projected Scenario A Accounted for in Prior Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District Source of Funds Tax increment revenue derived from property in district 3,268,866 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 314,648 7,359,289 Tax increment revenue not derived from property in district 1,831,657 52,901 59,550 65,145 3 2,843 4,380 5,974 8,999 13,655 18,372 24,462 30,646 36,951 2,155,538 Subtotal tax increment 5,100,523 367,549 374,198 379,793 314,651 317,491 319,028 320,622 323,647 328,303 333,020 339,110 345,294 351,599 9,514,827 Bond proceeds 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 374,198 379,793 314,651 317,491 319,028 320,622 323,647 328,303 333,020 339,110 345,294 351,599 12,749,969 Use of Funds Increment spent /committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - 1,457,598 - - - - - - - - - - - 1,497,444 Administrative expenditures 212,378 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 342,378 Subtotal 252,224 10,000 1,467,598 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1,839,822 Pooled tax increment for housing purposes - - 735,929 - - - - - - - - - - - 735,929 Expenditure ofTIF revenue not dervied from property 270,000 1,350,000 150,000 150,000 150,000 80,000 5,538 2,155,538 Return of excess tax increment to County - - - - - - 2,491,270 2,491,270 Total Use of Funds 5,358,153 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 12,749,969 Beginning Fund Balance - 2,977,512 3,257,267 144 142,144 219,001 298,697 449,931 682,759 918,612 1,223,089 1,532,283 1,847,567 2,169,035 - Ending Fund Balance 2,977,512 3,257,267 144 142,144 219,001 298,697 449,931 682,759 918,612 1,223,089 1,532,283 1,847,567 2,169,035 (0) (0) Estimated CityofMonticello's portion ofexcess taxincremenf 996,508 996,508 Use of Tax Increment (Spent /Committed Vs. New Spending) Increment spent /committed 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 Increment available for "new" redevelopment projects (Intl admin) 2,817,598 160,000 160,000 160,000 90,000 10,000 10,000 10,000 10,000 10,000 10,000 15,538 3,463,136 Increment available for "new" housing projects (income qualified) 735,929 - - - - - - - - - - - 735,929 Not available for spending- excess increment - - - - - - - - - - - - - 2,491,270 2,491,270 Total Use of Tax Increment 2,123,011 87,794 3,631,321 237,794 237,794 237,794 167,794 87,794 87,794 23,826 23,826 23,826 23,826 2,520,634 9,514,827 12 SCENARIO B Scenario B assumes the EDA acts to remove 55 of the 58 parcels currently within TIF22 (effective for taxes pay- able in year 2013) and to therefore limit the amount of tax increment revenue that is available for new spend- ing under pooling authority. This scenario provides additional revenue for project spending but less than what otherwise would be available under Scenario A. Key items to consider with proceeding under Scenario B are as follows: • Limits the amount of future tax increment to be collected but still allows for maximizing the abil- ity to pool existing tax increment (currently within TIF22). • City will immediately benefit from an increase in tax base from the removal of parcels from the dis- trict at this time. The unanticipated increase in tax capacity would begin in year 2013 and result in lower than anticipated tax rates for taxes payable in 2013. The estimated $200,000 increase in tax ca- pacity for the City is equivalent to about 1% of the City's tax capacity. • City receipt of excess tax increment (one -time money) may not be realized until the end of the district, which is year 2024. • Scenario B assumes the City does not return excess tax increment until the end of the district and out- standing obligations are met. The City could de- cide to return tax increment sooner, depending on timing of future pooled project spending. District Summary and Potential Scenarios for Use ofTIF 13 City of Monticello Tax Increment Financing District No. 1-22 SCENARIO B Source of Funds Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Subtotal tax increment Bond proceeds District Summary and Potential Scenarios for Use ofTIF Projected Scenario B Accounted for in Prior Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District 3,268,866 314,648 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 4,207,161 1,831,657 52,901 59,550 65,145 8,007 9,127 9,104 9,103 9,101 9,100 9,099 9,097 9,096 9,094 2,099,181 5,100,523 367,549 138,174 143,769 86,631 87,751 87,727 87,727 87,725 23,756 23,755 23,753 23,752 23,750 6,306,343 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 138,174 143,769 86,631 87,751 87,727 87,727 87,725 23,756 23,755 23,753 23,752 23,750 9,541,485 Use of Funds Increment spent /committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - 669,566 - - - - - - - - - - - 709,412 Administrative expenditures 212,378 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 342,378 Subtotal 252,224 10,000 679,566 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1,051,790 Pooled tax increment for housing purposes - - 420,716 - - - - - - - - - - - 420,716 Expenditure of TIF revenue not dervied from property 270,000 1,817,000 12,182 2,099,182 Return of excess tax increment to County - - 442,386 442,386 Total Use of Funds 5,358,153 87,794 2,995,076 87,794 87,794 87,794 87,794 87,794 87,794 23,826 23,826 23,826 23,826 478,394 9,541,484 Beginning Fund Balance - 2,977,512 3,257,267 400,365 456,341 455,178 455,135 455,068 455,001 454,932 454,862 454,791 454,718 454,644 - Ending Fund Balance 2,977,512 3,257,267 400,365 456,341 455,178 455,135 455,068 455,001 454,932 454,862 454,791 454,718 454,644 0 0 Estimated City ofMonticello's portion ofexcess taxincrement - - - - - - - - - - - - - 176,954 176,954 Use of Tax Increment (Spent /Committed Vs. New Spending) Increment spent /committed 2,123,011 Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Not available for spending - excess increment - Total Use of Tax Increment 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 2,496,566 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 22,182 2,618,748 420,716 - - - - - - - - - - - 420,716 - - - - - - - - - - - - 442,386 442,386 87,794 2,995,076 87,794 87,794 87,794 87,794 87,794 87,794 23,826 23,826 23,826 23,826 478,394 6,306,342 14 SCENARIO C Scenario C assumes the EDA acts to remove 55 of the 58 parcels currently within TIF22 (effective for taxes payable in year 2013). Under Scenario C, in contrast to Scenario B, the EDA would not act to spend increment under the pooling authority. All available (uncommit- ted) tax increment revenue would be returned imme- diately to the County for distribution to the local tax- ing jurisdictions. This scenario does not provide any additional revenue for project spending. Key items to consider with proceeding under Scenario C are as follows: • Limits the amount of future tax increment to be collected to only what is needed to pay existing outstanding obligations. • City will immediately benefit from an increase in tax base from the removal of parcels from the dis- trict at this time. The unanticipated increase in tax capacity would begin in year 2013 and result in lower than anticipated tax rates for taxes payable in 2013. The estimated $200,000 increase in tax ca- pacity for the City is equivalent to about 1% of the City's tax capacity. • City receipt of excess tax increment through the redistribution of tax revenue to the local taxing ju- risdictions (one -time money) would be realized in year 2013. District Summary and Potential Scenarios for Use ofTIF 15 City of Monticello Tax Increment Financing District No. 1-22 SCENARIO C Source of Funds Tax increment revenue derived from property in district Other tax increment revenue not derived from property in district Subtotal tax increment Bond proceeds District Summary and Potential Scenarios for Use ofTIF Total Source of Funds 8,335,665 Projected Scenario C 9,326,861 Accounted for in Prior 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 Total Life of Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 District 3,268,866 314,648 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 4,207,161 1,831,657 52,901 - - - - - - - - - - - - 1,884,558 5,100,523 367,549 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 6,091,719 3,235,142 - - - - - - - - - - - - - 3,235,142 Total Source of Funds 8,335,665 367,549 78,624 78,624 78,624 78,624 78,624 78,624 78,624 14,656 14,656 14,656 14,656 14,656 9,326,861 Use of Funds Increment spent/committed (within district) 4,835,929 77,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 5,527,410 Pooled tax increment expenditures 39,846 - - - - - - - - - - - - - 39,846 Administrative expenditures 212,378 10,000 222,378 Subtotal 252,224 10,000 262,224 Pooled tax increment for housing purposes - - Expenditure of TIF revenue not dervied from property 270,000 270,000 Return of excess tax increment to County - 3,258,097 9,130 3,267,227 Total Use of Funds 5,358,153 87,794 3,335,891 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 22,956 9,326,861 Beginning Fund Balance - 2,977,512 3,257,267 0 830 1,660 2,490 3,320 4,150 4,980 5,810 6,640 7,470 8,300 - Ending Fund Balance 2,977,512 3,257,267 0 830 1,660 2,490 3,320 4,150 4,980 5,810 6,640 7,470 8,300 0 0 Estimated City ofMonticello's portion ofexcess tax increment - - 1,303,239 - - - - - - - - - - 3,652 1,306,891 Use of Tax Increment (Spent /Committed Vs. New Spending] Increment spent/committed Increment available for "new" redevelopment projects (incl admin) Increment available for "new" housing projects (income qualified) Not available for spending - excess increment Total Use of Tax Increment 2,123,011 87,794 77,794 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 13,826 2,824,492 - - 3,258,097 - - - - - - - - - - 9,130 3,267,227 2,123,011 87,794 3,335,891 77,794 77,794 77,794 77,794 77,794 77,794 13,826 13,826 13,826 13,826 22,956 6,091,719 16 EDA Agenda: 03/12/14 7 Consideration to Adopt Resolution 2014 -023 Approving Purchase Agreement for property at 130 East Broadway, PID #155010034102 (WO /AS) A. REFERENCE AND BACKGROUND: The Economic Development Authority is asked to approve a Purchase Agreement for a parcel of property located in the Original Town plat for the City of Monticello. The City Council will consider action to authorize the EDA to approve the purchase agreement on March 10th, 2014 at their regular meeting. Although the EDA has the statutory and organizational authority (under its enabling resolution and bylaws) to approve acquisitions of real property without formal City Council action, Council's authorization of this item is consistent with recent acquisition actions of the EDA. No public hearing is required for EDA land acquisitions. Al. Budget Impact: Budget impact will be to the EDA's TIF 1 -22 District. A2. Staff Impact: Staff time has been utilized for development of the purchase agreement and associated negotiations. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2014 -023 approving a Purchase Agreement for property at 130 East Broadway, PID 155- 010 - 034102. 2. Motion to not authorize at this time. C. STAFF RECOMMENDATION: City staff recommends Alternative 91 above. Adopting of the resolution will support the EDA's efforts to achieve the goals of the Embracing Downtown Plan, adopted as part of Chapter 3 — Land Use of the Monticello Comprehensive Plan. D. SUPPORTING DATA: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRGHT COUNTY, MINNESOTA RESOLUTION NO. 20144-023 RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND MONTICELLO ILLQUOR, INC. BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and Monticello Liquor, Inc. (the "Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property in the downtown area of the City (the "Property") from the Seller for economic redevelopment purposes related to the revitalization of the downtown area. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $275,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property conforms to the City of Monticello Redevelopment Priorities and Policies, as approved by the City and Authority, and will facilitate the economic redevelopment and revitalization of the downtown area of the City. 1.04. The City Council of the City has reviewed the Purchase Agreement and authorized execution of the Purchase Agreement by the Authority on March 10, 2014. Section 2. Purchase Agreements Approved. 2.01. The Authority hereby approves the Purchase Agreement in substantially the form presented to the Authority, 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 Purchase Agreements by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. Approved this 12th day of March, 2014, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director/Secretary EXHIBIT A PROPERTY The Northerly 110.00 feet of Lots 10 and 11, Block 34, and the Northerly 110.00 feet of the Easterly 9.00 feet of Lot 12, Block 34, Townsite of Monticello, according to the plat on fiel and of record in the office of the Register of Deeds, in and for the County of Wright, State of Minnesota, containing 8290 square feet, more or less. Together with an easement for ingress and egress over, under, and across the Westerly 5.00 feet of said Lot 11 lying South of the Northerly 110.00 feet and the Easterly 9.00 feet of said Lot 12, lying South of the Northerly 110.00 feet. A-1 The Resolution & Purchase Agreement copies are provided to the EDA for their review at this time. These documents will be made public at the time tle EDA takes action. y` PURCHASE AGREEMENT This Purchase Agreement ("Agreement") is made this day of March, 2014, by and between Monticello Liquor, Inc., a Minnesota corporation ("Seller") and the City of Monticello Economic Development Authority, a public body politic and corporate under the laws of the State of Minnesota ("Buyer"). 1. PROPERTY. Seller is the owner of property located at 130 Broadway Avenue East in the City of Monticello, Minnesota, which is legally described on the attached Exhibit A ("Property"). 2. OFFER/ACCEPTANCE. In consideration of and subject to the terms and provisions of this Agreement, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances. All fixtures located on the Property on the date of this Agreement are included in the purchase of the Property. 3. PURCHASE PRICE FOR PROPERTY AND TERMS. a. PURCHASE PRICE: The total purchase price for the Property is: Two Hundred Seventy -Five Thousand and 00/100ths Dollars ($275,000.00) ("Purchase Price"). b. TERMS: EARNEST MONEY: No earnest money shall be paid by Buyer to Seller. 2. BALANCE DUE SELLER: Buyer agrees to pay the Purchase Price by check or wire transfer on the Closing Date according to the terms of this Agreement. 3. DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver to Buyer a Warranty Deed conveying marketable fee simple title to the Property, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to Buyer, subject only to the following exceptions: Building and zoning laws, ordinances, state and federal regulations; ii. Reservation of minerals or mineral rights to the State of Minnesota, if any; and iii. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. 4. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at paragraph 3.b.3. above, Seller shall deliver to Buyer at closing: 436686v4 MINI NIN325-6 a. An affidavit from Seller sufficient to remove any exception in Buyer's policy of title insurance for mechanics' and materialmens' liens and rights of parties in possession; b. A "bring -down" certificate, certifying that all of the warranties made by Seller in this Agreement remain true as of the Closing Date; C. Affidavit of Seller confirming that Seller is not a foreign person within the meaning of Section 1445 of the Internal Revenue Code; d. Well disclosure certification, if required, or, if there is no well on the Property, the Warranty Deed given pursuant to paragraph 3B(3) above must include the following statement: "The Seller certifies that the Seller does not know of any wells on the described real property;" e. Any notices, certificates, and affidavits regarding any private sewage systems, underground storage tanks, and environmental conditions as may be required by state or federal statutes, rules or regulations; and f. Any other documents reasonably required by Buyer's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 5. CONTINGENCIES. Buyer's obligation to purchase the Property is contingent upon the following: a. Approval of this Purchase Agreement by Buyer's governing body; b. Approval of this Purchase Agreement by the City Council of the City of Monticello; C. Buyer conducting environmental investigations on the Property and receiving reports that are satisfactory to Buyer; d. Seller's procurement of a Certificate of Property Maintenance from the City of M,onticello's Inspections Department prior to closing; and e. Buyer's determination of marketable title pursuant to paragraph 6 of this Agreement. Buyer shall have thirty (30) days from the date of approval of this Agreement by the Buyer to remove or waive the foregoing contingencies (the "Due Diligence Period"). These contingencies are solely for the benefit of Buyer and may be waived by Buyer. If Buyer or its attorney gives written notice to Seller that all contingencies are duly satisfied or waived, Buyer and Seller shall proceed to close the transaction as contemplated herein. If one or more of the contingencies is not satisfied, or is not satisfied within the Due Diligence 2 436686v4 MNI MN325-6 Period, and is not waived by Buyer, this Agreement shall thereupon be void at the written option of Buyer, and Buyer and Seller shall execute and deliver to each other documentation effecting the termination of this Agreement. Buyer shall also deliver to Seller copies of all documentation gathered during the Due Diligence Period, including without limitation all survey, environmental or soil tests. As a contingent Purchase Agreement, the termination of this Agreement is not required pursuant to Minnesota Statutes Section 559.21, et. seq. 6. TITLE EXAMINATION/CURING TITLE DEFECTS. Buyer shall, at its expense and within a reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title insurance ("Commitment") for the Property. Buyer shall have 10 business days after the later of receipt of the Commitment and execution in full of the Purchase Agreement to examine the Commitment and to deliver written objections to title, if any, to Seller, or Buyer's right to do so shall be deemed waived. Seller shall have until the end of the Due Diligence Period (or such later date as the parties may agree upon) to make title marketable, at Buyer's cost; provided, however, that costs to make title marketable which exceed $2,000 shall be the responsibility of Seller. In the event that title to the Property cannot be made marketable or is not made marketable by Seller within the Due Diligence Period, then this Agreement may be terminated at the option of Buyer. 7. ENVIRONMENTAL INVESTIGATIONS. Buyer acknowledges that it has been authorized by Seller to enter the Property and conduct environmental investigations of the Property. 8. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Seller shall pay all real estate taxes, interest and penalties, if any, relating to the Property for the years prior to the year of closing. Provided that this transaction shall close as provided herein, Buyer agrees to pay taxes for the year following the year of closing and all taxes for years thereafter. Buyer shall pay all taxes for the year of closing. Seller shall pay all special assessments regarding the Property which are levied or pending as of the Closing Date, including portions which would otherwise have been payable in future installments. 9. CLOSING DATE. The date of closing shall be on the earlier of (a) seven (7) days following the satisfaction of all contingencies; or (b) April 15, 2014 ("Closing Date"). Delivery of all papers and the closing shall be made at the offices of Buyer, 505 Walnut Avenue, Suite 1, Monticello, MN 55362 or at such other location as is mutually agreed upon by the parties. All deliveries and notices to .Buyer shall be made as provided in Section 17 of this Agreement. 10. POSSESSI[ON/UTILITIES. a. Possession. Seller agrees to deliver possession of the Property to Buyer on the Closing Date. Seller shall be authorized to enter the Property to remove all personal property (including without limitation the Liquors sign and two Grain Belt signs mounted to the exterior of the Property), junk, barrels, and debris not later than 60 days following the Closing Date, provided that any authorized representatives of Seller entering the Property must obtain and sign waivers releasing the Buyer and the governing body members, officers, agents, servants and employees thereof from liability for any damage or injury to the persons or property of Seller or its officers, agents, servants or employees or any other person who may be about the Property, 3 436686v4 MNI MN325-6 and further provided that such access shall be limited to the same business hours as those of the Monticello Department of Motor Vehicles. Any personal property remaining on the Property after 60 days following the Closing Date shall become the property of the Buyer. b. Utilities. No later than ten days prior to the Closing Date, Seller shall pay all actual utility charges, along with estimated utility charges through the Closing Date. Buyer shall refund any overpayment of estimated utility charges to Seller upon receipt of utility bills evidencing actual utility usage through the Closing Date. 11. SELLER' WARRANTIES. Seller hereby represents and warrants to Buyer and Seller will represent and warrant to Buyer as of the Closing Date that: a. Sewer and water. Seller warrants that to the best of Seller's knowledge, the . Property is connected to City sewer and water. b. Mechanics' Liens. Seller warrants that, prior to the closing, Seller shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure upon or improvement to the Property caused by or resulting from any action of Seller. Notices. Seller warrants that Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation in connection with the Property, except if any violations are noted in the Certificate of Property Maintenance. It is the Buyer's intention to demolish the existing building and Buyer will be responsible for any items the City of Monticello's Inspections Department notes during the Certificate of Property Maintenance inspection process. d. Tenants. Seller warrants that there are no tenants on the Property. e. Broker Commission. Seller warrants that no broker, agent, or representative has been engaged or shall be entitled to any commission in connection with such transaction. Seller agrees to indemnify, defend and hold Buyer harmless from the claims of any broker, real estate agent or similar party claiming through Seller. f. Condemnation. Seller warrants that there is no pending or, to the actual knowledge of Seller, threatened condemnation or similar proceeding affecting the Property or any portion thereof, and Seller has no actual knowledge that any such action is contemplated. g. Legal Proceedings. There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof, and Seller has no knowledge that any such action is presently contemplated. 4 436686v4 MNI MN325-6 h. Legal Capacity. Seller has the legal capacity to enter into this Agreement. Seller has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against Seller within the last year. i. Methamphetamine Production. To the best of Seller' knowledge, methamphetamine production has not occurred on the Property. Seller' representations and warranties set forth in this paragraph shall be continuing and are deemed to be material to Buyer's execution of this Agreement and Buyer's performance of its obligations hereunder. All such representations and warranties shall be true and correct on or as of the Closing Date with the same force and effect as if made at that time; and all of such representations and warranties shall survive closing and any cancellation or termination of this Agreement, and shall not be affected by any investigation, verification or approval by any part hereto or by anyone on behalf of any party hereto. Seller agrees to defend, indemnify, and hold Buyer harmless for, from and against any loss, costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim, demand or cause of action be instituted, made or taken, which is contrary to or inconsistent with the representations or warranties contained herein. 12. CLOSING COSTS/RECORDING FEES/DEED TAX. Seller shall pay: (a) the cost of any documents required to clear title or to evidence marketable title in excess of $2,000.00; and (b) any other operating costs of the Property up to the date of closing. Buyer shall pay: (a) any environmental investigation costs; (b) tests of an initial title commitment, title insurance and endorsements; (c) any transfer or deed taxes due as a result of this transaction; and (d) all closing fees customarily charged by the title company. Each party shall pay its respective attorneys' fees. 13. INSPECTIONS. From the date of this Agreement to the Closing Date, Buyer, its employees and agents, shall be entitled to enter upon the Property to conduct such surveying, inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and testing of groundwater monitoring wells, as Buyer shall elect. Buyer shall also be entitled to a general walkthrough inspection within five days of the Closing Date. 14. RISK OF LOSS. If there is any loss or damage to the Property between the date hereof and the Closing Date, for any reason including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged before the Closing Date, this Agreement shall become null and void, at Buyer's option. At the request of Buyer, Seller agrees to sign a cancellation of Purchase Agreement. 15. DEFAULT/REMEDIES. If Buyer defaults under this Agreement, Seller has the right to terminate this Agreement by giving written notice of such election to Buyer, which notice shall specify the default. If Buyer fails to cure such default within 15 days of the date of such notice, Seller may terminate this Agreement, time being of the essence of this Agreement. The termination of this Agreement will be the sole remedies available to Seller for such default by Buyer, and Buyer will not be further liable for damages. If Seller defaults under this Agreement, 5 436686v4 MNI MN325-6 Buyer shall have the right (i) to terminate this Agreement, or (ii) to enforce and recover from Seller specific performance of this Agreement. The termination of this Agreement or the enforcement and recovery from Seller of specific performance of this Agreement, shall be the sole remedies available to Buyer for such default by Seller, and Seller shall not be further liable for damages. 16. RELOCATION BENEFITS; INDEMNIFICATION. Seller acknowledges that in the event that Seller is eligible for relocation assistance and benefits, the Purchase Price includes compensation for any and all relocation assistance and benefits for which Seller may be eligible, including benefits for loss of going concern. The provisions of this paragraph shall survive closing of the transaction contemplated by this Agreement. For purposes of this Agreement, "relocation assistance and benefits" shall have the meanings ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. Sections 4601-4655 (the federal URA) and the regulations implementing the federal URA, 49 C.F.R. Sections 24.1-24.603. 17. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is personally served upon one of the following indicated recipients for notices or is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid and addressed as follows: SELLER: Monticello Liquor, Inc. c/o Barbara Susan Lindenfelser 406 East Yd Street Monticello, MN 55362 BUYER: City of Monticello Economic Development Authority Attn: Executive Director 505 Walnut Avenue, Suite 1 Monticello, MN 55362 With a copy to: Martha Ingram, Esq. Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 6 436686v4 MNI MN325-6 18. ENTIRE AGREEMENT. This Agreement, including exhibits attached hereto, and any amendments hereto signed by the parties, shall constitute the entire agreement between Seller and Buyer and supersedes any other written or oral agreements between the parties relating to the Property. This Agreement can be modified only in a writing properly signed on behalf of Seller and Buyer. 19. SURVIVAL. Notwithstanding any other provisions of law or court decision to the contrary, the provisions of this Agreement shall survive closing. 20. BINDING EFFECT. This Agreement binds and benefits the parties and their successors and assigns. (the remainder of this page intentionally left blank) 7 436686v4 NM NIN325-6 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and year above. Buyer: City of Monticello Economic Development Authority By: Its: President By: Its: Executive Director 8 436686v4 MNI MN325-6 Seller: Monticello Liquor, Inc. By: Its: President By: Its: Vice President EXHIBIT A Legal Description of Property The Northerly 110.00 feet of Lots 10 and 11, Block 34, and the Northerly 110.00 feet of the Easterly 9.00 feet of Lot 12, Block 34, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds, in and for the County of Wright, State of Minnesota, containing 8290 square feet, more or less. Together with an easement for ingress and egress over, under, and across the Westerly 5.00 feet of said Lot 11 lying South of the Northerly 110.00 feet and the Easterly 9.00 feet of said Lot 12, lying South of the Northerly 110.00 feet. A-1 4366860 MNI MN325-6 EDA Agenda - 03/12/14 8. Consideration to Adopt Resolution 2014 -022 Adopting a Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -39. (Northland Securities) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adoption of a resolution approving modification to the Tax Increment Financing Plan for TIF District 1 -39 (the "TIF Plan ") for (1) authorization of increase in amount of bonded indebtedness to be incurred; and (2) authorization of increase in increase in the estimate of the cost of the project, including administrative expenses, that will be paid or financed with tax increment from the district. The TIF Plan was approved by the City Council on August 22, 2011 and certified by the Wright County Auditor on July 24, 2012. The Minnesota Statutes that govern TIF require that the City may make these requested modifications only upon the notice and after the discussion, public hearing, and findings required for approval of the original TIF Plan. As part of the City's formal modification process, the EDA requested the City Council to call for a public hearing. The public hearing is scheduled for Monday, March 24. Purpose of Modification The modification to the TIF Plan is needed to amend the estimated bonded indebtedness and source and use of tax increment. Estimated Bonded Indebtedness The TIF Plan, as originally adopted, includes an estimated bonded indebtedness amount of $391,100. This amount is proposed to increase to $413,994, an increase of $22,894. EDA Resolution No. 2011 -74, approved on September 14, 2011, authorized an interfund loan for advance of certain costs in connection with TIF District 1 -39 in the amount of $413,994. The TIF Plan needs to be modified to reflect this amount. Estimated Sources and Uses of Tax Increment The estimated project costs included in the original TIF Plan need to modified to reflect current estimates, including actual transactions that have occurred. The EDA entered into a Purchase and Redevelopment Contract with a redeveloper, under which the EDA conveyed property to the redeveloper for a purchase price less than estimated market value at the time. By conveying property under the terms of the Contract, the EDA agreed to forgo receipt of full reimbursement of the property. Such forbearance was determined to represent an advance of tax increment funds from TIF District 1 -39 in the amount of $413,994. The EDA designated the advance related to land acquisition as an interfund loan, as approved by Resolution No. 2011 -74. The EDA plans to reimburse itself for the land advance, together with interest, to the extent tax increment is sufficient and available to repay the internal borrowing. EDA Agenda — 03/12/14 Table A provides information on the proposed modified estimated tax increment revenues and estimated project/financing costs. The estimated tax increment revenues have been increased to provide for a potential increase in assessed market value that may occur in the future resulting in an increase in tax increment revenues to be collected; this will hopefully avoid the need for any further modification to the TIF Plan in the future. The proposed modification to the project cost for land acquisition reflects the transaction that has occurred since TIF District 1 -39 was originally established. TABLE A Tax Increment Financing District No. 1 -39 Projected Tax Increment Proposed Modification Original No.1 Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $467,600 $550,000 Interest and investment earnings $7,400 $8,000 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $475,000 $558,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $329,340 $413,994 Site improvements /preparation costs $5,000 $0 Utilities $5,000 $0 Other qualifying improvements $5,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $46,760 $46,760 Estimated Tax Increment Project Costs $391,100 $460,754 Estimated financing costs Interest expense $83,900 $97,246 Total Estimated Project /Financing Costs to be Paid from Tax Increment $475,000 $558,000 Estimated Financing Total amount of bonds to be issued $391,100 $413,994 The TIF Plan remains in full force and effect and is not modified except as described in the proposed modification. Al. Budget Impact: Consultant fees have been incurred in relationship to the proposed TIF District 1 -39 modification. The expenses will be coded to the administrative line item of the district. The TIF Plan as detailed in Table A accounts for these expenditures. EDA Agenda — 03/12/14 A2. Staff Workload Impact: Staff time has been and will continue to be spent in preparing and reviewing documents related to the modification. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2014 -022, approving modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -39. 2. Motion to table for further study or discussion. C. STAFF RECOMMENDATION: Staff supports Alternative 1. The Modification to the TIF Plan is necessary to reflect prior actions approved by the EDA and the City Council related to TIF District 1 -39. D. SUPPORTING DATA: A. Resolution 2014 -022 B. Attachment 1 to Resolution 2014 -022, Modification to TIF Plan for TIF District 1 -39 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2014-022 RESOLUTION ADOPTING A MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -39 WHEREAS, it has been proposed by the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority ") that the City of Monticello (the "City ") adopt a modification of the Tax Increment Financing Plan (the "TIF Plan ") for Tax Increment Financing District No. 1 -39 (the "District "); WHEREAS, the City originally established the District and approved the TIF Plan therefor on August 22, 2011 (Resolution No. 2011 -81), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act "); WHEREAS, the Authority proposes modification to the TIF Plan to amend the estimated bonded indebtedness and the estimated source and use of tax increment; WHEREAS, the Authority has investigated the facts and has caused to be prepared a modification to the TIF Plan for the District; and WHEREAS, the City has performed all actions required by law to be performed prior to the modification of the TIF Plan, including, but not limited to, notification of Wright County and Independent School District No. 882 having taxing jurisdiction over the property included in the District and the holding of a public hearing upon published and mailed notice as required by law. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: 1. The Modifications as set forth in Attachment 1 to this resolution are hereby approved and adopted. 2. Subject to approval of the Modifications by the City Council, the Executive Director of the Authority is hereby authorized and directed to transmit a certified copy of this resolution and a certified copy of the City Council resolution approving and adopting the Modifications, together with Attachment 1, to the Office of the State Auditor, the Minnesota Department of Revenue, and Wright County. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 12'h day of March, 2014. President ATTEST: Executive Director /Secretary ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-39 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1- 39 (the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project ") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on August 22, 2011 (Resolution No. 2011 -81); The City and the Authority have now determined a need to modify the TIF Plan in order to amend the estimated bonded indebtedness and the estimated source and use of tax increment; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. H. TIF Plan Modifications to TIF District No. 1-39 The following sections of the TIF Plan for TIF District No. 1 -39 are modified as shown: Subsection 2 -9. Sources of Revenue/Bonds to be Issued. Language added to read as follows: The TIF Plan, as originally adopted, included an estimated bonded indebtedness amount of $391,100. The bonded indebtedness amount is modified and increased to an amount of $413,994, an increase of $22,894. An interfund loan or advance is defined in the TIF Act as a bond or a qualifying obligation. The EDA adopted Resolution No. 2011 -74, on September 14, 2011, authorizing an interfund loan for advance of certain costs in connection with TIF District 1 -39 in the amount of $413,994. Subsection 2 -10. Uses of Funds. Replaced in its entirety to read as follows: Subsection 2 -10. Source and Use of Funds. The estimated sources of revenue, along with the estimated public costs of the District, are itemized in Figure 2 -10. These estimates are based on the best available information in the sources and uses of funds. Such costs are eligible for reimbursement from tax increment derived from property, and other listed sources of tax increment revenue from the District. The EDA and City reserve the right to administratively adjust the amount of any of the items listed in Figure 2 -10 or to incorporate additional eligible items, so long as the total estimated project/financing costs to be paid from tax increment is not increased. 3 FIGURE 2 -10 Tax Increment Financing District No. 1 -39 Projected Tax Increment Modification Original No.I Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $467,600 $550,000 Interest and investment earnings $7,400 $8,000 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $475,000 $558,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $329,340 $413,994 Site improvements /preparationcosts $5,000 $0 Utilities $5,000 $0 Other qualifying improvements $5,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $46,760 $46,760 Estimated Tax Increment Project Costs $391,100 $460,754 Estimated financing costs Interest expense $83,900 $97,246 Total Estimated Project /Financing Costs to be Paid from Tax Increment $475,000 $558,000 Estimated Financing Total amount of bonds to be issued 4 $391,100 $413,994 EXTRACT OF MINUTES OF A MEETING OF THE CITY OF MONTICELLO ECONOMIC DVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA HELD: March 12, 2014 Pursuant to due call and notice thereof, a regular meeting of the City of Monticello Economic Development Authority, Wright County, Minnesota, was duly held at the Monticello City Hall on Wednesday, the 12th day of March, 2014 at 6:00 p.m. for the purpose, in part, of adopting a modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -39. The following Commissioner were present: and the following were absent: Commissioner moved its adoption: introduced the following resolution and The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 5 CERTIFICATION STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) I, the undersigned, being the duly qualified and Executive Director /Secretary of the City of Monticello Economic Development Authority, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the Board of Commissioners of the City of Monticello Economic Development Authority, duly called and held, as such minutes relate to the calling of a public hearing on the tax increment financing plan modification for Tax Increment Financing District No. 1 -39. WITNESS my hand as such Executive Director /Secretary of the City of Monticello Economic Development Authority this 12th day of March, 2014. Executive Director /Secretary 0 EDA Agenda: 03/12/14 9. Director's Report Verbal report to be provided at the meeting.