HRA Agenda 12-06-2000
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, December 6, 2000 - 7:00 p.m.
505 Walnut Street - Bridge Room
MEMBERS: Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger, Steve Andrews, and Bob
Murray.
COUNCIL LIAISON: Brian Stumpf.
OFFICERS: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recorder
Lori Kraemer.
GUESTS: Barry Fluth, Masters Fifth Avenue, Inc. and Brad Johnson, Lotus Realty Services
Ken Helvey, Conworth, Inc.
Corrine Thomson, Kennedy & Graven
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14.
Call to Order.
Consideration to approve the HRA minutes of November 1,2000.
Consent Agenda.
A. Consideration to recommend to City Council a commissioner for annual
appointment.
Consideration of adding or removing consent agenda items.
Consideration of items added or removed from the consent agenda for discussion.
Consideration to hear update and to consider extending the effective date of the
Preliminary Development Agreement between Masters Fifth Avenue, Inc. and the HRA.
7. Consideration of updates relative to TlF District 1-22 North Anchor.
8. Continued - Consideration to hear progress relative to research of purpose/objective and
funding for a scattered housing program and a motion of action/direction.
9. Consideration to discuss the Preliminary Development Agreement fee associated with
proposed TlF Housing District project (Ed Kauffmann).
Consideration to authorize payment of the monthly HRA bills.
Consideration of Executive Director's Report.
Committee Reports: Marketing, Community Center, and MCP.
Other Business.
Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 1,2000 - 7:00 p.m.
505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr. Vice Chair Dan Frie. Bob Murray and Council Liaison
Brian Stumpf.
Members Absent:
Brad Barger and Steve Andrews
Officers Present:
Treasurer Rick Wolfsteller. Executive Director Ollie Koropchak and
Recorder Lori Kraemer.
1. Call to Order.
Darrin Lahr called the meeting to order at 7 PM.
2. Consideration to approve the HRA minutes of October 4. 2000.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY DARRIN LAHR TO
APPROVE THE MINUTES OF THE REGULAR (-IRA MEETING ON OCTOBER 4.
2000. Motion carried with Bob Murray abstaining.
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Consent A!!enda.
None
4. Consideration of adding or removing consent agenda items.
Update on HRA lot by Koropchak. placed on Executive Directions report.
5. Consideration of items added or removed from the consent a!!enda fi:)r discussion.
None
6. Consideration to meet Ken Helvev. C011\\7orth. Inc.. and to hear an update and the process
of a relocation advisor.
Ollie Koropchak. Executive Director. updated the members regarding the latest
comersation \\ith Mr. Helvey and his process as relocation advisor as authorized by the
HRA. He \vas not able to attend the HRA meeting.
Chair Lahr and Koropchak met with all three property owners to inform them of the
HRA's interest and intent. Lahr and Koropchak were on thc October 19th agenda of the
Parks Commission to inform them of the recent activities by the HRA: however. the
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HRA Minutes - 11/01/00
Parks Commission canceled their meeting. Koropchak provided a letter from Mr.
Helvey as to his progress to date.
Lahr asked Koropchak to keep a log of all dates and times that the HRA had contact with
the property owners. Lahr advised that Mr. Carlson was not happy with certain City staff
from previous experience.
The members discussed their concern with the reluctance by some of the property owners
and what the HRA would do if the owners would not agree to sell to the HRA. Lahr
stated that the City has eminent domain and has given the property owners options.
7. Consideration to review appraisals for the three designated North Anchor properties for
approval to make a purchase offer at determined price.
Koropchak advised that Terry Nagorski vvas hired to update or obtain appraisals for the
three properties of Bostic. O'Connor. and Carlson. A request was made fix the
appraisals to be completed in time for the HRA November meeting. Koropchak outlined
previous appraisal values. offers and the current market value for property tax purposes
and a copy of each appraisal was provided for review.
As of October 26. the Carlson's were not interested in hearing from Nagorski or the City
unti I after they' d met with their attorney so there was no updated appraisal on the Carlson
property.
Koropchak advised the members of the process being the HRA could otTer the houses for
re-sale at $1.00 at the buyers expense to find a lot and move the house. As of the 1999
Legislation. the HRA can not use tax increment to purchase property for parks or
public/private recreational facilities. In other words. the HRA would need to use HRA
General Funds for this acquisition.
The HRA was asked to consider the following. assuming the HRA wanted to proceed
with oJTering a purchase agreement. Hans Hagen Homes remains very interested in the
residential redevelopment project and not interested in the commercial redevelopment
proj ect: ho\vever. no commitments at this time.
The members discussed options flw putting in pathways in this area. A developer could
work with the HRA in developing the area and putting in pathways/casements. They also
discussed a portion of Front Street that could be vacated if the HRA/City desired.
Koropchak advised that the I--IRA could hold off unti I more inl()rmation was received
from the relocation advisor before making any offers.
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HRA Minutes - 11/01/00
Motion #1.
A MOTION WAS MADE BY BOB MURRA Y AND SECONDED BY DAN FRIE TO
OFFER $78.000 FOR THE PROPERTY LOCAl'ED AT 8 LOCUST STREET. WITH
$1.000 EARNEST MONEY DOWN WITH THE CONDITION THAT THE
PURCHASE AGREEMENT BECOMES NULL AND VOID IF NOT ACCEPTED
WITHIN 10 DA YS OF DATE OFFER IS MADE, WITH CLOSING DATE OF
JANUARY 2.2001. Motion carried unanimously.
There was further discussion regarding the property owner previously stating her desire to
remain in the home until June 15,2001. The members agreed that if this was stated at the
timc of the purchase agreement, a damage deposit of $1 0.000 would be required to be put
in the City's escrow account by the seller until seller vacates the property. If the seller
does not vacate the property on that date, the $10.000 would be forfeited. Koropchak
stated she would contact Attorney Bubul on this matter.
Motion #2.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO
OFFER $92.200 FOR TIlE PROPERTY LOCATED AT 218 FRONT S'rREET WITH
$1.000 EARNEST MONEY DOWN AND THE CONDITION THAT THE PURCHASE
AGREEMENT BECOME NULL AND VOID IF NOT ACCEPTED WITHIN 10 DA YS
OF DATE OFFER IS MADE, WITH CLOSING DATE OF JANUARY 2,200 I. Motion
carried unanimously.
8.
Consideration to review preliminary desiim concepts as prepared bv KKE Architects and
discuss next steps.
Koropchak advised that Kathy Anderson of KKE Architects had met with Lalu. Frie,
O'NeiIL and Koropchak the end of September. Kathy was referred to the HRA by Hans
Hagen who both \vorked on the New Town development in Maple Grove. Follow~up to
discussions and tour. Kathy was going to look at the market for the commercial north
anchor (development community) with consideration of the residential redevelopment
interest by Hans Hagen. Using the scale map of the North Anchor and based on the
development community. KKE would sketch design concept options. Hans was not
interested in the commercial redevelopment.
Koropchak reminded the members that the ability to maximize the projected $ 1.4 million
($700.000 NPV) tax increment from District 1-22 is at risk if the market for commercial
redevelopment docs not exist in the North Anchor area.
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HRA Minutes - 11/01/00
Kathy Anderson saw no need to attend the HRA meeting. She did not do any concept
sketches as she has not found any interested developers at this time. Redevelopers did
not see this area as a marketable site for hotel/restaurants and the retail market was too
light. Housing does work. Koropchak discussed with her that the HRA was still
interested in putting in a restaurant in this location. The members discussed talking to
developers to see if there is an interest in developing the North Anchor area if the HRA
owned the development.
9.
Tabled - Consideration to review Lease Agreement between SPS. Inc. and the HRA for
approval to enforce penaltv.
At that meeting of October 4, a motion to extend the Lease Agreement between SPS, Inc.
and the I-IRA died due to a lack of majority vote. A second item and motion to address
the fee penalty of $25 per day was tabled to the November meeting pending commcnts
from Attorney I3ubul relative to the importance of this being seasonal rental property.
Attorney Bubul"s comments became irrelevant as Scott Wolfe later informed Koropchak
he decided not to extent the lease and would be removing the pools and fence. The pools
and fence were removed on October 2 I. 2000.
Koropchak also noted a provision of the Agreement read: "If Lessee fails to renlOve the
pools and spas and otherwise fully vacate the Premises upon termination or expiration of
this Agreement. in either event by no later than August 31,2000. Lessee shall be liable to
Lessor for any damages or costs resulting therefrom. including reasonable attorney fees
and court costs. Lessee also shall be charged and hereby agrees to pay $25 for each
additional 24-hour period. or any part of 24 hours, that Lessee occupies the Premises after
the expiration or proper termination of this Agreement."
After some discussion, it was notcd by two of the three members present that they were
not in favor of pursuing this penalty any further.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY DARRIN LAHR TO
WAIVE THE PENALTY FEE OF $25 PER DAY. Motion carried two to one with Bob
Murray opposing.
10. Continued- Consideration to hear prOQress relative to research of purpose/obiective and
fundilH..! for a scattered housinQ prol!,ram and a motion of action/direction.
A list of homes and their values vvas provided and Frie stated to eliminate any of the
homes vvith values over $60.000. Frie mmld like to meet vvith Shari Harris again. draft a
letter to the property o\vncrs. purchase the houses using Grant money. demolish and
market to residential contractors. Frie added that he would like to meet with Harris
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HRA Minutes - 11/01/00
before the December HRA meeting to get an example letter and contact the property
owners.
II.
Consideration to authorize payment of the monthlv ERA bills.
^ MOTION WAS MADE BY BOB MURRA Y AND SECONDED BY DAN FRIE TO
AUTHORIZE PAYMENT OF THE MONTHL Y HRA BILLS. Motion carried
unanimously.
12. Consideration of Executive Director's Report.
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Ollie Koropchak, Executive Director. updated the liRA mcmbers on the
following: Twin City Die Castings Company - hoping to start casting zinc the
week of October 23. They were excited about having received approval as a
supplier for General Motors; working with Maggie on an open house of the
facility for April.
Request from Wright County Partnership to become board membcr. Willing to
change mceting date.
Prospects - 300,000 sq ft office/production facility. Relocation/expansion from
St. Cloud. Koropchak contacted the company on 10/31 and left message.
Someone contacted her from their Chicago office and would like all contact to go
through them.
100.000 sq ft. three-story office headquarter - Monticello continues to be in the
running along with St. Cloud. Company name unknown. 10 acre site south of 1-
94. 400 people. Mcssage 10-17.
25.000-30.000 sq ft facility - Likes Monticello. May be getting cold feet.
Worked with Tricon. Inc. Was invited to banquet.
Tricon. Inc. purchased Value Plus building after vicwing site for the above
manufacturer.
Profile Powder Coating Company - Invited to banquet.
100.000 sq ft manufacturing of louvers.
10.000 sq ft building - Coffee bean roasting. Meeting with Tricon and company.
October 13. Met with Tom. Red Wing Foods owncrs. May build larger for lease.
Koropchak visited the company on 11/1/00.
5.000 sq n office/warehousing for company specializing in in-store advertising.
Looking for cxisting or ne\\I construction.
Turkey processing facility - Cargill is looking to establish a bag bird processing
facility. 115.000-150.000 sq ft on 25-30 acres. 275-350 permanent jobs in t\\lO
years. Did not respond.
6.000-7.000 sq ft office spacc - This is a manufacturing and distribution company.
New space Cor sales and marketing. Purchase of lease. prefer lease. Working with
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HRA Minutes - 11/01/00
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Tricon and Silver Creek Development.
100.000 sq fi: Fridley machine shop (sheet metal parts) 4,000 sq It: office.
4,000 sq ft start-up machine shop. Looking to lease space.
200.000 sq fi: non-production facility. Collier InternationaL Toronto.
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liRA
a) Kauffmann - Ed has revised his design plan to 16 units of four quads with 32 detached
garage stalls.
b) Amoco site - Brad Johnson informs me that their appraisals should be ready this week
and they will prepare preliminary development numbers for the December BRA meeting
c) TIF District 1-18 assessment - Using the market values for payable 2001. Will
recommend at January HRA meeting to adopt resolution deceliifying TIF District No. 1-
18 and it appears the HRA can authorize last payment of $20,400 to RDI and return
excess tax increment to the County.
d) County request of verification of TIF parcels
e) Koropchak stated she \vill be at the Minnesota Development Conference on November
2 and 3.
f) Koropchak stated the lIRA lot was being used by Heaton's for sand and truck/ladders
while they are re-doing their building. They did not ask permission to use the lot and
Koropchak wanted to knO\v if the HRA wanted her to contact them since this "vas an
issue with Skipper's pools and the HRA had requested he remove storage. etc.
13.
Committee Reports: MarketiIH!. Communitv Center (annual). and MCP.
Bob Murray reported that the numbers are close to what were projected. doing well.
14. Other Business. None
15. Adjournment.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRA Y TO
ADJOURN THE MEETING AT 8:50 P.M. Motion carried unanimously.
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HRA Chair
Recorder
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3A. Consideration to recommend to Citv Council a commissioner for annual appointment.
A. REFERENCE AND BACKGROUND:
HRA commissioners are appointed each year by the Mayor and City Council at the first
Council meeting held in January. The five-year term seat held by Commissioner Darrin Lahr
expires December 3 1, 2000.
Darrin has agreed to serve another five-year term, the lIRA may want to endorse Mr. Lahr's
appointment. On January 8, the Mayor and Council will consider appointing commission
members including Damn Lahr.
After Council appointment in January, the following is a list of the HRA commissioners'
terms.
Bob Murray
Steve Andrews
Dan Frie
Brad Barger
Darrin Lahr
December 2001
December 2002
December 2003
December 2004
December 2005
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It is suggested the lIRA make a motion recommending the City Council appoint Darrin Lahr
for a five-year HRA term, expiration date of December, 2005.
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ORA Agenda - 12/6/00
6.
Consideration to hear update and to consider extendios! the effective date of the
Preliminary Development Ae:reement between Masters Fifth Avenue. Inc. and the
BRA.
A. Reference and Backe:round:
At the HRA meeting of August 2,2000, the lIRA and Barry Fluth entered into a 120-day
exclusive right agreement which is effective through December 2, 2000. At that meeting
another developer presented a rehab plan for an owner/occupied project on the Amoco
site. The lIRA elected to enter into the preliminary agreement with Fluth based on the
concept presented which included a larger area for redevelopment and was desirable to
CounciL The concept: Phase I - 5,700 sq ft first floor office with 7 to 8 rental units on
second floor proposed for Amoco site. Phase II - 4 to 8 townhouse units with four
accessory units on the two adjoining southerly lots.
Barry Fluth and Brad Johnson will update the HRA on their process. Based on the
update, the HRA will need to consider whether to extend the effective date or to seek
other interested developers.
At this point, the HRA financial consultants have not been asked to run TIF cashflow
numbers. Pending on the TIF cashflow numbers, the level of TIF assistance will be
determined and the financial method determined (pay-as-you-go or up front). Keep in
mind the four and five year rules. A target date for demolition of the Amoco site, no later
than June 30, 2001. The effective date of the preliminary agreement means concepts,
plans, and level ofTIF assistance are in place for execution of the Contract for Private
Redevelopment.
B. Alternative Action:
1. A motion to extend the effective date to within the
Preliminary Development Agreement between Masters Fifth Avenue, Inc. and the
HRA
2. A motion to deny extending the effective date and seek other interested
developers.
3. A motion to table any action.
C. Recommendation:
If the update includes the go ahead with Phase I and II, the recommendation is Alternative
NO.1 and we proceed. If the update includes Phase I only, the BRA will need to weigh
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HRA Agenda - 12/6/00
the quality of the proposed project, timing issue, and the likelihood of other interested
developers. Certainly, Brad and Barry have proved the know how and ability to complete
a redevelopment project.
D. Supportine: Data:
Copy of executed preliminary agreement.
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this ~ day of ~" ~\J '> '\ ,~oof.) by and between the
Housing and Redevelopment Authority in and for the ~ty of Monticello, Minnesota, a public
body corporate and politic (the "HRA") and;/1P$r;.r~ -"f11.. j!;1",~ the "Developer"):
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WITNESSETH:
WHEREAS, the HRA desires to promote development of certain property within the City,
which property is legally described in Exhibit A attached hereto ("Property"); and
WHEREAS, Developer has submitted a preliminary proposal (the "Proposal") for
development of the Property (the "Development"), which proposal is attached hereto as Exhibit
B; and
WHEREAS, Developer has requested the HRA to explore the use of tax increment
financing (TIF) or other financing to offset a portion of the Development cost, including costs
of land acquisition, site improvements, and utilities; and
WHEREAS, the HRA has determined that it is in HRA's best interest that Developer be
designated sole developer of the Property during the term of this Agreement; and
WHEREAS, the HRA and Developer are willing and desirous to undertake the
Development if (i) a satisfactory agreement can be reached regarding the HRA's commitment for
public costs necessary for the Development; (ii) satisfactory mortgage and equity financing, or
adequate cash resources, for the Development can be secured by Developer; and (iii) the
economic feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties; and
WHEREAS, the BRA is willing to evaluate the Development and work toward all
necessary agreements with Developer if Developer agrees to reimburse the HRA for its costs if
the Development is abandoned or necessary agreements are not reached under the terms of this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the parties agree as follows:
1. Negotiations between the parties shall proceed in an attempt to formulate a
definitive development contract ("Contract") based on the following:
(a) Developer's current Proposal which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any changes
or modifications required by the HRA;
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(b) a mutually satisfactory Contract to be negotiated and agreed upon III
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
HRA may wish to undertake during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement (a) documents the present
understanding and commitments of the parties and (b) will lead to negotiation and execution of
a mutually satisfactory Contract for the Development prior to the termination date of this
Agreement. The Contract (together with any other agreements entered into between the parties
hereto contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, Developer agrees to:
(a) Submit to the HRA a design proposal to be approved by the HRA showing
the location, size, and nature of the proposed Development, including floor layouts,
renderings, elevations, and other graphic or written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting and
completion of all phases of Development.
(b) Submit an over-all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain such other preliminary economic feasibility studies,
income and expense projections and such other economic information as Developer may
desire to further confirm the economic feasibility and soundness of the Development.
(e) Submit to the HRA Developer's financing plan showing that the proposed
Development is financially feasible.
(f) Furnish satisfactory, financial data to the HRA evidencing Developer's
ability to undertake the Development.
4. During the term of this Agreement, the HRA agrees to:
(a) Commence the process necessary to create a project and a tm< increment
financing district, to the extent such process, project, and district are necessary pursuant
to the terms of the Proposal.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
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(c) Estimate the HRA' s level and method of financial participation in the
Development and develop a financial plan for the HRA.' s participation.
5. It is expressly understood that execution and implementation of a Contract shall
be subject to:
(a) A determination by the HRA that its undertakings are feasible based on (i)
the projected tax increment revenues and any other revenues designated by the HRA; (ii)
the purposes and objectives of any development plan and TIF plan created or proposed
for the purpose of providing financial assistance for the Development; and (iii) the best
interests of the HRA.
(b) A determination by Developer that the Development is feasible and in the
best interests of Developer.
6. This Agreement is effective from the date hereof through ~. ':L , ":toe ~
7. Developer shall reimburse the HRA for Administrative Costs, as hereafter defined,
in the maximum amount of $ S .000 For the purposes of this Agreement, the term
"Administrative Costs" means out of pocket costs incurred by the HRA together with staff costs
of the HRA, all attributable to or incurred in connection with the modification of the TIF District,
the negotiation and preparation of this Agreement, the Contract, and other documents and
agreements in connection with the Development. Out of pocket Administrative Costs shall be
evidenced by invoices, statements or other reasonable written evidence of the costs incurred by
the HRA. Staff Administrative Costs shall be evidenced by written certification by HRA staff
stating the internal costs reasonably attributable to the activities described in the previous
sentence.
In order to secure payment of the Administrative Costs, Developer shall deliver to the
HRA cash or a certified check in the amount of $5,000, such delivery to occur upon execution
of this Agreement. If while determining the feasibility of the Project the HRA determines that
Administrative Costs will exceed $5,000 and that additional security is required, the HRA shall
notify Developer of the amount of such additional security. Within ten calendar days of receipt
of said notice, Developer shall deliver to the HRA the required additional security up to a
maximum additional amount of $5,000. The HRA will utilize the funds delivered by Developer
to payor reimburse itself for Administrative Costs.
The parties further understand and acknowledge that one of the Contract terms to be
negotiated may be reimbursement of Developer for amounts paid to the HRA pursuant to this
Section 7. If no Contract is executed, the HRA will return to Developer the funds paid by
Developer to the HRA pursuant to this Section 7, less an amount equal to the Administrative
Costs.
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8. This Agreement may be terminated upon 5 days' written notice by the HRA to
. Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b) an impasse has been reached in the negotiation of any material term or
condition of this Agreement; or
(c) the HRA determines that its costs in performing under this Agreement will
exceed $5,000.
If the HRA terminates the Agreement under this Section 8, Developer shall remain liable to the
HRA under Sections 6 and 7 herein for costs reasonably incurred by the HRA through the date
of termination up to the amount specified in Section 7.
9. Developer is designated as sole developer of the Property during the term of this
Agreement.
10. In the event that Developer, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the HRA may proceed to enforce this Agreement by
appropriate legal or equitable proceedings, or other similar proceedings, and Developer, its heirs,
successors or assigns, agree to pay all costs of such enforcement, including reasonable attorneys'
fees.
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11. If any portion of this Agreement is held invalid by a court of competent
jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent
breach.
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13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered
personally:
(a)
As to the HRA:
Monticello HRA
Attn: Ollie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
;1111 [1;'1 {! Ai 1Jw." '-, .h. c-
A-777V: g4rr~ ~(...k
;1.)..1 5...._ J t.'k:! J
/110.'1 i:'c.- ,,/~ s-S- ..?C 2..-
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(b)
As to Developer:
14. This Agreement may be executed simultaneously in any number of counterparts,
all of which shall constitute one and the same instrument.
15. This Agreement shall be governed by and construed in accordance with the laws of
the state of Minnesota. f\ny disputes, controversies, or claims arising out of this Agreement shall
be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any
objection to the jurisdiction of these courts, whether based on convenience or otherwise.
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IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in
its name and behalf and its seal to be duly affixed hereto and Developer has caused this
Agreement to be duly executed as of the day and year first above written.
~VELOPE~ ~
rpf?;/s !-.'Id ,. 1/t'"W;'
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Ac..
By
Its:
HOUSING AND REDEVELOPMENT
AUTHORlTY IN AND FOR THE
CITY OF MONTICELLO
B~+.eL
Its hairperson
By (:)Q9>~_1 \~Cf\ (.) ~~~
Its Executive Director
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P ID II s
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155-010-036130
155-010-036140 BJORKLUND
155-010-036010 OLSON
155-010-036011 BERGQUIST
EXHIBIT A
Description of Property
7
19-02-00 12:39P Latus Realty
PA02
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LarDS
REA r;ry SERVICES
To:
From:
Oat.&:::
Monticello TlRA
Lotus Rea.lty and D131-' Properties
August 2, 2000
Subject:
Redevelopment Agreement
Amoco Site Plus Adjacent Propcny
Lotus Really and BBl' Properties propose to enter into all Exclusive Right to Redevdop
the above pn')perty in downtown Monticello. The Agreement will be for 120 days and
allow Lotus and BBF to determine a realistic timc1ine tOT redevelopment and study the
economic feasibility. During the 120 days we will work wlth the Cily Stat! and report
our findings to the HRA and hopefully propose a 2Aphase development.
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Phase 1- ADloeD Site
2 Slory mixed use buH~llls a garage accessory Wlit per auached concept plan.
Economic Value (~... vaRi'c'not cost):
111 Floor Office Retail $300,000
2nd Floor 6-8 units of apartments $240,000
Accessory Unit $50,000
Total Phase 1 $590,000
Phase 11 Town HOffil.: Site (For Sale or Rental)
4 to 8 Townhome Units $400,000
4 Accessory Units $200,000
Total Phase 11 $600,000
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HRA Agenda - 12/6/00
7.
Consideration of updates and action relative to TIF District 1-22 North Anchor.
A. Reference and Back2round:
The updates will determine the need for follow-up action.
Ken Helvey will update the lIRA on his process with Sandy Bostic and Mike O'Connor
relative to relocation benefits and the lIRA purchase agreement. Additionally, he was
attempting to have conversation with the Carlson's attorney. Both he and Corrine
Thomson were faxed copies of the letter to the lIRA from the Carlsons.
Corrine Thomson will advise the HRA of the process and involvement of a "90-day quick
take" condemnation. Comparative costs between costs to acquire parcels via
condemnation, lIRA offer and relocation, and seller's offer will be discussed. Other items
for discussion are the need to authorize environmental testing at the Bostic site and how
to handle a possession date if other than closing date of January 2,2000. Whether to
counter-offer Carlson offer and at what price and terms.
Chair Lahr will update the lIRA on the meeting with the Parks Commission and the
Council and Planning members. Koropchak will update the lIRA of her conversation
with Hans Hagen relative possession dates workable for the Bostic and Carlson properties.
The lIRA can not purchase the Carlson property with tax increment revenues because tax
increment no longer can be used for purpose of public recreational (parks, green space,
community centers) spaces or facilities. The urgency to expend the TIP dollars for this
parcel by June 30, 2002 does not apply. Perhaps a creative way to have the Carlson
property be a part of the redevelopment lots could solve the issue? Otherwise, where does
the dollars for the Carlson acquisition come from? The City had budgeted $35,000 for
North Anchor acquisition otherwise dollars need to come from HRA General Fund.
Is this the time to authorize entering into a Preliminary Development Agreement with
Hans Hagen Homes? It is my understanding, the lIRA will determine the tax increment
based on proposed development and offer to sell the raw land to a developer at a
determined price or use pay-as-you-go. The lIRA needs to determine the sources to
finance the acquisitions? Loan from city, G. O. Taxable Bonds, or HRA excess TIF
increment or General Fund (Internal Loan). Additionally, the balance of the contract for
deed on the Schliefhouse ($61,619.43) will need to be paid.
1
.
5.
6.
.
BRA Agenda - 12/6/00
B.
Actions for Consideration:
1.
A motion authorizing entering into a Occupancy and Escrow Agreement with
Sandy Bostic, 8 Locust Street.
2.
A motion to authorize environmental testing for the property located at 8 Locust
Street (Sandy Bostic).
3.
A motion authorizing a counter-offer of $ for purchase
of the property located at 225 Front Street (Rich and Marian Carlson) with a
closing date of and a possession date of
Other terms and conditions.
4.
A motion to adopt a resolution authorizing a ''90-day quick take" condemnation
for the following parcels
A motion authorizing the use of Ehlers & Associates for cash flows and funding
alternatives.
A motion to authorize entering into a Preliminary Development Agreement with
Hans Hagen Homes.
7. Other
C. Recommendations:
No recommendations without input of attorney and relocation advisor.
D. SupportinS! Data:
Copy ofletter from Carlson's attorney and copy ofletter by relocation advisor.
.
2
.
.
.
JOHNSON, LARSON & PETERSON, P.A.
ATTORNEYS AT LAW
JAN C. LARSON+
JOHN T. PETERSON+
CINDI S. MATT
908 COMMERCIAL DRIVE
BUFFALO, MINNESOTA 55313
(763) 682-4550
FAX: (763) 682-4465
WEB: www.jlplaw.com
OF COUNSEL
THOMAS W. RICHARDS
+Real Property Law Specialist
Certifwd hy Minnesota State Bar Association
WAVERLY OFFICE
(By Appointment Only)
WALTER JOHNSON
SENIOR PARTNER RETIRED
November 7,2000
Monticello HRA
Attn: Ollie Koropchak
505 Walnut Street, Suite 1
Monticello, MN 55362-8831
Re: Richard and Marion Carlson Property
Dear Ms. Koropchak:
On Monday, November 6,2000, I met with the Carlsons, with the topic again being the
solicited sale of their property by the Monticello HRA. In an effort to bring some closure to this
ongoing issue, the Carlsons have asked that I make the following offer, with it being understood
that if not accepted according to the terms and conditions outlined herein, will be withdrawn, and
will remain formally withdrawn, hereafter.
The Carlsons would offer their property for sale to the City for the sum of $300,000.00,
with the sum of$5,000.00 deposited in earnest money and the property being sold "AS IS".
Closing would occur no earlier than August 1,2002, and no later than August 31,2002.
The City would be responsible for paying all closing costs, including those customarily
paid by the seller, Le., deed tax, Satisfaction of Mortgage recording fee, etc. Additionally, the
Carlsons would not be responsible for paying any part of any realtor's commissions relative to
the sale/purchase of their property, in the event the City has enlisted said services. Additionally,
as is apparently the City's intent to raise the Carlson property, the Carl sons would be allowed to
remove fixtures, built-ins, etc. from their property prior to the closing date.
The Carl sons would authorize you to convey the above terms to the Monticello HRA.
Absent acceptance, this offer of sale would be withdrawn by 5:00 p.m. on December 31, 2000.
This letter shall serve as a letter of intent only. It shall not be legally binding on
either party. The parties presently intend to enter into negotiations, possibly leading to the
.
.
.
November 7,2000
Page 2
sale/purchase of that property which is the subject hereof, and all conditions, contingencies
and terms with respect to said perspective sale/purchase, as listed above, are not binding on
either party, until such time that a formal agreement of sale/purchase of property is
entered between the parties.
On a final note, please be advised that the Carl sons and I have discussed the restrictions
and/or limitations involved with a municipality's purchase of property, including, but not limited
to, appraisal price, relocation expenses, etc. The Carlsons have asked that I extend their
appreciation for the City's assistance to date in providing a relocation expert to discuss relocation
with them, as well as the City's continuing allowance of the Carlsons utilization of the garage for
rental. However, the Carlsons desire foremost to resolve any issues as to the City's purchase of
their property. Consequently, and as previously discussed herein, in the event that the above
offer is not formalized in final written form, and accepted by the Carl sons by December 31,
2000, this offer shall be deemed formally withdrawn and the Carlsons are not interested in
entertaining any further negotiations and/or discussions relative to the sale of their property until
on or before August 1,2002.
At the Carlson's request, please direct all inquiries to the undersigned.
May I remain,
JTP:mar
TI ~~~O~~=
~. ~
NOV - 8 2000
~
.
Relocation
.
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis. MN 55416
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
November 27,2000
Mike O'Connor
218 Front Street
Monticello, MN 55362
Subject:
Initial Offering Letter for Mike O'Connor
218 Front Street, Monticello, MN
Dear Mr. O'Connor:
.
This letter is coming to you from Conworth, Inc. The firm of Con worth, Inc., based in St. Louis
Park, Minnesota, has been retained by the I-lousing & Redevelopment Authority of Monticello to
negotiate thc purchase of real estatc'and facilitate the administration of relocation benefits.
The Housing & Rcdevelopment Authority of Monticello has established just compensation and
authorized the purchase 0 f your property at 218 Front Street, Monticello, Minnesota. The
purchase of your property will make it possible for the Housing & Redevelopment Authority to
proceed with their planned project.
The Housing & Rcdevelopmcnt Authority is prcpared to pay a total of$92,200.00 which they
believe to be just compensation for marketable title to your property. This amount is equal to the
ccrtified fair market value appraisal of the property. This offer is good for 10 days from
November 28, 2000, pursuant to paragraph 4 of the enclosed Purchase Agreement.
Upon receiving this initial offer, you become eligible and entitled to relocation benefits and other
assistance in accordance with the Fcderal Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended. Inf()[mation regarding the specific assistance to
which you arc entitled will be provided by Conworth, Inc. I fyou wish to call me, I am available
at (952) 929-0044. Conworth, Inc. is located at 4725 Excelsior Boulevard, #200, St. Louis Park,
Minnesota 55416.
Please direct any questions you have regarding the purchase of your property to Conworth, Inc.
.
ACQUISITION AND RELOCATION
.
.
.
Mike O'Connor
November 27, 2000
Page 2
Regulations which the Housing & Redevelopment Authority is required to follow require
Conworth, Inc. to request you to sign an exact copy of this letter, which will then be placed in our
tiles. You are simply acknowledging receipt of this letter on the stated date. A copy of this letter
is also provided for you.
b:1b
Relocation Consultant/Owner
sl
Enclosures
cc: Ollie Koropchak
Corrine Thomson
I acknowledge that on the day of ,2000, a copy of this letter and
a copy of a Guide for Property Owners was delivered to me by the undersigned representatives of
Conworth, Inc. on behalfofthe Housing & Redevelopment Authority of Monticello.
Signature of Property Owner
CONWORTH, INC.
.
. Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Phone (952)929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
November 27,2000
Sandy Bostic
8 Locust Street
Monticello, MN 55362
Subject:
Initial Offering Letter for Sandy Bostic
8 Locust Street, Monticello, MN
Dear Ms. Bostic:
This letter is coming to you from Conworth, Inc. The firm of Conworth, Inc., based in St. Louis
Park, Minnesota, has been retained by the Housing & Redevelopment Authority of Monticello to
negotiate the purchase of real estate and facilitate the administration of relocation benefits.
.
The Housing & Redevelopment Authority of Monticello has established just compensation and
authorized the purchase of your property at 8 Locust Street, Monticello, Minnesota. The
purchase of your property will make it possible for the Housing & Redevelopment Authority to
proceed with their planned project.
The Housing & Redevelopment Authority is prepared to pay a total of$78,000.00 which they
believe to be just compensation for marketable title to your property. This amount is equal to the
certified fair market value appraisal of the property. This offer is good for 10 days from
November 28,2000, pursuant to paragraph 4 of the enclosed Purchase Agreement.
Upon receiving this initial offer, you become eligible and entitled to relocation benefits and other
assistance in accordance with the Federal Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended. Information regarding the specific assistance to
which you are entitled will be provided by Conworth, Inc. If you wish to call me, I am available
at (952) 929-0044. Conworth, Inc. is located at 4725 Excelsior Boulevard, #200, St. Louis Park,
Minnesota 55416.
Please direct any questions you have regarding the purchase of your property to Conworth, Inc.
.
ACQUISITION AND RELOCATION
.
.
.
Sandy Bostic
November 27, 2000
Page 2
Regulations which the Housing & Redevelopment Authority is required to follow require
Conworth, Inc. to request you to sign an exact copy ohhis letter, which will then be placed in our
files. You are simply acknowledging receipt of this letter on the stated date. A copy of this letter
is also provided for you.
t1v
Ken Helvey
Relocation
sl
Enclosures
cc: Ollie Koropchak
Corrine Thomson
I acknowledge that on the day of ,2000, a copy of this letter and
a copy of a Guide for Property Owners was delivered to me by the undersigned representatives of
Conworth, Inc. on behalf of the Housing & Redevelopment Authority of Monticello.
Signature of Property Owner
CONWORTH, INC.
.
Relocallon
. Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
November 29,2000
Sandy Bostic
8 Locust Street
Monticello, rvtN' 55362
RE: Notice of Relocation Eligibility
Project Address: 8 Locust Street, Monticello, MN
Dear Ms. Bostic:
This is a NOTICE OF RELOCA nON ELIGIBILITY. As we earlier discussed with you, it will
be necessary for you to move if and when the Housing & Redevelopment Authority of Monticello
acquires your home for the planned project.
.
However, YOU DO NOT NEED TO MOVE NOW. You will not be required to move without
at least 90 days advance written notice of the date by which you must vacate. When you move,
you will be entitled to relocation payments and other assistance in accordance with Federal
regulations which implement the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 as amended (Uniform Relocation Act). The effective date of this Notice is
November 28, 2000. You are now eligible for relocation assistance.
To assist in covering your costs of moving, you may choose either (1) a payment for your actual
reasonable moving and related expenses, limited to a distance of 50 miles, or (2) a fixed payment
based on the number of rooms you furnish and occupy.
Also, if you owned and occupied your home for at least 180 days prior to November 28, 2000,
and you buy a decent, safe and sanitary replacement house, you may receive a replacement
housing payment to assist in covering the following costs:
I. Differential Amount. I f you must pay more to buy a comparable replacement home than you
receive tlJr your prescnt home, this amount will cover the diflcrence within certain limits.
.
2. Incidental Expenses. This amount covers some costs incidental to settlement on your new
home, such as recording fees, the title insurance premium, and appraisal fees.
ACQUISITION AND RELOCATION
.
.
.
Sandy Bostic
November 29,2000
Page 2
3. Increased Mort!.!a!.!e Interest Costs. This amount will help compensate for some additional
interest costs that would be incurred if you have a mortgage on your home and must pay a
higher interest rate on a mortgage on your replacement home.
Listed below is a property similar to yours which is currently available for purchase. We have
chosen the listed property at 908 7th A venue, Howard Lake, Minnesota, to use as your
"comparable" home in determining your replacement housing benefits as described above.
Address
Name and Tele. No.
of Person to Contact
Askin!.! Price
1.
908 7th A venue
Howard Lake, MN
RelMax 952-471-0722
$89,900.00
Since the asking price ofyoUf "comparable" home of$89,900.00 is $11,900.00 more than the
$78,000.00 you were offered for your present horne, you may be eligible for a differential
payment up to that amount. This is the maximum differential to which you are entitled. If your
actual replacement home costs less than $89,900.00, the differential payment would be based on
your actual replacement home purchase price.
I will explain the basis for the selection of these listings and, ifnecessary, will find additional
referrals for you. We will not base your payment on any unit that is not a "comparable
replacement home." Should you wish to rent (rather than buy) a comparable replacement horne,
let me know. I will help you find rental housing and explain your eligibility for a rental assistance
payment.
When you met with me, you were given a booklet entitled, "Relocation, Your Rights and
Benefits". Please read the booklet carefully. It explains your rights and some things you must do
to obtain a payment. (For example, to receive a replacement housing payment you must purchase
and move to a decent, safe and sanitary home within one year after you move or receive your final
acquisition payment, iflater). Theref()re, don't commit yourself to buy or rent a replacement
home before you have discussed the home with me.
I want to make it clear that you are eligible for assistance to help you relocate. In addition to
relocation payments and housing referrals, <.:ounseling and other services are available to you.
CONWORTH, INC.
.
.
.
Sandy Bostic
November 29,2000
Page 3
If you have any questions, please call me. I can be reached by calling 952-929-0044 or by
writing to me at Conworth, Inc., 4725 Excelsior Boulevard, #200, Minneapolis, MN 55416.
This letter is of importance to you and should be carefully filed for safekeeping.
Ken Helvey
Relocation C nsultantlOwner
sl
cc: Ollie Koropchak
Corrine Thomson
CONWORTH, INC.
.
. Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis. MN 55416
Phone (952) 929.0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
November 29, 2000
Mike O'Connor
218 Front Street
Monticello, MN 55362
RE: Notice of Relocation Eligibility
Project Address: 218 Front Street, Monticello, MN
Dear Mr. O'Connor:
.
This is a NOTICE OF RELOCATION ELIGIBILITY. As we earlier discussed with you, it will
be necessary for you to move if and when the Housing & Redevelopment Authority of Monticello
acquires your home for the planned project.
However, YOU DO NOT NEED TO MOVE NOW. You will not be required to move without
at least 90 days advance written notice of the date by which you must vacate. When you move,
you will be entitled to relocation payments and other assistance in accordance with Federal
regulations which implement the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 as amended (Uniform Relocation Act). The effective date of this Notice is
November 28, 2000. You are now eligible tor relocation assistance.
To assist in covering your costs of moving, you may choose either (1) a payment for your actual
reasonable moving and related expenses, limited to a distance of 50 miles, or (2) a fIxed payment
based on the number of rooms you furnish and occupy.
Also, if you owned and occupied your home tor at least 180 days prior to November 28, 2000,
and you buy a decent, safe and sanitary replacement house, you may receive a replacement
housing payment to assist in covering the tollowing costs:
I. Dillcrential Amount. If you must pay more to buy a comparable replacement home than you
receive for your present home, this amount will cover the dillerence within certain limits.
.
2. Incidental Expenses. This amount covers some costs incidental to settlement on your new
home, such as recording fees, the title insurance premium, and appraisal fees.
ACQUISITION AND RELOCATION
.
.
.
Mike O'COIUlor
November 29, 2000
Page 2
3. Increased Mortgage Interest Costs. This amount will help compensate for some additional
interest costs that would be incurred if you have a mortgage on your home and must pay a
higher interest rate on a mortgage on your replacement home.
Listed below is a property similar to yours which is currently available for purchase. We have
chosen the listed property at 320 Oak Avenue N., Maple Lake, Minnesota, to use as your
"comparable" home in determining your replacement housing benefits as described above.
Address
Name and Tele. No.
of Person to Contact
Asking Price
1.
320 Oake Avenue N.
Maple Lake, MN
Re/Max 952-471-0722
$106,900.00
Since the asking price of your "comparable" home of$106,900.00 is $14,700.00 more than the
$92,200.00 you were offered for your present home, you may be eligible for a differential
payment up to that amount. This is the maximum differential to which you are entitled. If your
actual replacement home costs less than $106,900.00, the differential payment would be based on
your actual replacement home purchase price.
I will explain the basis for the selection of these listings and, if necessary, will find additional
referrals for you. We will not base your payment on any unit that is not a "comparable
replacement home." Should you wish to rent (rather than buy) a comparable replacement home,
let me know. I will help you find rental housing and explain your eligibility for a rental assistance
payment.
When you met with me, you were given a booklet entitled, "Relocation, Your Rights and
Benefits". Please read the bookiet carefully. It explains your rights and some things you must do
to obtain a payment. (For example, to receive a replacement housing payment you must purchase
and move to a decent. safe and sanitary home within one year after you move or receive your final
acquisition payment, iflater). Therefore, don't commit yourself to buy or rent a replacement
home before you have discussed the home with me.
I want to make it clear that you are eligible fer assistance to help you relocate. In addition to
relocation payments and housing referrals, counseling and other services are available to you.
CONWORTH, INC.
.
.
.
Mike O'Connor
November 29,2000
Page 3
If you have any questions, please call me. I can be reached by calling 952-929-0044 or by
writing to me at Conworth, Inc., 4725 Excelsior Boulevard, #200, Minneapolis, MN 55416.
This letter is of importance to you and should be carefully filed for safekeeping.
sl
cc: Ollie Koropchak
Corrine Thomson
CONWORTH, INC.
.
. Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis. MN 55416
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
November 30, 2000
Mike O'Connor
218 Front Street
Monticello, MN 55362
Subject: Housing & Redevelopment Authority of Monti celIo
Dear Mr. O'Connor:
I would like to review the information in the two certified letters you received this week.
Letter # 1 -
Offer Letter
The HRA offers you'$92,200.00 for your home.
.
Letter #2 -
Eligibility Notice
The price differential portion of your Replacement Housing Payment is
$14,700.00 (based on the comparable).
You are also eligible to be reimbursed up to $500.00 to have your own appraisal made.
Under the Uniform Relocation Act you also may be eligible for moving cost payments, increased
interest costs, and closing costs.
Please give me a call. I can be reached at 952-929-0044.
;rreIYrJ;/
l~ZL 7
Relocation Consultant/Owner
sl
.
ACQUISITION AND RELOCATION
.
. Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1.877-805-1575
November 30, 2000
Sandy Bostic
8 Locust Street
Monticello, MN 55362
Subject: Housing & Redevelopment Authority of Monticello
Dear Ms. Bostic:
I would like to review the information in the two certified letters you received this week.
Letter # 1 -
Offer Letter
The HRA offers you'$78,000.00 for your home.
.
Letter #2 -
Eligibilitv Notice
The price differential portion of your Replacement Housing Payment is
$11,900.00 (based on the comparable).
You are also eligible to be reimbursed up to $500.00 to have your own appraisal made.
Under the Uniform Relocation Act you also may be eligible for moving cost payments, increased
interest costs, and closing costs.
Please give me a call. I can be reached at 952-929-0044.
1~11f1
Relocation Consultant/Owner
sl
. cc: Ollie Koropchak
ACQUISITION AND RELOCATION
.
.
.
ESCROW AND OCCUPANCY AGREEMENT
THIS AGREEMENT entered into this day of ,2001 by
and between Sandra Bostic, a single person ( "Occupant" or "Seller"), Housing and
Redevelopment Authority in and for the City of Monticello, a Minnesota public body corporate
and politic, ("Buyer" or "HRA") and KENNEDY & GRA YEN, CHARTERED ("Escrow Agent"
or "Agent").
RECITALS
A. Occupant and Buyer have entered in a Purchase Agreement dated
, 2000 ("Agreement") for the sale of property located at 8 Locust Street,
Monticello, Minnesota and legally described as follows, the ("Subject Property")
Lots 9 and 10, Block 54 except the North 80 feet, City of Monticello
B. Occupant understands that Escrow Agent also represented Buyer in acquisition of
the Subject Property but waives any objection to Escrow Agent performing in accordance with
this Agreement.
C. The parties desire to close the sale of the Subject Property on
,2001 and that Occupant deliver possession to Buyer on or before June 15,2001.
AGREEMENT
The parties agree as follows:
1. Delivery of Possession. Occupant shall deliver possession of the Subject Property
Buyer on or before 11:59 p.m. on June 15,2001.
2. Rent. Occupant may occupy the Subject Property through June 15, 2001 without
payment of rent to Buyer.
3. No Damage. Occupant agrees not to cause damage to the Subject Property or to
any structure located on the Subject Property and agrees to deliver possession of the Subject
property to the Buyer in substantially the same condition as existed on the date the parties entered
into the Agreement.
4. Utility Bills. Occupant agrees to pay for all utility services to the Subject
Property through the last day oftheir occupancy. Utility services include the following: sewer
and water, electricity, gas, telephone, garbage collection and cable television.
5. Uninsured Damages/Insurance. Occupant is responsible for any and all damages
that may occur to the Subject Property before they vacate the property that are not covered by
insurance. At all times during their occupancy of the Subject Property Occupant shall maintain a
.
policy of Public liability insurance covering themselves and the Buyer as additional insured, in the
amount of at least $100,000 and a policy of insurance covering their personal property.
6. Escrow. (a) Upon closing and execution of this Agreement, Seller agrees to
deposit into escrow the sum $1,500.00 ("Damage Escrow") and $500.00 ("Utility/Property
Removal Escrow") from the purchase price, to be held by Agent in a non-interest bearing
account.
(b) Within 20 days after Occupant's vacation of the Subject Property, Buyer shall
provide to Agent (with copy to Seller) evidence of expenses incurred for the removal and disposal
of person property and for paYment of utility charges for services provided to the Subject
Property prior to date of closing, if any. Agent shall reimburse Buyer for the incurred expenses
from the Utility/Property Removal Escrow within 7 days following receipt of such evidence from
Buyer.
(c) By June 30, 2001, Buyer shall notify Agent in writing (with copy to Seller) of the
number of day that Seller remained in occupancy of the Subject Property after June 15, 2001.
Within 7 days following receipt of Buyer's written notification. Agent shall pay to Buyer from the
Damages Escrow the sum of$100.00 for each day of Seller's occupancy after June 15,2001.
(d) Agent shall deliver to Seller the balance of the Damages Escrow on deposit, less
deductions provided for in paragraph 6(c) above, no later than 7 days following vacation of the
. Subject Property by Occupant.
(e) Agent shall deliver to Seller the balance of the Utility/Property Removal Escrow,
less deductions provided for in paragraph 6(b) above, no later than 30 days following vacation of
the Subject Property by Occupant.
(f) The sole duties of Agent shall be those described herein, and Agent shall be under
no obligation to determine whether the other parties hereto are complying with any requirements
of law or the terms and conditions of any other agreements among said parties. Agent shall have
no duty or liability to verify any amounts deducted from the retained amount and Agent's sole
responsibility shall be to act expressly as set forth in the Escrow and Occupancy Agreement.
7. Escrow Agent Liability. The sole duties of Escrow Agent shall be those
described herein, and Escrow Agent shall be under no obligation to determine whether the other
parties hereto are complying with any requirements of law or the terms and conditions of any
other agreements among said parties. Escrow Agent may conclusively rely upon and shall be
protected in acting on any notice believed by it to be genuine and to have been signed or
presented by the property party or parties, consistent with reasonable due diligence on Escrow
Agent's part. Escrow Agent shall have no duty or liability to verify any such notice, and its sole
responsibility shall be to act expressly as set forth in this Escrow and Occupancy Agreement.
.
.
.
.
8. Notices to be sent to the parties to this Agreement shall be sent by mail or
personal delivery to:
SELLER:
Sandy Bostic
BUYER:
Ollie Koropchak
Monticello HRA
505 Walnut Street, Suite 1
Monticello, MN 55362
AGENT:
Kennedy & Graven, Chartered
Attn: Corrine Thomson
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
written above.
SELLER:
BUYER:
Housing and Redevelopment
Authority in and for the City of
Monticello
By:
Sandy Bostic
Ollie Koropchak
ESCROW AGENT: KENNEDY & GRA YEN,
CHARTERED
By:
Corrine H. Thomson
.
.
.
BRA Agenda - 12/6/00
8.
Continued - Consideration to hear proeress relative to research of purposelobiective
and fundine for a scattered housine program and a motion of action/direction.
Commissioner Frie will give an update at the meeting.
1
.
.
.
BRA Agenda - 12/6/00
9.
Consideration to discuss the Preliminary DeveloDment Aereement fee associated
with orooosed TIF Bousine District oroiect.
A. Reference and backl!round:
This discussion appears on the agenda via the request of Ed Kauffinann. As you recall,
Mr. Kauffinann appeared before the HRA in September relative to a preliminary concept
for redevelopment and construction of 20 condominiums with single garages in the area of
Seventh Street and Minnesota Street. After some discussion, it appeared further research
as to the size of the lots was needed and the preference was for double garages. The
developer was advised that the HRA would need to review this concept further as to what
would fit the property and the kind of financing the BRA could do.
The HRA has an established TIF process including a deposit of$5,000 with the execution
of the Preliminary Development Agreement which is outlined in the HRA Business
Subsidy Criteria adopted by the liRA and Council. Historically, a developer comes
before the BRA because he "wants" to do a project and "demonstrates the need" for the
TIF assistance. He has preliminary costs for construction and acquisition and projected
selling prices. A developer normally looks at the $5,000 deposit and execution of the
agreement as a normal cost and process for doing business (redevelopment).
Mr. Kauffinann informs me, he will pay the $5,000 deposit once he knows the project is a
"go". To Mr. Kauffinann "go" means Planning Commission, City Council, and TIF
assistance approvals. He sees this as a city initiated project and doesn't want to put more
time or money into preliminary concepts or to approach potential sellers before he's
assured the project is a "go". Project concept needs the support or approval of Planning
Commission and City Council. The HRA and Council approve the establishment of a TIF
District and the HRA approvals the level of TIF assistance given a developer. The
Preliminary Development Agreement and $5,000 deposit applies to and covers the lIRA
costs to research the feasibility of the project (TIF cashflows), determine level of
assistance, establish the district, and prepare the Contract for Private Redevelopment.
Although Mr. Kauffinann does not have concept approval, the question for the BRA is
one of policy: Whether to proceed with analysis ofTIF without the authorization of the
HRA to enter into a Preliminary Development Agreement with Mr. Kauffinann.
HRA Chair Lahr and Deputy Administrator O'Neill will add additional input to the
discussion.
B. SUDportine Data:
Proposed project area and excerpt from Preliminary Development Agreement.
1
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(b) a mutually satisfactory Contract to be negotiated and agreed upon III
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
HRA may wish to undertake during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement (a) documents the present
understanding and commitments of the parties and (b) will lead to negotiation and execution of
a mutually satisfactory Contract for the Development prior to the termination date of this
Agreement. The Contract (together with any other agreements entered into between the parties
hereto contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, Developer agrees to:
(a) Submit to the HRA a design proposal to be approved by the HRA showing
the location, size, and nature of the proposed Development, including floor layouts,
renderings, elevations, and other graphic or written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting and
completion of all phases of Development.
(b) Submit an over-all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain such other preliminary economic feasibility studies,
income and expense projections and such other economic information as Developer may
desire to further confirm the economic feasibility and soundness of the Development.
(e) Submit to the HRA Developer's financing plan showing that the proposed
Development is financially feasible.
(f) Furnish satisfactory, financial data to the HRA evidencing Developer's
ability to undertake the Development.
4. During the term of this Agreement, the HRA agrees to:
(a) Commence the process necessary to create a project and a tax increment
financing district, to the extent such process, project, and district are necessary pursuant
to the terms of the Proposal.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
DJG14 041 0
MN190-41
2
.
(c) Estimate the HRA' s level and method of financial participation in the
Development and develop a financial plan for the HRA's participation.
5. It is expressly understood that execution and implementation of a Contract shall
be subject to:
(a) A determination by the HRA that its undertakings are feasible based on (i)
the projected tax increment revenues and any other revenues designated by the HRA; (ii)
the purposes and objectives of any development plan and TIF plan created or proposed
for the purpose of providing financial assistance for the Development; and (iii) the best
interests of the HRA.
(b) A determination by Developer that the Development is feasible and in the
best interests of Developer.
6. This Agreement is effective from the date hereof through
.
7. Developer shall reimburse the HRA for Administrative Costs, as hereafter defined,
in the maximum amount of $ F or the purposes of this Agreement, the term
"Administrative Costs" means out of pocket costs incurred by the HRA together with staff costs
of the HRA, all attributable to or incurred in connection with the modification of the TIF District,
the negotiation and preparation of this Agreement, the Contract, and other documents and
agreements in connection with the Development. Out of pocket Administrative Costs shall be
evidenced by invoices, statements or other reasonable written evidence of the costs incurred by
the HRA. Staff Administrative Costs shall be evidenced by written certification by HRA staff
stating the internal costs reasonably attributable to the activities described in the previous
sentence.
In order to secure payment of the Administrative Costs, Developer shall deliver to the
HRA cash or a certified check in the amount of $5,000, such delivery to occur upon execution
of this Agreement. If while determining the feasibility of the Project the HRA determines that
Administrative Costs will exceed $5,000 and that additional security is required, the HRA shall
notify Developer of the amount of such additional security. Within ten calendar days of receipt
of said notice, Developer shall deliver to the HRA the required additional security up to a
maximum additional amount of $5,000. The HRA will utilize the funds delivered by Developer
to payor reimburse itself for Administrative Costs.
The parties further understand and acknowledge that one of the Contract terms to be
negotiated may be reimbursement of Developer for amounts paid to the HRA pursuant to this
Section 7. If no Contract is executed, the HRA will return to Developer the funds paid by
Developer to the HRA pursuant to this Section 7, less an amount equal to the Administrative
Costs.
.
DJG140410
MN190-41
3
.
.
.
8. This Agreement may be terminated upon 5 days' written notice by the HRA to
Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b) an impasse has been reached in the negotiation of any material term or
condition of this Agreement; or
(c) the HRA determines that its costs in performing under this Agreement will
exceed $5,000.
If the HRA terminates the Agreement under this Section 8, Developer shall remain liable to the
HRA under Sections 6 and 7 herein for costs reasonably incurred by the HRA through the date
of termination up to the amount specified in Section 7.
9. Developer is designated as sole developer of the Property during the term of this
Agreement.
10. In the event that Developer, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the HRA may proceed to enforce this Agreement by
appropriate legal or equitable proceedings, or other similar proceedings, and Developer, its heirs,
successors or assigns, agree to pay all costs of such enforcement, including reasonable attorneys'
fees.
11. If any portion of this Agreement is held invalid by a court of competent
jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent
breach.
DJG140410
MN190-41
4
.
.
.
13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered
personally:
(a)
As to the HRA:
Monticello HRA
Attn: Ollie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
(b) As to Developer:
14. This Agreement may be executed simultaneously in any number of counterparts,
all of which shall constitute one and the same instrument.
15. This Agreement shall be governed by and construed in accordance with the laws of
the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall
be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any
objection to the jurisdiction of these courts, whether based on convenience or otherwise.
- REMAINDER OF PAGE INTENTIONALLY LEFT BLANK -
DJG140HO
MN190-41
5
.
.
.
10.
BRA Agenda - 12/6/00
Consideration to authorize payment of the monthly BRA bills.
Recommendation is to authorize payment of the monthly bills.
1
10-31-00 13:49
From-KENNEDY & GRAVEN
+3379310
T-236 P.02/04 F-956
.
Kennedy & Graven, Chartered
200 Soutn Sl.lttn Street
SYlte 170
MinneapoliS, MN 55402
~""~
' AUQl.4St 11, 20
Stlitement No. 34110
City of MontIcello
ACCOUNTS PAYAaLE
505 Witnut Street. Sune 1
Montlc~lIo. MN 55362
Throl.lg/'l July 31. 2000
MN19D-00041 ReCle~lopment - General
447 00
13.00
(::xpense&
TOIaI Current Billing:
460.00
. I declars. under penalty of liiw. tI'larthl5
account. claim or demand is J~sr and correa
and that no parr of It has been paid.
Slgnarl.lre of Claim ent
OKTO PAY? >A~~/)
H fJt {;kAJA-lJ fu~4L .
Code: ). J 3.. 4~ 30 I . 301D
Initial 0 \Z -
.
DlLC-l- ,J
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e u.. t, I.;- . .'
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.
.
.
From-KENNEDY & GRAVEN
+3379310
Page: 3
Kennedy & Graven, Chartered
200 South SIxth Street
SUIte 470
MInneapolis, MN 55402
C,ty of Monticello
Jl.Ily 31. 2000
M N 1 9Q.0004 1
Reae..elopmem - General
Througn July 31. 2000
For All L&gal Sel\1ces As FOllows:
7/1912000 SJB P nOne call WIth 0 Koropchak r. -.enoLls TlF Questions
712412000
7/2812000
SJB Phone eall with 0 Koropchal< re \AlnOui TlF IS$U&i
SJB Phone call With 0 KoropCl'l8k re jlF repans. cneck on
March. 2000 mOdification; pnone call With M Ruff
SJS Phone call with 0 Koropcnak re TlF reporting, re~ew T1F
project
713112000
Total Services:
For All Disbursements As FOllOWS'
Fax
Total Disburaments:
T-236 P.04/04 F-956
Hours Amount
050 74.50
0.75 1 1 1 75
1.00 149 DO
0.75 111 75
$ 447.00
$
1300
13.00
Total Services and Dlsburaments: $
460.00
Acquisition
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
November 2, 2000
INVOICE
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, MN 55326-8831
OCTOBER SERVICES - MONTICELLO PROJECT
Bostic
Write letter of introduction requesting meeting.
Talk with Bostic regarding meeting.
.
Carlson
Write letter of introduction requesting meeting.
O'Connor
Write letter of introduction requesting meeting.
TOTAL HOURS EXPENDED
AT $70.00 PER HOUR
1.75
$122.50
,~Q-
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ACQUISITION AND RELOCATION
.
.
.
11.
BRA Agenda - 12/6/00
Consideration of Executive Director's report.
a.
Midwest Graphics - It is my understanding that Midwest Graphics has been sold.
As you recall, the HRA amended the original Contract changing the pay-as-you-go
financing method to up-front. Two things for the HRA to monitor: payment of
taxes and job and wage levels. The number of jobs and wages committed by
Midwest Graphics carries over with new ownership and is accountable through the
life of the district. Taxes payable 2000 are current (approximately $12,000, partial
value). For taxes payable 2001, the parcel will be assessed at its full market value
of $1,825,000 per the Assessment Agreement therefore the taxes will increase.
(Actual value $1,859,700) I plan to make a visit to the facility and meet the new
owners to discuss the obligations of the contract including the job and wage
commitments. Remember, if job and wages are not met, the developer agreed to
repay assistance plus interest. 1211/00 - Via voice mail from Chuck VanVeel the
facility has been sold to Right Choice Services and forth coming in the mail are
documents assigning the Contract for Private Redevelopment.
H-Window Company - It is my understanding that this building and land (two lots)
are for sale. TIF was used to assist with land write-down of the two lots
(developers cost $15,000). Later based on their expansion, the HRA agreed to
reimburse the company for site improvements in the amount of$160,000. Semi
annual payments began in August 1995 and run through February 2003. After the
2000 payments, the district balance is approximately $27,000. Will keep an eye on
this.
Red Wing Foods, Inc - A Monticello delegation visited this business in November.
They are currently working with a local realtor for site location and local lender for
financing. Tom Feaski is working with the company on building design. They are
interested in TIF assistance and are in the process of completing information for
TIF. Plans are to attend the January HRA meeting.
HRAlSchlief house - The tenants were advised of the HRA' s intent for
redevelopment so as to be alert for new rental options.
Marketing Committee scheduled to meet December 15.
City/Chadwick Swap - Third party negotiator on board. City looking to gain
control of entire 180 acres and lease back rights to harVest gravel.
Prospects - No new update on prospects reported last month. In additional to Red
Wing, a Fridley machine shop, hopefully, is next company to visit or host. 100,000
sq ft building, 150 good paying jobs. Plan to construct next year.
Copy of letter to Skippers.
b.
c.
d.
e.
f
g.
h.
1
November 6, 2000
--
MONTICELLO
Mr. Scott Wolfe
Skipper's Pools & Spas
101 West Broadway
P.O. Box 1234
Monticello, MN 55362
Re: Lease Agreement between SPS Services, Inc. and Monticello HRA.
Dear Scott:
At the HRA meeting of November 1, 2000, the commissioners considered the Section II. USE OF PREMISES, H.
within the Lease Agreement which read: If Lessee fails to remove the pools and spas and otherwise fully vacate the
Premises upon termination or expiration of this Agreement, in either event by no later than August 31,2000,
Lessee shall be liable to Lessor for any damages or costs resulting therefrom, including reasonable attorney fees
and court costs. Lessee also shall be charged and hereby agrees to pay $25 for each additional 24-hour period, or
any part of 24 hours, that Lessee occupies the Premises after the expiration or property termination of the
Agreement.
.
As you recall, the HRA Executive Director contacted the Lessee the week of September 18 relative to the expiration
date of the agreement and to whether the pools and spas had been removed. The Lessee requested the termination
date of the Lease Agreement be extended. At the October 4,2000 HRA meeting, a motion to extend the
termination date of the Lease Agreement died due to the lack of a majority vote and the $25 per day penalty fee
issue was tabled to the November meeting.
On November 1, 2000, the commissioners were advised of the Lessee's decision to withdraw the request to extend
the termination date. The commissioners then proceeded and passed a motion to waive the penalty fee of $25 per
day. Therefore, the Lease Agreement dated June 1,2000, between SPS Services, Inc. and the Monticello HRA is
null and void and no penalty fee is due the Lessor by the Lessee.
Should you have any questions, Scott, please call me at 271-3208. Continued good luck in your business.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
CJ~ '<Cf\l) ~ ~
.
Ollie Koropchak
Executive Director
HRA File V"
Planning Commission File
c:
Monticello City Hall. 505 Walnut Street, Suite I. Monticello, MN 55362-XX31 . (763) 295-2711 · Fax: (763) 295-4404
Officc of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax: (763) 271-3272
AMOCO AWAY PROJECT
MONT'CELLO, MN
DEVELOPMENT ALTERNATIVE
P.02
09/20/2000
OQC-OS-OO 10:4SA Lotu~
_ RQalty
.
PROFORMA
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6 a~\. units 5700 s.f. @ $1.20/S.1. $ 41,000.00
~.ap"~. u~.i~S .~JO.O 5:1.-@ ~~! ~2sv.s~f.;~"=: ~f:=~ 1.0.Q.Q..OO
2 carnage units 1800 s.f. @ $7.20/s.!. $ 13,000.00
TOTAL-INCOME' -. -. .-.. .-.. - $ 180,500.00
. ,..- ,.- ,-.. -. - -. .- -.'- ~.-'- - -
~e~!.~3cancy_ 5.~. ,_ _.'- _ _ $ (9,025.00)
N'ET INCOME .-.'- - _. -.. - $ '17-1,475.00'
TfF/y.!~(~~_y~i1d 11%!e~Um ,.'~:'~~ $-"-,27,305.00
. ,- ,-, -.,-,'-' -. .--..,--..---'-
TOTAL INCOME WITH TIF $ 198,780.00
~ess ~'tl~~~l~' ._~~___~.~ ~~~~)~' (~i,30~jO)
LesS mortgage at 9% A 25 years $ (145,218.00)
~E.r:IN~q:~E=~. .=. .=-... -:=,'=_ __$ _u 26.257.00_
SOU-RCES-" .--.. .-.. .--.. .--. ,-_. ,- - ..-- -. ..-...'-
fiort9~ge_@'800(O'~~..E.05!_..'. ',~=' .-..'- _S' 1.442,040.00'
EquilY $' -';38,169.00
"nFfci"rGap -, -.. .-.. -. .-... --S" -224,34'1.00
TOTAL SOURCES _. -. .-. $' ,B02.550.00
.... _u. .... __ ..-' _t" ,_... __I .-.. ..--.- -
'Uses u_ .-. .-. .-. -- ,_. ,,---I... _..,-,-..-
... --"- - -'- -.'- ..._-,._-~..-~-'-
~cQ,~isili~~D~~OI.~.!~c p,~ ._... ._... __$ ._1.5_92,.000.00
constNction'cOsls:"-"'_u,- -... -.--..-..-
.'-Retail/office'5700'S':r. @ $90/5.-;::"' ,- '$"''' 513,000.00-
"-ApC,'3.200 sL@ $iO/sT' ... -. $ - 924.000.00
-Total-Construction --.. -_.. ._- ,_. $ 1 437 000.00
_ +.+_ .__" ..0_ ._. __. _.___.. __ ..- ,_to ..--. -
'Soft-Costs @ 150" .-. ,_. ---. .- '$- 215,550.0If
forAL USES' ..-. .._" ..--.. ._-"' .. $ 1,802.550.00
._. ___. n_ _ ,_.. .-.-, ._, ..-. -- .--, .--.-. -.,.
TII=ANALVSIS-u'-- ._d, ---.".-.-..-
l3,elaiL~~xesj~~-:-S~~5!.l/S:r..:_ .~ ~=:. ..~,=." _$_,,' ": 1_4.2~_O~OO_
AP.1. laxes SSO.OOO x 14 x 2.4 x 1.12 $ 18,816.00
Loss' c':"-rTenl base .-- ...-.. . .-.. -::-u "$-' '(3,'406.60)
T1F AVAkABLE-' ...-.. .-.." .--, - $ 29,660.00
.
.
Page 1
MQHl1<o'F.LLOJIIoIOCO.)UI
DGc-06-00 ~O:47A Lotus RGalty
AMOCO AWAY / "HOUS1NG SlTE"
MONTiCELLO, MN
, P.03
09/20/20do
.
.
'NCOME
.-TowohomeuniiS@$70Jim'h - -. $ -.. 3i.7....00~ --.-. .- --
4Ga~8g"hOUSoS ~ .$82~inltl = = $-.=39)4..~il_ -=- =- -=- =--=~
4To~nn~m~un!!.~w/lor~@,~f.8/m~h- 1-$ _ 39,744.00 -- '-'.-.--
12 Garages @ $50/rnth $ 7,200.00
Grioss fNCOME-- ----- $ 120.432.00 .------ --
LeSS$33001uoiiopcraUng - -.- $ .-(48.172:80). - -. - - ---
NET INCOME-BEFOREi'II'- .- - $ 72.259.20 ..-. - -- -. -..
TIF-..-.-. _.- __po --- -. - $--.12:600-00 - -...-.. - ---
INCbMEBEFORE DEBT SERviCe -- $ 84.859_20 - -. .--. -
cess Mortgage paymenls-:- firSt. --.- $ .(67.360-00) -- - - -.-
n_'. -'=ip "Ole .,_.. _n H_ ._n._' .-.'-- $-" .(1"6,500.'00) -.. ._-- ,- .-.
C;~S~:FLOW .:.: _~ _~= _=~ $- .- ..9-"-9.2~_= =.:. ~~~
SOURCESANIi"USES-----..-..- .-...- - -..--.-..-
M,;rto~gc~)iild~~:~'!.ye~!s @..!'%=- r~6~~00.0~ . :.=- --=--== ~-=- -=
~~~no~~.. 1_~_,ye~c~ @U~~N ,_. ,_..' _, S_n,~,1.~~.:0.!L - -. - --. _..-
Equily $ 60.840.00
-, ,-,- -,---- -" - --, _""" _.'- ----,--
:!"_OT~!- SqURC.ES ,.., __.. no. ,n__" $ .._~~7.~.OO.OO_ --, -- ,__n .-. -
USES _n .----- - - ..- --. -. - --..-.--..-.-
constructioneosi: - --. - -. --- - --- - -
_.n ... ,__.. ... __ ...__ ___.. ,- ,_no -- ,- --' .--.. -I-' ..- -
_io~i!~ome.!i (co~t @j~"(ClL,,_.. ,.._. $_. ~09,,0.OO.oo_"-._ -.'-.. .- ,-
Caniage Houses (cost @ 100/..) $ 198,000.00
TOTAL CQNSTIiUCTION,EoS.!...-= $ 607.00<1,lJ!l .!.50.583.3I: Per unil =
A"'1UiSilio",~mo_@ $16.66~.l.unil -. _ _$ _ 200,-000:O~ .--=- ~~~-=
SOIl.COsts -@ 10% of hard cost-- - $ - 55.200.00.- ---- -. _..-
..... \ ,_.. ., - .-- .._-, , ,_., --- .-- - ..-.., - -_.'-' -_..'---
_. .__.. __"._ __. ,_,. ,_' .._... ._" _" ___ __ __ .___ ..__4 -.-
Builder/Developer 10% $ 55,200.00 .
,!"O~-U_~ES.~- ..~ =. ~= . ~ $_911.4oo,lJ!l_.~76.45_0-,-oii: !!,,!unil --
TIF ANALYSTs". -- ._- -- -_.-- - --- ---- --
,_. .__. ,__..'._. ._,,__" ,_ ,_,,--..--41--".-.-------
Taxes 1200/unit x 12 $ 14,400.00
--- .-_. ----., ,_.. --- ---. -.,.-...'.'-- --' _.--------
Less current tax base $ (1,800.00)
,.n-:"'AVAILABU~-- ,_.' --- -. S 12,600.00 .--'- ,-"--
.
Pafle 1
MCINTlCEI t oANQCO lit SI bAlno SlI-
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9g.c:,-O~,,:,"OO. ~O: 47A Lotus Rea lty
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P.04
LOTUS
REAliTY SERVICES
.
To:
Froln:
Date:
Monticello HRA
Lotus Realty and BBF Properties
August 2,2000
Subject;
Redevelopment Agreement
Amoco Site Plus Adjacent Property
Lotus Realty and BI3F Properties propose to enter into an Exclusive Right to Redevelop
tbe above property in downtown Monticello. The Agreement will be for 120 days and
allow Lotus and BBF to delcnnine a realistic timeline for redevc!opment and study the
economic feasibility. During the ]20 days we will work with the City Staff and report
our findings to the HRA and hopefully propose 3 2-phase development.
.
Phase 1- Am..oco Site
2 story mixed tL..e building plus a garage accessory unit per attached concept plan,
Economic Value (assessed value not cost):
1 st Floor Office Retail $300,000
2nd Floor 6-8 units of apartments $240,000
Accessory Unit $50,000
Total Phase I $590,000
Phase II Town Home Site (For Sale or Rental)
4 to 8 Townhome Units $400,000
4 Accessory Units $200,000
Total Phase 11 $600,000
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REDEVELOPMENT CONCEPT
/or U:i:....")' Communities, LLC tz"" BBF pl'openi.-:s
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HOUSING & REDEVELOPMENT AUTHORITY OF MONTICELLO
Homeowner Relocation Assistance Benefits
* For Homeowners of 180 Days or More
1. Moving Costs
A. Actual Moving and Related Expenses
- Flat Fee based on a room count
OR
- Actual reasonable moving costs based on estimates by qualified professional movers
II. Purchase Supplement for Owner/Occupants of 180 Days or More
A. Price Differential
B. Increased Mortgage Interest Costs
C. Incidental Expenses
CONWORTH, INC.
.
.
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.'
REPLACEMENT HOUSING DIFFERENTIAL PAYMENT"
(Examples)
Purchase Price of Current Home:
$100,000.00
Comparable:
$115.000.00
$ 15,000.00 Maximum
Price Differential
------------------------------------------------------~--------------------------------------------------------
Example I:
Purchase Price of Current Home:
$100,000.00
$115,000.00
Comparable:
Purchase Price of Replacement Home:
$120,000.00
* Determine the lesser of the Comparable and the Actual Replacement (in this case $115,000.00).
Then compare that to the Purchase Price of Current Home of$100,000.00. This difference of
$15,000.00 would be thc Replacement Housing Differential Payment which the homeowner would
receIve.
Examole 2:
Purchase Price of Current Home:
$100,000.00
Comparable:
$115,000.00
Purchase Price of Replacement Home:
$105,000.00
* Dctermine the lesser of the Comparable and the Actual Replacement (in this casc $105.000.00).
Then comparc that to thc Purchase Price oCCurrent Home of$100,000.00. This ditlerence of
$5,000.00 would be the Replacement Housing Differential Payment which the homeowner would
receive.
CONWORTH, INC.
.
REPLACEMENT HOUSING DIFFERENTIAL PAYMENT" (Continued)
Example 3:
Purchase Price of Current Home:
$100,000.00
Comparable:
$115,000.00
Purchase Price of Replacement Home:
$ 95,000.00
* Determine the lesser of the Comparable and the Actual Replacement (in this case $95,000.00).
Because the Actual Replacement home is less than the Purchase Price of Current Home, this
homeowner would not receive a Replacement Housing Differential Payment.
** NOTE THAT THIS IS ONLY AN EXAMPLE AND SHOULD NOT BE UNDERSTOOD TO BE
ANY TYPE OF GUARANTEE OF BENEFITS UNDER 49CFR PART 24 OF THE UNIFORM
. RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITIONS POLICIES ACT OF 1970.
.
CONWORTH, INC.
.
.
.
INCIDENTAL EXPENSES"
Following is a list of eligible Incidental Expenses to which homeowners are entitled:
1. Legal, closing, and related costs, including those for title conveyance instruments, notary fees,
preparing surveys and plats, and recording fees. Note that attorney fees incidental to
the purchase of a replacement home are eligible. Any attorney fees to represent you before the Agency
for the purposes of negotiating the sale of your current home or obtaining relocation assistance
benefits are not eligible for reimbursement.
2. Lender, FHA, or V A application and appraisal fees.
3. Loan Origination or assumption fees that do not represent prepaid interest.
4. Certification of structural soundness and termite inspection when required.
5. Credit report.
6. Owner's and mortgagee's evidence of title, e.g. title insurance, not to exceed the costs for a
comparable replacement dwelling.
7. Escrow agent's fee.
8. State revenue or documentary stamps, sales, or transfer taxes (not to exceed the costs for a
comparable dwelling).
9. One (l) professional home inspection on chosen replacement home. Costs are limited to the
reasonable industry standard for such services.
10. Such other costs as the Agency determines to be incidental to the purchase.
** NOTE THAT INCI()I~NTAL COSTS REIMBURSEMENT IS LIMITED TO THOSE
COSTS ACTUALLY INCURRED BY THE HOMEOWNER. DOCUMENTATION OF
ELIGIBLE CLOSING COSTS WILL BE DOCUMENTED BY A FORMAL SETTLEMENT
STATEMENT PREPARED BY A QUALIFIED TITLE COMPANY.
CONWORTH, INC.
.~
.
TIF
HOUSING DISTRICT
Owner-Occupied
Project description:
Number of units proposed
Total number of square feet per unit.
_ units @ sq ft
_ units @ sq ft
_ units @ sq ft
Number of units with number of bedrooms.
units with one bedroom
units with two bedrooms
units with three or more bedrooms
Number of units with number of bathrooms.
units with one bath.
units with bath and one-half
units with two baths.
.
All units have two-stall detached garages.
Type of exterior material proposed
Washer/dryers included in each unit _ yes _no.
Other amenities proposed
Estimated Development Costs per Unit
Construction of home
Infrastructure
Processing of Loan
Closing Costs
Landscaping/Site Improvements
Carrying Costs
Total per Unit
Land Costs
Acquisition
Demolition
Relocation
Total Land Costs
. Please return to Ollie Koropchak, HRA Executive Director, fax 763-295-4404.
PAGE ~:.!
ED OR PAT KAUFFMANN .No. 4488 P. 2
6124258885 "" .'r I I
.12/B4/2BBB 14:38 HED' UNr'I ;NG!I~tcP.l,iiJ I !
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ED OR PAT KAUFFMANN
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PAGE B3
No.U3S ~,i
1"=501
(
THOMSEN~BECK EA.
ATTORNEYS AT LAW
.00 Edinborough Way, Suite No. 600
nneapolis (Edina), MN 55435-5962
52) 835-7000 · FAX: (952) 835-9450
GORDON V. JOHNSON
JOHN K. BOUQUET
MARKG.OHNSTAD
DONALD D. SMITH
MARSH J. HALBERG
WILLIAM E. SJOHOLM
THOMAS R KELLEY
JOHN E. RODE
ROBERT D. LUCAS
DAVID J. MCGEE
DENNIS M. PATRICK
GRETCHEN S. SCHELLHAS
PATRICKG. LEACH
OF COUNSEL:
JACKW. CARLSON
TODD R ILIFF
RETIRED:
HELGE THOMSEN
GLENN G. NYBECK
JAMES VAN VALKENBURG
November 29,2000
Housing and Redevelopment Authority
City of Monticello
Monticello City Hall
P.O. Box 1147
250 East Broadway
Monticello, MN 55362
Attention: Executive Director
Re: Midwest Graphics and Response Systems, Inc. - Right Choice
Fulfillment Services, Inc.
Our File No. 00-1-092C
.
Dear Sir:
As you may know, Midwest Graphics and Response Systems, Inc. ("Midwest") has
sold certain of its assets to Right Choice Fulfillment Services, Inc. ("Right Choice"). Right
Choice intends to operate its business at the building located at Dundas Road and Fallon
Avenue, Monticello, Minnesota (the "Premises") and, in connection therewith, has entered
into an assignment of Midwest's interest as tenant in the Lease to the Premises.
In connection with the assignment of the tenant's interest, Midwest has also
assigned its rights under the Contract for Private Redevelopment with the Housing and
Redevelopment Authority for the City of Monticello. The format for the assignment is the
identical format to the format used on October 19, 1999, when the Contract for Private
Redevelopment was assigned to Midwest. Four executed copies of that agreement is
executed herewith.
We would appreciate you obtaining the appropriate signatures on behalf of the
authority and returning three executed copies to the undersigned for further distribution.
If you have any questions or comments, please do not hesitate to contact the
undersigned at any time.
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Housing and Revelopment Authority
November 29,2000
Page 2
Thank you for your cooperation.
RDL/cmr
Enclosures
cc: David F. Senger, Esq.
John E. Brandt, Esq.
Mr. Emmet Hanratty
Very truly yours,
Robert D. Lucas
'..FROM MOSS & BARNETT
(THU) 11. 16' 00 09: 22/ST. 09:21/NO. 3562137314 P 2
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ASSIGNMENT OF
CON"tAACT fOR PRIVATE ReDE~l.OPMENT
[MidweSt Graphics Elm! R88POfl$8 Systems, Inc.
W
Right Choiee Fulfil'meot Services, Inc.]
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THIS ASSlGNMENT Is made as of No"~ H'" 1'1 , 2000, by and bSlWeen Midwest
Graphics and ~ Systems, \nc.. a. Minnesota QQrporation ("";dwest") and Right
ChoiM Futflllment ServiCaS. Inc., 8 MinneSota carporation ("'Right ChoIce')
ReCITALS:
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A. The HoLlSitag And Redeye\Opment. NIUK\rity ~f\ AfVJ For City Of MontiCeflo,
Minnesota. a put me body corporate and politic under the laws of Minnesota
{M~} t\a$ entered into Ih.t certajll Cuntract for Private Redevelopment wfth
Allied Complll1fes, LLC. dalBd as of June 3, 1998 (the "Comra(1j reganting the
parties' respectfVe responslbflti~ In connection with the development oflhe certain
propertY In the CIty of MorTllceDo, MlJ1neeota {the -Cit(} d9fu\ed \n tt'te COfltract at
the "Devetopment Property"'; and
B. Allied Companies, u..C B8IIigoed all ofite rights and ablig~on. underthe Contrac:
to J.A.C. DevelOpment, u.c l'JAC') by that certain ^~nment of Contract for
Private Redevelopment dated as of September S, 1998; ano
C. The Au\'ttoltty and JAC have entered \ntQ a Fr.rst Acnendment to Contract for Private
Redevefopment dated July :28. 1999 (the -Amendmenf'): 8"d
D. JAC assigned 8H IW rights and obligatkmB under the Contmct, with certain
exceptions, to Midwest by that certain Assigrtment of Contract for Private
Redevelopment dated as of QOUJber 19, 1999~ and
~. MidWe8t now d~ to assign and Right Choica to 8S8Ume all of MldWDfs. rfght
We, lnterset and obligations under the CQJJfraCt as nwfsed by the Amendment,
except 10 the extent provided othG:n/l'fBe in this Assignment
NOW, THEREFORE. for good and valuable wnsldenrtion, the receipt and suffidef1C}' of
wt1ich 1s hereby ackn~. Midwe8t and Right Cholae hereby agree as follows:
1. The abQve recitals are InCOrporated herein by reference and made a part here:Q:.
2. except 88 provid~d in SectiOn 4 hereof. Midwest assigns, sells. transfenli and
convey& to RIght ChQiD6, fts SUa:assDB 'aoo ~~ns, au. of Mldwest'!:J right, tltIe and
interest under the Co~ Including without limitation. its rights to receive
payments under Sedioo 3.5 Qf ~ Contract as amended by the Amendment.
.
. .fROM MOSS & BARNETT
(THU) 11. 16' 00 09: 22/ST. 09:21/NO. 3562137314 P 3
3. ExceptasprovfCUld in Section 4 hel'eQf, Right Choicesssy(l"'Je8 an obrlgaUons of1he
MidWest, - Developer, ~ndef the Contract. as amended by the Amendment,
iRCIUdlng Wfthout Umilatlon. all obffgations regarding 1ax rncrvment deflelencies
under Sectfan 3.!(b) and job and wage covenants under Sect10n 3.7, and aU
obIigat1cne under the Aseenment Agreement under SectiOn 6.2.
4. NotwIlhGlandlng anything to1he contrary herein. JAC (together with R1gt\t Choice}
rvrnainsabllgamd to fhe Authority under Section 3.!5(b) afthe Contrm:t as amended
by6le A.mendmertL The ob(igationli of Right Choios and JAC to Ute Autflorify under
SecUon 3.5(b) are joint and several.
5. This Assignment :thaU be binding upon anc1 shan mute to the benet\t of Midwest
RIght Chorea and their respeotive SUCCEt$Sors and assigns.
IN wrTNl!SS WHEREOf. the parties heIBW have mtU$$Cf this Assignment. to be executed
and defivered as of U'M! day and yMr flrst above written.
MIDWEST GRAPHICS AND RESPONSE
::~~ /{
~~~: L
1ts: P..-oant
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RIGHT CHOICE FULFILLMENT SERVIC~S.
INC.
By~-~4/~"
rfM= c!€ __
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. " FROM MOSS & BARNETT
,-~
(THU) 11. 16' 00 09: 23/ST. 09: 21/NO. 3562137314 p 4
,.,-- ..
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The undersig"ed consents kJ the fbragoing Aseignmerlt of Contract (or Private
Redevelopment. al1d ~owfedges that Mld\lll'GSt, as assignor. 18 reieased frQm tts
obligations under 1he Contract.
HOUmNGANDREDEVELOPMENT
AUTHORITY FOR THE CfTY OF
MONTICELLO
By
rt5 Chafr
By.
((8 ~thle Olret;tQr
The unc:leruignrad ccnsents to the foragorng As8(gnment of Contraa frJr PrivatE:
Redevelopment and acknowledges its aJnUnuit1g oblfgaUon d85Cribed 'n Section 4 theNaf
.
J.A.C. DEVELOPMENT, LLC
By{'~2lP
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44060&.1
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Sixth and Minnesota Project Update.
After considerable discussion with city staff and the city planner, Ed Kaufinan has prepared a new
and improved redevelopment plan and simply seeks encouragement in moving forward to
purchase the blighted properties on which this development will be located. If so encouraged by
the HRA in the next few days he will be attempting to arrange purchase agreement with affected
property owners. Once he has the land in control he will pay $5,000 to initiate the TIF process.
He also indicated that he will be contributing a share of the cost of land acquisition. The staff
help he needs at this point is standard assistance in developing a rough financing plan
incorporating TIF potential.
The area is zoned for R-3 which would allow high density apartment construction. The proposal
calls for 12 owner occupied single family detached houses targeted at the senior housing market.
The site would be managed under an association similar to the Klein Farms Estates developments
next to Little Mountain School.
Unit value is estimated at $125,000. The plan has been reviewed by the City Planner, the Design
Advisory Team and the Planning Commission. All have expressed general support for the project.
The City Planner's comments are attached. The development would occur under a planned unit
development program which would include a contract with the city specifYing construction
design, quality and character. The plan prepared is conceptual. Throughout the upcoming
planning review process there will be opportunities to make adjustments as deemed necessary by
the HRA, Planning Commission and City Council. For instance, there may be a need to enlarge
the garages slightly.
The plan is consistent with the comprehensive plan in that it encourages housing density in the
core area of the city placing affordable housing in close proximity to services and shopping.
No formal action requested by the HRA other than providing general support to the developer to
move forward in establishment of purchase agreements with property owners. Please note the
purchase agreements will be contingent on completion of necessary government approvals etc.
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NO.l"WISl ASSOC.AlID CONSUllANlS" 'Nt..
5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416
Telephone: 952.595.9636 Facsimile: 952.595.9837 nac@winternet.com
MEMORANDUM
TO:
Jeff O'Neill
FROM:
Stephen Grittman
DATE:
December 5, 2000
RE:
Monticello - Kauffmann Minnesota Street Project
FILE NO:
191.07 - 00.17
I have reviewed the site plan prepared by Ed Kauffmann for the proposed residential
project along Minnesota Street between 5th and 6th Streets. The project consists of twelve
units, including two twin home structures and eight "zero lot line" single family detached
homes. The site would require a PUD to develop within the proposed setbacks and
provide for common exterior maintenance.
This design contrasts with previous layouts which consisted almost exclusively of twin
and/or four-unit buildings. There are a number positives in this project, including the
following:
· Rear-situated garages, eliminating a garage-forward streetscape
· Usable front porches facing the street
· Reasonable finished living space of just over 1,100 square feet per unit
· Adequate resident and guest parking off-street
· Potential for a small outdoor common area (labeled "tot-lot")
· Urban character with reduced (20 foot) front setbacks
· Adequate room to screen the parking and driveway area from adjacent properties
There are only a few items which I would recommend with this plan. The two-car garages
are just 18 feet in width. While this is a barely functional dimension, 20 feet would be
preferable. The trade-off for the units would be a reduction to a seven foot building
separation (reduced from nine feet). Secondly, I would encourage a slightly reduced drive
aisle dimension to allow for some landscaping along the west fenced boundary line. While
Mr. Kauffmann had mentioned the use of a chain-link style fence, wood is a more
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aesthetically acceptable material. If chain link is used, I would recommend a black finish
rather than the bare galvanized metal color. Finally, architecturally, I would recommend
a relatively high pitched roof line (6/12 or better) to reflect existing architecture in the older
portions of Monticello. In my opinion, this proposal is superior to the multiple family
options previously reviewed, despite the R-3 Zoning of the area.