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HRA Agenda 11-01-2000 . 1. 2. " -, . 4. . 5. 6. AGENDA MONTICELLO HOUSING ANn REDEVELOPMENT AUTHORITY Wednesday, November 1,2000 - 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: Kathy Anderson, KKE Architects Call to Order. Consideration to approve the /-IRA minutes of October 4, 2000. Consent Agenda. Consideration of adding or removing consent agenda items. Consideration of items added or removed from the consent agenda few discussion. Consideration to meet Ken Helvey, Conworth, Inc.. and to hear an update and the process of a relocation advisor. 7. Consideration to review appraisals for the three designated North Anchor properties for approval to make a purchase offer at determined price. X. Consideration to review preliminary design concepts as prepared by KKE Architects and discuss next steps. 9. Tabled - Consideration to review Lease Agreement between SPS, Inc. and the HRA for approval to enforce penalty. 10. Continued - Consideration to hear progress relative to research of purpose/objectivc and funding for a scattered housing program and a motion of action/direction. 11. 12. . 13. 14. 15. Consideration to authorize payment of the monthly HRA bills. Consideration of Executive Director's Report. Committee Reports: Marketing, Community Center (annual), and MCr. Other Business. Adjournment. . . . MINlJTES MONTICELLO HOUSING ANI> REDEVELOPMENT AUTHORITY Wcdncsday, Octobcr 4,2000 - 7:00 p.m. 505 Walnut Street - Bridge Room Members Present: Chair Darrin Lahr. Vice Chair Dan Frie, Brad Barger, Steve Andrews, and Council Liaison Brian Stumpf Members Absent: Bob Murray Officers Present: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy City Administrator Jeff O'Neill and Recorder Lori Kraemer Guest: Scott Rolfe, Skipper's Pools & Spas 1. Call to Order. Chair Darrin Lahr called the meeting to order at 7 PM.. 2. Consideration to approve the II RA minutes of September 6, 2000. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO APPROVE THE MINUTES OF THE SEPTEMBER 6, :2000 I--IRA MEETING WITH A CORRECTION MADE TO PAGE 2, PARAGRAPH 5, OMITTING SENTENCE NUMBER 2 REGARDING MR. KAUFFMAN SECURING PROPERTIES. Motion carried unanimously. .., _L Consent AQenda. None. 4. Consideration of adding or removing consent agenda items. None. 5. Consideration of items added or removed from the consent agenda for discussion. None. 6. Public lfearinQ - Consideration to adopt a resolution amendinQ the BRA Business Subsidy Criteria. Ollie Koropchak, Executive Director, provided the stan'report regarding the consideration to amend the lIRA Business Subsidy Criteria based on the recommendations of the H RA Attorney. A draft copy of the criteria with the proposed amendments hy Attorney BuhuI was provided for review. The proposed aIllendments addressed an increase of the wage level and other criteria to meet the requirements set hy the Minnesota Legislators. Chair Dan'in Lahr opened the public hearing. Hearing no comments, the public hearing was closed. - 1- . . . HRA Minutes - 10/4/00 A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO ADOPT A RESOLUTION AMENDING THE HRA BUSINESS SUBSIDY CRITERIA. Motion carried unanimously. 7. Consideration to discuss renewal or the Lease AQreement between the HRA and SPS Services, Inc. (Skipper's Pool) Ollie Koropchak, Executive Director, provided the staff report regarding the HRJ\ Lease Agreement with Scott Rolfe, SPS Services, Inc. The duration of the lease began April 5, 2000 ending September L 2000. By no later th~lD August 31, 2000, the lessee shall cause the drainage and removal of all pools and spas Irom the Premises...... Lessee also shall be charged and hereby agrees to pay $25 fex 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........The Certificate of Liability Insurance is effective from 5/1/2000 to 5/1/2001. Koropchak spoke with Mr. Rolfe the week of September 18 to see if he had removed the pools and spas from the premises to which he inl()rmed that he had not, and that he wished to extend the lease and discuss the collection of the $25 per day fee. Rolfe stated it was his intent to try this as on a trial basis and if all went well, to extend his conditional use permit. Lahr noted the /-IRA can only allow seasonal use to which Rolfe stated this was not storage but a display and that it was not visible without coming through the store and into the back fence. It was discussed as to why, if this was the applicant's intent from the start, did he wait until after the lease had expired and the HRA contacted him to advise that he would be asking to renew his conditional use permit. There was discussion that initially, due to the liability involved, this was to be a trial period and Rolfe was to come back to the lIRA when this permit expired. There was further discussion as to the possibility of this property being leased year around, whether this lot could be rented to Rolfe for the amount equal to the taxes, or possibly the lease be renewed every six months. Koropchak noted that these questions would have to be verified by the HRA's attorney. LallI" and Andrews stated their opinions had not changed in that they were not coml(mable with having (filled) pools on display on that property. Barger and Frie stated their desire to support the downtown businesses and that they preferred the lot be used rather than sit empty. Jc1TO'NeiIL Deputy City Administrator, stated that this would need to be a joint conditional use permit appl ication by the BRA and Mr. Rolfe, and as the owner, the HRA as would need to start the process. A MOTION WAS MADE BY BRAD BARGER TO EXTEND THE LEASE, SUBJECT TO MODIFICATION AND SUBSEQUENT COSTS THAT THE /-IRA MA Y INCUR, AND SUBJECT TO THE CONDITIONAL USE PERMIT. DAN FRIE SECONDI:D THE MOTION. With a 2 to 2 vote, Darrin Lain and Steve Andrews voting in -2- . . . liRA Minutes - 10/4/00 opposition, the motion failed. After further discussion, Scott Rolfe asked that the $25 per day tee ceasc until this matter is settled. A MOTION WAS MADE BY DARRIN LAHR AND SECONJJED BY STEVE ANDREWS TO TABLE ANY ACTION ON THE PENALTY UNTIL THE NEXT REGULAR SCHEDULED liRA MEETING OF NOVEMBER 1,2000. Motion carried unanimously. 8. Continuation - Consideration to hear prOQITSS relative to research of purnose/obiective and funding fi.)r a scattered housing program and a motion of action/direction if so necessarv. Commissioner Frie updated the HRA on the progress he and O'Neill made in identifying potential homes fe)r a scattered housing program. He advised that they took digital pictures, collected market values, owner names, etc. and are in the process of putting together a packet of information fl)r the HRA members to review. It was again notcd that grant money is available through the state f(x demolitions, etc., and the agency working with the grant progranl actually handles thc writing of the grant. It was explained by Frie how the grants work and that the City would be in cooperation with the HRA in granting reduced building permit tees, etc. as well. It was noted the grant Inoney has to be used within 2 years. A letter was to be drafted to the property owners advising them what the City's intent was and compiling the information before applying tiJr the grant. They advise first to define what types of housing the City is looking fIX and what the City is looking f()r to make the houses cOlllpatible. This will be discussed at the next HRA meeting. 9. Continuation - Consideration to finalize] 999 Authoritv Cashtlows and prioritize Authority l'.oals and expenditures. Ollie Koropchak, Executive Director provided the staff report regarding the recap of available tax increment by district which was presented previously and that the HRA agreed to proceed with the Amoco site redevelopment and begin the process tor acquisition of the north lots of Block 54 and Block 64, 63, and most northeasterly lot of Block 62. Since that time, Wolfsteller and Koropchak met with Mark Ruff~ Ehlers & Associates, who concurred with the use of the excess TI and confirmed 4 and 5 year rules. Darrin, Dan, Jell and Koropchak met with Hans Hagen Ilomes relative to his interest lin residential redevcloPlllent within the North Anchor area. A second meeting was held and preliminary concepts were presented. All Council and HRA melllbers were inlimned of the concept. At the second meeting, the larger scope of the North Anchor, the retail/commercial component, was addressed and the linn of KKE was suggested. " -.) - . liRA Minutes - 10/4/00 Darrin, Dan, Jefl and Koropchak met with KKE who will test the market and interested developers for ideas or concepts which best attract a draw to the North Anchor area. Of the three sites: Amoco, River Street/Broadway commercial, and Front Street housing and given the time constrains; the River StreetlBroadway commercial development would generate the greater amount of tax increment; however, now competes with the retail/commercial market for the Farrell Gas site. The housing development creates the density to support retail/commercial development. Office space for professionals such as attorneys, accountants, real estate agents would generate a draw for employment and potential housing, restaurant, and other rctai I/commercial development. The HRA Chair requested a recap of tax increment available for redevelopment of the North Anchor and estimated revenues and expenditures. Additionally, he requested the HRA begin to drait a list of the economical benefits associated with the redevelopment of the North Anchor project. . Darrin and Koropchak have met with O'Connor and Bostic and have a meeting scheduled with the Carlson's for October I]. The purpose of these meetings is to inform the property Owner of the IfRA's interest to acquire their property, the need for the I-IRA to update or obtain an appraisal, and that a relocation advisor wi II he contacting them to advise them of their relocation rights and benefits. It is liJr that reason, the HRA is asked to authorize the hiring of an appraiser and a relocation advisor. The I IRA was advised to obtain or update the appraisals prior to making an ofJer to acquire. Darrin Lahr summarized his meeting with Hans Hagen, noting llagen is not looking at closing oiT Front St. as he doesn't need the entire block. He does need the river iront property. O'Neill noted that a path could be put in elose to the river hut they would need to watch the removal of trees. Lahr also advised that Hans} lagen had suggested giving the current owners a certain amount of dollars to "spiff up" the apartment building that would not be removed. The types of homes Hagen would desire in that area would be approximately] ,600 to 2,000 sq. ft. units at approximately $150,000 to $200,000 per _ unit. Hagen also stated the factor orthe lot prices he would be charged which would be subtracted from the "quality" of the units. The park area interested him also. Koropchak also noted that several orthe memhers and herself had met with Kathy from KKE who would look into the market and come back to them with information. It was suggested that the liRA have a joint meeting with the Parks Commission assuring them that they were not interested in taking all the park land but to work with them on this project. . Koropchak & Lahr also met wi th one of the owners, Connor, and advised him that the l-IRA is moving ahead with this proposal and what he as an owner could expect. Their target is for getting appraisals by the end of Oct. and purchase agreements by January. Sandy Bostic was interested but would like to stay in her home until mid June. Another meeting is set for next week with the Carlson's. -4- . . . II RA Minutes - 10/4/00 There was further discussion regarding the types of housing Ilans Hagen proposes to put in which would be 10 units on 33' lots, It was asked if this fits the goals of the North Anchor. Koropchak also advised that a finance plan docs need to be in place by June 28, 2002 or the I [RA would lose their ability to use the funds, Relocation to advise onlv - Ken Helvey: A MOT[ON WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER AUTHORIZING APPRAISER TERRY NAGORSK[ TO UPDATE OR OBTAIN AN APPRAISAL FOR THE O'CONNOR, BOSTIC AND CARLSON PROPERTIES FOR SUBMISSION TO THE HRA BY NOVEMBER 1,2000, Motion carried unanimously, A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER AUTHORIZ[NG RELOCATION ADVISOR KEN HELVEY TO ADVISE O'CONNOR, BOSTIC AND CARLSON OF '1'[ [EIR RELOCATION RIGHTS, Motion carried unanimously, 10, Consideration to authorize payment of the monthly [[ RA bills, A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO AUTHOR[ZE PAYMENT OF THE MONTHL Y I [RA BILLS, Motion carried unanimously, II, Consideration of Executi ve Director" s Report. Koropchak provided updates on the KautTmann proposal; the lIRA rental house on Walnut S1.; High speed access to he addressed at the next IDC meeting; Amoco Site proposal/status; an RFP for a company looking at a 300,000 sq, ft, huilding either in Monticello or St. Cloud; a 100,000 sq, ft. building in Monticello or St. Cloud - no further information; as well as the Chadwick/City negotiations, 12, Conll11ittee reports, There were no updates, 13, Other Business, There was no other husiness, 14, Adjournment A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO ADJOURN TI [E MEETING AT 9 PM. Motion carried unanimously, "._-- Recording Secretary lIRA Chair -5- . . . HRA Agenda - 11/1100 6. Consideration to meet Ken Helvev. Conworth. Inc.. and to hear an update and the process of a relocation advisor. In my latest conversation with Mr. Helvey, he had begun the process as relocation advisor as authorized by the HRA last month. He will be at the HRA meeting to introduce himself and to give you an update on the process so far and what a normal relocation advisor process involves. Chair Lahr and myself did meet with all three property owners to inform them of the HRA's interest and intent. Lahr and I were on the October 19th agenda ofthe Parks Commission to inform them of the recent activities by the HRA; however, the Parks Commission canceled their meeting and did not inform us. 1 . . . BRA Agenda - 11/1/00 7. Consideration to review appraisals for the three desienated North Anchor properties for approval to make a purchase offer at determined price. A. Reference and Backeround: At the HRA meeting last month, the HRA authorized hiring Terry Nagorski to update or obtain appraisals for the three properties of Bostic, O'Connor, and Carlson. A request was made for the appraisals to be completed in time for the HRA November meeting. As you recall by Law, an HRA is not allowed to share an appraisal until after a purchase agreement has been executed by a willing seller and buyer, is submitted as evidence in court, or if seller and buyer agree to exchange individual appraisals. In other words, the HRA appraisal remains confidential material for the time being. I have outlined previous appraisal values, offers and the current market value for property tax purposes. A copy of each appraisal is attached for your review. As of October 26, the Carlson's were not interested in hearing from Nagorski or the City until after they'd met with their attorney so no updated appraisal on the Carlson property. Couple process notes: First, the HRA can offer the houses for 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. O'Connor 218 Front Street Appraisal 3/22/1997 $89,300 John Farrell Appraisal 7/20/1998 $81,000 T erry Nagorski HRA offer $84,000 3-year option accepted 11/4/1998 HRA withdrew offer lack-of-funds EMV Payable 2000 $73,800 Appraisal Update 10/10/00 Terry Nagorski 1 . BRA Agenda - 11/1/00 Carlson 225 Front Street Appraisal 6/1/1993 $163,000 Clarence Eull Appraisal 10/27/1997 $165,000 Rod Dragsten Carlson counter-offer of$179,500 8/5/1998 HRA withdrew lack-of-funds EMV Payable 2000 $141,900 Appraisal Update 2000 Terry Nagorski Bostic 8 Locust Street EMV Payable 2000 $57,100 Appraisal 2000 Terry Nagorski . The HRA should consider the following assuming you want to proceed with offering a purchase agreement. Hans Hagen Homes remains very interested in the residential redevelopment project and not interested in the commercial redevelopment project; however, no commitments. What is the impact of the update from KKE Architects and information provided by the relocation advisor? Use a standard purchase agreement: Purchase Price Offer Earnest Money Down Date Purchase Agreement offer expires ifnot executed (Jan/Feb 2001) Closing Date - Prefer AprillMay (Bostic vacate no later than June 15) HRA must have property acquired and demolished or moved by June 30, 2001. Property taxes and assessments (how?) What remains with property? Is the purchase subject to a development commitment? (No) B. Alternative Action for each parcel: 1. A motion to offer dollars for the property located at with earnest money down. Date Purchase Agreement becomes null and void if the executed by Other Terms and Conditions. 2. A motion of interest to make an offer for the property located at . 3. A motion to table any action for the property located at 2 . BRA Agenda - 11/1/00 c. Recommendation: Recommendation is to make a fair offer to the property owner after consideration of input from the relocation advisor and based on the appraisals. If you acquire and demolition or move the building by June 30, 2001, the parcels remain within the TIF District. Although it's always best to have a project lined up or committed, in this case even without the Hans Hagen Homes project the HRA has the dollars to move forward and one parcel for sure will remain as green space and the other two could be redeveloped or green space. It meets the objectives of the Revitalization Plan and the property owners have been jerked around enough. D. SUDDortine: Data: Copy of the appraisals. . . 3 . . . BRA Agenda - 11/1/00 8. Consideration to review preliminary desien concepts as prepared by KKE Architects and discuss next steps. Kathy Anderson ofKKE Architects met with Lahr, Frie, O'Neill, and Koropchak the end of September. Kathy was referred to us by Hans Hagen who both worked on the New Town development in Maple Grove. Follow-up to our 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. Remember, 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 does not exist in the North Anchor area. (Five year knock-out rule.) 1 . . . BRA Agenda - 11/1/00 9. Tabled - Consideration to review Lease Agreement between SPS. Inc. and the BRA for approval to enforce penalty. A. Reference and backS!round: The week of September 18, Koropchak telephoned Scott Rolfe of Skipper's Pool and Spas to see if the pools and spas were removed as per the Lease Agreement. Scott had not removed the pools and requested an extension of the Lease Agreement. He was invited to the HRA meeting in October. At that meeting, a motion to extend the Lease Agreement between SPS, Inc. and the HRA 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 comments from Attorney Bubul relative to the importance of this being seasonal rental property. Attorney Bubul's comments became irrelevant as Scott Wolfe later informed me, he decided not to extent the lease and would be removing the pools and fence. I noted on October 19, the pools and fence remained but on October 21, the pools and fence were removed. As you recall, a provision of the Agreement read: "If Lessee fails to remove the pools and spas and otherwise fully vacate the Premises upon termination or expiration ofthis 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." The question becomes does the HRA want to enforce the penalty? If so, for what length of time? B. Alternative Actions: 1. Invoice the Lessee for a penalty in the amount of $450 for 18 days at $25 for the period September 1 through September 18, the week Koropchak notified the Lessee. 2. Invoice the Lessee for a penalty in the amount of $850 for 34 days at $25 for the period September 1 through October 4, the date of the HRA meeting. 3. Waive the penalty fee of$25 per day. 4. Other suggestion. 1 . BRA Agenda - 11/1/00 c. Recommendation: Recommendation is alternative 1 or 3. One alternative indicates the importance of an executed contract and the other alternative indicates a good measure of business friendliness. D. Supportine Data: None. . . 2 . . . 10. BRA Agenda - 11/1/00 Continued - Consideration to hear Droe:ress relative to research of Durpose/obiective and fundine: for a scattered housin;: Dro;:ram and a motion of action/direction if so necessary. Commissioner Fire will update the HRA. 1 . . . Elm Street and 6th Street Neighborhood - Ruff Auto Area Elm Street 601 Elm Street Propt~!1V (h..ner I'rupt.:lly Valu\.' COlllmenlS (hVIlCI Ron Ruff Value' S-I.l,-WO 503 Elm Street 510 Elm Street 713 6th Street West Owner: RlllT l.andJlulding 1,1..1' \'ah.K~: $:"i4....J.on OWfli..T Ri)r\ald Rut"!" \',IILlt" $."(j fln(l O\\l\el I ,(Iura R~)wlanJ Value' $." I ,.1on . . . 706 6th Street West 613 6th Street West 609 6th Street West (h"ner: Kt:\'in &. Jenl1Y Sllllnpf \'alm~ S33..\OO OWl!er: I'<'lli\ Dahlhl~llI,er \'al\ll~ S:Q}(h) *lln:lhle to dl"tt."rlllilll' COIT(.t.llHldn'\;~" 612 6th Street W cst 607 6th Street West 518 6th Street W cst O\\'tll.:"r Fll~\H)11h & Doreen Grllhh.~ ,",dLle' s-;n lOll ()\\ n~'1" Plla1lt: (i:\tt.::-' \'allll.' :-5~q, HHl OWll(,.~r SCl)tt &. KrislincGill\'in VaILlc-' S-l7,:,,(JO 2 . . . 419 6th Street West 407 6th Street West 606 West 5th Street? (h~ner: PlIttl SChllll/. V,dul..': $S(\,-W() (hvnt~l": \Villiilll1 &. D(llll1;'1 -\llen V;'llul" S.-;h.IOO 1.,Jwrl..~nce Tischller S.jJ.l)OU 418 6th Street West 406 6th Street West Corner ofMN and 5th? O\Vllel" Adolph & l.ucillerknsOIl V;dlle: S)2, ~(I() O\\l1cr .\rlarl P(),.~lirl~r(lI1 Valll~~' S77 ~()() f'l"tl!)L'rl\ O\\r1l'l PIOPC!1\' \"illlli.: ("0I1l111fl1!S "',\ddn'ss linkllHwn'" ~ 1 . . . Fourth and Third Street West Neighborhood 612 4th Street West 725 3rd Street West Owner: Did HOl1dh\l~ "(due: 3R,"iOU Ch\"ner' Ron('t1 Bilrlh(~) Va/lit: i;.;,q.IOu 613 4th Street West Corner of 4th Street/Linn 725 3rd Street West O\\IIt.:1" i\'lalilHb Vicl.;cr~ V,du(', s:=;,"\.7()() "'l:nknOWII r\ddt't'.~~:!. O\\'ll('r' l{u!Jt:rl Hanllt:1 ValuC" S5(l.IO() rll\~llIding Iloll:'C 4 . . . 524 3rd Street Wt:st Ov./nCT I'h)'llis ni'/,t~r Value "'Two \'fIll1t..~ li.d~'d: $71.100& $:::1),1)1111'" Broadway West Neighborhood 806 Broadway West (hvllt:r, Sti..~\"I..~ & (j,lill\hlskm\'sl.;i V.lluc: $:'i(l,(lOO 211 Maple Strt:ct 906 Broadway West 631 Broadway West Pr~)pcrtv (h\'ner Pr()pt~rt!. ""Iut..' ("OIl]l11l:11(S *~o. \'lllid \ddrt'ss* Owner, 1{~))2.cr Dall i(.~I~orl V<lILlI:.' S:i:' \)(l() (h\'I1~:1 ThOI11<'l~ Perrault ValLI!.:: $'I(),~OO 5 <) >,0;',)1111:,\ I'!JOI Sl~ ~'!111 !i:.'1pq\" "ClOt! XI:! SI: S!11l '.1.1\P~;U 01 11I1~,\\ .\1:1\::: (10 I ~ :,~I ql~. \ [l!}SlIUfI \.:l1I\?, ,.l,~lJ:\\O (I(I() (J~~ :,""lI1W.\ 1I!;1I)1II;~q!,\}l ":':i' lIwl[lI.\\ :nll\\O l\!~'s.l.Jpl}l: !i!lt''1.J.lIp.;U OlllW.\\ '\1:1\:,: (lnt'"r:-:s ,)IlIU.\ !i;Jlll\~<.l .\.I\-ll\ F)J11S PJ!4~ 60f lsn3 ldd11S 4117 61l lsn::I Pd11S 4117 10L 000 ~qs ',)I1IP/\ lIO!iIO ;1;:Hl.1'~1 '.1.1U'\\O ()O~ u",s :;:Inpi,\ lIl)~I{) l:llJlll~S )~ Wl~'Sl1"'l-1 I,'HJ\\O . lSB:l "lS 4117 8ll . lSB:lldJJ1S l[lv llf P00410Ql['B!dN lSB::l1dJ11S Pl!4.1 pun l[lmotl . . . . 306 3rd Street West (h~IH~i" -'nlln VllrdllS Vallie ~()-Lt()n Misc. 306 East River Street Owncr Rohert & Jc:;~iC<1 [\'liltl111 VaILll'. S.,1~..100 Unknown Address 8 Linn Street 824 Dayton?? 11mperl.\' (h\'lltt" Pr~lpt..'11~: \' alllt..' ( '(1I1l11H~llls n\\'Il~~r Fldor &. ~i1n(:.\' J(li"d,lll \"alul'. )-Hdlnil iJrl)pl'r\\' (hvntr I'nlpei"lV \',llul' (.()mml'm~ ""H ~lIdl :llhln'~:o;* 7 . . . Unknown Address Ilrl\p""~rtv (h\lltt" PIi)P~IlY Value ("nmlllenls 1003 Golf Course Rd (hl,'I1~~I I\llnel,l Willette Value' ~(<~"l()() 8 . . . 11. BRA Agenda - 11/1/00 Consideration to authorize payment of the monthly BRA bills. 1 . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 October 12, 2000 Statement No. 34938 City of Monticello ACCOUNTS PAYABLE 505 Walnut Street, Suite 1 Monticello, MN 55362 Through September 30, 2000 MN190-00041 Redevelopment ~ General Expenses Total Current Billing: \ , ~2../ OK TO PAY? ~ Code: . Initial e~ 173.35 2.50 175.85 \~ \2S~~::~~ . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 October 12,2000 Invoice # 34938 City of Monticello ACCOUNTS PAYABLE 505 Walnut Street, Suite 1 Monticello, MN 55362 M N 190-00041 Redevelopment - General Through September 30, 2000 For All Legal Services As Follows: 9/15/2000 CHT Phone call with 0 Koropchak re purchase of property 9/29/2000 9/29/2000 SJB Draft Business Subsidy policy revisions. CHT Phone call with 0 Koropchak re relocation consultant Total Services: . For All Disbursements As Follows: Fax Total Disbursements: Hours 0.30 0.75 0.10 $ Total Services and Disbursements: $ . Amount 4620 111.75 15.40 173.35 $ 2.50 2.50 175.85 . Nagorski Appraisals Terry Nagorski 21683 l86th street Big Lake, MN 55309 Oct.lO, 2000 DESKTOP UNDERWRITER APPRAISAL REPORT BORROWER: Mike OCONNNER PROPERTY ADDRESS: 218 front st. Monticello MN 55362 . ~ ~O ~~ -+ 1l:. \ ~ 'd- "J- "Q ~'S \ '\ \'<:::- \U UJ r-J -\;J 0 vJ V' . $200. . Monticello Hf\A 505 Walnut Avenue, Suite 1 Monticello, MN 55362 October 10, 2000 GENERAL MC100-01 FJrofesslonaJ Sor.VICt:~5 T otdl Due This Monti, 9!11!DO MI'f~ Meetlllg with 011,0 8, 1~lck Status of Account CUlrent 52.18.75 3D lldys $000 . 60 Days $O(JO 90 Days $000 DS,if:~- Invoice # 17744 ___Hours AUlO~~nt 12()1- Days $000 ~~/:..--j (' ... . '. 11 c;-'~-d- :,,:!~--.:..i\_,.._)G . I 'LEASE KITP WlliJ/- CUPY FOP YOUR FILE /1NI) HeMI r r'INK COPY WITII 1-'/1 YMi:.N I IU . \ -\ Q\Z .,L."." ""...-.....,,,....,,..". ~"'~ 175 218.75 175 $218./5 Total $218 75 o I ~,~~,~B~ JO()() (>~lltlt::~ f"\.lirlle Drive: I(,)scvllle, MN 'J'; 1.1..;.1 j(Y.i 6:")). .i:/)/ .B~)OU . BRA Agenda - 11/1/00 12. Executive Director's Report Twin City Die Castings Company - I met Doug and Steve Harmon at the Monticello facility on September 29 to see inside of the manufacturing facility and get serial numbers for the 2 die cast machines and 2 melt furnaces in order to release the Letter of Credit associated with the GMEF loan. It is there hope to start casting zinc the week of October 23. They were excited about having received approval as a supplier for General Motors. You will note Steve Harmon and Jay Ellers are panelist at a session (Bringing Metro Growth to Rural Minnesota) at the Annual Minnesota Development Conference, November 2 and 3. Steve, Doug, and Maggie Olson were at the IDC Banquet and enjoyed it. I'll be working with Maggie on an open house of the facility. We have targeted April. Having heard the frustrations in the development process, I asked them frankly about their thoughts. Both agreed to put things behind them. However, these were their comments: They like Monticello as a location: good work force - (looking for the cream of the crop employees). Relative to frustrations: 2/3 State of Minnesota - Strict building codes compared to other states. IRB's (legal firm). 1/3 divided between their company/architect and building official (interpretation of the codes). They are excited about their facility; however, if had to do over again, they would get building permits prior to purchasing land. They were excited and in a hurry. Lastly, with the increased building costs from $5.4 million to $7 million and the IRB's have a cap of$10 million. Their future second expansion was projected at another $5 million and they were thinking of a third expansion. The difficulty is a lender won't be in . second position behind the IRBs. Request from Wright County Partnership to become board member. Willing to change meeting date. Prospects 300,000 sq ft office/production facility. Relocation/expansion from St. Cloud. Currently employ 800, additional 200. $40 to $50 million capital investment in land, building and equipment. RFP to Julien J. Studley, Inc., Chicago, IL., priority mail October 11. Message 10-17. Company name Bankers Systems Incorporated. 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 ofI-94. 400 people. Message 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. - Tom Feaski attended IDC Banquet. Purchased Value Plus building after viewing site for the above manufacturer. Tom and his wife have purchased a house in Monticello. Have a . meeting with him this afternoon about a different company. Invite Tom to IDC meeting. 1 . BRA Agenda - 11/1/00 Profile Powder Coating Company - Invited to banquet. Kind of cool. 100,000 sq ft manufacturing oflouvers. Currently 70 employees, additional 30. Average Wage $12 per hour plus benefits. 14-16 acres ofland. Currently have 58,000 sq ft in Delano, no room to expand. Response date October 17. Heidi Peper. 10,000 sq ft building - Coffee bean roasting. Meeting with Tricon and company, October 13. Met with Tom, Red Wing Foods owners. May build larger for lease. 7 full-time $12 per hour average excluding benefits. 5,000 sq ft office/warehousing for company specializing in in-store advertising. Looking for existing or new construction. Currently, six employees, anticipate adding 4-5 more. Average wage $30,000-$40,000 includes benefits. Same as last month. Responded a second time. Turkey processing facility - Cargill is looking to establish a bag bird processing facility. 125,000- 150,000 sq ft on 25-30 acres. 275-350 permanent jobs in two years. Did not respond. The Monticello Waster Water Treatment Plant would immediately need to expand because of the amount of water usage and BOD discharge. . 6,000-7,000 sq ft office space - This is a manufacturing and distribution company. New space for sales and marketing. Purchase of lease, prefer lease. Want January 2001. 28 jobs and 5-10 more in six months. Average wage $9 per hour. Willing to increase. Responded. Working with Tricon and Silver Creek Development. 100,000 sq ft Fridley machine shop (sheet metal parts) 4,000 sq ft office. Lead from brochure. Builder Warren Hokanson called. 150 employees. Relocation from Fridley. 15-20 acres. Invited out or us in. 4,000 sq ft start-up machine shop. Looking to lease space. 200,000 sq ft non-production facility. CoIlier International, Toronto. Questions: is land privately or publicly owned? How far from St. Cloud? Labor rates? Population? Appeared to be cool after City under negotiation to acquire land. BRA a) Kauffmann - Ed has revised his design plan to 16 units of four quads with 32 detached garage stalls. I have not spoke with him directly; however, by voice mail and fax requested project description and development costs in order to look at preliminary TIP numbers. I did ask if he wished to be on the HRA agenda for Nov or Dec? More at meeting. See attached layout. . b) Amoco site - Brad Johnson informs me that their appraisals should be ready this week and they 2 . HRA Agenda - 11/1/00 will prepare preliminary development numbers for the December HRA meeting. Expiration date of 120-day Preliminary Agreement is December 2, 2000. They indicate moving forward on the Amoco site first. Unsure if the second phrase (housing sites) is feasible or marketable. c) TIF District 1-18 assessment - Using the market values for payable 2001, here is the completed development and values versus the requirements of the contract. Phase I - completed Phase II - III Addition - three single lots remain at $25,000 each IV Addition - two single lots remain at $25,000 each Contract - 67 singles @ $95,000 and 96 units (48 twins) @ $80,000 Completed - 82 singles and 86 (43 twins) Total EMV land and building for payable 2001 - $18,590,400 (Oct 17, 2000) Contract EMV land and building as of January 2,2002, $16,275,000. Will recommend at January HRA meeting to adopt resolution decertifYing 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 ofTIF parcels - See attached letter. e) I'm at the Minnesota Development Conference on November 2 and 3. . 3 10/19/2006 07:02 , I . 6124258889 IIIJII;CC/'l: Nll :J 1.J1'iL; ... ~ ~ I I PAGE 06 - FIFTH STREET ---------j I I I I I I I ~ ti , " ..-~ , J I I I . ----- ----~~ ._~----.,\ . . fZl I I ~&Il _.. " '-....,.--, \" . - - -""""-, '".., U "..... . . ---' , ; I~ ~ i~ '~ I W ~ . z z ~ ! II II II ' I' / I D )i ~ '\\ G.- ) ---- ; ,.... + ~, .. - ',.I. ~, 10' .8 ; n. ~ l'7 . ":' \ ct:: oot ~ N ..... - (; GA~.I 1, ~ 0,.''''''01 I , T ".. '" I. w t ~ \. - _....,,""~."'., ~" --"-- I 1 I : . -~ -- - ....-;J;I- "IF\. ~:. SIXTH , I J " ..,:~.wI" i \. .:I.'-~:::':'.--..-c STREET I-- I I I I I I I I I I I I I I , I I I I , I I I I L__. ~ .~ '6 , - , . . -- MONTICELLO October 18, 2000 Douglas M. Gruber Wright County Auditorn'reasurer 10 2nd Street NW, Rm 230 Buffalo, MN 55313 Dear Doug: TIris letter is in response to your letter received October 13, 2000 to verifY accuracy of proper parcels and to advise of new TIPs payable or for decertification in 2001. All districts passed the test for accuracy proper parcels except the following: TIP District 1-2 MetcalflLarson - Can we transfer PID# 155-010-051111 from TIF District 1-2 to TIF District 1-22 Downtown if it's the HRA's desire? TIF 1-20 Prairie West - PID#s 155-104-001190 and 155-104-001200 do not lie within the TIF District. TIF 1-22 Downtown - DidPID#s 155-010-062010, 155-010-056060, and 155-056061 become 155.113- 001010 and 155-113-001020 through a platting process? Please clarify? What happened to PID# 155-400- 000040? Doug, after June 30, 2001, I will be sending you a list ofPID#s identifying parcels dropping off per the 4-year knock.down rule_ Please check the base net cpe for 155.010-069060 and 155-010.069080 as this went from tax exempt to taxable property (old city hall to funeral home). TIF Districts for decertification in 2001_ TIF 1-12 Aroplax - Decertification date - June 10, 200 I. (Resolution forthcoming) TIF 1-18 River Mill- Decertification date - January 3, 2001. (Resolution forthcoming) New TIF Districts anticipating tax increment payable 200 I. TIF 1-24 St. Henry's TIF 1-25 Blue Chip TIF 1-26 Twin City Die Castings Sincerely, Should you have any questions, please call me at 763-271-3208. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR TI-IE CITY OF MONTICELLO, MINNESOTA o~ \<d1 ~CC)~ Ollie Koropchak Executi ve Director c: Rick Wolfsteller, City Administrator V File l+~?r O"} Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 . (763) 295-27[1 . Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170. Fax: (763) 271-3272 OCT-27-00 FRI 09:37 CONWORTH, INC FAX NO, 8129290588 p, 02 .. Conworth, Inc. 4725 ExcelsIor Boulevard Suite #200 Minneapolis, MN 55416 Phone (952) 929-0044 Fax (952) 929-0~68 Toll Free 1-877-805-1575 October 27,2000 Ollie Koropchak Executive Director Monticello Housing &: Redevelopment Authority Monticello City Hall 505 Walnut St., Suite 1 Monticello, MN 55326-8831 Dear M!;. Koropchak:: . Pursuant to your requcst, here is an update of my progress with the three homeowners in your project area - 218 Front StrcetIMike O'Connor - Sent introduction letter ~ Left message on answering machine - Spoke to on October 26m, He is not wanting to meet with me at all. Does Not want to sell his house to the HRA. - 225 Front Street/Carlson - Sent introduction letter - Left message on answering machine. - Have not heard :from them. You have said that they are not talking to anyone until they meet with their attorney. - 8 Locust StreetIBostic - Scnt introduction letter - Left mes~e on machine - Spoke to and have arranged a meeting for November 2.2000. . ACQUISITION AND RELOCATION OCT-27-00 FRI 08:37 CONWORTH, INC Ollie Koropchak October 27,2000 Page 2 FAX NO. 6128280568 P. 03 Please give me a call with any qucstion:s. tL Relocation C sl CONWORTH, INC. . . . 11/01/2000 08:04 6124258889 ED OR PAT KAUFFMANN PAGE 01 11617 - 88th Place North Maple Grove, MN 55369 (612) 425-8889 · (612) 425-n91 October 31, 2000 Ollie Koropchak Office of Economic Development Monticello City Hall Monticello, MN 55362-8831 Dear Ollia, I have received your FAX dated 10/25/00 and I am providing the information that you have requested. . I agree with you that the numbers have to be reviewed, as they have changed. I will give to you the new numbers, but I will not be able to give the estimated development costs per unit until I go hack to the homeowners for their final buyout price. Also, I need to redo my bids with the subcontractors. Regarding the $5,000 retainer requested by the city; THIS IS A CITY INITIATED PROGRAM. If you would please speak with Jeff and Rick about this, I think that something could be worked out to put the $5,000 costs into the TIP program if the project comes to fruition. This way it would not be necessary for this fee to be put up in cash now. If all of the above can be accomplished, this will help the city to see that this BLIGHTED HOUSING AREA can be redone with new housing. Please respond to this letter, in writing, as soon as possible. ,...- -..-. ..._.~--_. .. ~~ ..-.-, -- Sincerely, Ed . 3uilding Contractor LIcence No. 20191520 Fax: (612) 425..aa89 , i .:-~-~ ~- ......, -'--. i I I I~ I~ 1 I~ ~ !~ Z ~ 6124258889 . IH.lJ ,,((11: I~\.:l .. JI..'.JI'H.... ... 10/19/2000 07: 02 . - i. '''I I I I . FIFTH STREET --1-- -- --- I I j I I I I ' , " I ....., ,,~ .. _ ".01. .. J L . "f/I>~C I , J I I I 10' .9 ~ c; ~ 0:: 00:[ (,;l N - I ,:~ ----- --- , . Or''''''01' ~ I -....-4 &_-- I I .~ I I ! I - ....... ..... -- - . I ... _.;::. j " ~_n.::':"~, SIXTH STREET ){ ~ '\\ &. 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