HRA Agenda 09-06-2000
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUmORlTY
Wednesday, September 6,2000 -7;00 p.m.
City Hall ~ 50S Walnut Street. Bridge Room
COMMISSIONERS:
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.
Call to Order.
Consideration to approve the lIRA minutes of August 2, 2000.
Consent Agenda.
Consideration of adding or removing agenda items.
Consideration of items added or removed from the consent agenda for discussion.
Continued - Consideration to hear progress relative to research of purpose/o~ective and funding for a
scattered housing program and a motion of action/direction if so necessary,
Consideration to review recommended changes to the HRA Business Subsidy Criteria and call for a public
hearing.
Consideration to review 1999 Authority Report Summary and consideration to prioritize BRA goals and
expenditures,
Consideration to hear an update on high-speed internet access for Monticello businesses and residents and
its importance as a marketing tool. (Steve Andrews)
Consideration to authorize payment of the monthly BRA bills.
Consideration of Executive Director's Report.
Consideration of committee reports:
a) City Council - Stumpf
b) MCP - Andrews
c) Marketing - Barger/Lahr
13. Other Business.
14, Adjournment. Next HRA meeting, October 4,2000.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 2, 2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr, Vice Chair Dan Frie and Brad Barger
Members Absent:
Steve Andrews, Bob Murray and Council Liaison Brian Stumpf
Officers Present:
Treasurer Rick WolfsteIler, Executive Director Ollie Koropchak and
Recorder Lori Kraemer.
GUESTS:
Brad Johnson, Lotus Real Estate
Barry Fluth, BBF Properties
Jay Eller, Twin City Die Castings
Bruce Starook, Twin City Die Castings
1... Call to Order.
Chair Darrin Lahr called the meeting to order at 7 p.m.
2.
Consideration to approve the BRA minutes of .July 5. 2000.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE "10
APPROVE THE MINUTES OF THE HRA MEETING OF JUL Y 5, 2000. Motion
carried.
3.
Consideration of adding agenda items.
6A. Consideration to hear Brad Larson regarding the Amoco site.
4A. Consideration to approve a resolution amendine: the Contract for Private
Development by and between the Authority. the City. and Twin City Die Castings
Companv.
Ollie Koropchak, Executive Director, introduced Jay Eller and Bruce Starook of Twin
City Die Casting, who presented the members with drawings of their revised plans for
their project. Mr. Eller stated that they are over budget by approximately $1 million due
to increased construction costs in order to comply with the fire code plan, and thcref()re
the company elected to revise the construction plans to reduce costs. He stated they
eliminated the helix concept over the office area which would have been metal and
stainless steel depicting that they are in the metal business. Eller stated that they actually
added about 850 sq. ft. more office space
HRA Minutes - 8/2/00
Eller stated that TCDC is going to be adding aluminum as well as magnesium projects,
noting that they have not yet secured a magnesium project. They are hoping to be in
production in mid September and additional people will be hired soon. Eller stated that
personnel from all over the US visited the new site in Monticello and were very
impressed, which has lead him to promote this concept all over the world.
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Koropchak asked the Commissioners to approve the resolution amending the completion
construction date from September I, 2000, to December 1, 2000. Koropchak stated two
issues for the HRA. to be concerned about: First: Timing. The minimum improvements
for Phase I to be completed for a full assessed value of January 2, 2001. Secondly:
Assessed Value. The TI Cash Flow was based on 36,000 square footage facility (Phase I)
and the assessed value of a typical manufacturing facility.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
APPROVE THE RESOLUTION AMENDING II-IE CONTRACT FOR PRIV ATE
DEVELOPMENT BY AND BETWEEN THE AUTHORITY, THE CITY, AND TWIN
CITY DIE CASTINGS COMPANY. Motion carried.
5. Consideration of items removed from the consent agend11 for discussion.
Koropchak removed item 4A from the consent agenda.
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6.
Consideration to hear a conce{ltuaI plan for redevelopment of the Amoco West
Broadwav/plus site and a motion authorizing execution of a Preliminary
Development Al!reement between the HRA amd Barry Fluth.
Ollie Koropchak, Executive Director, reminded the members that this item was tabled at
the July 5 ERA meeting. Koropchak provided supporting data from the July meeting
agenda and reminded the members of the importance on keeping this project on a timely
progression because of the five-year knock out rule ofJune 2002. Koropchak also noted
the desire to include some other properties with the current Amoco site.
Brad Johnson, Lotus Real Estate, provided information on their concepts/ideas for this
site. The Amoco site would be a 2-story structure with about 7 to 8 apartments with the
lower level designed for office or retail with approximately 5,700 sq. ft. He stated that
this would be the first phase of the project. Phase II consisting of 4 to 8 townhouse units
with 4 accessory units.
Brad Johnson and Barry Fluth are asking the lIRA to sign a preliminary development
agreement with them for a determined period of time whereas the City would work
exclusi vely with Johnson and Fluth on the development of this project. Koropchak
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HRA Minutes - 8/2/00
advised that it is recommended by Attorney Bubul to use the Preliminary Development
Agreement typically used by the HRA. Section 6 of the agreement defines the effective
date of the agreement which can be extended later and Section 9 grants exclusive rights.
Project cost and TIF cash flow analysis by our consultant firm would be covered by the
$5,000 deposit and keeps the project moving forward.
Discussion involved the time period for this project which was stated to be approximately
3 to 4 months which would put it at early spring.
Brad Larson addressed the HRA noting his involvement in various revitalization projects
within the City. He noted that Dan Carlson was also interested in rehabing the Amoco
site and asked that if the HRA is looking solely at Brad Johnson's proposal there needs to
be a sunset date. Larson also suggested that if the HRA is looking more at an
owner/occupant of this site they should contact Dan Carlson.
The members stated that owner/occupied is desirable and also that what Johnson & Fluth
have proposed is desirable to the City Council. EDA and local lenders. Larson supported
the HRA concept of a larger project than just the Amoco Station. The HRA also
suggested the two parties look for a potential win/win situation for both interested pmiies.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
AUTHORIZING EXECUTION OF A PRELIMINARY DEVELOPMENT
AGREEMENT BETWEEN THE HRA AND BARRY FLUTH (MASTERS FIFTH
A VENUE INC.) WITH AN EFFECTIVE DATE OF DECEMBER 2,2000 AND A
$5.000 DEPOSIT. Motion carried unanimously.
]4.
Adjourn.
Dan Frie was excused from the meeting at 8: 15 p.m. Items 7 through 11 were tabled as
there was no longer a quorum and the meeting was adjourned at 8:25 p.m.
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HRA Chair
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Recording Secretary
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6.
BRA Agenda - 9/6/00
Continued - Consideration to hear provess relative to research of puroose/obiective
and (undine for scattered housin, Drocram and a motion of actionidirectio~ if so
necessary.
Update by Commissioner Frie.
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BRA Agenda ~ 9/6/00
7.
Consideration to review recommended chanees to the BRA Business Subsidy
Criteria and call for a Dublic hearin:.
A. Reference and backeround:
Previously, the HRA commissioners directed the HRA Attorney to draft changes to the
HRA Business Subsidy Criteria increasing the wage level to at least $9.00 per hour
exclusive of benefits and other changes for compliance of the most recent adopted
legislative changes.
Attached is a copy of the criteria with the proposed changes. Attorney Bubul suggestion
is to insert ..... wage of the higher of $9.00 per hour, or at least 160% of the federal
minimum wage ....... The language of the higher allows for future changes should the
federal minimum wage. Remember the 160% of the federal minimum wage is part of the
TIF Green Acres Law. Other suggestions for compliance of Minnesota Statutes.
Action needed by the HRA if satisfied by the recommendation is to call for a public
hearing to amend the criteria.
B. Alternative Action:
1.
A motion calling for a public hearing of October 4, 2000, for adoption of a
resolution amending the Business Subsidy Criteria for the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota.
2. No action.
3. A motion to table any action.
C. Recommendation:
Recommendation Alternative No.1.
D. SupDortine: Data:
Copy of the proposed changes to the criteria as drafted by Attorney Bubul
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MONTlcatO
BOUSING AND REDEVELOPMENT AutHORITY
IN' AND FOR THE ctn' OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Bearing and Adoption the 8th day of Seotember ,1999.
1. Pt..1RPOSE
1: 0 1 The purpose of this document is to establish the Housing and Redevelopment Authority' s
criteria for granting of business subsidie~ as defined in MiMesota Statutes 1161993.
Subdivision 3, for private development This criteria shall be used as a guide in processing
and reviewing applications requesting business subsidies.
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The criteria set forth in this document are guidelines only The Housing and
Redevelopment Authority reserves the right in its discretion to approve business subsides
that vary from the criteria stated herein if the Housing and RedeveJppment A!1thoritY. .
determines that the subsidy nevertheless serves a public pwpose.1llc AvJMr.t, w.l\ ~!IE' Jvi~CI
~6JIy tI..Vfd-:,." ~-\ki(. Crl\Mtl) ~ .U... ~~,;. 1;oka..& E{,t..-t).v~ ~ ~(~
The Housing and Redevelopment Authority may amend the business subsidy criteria at 'UJ~~
any time. Amendments to these criteria are subject to public hearing requirements ~.. SW,
pursuartt to Minnesota Statutes, Sections 1161.993 through 1161.994. 1"_ 1.. Io~ tiq'"
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STArotORY LIMITATIONS J~~. 1..,
In accordance with the Business Subsidy Criteria. Business Subsidy requests must comply
with applicable State Statutes. The Housing 8Dd Redevelopment Authority ability to grant
business subsidies is govemed by the limitations established in Minnesota Statutes
116J 993 through 1161.994_
PUBLIC POLICY REQtJlREMENT
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All business subsidies must meet a public purpose ether limn increasing the tax base. Job
retention may only be used as a public purpose in cases where job loss is imminent and
demonstrable.
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Mon[.cello City Hall. ~50 E. Br'l'loldway. PO Box 1147. Monticello. MN 55362-924.5. (612) 295-2711 . Fa:r; (612) 295.4404
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lIRA Business Subsidy Criteria
4.
BUSINESS SUBSIDY APPROVAL CRITERIA
4'01
All new projects approved by the Housing and Redevelopment Authority should meet the
following minimum approval criteria. However, it should not be presumed that a project
meeting these criteria witt a.utOt\18.tieally be approved. Meeting these criteria creates no
contractual rights on the part of any potential developer or the Housing and
Redevelopment Authority.
4:02
The project must be in aceord with the Comprehensive Plan and Zoning Ordinances, or
required changes to the plan and ordinances must be under active consideration by the
City at; the time of approval.
4:03
Business subsidies will not be provided to projects that have the tinancial feasibility to
proceed without the benefit of the subsidy. In effect, business subsidies will not be
provided solely to broaden a developer" 5 profit margins on a project.
4: 04 Prior to approval of a business subsidies fit1ancing plart and when deemed appropriate by
the Housing and Redevelopment Authority, the developer shall provide any required
market and financial feasibility studies, appraisals, soil boring. infonnation provided to
private lenders for the project, and other infonnation or data as requested.
4:05 A recipient of a business subsidy must make Il commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
5. TAX INCREMENT PROJECT EVALUAnON ClUTERIA
5:01 The Housing and Redevelopment Authority wm utilize Tax Increment Financing to
support the community's long-tenn economic, redevelopment, and housing goals.
5.02 Each Tax Increment Financing subsidy wilt be analyzed and evaluated by the Housing and
Redevelopment Authority. Each project shall be measured against the general criteria in
Sections 1 through 6 and the specific criteria in this Section 5 applicable to tax increment
financing business subsidies.
5:03 Following are the evaluation criteria that will be used by the Housing and Redevelopment
Authority
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Business Subsidy Criteria.
All business subsidy requests shall meet th ut for" test. The "but for' test
means that the project would not develop olely on private investment in the
reasonable future. The developer shall rovide findings for the &"but fot'" test.
Business subsidy requests should cr e the highest feasible number of jobs on site
from date of occupancy where d a.ppropriate.
c.
For manufacturing and warehou business subsidy requests. at least 90% of the
jobs created must pay a wa.ge 0 least 160% of the federal minimum wage
requirement for individuals ovet the age of 20. Annual written reports are required
until termination date failure to meet the job and wage level goals require partial
or fun repayment ofthe assistance with interest.
D.
F or other business subsidy requests, jobs created must meet as a minimum the
federal minimum wage requirement. Annual written reports are required until
tennination date. Failure to meet the job and wage level goals require partial or
full repayment of the assistance with interest
All business subsidy requests should create the highest possible ratio of property
taxes paid before and after redevelopment.
F. Business subsidy requests should facilitate redevelopment or elimination of
"substandard" or "blighted" areas where deemed appropriate.
E.
G. Business subsidy requests should facilitate the "clean-up" of environmentally
unsound property where deemed appropriate.
H. Business subsidy requests should m<;TeUe moderate priced housing options for
area residents where deemed appropria.te
t. All business subsidy requests should be deemed to promote additional desired
<<spin-off" development.
1 All business subsidy requests should demonstrate "community involvement"
including demonstrated degrees ofthe various factors:
a.) Local residency of the company's owners and employees. or
b} Local residency of the contractors involved in the project. or
c) Membership in local business organizations, or
d) Other similar factors.
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HRA Business Subsidy Criteria
PROCEDURES
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Meet with appropriate Staff to discuss the scope of the project. public participation
being required. and other information as may be necessary.
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The request shall be reviewed by Staff on a preliminary basis as to the feasibility of
the project.
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The project concept shall be placed on the Housing and R.edevelopment Authority
agenda for concept review. the applicant will make a presentation of the project
StafFwill present its findings.
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If the Housing and Redevelopment Authority's concept review is positive. Staff
will provide the City Council with an infonnational concept review.
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The applicant will execute and submit the PreUminary Development Agreement
accompanied by a non.refundabte fee ofS5.000.
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Building and site plans submitted to the Chief Building Official
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If Planning and Zoning Commission action is required, it will be necessary for the
applicant. at this time, to make application to the Commission.
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Staff will authorize the following steps:
. Preparation for establishment of the Tax Increment Finance District and the Tax
Increment Financing Plan if required.
. Preparation ofthe Private Redevelopment Contract (Subsidy Agreement) based
upon agreed terms.
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When action is required for the Tax Increment Finance Plan. Private
Redevelopment Contract, or Zoning/Ordinance~ the Housing and Redevelopment
Authority. Commission. and City Council shall take appropriate a.ction such as
publiC hearings and consideration of approva.ls
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Building pennit issued after the Tax Increment Finance District and Plan is
approved by City Council the Private Redevelopment Contract is executed by the
developer and the Housing and Redevelopment Authority. and the Building Permit
Fees are paid.
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BRA Agenda - 9/6/00
8.
Consideration to review 1999 Authority Summary Report and consideration to
prioritize BRA eoals and eXDenditures.
A. Reference and Backeround:
The attempt of the agenda item is two fold: One, to identify dollars available to the BRA
for development or redevelopment. Secondly, to define and prioritize HRA goals and
expenditures.
HRA objectives: Industrial land acquisition, downtown redevelopment, and scattered
housing.
Authoritv Report Summary identifies difference between Authority reports to State
Auditor and Finance reports, projections, and balances by districts.
SUmmary of tax increment available for development and redevelopment proiects. This
identifies revenue from districts decertified, excess revenue from older redevelopment
districts which have no pooling restriction, and suggests districts for decertification in
2001. Although the Authority report and Finance report have some discrepancies, these
differences will not impact the excess revenues suggested for expenditures. The
suggestions were reviewed with the lIRA Attorney.
It is important for the HRA to eannark the tax increment from District No. 1-5 as the
bonds are paid and to assure the HRA of the use of the dollars and to avoid retwn of
dollars to the County or to decertifY. Perhaps, its time for the HRA to prioritize its goals
and expenditures within the downtown district given the need to expend funds by June
2002. The liRA has treated each project within the downtown district on its own merit.
Eligible expenditures acquisition, demolition, relocation costs, site improvements, public
improvements, and public utilities.
To date and within the downtown district, the HRA authorized expenditures for
demolition, relocation, and site improvement costs associated with south anchor, 75% of
sidewalk cost along Walnut Street between 4th street and community center and pathway
development along railroad track from Locust or Linn Street to Walnut Street associated
with Sunny Fresh expansion, acquisition of homes within north anchor, and $11,250
annually toward community center.
liRA decisions - Define HRA goals and earmark excess TI revenues.
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SUMMARY EXCESS TAX INCREMENT AVAILABLE
District 1-5 $60,000 annually X 12 years"'" $ 720,000
Construction Five
District 1-22 $33,750 annually X 20 years "'"
Downtown (First $45,000 less $11,250 Community Center commitment)
$ 675,000
Total
$1,395,000
Could use to finance bond, Guess $725,000 NPV.
Decertification
Dist 1-7 NAWCO
Dist 1-8 NSP
Dist 1-9 Tapper
Dist 1-10 Remmele
Dist 1-11 Marties
Dist 1-16 Polycast
($20,000)
$19,704
even
($5,000)
$ 5,790
$20,041
From 1-5 or 1-6
For mfg
$27,898 TI Defto General
From 1-5 or 1<%
For mfg
Back to County
200 1 Decertifications
Dist 1-12 Aroplax
($21,500)
$17,797,80 TI Def to General
Check Letter of Credit
Or from 1-5 or 1-6
Back to County
Dist 1-18 River Mill
$124,997
Management
Dist 1-2 Metcalt7Larson
Dist 1-6 Raindance
Dist 1-12 Standard Iron
Check
Excess over debt
Excess over debt (potential early decertification to avoid penalty)
Local Contributions
BRA General Fund Balance $362,064 less local contributions of$19,179.85. This assumes
$25,000 for Gille previously recorded,
Previous commitment: $150,000 for industrial development,
$37,500 public improvements,
City General Fund
Less $467,369.98, Assumes $40,000 recovered from State Grant
(TCDC) and assumes $417,758.13 reported for interceptor
relocations and land acquisition for community center (Downtown).
.
.
.
City Aid Reduction through 1999
Aroplax
Custom Canopy
Polycast
SMM
Standard Iron
Fay-Mar
TOTAL
Recovered
$48,197
$23,162
$19,211
$26,570
$100,591
$24,260
$241,991
$ 16,585.10 Loan to City
$ 9,706.36 Payment to City
Early Decertification
$24,657.64 Loan to City
Check for early decertification
Need to switch
$150,000 Pledge from HRA General
for industrial land.
$37,500 Pledge from HRA General
for public improvements
$238,449.10 TOTAL
.
.
.
BRA Agenda.. 9/6/00
9.
Consideration to hear an update on hip..speed internet access for MonticeDo
businesses and residents and its imoortance as a marketinl! tooL
Steve Andrews will inform the commissioners on the availability of high-speed access in
Monticello. The importance of its access as a marketing tool and the benefits to
businesses and residents.
1
.
.
.
BRA Agenda - 9/6/00
10.
Consideration to autborize payment of tbe montbly BRA bill~!
Recommendation to authorize payment ofbilIs. You will note the invoice from Ehlers is
for the amortization schedules run for Internal Loans and pay~as-you-go notes. It is my
suggestion stafflook into a program for the city to purchase as these schdules will be ran
annually because of the inconsistency of annual tax increment received.
1
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
.
August 10, 2000
Professional Services
\-\~~
(1-~j
';~~
Invoice # 17573
MC100~01 GENERAL
Hours Amount
7/11/00 MTR
7/17/00 MTR
MTR
7/18/00 MTR
7/25/00 MTR
7/31/00 RC
MTR
Discuss reporting with Ollie
PAYG runs
PAYG notes
Discussions with Ollie
PAYG
Reporting questions
350k run
0.50
1.25
100
0.50
1,00
2.00
0.75
62.50
156.25
125,00
62.50
125_00
250.00
93,75
Total Due This Month:
7,00 $875,00
Status of Account:
.
Current
--,.,....--
$875,00
30 DC3ys
$0,00
,,~Q Days
$0,00
90 Days
$0.00
12Q:,:, Days
$0,00
Total
$S75,00
OK TO PAY?
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
.
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697,8500
... -...-----..-...--------
CKS 08/11
CITY OF MONTICELLO
GENERAL FUND AlP
505 WALNUT ST., SUITE 1
MONTICEllO, MN 55362
763.295-2711
75-1664
---g;()
NO.
61544
.. 08/ ~17 2000 CHg)~~4
TW~THOUSAND FIVE HUNDRED THIRTY EIGHT AND 47/100 DOLLARS
MARQUETTE BANK - MONTICEllO
P.O. BOX 729
MONTICELLO, MN 55362
763-295-2952
A~~U,N5 3 8 . 47
PAY TO
THE
ORDER
OF
LARRY SCHLIEF
PERS REP-EST OF HELEN SCHLIEF
142 KAMPA CIRCLE
MONTICELLO MN 55362
.,. "I-'
,':;~~~~'.::,.::':,..:::.,
r :;z. tv, .............
.\~t:t. :":.:.:.:.:~::':>- ':',:/:':::
. .' ., , .. . - .'~'.'n,"~~_~
/110 b . 5 .... .... /II I: 0 11 .0 . b b .... 71:
7 bOO O. 7 III
ENDOR 001619 LARRY SCHLIEF
08/11/2000
CHECK
61544
.:lifliIllIHI
P.O. INVOICE DESCRIPTION I AMOUNT
13.46522.5101
08-18-2000
TIF 1-22SCHLIEF CFD
2,538.47
.
TOTAL
2,538.47
CITY OF MONTICEllO
.
'Cts0811:1, ,"
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.
.
.
.
BRA Agenda - 9/6/00
11. Executive Director's Report.
a) Hans Hagen Homes - I took the liberty to invite Hans Hagen, home builder, to
Monticello to meet with staff and a couple of BRA commissioners. Mr. Hagen was very
receptive to the invitation and Jeff, Darrin, Dan, and myselfmet with Hans on August 23
to introduce Hans to Monticello's revitalization plan and particular the redevelopment
area of the north anchor (Block 54). Hans informed the group to housing trends and
growing amenities and stated he only does brick facade homes today. No commitments
were exchanged; however, as indicated by Hans letter he was very interested in working
with the HRA. The group indicated the desire for up-scale housing, owner~occupied.
As noted the group will reconvene in a couple of weeks to review the Hans Hagen
concepts. This is very preliminary and no need to arouse residents of Block 54. The
invitation included a tour of Monticello. Hans Hagen Homes constructed the rental town
homes in Maple Grove next to the new town development.
b) Amoco+ site - The Preliminary Agreement (120~day exclusive right) was executed and
the $5,000 deposit received from Barry Pluth. The approach being used by the developer
is first to obtain appraisals of the three parcels prior to contacting the property owners.
The developer did inquire as to the HRA's willingness to pay for the appraisals if the
project doesn't move forward. Because lIRA appraisals are confidential until after an
agreement is signed and generally speaking, the liRA obtains new appraisals if older than
a couple of years, the response was the BRA would not pay for the appraisals. The
developer has mentioned if the three parcel project is not feasible, they may proceed with
the Amoco site only.
c) Farrell Gas site - Silver Creek Development withdrew from the project. The city is
contacting other developers and continues conversation with Silver Creek.
d) EDA ~ August 29, the EDA approved two facade improvements for the Preferred Title
building and Sweetest Things (previous Companion Pets building) on West Broadway.
e) IDC Banquet - Tuesday, September 26, Vintage Grill. Wine tasting and guest speaker:
S1. Paul Mayor Norm Coleman. Tickets going out this week.
t) Rotary presentation - Koropchak presented wage, job creation, HRA return of
investment, and other Monticello demographics to the Rotary Club on August 14. The
presentation was well received.
g) Rita ~ Koropchak wilt be meeting with Rita (previous MCP Director) and other
neighbor representative on September 5. Rita's delegation will hear of the downtown
revitalization efforts (design guidelines and EDA funding guidelines.)
h) 2001 City Budget - Budget time is in process and the Council and statfhas met once,
There were no request for additional funds for industrial acquisition or marketing. Non~
funded request from previous years for scattered housing was mentioned.
i) Profile - Copy ofletter and reimbursement check.
j) Industrial inquiries slow this month,
k) 25-30 brochures mailed.
.
August 24,2000
Ollie Koropchak
Monticello Economic Development
505 Walnut Street, Suite 1
Monticello, MN 55362-8831
.
Dear Ollie:
Thank you for the tour of Monticello and the opportunity to become a part or your
redevelopment plan. I will work on some concepts the next 2 or 3 weeks and call you to review
:: i:;~~")
/"
\\ CL')
.
941 NE Hillwind Road Suite 300 · Minneapolis, Minnesota 55432 . Fax 763/572-9417 Phone 763/586-7200
.
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August 18, 2000
MONTICELLO
Mr. Steve Dejong
Profile Powder Coating, Inc.
21050 Commerce Blvd.
P. O. Box 69
Rogers, MN 55374-0069
Dear Steve:
.
Enclosed you will find a check in the amount of$957.65, the difference between the required
HRA deposit of $5,000 and the incurred HRA expenses of$4,042.35. Upon your decision to put
your expansion plans on hold for one year, you requested reimbursement of the unpaid deposit
balance. My apology for the delay. The legal invoice from Kennedy & Graven for preparation of
the first draft of the Contract appeared high, so I inquired and an adjustment was made which
caused a delay of the HRA refund. These costs were associated with the preparation of Tax
Increment Finance District No. 1-27 and the preparation of the Contract for Private Development
between J. 1. Company, LLC and the HRA.
Also attached are copies of the invoices and a summary. Should you have any questions, please
call me at 763-271-3208.
I plan to contact you to arrange a time to visit and view the new process operation at your
existing facility. The City of Monticello looks forward to working with you for a continuation of
your planned expansion in Monticello.
Sincerely,
CITY OF MONTICELLO
~ 9- 0 . . 0...)
~~&~
Ollie Koropchak
Economic Development Director
cc:
Rick Wolf steller, Administrator
Jeff O'Neill, Deputy Administrator
File
\ l ~J
.
Monticello City Hall. 505 Walnut Street, Suite 1, Monticello, MN 55362-8831' (763) 295-271 I. Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 · (763) 295-3170' Fax: (763) 271-3272
SUMMARY OF INVOICES
. Revenue
Initial Deposit (Check #25438) April 5, 2000 $5,000.00
Expenditures
Kennedv & Graven (Legal Consuhant)
April 30, 2000 $3,306.10
May 31,2000 $ 167.25
Subtotal $3,473.35
Less adjustment of August 11,2000 $ 871.00
Total Legal Consultant $2,602.35
Ehlers & Associates (Financial Consultant)
April 10, 2000 $ 105.00
May 10, 2000 $ 210.00
June 9,2000 $1,125.00
T ota! Financial Consultant $1,440.00
. Less Total Expenditures $4,042.35
REFUND AMOUNT, August 18, 2000 $ 957.65
.
GEN CI<S 08/25
CITY OF MONTICELLO
GENERAL FUND AlP
505 WALNUT ST., SUITE 1
MONTICELLO, MN 55362
763-295-2711
. DATE
08/25/2000
NINE HUNDRED FIFTY SEVEN AND 65/100 DOLLARS
PAY TO
THE
ORDER
OF
.
.
PROFILE POWDER COATING INC
21050 COMMERCE BLVD
PO BOX 69
ROGERS MN 55374
1110 b . 7 . hi .: 0 11 .0 . b b .... 7.:
75-1664
910
NO.
61711
MARQUETTE BANK - MONTICEllO
P.O. BOX 729
MONTICELLO, MN 55362
763.295-2952
AMOU1'lT
~957.65
CHECK NO.
61711
7 bOO O. 7 III
Lori Kraemer
From:
~ent:
"0:
Subject:
Steve Andrews [stevea@FINTEGRAcom]
Monday, July 31, 20008:20 AM
'joneill@uslink.com'; 'econdev@ci.monticello.mn.us'
High-speed Internet access increasingly separates the haves from the have-nots in outstate
Minnesota. ,
\! ~<-- C\.. \j a.. ; \ c... ~
High ~ "'- <; V'n. o..U.., ~
~Jt~b~~~
"\ - 0 yv- 'S..Q-L~- '; & <.---0..
Importance:
SON~
i .,..n
C\ \.r; o-r -
A TTOOOOO.html
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Please take a minute to read this if you did not see it in this Sunday's
paper. It seems to me that it's important for Monticello to have
affordable high-speed Internet access and this really drives the point
home.
Maybe Monticello should have a small group working on getting this
service in place I'd be glad to coordinate.
Steve Andrews
585-0503
steve@fintegra.com <mailto: steve@fintegra.com>
_tartribune.com
<http://www.startribune.com/g raph ics/ids/id _metro _ffffff. g if>
Related item(s)
<http://www.startribune.com/technology/> More technology news, links
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Ad1D=3001 &GroupI0=11 &FamilyI0=244& TagValues=275&Redirect=http:%2F%2Fwww,
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rtribunecom%2Fclassifieds> Classifieds Ads Half Price
Two cities tell tale of Net divide
Mike Meyers
Star Tribune
Sunday, July 30, 2000
Architect Bruce Buxton and artist Mike Hoft work with much the same
tools: computers and imagination. They make their livings in similar
surroundings: towns where the tallest silhouettes belong to grain
elevators
Buxton draws building plans in Crookston, in a flat stretch of northwest
_innesota's grain belt that is home to more pastures than people. Hoft
eates advertising posters in Marshall, a southwest Minnesota town best
nown as the home of Schwan's, one of many companies that make foods
from the corn, milk and poultry from nearby farms
<http://www.startribune.com/viewers/qview/cgi/qview.cgi?template=metro _a
_cache&slug=1wire30b.stnd> National -- from Marshall
Mike Hoft uses the Internet to send graphic displays from Marshall,
Minn.
e,arshall sits 250 miles south of Crookston, but it is a million miles
ahead in the ability to communicate with the outside world and make
money doing it
High-speed Internet access increasingly separates the haves from the
have-nots in outstate Minnesota.
In an era when the population decline in the rural Midwest has
accelerated, the ability to quickly send large streams over the Internet
can shape a community's economic fate as much as access to highways,
rail lines or airports.
The Pony Express could have ridden blueprints to construction sites
almost as fast as Buxton can get them there. The telephone connection
from his Crookston office lumbers along so slowly that it's easier to
deliver drawings in person than over the Internet
Transferring a 30-megabyte file, the equivalent of 30 paperback books of
600 pages each, can take half the morning. If the process is interrupted
by telephone line trouble, which often happens, the task must be started
over.
Hoft doesn't leave his office to get his poster illustrations to clients
thousands of miles away. Press a button, and the artwork -- in the form
of computer files as voluminous as the architect's blueprints __ is
transmitted in four or five minutes.
Vital bandwidth
Rural Minnesota is dotted with towns like Crookston, isolated by
_utdated telephone service, and towns like Marshall, where people and
usinesses are using leading-edge communications technology every day.
andwidth -- whether electrons travel between pOints in a wide or narrow
stream -- makes the difference.
Towns with first-rate telecom service, such as Marshall (population
12,686), often are within the territory of specialized telephone or
cable companies that for years have carved a niche in rural markets.
Tied to the fate of their rural customers, these firms chose to make a
big investment in telecom technology.
Harry Weilage, Marshall's director of community services, estimates that
Charter Communications and Mcleod USA -- both providers of high-speed
Internet service in his town -- have spent as much as $20 million on
cable and telephone hardware. The role of town officials was to convince
local providers that a market for high-speed access existed in a remote
community.
"Not a nickel in pUblic money was involved," Weilage said. "Public
involvement doesn't mean we're taking something from the taxpayer."
Towns without modern telecom service, such as Crookston (population
8,137), frequently are within territories of larger phone or cable
companies that are installing costly high-speed Internet access first in
heavily populated areas where the return on investment is greater.
Some companies cut deals for custom-designed, private high-speed lines
to the Internet, buying the service from whomever they can find to
string the wires. But the costs can be astronomical and the service
unreliable If the goal is to connect with branch offices in other rural
.ommunities that also lack readily available wideband service, the
pense and complexity are multiplied
Qwest's plans
2
*
US West, merged into Qwest Communications this year, is the company that
serves Crookston. For three years it has told residents that high-speed
Internet access will come in "one more year," Crookston Mayor Don
Osborne said. He said he envies communities served by private companies
that rise or fall with the health of their rural customers.
erookston someday will get high-speed Internet access, but Qwest now
says the wait may be more than a year.
"Crookston is one of 13 cities that Qwest has guaranteed will have
high~speed Internet access within 21/2 years," said Bryce Hallowell,
Qwest spokesman.
The plan is part of a deal the company struck with the Minnesota Public
Utilities Commission and Minnesota attorney general's office in
negotiations that led to approval of the US West-Qwest merger.
Connecting rural Minnesota to the Internet at high speed is a big job
that involves installing new hardware, computer software and switching
equipment, Hallowell said Qwest plans to spend $170 million and hire
500 technicians to install high-speed service throughout Minnesota, he
said.
"You name it, we're going to look at solutions to help close the digital
divide, to give our customers the service they want and, frankly, the
service they deserve," Hallowell said.
"One of the benefits of the merger is the old attitudes of US West are
by the wayside. We're looking at this as a new day"
If the Internet can shrink the distance between farm towns and
everywhere else, people may be able to stay in the countryside and still
find jobs and customers But if outdated telephone service makes
Internet connections clunky and balky, rural Minnesota could dwindle
faster as businesses in those communities become less competitive in a
wired world
& we don't get it, we're not going to survive," said Osborne, the
~'rookston mayor, who says he has been frustrated by years of waiting for
high-speed Internet access.
Company needs
Mike MacDonald, who works for the city on economic development, said
companies that might consider opening an office, factory or warehouse in
Crookston scratch the city's name when they learn there is no high-speed
Internet service.
*
"You can't recruit companies that need high-speed links," MacDonald
said. And these days, he said, that includes just about every company.
Less than two miles from city hall, the Crookston campus of the
University of Minnesota is an oasis of high technology. Each of its
1,500 students carries a laptop and all have access to high-speed
Internet connections.
Although the university is planning a small "incubator" for start-up
companies in need of the fastest possible Internet access, the
university is barred by law from providing the service to the nearby
community
"I don't know of any company that isn't using or soon will be using
high-speed access," said Jerry Nagel, president of Northern Great
Plains, a rural development organization based in Crookston.
"If access isn't available soon, they'll make decisions about locating
.sewhere or expanding elsewhere," Nagel said.
~roposals by Gov. Jesse Ventura and leaders of the Legislature to ensure
that all of Minnesota is wired for 21 st century commerce and
communication went nowhere in the past legislative session.
3
Ventura's proposal would have revised telecommunications regulations and
offered state money to help communities without high-speed Internet
access band together to build local communications networks. But the
proposal -- as well as competing proposals from legislators and US West
. became deadlocked in wrangling between administration officials and
gislative leaders .
Minnesota Planning Director Dean Barkley said the Ventura administration
will try again with a similar proposal next January. He and other
administration officials will spend the summer talking with legislators
and rural business and community leaders to build consensus on a state
telecom policy.
Legislative solution?
"Telecommunications is probably the number one concern of rural
communities," Barkley said. "We don't care whose solution comes, but we
want to solve the problems of access and costs."
Eventually, all Minnesota communities will have high-speed access to the
Internet, Barkley predicted. He said many may never use telephone or
cable TV wires to obtain it. Wireless Internet service might be the
solution for the smallest, most remote communities, he said.
As Ventura and legislators huddle this summer about what to do next,
people in communities with high-speed telecom connections to the
Internet say their experience convinces them that the technology will be
a blessing for the boondocks.
Schwan's, the Marshall-based food company, has been using a high~speed
linkup for years to keep in touch with its sales force, vendors and
customers. The company's Web site offers the kind of push-button
ordering available at firms in urban areas.
The company is experimenting with a "virtual private network" that will
.= lIow workers with high-speed Internet connections at home to work
ithout going to the office -- a benefit for a sales force scattered
across the nation or for executives who want to check e-mail or
spreadsheet data at night, said Diane Miller, Schwan's director of
information services.
Those waiting for their telecom connections to speed up say they're
paying a high price.
"It takes forever for us to do something on the Internet," said Buxton,
president of Wideth, Smith and Nolting in Crookston. In much of
northwest Minnesota, Internet access creeps along at one-tenth the speed
of nimbler telecommunications links elsewhere in the state.
"What we sell is time, knowledge and expertise," Buxton said. 'If we can
be more efficient, we succeed. If we're inefficient, we're not going to
be making any money'
Easier to compete
Hoft, at CAMedia Inc., can attest to that. Before he got high-speed
access to the Internet last year, Hoft found many customers simply
wouldn't accept computer files sent at a speed of 56 kilobytes per
second, the fastest speed for a dial-up connection.
Transferring files at 20 times that speed today, Hoft said his
four-person firm can compete with artists in New York, Los Angeles and
other advertising centers.
"It's the difference between doing business and not doing business on
.e prairie," Hoft said. .
- Many times, the difference between being a have and a have-not town, In
terms of high-speed links to the Internet, is an accident of history.
4
"Areas with private phone service are getting a big jump on us," said
Osborne, Crookston's mayor.
In Marshall, with two providers competing for high-speed customers,
businesses have service equivalent to that of their urban rivals.
eake the Minnesota Corn Processors, a cooperative with 350 employees in
Marshall and 875 workers nationwide It has about 175 more employees
than five years ago, thanks in part to Internet strategies that keep the
business in timely contact with customers and growers, closely matching
supply with demand.
The ability to send large streams over the Internet quickly means money
to the co-op, said Roger Evert, vice president of human resources.
"The more bandwidth, the more quickly you can do things, the more
dollars you can save on inventory," Evert said.
For instance, the co-op plans to use the Internet to monitor the
inventories of beverage and baking customers, with automation that is
not possible without fast computer connections 24 hours a day, seven
days a week.
"When customers are running short, we'll know it and send them the
product," Evert said.
In Crookston, that kind of emerging technology is no more than a dream.
Rob Jacobson, president of Bremer Bank, said he's worried about where
his new customers will come from if new businesses bypass Crookston in
favor of places with better communications.
"If you need a direct link to the rest of the world, it gets very, very
expensive," Jacobson said. "Small start-ups can't afford it."
The price can be a burden even for established companies.
.ustom service costly
Tom Miller, at Dahlgren & Co. in Crookston, is paying $2,000 a month for
custom high-speed Internet access -- 10 to 20 times what businesses are
paying for quick access to the Net in Marshall.
But even with a high-priced connection the company commissioned about
five years ago, the service is prone to failing, especially in rainy
weather.
"It's fruitless and frustrating," said Miller, international trade
manager at the company, a $55-million-a-year sunflower seed and soybean
business with customers around the world.
At 7 a.m., Miller is at his computer terminal checking the price of .
deutsche marks in Germany A change of a couple of pfennigs could alter
the outcome of a deal. 'It's the difference between a profit and a
loss," Miller said.
But when his custom Internet connection fails, Miller knows his
competitors don't share his troubles. As far away as China, Argentina
and India, seed companies are using cutting-edge manufacturing
technology and high-speed Internet connections to gain competitive
advantage.
"Other countries are leap-frogging us in technology and we're sitting
here saying, 'Gee, we need a new phone wire,'" Miller said.
A seed company may seem to be less than high-tech, but to trade all over
.e world Dahlgren needs to fill out stacks of forms for customs
fficials in every country where the company sells seed. On domestic
orders, the paperwork is even more complex to ensure that every truck
leaves the Dahlgren dock fully laden with exactly what the customer
ordered.
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Those tasks these days are handled by computer, but Internet access is
the bottleneck that can slow or stop the process and cost Dahlgren time
and money, Miller said.
_the company could start fresh, Dahlgren would locate somewhere else,
here Internet connections are solid and fast, Miller said. Instead,
ahlgren is spending millions to upgrade manufacturing equipment in a
Crookston plant that opened in the mid-1950s and is hoping that the
community's phone service catches up soon.
Less than a mile from Dahlgren, a plastics company called Phoenix
Industries struggles with similar problems.
"We're embracing technology in a big way," said Jeff Burgess, Phoenix
chief executive. The company is spending $1.5 million to modernize the
way it makes plastic parts for buses, trucks and boats.
Computer-run robotics will trim parts precisely to specifications and
giant air scoops will clean the dust from the air, both making life
easier for the company's 115 employees.
But communications links to the outside world are strictly 1980s
vintage. Dial-up modems make a chore of sending hefty files of data used
in design between customers and the factory.
"If they want to send us a long file, we ask for them to burn it on a
disk and mail it to us," Burgess said. "We need to move rural Minnesota
into the 21st century."
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