HRA Agenda 07-05-2000
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 5, 2000 - 7:00 p.rn.
City Hall - 505 Walout 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 Wolf steller, Executive Director Ollie Koropchak, and Recorder Lori
Kraemer.
GUESTS: Brad Johnson, Lotus Real Estate
Barry Fluth, BBF Properties
Larry Olson, Metro Plains
Call to Order.
Consideration to approve the HRA minutes of June 7, 2000.
Consideration of adding agenda items.
Consent Agenda.
Consideration of items removed from the consent agenda for discussion.
Consideration to hear a conceptual plan for redevelopment of the Amoco West Broadway/plus site
and a motion authorizing an exclusive 60-day right to work with Developer Brad Johnson.
7. Consideration to hear renewed interest for redevelopment of the Klucas property as affordable
housing and a motion of intent for use of TIF.
8. Consideration to hear progress relative to research ofputpose/objective and funding for a scattered
housing program and a motion of action/direction if so necessary.
9. Consideration to discuss amending the wage requirement within the Business Subsidy Criteria of
the HRA and a motion requesting the City Council call for a public hearing.
10. Consideration to authorize payment of the monthly BRA bills.
11. Consideration of Executive Director's Report.
12. Consideration of committee reports:
a) City Council - Stumpf
b) MCP - Andrews
c) Marketing - Barger/Lahr
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Other Business.
Adjournment. Next HRA meeting, August 2, 2000.
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HRA Minutes - 6/7/00
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 7,2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr, Vice Chair Dan Frie and Brad Barger
Bob Murray arrived at 8 PM.
Absent:
Steve Andrews and Council Liaison Brian Stumpf
OHicers Present:
Executive Director Ollie Koropchak, Deputy City Administrator Jeff
O'Neill and Recorder Lori Kraemer.
GUESTS:
HRA Attorney Steve Bubul, Kennedy & Graven.
Brad Johnson, Lotus Real Estate.
Barry Fluth
1. Call to Order.
Chair Darrin Lahr called the meeting to order at 7 PM.
2.
Consideration to approve the HRA 5:30 and 7:00 p.m. minutes ofMav 3, 2000.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
APPROVE THE MINUTES OF THE HRA, CITY COUNCIL AND LENDERS
WORKSHOP ON MAY 3, 2000. Motion carried.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
APPROVE THE MINUTES OF THE REGULAR HRA MEETING OF MAY 3, 2000.
Motion carried.
3. Consideration of adding agenda items.
Committee updates were added as item 11 a.
4. Consent Allenda.
None
5. Consideration of items removed from the consent agenda for discussion.
None
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BRA Minutes - 6/7/00
6.
Consideration to hear a preliminary concept proposal for redevelopment of the Amoco
West Broadwav site.
Ollie Koropchak, Executive Director, reminded the members that Mr. Johnson was
interested in talking to the HRA about the redevelopment of the Amoco site. At the
direction of the joint meeting between the HRA, Council and local lenders, the HRA was
encouraged to take steps toward redevelopment of the Amoco site and to research the
potential to enlarge the targeted redevelopment site.
Brad Johnson advised the HRA members of his interest, together with Mr. Barry Fluth, in
possibly entering into an agreement with the BRA to work together on redeveloping this
site. Mr. Johnson noted some of the options that could be looked at such as first floor
mixed commercial with the upper two floors residential with detached garages (if there is
a demand for residential), and asked for the HRA' s input. He also noted that there are
several other houses on that lot that there could be a potential to purchase, as well as the
possibility of looking even further up the block to include more of the neighborhood.
Mr. Johnson also stated that he did talk to the owner of the Amoco site who stated he may
be interested in working with someone on a project. Some issues discussed with this
property included the possible need for hazardous waste cleanup and the question of
whether there were monitoring tanks in place. Mr. Johnson advised the members that
Barry Fluth has an interested in real estate investments in Monticello.
Mr. Johnson proposed to the HRA entering into preliminary development agreement
which would give Mr. Johnson/Mr. Fluth the exclusive right to work to develop the
Amoco site, with HRA assistance, for at least 6 months. Mr. Johnson stated he could
put together some ideas on this site immediately and would report back to the HRA at
their next regular meeting on July 5. After further discussion, Mr. Johnson stated that
they would also possibly be interested in redeveloping Blocks 52 and 54 in the future.
7.
Consideration to discuss the recommendation of the ioint meeting, hear further
explanation of the four-year knock down rule and five-vear knock out rule by Attornev
Bubu\. and to authorize to proceed redevelopment of the Amoco site.
Ollie Koropchak, Executive Director, noted that at the direction of the joint meeting
between the HRA, Council, and local lenders, the HRA was recommended to take steps
toward redevelopment of the Amoco site and to research the potential to enlarge the
targeted redevelopment site. Dan Frie reported at the joint meeting he was asked to
contact the owner of the Amoco site relative to the asking price which is $175,000. The
owner was not interested in the HRA demolishing the structure only as this reduces the
value of the property and the selling price.
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HRA Minutes - 6/7/00
Prior to addressing the HRA check list, Attorney Bubul explained the four-year knock
down rule (ability to collect increment [revenues])and the five-year knock out (ability to
finance [expenditures]) rule, as well as the 4 J rule. Mr. Bubul provided written
information explaining these rules.
Koropchak provided information regarding the expected tax increment assessed in
January of 1999. Also noted was that this is in etTect until June of 200 1, and that the
HRA has until February 01'2002 to get all information regarding that parcel to the County
Auditor. Mr. Bubul stressed the need to keep on top of all paperwork showing activities
that qualify that district, i.e. building permits, memos from staff as well as anything that
may have been stimulated by certain activity, i.e. the Marquette Bank selecting the site
they did due to the location of the new community center. Bubul also explained the
different scenarios on what would happen if County Auditor were to turn the City down
regarding TIF. Koropchak also went through a check list of items to determine prior to
taking action on a possible preliminary agreement with Mr. Johnson regarding the Amoco
site.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO
ACTIVEL Y PURSUE THE DEVELOPMENT OF THE AMOCO SITE. Motion carried.
8.
Consideration to discuss the recommendation of the ioint meeting. to determine objective
of the scattered housing program. and to recommend establishment of a community task
force.
Ollie Koropchak, Executive Director, reminded the members of the direction given at the
joint meeting between the HRA, Council, and local lenders, staff was encouraged to
pursue a scattered house program for the City of Monticello. A couple of years ago this
was a City Council priority item; however, funding (estimated $200,000) was not
approved for the program. It was suggested to develop criteria/guidelines prior to the
Council approving funds for the program. Later, $20,000 was requested for a I'lousing
Study but the request was denied.
Objectives the City of Monticello wants to accomplish with the development of a
scattered housing program were again discussed including increase exterior aesthetics,
eliminate substandard housing, eliminate unsafe and hazardous housing, provide
atTordable housing, etc.
Ollie Koropchak and JefT O'Neill discussed some of the programs in place at such cities
as Richfield, Robbinsdale and Crystal where public funding sources came trom either or a
combination of Special Legislation, Community Development Block Grants, and/or TIF.
Copies of some information retained from Richfield, Crystal, and Big Lake were
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HRA Minutes - 6/7/00
provided.
Some planning steps to establish a program were discussed such as establish purpose of
the scattered housing program, define objectives or goals to accomplish, preliminary
assessment of existing housing stock, determine type of housing programs, determine
sources for public funding of programs, develop criteria for program and develop
marketing plan for program.
It was suggested forming a Community Task Force Committee of five members made up
of the following local professions: Lender, home builder, developer/contractor, real estate
agent. appraiser, and a HRA/Planning Commissioner to pursue researching a scattered
housing program.
Attorney Bubul also provided his input on pursing different programs for funding that he
is familiar with. Bob Murray stated taking this issue to the Planning Commission and
having a member backing this item when presenting it to the City Council. Dan Frie
volunteered to work with Jeff O'Neill as a subcommittee to compile information for the
next HRA meeting in July.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DAN FRIE TO
TABLE ANY THIS ITEM UNTIL THE REGULAR MEETING IN JUL Y. Motion
carried.
9.
Consideration to amend the HRA Bylaws as it relates to the selection and compensation
of the Executive Director of the HRA per the Bvlaws.
Ollie Koropchak, Executive Director, advised the members of a previous motion to
amend the Bylaws relative to the office meeting place of the HRA, which was done at
that time. Previously, the commissioners recommended amending the Bylaws,
ARTICLE V., compensation of the Executive Director of the HRA as well. With the
compensation for the Executive Director of the HRA determined and disbursed from the
City funds in accordance with the City's Comparable Worth Program, the commissioners
requested the Bylaws be amended for consistency.
Attorney Bubul provided the language to amend the HRA Bylaws accordingly as well as
provided further insight.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
ADOPT A RESOLUTION AMENDING THE HRA BYLA WS AS PREPARED BY
ATTORNEY BUBUL. Motion carried.
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HRA Minutes - 6/7/00
Consideration to authorize pavment of the monthlv HRA bills.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS. Motion carried.
11.
Consideration of Executive Director's Report.
a) Portion Lots 6, 7, and 8, Block 7 (Corner of Locust and 6 Street) - Brad Johnson is
possibly interested in a redevelopment project in this area.
b) Bus Tour and Golf Outing - Scheduled for June 14. About 95 invitations mailed.
Response as of June I - 36-bus tour/lunch and 26-golf. Promotional package being
updated. Tour consist of commercial/industrial sites only.
c) Legislative Update Seminar - Executive Director attended a seminar sponsored by
Kennedy & Graven on June 2.
d) 30 I Front Street - Had telephone call from Mrs. Rice relative to interest of City to
acquire home along Front Street if their decision is to relocate. Just inquiry at this time.
Encouraged her to come before the HRA and informed her of procedure to authorize an
appraisal, etc. This house is located within the 5-year plan for acquisition as
recommended by the North Anchor Committee. Properties in Block 54 and along the
river were designated as priority.
e) TIF District No. 1-22 - As you know with the 5-year knock-out rule if the HRA has no
binding contract for expenditures or eligible expenditures paid for the projected tax
increment, the BRA would retire its existing debt and decertify the district early. This
means the HRA would lose their ability to maximize the use of the tax increment. A plan
by the HRA to acquire properties in the 5-year plan area as recommended by the North
Anchor may be advantageous.
t) TIF District No. 1-20 - Copy of letter to Mr. Komarek relative to completion date per
the Contract. Also provided a copy of the estimated market values as of January 2, 2000
for Phase I and Phase II of the Contract. The overall goal of the HRA, to remove blight
and create quality market rate housing, is certainly being accomplished. It is the intent of
the developer to begin construction of the 4-plex on Lots 17 and 18. The twin-home
construction and market is well ahead of the Contract completion date for the entire area.
The 4-plex market has been slower.
g) TIF District No. 1-27 - Copies ofletters to appropriate individuals relative to the J. J.
Company (Profile Powder Coating Company) project were provided. As noted the
project did not receive private funding and the public funding applications are to remain
on file. Reimbursement of the remaining balance of the HRA $5,000 deposit has not
occurred as invoices from Ehlers and Kennedy & Graven have not been submitted to the
HRA. The land purchase agreement has been canceled and the request for Plat approval
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HRA Minutes ~ 6/7/00
is on hold.
h) TIF 1-5 Modification inquiry - Copy of a letter to Gus Lafromboise was provided.
i) Skipper's Pool - Letter of May 5 was provided. Received Certificate ofInsurance and
Lease Agreement which should be executed soon. Checking if lease fee of $61 0.87 has
been submitted.
j) Financial Consultants - Follow-up letters.
k) HRA/City Reports to City Auditor for 1999 - Should be receiving updated Quick TIF
program from Ehlers so I can begin 1999 reports.
1) Twin City Die Castings - EDA and City loan closings scheduled for June 8, 2000.
Committee Updates.
Council Liaison Brian Stumpf was at Joint Fire Board Meeting this evening so no City
Council update.
Marketing - Golf outing update.
Community Center - Bob Murray - Provided with a summary from Kitty Baltos,
Community Center Director as to membership and daily users.
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Other Business.
None
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Adjournment.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DAN FRIE TO
ADJOURN THE MEETING AT 9:25 PM. Motion carried.
HRA Chair
Recording Secretary
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BRA Agenda - 7/5/00
6.
A. Reference and Ba~kt!round:
At the June HRA meeting, Brad Johnson informed the commissioners, Barry Fluth, a local
investors, was interested in redevelopment of the Amoco site consist with the
redevelopment plan. He also expressed an interest to redevelopment the North Anchor in
the future. The HRA requested Mr. Johnson bring something back to the July HRA
meeting. Mr. Johnson asked the BRA for a 60 to 90-day right to develop the site.
In June, the HRA made a motion to actively pursue redevelopment ofthe Amoco site.
Here's a check list: Type of use in CCD zoning
Project area
Developer purchases parcels
No need for HRA appraisal.
Ifpay as you go, developer provides evidence and hires relocation
consultant relative to relocation costs.
~llOwing the presentation by Brad Johnson, the HRA may wish 10 consider the following
L3~ion. ~ ~~ \..0 -?- <t -00 -
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B. Alternative Action: \.J.....rv.- ~ '\ 0 o~ ~ ~~
1. A motion authorizing entering into an exclusive 60-day right to work with Brad
Johnson/Barry Fluth for redevelopment ofthe Amoco site+.
2. A motion of no interest to enter into an exclusive 60-day right to work with Brad
JohnsonlBarry Fluth for redevelopment of the Amoco site+ and requesting staff
prepare and go out for an RFP.
3. A motion to table any action.
c. Recommendation:
Without seeing the concept, no recommendation is given. However, the lIRA does need
to keep the five year knock~out rule in mind in order to allow for completion of planning,
marketing, financing, and construction of the project by June 2002.
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BRA Agenda ~ 7/5/00
Sup~ortine Data:
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BRA Agenda - 7/5/00
7.
onsideration to hear renewed interest for redevelo ment of th
affordable housin2 and a motion of interest for use of TIF.
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A. Reference and Back2round:
In December 1998, Brad Larson appeared before the BRA and requested TIF assistance
to enhance a tax credit application through the Minnesota Housing Finance Agency. The
project consisted of32 units of rental property in Phase I and 28 units in Phase 11 The
request for TIF assistance was not to exceed $10,000 for demolition and removal of
existing mobile homes and site improvements, and a semi-annual real estate tax "rebate" of
50% of project taxes paid for a period offive years which would be used to ''buy down"
the rents to the tenants. On January 6, 1999, the BRA approved TIF assistance for
redevelopment of the Klucas property with said recommendation to the City Council.
(See attached Jan 6, 1999 HRA minutes). On January 11, 1999, the City Council
authorized a letter of acknowledgment for TIF assistance for redevelopment of the Klucas
Property. This letter accompanied the tax credit application (See attached Jan 11, 1999
Council minutes). At the June 1999 BRA meeting, the commissioners were informed the
TIP request was dropped as Brad Larson informed Koropchak the project was not
awarded tax~credit funding for reason of site location - to far from core downtown area.
The HRA had received a copy of the Affordable Housing Study as prepared for Brad
Larson.
Mr. Larry Olson, Metro Plains, working with Brad Larson, has contacted the office of the
BRA and expressed renewed interest for redevelopment of the site and requesting a
motion of interest for use of TIF. Because the tax credit application is awarded based on
a point system and the criteria for the point system has changed, the developer has
renewed interest. Mr. Olson will explain those changes to you.
Note!! You will recall when the TIF Authority Reports for 1998 were completed and we
estimated the reduction in tax increment for payable 1999 due to the reduction of the
classification rates or due to Mr. Larson's request for a change in housing classification
status, the tax increment for TIF District No. 1-2 was reduced from $41,192(1998) to
$22,059 (1999). This reduction has caused a cash flow deficiency. The bond payment
was $32,384 in 1999 and the estimated payment is $30,603 in 2000. The bond retires in
2007. The City can not apply for a grant for TIF deficiency from the State until there is an
overall combined TIP District deficiency. The other alternative suggested by Ruff and
Bubul was to talk and negotiate with Brad Larson. The Contract did include an
Assessment Agreement with an EMV of $866,590 and $760,400 for the two housing
apartments, Broadway Square and River Park View. The market values are in
compliance. 1'11 reconfirm this with Mark, this may be our opportune time to negotiate.
Regardless, this issue needs to be addressed.
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BRA Agenda ~ 7/5/00
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Mr. Olson will make a presentation to the liRA.
B. Alternative Actions:
1. A motion to approve the use of TIF assistance in the amount and terms as
determined for the above project with a recommendation to forward the request to
the City Council approving a letter of acknowledgment for use of TIF.
2. A motion to deny approval of the use ofTIF assistance for the above project.
3. A motion to table any action requesting additional information.
C. Recommendation:
Without the details of the project, no recommendation is given. When Mr. Olson was in
my office, he explained the new criteria includes extra points if the project has other non-
profit dollars invested in the project. I suggested soliciting other non-profit dollars rather
than requesting additional dollars from the public sector.
D. Supportioe Data:
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Copy ofHRA and Council minutes and copy of ED report. Map of project area.
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'f-?:; ~ . tD 0 ATIORNEYS AT LAW
313 Wut Broadway
P.O. Box 44f
MDnticdIo, Minnesota. 55362-044ii
mbnfaw@sonwm.cam
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BRADLEY V. LARSON
STEVEN). MUTH
.JAMES G. METCALF, OfCOUNSLL
(1975.1995)
.sALLY B. NELSON
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TELEPHONE
(61.2) 295-3232
EAX
(61.2) .295-3132
Ollie Koropchak
Housing & Redevelopment Authority
City of Monticello
250 East Broadway
Monticello, MN 55362
Re: Little MOlmtain Manor Limited Partnership
. Dear Ollie:
Thank you for the opportunity of appearing in front of you last evening. I also
wish to present to you the concept plan for Little Mountain Manor Townhomes to be
located on the Edgar Klucas property.
I take this opportunity to summarize and formalize in writing for your file m)
request for pay as you go TIP assistance for the housing project as followings:
L Demolition and removal of existing mobile homes and metal buildings on
the premises, termination of two existing wells on the premises, termination of existing
hooked up water lines, and soil correction ot existing septic system. The estimates that I
have in hand to date from Scbluender Construction and Bjorklund Well indicate that
these expenses should not exceed $10,000,00.
2. A semi-annual real estate tax "rebate" of 50% of the project taxes paid for a
period of five years which funds would be used to "buy down" the rents to the tenants to
make the rents more affordable.
As I indicated to the HRA, the TIF assistance is requested to aid in the pointing
process to win Minnesota Housing Finance Agency approval for tax credits for the
project in Monticello. As this is a competitive process the TIF enhancements earn the
project pointing entitlements which will enhance the ability to gain a tax credit allocation.
After a five year period of the TIF the rebates would cease and the rents would increase
accordingly. Bob Murray proposed a question with regard to income and rent levels and
EXHIBIT Al (1 of 2)
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Ollie Koropchak
December 10, 1998
Page 2
toward that end I enclose a copy of the Minnesota Housing Finance Agency income and
rent limit which was effective Februaty 21, 1998. The page I enclose is for Wright
County and there is highlighted the area which indicates the maximum rents based on
family size and income size.
I did contact AdMark who is doing the market study and they will ship a market
study to you directly for your use.
If you have any questions please don't hesitate to contact me.
Respectfully,
METCALF, LARSON & MUTR, P.A.
By:
. Larson
BVL:ds
Enclosure
EXHIBIT A (2 of 2)
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Consideration to approve the Certificate of Completion for Blue Chip
Development Company.
Executive Director Ollie Koropchak stated that, as of this date, the Certificate of
Occupancy had not been issued on this property; therefore the HRA cannot
approve the Certificate of Completion for Blue Chip. A MOTION WAS MADE
BY DARRlN LAHR AND SECONDED BY BOB MURRAY TO TABLE THIS
ITEM. Motion carried unanimously.
6. Consideration to review affordable housing market study and to approve TIF assistance
for the redevelopment of the Klucas property with a recommendation to the Citv Council.
Ollie Koropchak reviewed the agenda item stating that at the December 9, 1998, HRA
meeting Brad Larson gave a presentation on the proposed concept plan for redevelopment
of the Klucas property. Mr. Larson requested TIF assistance in an amOlmt not-to-exceed
$10,000 for site cleanup and a percentage of tax increment to reduce rental rates. Mr.
Larson also requested a Letter of Intent for submittal with the Minnesota Housing
Finance application. The BRA had postponed making a reCOl1ll11endation to the City
Council until they had reviewed the Market Study.
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The agenda packet contained a summary of the Market Study. The complete study was
not complete in time to be included in the agenda packet. Mr. Larson stated that the
Market Study was at the printers and would be available soon.
Dan Frie asked if the renters paid a certain percent of income. Mr. Larson stated that the
rent is pre-set plus utilities.
Ollie Koropchak asked if the Planning Commission needed to review the project. Jeff
O'Neill stated that there were no set-backs required, however, the Planning Commission
would have to do a site plan approval.
Ms. Koropchak asked Mr. Larson how many units would be built in Phase 1 and the
anticipated completion date. Mr. Larson stated that 32 units would be built in Phase I and
28 Units in Phase II. The plan is for all 32 units to be built and ready to rent in 1999.
Darrin Lahr asked if the maximum rent was $875 under HUD. Mr. Larson stated he
requested a semi-annual "rebate" of 50% of the project taxes paid for a period of five
years to obtain rent reductions.
Darrin Lahr askcd Mr. Larson if, after five years, the rents would increase. Mr. Larson
stated that the rents would increase. HUD usually allows a 2-3% increase per year. The
tenants will sign a year to year lease and a letter will be sent to the tenants letting them
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know of the coming rental increase. There will be full disclosure at the time of renting.
Bob Murray wanted to know if all the units were three bedrooms and how many rental
units were currently in Monticello. Mr. Larson stated that all the units are three
bedrooms. He was not sure of the number of rental units, but the expanded Market Study
would show that information.
Darrin Lahr wanted to know how the abatement would be handled.
Mr. Larson stated that the company will pay their taxes twice a year to the County and
then the City will rebate a portion back to the company.
Bob Murray asked if the County also participated. Ms. Koropchak stated that she would
check with Wright County to make sure that they will participate.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRlE
TO APPROVE TIF ASSISTANCE FOR REDEVELOPMENT OF THE KLUCAS
PROPERTY WITH THE SAID RECOMMENDATION TO THE CITY COUNCIL. Jeff
O'Neill stated that he felt the developer should have considerable discussion with the new
mayor to obtain his input regarding any City assistance. Motion carried unanimously.
7.
Consideration to approve financing the services of Michael Schroeder as facilitator and
coordinator of the January 20 council/commission workshop meeting relating to the
North Anchor.
Darrin LaIn stated that Mr. Schroeder's letter indicated the workshop would last no
longer than two hours and he felt this was not realistic.
Executive Director Ollie Koropchak stated that Mr. Schroeder would serve as facilitator
with each commission sharing in the discussion on the River Front. It is her wish that
everyone has a chance to voice their opinion. It may be necessary to establish some form
of public participation.
Dan Frie asked if there had been any objections to the Revitalization Plan adopted by the
Council. Ms. Koropchak stated that as far as she knew, there had been no objections
voiced. It was felt the River Front development should be thought out carefully.
Darrin Lahr asked if we were hoping to have a resolution to the matter in this workshop.
Ms. Koropchak stated it may be decided to obtain public input.
Steve Andrews would like a closed end on this workshop.
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Council Minutes - III 1/99
A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRUCE THIELEN TO
DIRECT STAFF TO PREPARE A [,ETTER REGARDING ISSUES SUCH AS NOISE,
VISUAL IMPACT, TRAFFIC, SAFETY, AND ENVIRONMENTAL RISKS RELATING TO
THE PROPOSED SAND AND GRAVEL MINING OPERATIONS. Motion carried
unanimously.
Consideration of authorizing execution of a Letter of Acknowledgement for TIF
assistance for redevelopment of the Klucas property.
Developer Brad Larson requested that Council consider execution of a Letter of
Acknowledgement for TIF assistance for the redevelopment of the Klucas property.
Redevelopment of the property would include construction of 32 three-bedroom rental
townhome units in phase 1. The Letter of Acknowledgement would be submitted by the
developer as part of a tax credit application to the Minnesota Housing Finance Agency
(MHF A). When a tax credit application includes public participation such as TIF
assistance, the application receives additional points, giving the application a greater
chance for award of competitive dollars. The requested assistance is for reimbursement
of soils correction in an amount not to exceed $10,000 and 50% of the annual tax.
increment over 5 years to buy down the rents to the tenants. The total market value of the
32 lUlits is estimated at $1,440,000. The TTF District would be a Qualified Housing
District, exempting the City from the HACA penalty or local match. The BRA approvcd
the use ofTIF for redevelopment of the Klucas property subject to City Council
execution of the Letter of Acknowlcdgemcnt.
Council discussed the usc of TI F at a time when development and annexation requests are
high. Questions were raised as to whether TIF money should be used to promote low to
moderate income housing when commercial and industrial development are needed. The
proximity of the R-2 propeliy to industrial land was also noted in that higher-end housing
would not likely be proposed for this area.
AFTERDTSCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY
ROGER CARLSON TO AUTT-IORIZE EXECUTION OF A LETTER OF
ACKNOWLEDGEMENT FOR TIF ASSISTANCE FOR REDEVELOPMENT OF -fUE
KLUCAS PROPERTY. Voting in favor: Brian Stumpf, Roger Carlson, Bruce Thielen.
Opposed: Clint Herbst, Roger Belsaas. Motion carried.
Consideration of annual appointments for 1999.
Mayor Belsaas proposed that Council member Clint Herbst be appointed to the MOAA
Board scat vacated by Planning Commission Chair Dick Frie.
Councilmcmber Clint Herbst proposed that City Council take a closer look at
appointments to the HRA due to the impact the Authority can have on the city.
Page 4
.
.
.
BRA Agenda - 6/9/99
Consideration of Executive Director's report:
a) Brad Larson Tax-Credit project - Attorney Larson informed me his proposed tax-
credit project along River Street across from the NSP Training Center was not
awarded tax-credit funding. Larson requested TIF assistance which the BRA and
Council endorsed. Reasons for non-funding was site location - to far from core
downtown area. TIP request dropped.
Project Updates -
200,000 sq ft building 20 acres - This project is still forth coming. The company
owner will be golfing on Wednesday.
100+ acre request - Monticello continues on the site selection search and remains
of the short list. Addition maps of the City and site were requested this week.
Looking for a partnership with the City.
35,000-40,000 sq ft - Bob Murray, Shelly Johnson, Roger Carlson and myself
visited this die casting company a few weeks ago. Last week, the two owners and
another official visited the Monticello site, Monticello Commerce Center, for a
second time. Mayor Belsaas, Shelly Johnson, Damn Lahr, Ron Hoglund, Kevin
Doty, Rick Wolfsteller, and Lenny Kirschtjoined us for lunch at the Monte Club.
Thereafter, Lenny Kirscht presented the company with a uses and sources funding
statement which was well received. Next step to meet with property owner and
continue funding request, developer driven~
75-100 acres - No recent update. - C, .
Nancy Whalen - Nancy's resignation is effective June 18 as Community
Development Secretary. She and her husband are moving to Arkansas. Nancy's
replacement is Lori Kraemer.
Rita Ulrich has resigned from the MCP effective June 18 and has a new position
with the Nokomis East Neighborhood Association in Minneapolis. The Chamber
of Commerce hired Brenda Naffziger to replace Kitty Baltos. Brenda was
Chamber Director in Becker.
Public Law Update - Attended the update on June 4. More at meeting.
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MINNESOTA SALES AND USE TAX STATISTICS
ANNUAL 1994, 1996 AND 1998
CITY OF MONTICELLO
TOTALS
$124,668,207
1996 1998
$ 3,464,702 $ 5,042,198
$11,632,254 $ 7,786,511
$90,930,163 $108,261,515
$ 3,142,677 $ 3,703,108
$10,752,146 $13,149,068
$25,207,863 $31,008,152
$145,129,805 $168,950,552
Retail Industry-Gross Sales
1994
52 Retl: Hardware, Bldg, Matls
53 Retl: General Merchandise
54 Retl: Food
55 Red: Auto Dealers, Stations
56 Red: Apparel, Accessories
57 Retl: Furniture
58 RetI: Eating, Drinking
59 Red: Miscellaneous
$13,716,801
$69,200,220
$ 2,446,275
$10,824,232
$28,480,679
CITY OF ELK RIVER
. Retail Industry-Gross Sales 1994 1996 1998
52 Red: Hardware, Bldg, Matis $ 9,010,001 $ 45,254,615
53 RetI: General Merchandise $27,694,777 $ 34,919,477
54 Red: Food $54,558,806 $ 59,927,164
55 Red: Auto Dealers, Stations $88,310,873 $113,827,894
56 RetI: Apparel, Accessories $ 2,950,955 $ 3,245,709
57 Retl: Furniture $ 2,679,058 $ 3,987,990
58 Red: Eating, Drinking $ 9,264,797 $ 15,300,815
59 Red: Miscellaneous $15,785,515 $ 22,764,954
TOTALS $135,851,496 $209,253,782 $299,228,618
DIFFERENCE $ 11,183,289 $ 64,123,977 $130,278,066
. Source: MN Department of Revenue
.
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BRA Agenda - 7/5/00
8.
Consideration to hear Dro~ress relative to research of purposelobiective and fundine
for a scattered housios! prot!ram and a motion of action/direction if so necessarv.
A. Reference and Back~round:
At a joint meeting held in May between the Council, BRA, and local lenders, staff was
encouraged to pursue development of a scattered housing program for the City of
Monticello. At the June BRA meeting, any formal action was tabled, and Dan Frie and
Jeff O'Neill were directed to research the purpose/objective and funding for a scattered
housing program.
On June 27, JeffO'Nei11~ Dan Frie~ Don Welker, Preferred Bank of Big Lake~ and Ollie
met to discuss potential funding programs through the Minnesota Housing .Finance
Agency, Greater Minnesota Housing Fund, and DTED. Program concepts were discussed
and it was agreed that scattered housing program goals/objectives the HRAlCity want to
accomplish need to be developed and a list of 50 homes targeted at EMV of less than
$90,000, by age (year built), and rental/owner occupied. A second meeting was
scheduled for July 5, 3:00 p.m. with Cheryl ofMHFA. Jeff/Ollie received copies of the
program concepts. Frie and O'Neill felt the program should be targeted for demo and
reconstruct.
July 5 update given at meeting
1
.
.
.
BRA Agenda - 7/5/00
9.
Consideration to discuss amendine the wae:e reouirement within the Business
Subsidy Criteria of the BRA and a motion requestine: the City Council call for a
public hearine:.
A. Reference and Backeround:
Upon receiving a notice relative to the increase of wage thresholds by DTED for it's
Minnesota Investment Fund and upon discussion with the lIRA Chair, this item appears
on the agenda for discussion and consideration to amend the lIRA Business Subsidy
Criteria relative to wages.
Currently, Section 4:06 reads: Recipients of any business subsidy will be required to meet
wage and job goals determined by the lIRA on a case-by~case basis, ................. Due to
recently-enacted changes to the Business Subsidy Act, the case~by-case language may not
be sufficient and we may need to amend this language to establish specific goals.
Attorney Bubul is reviewing our criteria to see if the recently-enacted changes apply to the
BRA, EDA, or City's Business Subsidy Criteria. We have until May 1,2003 to make
those changes.
Section 5: 03 C reads: For manufacturing and warehousing business subsidy request, at
least 90% of the jobs created must pay a wage of at least 160% of the federal minimum
wage requirement for individuals over the age of20. (The minimum federal wage is $5.15
therefore 160% is $8.24 per hour). Regardless of the new changes, the lIRA
commissioners should begin discussing your interest to increase the wage threshold for use
of TIF. Your previous rational was to allow flexibility and to determine on a case-by-
case basis. In addition to the State's increase, the wage threshold for funding through
the Wright County Economic Development Partnership is at least $10 per hour.
The process to amend the Business Subsidy Criteria is: The BRA determines a wage
threshold and recommends the change to the City Council requesting the Council call for a
public hearing to amend the criteria.
B. Alternative Action:
1. Discuss and table any recommendation until the August BRA meeting. This
allows time to research need for other amendments.
2.
A motion recommending a wage threshold of at least
requesting the City Council call for a public hearing to amend.
per hour and
3.
Discuss and a motion of no interest to increase the wage threshold.
1
BRA Agenda. 7/5/00
.
c.
Recommendation:
The recommendation is Alternative No.1, this allows time to review the current criteria
for other changes in accordance to the recent-enacted legislation.
D. Supportioe: Data:
Copy of current HRA Criteria, excerpt from a memo from Attorney Bubul summarizing
the 2000 amendment: Section 3. Business Subsidy Policies. , and memo from DTED.
.
.
2
MONTICELLO
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 8th day of September , 1999.
1. PURPOSE
1:01 The purpose ofthis document is to establish the Housing and Redevelopment Authority's
criteria for granting of business subsidies, as defined in Minnesota Statutes 1161.993,
Subdivision 3, for private development. This criteria shall be used as a guide in processing
and reviewing applications requesting business subsidies.
.
1:02 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 Redevelopment Authority
determines that the subsidy nevertheless serves a public purpose.
1: 03 The Housing and Redevelopment Authority may amend the business subsidy criteria at
any time. Amendments to these criteria are subject to public hearing requirements
pursuant to Minnesota Statutes, Sections 1161.993 through 1161.994.
2. STATUTORY LIMITATIONS
2:01 In accordance with the Business Subsidy Criteria, Business Subsidy requests must comply
with applicable State Statutes. The Housing and Redevelopment Authority ability to grant
business subsidies is governed by the limitations established in Minnesota Statutes
1161. 993 through 1161. 994.
3. PUBLIC POLICY REQUIREMENT
3:01 All business subsidies must meet a public purpose other than increasing the tax base. Job
retention may only be used as a public purpose in cases where job loss is imminent and
demonstrable.
. 1
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd.. Monticello, MN 55362 . (612) 295-3170 . Fax: (612) 271-3272
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 will automatically 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 accord 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 financial feasibility to
proceed without the benefit of the subsidy. In effect, business subsidies will not be
provided solely to broaden a developer's profit margins on a project.
4:04 Prior to approval of a business subsidies financing plan and when deemed appropriate by
the Housing and Redevelopment Authority, the developer shall provide any required
market and financial feasibility studies, appraisals, soil boring, information provided to
private lenders for the project, and other information or data as requested.
.
4:05 A recipient of a business subsidy must make a commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
4:06 Recipients of any business subsidy will be required to meet wage and job goals determined
by the Housing and Redevelopment Authority \>n",a ~as~-by-ca~e ~asis, giving
consideration to the nature of the development,the p\:lrposeonlleSUbSidy, local economic
conditions, and situational circumstances.
5. T AX INCREMENT PROJECT EVALUATION CRITERIA
5:01 The Housing and Redevelopment Authority will utilize Tax Increment Financing to
support the community's long-term economic, redevelopment, and housing goals.
5:02 Each Tax Increment Financing subsidy will 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.
. 2
.
.
.
BRA Business Subsidy Criteria
A.
All business subsidy requests shall meet the "but for" test. The "but for" test
means that the project would not develop solely on private investment in the
reasonable future. The developer shall provide findings for the "but for" test.
B. Business subsidy requests should create the highest feasible number of jobs on site
from date of occupancy where deemed appropriate.
C. For manufacturing and warehousing business subsidy requests, at least 90% of the
jobs created must pay a wage of at least 160% of the federal minimum wage
requirement for individuals over the age of 20. Annual written reports are required
until termination date. Failure to meet the job and wage level goals require partial
or full repayment of the assistance with interest.
D. For other business subsidy requests, jobs created must meet as a minimum the
federal minimum wage requirement. Annual written reports are required until
termination date. Failure to meet the job and wage level goals require partial or
full repayment of the assistance with interest.
E. 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.
G. Business subsidy requests should facilitate the "clean-up" of environmentally
unsound property where deemed appropriate.
H. Business subsidy requests should increase moderate priced housing options for
area residents where deemed appropriate.
I. 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 of the 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.
3
.
.
.
6.
HRA Business Subsidy Criteria
PROCEDURES
*
Meet with appropriate Staff to discuss the scope of the project, public participation
being required, and other information as may be necessary.
*
The request shall be reviewed by Staff on a preliminary basis as to the feasibility of
the project.
*
The project concept shall be placed on the Housing and Redevelopment Authority
agenda for concept review. The applicant will make a presentation of the project.
Staffwill present its findings.
*
If the Housing and Redevelopment Authority's concept review is positive, Staff
will provide the City Council with an informational concept review.
*
The applicant will execute and submit the Preliminary Development Agreement
accompanied by a non-refundable fee of $5,000.
*
Building and site plans submitted to the Chief Building Official.
*
If Planning and Zoning Commission action is required, it will be necessary for the
applicant, at this time, to make application to the Commission.
*
Staff will authorize the following steps:
- Preparation for establishment of the Tax Increment Finance District and the Tax
Increment Financing Plan if required.
- Preparation of the Private Redevelopment Contract (Subsidy Agreement) based
upon agreed terms.
*
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 action such as
public hearings and consideration of approvals.
*
Building permit 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.
4
.
.
.
HRA Business Subsidy Criteria
Eligible Tax Increment Finance expenditures: Land acquisition, site improvements, public
improvements, and demolition and relocation costs.
Tax Increment Finance time: Generally six to eight weeks from time of authorization to begin
drafting plan and contract.
Zoning/Ordinance time: Varies per project.
busub.crit
5
Kennedy
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
,..
MEMORANDUM
TO:
Ollie Koropchak
City of Monticello
FROM:
Stephen Bubul
DATE:
May 19,2000
RE:
Business Subsidies Act
Attached is a summary of the recently-enacted changes to the Business Subsidy Act, Minnesota
Statutes, Sections 1161.993 to 1661.995. Pay special attention to the changes that affect your
business subsidy policies (Section 3 of the bill). Most likely, your policies will need to be amended
to comply with this legislation. However, you will have a three-year grace period to make needed
changes, assuming your initial policies were adopted before May 1,2000.
.
Let me know if you have questiQns about the bill.
J
.
S.J8- \ 80747v I
BU400-24
.
*
.
.
Clause (21) Business loans and loan guarantees of $75,000 or less are excluded. Note:
Any assistance less than $25,000 is already excluded from the definition of business
subsidy. This change eases the administration of city and authority loan programs.
Effective Date: This clause is effective the day following final enactment and is retroactive
to January 1,2000. That is, any business loans up to $75,000 granted since January 1,2000
are not subject to the Business Subsidy Act.
Clause (22) Federal loan funds provided through the federal Economic Development
Administration are excluded.
Section 2. Public Purpose. Prior law required that a business subsidy must meet a public purpose
other than increasing tax base. The 2000 change clarifies that tax base enhancement is an
acceptable public purpose, but may not be the sole justification for the subsidy.
This section also states that job retention is a valid public purpose where job loss is specific and
demonstrable. Under prior law, the loss needed to be imminent.
Section 3. Business Subsidy Policies. The 1999 law required that grantors adopt criteria before
granting any business subsidy. The only specific instruction was that the criteria must include a
policy regarding wages. Many cities adopted general policies indicating that business subsidies
would be approved on a case-by-case basis.
The 2000 amendments impose new standards for business subsidy criteria:
. They may not be adopted on a case by case basis;
. They must set "specific minimum requirements that recipients must meet in order to
eligible to receive business subsidies;" and
. They must set a "specific wage floor for the wages to be paid for the jobs created"
(which may be stated as a dollar amount or a formula that will generate a specific dollar
amount. )
A grantor may deviate from its adopted criteria by documenting in writing the reason for the
deviation, which must be filed with its annual report to DTED.
Note: As described in Section 5 below, the law now permits a grantor to determine that a
subsidy has a public purpose other than job creation or retention. Business subsidy criteria
should incorporate that concept, and should make clear that the required wage floor does not
apply in cases where the grantor determines that job creation or retention is not the public
purpose. Where jobs are part of the public purpose, the grantor may still vary from the
adopted criteria if the procedures for deviation are followed.
Grantors must file a copy of their adopted criteria with DTED along with the first annual report due
after the enactment of the 2000 amendments (i.e., the report due April 1, 2001), or the first annual
report after the criteria are adopted, whichever is earlier.
SJB-I80707vl
BU400-24
2
~00 17:03 To:Ms. Ollie Koropchak
From:Dave Erickson
1512-282-15138
Page 212
.
Memo To:
DTED's Do,;vdopmo,;nt Parlno,;rs
Date:
June 20, 2000
Re:
Minne!'!ota Investment Fund Wage 'l1l1'e!'!holds
'l1,e Minne!'!ota Investment Fund (M IF) i!'! DTI,:D'!'! primary financial re!'!OUl'ce u!'!ed tl') pnwide
IullulUial assislml~o,; to busino,;sso,;s l.hat afo,; ~ro,;a.ting ami ro,;taining quality jobs. i\~~onling to
Minne!'!ota Statutes 116.1,X73 1, Suhd, 5, the MIl' program requires wage thre!'!hold!'! to he met in
ordo,;r for projo,;~ls to b;,; digibk DTED has ;,;stablisho,;d guiddino,;s to ~onfonn with lho,;s;,;
!'!tstlltory requirement!'! as wel1 as other policy l')hjective!'!. Previou!'! guidelines for the minimum
wag;,; lo,;vds (o,;x<.:lusivo,; ofnon.mluldah.:d Iringo,; bo,;ndils) wo,;ro,; o,;stablisho,;d in 1996 at $8.00 po,;r
hour f(w TlOn-metro projects and $10.00 per hour for metro area project!'!.
In onkr to stay in ~olnplian<.:;,; wilh Minno,;sotit lctws and to adjust Ior inlla.tion. DTED no,;o,;ds to
in~ro,;aso,; lho,; wago,; ro,;quiro,;mo,;nls Ior MIF projo,;l,ils. Wo,; havo,; l"ko,;n llu.: following valuo,;s into
~oni:lid;';nl.tion to 111a1\.;,; lll;,;i:li.: iH.ijui:llm;.;nls.
1. K;,;o,;p lho,; ro,;quir;,;mi.:nls simplo,; Ior busino,;ss;,;s to umkrstand.
2. I.:ncourage investment in the non-metro area
3. Ensur;,; llmt wag;,; lllro,;sholds aro,; su1l1<.:i;,;nt to support sta.t;,;wid;,; housing <.losls.
4. Maintain increa!'!ed SUPP01t tl.')r higher quality (wage) jobs,
. '111e fol1owing increases will take etl"ect Juty 1, 2000. Projects that have pending Pmt II
app!i<.:a.tions iU1l..i hav;,; gnU11. agn.:;,;m;,;nls approvo,;d by S;,;pt;,;mb;,;r 1,2000 willnol. b;,; disqua.lifi;,;d
if they do not meet the new wage guidelines,
Wsce TIll'esholds E:d:itllUt.(.~d lVIIF LOUll
Awsl'd*
Non.Mdro Mi,:lro i\ri,:a
<$9.00 po,;r hour
$9.00 po,;r hour
$12.00 p.:.:r hour
<$12.00 p;,;r hour
$12.00 p;,;r hour
$15.00 p;.;r hour
In;.; li gib 1;.;
$6,000 p;,;r job
$10,000 per joh
* M IF hwgivahle loans (grants) are typical1y 1/] the si7.e of a M IF loan.
For more infonnation, please cal1 Paul Moe, D;rector, Ilusiness Finance Unit, at 651-297-1391
.
.
.
.
10.
BRA Agenda - 7/5/00
Consideration to authorize payment of the monthly BRA bills.
Recommendation is to authorize payment.
1
.
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
June 8, 2000
Statement No. 33287
n_ .._L
\{(.2. f\ ~
\ - ?--O
<<-r~ \ - .
MN190-00054 Prairie West Project (Komarek) \
\ ~- \-'?-?-
'\ "t-~ \ - 'd-.l\
Through May 31, 2000
MN190-00041 Redevelopment - General
MN190-00061 Downtown Redevelopment TIF District
MN190-QOO@J Company LLClProfile Power Coating)
Expenses
.
Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just d correct
and th part of it has been p d.
.
37.25
29.80
89.40
167.25
0.00
323.70
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41.1225694
June 8, 2000
Invoice # 33287
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
J-..
\-\iL-\\~
MN 190-00041
Redevelopment - General
Through May 31, 2000
For All Legal Services As Follows:
5/31/00 SJB Phone call with 0 Koropchak re by laws and agenda for
meeting
Total Services:
Hours
0.25
$
.
Total Services and Disbursements: $
.
Amount
37.25
37.25
37.25
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
May 31, 2000
o
\~ ~
,,~c;.
MN190-00054
Prairie West Project (Komarek)
Through May 31, 2000
For All Legal Services As Follows:
5/25/00 SJB Phone call with 0 Koropchak
Total Services:
Hours
0.20
Amount
29.80
29.80
$
Total Services and Disbursements: $ 29.80
.
.
.
Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
Y}-7
~~\-
<\5;
May 31, 2000
MN190-00061 Downtown Redevelopment TIF District
Through May 31,2000
For All Legal Services As Follows:
5/3/00 SJB Telephone call Q. Koropchak re: knock-down/5-year rules.
5/4/00 SJB Telephone call with Q. Koropchakre: duration rules, HRA
by laws.
Hours
0.30
0.30
Total Services:
$
Total Services and Disbursements: $
.
.
Amount
44.70
44.70
89.40
89.40
.
.
.
Page: 4
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
May 31, 2000
MN190-o00GJ Company LLC/Proftle Power Coating)
Through May 31,2000
For All Legal Services As Follows;
5/1/00 DJG Draft cover letter for contract for private development.
Hours
0.10
5/2/00
5/3/00
SJB Telephone call with M. Ruff; review duration options. 0.25
OJG Complete contract drafting and draft cover letter re: same. 0.90
Total Services:
$
Total Services and Disbursements: $
Amount
13.00
37.25
117.00
167.25
167.25
,.'C", "-:":'.:V"1"~~~~!\,'''I'.~,,:::~,~,~.1'.,~ ,i~;~'.1~'~~,!,.~;~'~~~~;'~~~,~.~:,:~;.';~';,\...~:,:,;~~~;::'~'~''';"'I',"'' " ~ ~'~:!':.!":" <; ;;:~,.,
~ "m :l':c,. ~"''"'I~~:r''"". ,.",,!",,,,,.~~,,,,, ',',,",.., ~",
'"'i,C": ,." "'.~"\,.~',..,.,,,.^ ',' , ' ~ ~
".- ....,:::::,,'L.l. ,::,.:~:~::::<~:~.::;;::'ti"2~!'i~~r::~:.);.~~;;~~~$~~$':~~t':~'~T;;;'~:':2;';:r:;;1.:~~1,~q':'\"f:~tj!S-I":?'S~;'!$f~l!~,;;,,~:;t~-..,._,
., c" U",' "~"",;,,~~,,,<_,,~,:;, ';':~,~:~:,:.!'._,:':"~":~, M6JlticeJJQJ:fRAj;~~'::;;~;~~~~.z=.:~:::-;:~:::,,,::,;;:;:.';";""':1:';';;::'=~'.~~~~~~~_::_:.
-,".,,=~;-~','-"-'~'~~""::~:';~:.~.~,t~~~~~~~Y~~Q~~g~e.~~1::~~~~~~-;=~':;::'::""" ~.::::,:;'.:::;,::;:".=;'::;=:::=-:~-::;:~:,:-:~,.="." -
,
u ., ~",.~ ':\,~'" ';." . ".. ,._,.
T'."I--.,",""""'''''''.'",,;,-,,,.
- I ' .' . \..." " ~,\ . .'
.
, June092000
. " "',' ",."., ,."
. .,,,,w.,,.,, '... ,',..,~ ,v. '~.',,,
".., 'V.J.'.'~'~" ,
. : ,: '. ..~
'MC100-29
TIF District No. 1-27
~"'<~:\',..,'.'" '!'<- .. '.....:;~".: ,'''' "~''''. .., "
"""~ ;,~,~,.,~"'~~'.,..f~';~ ~.,~,,-,:;'::"'. '. :
Invoice# 17383 ',.,.
Professional Services
.
. ;~;,,, 1, .,',
Hours Amount
2.00 250.00
3.00 375.00
1.00 125.00
1.00 125.00
0.50 62.50
1.50 187.50
9.00 $1,125.00
5/5/00 RC
5/8/00 MTR
RC
RC
5/9/00 MTR
5/10/00 RC
Draft Plan & Fiscal Implication Letters
Review tax increment plan
Modification to Redevlopment Plan
Cash Flow
Work on project description/plan
Revise plan and mail Fiscal Implication Letters
Total Due This Month:
Status of Account
Current
$1,125.00
30 Da s
$0.00
60 Da s
$0.00
90 Da s
$0.00
120+ Da s
$0.00
Total
. 0
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
. "'-...
:, ':;.,/"(:,'~S:~~i':::"'\"'; :),,1':','_,
.
EHLERS
& ASSOCIATES INC
:. .. :, . ", r ,~ : :;:i;,:'
- .,~
- ~.... ,", ~
.:' ;:--;:;i"Y~:,li>'::)~It:I~;I\~; '~~,"';':, .':" :\~' '. ~
"'ir1,;';~,.,o;':'i",t<'.~.~ ~;'t,."' ;,"".
3060 Centre Pointe Drive
RoseviUe, MN 5~1l3-1105
"":i&.""')I')!'i(W~~~'~~.->:~' ...~".,'''~';:. :"-~' "~:',"
~~~""-'?T~~~~=~:,:"'~:::"::=-::::::~=
.
.
.
BRA Agenda ~ 7/5/00
11. Consideration of Executive Director's Report.
a) Mayor's Bus Tour & Golf Outing - This was held on June 14. Attached is a list of
those attending each event and of those who responded unable to attend.
Approximately 90 invitations were mailed. People enjoyed the event and
appreciated the information. Golf towels and tees were given to those golfing. The
most interest of the bus tour was the potential of the city owning industrial land.
The repeated question surfaced again: The probability of an interchange at County
39 Wand 1-94.
b) The Community Profile update was completed and all businesses providing info
were mailed a thank: you and a copy of the profile. Additionally and since, a
spread sheet identifYing the wage and job levels was compiled. However, using
the State form was not the best idea as the max wage level is $15+ per hour. Use
of higher wage levels and eliminating the lower levels would provide a more
accurate picture. Regardless, the median wage level excluding benefits paid full-
time workers by 35 Monticello businesses is between $13 and $15 per hour. The
average wage per hour is $12.327. The School District and FSI did not respond.
The median wage level excluding benefits paid part-time workers in Monticello is
between $9 and $11 per hour.
c) TIF & GMEF Assistance Analysis - This spend sheet identifies the TIF and GMEF
assistance given in net present value and using the CPI inflation factor. The benefit
is the combined annual wages without benefits plus the annual property taxes.
d) Other updates - Housing permit values and good existing home sales, comparative
MonticellolElk River gross retail sales, and traffic counts. This information will be
presented at the HRA meeting.
e) Skipper's Pool- Waiting for Wolfe to execute lease, fee of$61O.87 paid, and
certificate of insurance received.
f) Projected TIF 1-22 Revenues - With the Quick TIF 2000 having arrived, I'll begin
the 1999 reports for the State Department of Revenue. At the request of the HRA
Chair, projected TIF revenues for the District 1.22 will be ran to aid the HRA with
future redevelopment planning.
g) Prospects - Machine Shop - 25,000~30,000 sq ft precast bldg. 5-6 acres, current
40 jobs, 6-10 additional jobs within 2 years, average wage $15.02 w/o benefits,
project 2001, relocation and expansion, request for TIP. See attached cashflows.
Machine tool shop - 4,000 sq ft, 5 new jobs in 2 years. Relocation from home
business. Meeting scheduled for afternoon of July 5.
Production of packaging materials - 50,000 sq ft building, 2001-2002 construction.
Production of windows - 100,000 sq ft building.
Fortune 500 - Looking for 10 acres, 100,000 sq ft office complex, not
headquarters for CEOs. Needs: Freeway access, profession business park, three
story building, parking stalls for 500 cars. Looking at three cities. TIF, incentives?
Monti sites of interest: City/Chadwick, River View, Pfeffer commercial.
70,000 sq ft building - 25 acres. 30 employees. Distribution of machinery and
1
.
.
.
BRA Agenda. 7/5/00
h)
i)
parts. Requires out door storage. From Towle Real Estate. Needs conditional
use approval. Monticello Market Place
Manufacturer of wood chips and mulches - 20 acres, 5,000 sq ft shop, 5-10 out-
door-storage, some noise. Potential 5,000 office headquarter. 25 manufacturing
jobs, $15-16, office wages average $45,000. Needs conditional use approval.
lIRA Bylaws - Copy of Amended Bylaws.
TCDC - Closed and disbursed EDA dollars of $100,000. Closed and disbursed
State/City dollars totaling $469,000 of the $500,000 to date. Still anticipate
completion of the building by the end of September.
2
.
.
,
BUS TOUR AND GOLF OUTING ATTENDANCE
JUNE 14, 2000
Tour & Lunch
Chuck Van Heel
Steve Bubul
Tour. Lunch & Golf
Mark Houge, Allied NS
Senator Mark Ourada NS
Golf
Brad Barger
Ken Stabler, NSP
NS
Andy Brotzler, WSB
Dan Greensweig
Ken Barthel
Wanda Kraemer
Karen Doty
Roger Carlson
Mark Ruff
Greg Hohlen
Amanda Gaetz
Mayor Belsaas
Ollie Koropchak
Lori Kreamer
Mike Benedetto
Bob Murray
Dan Frie
Jeff O'Neill
Rick W olfsteller
Bill Endres
Greg Michael, Olson Contractor
Brad Johnson, Lotus NS
John Gries, 0' ceno NS
Ed Sorgatz, Olson Contractor
Kevin Doty NS
Mitch Rautio, Bainey Group
Bruce Halbasch, Kraus-Anderson
Dennis Dalen, City Attorney
Greg Hayes, Shingobee Bldn
Lenny Kirscht
Paul Ammerman, NSP
Steve Grittman, City Planner Consultant
Kevin Conway, pfeffer Company
Kevin Maas, Amcon Construction
13 22
rI9.
Bret Weisl, City Engineer
John Chadwick, The Chadwick Group
Damn Labr
Steve Andrews
Harold Brandt, Brookfield Real Estate
Shawn Weinand
Neal Driscoll, Collier ToUer Real Estate
Jeff Essen, Brookfield Properties
Steve Chrihart, Griffin Companies
SheUy Houde, Minnegasco
Rep. Mark Olson
Dennis ZyUa, Northco
Kent Carlson, Ryan Company
Heidi Peper
15
3
\ \ 0-)
.
.
,
~'"'_""~~'_'~J~~U'\.\'.\!,~~"",~~W\""'~~"-':';'~"'~-~'",.::;:~~,
I
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J I r)~[J~\~;::11la~J-', LJJ.t> __bj l2-.li.____________
ui A .. -LL ?s'7~
~ I ~\{L ~uvr:~~ __J~ CL'VJ._..' /0 l) ___...
"
SPS SERVICES, INC.
101 W. BROADWAY PH.. 612-295-5779
P..O. BOX 1234
MONTICEllO, MN 55362
FIRST
MINNESOTA
BANK N."'.
p.o. BD!I: 960. MUlllllillUU, MN '!l~6:Z . 271.7200
Mf,MO..._
I: 0 Ii ~ Ii 0 2 ] 5 ]1: 7 8 0 0 ~ 8 2 II"
."._~(lII<<\-,,~:~~'1\"L1n"f11.lt.Y'ililmml2:!.':~'m)'" ~~ ,.,.~
75-235/919
7800182
I~ -/!{--DO
DATE J"J,l_.______
___._J $ !n to ~:J
,....................----.------.----... ..-
...'.._._.. ..__ J)()LLARS m ~r~i~:::~
11. ...._n___... '.J.~i3~--.-.. _.._____._....
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.
,
JON 28 '00 08:37AM EHLERS & ASSOCIATES
Da/27/00 M",,'icello ~R^' 2111< ..1, Tn lna....... e.tlm...
CITY OF MONTlO:LLO. MINN.:SOT A
.
T.l.l'". CASH FLOW ASSllMPTIONS
,,"ere&! ...
Tax I!lC\llmAon RBI.:
InlIllIion Rlilte:
8.000%
1.29176 PlIY 00
0.0000%
Size ct parcel Percen~.
._!ltl_~~1._~!,~.6~.
7 5.5 100.00'1'
TOle! P8rc.l
,.M\I~..I ViI!U.!l_
150.000
BASE VALUE INFORMATION
P.y 2001 Clan
VlIlul: RSle
'1So:00ii--2,4W3A%
TI>:
. q~ty ..-. --.
3,600 eo.......
o
. =~.60(i~-p:;;'20Q1..._
Toii-~.
1S0,00!l.
Ollgl." Tu c:.podly I.....on F_O\Or.
, 15,~,Ooo ,
E~mll'llll8d by2000 Logi.l.tW1l
100._ ".........,
Type of TlIlllllcre",."'" Oisltiet:
Type ct ~19p'n....t
Nuftber f1IBuiklino SQl.llll'e Feet
'PROJlo;CT V AWE INFORMATION
E~"no"'I" Oel/8lopmenl
Menu/K1urin9
26,000
Eslirn8l8d Mltkbl Velue of New Pl'Cljea:
CIAs Rete on r...et $150,000 or 1.1....1 Velull
Clua R819 Me/1(et Ye\ue .. S150,000
es~",el8<l t.... CllPKity;
lisIift'lBled T_.:
APeUor's MlI'klll Y..k.1e1s.r.
Taxelllaf,
Aell\.lmes diatrk;\ is apprOYlld in SPIll'Ill. 2001.
.A8aumu an COI'la\nlCIion """"plete In 2001
_...d_lO..I/IO.
1.250,000 pay 03
2.40%
3,40.4
41,000 Pay 03
52,962
$50.00
$2,12
\\ ~
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P.2/3
"'_ge 1 )Ol<sf,ll82800,12:l
JUN 28 '00 08:37AM EHLERS & ASSOCIATES
0IJIZ7ICO Monlicallo 11M: 2.$lc. :I.t. TiU: InCl'A'f1"\IInl E.$\imlil\lII
CITY OF I\'lONTICJ::I.LO, Mll'lNESOTA
. T"X INCR":MENT CASH FI.,OW
~\~D';::NG' -- e;:: Pr;~:o' C~:-d St~:~~il- ^d;", ....--... H:,;- Stl~~~;:il .T~;~:i~~'r n;6
._Y,a. ...M~", Y'___~:",P~~Y_ Ctl~~. ~~",ly ..In"'em")! 10.~.$.'" .. ~~ d.. .!!:!~!......tlnl .. ..-.: '0,9_q~ .llncttll!'!!!'
0.0 08.01 200' 3,600 3,600 0 ....0 0 0' 0'1 0.0
0.50 ~.O' 2002 3,600 3,BOO 0 0 0 0 I 0 'I 0,0
1 ,.00 oe.o, 2002 0 0 0' 0' 0.0
,.50 02-01 2003 3,600 41,000 37,400 2<1,'56 (2.476) 0 2'.680 1 2.4'6! 0,6
\ 2,00 011.0, 200:3 .4,,56 (2..476) 0 2' ,680 I 2.416 i '.0
2.50 02-01 200<1 3.600 41.000 37,400 24,'56 (2,476) 0 2',680 2,4,6. I.G
3,00 08-0' 2004 24.156 (2,476) 0 2',6eo I 2.4,61 2,0
I 3,50 02-01 2005 3,600 4'.000 37,400 24.156 (2.476) 0 21.680 I' 2A'61 2.5
I 4.00 08-01 2005 7,4,156 (2,-476) 21,680 2,-416 3.0
4.50 02-01 .006 3.600 <11.000 37,400 24,'56 (2.476) 0 2'.680 . 2.4'61 3.5
I' 5.00 06.01 2006 24.156 (2,476) Q 2,.6eo 2.4'6 4.0
5.50 02-0' 2007 3.600 41.000 37.400 2<1.156 (2.476) 0 2',680 2,4'61 '1.5
,6.00 oe-o, :Z007 24,156 (2,476) Q 2' .fleo 2.416 6.0
! 6.50 02-0' 2008 3.600 41.000 37,'100 24.15ll (2.476) 0 21,iOijO 2,<1'0 I' 5.5
1,00 oe-o, 2008 24,156 (2,476) 0 21,680 2,416 6.0
17,so 02-0, 2009 3,600 -41,000 37,400 2<1,'56 (2,476) 0 21.680 2,4'61 6.6
le,oo oe-O' 2009 24,156 (2,476) 0 2,.680 2,-416 '/.0
8.50 02-C' 2010 3,600 4',000 37,400 2<1,'56 (2.416) 0 2',660 2.4161 '15
9.00 00-01 20,0 24,156 (2,476) Q 21.1350 2.416, 8.0
I 9$0 02..0, 2011 "3,600 41.000 37.400 2".156 (2.476) 0 21.680 2,410'1 a.S
10.00 oe.c, 20" 2.~,1~~. .~(:lF6).. .._ .0_. 21.680 _u..!..4.'6. 8.0
1-=::'. -~~~- ;;:I~nlV6Iue5---'" ~~:~~"-'-~1~::~)""- -g- ;:t~~' ,._.!3,461!-
,....--..-.. ..--- ......... .-.-.---. ...-..."" ......... ,--. . .-.... )......---- ............... .. ...-.... .----... .
P"'jlcuon. or' IIUmo... 00114 upon up,,,,,O tit" Y"II" of i""'......... .....-!I.. '",.1'. I"" I.,... 010. II iIIer"""n. i. ",..",4 In Z002, 'J. of m. dI.\~" wiN blI ",<lW<40 oy .n.
Y"'I.
.
.
Ell"" '"~ ""..... lnc.
P.3/3
pERIOD ENDING
yr~. M\h.
0.50 02-01
'.00 08..0'
1.50 02-01
2.00 DB-O,
2.50 02.0'
3.00 08-01
3.50 02.01
<1.00 08-0'
4.50 02.01
5.00 oe..o1
5.50 02.01
6.00 oe.o1
8.50 02m
7.00 08-01
7.50 02-01
8.00 06-01
8.50 02-0'
8.00 06.01
9.50 02-01
10.00 08.01
.~.2~~ 02-0'
Yr.
~OO2
2002
2003
2003
2004
2004
2005
2005
2000
2006
2007
2007
2008
2008
2009
2009
20,0
2010
20,1
20"
201~~
..-1
PtQI ~ 30.:.I.082tll0. '23
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) .
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JlUle 16,2000
MONTICELLO
Mr. John Crowley
Foam Fabricating, Inc.
3131 Fembrook Lane North
Suite 223
Plymouth, MN 55447
Dear John:
Thank you for the opportunity to market the City of Monticello for your planned relocation and expansion.
The City of Monticello is Open for Business.
It is my lUlderstanding your preliminary plans include the construction of a 50,000 square foot office,
production, and warehouse facility on approximately seven acres. At your two facilities, Foam
Fabricating currently employs 27 full-time people at an average hourly wage of $1 0.50 excluding benefits.
.
Enclosed is a copy of our marketing brochure and a copy of our newly updated community profile, and an
industrial site map and contact persons. Per our telephone conversation, it was noted the City of
Monticello is negotiation to acquire land for future industrial development. With your plans for
construction in 2001 or 2002, this may present another site option for you to consider.
On behalf of the Mayor of Monticello, I invite you and your associates to visit our comnuU1ity to see first-
hand the many opportlUlities offered, to tour our industrial sites, and meet some of our industrial business
owners and leaders. Additionally, our leaders would enjoy a tour of your existing production facilities.
I will contact you in about a week to answer additional questions and to discuss our next step.
The City of Monticello is Open for Business.
Sincerely,
CITY OF MONTICELLO
G~. \<U\uQJJ~~
Ollie Koropchak
Director of Economic Development
c:
Mayor Roger Belsaas
Deputy Administrator Jeff O'Neill
File V
Il~
.
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831. (763) 295-2711. Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170 . Fax: (763) 271-3272
June 16,2000
MONTICELLO
Mr. Gary Woods
Wellington Window & Door Company
3938 Meadowbrook Road
St. Louis Park. MN 55426-4506
Dear Gary:
It is my understanding the Wellington Window & Door Company is looking to expand and the proJXlsed expansion
plans consist of an approximate 100,000 square foot office/production facility with room for future expansion.
WAIT! Don't throw this letter away. The City of Monticello is only 36.8 miles from downtown MinneaJXllis ......
No more traffic congestion for employees ....... Affordable and available land for development.
.
The City of Monticello welcomes the oPJXlrtunity to market our community to the Wellington Window & Door
Company. The City of Monticello is open for business. I've enclosed a copy of our marketing brochure, an
updated community profile, and an industrial site map and contact persons. In 1999, the Monticello School
District opened the doors to a new 278,000 square foot high school. Earlier this year, the City of Monticello held
a grand opening for the new 78,000 square foot community center and the Hospital District will soon open its
doors to a 30,000 square foot expansion including an expanded emergency room and birthing suites. These are
just a few of the new quality of life developments within our community of approximately 8,200+ JXlpulation
located along 1-94 between the Twin Cities and St. Cloud.
The City of Monticello has a team of community/civic leaders willing to provide a tour of our community. The
team also visits existing plant facilities or businesses prior to determining the level of financial assistance offered
to a qualifYing business. The City offers Tax Increment Financing and the Greater Monticello Enterprise Fund (a
below prime rate loan program). The City of Monticello has been successful in obtaining State funding, industrial
revenue bonds, and regional low-interest loans.
I will contact you within the next week to answer questions and, hopefully, to set up a date and time for you to visit
Monticello or for the Monticello Team to visit your facility. I look forward to meeting you. The City of
Monticello is open for bnsiness.
Sincerely,
CITY OF MONTICELLO
6~ ~c,\ ~i)~
Ollie Koropchak
Director of Economic Development
c:
Tom Adams, Wellington Window & Door Company
Mayor Roger Belsaas
City Deputy Administrator Jeff O'Neill
City Chief Building Official Fred Patch
File V
\l~
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Monticello City Hall, 505 Walnut Street, Suite I, Monticello. MN 55362-8831. (763) 295-2711. Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax: (763) 271-3272
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Section I.
Section 2.
Section 3.
Section 4.
Section 1.
Section 2.
AMENDED
BYLA WS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
ARTICLE I
THE AUTHORITY
Name of Authority. The name of the Authority shall be the "I-lousing and
Redevelopment Authority in and for the City of Monticello, Minnesota."
Seal of Authority. The seal of the Authority shall be in the f()rm of a eircle and
shall bear the name of the Authority and the year of its organization.
Of/Ice of the Authority: Place of Meeting. The ofTice of the Authority shall be at
such place in the city of Monticello, Minnesota, as the Authority may from time
to time determine by resolution. Regular and special meetings of the Board of
Commissioners shall be open to the public and shall be held in Monticello City
Hall at 505 Walnut Street, Suite #], Monticello, Minnesota; provided, however,
that upon three days written notice to the Commissioners of the place of such
meeting, any regular or special meeting may be held at such place within the city
of Monticello as the notice shall designate.
Powers of the Authority. The Authority, by and in its corporate name, shall have
and exercise all powers, functions, rights, and privileges pursuant to Minnesota
Statutes 469.001. et seq.
ARTICLE II
COMMISSIONERS
Authority. The business and affairs of the Authority shall be managed by or
under the authority of the Board of Commissioners, except as otherwise permitted
by statute.
Number, Qualification, and Term of Office. There shall be five Commissioners
appointed by the Mayor of Monticello and approved by the City Council.
Commissioners shall be natural persons, at least 18 years of age, and must reside
in the city of Monticello. Commissioners shall serve a term of five years with one
Commissioner's term expiring each year.
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KAREN\OFFICE\OLLlE\BYLAWS. HRA6/16/2DDD
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Section 3.
Section 4.
Section 1.
Section 2.
Section 3.
Section 4.
Vacancies. Vacancies on the Board of Commissioners occurring by reason of
death, resignation, removal, or disqualification shall be filled for the unexpired
term by the Mayor in accordance with the procedures set forth in Artiele II,
Section 2.
Removal. For inefTiciency or neglect of duty, or misconduct in office, a
Commissioner may be removed from 0111ce by the City Council in accordance
with Minnesota Statute 469.010.
ARTICLE III
OFfICERS
Officers. The Ofticers of the Authority shall consist of a Chair, Vice-Chair, and a
Secrctary- Treasurer. The Chair and Vice-Chair shall be elected from among the
Commissioners. A Commissioner shall not hold more than one of the above-
named offices at the same time. The Secretary-Treasurer shall be appointed by
the Commissioners.
Chair. The Chair shall preside at all meetings of the Board of Commissioners if
present. Except as othcrwise authorized by resolution of the Board of
Commissioners, the Chair shall sign all contracts, deeds, and other instruments
made by the Authority. At each meeting, the Chair shall submit such
recommendations and information as considered proper concerning the business,
affairs, and policies of the Authority. Exccpt as otherwise provided by resolution
of the Board of Commissioners, all such orders and checks shall be counter-
signed by the Chair.
Vice-Chair. The Vice-Chair shall perform the duties of the Chair in the absence
or incapacity of the Chair; and in case of resignation or death of the Chair, the
Vice-Chair shall perf(Jrm such duties as are imposed on the Chair until such time
as the Board of Commissioners shall select a new Chair.
If in the event a quorum is present and the Chair and Vice-Chair are absent or
unable to attend a meeting of the Board of Commissioners. The three remaining
members shall elect from among the remaining Commissioncrs a Chair for the
said meeting.
Secretary-Treasurer. The Secretary-Treasurer shall perform the duties of the
office of Secretary-Treasurer. The Secretary-Treasurer may delegate the
responsi bility for recording the Minutes of the Board of Commissioner meetings
to the Executive Director or to the Authority OHice Secretary as is determined
appropriate by the Secretary-Treasurer. The Secrctary-Treasurer shall sign all
orders and checks for the payment of moncy and shall payout and disburse such
moneys under the direction of the Authority.
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Section 5.
Additional Duties. The Officers of the Authority shall perform such other duties
and functions as may from time to time be required by the Authority or the bylaws
or rules and regulations of the Authority.
Section 6.
Election or Appointment. The Chair and Vice-Chair shall be elected at the annual
meeting of the Board of Commissioners from among the Commissioners of the
Authority and shall hold office fiJr one year or until their successors arc elected
and qualified. The Secretary-Treasurer shall be appointed at the annual meeting
of the Board of Commissioners by the Commissioners.
Section 7.
Vacancies. Should the oHice of the Chair, Vice-Chair, or Secretary-Treasurer
become vacant, the Board of Commissioners shall elect a successor from its
members at the next regular meeting, and such election shall be for the unexpired
term of said oHice.
ARTICLE IV
EXECUTIVE DIRECTOR
The Authority shall employ an Executive Director who shall have general supervision over the
administration of its business and affairs, subject to the direction of the Board of Commissioners.
As assistant to the Secretary-Treasurer, the Executive Director shall ensure that proper records of
the Authority are maintained. The Executive Director (or designee) shall act as Secretary of the
meeting of the Board of Commissioners and shall keep a record of the proceedings in ajournal of
proceedings to be kept for such purposes (the minutes of the proceedings are to be signed by the
recorder plus the Authority Commissioner acting as Chair at the meeting). The Executive
Director shall perf()fIll all duties incident to the Executive Director position as may be assigned
by the position description as approved hy the Board of Commissioners. The Executive Director
shall keep in safe custody the scal of the Authority and shall have the power to anIx such seal to
all contracts and instrumcnts authorized to be executed hy the Authority.
The Executive Director shall have the care and custody of all funds of the Authority and shall
deposit the samc in the name of the Authority in such bank or banks as the Board of
Commissioners Inay select. The Executive Director shall he charged with the management of the
housing projects of Authority.
The Executive Director shall keep regular books of accounts showing receipts and expenditures
and shall render to the Board of Commissioners, at each regular meeting (or more often when
requested), an account of his/her transactions and also of the financial condition of the Authority.
The Executive Director shall give such bond of the l~lithful performance of duties as the Board of
Commissioners may determinc.
KARENIOF FICEIOLLlEIBYLA WS H RA 6/16/2000
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The Executive Director shall be appointed by the Board of Commissioners. Any person
appointed to fill the oHiee of Executive Director, or any vacancy therein, shall have such term as
the Board of Commissioners fixes, but no Commissioner of the Board of Commissioners shall be
eligible to this oUice. When the office of Executive Director becomes vacant, the Board of
Commissioners shall appoint a successor, as aforesaid.
So long as the Executive Director is an employee of and paid by the City, the Executive
Director's compensation will be determined in accordance with City compensation policies and
procedures provided that the Board of Commissioners shall at least annually review the
perf()rmance of the Executive Director and make recommendations to the City regarding that
person's compensation. If the Executive Director is not an employee of the City but is
independently retained by the Authority, the Board of Commissioners shall establish the
compensation of the Executive Director.
ARTICLE V
ADDITIONAL PERSONNEL
The Board of Commissioners may from time to time employ such personnel as it deems
necessary to exercise its power, duties, and functions as prescribed by the Municipal I lousing
and Redevelopment Law of Minnesota applicable thereto. The selection of such personnel
(including the Executive Director) shall be determined by the Board of Commissioners subject to
the laws of the State of Minnesota. Tn cases where such personnel are employees orand paid by
the City, such persons' compensation will be determined in accordance with City compensation
policies and procedures, provided that the Board of Commissioners shall at least annually review
the performance of the personnel and make recommendations to the City regarding such persons'
compensation. If any personnel arc not employees of the City but are independently retained by
the Authority, the Board of Commissioners shall establish the compensation of such personnel.
ARTICLE VT
MEETINGS
Section 1.
Annual Meeting. The annual meeting of the Board of Commissioners shall be
held on the first Wednesday of April at 7 p.m. at the regular meeting place of the
Board of Commissioners; provided, however, that the date/time of the annual
meeting may be postponed to a subsequent date/time upon the vote of a majority
of Commissioners in office at any time taken at any regular or special meeting.
Section 2.
Regular Meetings. Monthly meetings shall be held without notice at the regular
meeting place of the Board of Commissioners on the first Wednesday of each
month at 7 p.m. unless the same shall be a legal holiday, in which event said
meeting shall be held on the next succeeding secular day. In the event the
date/time/meetings place of a particular meeting must be changed, the Chair may
make such change deemed necessary by notifying all Commissioners by
delivering (by staff) a notice to their home address at any time prior to the
meeting or mailing a notice to the business or home address at least three (3)
working days prior to the date of such regular meeting.
KARENIOFF ICEIOLLI EIBYLA WS H RA:6/16/2000
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Section 3.
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Special Meetings. Special meetings of the Board of Commissioners may be
called by the Chair or two members of the Board of Commissioners for the
purpose of transacting any business designated in the call. The call (including
location of meeting) for a special meeting may be delivered at any time prior to
the time of the proposed meeting to eaeh member of the Board of Commissioners
or may be mailed to the business or home address of each member of the Board of
Commissioners at least three (3) working days prior to the date of such special
meeting. At such special meeting, no business shall be considered other than as
designated in the call; but if all of the members of the Authority are present at a
special meeting, any and all business may be transacted at such special meeting.
Notice of any special meeting shall be given in accordance with Minnesota
Statutes, Section 471.705, subd. I c, or any successor statute regarding notice of
meetings of public bodies.
ARTICLE VII
QUORUM
The powers of the Authority shall be vested in the Commissioners thereof in otTice from time to
time. Three Commissioners constitute a quorum (except as noted below) for the purpose of
conducting its business and exercising its powers and for all other purposes, but a smaller
number may adjourn from time to time until a quorum is obtained. When a quorum is in
attendance, action may be taken by the Board of Commissioners upon a vote of a majority of the
Commissioners present (except as noted below).
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Exception: In regard to action on the annual Authority operating budget, or revisions thereto,
there must be at least four Commissioners present, and the majority of those present must vote in
hwor of such for the matter to be approved.
Section 1.
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ARTICLE VllI
ORDER OF BUSINESS
Order of Business. At the regular meetings of the Board of Commissioners, the
following shall be the Order of Business:
1. Roll call
2. Reading and approval of minutes of the previous meeting
3. Items not contained in the agenda
4. New business
5. Bills and communications
6. Project update by Executive Director
7. Other Business
8. Adjournment
All resolutions shall be in writing and shall be copied in the journal of the
proceedings of the Board of Commissioners.
KAR ENIOF F ICEIQLLI EIBYLA WS H RA6/16/2000
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