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HRA Agenda 05-03-2006 I AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, May 3,2006 - 6:00 p.m. , Bridge Room - Community Center Commissioners: Chair Brad Barger, Vice Chair Steve Andrews, Dan Frie, Damn Lahr, and Bill Fair. Council Liaison: Wayne Mayer. Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Shumann. 1. Call to Order. 2. Consideration to approve the AprilS, 2006 and April 12, 2006 HRA minutes. 3. Consideration of adding or removing items from the agenda. 4. Consent Agenda. . 5. Consideration to review and approve a Transformation Home Loan application for 511 Elm Street. 6. Consideration to set a workshop date for sole purpose to discuss ideas and to target properties or areas for purchase as properties come on the market. 7. Consideration to appoint an HRA commissioner to the Comprehensive Plan Update Task Force. 8. Consideration to authorize payment ofHRA bills. 9. Consideration ofHRA Executive Report. 10. Committee Reports: Marketing Fiber Optic 11. Next regular HRA meeting - Wednesday, June 7, 2006. 12. Adjournment. . . . . I MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 5, 2006 , Commissioners Present: Chair Darrin Lahr, Steve Andrews, Brad Barger, Bill Fair Commissioners Absent: Dan Frie Council Liaison Absent: Wayne Mayer Staff Present: Rick W olfsteller, Ollie Koropchak, Angela Schumann Guests: Mike Mahar, President and CEO, Paul Cserpes, Director of Operations, Karlsburger Foods, Inc and Dave Panek, Keystone Design/Build 1. Call to Order. Chairman Lahr called the meeting to order at 6:00 PM, welcoming representatives from Karlsburger Foods. 2. Consideration to approve the March 1. 2006 HRA minutes MOTION BY COMMISSIONER FAIR TO APPROVE THE MINUTES OF MARCH 1, 2006. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED 4-0. 3. Consideration of adding or removing items from the agenda. NONE. 4. Consent agenda. NONE. 5. Consideration to approve a resolution adopting a modification to the Redevelopment Plan for Central Monticello Redevelopment Proiect No.1 and establishing TIF District No. 1-37 therein and adopting a TIF Plan therefore. Applicant: Karlsburger Foods Koropchak reported that this is an economic TIF District which will run for 11 years, collecting increment for 9 years. Koropchak stated that she had been I working with Karlsburger Foods over the past few months to locate their new 20,000 square foot facility in the new office/industrial park. Koropchak stated that the jobs and wages for Karlsburger are outlined in the report. Koropchak noted that Public Works Director Simola had visited the company's Dayton site and found it compatible with City service systems. The City Council called for a public hearing to adoptthe TIF plan. The Council approved the final plat for this development; at this point it needs to be recorded at the County. Koropchak noted that the Planning Commission had also approved their resolution and that the TIF plan is out for comment at Wright County and the School District. Koropchak indicated that the next item for HRA consideration will be to call for special meeting to address the purchase and development contact between HRA and Karlsburger Foods. . , Panek presented the floor plan and elevations for the proposed Karlsburger building, noting that the site plan had changed a bit. He eXplained that they haven't chosen the style of pre-cast for the exterior yet, nor had the chosen the ultimate elevation design of the mezzanine level. Barger asked for clarification on what Karlsburger produces. Mahar explained that Karlsburger manufactures soup bases, which are sold via truck to about 3,000 customers, including some in the Monticello area. Karlsburger representatives sell throughout the Midwest and via UPS in 37 states. Barger asked how they found out about Monticello's industrial park. Mahar and Cserpes stated that the billboard had been their primary lead. Mahar stated that Koropchak was a great help in determining their ultimate location. Mahar stated that Monticello's whole package was put together well. They also got a good explanation of what a TIF district is. . Lahr noted that they had originally had some difficulty with the site, but allowing business to plat what they need does allow more flexibility. Karlsburger noted that the area is an attractive site. Mahar stated that most oftheir employees live north of Dayton. Lahr stated that the HRA is happy to have Karlsburger locate in Monticello and encouraged them to communicate with other businesses on the industrial site and to become involved in the community. Barger asked about their construction timeline. Mahar stated that they hope to finish December 8th. Fair asked if the City's schedule would accommodate their schedule. Koropchak stated that it should. Koropchak asked when the plans would be available for staff review. Panek stated that they would be available for the next site review. MOTION BY COMMISSIONER FAIR TO APPROVE A RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR . I . CETNRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND ESTABLISHING TIF DISTRICT NO. 1-37 THEREIN AND THE ADOPTION OF THE TIF PLAN THEREFOR. , MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 4-0. 6. Public Hearing on the Business Subsidy Agreement and Land Sale _ Consideration to adopt a resolution approving the Purchase and Redevelopment Contract between the4 HRA and SL Real Estate Holding's LLC, including the business subsidy agreement and land sale. Re.scheduled to April 12. REMOVED. (Public hearing notice was note published.) 7. Consideration to approve a resolution requesting the City Council call for a public hearing on the modification of the TIF Plans for TIF District Nos. 1-2 (Metcalf/Larson) and 1-24 (St. Ben's). Koropchak stated this item asks the HRA to approve a resolution for the City Council to call for a public hearing, which would modifY the TIF districts and enlarge the budgets for the Metcalf/Larson and St. Ben's districts. . MOTION BY COMMISSIONER BARGER TO ADOPT A RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF MOTNICELLO CALL FOR A PUBLIC HEARING ON A MODIFICATION TO THE TIF PLAN FOR TIF DISTRICT NO. 1-2 AND THE MODIFICATION TO THE TIF PLAN FOR TIF DISTRICT NO. 1-24. MOTION SECONED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. 8. Consideration to approve the election ofHRA officers and approye appointment of commissioners to committees. Koropchak commented that at the previous meeting Dan Frie has asked Lahr ifhe would be willing to chair on his behalf as he knows he has a busy year. Fair asked if perhaps Frie had indicated that he wanted to be Vice Chair. Fair stated that he would like to keep it in the rotation. Lahr asked if they would switch spots. Barger stated he could serve as Chair, although he would prefer Frie would. Andrews also stated a preference for maintaining the rotation. ...... ..., MOTION BY COMMISSIONER LAHR TO NOMINATE AND ELECT BRAD BARGER AS CHAIR AND STEVE ANDREWS AS VICE CHAIR OF THE HRA FOR YEAR 2006, AND APPROVE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY-TREASURER FOR 2006. I MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 4-0. . Lahr and Barger state that they are willing to remain on the marketiIJ,g committee. Andrews will serve as the HRA representative to the fiber optics task force. Koropchak noted that a representative may also need to be involved on the camp plan committee. 9. Consideration to review an accept the year-end financial reports for the HRA General Fund and TIF Fund as prepared by HRA Treasurer Wolfsteller. Re- scheduled to Aoril12. REMOVED. 10. Consideration to review for amending the HRA Business Subsidy Criteria and HRA Bylaws for possible amendment and to call for a public hearing if determined. Koropchak stated that the amendment is to include within the subsidy criteria a nonrefundable fee submitted in conjunction with the Preliminary Development Agreement. She referred to the recommendations made by the HRA attorneys on this matter. In order to include that item, the HRA has to amend the criteria, which requires a public hearing. . MOTION BY COMMISSIONER ANDREWS TO CALL FOR A PUBLIC HEARING ON MAY 3, 2006 TO AMEND THE BUSINESS SUBSIDY CRITERA OF THE MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY. MOTION SECONDED BY COMMISSIONER FAIR. Lahr clarified the copy included was not the copy with the changes. Koropchak confirmed. Barger asked if other districts have been running over the initial deposit. Koropchak clarified that there are two different deposits. The $7,500 deposit is for normal districts. The $10,000 deposit is for the business center. MOTION CARRIED, 4-0. 11. Consideration to approve calling for a special HRA meeting. MOTION BY COMMISSIONER BARGER TO CALL FOR A SPECIAL MEETING OF THE HRA ON WEDNESDAY, APRIL 12,2006, AT 6:00 PM. . I Lahr and Andrews noted that they would not be in attendance. . MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 4-0. , 12. Consideration to authorize pavment of HRA bills. MOTION BY COMMISSIONER LAHR TO AUTHORIZE PAYMENT OF THE HRA BILLS. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. 13. Consideration ofHRA Executive Director's Report. Koropchak provided her report, stating that Twin City Die Casing will be hosting a grant writing ceremony. She stated that Monticello has been invited to attend a state seminar of regional industrial recruitment targeting; Koropchak stated that she will try to attend. Koropchak stated that on the 19th of April, Sunny Fresh will be receiving the Malcolm Baldridge award in Washington. They will be broadcasting the ceremony live at the Community Center. . Koropchak reported that it appears that A VR has accepted the City's offer. There is an agreement prepared and Koropchak has the opportunity to review the document. Koropchak stated that the covenants have only been recorded on the first 35 acres, so A VR would only have to follow the 1-2 district requirements. Lahr asked why we would we not assume that the same standards would apply to this property. Koropchak replied that the attorney's letter stated that staff would review their plans. Barger asked what land value is. W olfsteller replied that it is approximately $1.2-$1.3 million at $2.65 per square foot, plus A VR would receive $1.5 million in cash. Koropchak stated that she, W olfsteller and the finance department had met with Ehlers to begin going over the TIF budgets. They will be meeting again on the 12th. Korophak reported that she had called Dahlheimers regarding the funding shortfall, they brought in a check today. Koropchak stated that she had been getting numerous calls on the transformation loan program. . I 14. Committee Reports. a. Marketing The marketing committee will meet-on the 20th. . b. Fiber Optic Koropchak stated that representatives from the task force sat in on interviews with the three consultants. On Monday night, the task force will make a recommendation on a consultant firm to complete the feasibility study. It will be about $60,000 for the study. 15. Next regular meeting - Wednesday, May 3,2006 16. Adjourn. MOTION TO ADJOURN BY COMMISSIONER BARGER. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. . . . . . I MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 12, 2006 - 6:00 p.m. Mississippi Room - Community Center Commissioners Present: Chair Brad Barger, Dan Frie, and Bill Fair. Commissioners Absent: Vice Chair Steve Andrews and Darrin Lahr. Council Liaison Absent: Wayne Mayer. Staff Present: Rick Wolfsteller and Ollie Koropchak. 1. Call to Order. Chair Barger called the special HRA meeting to order at 6:05 p.m. declaring a quorum. 2. Public Hearing on the Business Subsidy Al!I'eement and Land Sale. Chair Barger opened the public hearing on the business subsidy agreement. Koropchak noted the public hearing notice appeared in the local newspaper satisfying the legal requirements. The Business Subsidy Agreement, a section within the Purchase and Redevelopment Contract, outlines the general terms, job and wage-levels goals, remedies, and reports agreed upon by the redeveloper. With no public comments or questions, Chair Barger closed the public hearing on the Business Subsidy Agreement. Chair Barger then opened the public hearing on the land sale. Koropchak noted this public hearing notice also appeared in the local newspaper satisfying the legal requirements. An HRA has the power to acquire and sell land; however, unlike the City, the HRA must hold a public hearing prior to the land sale according to Minnesota Statutes. On April 12, 2006, the City Council by resolution conveyed 3.75 acres of Otter Creek Crossings to the HRA for the anticipated land sale to SL Real Estate Holdings LLC. With no public comments or questions, Chair Barger closed the public hearing on the sale of land. The commissioners noted they'd read the Purchase and Redevelopment Contract between the HRA and SL Real Estate Holdings LLC which was attached to the agenda packet and had no questions. Koropchak outlined three questions raised by Mike Maher, SL Real Estate Holdings LLC: First, requested changing the construction completion date from December 31, 2006 to March 1, 2007. Koropchak indicated she thought the HRA would be OK with this change and informed him of the January 2,2007, assessed market value date within the I HIU Minutes - 04/12/06 . Assessment Agreement and eXplained the January 2 date would remain as is. Secondly, Maher thought the "wage-level goals" meant an "at least" per hour wage rJther than as written "average hourly wage of the 16 or 18 jobs, respectively". Third, he questioned if it was reasonable for only 20 days for him to review and provide the HRA with a commitment of title insurance policy. Koropchak explained it was 20 days from the date he received the commitment and not 20 days from the execution date of this contract. Koropchak to clarify this with Bubul. COMMISSIONER BILL FAIR MADE A MOTION TO ADOPT A RESOLUTION APPROVING THE PURCHASE AND REDEVELOPMENT CONTRACT BETWEEN THE HRA IN AND FOR THE CITY OF MONTICELLO AND SL REAL ESTATE HOLDINGS LLC AMENDING THE CONSTRUCTION COMPLETION DATE FROM DECEMBER 31, 2006, TO MARCH 1,2007; THE ASSESSED MARKET VALUE DATE OF JANUARY 2, 2007, TO REMAIN AS WRITTEN; THE WAGE-LEVEL GOALS TO REMAIN AS WRITTEN, AND TO CONSULT WITH THE HRA ATTORNEY RELATIVE TO POSSIBLE AMENDING OF THE 20 DAY QUESTION. DAN FRIE SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. 3. Consideration to adopt a resolution authorizing Interfund Loan for advance of certain costs in connection with TIF District No. 1-37. . The Interfund Loan is an Exhibit to the Purchase and Redevelopment Contract. The resolution for adoption actually authorizes the advancement of funds for expenditures eligible to be paid by tax increment. The amount of the loan (expenditure) is $142,113 at an interest rate of 6%. Interest begins to accrue from the date of Closing. BILL FAIR MADE A MOTION TO ADOPT A RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TIF DISTRICT NO. 1-37. DAN FRIE SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. 4. Consideration to review and accept the year-end financial reports for the HRA General Fund and TIF Fund as prepared by HRA Treasurer Wolfsteller. Treasurer W olfsteller distributed a copy of the preliminary summary of the HRA General Fund and each TIF District Fund. He noted that an adjusted report would be forthcoming as this afternoon the finance department, he, and Koropchak met with Ehlers to discuss a coding system which satisfies the State Auditors and provides a consistency among the City's Audit Report and HRA's TIF Reports to the State Auditor. He gave an example of District No. 1- 36 (Dalhheimer's) where the cash received at closing for land sale no longer is deposited in the . district fund but is deposited in the General Fund. This also applies to the up-front deposit and administrative cost shortfalls received. Koropchak noted the cash balances of District Nos 1- 2 . . . I BRA Minutes. 04/12/06 , 2, 1-5, and 1-6 in which the HRA has or is taking steps to modify the budgets of districts 1-2, 1-6, and 1-24 in order to retain and maximize the use of tax increment. Shown on this preliminary summary is a cash balance of $2,666,439. Koropchak noted the need to compare these figures with the Ehler's Report recently prepared as a management tool for the HRA. The Ehler's Report includes projected future obligations. Given the fund balances, Fair initiated a discussion on the need for a workshop for the sole purpose to discuss ideas and to target properties or areas for purchase as properties come on the market. Members agreed and requested this be an agenda item on the May 3 agenda to establish a workshop date. NO ACTION WAS NECESSARY ON THE PRELIMINARY SUMMARY. 5. Other. Koropchak requested clarification on the sale of land in Otter Creek Crossing. If a company does not meet the criteria of job and wage goals or building value, is the HRA willing to sell land at the market rate of $2.65 per square foot? The commissioners said yes. It was the opinion of some of the commissioners, if the ready-mix plant locates in Otter Creek than perhaps the criteria will need to be relaxed. Lastly, Koropchak noted in her opinion the land prices need to be increase from $1.00 to $1.25 per sq. ft. and the market rate from $2.65 to $3.00 per sq. ft. to keep up with inflation. Based on the meeting with Ehler's today, Koropchak first needs to verify estimated infrastructure costs and number of developable acres with WSB Engineering. 6. Next HRA meeting - Wednesday. Mav 3.2006.6:00 p.m.. 7. Adjournment. The HRA meeting adjourned at 7:00 p.m. by a consensus of its members present. Recorder HRA Chair 3 . , . . I BRA Agenda - 05/03/06 5. Consideration to review and aporove a Transformation Borne Loan application for 511 Elm Street. A. Reference and back!!round: The HRA has received it's second application for the Transformation Home Loan Program. The applicant, Tonette Breiwick, resides at 511 Elm Street. The remodeling consists of an addition and new windows. The total estimated project costs is approximately $160,000 according to the general contractor, Dennis James Custom Builders. Gary Anderson, Chief Building Official, is scheduled to complete the pre-modeling inspection, April 27th. It appears they have an approved loan or mortgage for the improvements, I have not connected with the lender. Reviewing the construction statement, it appears the HRA program would cover all but the listed appliance - home center. I did confirm with O'Neill that the house is not located within a potential future redevelopment of the Ruff property. Plans have been submitted to the Building Department. Criteria: $160,000 - Estimated cost of project $ 40,000 - 25% of total cost $ 20,000 - Maximum amount ofHRA loan $140,000 - Lender financing. The full homestead market value for payable 2007 is $106,400 (Land $40,000, building $66,400). B. Alternative Action: L Motion to approve Transformation Home Loan No. 002 for 511 Elm Street, Antoinette Breiwick in the amount of 25% of the verified sworn construction statement or not greater than $20,000 subject commitment from Lender. 2. Motion to deny approval of Transformation Home Loan No. 002 for 511 Elm Street, Antoinette Breiwick. Project does not conform to pre-modeling inspection report criteria or the lender unwilling to commit. 3. Motion to table any action. 1 HRA Agenda - 05/03/06 c. Recommendation: ,. It appears to be a project the HRA is looking for. Hopefully Gary's inspection meets the criteria and the lender is willing to work with us. Alternative No. I would be recommended. D. Supportine Data: Application. Gary's report and building plans available at meeting. 2 . . . DEVELOPMENT SERVICES Phone: (763) 271-3208 Fax: (763) 295-4404 E-mail: ollie.koroochak@.ci.monticello.mn.us Economic Development Director .- Housing and Redevelopment Authority in and for the City of Monticello, Minnesota MONTICELLO TRANSFORMA TION HOME APPLICATION FORM General Information: M ~ jjte Name(s) ofOwner(s) (as they appear on title) '; D\f)f" ' " Present Address '5""1/ E/ In ;sf: -7'-3 ~d9<).- fDOLj3 :0 6 k I '; re h.1.)~" (\ " ' \ mOltl1 (~ )/0 . c..~ 763-L/27'-'R57? Phone Number(s) Future Address (if buying to remodel) Remodeling Information: A . J ' Description of improvements to be done ,lJiJ71ts n - fle~ \i')1'n~t,.t':0 ' - When do you plan on remodeling? ~ Name of Architect or Designer11'c' . ' , " e<CJ:YYi) Name ofRemodeler Oelfl)1fI]~ ~~" C\..ASt-oiVI k1u:\ \J -e,(' Attach a list of contractors if a general contractor is not being used. Financing Information: Estimated amount of contract $ 0 D Appraised value of roperty upon completion (if lender financed) $ Name of Lender I .,' 0 Type of financing (second mortgage/refina Anticipated closing date Source of financing if not lender financed ~\":2- '1\& ~ IOoL.( Requirements for a complete application Check off all that apply; provide explanation for those not completed. ~ A copy of the cost estimate( s) and descripti on of improvements is attached. . Building plans are attached (both floor plans and exterior elevations). ./ Site plan is attached (for additions that require crawl space or foundation). V"""" Ready to schedule a pre-remodeling condition evaluation (arranged by the Monticello HRA). Please explain if an item is not checked: <t~ "d-,eoJ ~ 4btOOO ~ ~. II l~ . Y00 .tt, (~ I ~ 0 0 ~ Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 5536 -8 31 . (76_) 295-27 J I . Fax.: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170 . Fax: (763) 271-3272 ...-a. .,... . . Transformation Home Application F onn Page 2 Send completed application and attachments to: Monticello HRA 505 Walnut Street, Suite 1 Monticello, MN 55362 Attention: Ollie Koropchak I , To the fullest extent permitted by law, the Homeowner agrees to defend, indemnify and hold harmless the HRA and the City of Monticello, their officers, agents and employees from and against all claims, loss, damage, costs and expense arising from bodily or personal injury or sickness, illness, or death of persons or damage to property resultin J from or alleged to have resulted from the Remodeler's work and operations. ,-/-Y-Ob Date T ransfoJ'1llutionapplicati('ll1. rOIlll Owner Date I DEVELOPMENT SERVICES Phone: : (763) 27 I -3208 Fax: (763) 295-4404 E-mail: ollie.koropchak@ci.monticello.rnn.us Economic Development Director MONTICELLO Housing and Redevelopment Authority in and for the City of Monticello, Minnesota , II TRANSFORMATION HOME - REMODELER FORM II IPP-~I A-v-e U~~ (J*rneJ> C!' ~ Y2r~';c1er:r 7 -6/?- ,7' ~? -77 r::-- 0 ~c6@/.fIJI~ )Ie s;;- A/;(-ra! ~ / JTS76 (' ZJ 74 Business Name:b . . €/1/;t/I,,( Phone No.: ~02-70/ -.:..(J'afax No.: ~ c-.b @~ /5 fJ ) Business Address; ..nO 0 Contact person:~nH ;"J' E-Mail: 1. How many years has your company been in business? /s- 2. In the past three years, what has been the average number of homes your company has remodeled per year? ~ 3. In the past three years, what has been the average remodeling contract price by your company? /tJO/OtJtJ - /60, 000 , , 4. Attach copy of your company warranty policy. Yes No 5. You agree that you have the ability, at all times during the term of the Remodeling Contract, to have and keep in force the following minimum insurance coverages: COVERAGE: Workers Compensation Employer's Liability Comprehensive General Independent Contractors Products/Completed Contractual Liability LIMITS: Statutory $300,000 Bl & PD Incl uded Included Included Incl uded Monticello City Hall, 505 Walnut Street, Suite 1, 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 I lation Loan - Remodeler Form MONTICELLO Personal Injury Liability , "XCU" Liability (if applicable) Broad Form Property Comprehensive Automobile for owned, hired, and automobiles You meet Minnesota state licensing requirements. Yes ~ Included Included Included $300,000 Bl & PD 6. 7. Please list at least three municipalities in which you have secured remodeling permits within the past 3-5 years and indicate the name of the City staff person (building official or other) with whom you had the most contact. 1. 2. tt;~~ ~~ ~~, O(;r t!!::-e-- /6'}::/;:7; .;;' I 4:~ ,~ I / "\ .). 8. Provide names, addresses and telephone numbers of at least five customer references that we may contact as references. -- -- 1. 2. ~ Gv ~LG~ "\ .J. 4. 5. 9. Provide names, addresses and telephone number of at least three major suppliers or sub- contractors that we may contact as references. 1. 2. on~ -;c::,.e-'X-: ~ , / ( ry;' The information contained on this form may be provided to lenders, homeowners, and others interested in participating in Monticello Remodeling Programs. By: b Its OWM\9r ,f/ ~'f3':42 /k~ ?~c27r-(J6 "\ .J. RemodcJcr. form Date: Monticello City Hall, 505 Walnut Street, Suite], Monticello, MN 55362-883] . (763) 295-27] I . Fax; (763) 295-4404 Off1ce of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170 . Fax: (763) 271-3272 I DENNIS .JAMES CUSTOM BUILDERS ITEMS SUBCONTRACTOR PHONE TOTAL AMOUNT BALANCE .. COST PAID Land Acquisition Cost , Owned by Owner 763-4398541 Survey Taylor Land Surveyors 763-295-3388 750.00 Permits/Temp Electric City of Monticello 763-295-2711 3,000.00 Architect Design Team 320-252-1517 944.73 944.43 0 Excavation Hilltop Excavating 612-282-4891 2,000.00 Add'l Permit Utilities EST 500.00 Foundation To be determined 612-701-5426 8,996.00 Concrete Work Same as above 612-701-5426 9,702.00 Waterproofi ng Metro Home 763-42] -3213 900.00 Drain Tile Metro Home 763-441-3213 700.00 Lumber MN Building Components 763-682-3225 33,948.20 Framinjl; To be decided 612-701-5426 8000.00 Roofing Dan Schmidt Exteriors 763-878-1343 2,000.00 Sidinjl; Dennis James C B 612-701-5426 4,000.00 Heating & Air Neighbor Dave's 6]2-386-5110 7,880.00 Plumbing Joe's Plumbing 763-286-5493 10,000.00 Electrical J Electric 320-412-6519 6,200.00 Insulation MN Building Components 763-682-3225 3,200.00 DJ}'Wall Dennis James 612-701-5426 4,600.00 Painting By Owner 3,500.00 Flooring/TilefLino leum By'Owner FlooringlW ood Floors By Owner ..... ... Trimming Dennis James C B 612-701-5426 3,000.00 _ .:abinets/Counter- Tops Fritz Counter-Tops 763-428-2291 3,000.00 - Electrical Fixtures By Owner 1,500.00 Glass/MirrorslBath Fixtures By Owner 1,200.00 c:arpet Sweep Dennis James 612-701-5426 100.00 Appliances OJ's Home Center 763-497-4211 3 000.00 Carpet N/A Garage Door/Opener Custom Door Sales 763-535-0042 1 600.00 Driveway C&S 763-428-2225 5,000.00 Sod & Landscape By Owner 2,500.00 Final Clean PI's Cleaning 612-245-5888 250.00 Insurance American Family (mCB) 6]2-701-5426 1,000.00' Misc. Added Dennis James 612-701-5426 3,000.00 Car~en!iY Labor Dennis James 612-701-5427 3,000.00 Contractor's Fee Dennis James 612-701-5426 14500.00 Land Clearinp; (Optional) Hilltop Excavating 612-282-4891 2,500.00 Well (Optional) PaintinWExterior (Optional) By Owner 500.00 Interior Decorating (Optional) Gas FirljJlace (Optional) Dr s Home Center 763-497-4211 3,500.00 TOTAL 159,970.93 - I CONSTRUCTION ST A TEMENIi -- - ., ..... ..... .-. BRA Agenda - 05/03/06 6. Consideration to set a workshop date for sole purpose to discuss ideas and to tare:et properties or areas for purchase as properties come on the market. , A. Reference and backe:round: At the special meeting of the HRA on April 12 and upon reviewing the preliminary summary of the TIF and HRA General Fund balances as reported by Wolfsteller, Fair suggested the HRA hold a workshop to discuss ideas and perhaps target properties or areas for purchase by the HRA. Particularly properties that come on the market. It was suggested to continue this discussion at the next HRA meeting and to consider dates for a workshop. Therefore, this item appears on the agenda. ACTION: SET A DATE FOR A WORKSHOP IF SO DESIRED. 1 . . HRA Agenda - 05/03/06 7. nsideration to a oint an HRA commissioner to the Com rehensive Plan U date Task Force. A. Reference and back~round: After review of the request for proposals by the Planning Commission, Council, and city staff; four consulting firms made a presentation before a selection committee. The Council approved the hiring ofHosington Koegler (HK) to update the City's Comprehensive Plan. This firm was strongly recommended by the selection committee. Staff has met with the three principal planners ofHK to discuss the request for proposal and to refine the scope of services/project budget. It is anticipated a draft copy of a Contract with be available for the City Council approval on May 8, 2006. The process of updating the Comprehensive Plan involves a citizen's task force and the Council on May 24, 2006, gave direction to begin recruiting volunteers. The suggested mix of the task force follows: City Council - 3 Planning Commission - 3 Parks Commission - 2 HRA/EDAlIDC - 3 Chamber of Commerce - 1 School District - 2 County - 1 Monticello Township - 3 Hospital District - 1 Citizen at Large City - 3 Citizen at Large Township - 2 Plans are that the task force will meet on an average of once a month for 14 months starting in June. Meetings are tentatively scheduled for the first Thursday on the month at 2:00 p.m. It has been suggested that a total of 3 volunteers represent the HRA/EDA/IDC which means one each. An alternate can also be named. This is a very important task as volunteers look into the future of Monticello and assist in the development of a guide for future growth of Monticello: land use, transportation, transit, parks, pedestrian/trails, and downtown redevelopment, etc. 1 '. ~ .' HRA Agenda - 05/03/06 . B. Alternative Action: , 1. A motion to appoint to the task force of the Comprehensive Plan Update, and to appoint an alternate if so desired. C. Recommendation: Consider the time commitment as attendance would be important to move the task force along. D. SUDportin~ Data: None. . ..-.. 2 ...... I . . . BRA Agenda - 05/03/06 8. Consideration to authorize payment of BRA bills. Recommendation to approve HRA bills. 1 . - - Ehlers & Associates, Inc. Leaders in Public Finance I' I 3060 Centre PointeDrive Roseville, MN 55113 (651) 697-8500 Summary Statement Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 , , Statement Date: April 1 0, 2006 Proiect 2006 Modification of District 1-2 and 1-24 General T/F District No. 1-37 - Economic Development Total for this statement If Amount Invoice # $2,062.50 $867.50 $3,750.00 332553 332554 332555 $6,680.00 , ~.9-/ , c, . e, If\.. (') ~ O~ ~.~.~ VI -\ \ d ;. I Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697-8500 . Financial Advisory Services Invoice .. , Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362.8822 Invoice #: Invoice Date: 332555 Apri/10, 2006 Project: TIF District No. 1-37 - Economic Development Date Worked k Descriotion of Services 03.20-2006 ED Prepared: Quality control review of District 1.37 NM For the Establishment of Tax Increment Financing District No. 1.37 (1st 1/2) Hours Amount 1.50 no charge 3,750.00 - 1.50 $3,750.00 - G"'-..----'-.-----~'----'--.-.------'-'-.-I Amount Due This Invoice $3,750.00 -'---'-,._-'--,.,_."~-~~-.'--.~-,~,~'----.".,--"--~,-~.._.,'~'.__. ~~ \--\ Q \C\ 5>>( 'd \ ~. ~ U "'~ 0 l . C.O~ L 1 '{',.e \' ~ #~ \ 9, q "\'1 'l- #':> 1j ~~~ (Detach at perforation and return lower portion to Ehiers & Associates, Inc.) Monticello Housing And Redevelopment Authority Invoice #: Invoice Date: 332555 April 10, 2006 ~,7S.0.~ I Amoun't Due This Invoice -------..----._--~~-----..,~-- r------------..'--.-------.-. Please remit payment to: Ehlers & Associates, Inc. Attn: Accounts Receivable 3060 Centre Pointe Drive Roseville, MN 55113 .,-~-~'~-~-,._--'-,.,_..,-_.,-~._-,,~--,.~.~~--~,.,~-~-,------...,~~._"~-, Due Upon Receipt ] ------ . . . I Ehlers & Associates, Inc. Leaders in Public Finance f' 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697-8500 Financial Advisory Services Invoice Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 , Invoice #: Invoice Date: 332553 April 10, 2006 Hours Project: 2006 Modification of District 1.2 and 1 ~24 ;~X'b, \...\ l, s ? '-\, .~ \ <{ q Date Worked k Descriotion of Services 03-23-2006 ED 03-28~2006 ED 03-29-2006 ED Prepared: Prepared TIF 1-24 modification draft Prepared: TIF 1-2 modification-draft documents Prepared: TIF 1-2 Modification r--A~ount Due This I-~voice _...~---", ~-"'. 4.25 3.00 6.50 13.75 O~---_O-._...~t\l _uo _____~_~62~ ? \ 3 ,'l.,\ \..0 C; 0 d. I ~ \ q q (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority L~mount D~e ThiS~ Invoice Invoice #: Invoice Date: 332553 April 1 0, 2006 $2,()6~J I Please remit pa~ment ~: Ehle;' & Assoc~ales. In: Attn: Accounts Receivable 3060 Centre Pointe Drive Roseville, MN 55113 ~,-~- ,~.. Due Upon Receipt _J (' I Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697-8500 .- - , Financial Advisory Services Invoice Monticello Housing And Redeve,lopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 Invoice #: Invoice Date: 332554 April 1 0, 2006 g.\~, y'l,Sb\oi~lqg Project: General Date Worked 12Y- Description of Services Hours 03-14-2006 NM Prepared and sent out modification filing correspondance 1.00 for 1-6 03-31-2006 ED Prepared: TIF maintenance meeting with city staff 3.00 03-31-2006 T JH Attended Meeting: Attend TIF Management Meeting with City 1.50 Staff. Split time w/ED. 5.50 $867.50 r--;~-"'~^"--'------' --,"'"".""" n,,,,.. -,----,.,- L~mount Due This Invoice -"'.'.~,"~~'~,'--,----,-------- $867.50 I LL ~ ~ ~........... Q,6 ~ L '\ \ 0--.1L ~~~ S \ t . \..... \ . ").. ":). '\ ~ v ~.j" l ~ ~'J. ~l \_'),.. \- '\ --\...0\ t-\C\.. -d~" \. "J-C:\ \0 \- ~\ II (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority Invoice #: Invoice Date: 332554 April 10, 2006 Amount Due This Invoice $867.50 r' Please remit payment to: Ehlers & Associates, Inc. Attn: Accounts Receivable 3060 Centre Pointe Drive Roseville, MN 55113 Due Upon Receipt Ehlers & Associates, Inc. Leaders in Public Finance 3060 Centre Pointe Drive Roseville, MN 55113 (651) 697-8500 . Financial Advisory Services Invoice Monticello Housing And Redevelopment Authority 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 Invoice #: Invoice Date: 332416 March 10, 2006 Project: General Date Worked l!Y. DescriPtion of Services 02-06~2006 NM Updated & Sent out Resolution 02-08-2006 ED Prepared: Discussion w/Ollie K regarding developer deposits and TIF revenues, accounting, et al 02~14-2006 NM Prepared and sent out the Document Request Memo Hours Amount .25 38.75 .25 37.50 .50 77.50 1.00 $153.75 -- - . i .. : I ~ ; : I Amount Due This Invoice I . ~__________.__$153. 75J , , I ; ~ "I MArl 1 3 2()()6 ~R~J ~ {]~ ': ':<:.) !'='~Y? OlllL Code:.~_L~. ltlo ~o l . ''3 I q q ~~J,j1j'i;-'~; ....""".___.~ (Detach at perforation and return lower portion to Ehlers & Associates, Inc.) Monticello Housing And Redevelopment Authority Invoice #; Invoice Date: 332416 March 10. 2006 [ Amount Du~ This Invoice ----"-"-"".1:1 $153.7~ [' Please remit payment to: -E~'ers & Associates,- Inc. Attn: Accounts Receivable 3060 Centre POinte Drive Roseville. MN 55113 ..-----.-........-----._-.,~---, '-..."'---, -- .-..'" , .'---'. '.~'-~~'~--------"-'------------""------"--~ Due Upon Receipt ] ~"'-----"-'.'-'~".'~~~--, ,"O."lTICtu.n . CBAMBERof COMMERCE Monticello Chamber of Commerce P.O. Box 192 MonticeUo,~ 55362 [ Bill To ~a\Cr. . to reimburse ~ ] Description Demographic package, reimburse half of fee by HRA, City of Monticello ,\Dq~ f 1../'0 ~ Total I InvOiqe Date Invoice # 4/1912006 560 , Amount 500.00 $500.00 Phone: (909}793-2853 Invoi ce Order Customer Customer PO P.O. Date End User Project 91297431 Document date i3115/2006 1363955 Delivery 259607 Contract CC WOJCHOUSKI 03/1 5/2006 259607 MONTICELLO CHAMBER OF COMMERCE Invoice Page: 1 Ship to: , Bill to: SUSIE WOJCHOUSKI MONTICELLO CHAMBER OF COMMERCE 1111 CLUB VIEW DRIVE MONTICELLO MN 55362 Terms of payment: Prepaid by VISA MONTICELLO CHAMBER OF COMMERCE 205 PINE ST MONTICELLO MN 55362 FOR QUESTIONS, PLEASE CONTACT CUSTOMER SERVICE AT 888-377-4575 Item Qty Product Number Description Price 995.00 995.00 995.00 995.00- $ 0.00 1000 1 ~2593 FEIN: 95-2775732 DUNS/CEC: 06-31 3A 1 75 SUBSCR,CART,BAO,BASIC Basic BAO Cart Subscription Items total Subtotal Shipping & Handling Amt. Prepaid Total: p....... delllch lowe, pordon and return with romltta""" ~........,~ I'~- ..\ . ,"" ~,..._. , ~ .....-'""'. .......;... " ~~., ..: '" "<': .~j .:......~" umI REMITTANCE ADDRESS: Environmental Systems Research Inst. File 54630 Los Angeles, CA 90074-4630 EFT: Bank of America Routing: 121000358 Acct: 1496150335 Invoice : 91297431 Order: 1363955 Payer 259607 SUSIE WOJCHOUSKI MONTICELLO CHAMBER OF COMMERCE 1111 CLUB VIEW DRIVE MONTICELLO MN 55362 Document Date : 03/1 5/2006 Total: $ 0.00 Payment Amt $ . ...... .... -- , HRA Agenda - 05/03/06 9. Ex~utive Director's Report. * Karlsburger Foods, Inc.- The TIF process is complete, a complete set of the site and building plans have not been submitted to the city for staff review, the mylar for the plat should be in city hall by Monday for signatures prior to recording at County, Council authorized plans for installation of water/sewer trunk line along the northerly 65 ft easement on their lot, according to WSB the company should be able to commence building construction by June 1. This appears not to be a problem for Karlsburger or their contractor. The company has not finalized their financing and may apply for a city loan for machinery/equipment. 20 jobs, 20,000 sq ft building. They selected Option 3 for elevation design. See attached. * 10,000 sq ft user - Questions on Preliminary Development Agreement for TIF from their attorney forwarded to HRA Attorney. Perhaps project this year. Does fit criteria. * 10,000 user - Identified as other industrial, 18 jobs at $8.50 average per our w/o benefits. Preliminary application does not fit criteria. Can pay market price? * 1 0,000 user - imports cabinet for new and remodeling. Will assemble for wholesale use. 20 employees, start-up business. Have not received preliminary application. * 10,000-15,000 sq ft building - currently in two locations, St Cloud and St Louis Park. 20 employees. Light industrial. Need to call back. * CB Richard Ellis, Richard Grapf - looking for land * Computer repair company - Looking to purchase Clow Stamping. They check and repair computer equipment for customers such as Target. About 40 employees. Looking at SBA and maybe our loan program. * Construction company - 3+ acres. Need outdoor storage. * 50,000 sq ft of cold storage. Wright County company. * Others I need to follow-up with. (Check with Precision Technologies) * 4,000 sq ft, Cabinets and fixtures, looking at market rate, completing application. * Wholesale Landscaping - irrigation, pipes, request temporary double-wide trailer. Forward to community development. * Produces granite counter-tops/fireplaces - 3,000-5,000 sq ft, will access application on web. Lead from Tapper. Fall 2006 or spring 2007 project. * Local service/retail business looking for funding - Checking with CMIF and Wright County on Community Capital Fund. * For sale - 4.4 acres ofI-2 along Dundas Road. Ken Spaeth, Rogers. * HRA modifYing three older TIF Districts to maximize use oftax increment. TIF No. 1-2, 1- 6, and 1-24. * Marketing Committee - Preparing 2007 Budget and Marketing campaign. Erect sign at entrance of business center along Chelsea Road, again lease billboard along 1-94 between Rogers and Maple Grove, do fliers and post cards, keep website updated and inserts. Proposed budget = $16,500. Check with HRA as back-up funding!!! Also have an additional $500 request from Wright Partnership. I HRA Agenda - 05/03/06 . * Fiber optic task force - Will be meeting with consultant firm, CG Consultant and Springsted , to define Contract the week of May 8th. Consultant to begin gathering local information. * A VR has accepted the City's offer. No plans submitted perhaps in a couple of weeks. Mayor not convinced it's for real. * Transformation Home Loan - HRA modified to criteria to encourage use of the program. Six parties have inquired. Most doing maintenance repair such as roof, furnace, window replacements. This does not qualify. All forms have been modified for consistency of new criteria. * HRA and city staff working with Ehlers to reconcile city coding for consistency with State Auditors requirements. Meeting between Bret Weiss, Rick, and myself scheduled for May 3 to refine cost of public improvements and increase of city fees to justify raising market price to $3.00 per sq ft. Marketing Committee suggested marketing the reduced rate at $1.00 sq ft. It was understood that if a company does not fit the criteria they can purchase land at the market price but still need to conform with the covenants on the 35 acres. Right? *Sunny Fresh Foods - I have the OK from the Mayor to arrange a reception honoring Sunny Fresh Foods for receiving the Malcom Balridge Award of Excellence on April 19 in DC. I had Eric at the Times take a photo in DC at the award ceremony for framing as was done in 1999. This is in process, I need to talk with Sunny Fresh for date as will be hard to pin down President Mike Luker. More later. * TIF Reporting Information attached. * Balance of Local TIF Contribution Funds. See attached. I would suggest these funds be closed and rolled into HRA Fund but must be used for public improvements. * The EDA at their annual meeting authorized reimbursement of$80,891 of the Liquor Fund dollars for purpose to reduce the tax levy. The EDA originally received $383,000 from the Liquor Store Fund to start the local revolving loan program. The EDA previously reimbursed a total amount of $147,000 so the remaining balance is $100,000. The EDA does not need to return those dollars. Year-end 2005, the EDA's cash in bank is $861,281 (without interest income - investments) and the total unpaid principal balance is $780,195. All loan paybacks are current. These numbers do not account for the current MIF balance of$325,000 which is also available for loans. . ~ . . -- # .... e '"'JI .J j ~ IfI ' II ~. .::""1 : .; I , ,.,.::...... ;.. '...'.), " ,..:.. >::' " i.:.,,'... 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Eo.; "'" u ~ o ~ Eo.; r:n ~ ~ o ~ '" ~ I1.l () ~ 'a Q:l CIl ij ~ I t Avril 2006 J Tax Increment Financing Division Newsletter 2005 TIF Reporting: Usernames and Passwords Usernames and passwords to access the 2005 online TIP reporting fonns will be sent by email to each authority in early May when the online system is available. We will be referring all consultants, CP As, financial advisors, etc., who complete TIF reports on behalf of authorities, to the authority's representative for the password infonnation required to use the online system. · 2005 TIF Reporting: Usernames and Passwords · 2006 TIF Reporting Workshop Dates & Locations · Calculating the Four~Year Rule and the Five-Year Rule 2006 TIF Reporting Workshop Dates and Locations The Office of the State Auditor is pleased to announce that the following local governments will host the 2006 TIF Reporting Workshops at the following locations: Thursday, June 8th - Crow Wing County, at the Brainerd Public Library Thursday, June 15th - City of 81. Peter, at the St. Peter Community Center Thursday, June 22nd - Anoka County, at the Bunker Hills Activity Center. The workshops, a free service by the Office of the State Auditor, will begin at 9:00 a.m. and conclude at 2:00 p.m.. An early lunch will be served. Workshop topics will include (i) an overview of the online TIF reporting system, (ii) common reporting problems, (iii) record retention requirements, (iv) county and city/authority documentation of data infonnation, (v) inter-fund loan requirements and model inter-fund loan resolutions, (vi) calculating excess increment, (vii) calculating duration limits, and (viii) privacy issues relating to notices of non- compliance. Look for infonnation on the workshop agenda and registration in the near future. Calculating the Four-Year Rule and Five-Year Rule What are the dates from which the Four-Year Rule and the Five-Year Rule are calculated? The Four - Year Rule is calculated from the date of certification of individual parcels I, whereas the Five- Year Rule is calculated from the date of certification of the TIF district'- If added three years after a TIF district Was certified, a parcel would continue to have four years before being subject to the Four - Year Rule but such parcel would be subject to the Five- Year Rule within two years. I Minn. Stat. * 469. I 76, subd. 6. 2Minn. Stat. * 469.1763, subd. 3. Arlin Wae/ti 651-296-7979 Arlin. ff'aelti({i)state.mn.us Kurt Mueller 651-297-3680 Kurt. Mue!!erlqistate. mn us Lisa MCGuire 651-296-9255 Lisa.McGuiret{i)state.mn. us If you have any questions please Contact us: Suk Shah 651-296-7001 Suk.Shah({i)state.mn.us Marsha Pattison 651-296-4716 Marsha. PattisonlaJstate. mn. us Maggie Gebhard 651-296-7446 MaeJlie. Gebhard({i)state.mn. us I . TAX INCREMENT FINANCING LOAN 1..12 AROPLAX FINANCIAL REPORT December 31,2005 LOAN TOTALS -1-12 AROPLAX , Payback began in May, 1993 for 9 years ending in November, 2001. Semi-annual principal and interest payments total $2369.30 for the year. Principal Interest TOTAL ORIGINAL $15,000.00 $6,323.59 $21,323.59 PAID $15,000.00 $6,324.52 $21,324.52 REMAINING $0.00 ($0.93) ($0.93) .--------------------------------------------------------- REVENUES Principal Payback Interest Payback $15,000.00 $6,324.52 TOTAL REVENUES $21,324.52 EXPENDITURES . TOTAL EXPENDITURES $0.00 FUND BALANCE FOR TIF 1-12 AROPLAX * $21,324.52 *funds are available only for public improvements EDA annual reports 2005.xls: 4/20/2006 I . TAX INCREMENT FINANCING LOAN 1..14 SUBURBAN FINANCIAL REPORT December 31, 2005 lOAN TOTALS .1.14 SUBURBAN Payback began in May, 1993 for 8 years ending in May, 2000. Semi-annual principal and interest payments total $3522.52 for the year. , Principal Interest TOTAL ORIGINAL $19,575.00 $6,843.82 $26,418.82 PAID $19,575.00 $6,841.26 $26,416.26 REMAINING $0.00 $2.56 $2.56 ~,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-,.-"-. REVENUES Principal Payback Interest Payback TOTAL REVENUES $19,575.00 $6,841.26 $26,416.26 . EXPENDITURES TOTAL EXPENDITURES $0.00 FUND BALANCE FOR TIF 1-14 SUBURBAN * $26,416.26 *funds are available only for public improvements EDA annual reports 2005.xls: 4/20/2006