EDA Agenda 03-07-1995AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, March 7, 1995 — 7,:00 p.m.
City Hall
MEMBERS: Chairperson Ron Hoglund, Vice Chair Barb Schwientek,
Clint Herbst, Tom Perrault, Al Larson, and Harvey
Kendall.
STAFF: Treasurer Rick Wolfsteller and Executive Director 011ie
Koropchak.
INTERVIEW OF CANDIDATES FOR COMMISSIONER OF THE EDA.
a) William Demeules
b) Merrill Busch
C) John Duffy
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 15, 1994 EDA MINUTES.
3. CONSIDERATION TO DISCUSS FOR A RECOMMENDATION TO CITY COUNCIL
THE APPOINTMENT OF AN EDA COMMISSIONER.
4. CONSIDERATION TO ELECT 1995 EDA OFFICERS.
/�. 5. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR END EDA FINANCIAL
STATEMENTS, ACTIVITY REPORT, AND [PROPOSED 1995 BUDGET.
6. CONSIDERATION TO REVIEW YEAR-END FUND BALANCES OF THE CMEF.,
UDAG, AND ERG FUNDS.
7. CONSIDERATION OF AN UPDATE ON CMEF LOAN NO. OOB FOR THE H�
WINDOW.
B. OTHER BUSINF95.
a) Tapper'is Inc. expanoion.
D. ADJOURNMENT.
MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, June 15, 1994 7-:00 p.m.
City Hall
'MEMBERS PRESENT; Chairperson Ron Hoglund, Vice -Chair Barbara
Schwientek, Assistant -Treasurer Bob Mosford
(tardy),, and Clint Herbst:
MEMBERV ABSENT: Patty Olsen, Al Larson, and Harvey Kendall.
STAFF PRESENT: EDA Treasurer Rick Wolfsteller and Executive
Director 011ie Koropchak'.
1. CALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7,:25
p.m.
2. CONSIDERATION TO, APPROVE THE JANUARY 2.6._1996 EDA MINUTES.
Barb Schwientek made a motion to approve the January 26, 1994
EDA minutes. With, no corrections or additions, the motion
carried.
3. CONSIDERATION TO REVIEW_ THE.. DECEMBER_ '31. ,1903_ EDA _BALANCE
§HEFT -AND TO_DEFINE�THE MEANING OF APPROPRIATION SOURCES_AND,
. OMEP BALANCE_FOR' CLARIFICATION.
EDA members agreed appropriation means monies earmarked or
available for use of GMEF loans. The 1993 City Budget
appropriated 9200.000 from the Liquor Fund for use of the
GMEF; however, other funds like the UDAO and SCERO are also
available for use by the GMEF. The EDA uses as a guide an
appropriation of 9200,000, this the beginning GMEF yearly
appropriation balance.
Treasurer Moeford reported the discrepancy of the S75.000
undor the Appropriations .Recelvablo of the Balance Sheet
should correct itself in the year-end reports of 1994 as. it
relates .to loan approval date and expenditure date. It
appears the annual 1999 appropriation is 9275;000. Upon the
request of the EDA; the 1094 City Budget shows an
appropriation of 5100,000: however, it may appear on the 1994
EDA Balance Short as $25,000 to correct the dlscrepency.
4. CONSIDERATION TO_REVIIW GMEF_ CIIIU_ELTHES FOA AMENDMENT -__-LOAN
TERM, NUN=PERFORMANCE, LOAN FEE. AND cmEF,LEOAT
Bob Moeford made a, notion to deny amending the personal
property tern from 5-7 years to 5--10 yests becaose the LDA
Page 1
EDA MINUTES_
JUNE 15. 1994
felt the SCERG andCMIF could accommodate the GMEF Guidelines
and 5-10 years mi' ht.exceed the life of the equipment. Clint
Herbst seconded the motion and with no further discussion. the
motion passed unanimously. LOAN TERM: The personal property
term not to exceed life of equipment' (generally 5-T years.)
Barb Schwientek made a motion to amend, the approved loan
disbursement time from within 120 days to within 180 days to
accommodate the time necessary for. design, delivery, ,and 30.
day trial period prior to acceptance of the new 'equipment.
Bob Mosford seconded the motion and without further,
discussion, the motion passed unanimously. NON-PERFORMANCE:
An approved GMEF loan shall be null and void if funds are not
drwan upon or disbursed within 180 days from date of, EDA
approval.
Bob Mosford made a motion to deny amending the loan fee
because the EDA felt lending institution charge a fee and' the
current fee guideline does allow for flexibility. Barb
Schwientek seconded the motion and with no further discussion,
the motion passed unanimously. LOAN FEE: Minimum fee of 6200
but not to exceed 1.5% of the total loan project._ Fees are to
be documented and no duplication of fees between .the lending
Institution and the RLF. Loan fee may be incorporated into
C_- the project cost. EDA retains the "right to reduce or waive
loan fee or portions of loan fee.
Bob Moeford made a motion to amend the GMEF Guideline to
incorporate a 1oQa1 fee provision. LEGAL FEE: Responsibility
of the GMEF applicant. Thio amendmenCIs to clarify the issue.
upfront with applicants: Barb Schwientek seconded the motion
and with no further discussion, the motion passed unanimously.
S. CONSIDERATION_ OF_ANUPDATE _ON_THV MULLER_THEATRE _-CME!_L_OAN
NO.- -002_-PREPAYMENT AND _STANDARD JIRON GMEF_CLOSING__
Tho EDA accepted the written agende,report.
6. CONSIDERATION__TO -REV I EW__ THE_ PRELIMINARY. _AND_._FINAL _CMEF,
APPLICATION FROM_THE_APPLICANT. _THE_H-WINDOW COMPANY_., T
The EDA .reviewed the preliminary and final application from
the H -Window for compliance of the GMEF Guidellneo.
zoA members inquired of the discrepancy in the percentage of
ownership as listed the .preliminary application and the
executive summary. With Mr. Lomas unable to attend the EDA
,*acting, Koropchek was to clarify this discrepancy.
IPage 2
EDA MINUTES
JUNE 15, 1994
Mr. Mosford reviewed the company's financial statements' and
noted the company over a long term had a loss of $973,000, the
Norewegian parent company had capitalized over $3 million of
equity, and sales increased in 1993 to S3.5 million from $2.8
million in 1994. With the availability of funding from the
parent company, Mr. Mosford questioned whether this was gap
financing.
CONSIDERATION TO APPROVE OR DISAPPROVE GMEF LOAN NO. 008 THP.,
H -WINDOW COMPANY.
Based on a positive clarification of the ownership
discrepancy, Barb Schwlentek made a motion to approve GMEF
Loan No. 008 for the H -Window. The $50,000 loan for equipment
at 5.25% fixed interest rate amortized over seven years. The
GMEF loan fee of $750 payable at time of GMEF disbursement;
the legal fees the responsibility of the applicant; the loan
becomes null and void if not disbursed by December 15, 1994;
the loan will share a first position with the SCREG or will be
In second position on the equipment; the loan is subject to
approval of the $250,000 SCERG; the loan disbursed from the
UVAG fund; and the collateral, guarantees, and other condition
requirements to be determined and prepared by the City
Attorney. Clint Herbst seconded the motion and with no
further discussion, the: motion passed 3-1. Yeas: Barb
Schwlentek, Clint Herbst, and Ron Hoglund. Nays: Bob,
Mosford.
The EDA approved the loan because they determined it complied
with the GME? Guideline*, new jobs were being created for the,
community, and to ,promote the expansion of an existing
business. Although the H -Window had been financed by the
Norwegian parent company, members determined a financial gap
was established when the SCERC was reduced from 8400,,000 to
5250,000 and the CMIP Board denied approval of the $100,000
loan because of foral gn-ownerahip.
Mr. Mosford voted against the motion because he did not feel
a gap existed in the financing.
s. PROSPECT UPDATES:
The EDA accepted the written information relating to the
proposed financial paekagea for Fay -Mar and Royal Engineering.
9. OTHER BUSINESS.
None.
tPage 3
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EDA AGENDA
MARCH 7, 1995
3. 'Cons _iderat Ion- todiscuss for a�recommendation_to City Council
the appointment_ of an_ED__Commiseioner.
A. Reference -and --Background:.,
The EDA created by a City Ordinance is composed of seven
members appointed by the Mayor and confirmed by the City
Council. Two members shall, be members of the City Council and
their terms shall coincide with their remaining term of
office. Ail other commissioners shall be appointed for six
year terms.
Membership and expiration dates as of March, 1995:
Ron Hoglund 12/95
Toni Perrault, Council 12/96
Harvey Kendall 12/97
Al Larson 12/98
Clint Herbst, Council 12/98
Barb Schwietek 12/99
Vacant Seat 12/00
At the' January 9 City Council meeting, Councilmembers
appointed Councilmember Tom Perrault to fill the EDA seat
vacated by the resignation of Patty Olsmn. Couneilmembere
also -established a new, policy requiring appointed
commise.ioners bu a resident of the City of Monticello, The
residency require caerit is a phases -out process beginning with
1990, expiration terms. The only commissioner. affected for
1995 appointments was Bub 'Mouford. Under this policy, EDA
Cbmmissiuner Huglund'would not be appointed in. 1996 because of
the residency requirement.
On February 27. Counellmembere elected not to interview
candidates who applied for the BOA seat vacated by Mr. Moeford
as two couneilmembers are members -of the commission. Council
requested'ths commissioners interview and recommend a_ntme for
appointment to the EDA. Official appointment by the Mayor and
Council is planned for 'March 17'..
Thp !DA is rrgtteeted to cbonsider' the three candidates.
interviewed and make a motion of recommendation.
Paye 3
EDA AGENDA
MARCH 7, 1995
B. Alternative Action-'
1. A motion recommending William Demeules be appointed to
the EDA for a six year term ending in December, 2000.
2. A motion recommending Merrill Busch be appointed to the
EDA for a six year term ending in December, 2000.
3. A motion recommending John Duffy be appointed to the EDA
for a six year term ending in December, 2000.
6. A motion to table any action.
5. A motion to deny acceptance of the three EDA candidates.
C. Staff Recommendation:
No recommendation Is given at this time. Commissioners may be
conscious of the candidate's knowledge of financial matters
and long-term commitment to the City of Monticello.
D. Supporting Data:
Questions provided for interviewing.
Page 2
EDA AGENDA
MARCH 7, 1995
6. Consideration_to Elect 1995 EDA Officers_._
A. Reference and Background.,
In order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-.2: The Authority shall annually elect a
president, vice president, treasurer, assistant treasurer, and
secretary. The current list of officers are:
President Ron Hoglund
Vice President Barb Schwientek
Treasurer Rick Wolfeteller
Assistant Treasurer
Secretary 011ie Koropchak
Nominations will be made at the meeting; therefore, any EDA
member unable to attend the meeting and doesn't wish to be re-
elected or nominated, pleaue contact me.
B. Alternative Action:
1. Call for nominations from the floor, cease nominations.
and approve the nominations as elected 1995 EDA officers.
2. Table election of 1995 officers.
C. Recommendation:_
It is recommended the 1994 officers accept nomination and
eleution to their respective office. Nominations for
assistant treasurer will need to come from the remaining
members or the newly recommended appointee,
CPig. 1
EDA AGENDA
MARCH 7, 1995
ALI'
Consideration to Review and Acc_pt the Year -End EDA Financial
Statemente� Activity Report and —1-C—roposed_BuftEL
Reference and Back round`
In order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-6: The Authority shall prepare an annual budget
projecting anticipated expenses and sources of, revenue. And
B: The Authority shall prepare an annual report describing
Its activities and providing an accurate statement of its
financial condition. Said report shall be submitted to the
City Council by March 1 of each year.
Enclosed are the year-end statements, proposed budget, and
activity report.
The EDA will need to review for necessary revision and/or
accept the statements/report.
trags 1
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY,
GREATER MONTICELLO ENTERPRISE FUND (GMEP)
Statement of Revenues, Expenditures and Changes. in Fund Balance
For the Year Ended December 31, 1994
HEMEMS
Appropriations -
1994 Liquor Fund
-0-
1994 UDAG
-0-
Interest Income - Notes
$
18,493.53
Interest Income - Investment (est.)
$
2,948.00
Loan Fees
$
1,125.00
Miscellaneous
S
1.175.00
10 - ::--iu : .
Legal Fees
Service Fees
Int. Adjustment - Notes
TOTAL EXPENDITURES
Excess of Revenues Over Expenditures
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$ 540.00
$ 140.00
L n
$ 23,741.53
S 680.00
$ 23,061.53
tr,36. 814 AR
9659.5659 875.61,
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Balance Sheet
December 31, 1994
ASSETS.
Cash in Bank
$159,584.73
Notes Receivable - Tapper, Inc.
$ 78,583.71
Notes Receivable - Muller Theatre
-0-
Notes Receivable - SMM, Inc.
$ 46,708.86
Notes Receivable - Aroplax Corp.
$ 63,071.52
Notes Receivable - Custom Canopy, Inc.
$ 40,382.69
Notes Receivable - Standard Iron
$ 71,544.10
Appropriations Receivables -
1994 Other
$100,000.00
1994 Liquor Fund
5100.000.00
TOTAL ASSETS
FUND-==
Al
`+.•vrd Balance
Reserved for Participation Loans
(Economic Development)
TOTAL LIABILITIES AND FUND EQUITY
t
1
Cash in Bank
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUNU (GMEF)
Balance Sheet
December 31, 1994
ASSETS
Notes Receivable - Tapper, Inc.
Notes Receivable - Muller Theatre
Notes Receivable - SMM, Inc.
Notes Receivable - Aroplax Corp.
Notes Receivable - Custom Canopy, Inc
Notes Receivable - Standard Iron
Appropriations Receivables -
1994 Other
1994 Liquor Fund
TOTAL ASSETS
FUND EQUITY
Fund Balance
Reserved for Participation Loans
(Economic Development)
TOTAL. LIABILITIES AND FUND EQUITY
t
$^09,584.73
S 78,583.71
-0-
S 46,708.86
S 63,071.52
S 40,382.69
S 71,544.10
51001000.00
51001000.00
$709.875.6]
5709,875.6]
$709 ,875_6_1_
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (CMEF)
Statement of Revenuer, Expenditures and Changes In Fund Balance
For the Year Ended December 31, 1904
REVENUES
Appropriations -
1994 Liquor Fund
-0-
1994 UDAG
-0-
Payback Note -- Muller Theatre
$ 50,000.00
Interest Income - Notes
$ 18,493.53
Interest Income - Investment (est.)
S 2,948.00
Loan Fees
S 1,125.00
Miscellaneous
1,175-00
TOTAL REVENUES
EXPENDITURES
Legal Fees
Service Fees
Int. Adjustment - Notes
TOTAL EXPENDITURES
Excess of Revenues Over Expenditures
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
0 540.00
140.00
$ 73,741.53
680.00
73,061.53
,^,636,914.08
$709 875.61
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
1995 Cash Flow Projection
BEGINNING CASH BALANCE, January 1995
$209,584.73
RECEIPTS
Appropriations, Expected -
Liquor Fund
5100.000.00
UDAG
S 50.000.00
SCREG-Aroplax
S 50,000.00
Notes Amortization Payments -
Tapper Inc. (5736.07 Mo.) 8-07
S 8.832.84
Muller Theatre
-0-
SMM, Inc. ($316.32 Mo.) 12-97
5 3,795.84
Aroplax Corp. (51,241.73 Mo.) 12-99
S 14,900.76
Custom Canopy, Inc. ($269.03 Mo.) 6-98
5 3,228.36
Standard Iron ($795.49 Mo.) 7-01
S 9,545.90
Interest Income - Investment
5 31000.00
Loan Fees
$ 2.250.00
Miscellaneous
S 1,300_00
TOTAL RECEIPTS
$246`853_10
? TOTAL BEGINNING BALANCE AND RECEIPTS
S45G,438.43
EXPENDITURES
GMEF Loans -
H -Window
S 50,000.00
rapper, Inc.
0 50,000.00
Other
5100.000.00
Legal Fres
S 11000.00
Service Fees
S, _ 150_00
TOTAL EXPENDITURES
x.01 -_I50.00
EXPECTED CASH BALANCE, December 1995
$255,288.43
f
1904
ANNUAL ECONOMIC DEVELOPMENT AUTHORITY ACTIVITY REPORT
1.
MEETING DATE
SUBJECTS
Annual Meeting
EDA officers elected for 1994:
held 1-26-94.
President - Ron Hoglund
Vice President - Barb Schwientek
Treasurer - Rick Wolfsteller
Assistant Treasurer - Bob M.osford
Secretary - 011ie Koropchak
Accepted EDA 1993 Year -End Financial
Statements and Activity Report. All
existing GMEF loan paybacks are current.
6-15-94.
Defined Appropriations on the EDA Balance
Sheet as monies available not received.
EDA Sources of Funds are the Liquor Fund.
GMEF Cash Balance, UDAG, and SCERG.
Annual maximum GMEF Appropriation is
$200,000.
Modified the GMEF Guidelines amending
NON-PERFORMANCE provision from 120 days
to 180 dayo and incorporating a LEGAL FEE
q
provision: Reaponoibility of the GMEF
applicant.
Reviewed the preliminary and formal GMEF
applicationa from the H -Window Company.
Approved the H-WIndow-GMEF Loan No. 008
for ;,50,000 at 5.254 fixed intereot rate
and amortized over 7 years for eyulpment.
Diacusoed potential GMEF applicants:
Fay -Mar Metal Fabricators, Inc. and Royal
Engineering & Manufacturing, Inc.
C,
EUA AGENDA
MARCH 7, 1995
6. Consideration to Review Year-end Fund Balances of the GMEF,
UDAG, and ERG.
A. Reference and Background:
All GMEF loan payback payments are current as accounted for in
the 1994 year-end statements. The $50,000 Muller Theatre GMEF
Loan No. 002 was paid -in -full in June, 1994. The approved
$50,000 H --Window Company GMEF Loan No. 008 was not disbursed
in 1994 and became null and void in early 1995. The 1993
approved 575,000 Standard Iron GMEF Loan No. 007 was disbursed
in July. 1994.
Copies of the UDAG-FSI and SCERG-Aroplax fund balances arc
enclosed. The payback payments are current and the fund
balances are available for use by the EDA. The 1994 awarded
$250,000 SCERG-H-Window Loan has not closed.
The $250,000 SCERG and $100.000 CMIF-Standard Iron loan
payback payments are current as accounted in the 1994 year-end
statements. Remember, this SCERG was awarded to Wright County
for a loan to Standard Iron. The EDA receives $1,000 annually
from Wright County to administer the SCERG loan and $15 and
$10 per month to service the SCERG and CMIF IOan G,
7 respectively.
CPage 1
ECONOMIC DEVELOPMENT AUTHORITY FUND (EDA)
FINANCIAL. REPORT
March 7, 1995
GMEF Loan 001 - Tappers: $88,000 at 8% amortized 20 years: balloon 7 years.
GMEF Loan 002 - Muller Theatre: $50,000 at 8% amortized 20 years: balloon 5 years.
GMEF Loan ON - Barger's: $50,000 at 4.5% amortized 20 years: balloon 5 years.
GMEF Loan 005 - Schoen's: $85,11011 at 6% amortized 7 years.
GMEF Loan 006 - Birkeland: $42,500 at 4.5% amortized 20 years: balloon 5 years.
GMEF Loan 007 - Demeules: $75.000 at 5% amortized 7 years.
ORIGINAL LOAN PRINCIPAL PAID INTEREST PAID BALANCE REMAINING
Tapper/Genereux (1990)
$88,000.00
$9,416.29
$29,595.30
$78,583.71
Muller/Monti Theatre (1990)
$50,000.00
$50,000.00
$13,639.95
$0.00
Barger/Suburban (1992)
$50,000.00
$3,291.14
$4,616.85
$46,708.86
Schoen/Aroplax (1992)
$85.000.00
$21,928.48
$9,114.77
$63,071.52
Birkeland/Custom Can (1993)
$42,500.00
$2,117.31
$2,994.26
$40,382.69
Demeules/Stand Iron (1993)
$75,000.00
$3,455.90
$2,112.53
$71,544.10
TOTALS
$390,500.00
090,209.12
$62,073.66
5300.290.88
Docombor 31, 1994
EDA.WK1: 03103/95
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
LOANSTATUS
1_ March 7, 1995
Economic Development Authority (EDA) was created in 1989.
APPROVED LOANS
Tapper/Genereux (1990)
$88,000.00
Muller/Monti Theatre (1990)
$50,000.00
Barger/Suburban (1992)
$50,000.00
Schoen/Aroplax (1992)
$85,000.00
Birkeland/Custom Canopy (1993)
$42,500.00
Demeules/Standard Iron (1993)
$75,000.00
TOTAL APPROVED LOANS
December 31, 1994
LOAN DISBURSEMENTS
Liquor Fund:
1991 to Tapper $73,000.00
1992 to Suburban
$50,000.00
1992 to Aroplax
$65,000.00
1994 to Standard Iron
$75,000.00
Total Liquor Fund
$263,000.00
UDAG Fund:
1991 to Tapper
$15,000.00
1991 to Muller
$50,000.00
1992 to Aroplax
$20,000.00
1993 to Custom Canopy
$42,500.00
Total UDAG Fund
$127,500.00
TOTAL LOAN DISBURSEMENTS
December 31, 1994
A
GMEF.WKt: 03/03/95
$390,500.00
$390,500.00
URBAN DEVELOPMENT ACTION GRANT (UDAG) - FSI
FINANCIAL REPORT
March 7, 1995
Payback began in January, 1988 for 12 years ending in January, 2000.
Annual principal and interest payback total is $27,971.40.
GRANT TOTALS
ORIGINAL
PALL
9EMAtWMG
Principal $256.957.71
$140,730.78
$116,226.93
Interest $78.699.09
$57,399.97
$21,299.12
TOTAL $335,656.80
$198.130.75
$137,526.05
REVENUEC
Principal Payback
$140,730.78
Interest Payback
$57,399.97
Interest Income - Investment:
1990
$3,562.62
1991
$8,593.59
1992
$8.436.32
1993
$7,918.92
1994 (est.)
$3,901.00
Transfer from GMEF - (company)
Transfer from GMEF - (company)
TOTAL REVENUES $230,543.20
EI(P_ENDJTURES
1991 Transfer to GMEF
$65,000.00
1992 Transfer to GMEF
$20,000.00
1993 Transfer to GMEF
$42,500.00
TOTAL EXPENDITURES
$127,500.00
FUND BALANCE FOR ECONOMIC DEVELOPMENT $103,043.20
Docombor 31.1994
UDAG. WKt : 03/03195
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG) - AROPLAX
FINANCIAL REPORT
March 7, 1995
Payback began in December, 1992 for 7 years ending in November, 1999.
Annual principal and interest payback total is $29,801.40.
First $100,000 principal payback ends January, 1997.
GRANT TOTALS
Grant must be expended by December 31, 1994, up to $170,000
EXPENDED: $116,556.75
ORIGINAL
PAID
flEMA1NING
Principal
$170,000.00
$50,115.40
$119,884.60
Interest
$37,969.92
$11,970.95
$25,998.97
TOTAL
$207,969.92
$62,086.35
$145,883.57
TOTAL EXPENDITURES
Jan.19U
GMEF
STATE
Principal
$170,000.00
$100,153.60
$69,846.40
Interest
$29,634.75
$23,659.34
$5,975.41
TOTAL
$199,634.75
$123,812.94
$75,821.81
Grant must be expended by December 31, 1994, up to $170,000
EXPENDED: $116,556.75
1993
$16,996.18
1993
7 $12,356.59
1993
$4,021.10
1/18/94
$15,132.50
4/13/94
$4,936.88
7/20/94
$170,000.00
t
REVENUES
Principal Payback
$50,115.40
Interest Payback
$11,970.95
Interest Income • Investment:
1993
$1,061.92
1994 (est.)
$1,256.0
TOTAL REVENUES
$64,404.27
EXPENDITURES
Transfer to GMEF
$0.00
TOTAL EXPENDITURES
$0.00
FUND BALANCE FOR SMALL CITIES GRANT
Oocombor 31, 1994
SCERO•A. WK 1: 03/03/95
$64,404.27'
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG) - STANDARD IRON
FINANCIAL REPORT
March 7, 1995
Payback began in July, 1994 for 7 years ending in June, 2001.
Annual principal and interest payback total is $33,306.12.
Grant must be expended by December 31, 1994, up to $250,000.
EXPENDED:
BEVENUES
Loan Payback
Grant Administrative Fee
Interest Income - Investment:
1994
TOTAL REVENUES
4 EXP_ENIX URES
Reimbursement to Wright County
Transfer to GMEF
TOTAL EXPENDITURES
R
$250,000.00 8/18/94
FUND BALANCE FOR SMALL CITIES GRANT
December 31, 1994
SCERO•SI.WK 1: 03/03/95
$19,428.57
$1,000.00
$0.00
$20,428.57
$19,323.57
$0.00
$19,323.57
.._. $1,105-00
111
CENTRAL MINNESOTA INITIATIVE FUND (CMIF) - STANDARD IRON
FINANCIAL REPORT
March 7, 1995
Payback began in July, 1994 for 7 years ending in June, 2001.
Annual principal and interest payback total is $13,322.52.
EXPENDED: $100,000.00
1994
$100,000.00
REVENUES
Loan Payback
$7,771.47
Interest Income - Investment:
1994
$0.00
TOTAL REVENUES
$7,771.47
EXPENDITURES
Reimbursement to Wright County
$7,701.47
Transfer to GMEF
$0.00
TOTAL EXPENDITURES
$7,701.47
FUND BALANCE FOR CENT MN INITIATIVE FUND
December 31, 1994
CMIF•SI.W K4: 03/03/85
$70.00
EDA AGENDA
MARCH 7, 1995
7. Conside_ra_ti_on of_ a_n_update__cn GMEF._Loan No. 008 for t__he H-_
window.
Reference and Background:
On June 21. 1994, Koropchak reported she contacted Mr. Lemme
regarding the ownership percentage discrepency on the
preliminary GMEF application and the executive summary. Mr.
Lemme indicated that most recently the Norwegian ownership
percentage changed as Spilka International and Beckman became
larger shareholders as they bought out a percentage of
Fjerdingstad.
The EDA approved GMEF Loan No. 008 for the H•Window Company on
June 15, 1994. The approved $50,000 equipment loan had a
fixed interest rate of 5.25% and amortization of seven years.
The loan became null and void on December 15 if monies were
not disbursed. On June 27, the City Council ratified the
EDA's loan approval.
On December 15. the EDA approved the extension of the GMEF
disbursement date to January 15, 1995. Loan No. 008 became
null and void as of January 15 because under the circumstance
of now information; Korochak felt the EDA needed to be
t informed prior to another extension date approval.
Initially it was thought that the $250,000 Small Cities
Economic Recovery Grant (SCERC) to the City of Monticello
would be from State dollars. However, upon the suggestion of
the State and agreement of the H -Window, the $250.000 Crant
was to be funded by Federal dollars. This is an advantage to
the City as the City retains the full $250,000 principal and
interest payback; however, the company is subject to stricter
levels and accountability of jobs available to and filled by
minorities and low/moderate incomes.
A copy of the May Id. 1094 grant, terms and conditions were
submitted to the H -Window and thereafter revised. The grant
award letter was received August 17. 1994 and a copy of the
executed grant agreement was received November 9. 1994. Grant
monies must be dloburged by the middle of June, 1995.
In December and upon Attorney Weingarden's preparation of the
closing loan documents for the 9CERG and the CMEr, it became
apparent that the H -Window owed back payments of $260,000 Plus
Interest on the Norwegian Industrial Fund. Forgiveness of the
default interest is under negotiation; however, payment of the
Page 1
EDA AGENDA
MARCH 7, 1995
loan principal is due. The State requested $300.000 equity
and the execution of the Standby Agreement from the Norwegian
Industrial Fund shareholders.
It is my understanding, the State will now accept an annual
letter of credit in the amount of $300,000 from the Christiana
Bank of New York as collateral for the State Grant and GMEF.
Mr. Steve Lemme has received a verbal "yes" from the New York
Bank and hopes to have an official response by Wednesday,
March 1, 1995. Mr. Lemme will be out-of-town after March 1.
If the letter of credit is issued, the EDA will reconsider the
loan application for approval of GMEF Loan No. 009.
As an EDA member, please be remindful of the importance of
'confidentiality'.
L
CPago 2
EDA AGENDA
MARCH 7, 1995
Other Business:
W)- Tapper's _ Inc. expansion - Bill and Barb Tapper plan to
expand Genereux Fine Wood Products by 18,000 sq ft this
summer. Enclosed is a copy of the uses and sources of
funds for the $700,000 expansion project. The original
TIF budget modification has been approved to increase the
expenditures and the Amended and Restated Assessment
Agreement has been filed at the County recording the
increased estimated market value.
The SBA and bank applications are in progress and the
developer is working on building and site plans. You
will note the Tapper's are requesting a $50.000 loan from
the EDA.
The Tdpper's were awarded a $88,000 GMEF Loan in 1990 at
8% interest rate amortized over 20 years with a balloon
payment of $70,989.16 due August 13, 1997. The loan
payback is current and as of December 1096, the remaining
principal balance waa $78,539.87.
Although It id premature to formally consider this load
request, does the EDA object to approving a second loan
withuut prepayment of the firut loan? Assuming, the
company's revenue demonstrates the availability to cuvur
all debt both current and due to the expansion. what are
the EDA's thoughts?
Pape 1
.r
GREATER MONTICELLO ENTERPRISE
250 EAST BROADWAY
MONTICELLO, MINNESOTA
PRELIMINARY APPLICATION FOR LOAN
APPLIC;NT: Tappers, Inc.
FIRM OR TRADE NAME: Genereux Fine Wood Products A Westlund Distributing
BUSINESS ADDRESS: 212 Chglsea Road. MonticellQ, MN 55362
(i s Street) (City 6 State) (Zip Code)
TELEPHONE: BUSINESS ( )612-295-4222 HCHE ( 1612-473-7919
DATE ESTABLISHED: business purchased 1984 EMPLOYER I•D•1:41-1470393
SOLE PROPRIETOR X CORPORATION PARTNERSHIP
MANAGEMENT
NAME TITLE OWNERSHIP B
William R. Tapper President 506
Barbara R. Tapoer §ecretary 508
Lance Hartkoof General (Aanager SGenereux) 08
John Gammel General Manaqer (Westlund) 08
PROJECT LOCATION: Lot 4, Block 2 Oakwood Industrial Park
NEW BUSINESS X EXISTING BUSINESS
TOTAL PROJECT COST ESTIMATE: 9709.Onn
PROPOSED USES:
LAND $
EXISTING BUILDING
CONSTRUCTION
500,000
MACHINERY CAPITAL
165,000
WORKING CAPITAL
OTHER
44,000
TOTAL USES $
709.000
PROPOSED BEGINNING DATE: ---.Ar. 4 i iooa
ESTIMATED COMPLETION DATE: tnly 1995
RECUEST•
AMOONP OF LOAN 50.000
MATURITY A TERMS
REQUESTED 5/6!
APPLICANT'S
EQUI:'Y 30.000 (TIF)
LOAN PURPOSE suildino A Equip.
TITLE TO
PROJECT ASSETS TO BE HELD BY: _ OPERATING ENTITY _.jL ALTER EGO
PARTICIPATING LENDER:ttn Ban"gntirolln. MN RRA ?
ftNur r ees
r ( 1E 52
ortWCt Person (Telepnon
PRESENT ; OF EMPLOYEES: PROJECTED 1 OF E4PLOYEES65
ADDITIONAL PROJECT INFORMATIO : 94n�icant ootentisl for oroductivity
growth. �
APPLICANT SIGRIA. , - i '` DATE SIGNED: ��
t
PUBLIC RESOURCE
r
GROUP, INC.
t
Marketing, Development & Finance Specialists
TO: 011ie Koropchak
Economic Development Director
FROM: Leonard P. Kirscht
DATE: October 4, 1994
aZ SUBJECT: Expansion Project
Pursuant to our meeting of September 13, 1994, 1 have prepared a preliminary finance structure
to facilitate the expansion of Tappers, Inc. This structure utilizes upfront tax increment
financing assistance and Greater Monticello Enterprise Funding, in a subordinated position, as
the necessary equity investment to leverage the Bank and the SBA financing.
As we discussed, the estimated uses of funds for this project are as follows:
New Construction (18,000 square fat) $590,000
Equipment 95,000
Soft Cost/Contingency 15.000
TOTAL USES OF FUNDS $700,000
I 4205 Lancaster Lane North-* Suite 1100 • Minneapolis. Minnesota 55441 • 1612) S50•i9i9 ♦ 012) 550.92:1 Fox
` r
Based on these uses of funds, 1 recommend that we pursue the fixed asset portion of the funding
as follows:
-�
—SQURgES OF FUNDS
Bank (ARM, 20 years, Ist) $340,000
SBA 504 (845, 20 years, 2nd) $>✓ 280,000
Equity
GMEF (6%, 20 year amort., 3rd) 50,000
Up front TIF Assistance 30"000
TOTAL SOURCES OF FUNDS $700,000
Assuming that the adjustable rate mortgage related to the bank financing averages 9.5%, the
monthly and annual debt service and the corresponding cost/square foot have been estimated as
outlined below:
Bank (Avg. 9.5%) $3,170
SBA 504 $2,340
GMEF LIN
a TOTAL MONTHLY $5,870
TOTAL ANNUAL ' $70,440
COST/SQUARE FOOT 33.90/SF
Including Equipment
This finance structure involves no money down from the company and assumes the pledge of
excess equipment, valued ai S90,000+, to the SBA. In addition, I would anticipate that
Tappers' debt -to -worth ratio, after this transaction, in no greater than 3: I.
I have invited Deborah Gustafson of Bridgewater Financial Group to join us so that we may
develop a financing strategy and schedule to proceed with this project.
dp
z
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (612) 295.2711
Metro: (612) 333-5739
Fax: (612) 295.4404
February 22, 1995
Dear EDA Coimelosioner:
Enclused is a copy of the EDA agenda planned for Tuesday, March 7.
1095, 7:00 p.m., at the City Hall. Thiu letter is an ❑dvaneed
notice of the meeting date and a complete agenda will be walled to
you prior to the March 7 meeting. It Is planned that EDA
candldstew and Parke Commission candldatew will be Interviewed and
appulnted by City Cuuncll on March 13, 1095.
AlWo enclusud fur your Information is a copy of the letter written
to Mr. Morford and a reopunoe frum Mr. Mooford.
Please notify ate at 295.2711, if yuu are unable to attend the March
7 intieting.
91ncerely,
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
V Q.g,.:- K
011io Koropchak
Executive Dlrector
ce: File
Page 12-Monticello (Minn.) Times, Thursday, Jan. 26, 1995
state of Mlmlesbts Office of the
SECRETARY OF STATE CERTIFICATE r
CER E AMENDED STATE
/area
I
ASSUMED NAME Pursuant to CI
ASSUMED
D
Pursuant Chapter 333, Minnesota Statutes. the unci
®� I
$tortes. the urderslgneO, wsro Is win conducting or
in i ci 9 m 1
Conducting m busnderess
Pubic
un r dna
In the $IaIB Of Minne901a ander an Under An 055um•
In Minnesota
assumed name. hereby Certifies' ties:
I_ The assumed name under which 1. The assume
-
the business Is or will be conducted is the business is n
aa lty Tradesmen Construction Pine Port n,
Outfit
PUBLIC NOTICE
eslits
2, a address of the principal place 2. The stre01
01 business 15 or will DB 4671 1491h SI Inca of Ousln,
Drive, t
ECONOMIC DEVELOPMENT
N W., The 55362.y
J. The 55382.
AUTHORITY (EDA) VACANCY
name and address of all poo-
o d a dress
bons conductingAsmem puniness under the 3. The —me n
e0ove Assumed Nemo. Note: If the sons conduclint
The Cit of Monticello is taking applications from cit
City g pp Y
business owner Is a corporation, you above A99Um or
must list the legal corporate name and business owner
residents interested in serving on the EDA. Individuals
list thei legi
the legal registered oMca of the torpor must list the lepf
interested in serving on this commission can obtain an
ration. thrt
Scor Foley. 4671 140th St. N.W., G1eg0ry V.
application or more information at city hall or by calling
IS,
Clearwater, MN 59320 St., MMonticell0. 1
011ie at 2952711. Applications will be accepted until
Stacey Foley. 4671 140th Of N.W., Knowlton, 29 Foe
February 10, 1995.
Y
Clearwater, MN 55320 MN 55362.
4 This Certificate Is an amendment of Dates. Juno
Certificate of Assumed Name num or Signed'. OrepOr
_
0145657 filed with the Secretary of STATE OF MILAN
Stale On May 20. 1994, under the name COUNTY OF WR
Ouali Tradesman Construction The lorugoir
PUBLIC NOTICE
S 1 eenlly that I em aultrodzed to ase acknowledged or
PARKS COMMISSION VACANCY
We this amendment and I furthertens 1994. by Gregory
M that I understand that by tlgninp the Pine Partners,
tie
Barbara J. Schee
rhe City of Monticello is laking applications from city
amendment. 1 am subject to penal.
ties of perjury as eel forth In Section (Jan, 26. Feb, 2.
residents interested in serving on the Monticello Parks
609 48 as If f had signed this amend
manl under oath
Commission. Individuals interested in servingon this com•
Dated. 10.5-94
Signed', Ste cy Fao ,Owner ,
mission can obtain an application at city hall or by calling
(Jan 26, Feo. 7, 199)
Wanda at 295.2711. Applications will be accepted until
AGREEMENT-RESOLUTION NO, 191
February 10, 1995.
TOWNSHIP OF SILVER CREEK WRIG14T COUNT
An agreement granting Mlnnegasco, a division of N,
Delaware corporation, Its successors and asalgns, the tigh
repair end maintain facilities and equipment for the transportsale
of pas energy for public and "ale use and to use if
NOTICE OF PUBLIC HEARING
Township of Silver Creek, Minnesota for such purposes,
Nonce Is hereby given that public howings will be held by the City of Monbcollo
terms and conditions thereof
Planning Commission on Feb 7, 1995. at 7 p m., In the Montrcueo City Holl to con
114E TOWN DOARD OF SILVER CREEK ORDAINS,
Sidor the fonowlm manors:
SECTION I. DEFINITIONS, The following terms shall moan
PUBLIC NEARING: Consideration of amendments to Chapter 3
'General Provisions of the Monticello Zoning Ordinance, The pro.
1,1, Mlnnegnsco, a division of NorAnt Energy
porallon, t�essor@ %no assigns,
posed emandmonl adds language regulating 'Polo building' conshuc•
1,2, UAL Natural pas, manufactured pas, mlrturo of not
eon
APPLICANT: Monticello Planning Commission
Written testimony be accepted NI
twed as on other forms of pas snorgy
I.J. itzyy7I7DID.�gB7L.Ogiff,jT�M.S-r�a[h. Th 0. forme
Town
and oral wilt on above subjects, and persons
duslrl 10 be heard on referenced anbject will be hoard a1 ths mooting
lownshlp o 81Ner rook, 1 oar o7 the of Silver Cie.
Town Of Silver Crook
NQ, Decisions of the Planning Commission will be subject to the approval m
1,4,P1rb11aQIQ10 All s0relf, aneye puDllc wins. utilnT
d^nin of the C1 Coundl and writ be heard on Monday, rob. 13, 1995, at 7 p m., a1
the Monticello Cryty 14NI,
-Gary Anderson, Zoning Administration
grounds 0 Iho ownslrlp as to which r1 has the right to grant l
SECTION 2. AGREEMENT QENERALLv.
2.1 Thera Is hereby to the C
(Jan 2y 6 rob, 2. 1995)
• Qt4nLqLfta=fUTi granted
20 years, the fight to Import. transport, distribute and sell gr
NOTICE OF PUBLIC NEARING
use In the Township, and fa these purposes to construct, of
Nobcs Is hereby given that public hearings will be hold by the CityofMonaceno
^ In, on, over, under and across the Public Ground a In.
Planning Commission on Fob 7, 1995, el 7 p.m., In are Monticello City Hall to con,
and egrrlpmem used In connection thoiewlth, and to do all 1
elder the loeewmQ matters;
lv
eery or customary In the accaOpushm0nl Of those Oblodss
nonces. other applicable mdmences, permit procedures, cu
PUBLIC H[ARINO: Consideration of amendments to the Monlicello
Zoning Ordinance establishing buffer yard standards for the pwpuor
of sepwO6n0p rssldentist, commardal and Industrial land uses,
the provisions of this agreement
12, [RpCllyp.QDtp TMs agreement Shap be In force and
APPLICAN f, klanbenao Planning Commission
passage end publication as required by law,
W4den and ora testimony win be accepted on above subjects. end all persons
2.3 I',IIDll IgflEtganaa. The onto Of Publication of
deskin to be head on referenced subjects will be heard at this mossng
NO Decisions of the Planning CommleslOn will w subject to IN approval m
paid by o ompany
2 4 �9:DlQL tl IM ComOmry Is In deleUll In the Denmmor
ef this let mate then 00 days Alla rocnAmp
O. 01 the City Co u cil end win be heard on Monday, Fab, 13, 1005, at 7 p m , e1
agreement
To—Nil Ot such default, the Town Board may, by resolut
the Mm11c^llo CIN Ifall
-Gar Anderson, Zoning Administration
planted relader to Ilia Company The notice of default she
(Jan. 26 a Feb, 2, 1095)
goodly the provisions of this ag le Gel undw which the deli
Me basis therefor. Such noun shall be served on Ire Carp
are to offkm thefea
NOTICE OF PUBLIC HEARING
notice an a11b 0 place of I
� IM Cornparly a N dot" as 10 any on IN' operon
Notice Is hereby gknn that publle M"s will be held by the City a Momleello
Feb. 7, H Monticello CIN
" Owl
arm reasonable notice to IM Company rub the failu a of th
Flaming Commission on 1095, at 7 p. m., au Hall to con
M4rA within a ressanable time, Isom such action as they, b
edw Ura Ioso'n meflnP
PUBLIC .?r Consideration ^1 a preliminary plat request for
to
to abate me condition commit Dy the dot". and the compa
Passe V, Cardinal Hills residential sWdMslon plat, watch Is 0 34 lot
0u Township to, All la renewable cost,
residential subdivision located directly east of phases III and IV of
Nothing n Isis section SRN bar Ou tompMy Rom end
Cardinal HMIs residents) suladlvislonr, Location Is Mat Pmt a the north
dam aur a default has peened In Vs event of dtagrseme
half of the BW 114 OI the BW 114, of Section 13. Towmshlp 121, Range
a defalA, the burden of Orovug the default shall be on the 1
29, In pu d of Moni calu
SECTION 9 CONDITIONS OF USE
APF In Nr'Vr.l„w n1,•r ..__
. ., .- .,. .... ..... . .....
250 East Broadway
P. 0. Box 1147
Monticello. MN
55362.9245
Phone: (612) 295.2711
Metro: (612) 333-5739
Fax: (612) 295.4404
Mr. Bob Mosford
Mosford, Barthel & Company, CPA
305 Cedar Street
Suite 201
Monticello, MN 55362
Dear Mr. Mosford:
January 24, 1995
On behalf of the City of Monticello and the Economic
Development Authority (EDA), 1 wish to thank you for
serving on the EDA.
The January 9, 1995, City Council policy decision
requiring appointed commissioners to be a resident of the
city coma as a surprise to staff members. The Council's
deeioiou woo not basad on the performance of a
commisoloner but woo a decision based on the increased
number of individuals applying and willing to run for a
city elected at, appulnted positions. The reoldency
requirement allows city residents a greater opportunity
to serve within the boundaries of the city taxing
jurisdiction. The residency requirement Is a phased -out
process beginning with 1994 expiration terms. Again, the
Council did not base their decision on performance and
expressed both regret and gratefulness for the
individuals who have willingly served no a commissioner
and volunteer.
Again. Bob, 1 want to thank you for serving as a charter
member of the EDA: your field of expertise In budgeting,
accounting, and financing was a real asset to the EDA.
C
Mr. Mosford
Januar•; 24, 1995
Page 2
Also. I have on record your expressed Interest to serve
an other city or community organizations or committees.
With warm regards,
ECONOMIC DEVELOPMENT AUTHORITY .
IN AND FOR THE CITY OF MONTICELLb
011ie Koropchak
Executive Director
CC: Rick Woltateller, City Administrator
EDA File ✓
C
February 6. 1995
Mr. Brad Pyle, Mayor
City Council
City of Monticello
Box 1147
Monticello, HN 55362
Dear Mayor 6 Council:
The decision of the January 9th council meeting with respect to a residency
requirement for appointed commissioners came as a real surprise to me
as well as others. Since I had been asked about serving another five
year term by the EDA committee, and was agreeable to such appointment,
I think the Council's unilateral decision was not only inappropriate,
but in very poor tastal Apparently the Council does not consider common
courtesy to be an attribute worthy of their consideration. I would
like to suggest that not only should the Council inform the commissioner
of their thinking on the issue prior to their public decision, but they
should also seek that commissioner's response and input (to any nothing
of the city staff). Perhaps it would also be appropriate to thank that
{( commissioner for his or tier service prior to announcing such n decision!
The logic of Council's decision is apparently based on the number of
city residents applying for appointed positions. Since the Council's
decision was not based upon a recommendation of the city staff, who
then has tabulated and documented these npplications7 Might I suggest
that there is perhaps a significant difference between those who say
they are interested in public service, and those who show up to do their
job. Perhaps the Council, before excluding non-residents from consideration.
should request a formal application from all interested parties within
the "Community" and let the commissioners and city staff select the
membership based upon qualification and actual level of interest.
Webster's definition of the word community Se "a group of people living
together and having interests, work, etc. in common". Perhaps the Council's
idea of "community" is too narrow. The community in made up of many
talented people, several of whom may have the time and inclinetlun to
be involved in public service. Perhaps many of these people consider
"Monticello" their home, where they live. worship, go to school. shop
and recreate. Perhaps some of these people also own businesses slid
employ people within the city. and have a real "community" interest
whether they snide In the city or notl
Sincerely,
Robert W. Hanford
Certified Public Accountant, PPS
Im
PUBLIC NOTICE
Pursuant to the provisions of Minnesota Statutes 471.705, a special
meeting of the MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY is hereby
scheduled for the following time, dale, and place:
TIME: 7:00 P.M.
DATE: WEDNESDAY, JUNE 15, 1994
PLACE: MONTICELLO CITY HALL, COUNCIL CHAMBERS
SUBJECT:
1. CONSIDERATION TO REVIEW THE PRELIMINARY AND FINAL CHEF
APPLICATION FOR APPLICANT, THE H -WINDOW COMPANY.
2. ' CONSIDERATION TO APPROVE CMEF LOAN NO. 008 FOR THE
H -WINDOW COMPANY.
1