EDA Agenda 01-27-1993AGENDA
NONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
ANNUAL MEETING
Wednesday, January 27, 1993 - 7:00 p.m.
City Ball
MEMBERS: Chairperson Ron Hoglund, Barb Schwientek, Bob Mosford,
Clint Herbst, Patty Olsen, Harvey Bendall, and Al Larson.
STAFF: Rick Wolfstel.ler, Jeff O'Neill, and 011ie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE OCTOBER 28, 1992 EDA MINUTES.
3. CONSIDERATION TO ELECT 1993 EDA OFFICERS.
C. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR-END EDA FINANCIA1,
STATEMENTS AND ACTIVITY REPORT.
5. CONSIDERATION TO HEAR THE YEAR-END STATUS OF GMEF LOANS.
G. OTHER BUSINESS.
a) Potential GMEF applicants.
b) Acknowlr_dgement of receiving the 1993 Economic
Development Work Plan.
7. ADJOURNMENT.
MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, October 26, 1992 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Ron Hoglund, Vice Chairperson Barb
Schwientek, Assistant -Treasurer Bob Mosford,
Clint Herbst, Harvey Kendall, and Al Larson.
MEMBER ABSENT: Brad Fyle.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Treasurer Rick Wolfsteller and Jeff O'Neill.
CALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE JULY 21. 1992 EDA MINUTES.
Barb Schwientek made a motion to approve the July 21, 1992 EDA
minutes, seconded by Al Larson, and with no corrections or
additions the minutes were approved as written.
C3. CONSIDERATION TO RATIFY EARLY DISBURSEMENT OF GMEF LOAN 110.
004.
Upon the Darger's request for early disbursement of approved
GMEF Loan No. 004 (prior to bank closing) for acquisition of
lands, Koropchak contacted EDA members via the phone for
authorization. Five EDA member gave authorization for early
disbursement, Brad Fyle declined, and Harvey Kendall was not
reached. Upon City Attorney Weingarden's advice, the EDA is
asked to formally ratify the early disbursement.
Bob Mosford made a motion ratifying the early disbursement of
approved GMEF No. 000 for land acquisition. Al Larson
seconded the motion and without further discussion the motion
passed unanimously. Early disbursement was granted to allow
construction to begin thereby enhancing scheduled completion
date of the new facility and allowing possession date of the
existing facility in Rogers to occur as agreed upon.
6. CONSIDERATION TO REVIEW EDA LEGAL FEES ASSOCIATED WIT11 Gh7EF
LOANS.
Upon review of the 6150, $2,800, and 0290 legal fees from Mr.
Weingarden for the Barger project, the EDA requested Mr.
Ileingarden Itemize the October 23 billing and bill
t accordingly. It was the EDA'o opinion that title matters,
EDA MINUTES
OCTOBER 28, :992,
` PAGE 2
sign issues, o;jd piatting costs were not the obligation of the
EDA. The City Attorney's role is to review GMEF closing
transactions. They questioned who gave Mr. Weingarden the
authorization to proceed on the EDA's behalf. The EDA members
agreed that the GMEF was created for gap funding (a benefit to
the company) and was not intended to be a large expenditure of
the EDA or of the GMEF recipient. Additionally, members
viewed the not -to -exceed 1.5% loan fee as a charge for
servicing the GMEF loan much as a bans: charges.
The EDA did agree and saw merit for the HRA and tate EDA to use
the same attorney for continuity, understandability, and cost
effectiveness. The EDA recommended researching the cost of
working with John Dean, Holmes & Graven.
CONSIDERATIO14 TO DEFINE FUNDABLE COSTS UNDER THE GMEF USE OF
PROCEEDS.
Koropchak asked EDA members for a clearer definition of
fundable costs under the GMEF guidelines. It was Koropchak's
understanding that construction loans generally do not cover
soft costs such as appraisals, legal fees, etc. Mr. Mosford
said he would prepare a guide for Koropchak and the EDA
responded that the machinery and equipment must apply to
production or manufacturing.
CONSIDERATION TO DISCUSS 1993 GMEF BUDGET.
Koropchak presented EUA members with a summary of the GMEF
appropriations and loans stating the current remaining GMEF
balance is $85,000 and suggested for recordable purposes the
EUA make a motion requesting a 1993 Liquor Fund Appropriation
of $:15.000. It was the EDA's opinion that the request was
unnecessary as they felt the annual request was a standing
request until such time the GMEF was self-sufficient therefore
no request was made.
OTHER BUSINESS.
None.
ADJOURNMENT.
The EDA meeting adjourned at 8:15 p.m.
V,, '5� a
011ie Koropchak, EDA xecutive Director
EDA AGENDA
JANUARY 2-1,.1.993
3. '760nsideratldn io Elect 1993 EDA Officers.
A: Reference and Background.
Inorder ,to comply with EDA Ordinance Amendment No. 172,
Section 2=3-2: The .Authority shall elect a president, vice
president, treasurer, assistanttreasurer, and secretary.
annually. The current list of officers are as fdllows:
President
_Ron Hoglund
Vice President
Barb, Schwientek
Treasurer
Rick Wolfsteller
Assistant Treasurer
Bob Mosford
Secretary
011ie Koropchak
Nominations will be made at the meeting, therefore, any EDA member
unable to make the :meeting and doesn't wish to be re-elected or
nominated, please contact me.
At the January 1'_1 City Qouncll- meeting annual appointments .were.
approved by the Council. -EDA Member Al Larson'a term expired as .of.
December 31, :1992 and .he agreed to. serve, anotKeir term of Which
Copneil approved. Additionally, Councilmembe`r Fyle reque-s:ted 'a
tran®for to t1io-Pa`rki:Commispion.{A9visory poai,tion), therefor®,
now Cound_ilmember Olson waa.'appointad to "the MDA; EDA`,mamber'a
lakgAratl'6n-ter" ®tand as 01101wa:.
Bneb MS�hwidn_ie_k 12/.93
Bob-oiford 12/94
Clint,lterbit; Council 12/94
Ron Hoglund 12/95
I[ar voy-,Randa hl 1:2/%O
6
Patty 01len i2`/98,
Al Larson 12/97
"a .BDA .ih6uld elect 44'0- offieers.
EDA AGPNDA
JANUARY 27, 1993
4. Consideration to Review and Accept the Year -End EDA Financial
Statements and Activitv Report.
A. Reference and Backaround
Inorder 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 is the year-end statements, proposed budget, and
activity report.
The EUA will need to review for necessary revision and accept
the statements/report.
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Balance Sheet
December 31, 1992
Cash in Bank
Notes Receivable - Tapper's Inc.
Notes Receivable - Muller Theater
Notes Receivable - SMM, Inc.
Notes Receivable - Aroplax Curb.
Appropriations Receivables -
1991 UDAG
1992 UDAG
1992 Liquor Fund
TOTAL ASSETS
ASSETS
$ 32,822.33
83,257.09
47,685.62
49,871.18
83,967.86
65,000.00
20,000.00
115,000.00
$497,604.08
FUND EQUITY
Fund Balance
Reserved for Participation Loans
(Economic Development.)
TOTAL LIABILITIES AND FUND EQUITY
S497,604.08
$497,604.08
j MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
�- GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended December 31, 1992
REVENUES
Appropriations -
1992 Liquor Fund
1992 UDAG
interest Income - Notes
Interest Income - Investment
Loan Fees
TOTAL REVENUES
EXPENDITURES
Legal Fees
Service Fees
Int. Adjustment - Notes
TOTAL EXPENDITURES
Excess 0f Hevenues Over Expenditures
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$115,000.00
20,000.00
11.006.26
696.78
2,085.00
$148,786.04
$ 977.50
210.00
1.74
S 1.189.24
$147,598.80
$350,005.28
g497,604.08
MGNTICELLO ECONOMIC
DEVELOPMENT AUTHORITY
v GREATER MONTICE:LLO ENTERPRISE
FUND (GMEF)
1993 Cush Flow
Projection
BECIIINING CASH BALANCE, January 1993
$ 32,822.33
RECEIPTS
Appropriations, Expected
$200,000.00
Notes Amortization Payments -
Tapper's Inc. ($736.07 Mo.)
8,832.84
Muller Theatre ($418.22 Mo.)
5,018.64
SMM, Inc. ($316.32 Mo.)
3.795.64
Aroplax Corp. ($1,241.73 Mo.)
14,900.76
Interest Income - Investment
700.00
Loan Fees
3,000.00
TOTAL RECEIPTS
S236.248.08
TOTAL BEGINNING BALANCE AND RECEIPTS
$269,070.41
EXPENDITURES
GMEF Loauo -
( Custom Canopy
$ 35,000.00
Al] -Temp Distribution
75,000.00
Wilson Tool International
90,000.00
Legal Fees
3,000.00
Service Foes
315.00
TOTAL. EXPENDITURES
$203„315.00
EXPECTED CASH BALANCE., December 1993
$ 155,'"55.41
EDA AGENDA
.JANUARY 27, 1393
1993 EDA ACTIVITY REPORT
MEETING DATE
31JB.JECTS
Annual Meeting
EUA officer elected for 1992:
held 2/5/92
President- Ran Hoglund
Vice President - Barb Srhwientek
Treasurer - Rick Wolfsteller
Assistant Treasurer - Bob Mosford
Secretary - 011ie Koropchak
All approved GMI,F loans: Tapper's and
Muller Theatre are current as accounted
for in the 1992 year-end statements.
4/28/32
Reviewed the Letter of Intent between
Aroplax and the City of Monticello and
the revised proposed funding sources:
TIF, $70,000; Bank, $300,000; SBA,
$300,000; CMIF $30,000; State Grant,
$170,000; and GMEF, $05,000 (includes
cost overruns).
Amended GMHF GuidelInes: NON --PERFORMANCE
PROVISION An approved GMEF loan shall be
null and void if funds nre not dr.iwn upan
or disbursed within one --hundred (120)
days from date of EDA loan approval.
7 21/92
Reviewed preliminary and formal GMEF
applications for SMM and approvad GMEF
Loan No. 004 for $50,000, 4.5% intrreet
rate, amortized over 20 years balloon in
five years.
Approved requesting City Council
authorize all a.idII iona1 $20,000
appropriation transfer from the Liquor
Fund to the GMEF.
Revluwod preliminary and forma.l GMEF
app] irat.lon for Aroplax and approvo,l Loin
No. OOb for- $8b,000, 6% interest rate,
amortized over 3;ven years.
10/28/92
Hat if.ted early disbursement of approv—i
C1417F Loart No. 004 for ar,Guicition of
Iattd.
Reviewed EDA legal fees.
EDA AGENDA
JANUARY 27. 1993
Consideration to Hear the Year -End Status of GMEF Loans
All the GMEF Loans: Tapper's, Muller Theatre, SMM, and Aroplax
are current as accounted for in the year-end statements.
With the understanding that the Muller Theatre loan payback
time varies from month-to-month, the EDA may wish to discuss
the need for a late penalty period and charge.
Additionally, a brief summary of the projected annual GMEF
loans paybacks with balloon payments through 1997 is provided
for your information.
GMEF LOANS
GMEF LOAN NO. 001 - TAPPERS S88,000 8% AMORTIZED 30 YEARS
BALLOONED IN 7 YEARS. (5736.07) /
8-13-90 S 2,944.28 /
91 8,832.84
92 8,832.84
93 8,832.84
94 8,832.84
95 8,832.84
96 6,832.84
97 5,888.56
BALLOON PAYMENT 70,989.14
PAYBACK S132,819.02
GMEF LOAN NO. 002 - MULLER THEATRE $50,000 8% AMORTIZED 20 YEARS
BALLOONED IN 5 YEARS. ($418.22)
12-1-90 $ 418.22
91 5,018.64
92 5,018.64
93 5,018.64
94 5,018.64
95 4,600.42
BALLOON PAYMENT 43,762.79
PAYBACK S 68,855.99
GMEF LOAN NO. 003 - NULL AND VOID
GMEF LOAN NO. 004 - BARGERS $50,000 4.5% AMORTIZED 20 YEARS
BALLOONED IN 5 YEARS. ($316.32)
12-1-92 9 316.32
93 3,795.84
94 3,795.84
95 3.795.84
96 3,795.84
97 3,479.52
BALLOON PAYMENT 41,350.00
PAYBACK $ 60,329.20
GMEF LOAN NO. 005 - SCHOENS $85,000 6% AMORTIZED 7 YEARS
($1,241.73)
12-1-92
5 1,241.73
93
14,900.76
94
14,900.76
95
14,900.76
96
14,900.76
97
14,900.76
98
14,900.76
99
13,338.57
PAYBACK $103,984.86
11-24-92
PREPARED BY OLLIE KOROPCHAK
GMEFLOAN.ACC
J
t
11-24-92
PREPAREDBY OLLIE KOROPCIIAI(
ECONOMIC .REV
TIF
GMEF
STATE
"SURPLUS"
LOANS
UDAG
GRANT
BEGINNING
BALANCE
$127,975
$ 32,623
$ 7,971
$ 2,483
1993
$ 18,217
$ 32,548
S 27,971
$ 29,801
1994
$ 1,739
$ 32,546
$ 27,971
$ 29,801
1995
$ 12,728
$ 75,892
$ 27,971
S 29,801
1996
$ 12,040
$ 27,529
$ 27,971
$ 29,801
1997
$ 17,447
$136,607
S 27,971
$ 12,417
1998
$ 8,078
$ 14,900
$ 27,971
1999
$ 18,609
S 13,338
$ 27,971
TOTAL
$216,841
$365,989
$203,770
$134,106
11-24-92
PREPAREDBY OLLIE KOROPCIIAI(
ECONOMIC .REV
Under the GMEF Guidelines use of proceeds for real property acquisition and
development, real property rehabilitation (expansion or improvements) and
machinery and equipment. The following commentary is intended to a8318t
developers with those costa typically considered eligible:
Real Property Acquisition and Improvement Coate
Lend Acquisition Engineer/Design/Inspection Fees
Building Permit Fees Architect Pees
Building materials Soil borings
Construction labor Appraisal Fees
Landscaping LegaL Fees
Grading Environmental Study
Curbing/Parking Lot Recording Fees
Title Insurance
Personal property used as an integral part of the manufacturing or commercial
business, with a useful life of at least three years. Acquisition costa would
include freight and sales taxes paid. As a general rule, office equipment would
not qualify.
TAX INCREMENT FINANCE ESTIMATES
WILSON TOOL INTERNATIONAL
Tam Emery and Jim Mishek
12912 Farnham Avenue
White Bear Lake, MN 55110
(612) 426-138; FAX (612) 426-9134
BACKGROUND:
This 26 -year old company is headquartered in White Bear Lake and
employs 350 people, running three shifts. The company is looking
to expand and construct an approximately 40,000 sq ft concrete
manufacturing/office facility on 5-7 acres. Projections are 40
employees within three years or 85 employees within five years.
Average wage is about $12.00 per hour for computer control
operators, general machinist, and grinder operators. The company
produces punch and die replacement parts. The company is looking
at other Minnesota communities and in Wisconsin. Referred by Joel
LaValle of Remmele and Maureen Steinwall of Steinwall, Inc.
PROJECT:
Building:
2,000 sq ft office @ $32.50 per sq ft o $ 65,000
d 38,000 sq ft manufacturing @ $23.00 per sq ft - S 874.000
i Total 40,000 sq ft $ 939,000
Land:
87,120 sq ft or 2 acres @ 1.40 per sq ft = $ 34,848
217,800 sq ft or 5 acres @ S.25 per eq ft - i 54.450
Total 7 acres $ 69,298
TOTAL ESTIMATED MARKET VALUE $1,028,298
$100,000 $928,000
.0300 .0470
$ 3,000 $ 43,616
NEW CAPACITY VALUE - $47,616
193 EST. TAX RATE m 1.07212
ESTIMATED TAXES $51,050.06
ORIGINAL CAPACITY VALUE
CAPTURED CAPACITY VALUE .
ESTIMATED TAX INCREMENT e
ADJUSTED TAX INCREMENT
TIF PENALTY e
PROJECTED PROJECT INVESTMENT
4 m
January 27, 1993
MON ICELLO
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (612) 295.2711
Metro: (612) 333.5739
Fax: (612) 295-4404
Mr. Pat Pelstring
Business Development Services, Inc.
8990 Springbrook Drive
Suite 230
Minneapolis, MN 55633
(� Dear Pat:
I'm sorry you were unable to join us yesterday for a tour of Wilson
Tool International. On Monday, February 1, Mr. Tom Emery will be
presenting his site location recommendations to the company's upper
management. lie requested that Monticello submit a financial
proposal by Friday. January 29, therefore, I request your
assistance.
Mr. Emery gave us the impression that the company is financially
strong which may present a problem with obtaining state or regional
dollars. The company Is oleo considering Wisconsin for this
expansion. Mr. Emery inquired if the State of Minnesota offers any
state tax credits or rebates for machinery or equipment purchased
as the company plans to invest ono -million dollars in machinery and
equipment within the first your. The company will retain its
headquarters in White Bear Lake and the new production satellite is
projected to create approximately 85 new jobs within 3-4 years.
Mr. Emery estimates building construction at 925.00 per square foot
for a total of 91,000,000 and machinery 8 equipment at 91,000,000.
For the sake of the proposal, lot's estimate the seven -acre land
coats at 090,000. The company mentioned no need for working
capital. Enclosed are the estimated taxes on the building and
land.
Mr. Pelstriny
January 27A, 1997
Page 2
Pat, please call me regarding this proposal. Again, Mr. Emery was
most interested in state credits or rebates. The company plans to
be operational at the new facility by the third quarter of 1993.
Look forward to hearing from you.
CITY OF MONTICELLO
Sincerely,
011ie Koropchak
Economic Development Director
AX I:.CFEb1E:. FI:. .CE EST_}1n T..
ALL -TEMP DISTRrB(;TIUN C0MPAN'i
John C. Holman, President
5400 NE Main Street
Minneapolis , MN 55421
(612) 5-71-0215
BACX(3ROU:4D:
This family-owned storage distribution company was started in 1965
and today operates out of a 425,000 sq ft facility on 25 acres with
50 employees in Fridley. The company plans to expand and construct
an approximate 50,000 sq ft metal facility on a minimum of 2.5
acres. Potential 100,000 sq f The company would initially
employ 20 full time (forklift operators, customer service,
clerical) , starting wages at 58.00 ranging to S1C.00 per hour. The
company desires rail, estimated 24-40 tru�:ks in and out per day,
shifts run from 5:30 a.m. to 6A C p.m. with 5 -day extended option.
Some customers are Sunny Fresh roods, Haagen Dazs Ice Cream,
Tombstone Pizza, Green Giant, etc . Sunny Fresh Foods uses holding
freezers and has the need for blast freezing. Referred by Jerry
Rose of Sunny Fresh Foods.
PROJECT:
Building: Metal insulated -panels , construction costs $55 per oq ft
(52,750,000). As3es3ed value per Doug Gruber, County Assessor.
5,000 sq ft office @ S30.00 per sq ft
45,000 sq ft metal warehouse storage @ $17.00
45,000 sq ft refrigerated storage @ $3.00
Land: Five acres.
87,120 sq ft or 2 acres @ 5.40 per sq ft
130,630 sq ft or 3 acres @ $•25
TOTAL ESTIMATED MARKET VALUE
$100,000 $1,015,000
.0300 .0470
$ 3,000 S 47,705
NEW CAPACITY VALUE $50,705
'93 EST. TAX RATE 1.07212
ESTIMATED TAXES $54,361 .84
ORIGINAL CAPACITY VALUE v
CAPTURED CAPACITY VALUE e
ESTIMATED TAX INCP.EMENT
ADJUSTED TAX INCREf4L'NT
TIF PENALTY a
= S 150,000
$ 765,000
= sS 135,000
$1,050,000
= S 34,848
$ 32,670
S 67,518
P $1,117,518
JAN -05-93 TLE 14: 30 I D: EDS INC. TEL NO: MG -9034 Mew F01
Business Dsyslopment Services, Inc.
MEMORANDUM
TO: 011ie Kompcltak. City of Monticello
Housing and Redevelopment Authority
PROM: Pat Pelstring, President, Business Development Services, Inc.
DATE: January 3, 1993
SUWECT: ALL -TEMP DISTRIBUTION COMPANY
I have had an opportunity to review the information provided by Ms. Koropchak concerning the
potential for Tu Increment Financing to assist in the recruitment of All -Temp Distribution
� Cly
I have prepared the attached analysis which identifies the potential LOA lou and calculates the
projected net•inemment avOable per project cost. This analysis assumes that we establish an
Economic Development District over a ten year time period, without a significant economic
dgvalop hent• adjustment factor.
On an up -front bads, after adjustment for LOA loss, the project generates approximately
S35,380 per you of net tax increment. This would support a proposed bond issue of
approximately $200,000. After issuance costs and capitalized interest, the HRA would retain
approximately $150,000 for project investment.
As I understand, the company's anticipated net land acquisition cost is $67,500. I would
propose that the HRA offer to Nlly reimburse the land acquisition cost, and provide an
aMdona1S32,500 for site development and onsite utilities. This would leave approximately
$30,000 to offset the extension of public utilities, which may be required to serve the site.
We would recommend that the HRA improve this offer, if necessary, to complete the project.
TMs company has an excellent reputation in the Twin Cities. Although the proposed new jobs
in relatively modest compared to the size of the facility, these am higher•payinj, quality
positions. A company of this type also has the added value of serving to support additional food
pmaeasing development projects within the immediate area.
Your consideration of this information Is appreciated, Please contact me if you would like us
.to meet with you and the company and/or prepare a more deviled proposal.
PWP/mam
&40suris
SMSprW9b0004DrIwaSults21CaMin m"s,MNISSWaPhone 70SQU34
CUSTOM CANOPY
12903 MAIN STREET, SUITE 203
P 0 BOX 275
ROGERS, MN 55374
(612) 428-8478
OWNER: STEVE BIRKELAND
CONTACT: JIM BEYL
EXISTING BUSINESS: EIGHT YEARS OLD
BUILDING: OFFICE 1,300 SO FT (65 X 20)
MFG 7,910 SO FT (70 X 113)
METAL EXTERIOR
25 FT SIDE WALLS
4 (12 X 14 FT) OVERHEAD DOORS
LAND: THREE ACRES (OAKWOOD INDUSTRIAL PARK)
BUSINESS: PRODUCTION AND ASSEMBLY OF CANOPIES FOR GAS STATIONS
JOBS: EMPLOY 11 FT PEOPLE (PROJECTED GROWTH 2-3 JOBS)
WAGES: STARTING $8.00 PH (RANGE $9.76 - $18.00) OFF JAN -MAR
CURRENTLY: LEASE FACILITY IN ROGERS, OWN PROPERTY IN ALBERTVILLE
TIME FRAME: WINTER/SPRING CONSTRUCTION
COMMERICAL LENDER: AVAILABLE
ALSO INTERESTED IN GMEF
ESTIMATED TAXES:
(
BUILDING: OFFICE 1,300 SO FT
@ S30.00 -
$ 39,000
MFG 7,910 SO FT
@ $17.00 =
$134,470
LAND: 2 ACRES OR 87,120 SO FT 6 5.40
$ 34,848
1 ACRE OR 43,560 SO
FT @ 5.25
$ 10,890
$219,738
ESTIMATED MARKET VALUE $220,000
$100,000
$120,000
.0300
.0470
$ 3,000
$ 5,640
NEW CAPACITY VALUE
8 81650
'93 TAX RATE (ESTIMATED)
1.0800
ESTIMATED ANNUAL TAXES
$ 9,331
LESS ORIGINAL CAPACITY VALUE
LESS ADJUSTMENT FACTOR
LESS HACA PENALTY
LESS TIF EXPENDITURES
PAT, PLEASE ESTIMATE PAY-AS-YOU-GO OR DIRECT TIF ASSISTANCE
AVAILABLE FOR THIS SMALL POTENTIAL PROJECT. HRA TO REVIEW ON
DECEMBER 2. '%%V_- oa'+%k
RDs
Business Development Services, Inc.
MEMORANDUM
TO: 011ie Koro ha"'
tv of Monticello
FROM: Pat Pelstrin , dent. Rusiness Development Services. Inc.
DATE: December 4, 1992
SUBJECT: REVISED CUS'rOM CANOPY TII' ANALYSIS
I have revised the TIF analysis for Custom Canopy, based upon the discussion at the HRA
meeting Wednesday evening. 'I'he revised numbers reflect a $5.000 annual "pay -go" payment.
Phis translates into a net present value for the company of 56,34$.31.
I.aiso extended the analysis to identify the available administrative income, and anticipated
excess increment. Please contact me if you have additional questions.
PW 1"'mam
I?nclosures
n_. _ r -- ,. ______.;- -- e11+en em. mac— 10c_nnv
January 11 , 1993
Mr. Pat Pelstrirg
Business Development Services, Inc.
0390 Springbrouk Drive
Suite 230
Minneapolis, MIN 55433
Dear Mr. Pelstring:
At the January Monticello Housing and Redevelopment
Authority (LIRA) meeting, the commission again reviewed
Business Development Services, Inc. (BDS) charges
associated with packaging the Central Minnesota
Initiative Fund, the Small Business Administration, and
the State Economic Recovery Grant for the Aroplax and
Suburban Machine & Manufacturing projects. Although, the
associated charges can be recovered through the transfer
of TIF total project incomes into a HRA Development Fund,
it was the decision of the commission to delete packaging
from the agreement between BDS and the HRA. The HRA
understood that all city packaging and development costo
would be recovered through the respective TIF District
administrative expense. The HRA elects to retain BDS for
TIF packaging and marketing. we may need to amend our
agreement.
Pat, it is the hope of the HRA that the established
relationship between BDS, the HRA, and the City of
Monticello will not change. The HRA'a only request Is
that packaging charges associated with federal, state, or
regional programs be negotiated between BDS and the
prospective business.
Q Mr. Pelstring
January 11, 1993
Page 2
If you have any questions, please don't hesitate to call
me at METRO 333-5739 or (612) 295-2711. I thank you in
advance and look forward to a continued business -working
relationship with Business Development Services, Inc.
Sincerely,
CITY OF MONTICELLO
011ie Koropchak
Economic Development Director
cc: Administrator wolfsteller
Assistant Administrator O'Neill
HRA F --"e
SUBURBAN MACHINE & MANUFACTURING
PROJECTED TAX INCREMENT = $100,488 X 10% ADMINISTRATION = $10,048.80.
TIF ADMINISTRATION COSTS:
TIF PLAN (EDS)
$
3,850.00
TIF LEGAL (HOLMES & GRAVEN)
2,142.00
SUBTOTAL
$
5,992.00
POTENTIAL TO TRANSFER TO DEVELOPMENT
FUND
PACKAGING COSTS:
CMIF (BDS)
$
3,206.25
PROJECT COSTS:
LEGAL (WEINGARDEN)
EDA
$
2,349.25
TIF
S
412.50
SIGN ORDIANCE & PLAT
S
712.50
SUBTOTAL
$
3,474.25
MISCELLANEOUS:
FILING, PUBLIC NOTICES
$
183.76
ENGINEERING COSTS:
OSM
$
1,316.25
TOTAL SUBTOTAL
$
8,180.51
TOTAL
$14,172.51
BUDGET:
ADMINISTRATIVE $ 7,500.00
TOTAL BUDGET $89,000.00
BOND ISSUANCE: $75,000.00
4ROPLAX CORPORATION
t_
PROJECTED TAX INCREMENT = 5157,904
X
10% ADMINISTRATION
= $15,790.40
TIF ADMINISTRATION COSTS:
TIF PLAN (BDS)
$
4,700.00
TIF CERTIFICATION
S
50.00
TIF LEGAL (HOLMES & GRAVEN)
$
5,081.87
SUBTOTAL
$
9,831.87
jO b X1. 5 1
POTENTIAL TO TRANSFER TO DEVELOPMENT
FUND
PACKAGING COSTS:
CMIF, SBA, STATE (BDS)
$
12,289.53
PROJECT COSTS:
S u
LEGAL (WEINGARDEN)
e _`R \
TIF
$
243.75
STATE
$
1,580.45
SUBTOTAL
S
1,824.20
ENGINEERING COSTS:
OSM
$
837.57
TOTAL SUBTOTAL
S
14,951.30
\ S . 01
:OTAL
S
24,783.17
BUDGET:
ADMINISTRATION
$
15,000.00
PROFESSIONAL FEES
S
10,000.00
TOTAL BUDGET
$235,000.00
BOND ISSUANCE:
$120,000.00
NVON= 4 4067;
"'Qnt :2110 HRA i".iV 1'z 9:a
Cavy. s~a11
a=:• @r08Cway
F. Q. L z x t33A
Monticello. MN
Ra: Schoen Rvdave:ac.nant C:ntra::
Fcr All Laval Servicsz,Fercorec Th-,ough Darrmoer '31. 149e All Foi'Lam9
10/oli92 Phone call a-tn a!:tarnay re latter of Q,.:°
under ta'itnq re Schoen
1G/02;92 Prepara, intrao0Tics c•m�eran:a wish
Korooc:ak and make rsvislens .ra
letter of sincertakin;; phcna.:a,l.'
with 0 Weingirden rt Schwan doting
Tota.! Ear•3ic+Ra 1. 10, 9187..50'
Fur All Disuursaments as FciicWs;:,,
1./13%92 Parking expan,ae S. CO
Trt'a'; Dib6uriemen.ts: '?+'
TOTALTEESAND DISBURSEMENTS:
7
1 declare. unoer pwafty of tae
Ow We ammM claim w demand
Y W and Dome will smt no pari
Dttuhn/
CHARTERED
Re r@rb" Cab.. Ybraydb. Nei Well
f Tdep6rr �lu>TiLe
NVON= 4 4067;
"'Qnt :2110 HRA i".iV 1'z 9:a
Cavy. s~a11
a=:• @r08Cway
F. Q. L z x t33A
Monticello. MN
Ra: Schoen Rvdave:ac.nant C:ntra::
Fcr All Laval Servicsz,Fercorec Th-,ough Darrmoer '31. 149e All Foi'Lam9
10/oli92 Phone call a-tn a!:tarnay re latter of Q,.:°
under ta'itnq re Schoen
1G/02;92 Prepara, intrao0Tics c•m�eran:a wish
Korooc:ak and make rsvislens .ra
letter of sincertakin;; phcna.:a,l.'
with 0 Weingirden rt Schwan doting
Tota.! Ear•3ic+Ra 1. 10, 9187..50'
Fur All Disuursaments as FciicWs;:,,
1./13%92 Parking expan,ae S. CO
Trt'a'; Dib6uriemen.ts: '?+'
TOTALTEESAND DISBURSEMENTS:
7
1 declare. unoer pwafty of tae
Ow We ammM claim w demand
Y W and Dome will smt no pari
Dttuhn/
PROJECT COSTS
CITY OF MONTICELLO
FOR
AROPLAX CORPORATION
October 14, 1992
Business Development Services, Inc.
1991 TIF Plan �S 4,700.00
1991 Packaging S\2,705.78
1992 YTD Packaging $ 9„783.75
Legal Fees
1991 Holmes & Graven
Paul Weingarden $ 808.82
1992 Holmes & Graven S 2,292.25
Paul Weingarden
TOTAL $20,290.60
Approximate
Central Minnesota Initiative Fund
22.37 hours $1,677.75
Economic Recovery Grant
58.13 hours $4,359.75
SBA
17.25 hours $1,293.75
Business Plan
19 hours $1,045.00
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE
FUND (GMEF)
Statement of Revenues, Expenditures and Changes in Fund
Balance
For the Year Ended December
31, 1991
REVENUES
Appropriations -
1991 Liquor Fund
68-000.00
1991 UDAG vS
90,-0-60.00
Interest Income - Notes
10;-657.64
► 1 o o .
Interest Income - Investment
-0-
U, S, o c
Loan Fees
%—
-0-
o
UO O O
TOTAL REVENUES
$148,857.64
EXPENDITURES
Legal Fees S
-0-
Service Fees
310.00
Int. Expense - Fund Deficit In 1990
275.74
TOTAL EXPENDITURES
S 585.74
lExcess
of Revenues Over Expenditures
$148,271.90
FUND BALANCE - Beginning of Year
S201,733.38
FUND BALANCE - End of Year
$350,005.28
I v`T
(9 J40-) •.7. J
Sf17 J�
A V0
t•t.11
A.L
r
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY �� ali14L
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended December 31, 199X1_
REVENUES
Appropriations -
199a1 Liquor Fund 46 0
19911-UDAG 33,3vC.Lv a'•"""'
Interest Income - Notes }0863rd +,a�z�
Interest Income - Investment -0- 64.7y
Loan Fees -0- post-> iVS,7sl-Y
-rY-Pafr.'t{
TOTAL REVENUES $148,,86-7--64—
EXPENDITURES
Legal Fees $ --e--�"'
Service Fees 31g --9o7'""'
Int. Exertse = r -..9 C:: I i t i.. i ti 0- '- &r -?4-/ 7y
o.
TOTAL EXPENDITURES
Excess of Revenues Over Expenditures
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
"v9.'V
S-G•Bbr7d
$L4br2�3r90
5360-006-28
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GRE'ATE'R M0)NTIU;ELL0 ENTERPRISE FUND (GME'F)
Balance Sheet
December 31, 1991''
Cash in Bank
Notes Receivable - Tapper's Inc.
Notes Receivable - Muller Theater
�A. d••
Appropriations Receivables -
Ord g i na 1--Iri-quo r -bund
199T-iiyu—or n"d_
1991 UDAG
SIL '"a' __.
TOTAL ASSETS
ASSETS
Jx,p».71
Efi,-03a.:P. 93,'�� 9
CI,9L 7. aL
FUND EoUITY
Fund Balance
Reserved for Participation Loans
( (Economic Development)
TOTAL LIABILITIES AND FUND EQUITY
\J'_0' —
uL ?W" -
62,00000
f,r a$3-5.0-r0D5--29
C v--
QD Q 9,�
v d7, Le: - P
926A-A6b:2B
5�30...Dfl� y9Z Lev „J.