EDA Agenda 06-07-1993i AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Monday, June 7, 1993 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Ron Hoglund, Barb Schwientek, Bob Mosford,
Clint Herbst, Patty Olsen, Harvey Kendall, and Al Larson.
STAFF: Treasurer Rick Wolfsteller, Executive Director 011ie
Koropchak, and Jeff O'Neill.
GUEST: Lenny Kirscht, Business Development Services, Inc.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE MARCH 30, 1993 EDA MINUTES.
3. CONSIDERATION TO REVIEW THE H -WINDOW EXPANSION FINANCIAL
PACKAGE.
d. CONSIDERATION TO ENDORSE OR NOT ENDORSE THE ISSUANCE OF
"TAXABLE" GENERAL OBLIGATION BONDS FOR THE H -WINDOW EXPANSION.
5. OTHER BUSINESS.
6. ADJOURNMENT.
r MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
l Tuesday, March 30, 1993 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Ron Hoglund, Barb Schwientek,
Clint Herbst, Patty Olsen, Harvey Kendall, and
Al Larson.
MEMBERS ABSENT: Bob Mosford.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfateller and Jeff O'Neill.
GUEST: Jim Beyl, Custom Canopy.
1. CALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE JANUARY 27, 1993 EDA MINUTES.
Barb Schwientek made a motion to approve the January 27, 1993
EDA minutes. The motion was seconded by Harvey Kendall and
with no corrections or additions, the minutes were approved as
written.
3. CONSIDERATION TO REVIEW A PRELIMINARY AND FORMAL GMEF
APPLICATION FOR STEPHEN P. AND JOAN M. BIRKELAND, JR. dba.
CUSTOM CANOPY.
Mr. Jim Beyl, marketing manager for Custom Canopy, told EDA
members that the company was started 8 years prior by Its
owner, Stephen Birkeland, Jr., who was a steel builder.
Today, 99% of their business deals with gas stations, the
company has 16 distributors, their market concentration is
Minnesota and the Dakotas, and company annual sales have grown
from $350,000 to $2.5 million last year. Future annual sales
projection is $6.6 million. Major accounts are Murphy end
Holiday 011 with the potential of obtaining the Cenex account.
The company's future plans are to expand market areas, market
to car dealers, and to develop a aide business of flooding
Indoor ice arenas. The company's two competitors are in
Wisconsin and Ohio. The company has a turn -key operation
which designs, manufactures, and installs the canopies. They
own one flat-bed and three trucks. The relocation expansion
in Monticello will triple their manufacturing and office space
and future plans call for the potential of an additional
expansion in 2-3 years. The company employs six erectors, and
three shop and one office personnel in addition to Mr.
EDA MINUTES
MARCH 30, 1993
Birkeland and himself. Currently, full-time employment is at
six and seasonal personnel work 9.5 months a year. The
company plans to open accounts with local hardwares and gas
stations which totals approximately $20,000/$30,000 in annual
business.
Koropchak pointed out the initial GMEF request of $100,000 on
the enclosed preliminary application form and then proceeded
to review the enclosed Birkeland formal application for
compliance with the public purpose criteria and policies.
Recommendation was to approve a $42.500 GMEF loan at a 4.5
fixed interest rate, amortized over 20 years with balloon
payment in five years. On March 30, 1993, First Bank's
reference rate was 6.0% and the wall Street prime rate was
6.0%. As of March 26, Mr. Pat Dwyer, Bank of Elk River,
reported he was recommending the bank board approve 70% of the
appraised building and land value of $440.000, or a $308,000
loan at a 2% over prime flowing rate (current 6.0%) for 15
years. The amended leverage ratio from the enclosed agenda
information would read the bank is at 81.7% of the project
funding, the GMEF at 11.3%, and equity at 7.0% (or 62.5 % of
the GMEF) which complies with policy. An additional
amendment, the number of full-time and seasonal jobs at 37.5
hpw combines to an equivalence of 11.75 full-time which
complies with policy. Additonally, the EDA was provided with
a copy of the land purchase agreement, site map, letter of
bank approval, and executed Release of Information form.
With no further questions of Mr. Jim Beyl or Koropchak, the
EDA moved -on to agenda item a 4.
4. CONSIDERATION TO APPROVE OR DISAPPROVE GMEF LOAN NO. 006 FOR
STEPHEN P. AND JOAN M BIRKELAND, JR. dba, CUSTOM CANOPY.
The EDA having determined that the GMEF formal loan
application from Stephen P. and Joan M. Birkeland, Jr.
complied with the GMEF public purpose criteria and policies
and that the project would encourage economic development, a
motion was made for loan approval. Al Larson made the motion
approving GMEF Loan No. 006 for Stephen P. and Joan M.
Birkeland, Jr. The loan amount was set at $42,500 with a 4.5%
fixed interest rate, amortized over 20 years with balloon
payment in five years. The GMEF loan fee of $600 to be
collected and the GMEF approved loan to be disbursed at the
bank closing. The GMEF attorney fees are the responsibility
of the borrower. If the 642,500 loan is not disbursed by July
30, 1993, GMEF Loan No. 006 becomes null and void.
Collateral, guarantees, and other condition requirements to be
Page 2
EDA MINUTES
MARCH 30, 1993
determined and prepared by the GMEF attorney. Patty Olsen
second the motion, and with no further discussion the motion
passed unanimously. Loan approval was subject to total
funding approval, project compliance with the City zoning and
ordinances, and execution of the Private Development Contract
between the NRA and the developers prior to or on Monday,
April 12, 1993. The City Council will review GMEF Loan No.
006 for compliance with the GMEF public purpose criteria and
policies on April 12, 1993 which meets the within 21 -days
guideline. Chairperson Hoglund thanked Mr. 8eyl for attending
the EDA meeting.
5. CONSIDERATION TO REVIEW THE STATUS OF THE UDAG AND STATE
ECONOMIC RECOVERY GRANT ACCOUNTS.
Koropchak reviewed the enclosed UDAG and State Economic
Recovery Grant accounts with EDA members. The reports were
generated because of the concerns raised by both the EDA and
the City Council regarding future funding sources for the
GMEF.
The first funding source, the annual UDAG principal and
Interest payback of $27,971.40 began in January, 1988 and runs
through January, 2000. Todate, revenues from loan paybacks
and interest income - investment total $162,780.48.
Disbursements total $85,000 for an ending balance of
$77,780.48. The EDA questioned the 1990 interest income -
Investment of $3,562.62, as it appears to be small in
relationship to the amounts earned in 191 and 192. Koropchak
noted that the ledgers only reflect data which was entered
since purchase of tho city's computers. The UDAG payback is
available for GMEF funding if authorization is granted by City
Council.
The second funding source, the annual ERG principal and
interest payback of $29,801.40 began in December, 1992 and
runs through November, 1999. Todate. revenues from loan
paybacko total 87,450,35. With no interest income -
investment or disbursements, the ending balance is $7,450.35.
The first $100,000 of ERG payback is available for GMEF
funding without Council authorization.
The third and original funding source, the Liquor Fund has a
current balance of approximately 8280,000 which was earmarked
for the revolving loan fund and completion of the public works
building. This in accordance with a report given by
Administrator Wolfstaller to City Council.
Page 3
EDA MINUTES
MARCH 30, 1993
The fourth funding source, is the GMEF loan paybacks with the
first balloon payment due the Fall of 1995.
Additionally, Koropchak noted of the total $273,000 approved
GMEF loans, $188,000 was disbursed from the Liquor Fund and
$85,000 from the UDAG Fund. This to clarify the difference
between annual appropriations (meaning funds available) and
actual sources of funds used for disbursements.
Koropchak noted to EDA members that she has been contacted
regarding the potential of three BRE industrial expansions
either in 1993 or 1996, these in addition to new prospects.
Clint Herbst noted that City Council has concern that some of
the industrial businesses may have located in Monticello
without assistance from the GMEF. EDA members recognized that
with loan approvals, other spin-off investments are made into
the community. This is important, as well as, the increase to
the local job and tax base.
6. CONSIDERATION OF PROSPECT UPDATES.
Koropchak noted that three major industrial companies are
still considering Monticello as a site location.
7. OTHER BUSINESS.
EDA members agreed to cancel the April 27 EDA meeting. Next
meeting will be upon loan approval request or July 27,
whichever is first.
8. ADJOURNMENT.
Al Lareon made a motion to adjourn the EDA meeting. Second by
Barb Schwientek, the meeting adjourned at 8:25 p.m.
011ie Koropchak, Executive Director
Page 4
ORDINANCE AMENDMENT NO. 172 Cppy
THE CITY COUNCIL OF MONTICELLO HEREBY ORDAINS THAT CHAPTER 3, SECTION 2,
PERTAINING TO THE INDUSTRIAL DEVELOPMENT COMMISSION BE DELETED AND THE
FOLLOWING SECTION PERTAINING TO THE ECONOMIC DEVELOPMENT AUTHORITY BE ADDED IN
ITS PLACE AS FOLLOWS:
CHAPTER 3
ECONOMIC DEVELOPMENT AUTHORITY
SECTION:
2-3-1:
Creation
2-3-2:
Officers and Meetings
2-3-3:
Staff
2-3-4:
Functions, Powers, and Duties
2-3-5:
Limitations of Power
2-3-6:
Budget and Annual Report
2-3-7:
Modification
AN ORDINANCE OF THE CITY OF MONTICELLO, WRIGHT COUNTY, MINNESOTA PROVIDING FOR
THE CREATION OF AN ECONOMIC DEVELOPMENT AUTHORITY.
WHEREAS, the City Council for the City of Monticello (herinafter referred to as
the "City") has the authority to establish an Economic Development Authority
(hereinafter referred to as the "Authority") pursuant to Sections 469.090 to
469.108, inclusive, as amended, (the "Act") of the Minnesota Statutes; and
WHEREAS; all due process requirements for the establishment of the Authority,
including the public hearing, have been met; and
WHEREAS, based on all information present, the City Council hereby finds that
the establishment of an Economic Development Authority is in the best interest
of the City.
NOW, THEREFORE, THE COMMON COUNCIL FOR HE CITY OF MONTICELLO DO ORDAIN that an
Economic Development Authority to be known as "the City of Monticello Economic
Development Authority" is hereby established pursuant to Sections 469.090 to
469.108, inclusive, as amended, of the Minnesota Statutes which Authority shall
operate according to this ordinance enacted pursuant to the charter of the City
on the following terms and conditions which shall be adopted as the By-laws of
the EDA.
2-3-1: CREATION:
(A) The Economic Development Authority shall be composed of 7
members to be appointed by the Mayor and confirmed by the City
Council.
(B) Two of the members shall be members of the City Council. The
terms of office of the two members of the City Council shall
coincide with his/her remaining term of office as a member of
the City Council.
Ordinance Amendment No. 172
Page 2
(C) The remaining five (5) members shall be initially appointed for
terms other than the terms being served by a member of the City
Council. Those initially appointed, including Council Members
serving on the EDA, shall serve for terms of one, two, three,
four, and five years respectively and two members for six
years. If the two Council members appointed to the EDA have
Council terms that coincide, then their terms of service on the
EDA shall also coincide. Thereafter, all commissioners shall be
appointed for six-year terms, except that any person appointed
to fill a vacancy occurring prior to the expiration of the term
which his/her predecessor has been appointed, shall be appointed
only for the remainder of such term. Upon the expiration of
his/her term of office, the member shall continue to serve until
his/her successor is appointed.
(D) All members shall serve at the pleasure of the City Council.
Vacancies shall be filled by appointment by the Mayor with the
confirmation of the City Council.
(E) The City Council shall make available to the Authority such
appropriations as it deems fit for salaries, fees, and expenses
necessary in the conduct of its work. The Authority shall have
authority to expend all budgeted sums so appropriated and
(� recommend the expenditures of other sums made available for its
use from grants, gifts, and other sources for the purposes and
activities authorized by this resolution.
(P) A Commissioner may be removed by the City Council for
inefficiency, neglect of duty, or misconduct in office. A
Commissioner shall be removed only after a hearing. A copy of
the charges must be given to the Commissioner at least 10 days
before the hearing. The Commissioner must be given an
opportunity to be heard in person or by the counsel at the
hearing. when written charges have been submitted against the
Commissioner, the City Council may temporarily suspend the
Commissioner. If the City Council finds that those charges have
not been substantiated, the Commissioner shall be immediately
reinstated. If a Commissioner is removed, a record of the
proceedings together with the charges and findings shall be
filed in the office of the City Administrator.
2-3-2: OPPICERS AND MEETINGS:
(A) The Authority shall elect a president, vice president,
treasurer, assistant treasurer, and secretary annually. A
member must not serve as president and vice president at the
same time. The other offices may be hold by the same member.
The offices of the secretary and assistant treasurer need not be
held by a member.
Ordinance Amendment No. 172
Page 3
(B) The Authority shall adopt rules and precedures not inconsistent
with the provisions of the ordinance or as provided in Minnesota
Statutes, Section 469.096, and as may be necessary for the
proper execution and conduct of the business. The Authority
shall adopt by-laws and rules to govern its procedures and for
the transaction of its business and shall keep a record of
attendance at its meetings and/or resolutions, transactions,
findings, and determinations showing the vote of each memeber on
each question requiring a vote, or if absent or abstaining from
voting, indicating such fact. The records of the Authority
shall be a public record, except for those items classified by
law as non-public data.
(C) The Authority shall meet at least quarterly. Special meetings
may be called by the Chairperson as needed.
(D) All administrative procedures including contract for services,
purchases of supplies, and financial transactions and duties
shall be outlined in the By-laws of the Authority.
2-3-3: STAFF:
(A) The Economic Development Director shall be designated as
Executive Director of the Authority.
(B) Subject to limits set by the appropriations or other funds made
available, the Authority may employ such staff, technicians, and
experts as may be deemed proper, and may incur such other
expenses as may be necessary and proper for the conduct of its
affairs.
2-3-4: FUNCUONS, POKERS, AND DUFIES:
(A) Except as specifically limited by these provisions in Section 5
of this Ordinance, the Authority shall have the authority
granted it pursuant to Minnesota Statutes 469.091 - 469.107, or
other law.
IB1 The Authority shall manage the Greater Monticello Enterprise
Fund (the "Fund") the purpose of which is to encourage economic
development by making loans to private businesses. The EDA
shall make loans to eligible businesses and such loan(s) shall
serve a public purpose as defined in the Greater Monticello
Enterprise Fund Guidelines (Fund Guidelines). The Fund
Guidelines are hereby adopted by reference and included in the
By -Lawn of the EDA. No Changan to the Fund Guidelines shall be
made without approval of the City Council.
(C) The Authority may be a limited partner in a partnership whose
purpose is consistent with the Authority's purpose.
Ordinance Amendment No. 172
Page 4
(D) The Authority may issue general obligation bonds and revenue
bonds when authorized by the City Council and pledge as security
for the bonds and the full faith, credit and resources of the
City or such revenues as may be generated by projects undertaken
by the Authority.
(E) The Authority may cooperate with or act as agent for the federal
or state government or a state public body, or an agency or
instrumentality of a government or other public body to carry
out the powers granted it by the act or any other related
federal, state, or local law in the area of economic development
district improvement.
(F) The Authority may annually develop and present an economic
development strategy and present it to the City Council for
consideration and approval.
(C) The Authority may join an official, industrial, commercial, or
trade association, or other organization concerned with such
purposes, hold reception of officials who may contribute to
advancing the City and its economic development, and carry out
other appropriate public relations activities to promote the
( City and its economic development.
` (H) The Authority may perform such other duties which may be
lawfully assigned to it by the City.
All City employees shall, upon request and within a reasonable
time, furnish the Authority or its employees or agents such
available records or information as may be required in its
work. The Authority or its employees or agents may, in the
performance of official duties, enter upon lands and make
examinations or surveys in the same manner as other authorized
City agents or employees, and shall have such other powers as
are required for the performance of official functions in
carrying out the purposes of this Resolution.
2-3-5: LIMITATIONS OF POWER:
(A) The Authority may not exorcise any specific powers contained in
the Act, or Minn. Stat. 462, and Minn. Stat. 469.124-469.134
without the prior approval of the City Council.
(B) Except when previously pledged by the Authority, the City
Council may, by resolution, require the Authority to transfer
any portion of the reserves generated by activities of the
Authority, that the City Council determines are not necessary
for the successful operation of the Authority, to the debt
service fund. of the City, to be used solely to reduce tax
levies for bonded indebtedness of the City.
Ordinance Amendment No. 172
Page 5
(C) All official actions of the authority must be consistent with
the adopted comprehensive plan of the City and any official
controls implementing the comprehensive plan.
(D) The sale of all bonds or obligations issued or levying of taxes
by the Authority shall be approved by the City Council before
issuance.
(E) The affairs of the Authority shall be limited to promoting the
growth and development of commercial and industrial concerns in
the City of Monticello.
(F) The Authority must submit administrative structure and
management practices to the City Council for approval.
(G) The Authority shall submit all planned activities for
influencing the action of any other governmental agency,
subdivision or body to the City Council for approval.
2-3-6: BUDGET AND ANNUAL REPORT:
(A) The Authority shall prepare an annual budget projecting
anticipated expenses and sources of revenue. The Authority must
t follow the budget process for City Departments as provided by
the City and as implemented by the City Council and Mayor.
(B) The Authority shall prepare an annual report describing its
activities and providing an accurate statement of its financial
condition. Said report shall be prepared and submitted to the
City of Monticello by March 1st each year.
2-3-7: MODIFICATIONS:
(A) All modifications of this ordinance must be in written form and
must be adopted in accordance with the charter of the City.
adopted this 10th day of April, 1989.
us, Mayor
Rick Wolfe�yeller
City Administrator
JLU 1-07— 93 11011 14:12 I D: BDS 1110. TEL 110: 786-9034 13987 P02 —
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Business Development Services. Inc.
MEMORANDUM
TO: Monticello Fmnomic Development Authority
FROM: Lenny Kirscht, Community Economic Development Specialist
Patrick Pelstring, President
DATE: lune 7, 1993
SUBIBC'P: H-Wf1VDOW COMPANY
On May 23, 1993, we had the opportunity to meet with representatives of the H -Window
Company and 011le Koropchak to review the progress of the company to date and their one year
and 3-3 year expansion plans. Representatives of the ownership from Norway attended this
meeting, and the purpose wu to review the company's future expansion plans.
ne company Mpnsntatives outlined that they have reached a point where their business is
experiencing steady, positive growth. Their one-year expansion plans involve doubling the size
of the f illty, or adding 23.000 square feet. In addition, they will be acquiring an additional
5650,000 of new production equipment. H -window's 3.3 year plans potentially will require up
to 200,000 square beet of manufacturing space.
The company outlined that they currently have several viable options for accommodating their
long -tern goals both within and outside the area. They hove also been approached by a number
of netighboring sates.
Based on the company's current situation, and the difltculdes they experienced with state
firimiq at their start-up In 1987/88, we recommended that the City develop a very aggressive
inoentive financing package to facilitate their immediate and long-term expansion In Monticello.
Through the powers of the Economic Development Authority (EDA) and the availability of TLX
increment Financing. we respectfully request the EDA's consideration of the attached financing
structure.
1494-07-•93 r01 1-1:12 1D:BDS 111x_, TEL 10:786-903.4 -1987 P03 • --�.- -•
June 7, 1993
Page 2
We aro purposing that the Monticello BDA Issue General Obligation Triable TIP bonds to be
used m first secured financing for construction and equipment financing. Udlising the City's
favorable band rating, we anticipate that the bonds could be issued at an effective rate of 7.1
Percent. These funds would be lent to the company with a .S percent override, or 7.6 percent,
yielding monthly 'administrative' funds to the EDA of 5400/month (+/. x4,800/year).
In addition, we would propose that the City/EDA seek State of Minnesota participation in this
project with $500.000 of low-interest, subordinated financing. These funds would be received
of a grant to the City and subsequently lent to the company. As an Incentive to create Jobs, the
company would ruelve $3.000 of forgiveness for every job it creates. Based on company
projections, 60 new jobs us to be created resulting In forgiveness of $300.000.
ADA/CrTY BOND iiNANCI tri
The Issuance of `taxable' general obligation bonds for the benefit of private business is a
mMvely new, but growing phenomenon in economic development financing. Through the
pledge of the tax increment, a City/EDA no longer requires a referrendum for the issuance of
these types of bonds.
The decision to use this method of financing requires careful Nought. The use of the City's
general obligation pledge requires o very high level of confidence in the financial performance
of the company. In this can, the H•Window Company has several factors in its favor, which
would suggest consideration of the bond financing.
First, the original construction was financed entirely out of equity, and there currently is no first
mortgage holder on the property. The City/EDA debt would take a first mortgage position, with
a IM -to -collateral value at 40.43 percent. This amount is very conservative, by even traditional
landing stsutdards.
Secondly, the H -Window Company Is relatively new in the United States. The sales have been
gra" significantly. and the company appears poised for additional, Impressive growth. From
an opmdon standpoint, however, the U.S. division has accumulated a deficit retained earnings.
It is the strength, however, of the Norwegian parent. which adds the financlal strength to the
ttsnuetion. We have not reviewed their statements in detail, at this stage. It has been
suggested. however, that the strength of the parent company could easily support this transaction
from a 'credit' standpoint. The guarantees of the principals and the parent company would be
required.
R01-07-93 1.01 14:13 I G: At�S 111C. TEL I uD: 7g5-903.1 U99 7 PO4
June 7, 1993
Page 2
As a result of thele two factors, the City/EDA should fate little, if any, risk from the
transection. The principal advantage for the company would be the ability to seem the
munhdpal bond market for lower fixed-rate financing. The pledge of tax inpremant and the use
'of the State financing has the net effect of reducing the company's overall cost.
USK OP TAX DMI RMENT FINANCING
We will treed to daxrtif� pan of the current TIF district at the mar wall of the existing building.
At this point, we propoan to txeate a new district over the new construction associated with this
yarn projea.
Our ottslytth suggests a new annual increment of approximately S27,OOWyear. Our structure
a,; M using $20.000 of the increment to "write-down- the annual debt service due Atom the
oor>spany. The resulting 'net• effective fixed Interest rate associated with the overall debt would
be 5.15%. Tire bslmoe of the increment, +/- $7,000, would be used for administrative
Asnatiotu or to offset future land acquisition costs for the company.
The use of TIP, in this rase, is designed to "writedown' the interest rate costs, and provide
WdiftW seouflty for the bond.
We tecoIINset that this Is an unusually aggressive finance package. but feel it Is critical to
saeuring the lag -term presence of the N•Window company in Monticello. We are also seeing
an increasing number of EDA's pursuing this mechanism as an economic development toot.
We look forward to diseusaing this information with you in greater detall and receiving your
Lqut and direction.
POTENTIAL SURPLUS
TIF DISTRICTS
12/](192
OF YEARS LEFT
TO COLLECT nF
REVENUE
0
le
I
1
19
20
1
0
7
7
7
7
0
0
DIST 1
OIST 9
DIST 3
01ST 4
01$75
COST 0
DIST 7
{,11,07 0
DIST 9
GIST to
0191 11
0131 12
0131 t3
DST 4
'
D7
METCALF
I'm
0012
CONST.5
RAWMANCE
NAWCO
MSP
TAPPER
REIY01 LE
YARTIE
AROPLNI SWNDOKE
tMUROAN
LARSON
NAC70NE
TERMS
CA" 9.10.
(DIAtu)
123,192
915.017
452.020
1199.223
cm."
192,171
100,011
902,127
1900
901991
40,055)
({5001
610.74
(P."z
6,,,091
"849120,
Esl,—tw ru1u,9
TIF ROrI„VI
'
19976 o97t„0
00
9720,010
952.019
SMA/)
41A30,t,0
11.232.020
1t$4.792
8.0.030
1179.390
0,95,0.'0
020.209
$,WAS,
10
4100,040
$412,0.510
r1IfU,I Oad PMR4
,0970 o.Tmb
to
8.01.170
931.3"
11841150
1.'24.31,
9521,905
1135,702
022,b90
1200.210
9277,010
111,500
1105397
90
0107.050
92,424,059
PN✓,091 9.0.6
(EMItW) by Fi,o
d Cut, Da11cl
115.017
1201,051
1107,095
Ql/1,716)
11,0",200
1010.001
171,0.71
9111927
113,177
(919.275)
11,010
1111/2
(91,"7)
90002
17.211,075
TIFOIST.WKt; 02 -Apr -93
Jt91-07—'93 I -ICU 14: 14 t£,:865 Its_, TEL 110: 7%—'4334
H -WINDOW COMPANY
Monticello, Minnesota
LCES OF FUNDS:
Equipment
C 1151ruadon
Sine improvements
Wotddteg Capital
Cowhalisod taoeaeat
Fwancias cow
TOTAL USES OF FUNDS:
SOURCES OF Fk=:
Equity - Warldng Capital
BDA - Q.O. TIP Bond (7.691;, 20 Years, Iat REM)
State of Woneaota (396, 20 Years, 2nd REM)
(Forgivewaa will be requested ® $5.000/job created)
TOTAL SOURCES OF FUNDS:
s 630,000
875,000
30,000
400,000
60,000
_ 40,
S2275.000
S 400,000
1,175,000
500.000
1
TTM INCLEMENT FINANCING RFV N t
Maftmt Value Estimated at 23/S.P. x 25,000 S.F. + $373,000
1993 Tax Capacity Rate - 1.07327
Taxable Basis - (396 Is 100,000 Market Value) + (4,7% It Balance)
3,000
f32.32i '
23,325 x 1.07327 = $27,180 Annual Tax Increment
DEBTS RVICG:
Mondoello BDA
$ 9,340
Stam of Mianeaots (Assumes creadon of 60 new jobs)
1.320
MONTHLY DEBT SERVICE:
S 10,860
ANNUAL. DEBT SERVICE:
$130,320
Lou: TIF Revenue
(20,000)
NET DEBT SERVICE:
$110,320
Average Cost/Square Foot (including Equipment)
$4.41IS. F.
Net Effective Interest Rate
3,15%