EDA Agenda 09-13-1995AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHORTTY
Wednosday, September 1:1, 1995 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Ron Hng]nnd, Vice -Chairperson Sarh
Srhweintek, Assistant-Treasurcr Harvey Kendall, Clint
Herbst, Tom PPrrau]t, A] M1arson, and 6111 Domokalos.
EDA STAFF: Rick Woifuteller, TrPaeurer
011ie Kornprhak, Executive DJructor
GUEST: Jim Harwood, V,:r.tor Tuul A Mfg., Inc.
I. CALL, TO ORDER.
2. rONSTDERATTON To APPROVE THE JULY 25, 19c)5, F.OA MINUTES.
.1. CONSIDERATION TO REVIEW FOR APPRnVAT, THE PRELIMINARY AND
FORMAL GMEF APPLICATION FROM APPLICANT, VECTOR TnnL A MFG.,
INC.
4. CONSTDP.RATTnN TO APPROVE OR DISAPPROVE GMEF LOAN No. 010 FOR
VECTOR TOOL A MFG., INC.
5. CONSTDERATTON nF AN UPDATE RELATING TO THE CLOSING Dnr11MENTR
FnR GMEF T,nAN NO. 004 FOR THP, H WINDnW rnMPANY.
R. nTHRR BUSINESS.
7. ADJOIIRNMENT.
AtRutos
MONt_16ELLO FChNOkIC DEVEJAUKE5ft A6THOitift
Tuesday, July 25": 1665,
Cjty. He],].
'AtHikii.-S ORE-SEift: -6fiairperson - Rn - n , Hoiglund,.VU6.- Chairp6rwin Barh
Schwiento k, Assistan t TiGia-urer,. Hervey
Rendall, Clint -Herbei, Tom T4r"l-t, :Al'
tarsnn, and'.4113 6amealos.
-!.,011'1e K6r1i&hik,-:Exedut1ve Dfiectde.
STAFF ASSFUT. Rick Wolfatoller, TrowaurAr.
GUEST: John Babcock,'H-Window Company.
I. CALL TO ORDER.
ChadrVerson Hoglund'. called the EDA meet:InU to order,at-7:00,
21. -;CONSIDERATION _TOSAPPROVETHE-MARCH 7, EDA MINUTES.
'4ar&,dchwlont*_U__made a motion' to sppr_6_v4- the March, is§'C
EDA -mJn%ito9'.- .93 Garson, second6d -the motion. -and , _wfth no
corrections or aAdft-lons, the moil-6n'.9sesoid" 6=0-t.. Yang:
Hoglund, 'Schwie kbnd624, Periaul - t,,'Larson, 6nd,Pemetulca.
,"k
Nalvii., None.- *I*Qtll�luno; Clint Herbst:, not pr-ebefit on M^i,ch'7..
S. conrb&Afidxlfn F()1kAP_VR-n-VAL 'THE•SP.Cnwm , PFIRT94MINARY
.AND PINAT. OMEF APPLICATION FROM APPLICANT, .:THEH-WINDOW
COMPANY.
John Shbdbck 'ot thi H-WiWalbui C6tininy 04-potte'd, the original
facility was complextod in 2,087, and thn expansion comli-IdU4 fi)
1063/94'.- Soth -44148' and' .pr'd_tlti I a hav'ris 'J'n-pr-dasid and, th4'
co"'Pany 16 'Urp-w'S'ng 'CR-Ot - Sixty pipr6ont, 6f itlfd ipi;vl . its 'were in
the ii6imerbldl marlt . et,; . howavqr,, th-4 rtsidOntl , *1 market,Is
ex - j - APOUDd 'to-bo-com'o. atrangor, _t4lth ihe d6al-gh, of .8
end_
nd' ,the '61.de - alrack, winj6w'. Aft, of ;the. %51 'manufacturing
ng
am' d' t r n"i.i of, a
,,Plovrs,�nrlo fujl�Utifa Ahdi'166 eoeo.n -g co
a ton
o .crow.; RIVht4an-ipeoplit are Aepli�yjeo 40 the off_ICQL
!FDA'OM . EP - - loan applirailriff-of Juno 12,,
1998i frnm-1.b-H-WIndow •c0mpany and the financial -analysis
'Or!apakefi, tlY PPO:
PA04 1
EPA MINUTES
JULY 25, 1995
4. CONSIDERATION TO APPROVE OR DISAPPROVE GMEF LOAN NO. 009 FOR
THE H -WINDOW COMPANY.
After EDA members determined the $50,000 loan application from
the H -Window was in compliance with the GMF.F public purpose
and policy, Barb Schwientek made a"motion to approve GMEF Loan
No. 009, an equipment loan, to the H -window Company. The loan
terms were set at a 5.0% interest rate amortized over seven
yoars; loan fee at $750; legal fees the responsibility of the
applicant; loan becomes null and void on January 25, 1996; the
GMEF arid SCERG to share a first position; collateral,
guarantees, and other condition requirements are to be
determined and prepared by the GMEF attorney; tho GMEF loan
approval subject, to SCERG closing; and loan disbursement from
the UDAG Fund. Al Larson seconded the motion and members
restated the rationale used in determining the loan term and
rate.
With the H-Window'e request for an interest rate of 5% over 10
years, the EDA determined the reduction of the term length
from 10 years to 7 years was the greater henefit of the two
GMEF provisions: loan term and interest rate. The 7-yoar
amnrtizatlon hrings the request Into compliance with the GMRF
' provision (personal property generally 5-7 years) and recycles
the GMEF dollars faster. The EDA members felt to additinnally
impose a higher interest ratio places an additional stain on a
husiness during critical periade. Critical periods were
defined as first five yeare of a husiness startup or during
expansion and fast -growth. This was the rationale used for
Approval of the 5% intermst rate rather than the guideline
provision of 6.75%. Noxt, the approved lnan supported the
EPA's philosophy and tho. IDC's Business Rratention and
F.xpanelon Program which oneourage existing lndustrlsl
buslnessee to expand in Monticello. Lastly, the EDA
recognized the H -Window expansion Miro more than doubled the
property's estimated market value and has increased the local
employment by 15 eince its 1994 application.
Koropchak reminded EDA membera that the City Council an August
14, 1095, will review the lnan approved by the EDA. The
Council may reviirse s derislnn of the FDA if the, Cuunnil
determines the loan was twsued in violation of the GMEF
Guidelines+. The motion passed on n 7-0 vets. Staff will
rcaquest quarterly financial statoments for the first two -years
to mnnitor the financial poNitioli of the roal,any and for the
necaesity to renew the Letter of Crwdit.
tPage 2
EnA MINUTES
JULY 25, 1995
5. CONSIDERATION TO DISCUSS THE EDA BUDGET AND LInUnR FUND
APPROPRIATION FOR RECOMMENDATION IN PREPARATION OF THE CITY
1496 BUDGET.
After reviewing the halancco of the GMEF and other sources of
funds, Harvey Kendall made a motion requesting a $100,000
appropriation from the Liquor Fund for 1996 City Budget
preparation. This to secure tho longevity of the GMEF. It is
anticipated the nee of the revolving loan fund may increase
due to Legiolatnrs placing additional restrictions on the tine
of TTF and the Council's reluctant to use TIF hecause of the
HACA Penalty. Rill Demeules senonded the motion. EPA members
felt the GMEF encourages growth from within and agreed that
the EDA's intent is a payback to the Liquor Fund. The motion
passed unanimously.
rONSTDERATION TO AMEND THE GMEF GUIDELINE PROViSTON: LOAN
RTZE.
Koropchak, explained this item appears on the agenda because
the TSC suggested using a "percentage" of the revolving loan
fund balnnc,: for the annual approvalldisburacment guide. It
was believed the IDC may he confusing thv annual Liquor Fund
Appropriation of $,200,000 with the revolving loan fund halancc
of upproximatoly $430,000. The IDr was roncPrncid that the EDA
have the flexibility to approve more than the 501w max of the
remaining balanro of the $20n,nOO in a given year if for
example four excellent application were received.
KornpFhak and Wolfetellor rocnmmendesd, "A minimum of $5,000
"nd a maximum of $100,On0 per Inan approval. All loan size
approvals auhjont to available funds of the revolving loan
fund twlance or not to exeied 501; of the remaining revolving
loan fund balancp." The intent Of rho loan size provision was
a guide to the question asked by mnnt husineaer•s "What to t.ho
maximum amount of dollars avid leble from the OMEP?" EDA
members felt Koropchak and WulferAlier'e rRrommendation would
2nek in the- dollar amount and prohdbit the EDA from approving
a greater than 5100,000 loan. Nit ac;t;ion wap tNken by the EDA.
7. nTHER RtISINB4t•
Nine.
Pays 3
EDA MINUTES
JULY 25, 1995
8. ADJOURNMENT.
The EDA meeting adjourned at 8:00 p.m.
o�YN(nv��
0111P Koropchak, Executive DirPrtor
P:4Uk- 4
EDA AGENDA
SEPTEMBER 13, 1995
3. Gonelderation to _revluw_ for _approval _ the itreliminary- _and
m
formal_GMEF_a�plicattnn__fruapgll_ - Vector Tuul_& Mfg.,
Jim Harwood or Brad Burger, Vector Tool 6 Mfg., Inc. will he
prveent at the EDA meeting.
A. Roforence and Background.
GMEF LOAN REQUEST:
$50,000 real estate loan, amortization over 20 years, hallnun
In 5 years.
PROJP,CT SUMMARY:
Vector Tool & Mfg, Tnc. (VIM), a Minnesota Corporation,
foundod in 1988, is a high-tech jot, shop machinlot compony and
Ito mayor eustomnt• to Warner Corporation.
VTM currontly leapee a fanility In Maple Grove and hart
dotermined it neoda additional spaco to accommodate Increasing
production domando.
Currently, the corporation to mad.) up of three partnern with
equal Nharcu of otonka however, only two of tho parttiors are
nffiat:rs. Tt to the Intont of Burger and Harwood to buy-ont
the third tiartner. It has heed suggested that Saryor and
Harwood eHrahlish a partnorship for Convtruntion and ownership
of the proposed facility with a 3eae0 to the corporation, Vile
provides a cleaner financing tatructure.
Barger and Harwood, partners of tho enrporation, and the
Monr,ieollo HRA havA agmed on A purchase prlre for Lot fi,
Block 3, DIP, and as a result, the partners are conoidering
relocation to Mnntiefillq. The HRA puhlit3 hearing fur the
acquJoitlon anA dA?pQia]tinn of the raw lande7 and-1410ptif)n Of
tin resolution annveying the raw land was continued to
September 14, 11,195. in July., the Inc Prnpprr:t Toam tonrod
their cxl:tttng facility in MaplA 0rnvi.
The part•ner8 propotto tp couwtruot an apt+ruximato la,Onn at,l ft
metal f:atil.lity, lmludlny A 17,000 wq rt m�utuCanturing err•,,
coin A 2,000 mq ft offivo area. Thr; fw,•llity will at.cnmmndatV
VTM'ia gt•uwtlt Moody awl will .tlwu provtdt� for Pnturvo exp..n;aion.
41 t,, lui:tt'iutl lis a R.4 .ti re l,art:el .it rtwi,6 from Statui.tr,l Iri,n
on 11nI111.IH Ru.a-1.
PAU.- t
EDA AGENDA
SEPTEMBER 13, 1995
Existing full-time empinyment is 20 with projentions of hiring
an addition 72 full-timn wnrkers within two years. weighted -
average wage/benefit is $12.00 per hour.
The proposed uses/sournoo of funds for this projent are
eatimatcd as follows:
liges of Funds
Land $ 96,000
Site Tmprovr•mentc, $ 45,000
Building Construction y-42 o0n
TOTAL USES OF FUND. $46-4,000
Suureves of Fends
Equity (Land write, -dawn) $ 63,000
Marquette Rank, Monticullo $300,000
(20 Yvw, maturity an year ton-, lot REM,
1-5 9.25%, R-10 Wall Street prime 4 1/216)
GMEN (6.76%, 20 Years, balloon year $ 50,000
five, 2nd REM)
CMIF (6.75%, 20 yenre, balluon yoar $ 50,000
44 sevon, 2nd REM) _
�► TOTAL SOURCES OF FUNDS $463,000
Ausuming the 9.,25% bank mortgage rate over the 1-5 year term
of the financing, the Associated monthly and annual debt
Hervice cnato are ae followy:-
Monthly _0/9 Annual -D/A
Rank $2,-748 $33.458
OMEF $ 280 $ 4,62A
CMTF $ 3Rn $ 4,0129
TOTALS $8,508 $42,710
Thio projoet would he 6truutured dH it particlpat.iun butwon
M.trtlnotto Batik Montkollo, the 11MEF, and rhe' CMIF. The
V.irtuNro would document their expenuPQ ote100Ciated with
cunatruoti,ii, of thu facility and "draw duwn" fun&& arcurdingly
through the" t:ltlu company. Tho loana would be ioucurod by the
retail erit,etw, guinrdntoo.N. and/or an mitwtUnmeant of the' laaaei.
PrVjrLt cotnatructinn .ira Ht lunlulNrl to CUMMellit t- by Ontubor IA,
1(Igl9 fur t-umpIYtWit Ile rrmbear 81, 1WN—
cPages 2
"
EDA AGENDA
SEPTEMBER 13, 1995
CREATER MONTICELLO ENTERPRiSE_FUND _LOMEF)_GUIDELINES
PUBLIC PURPOSE CRITERIA: Mubt Comply with four tit mote of the
criteria lintud below; criteria si
being mandatory.
1. r;re.,itea new jobs: 20 Immediate new (37.5 bpw) jobs, 12
additional (37.5 hpw) joht3 within
two years. Average weighted
wage/benefit, $12.00 ph.
2. Incruases the (:omm11njty tax base: Annual Rstjmatod
Markot VaItie:
$320,000 or Annual
Estimated Tax
Capacjty valuu,
$13,120.
3. Factors: Assist existing industrial husjness to
relocate and expand their operations.
The rompanylu bue.inevo onvjronment menta thn
Citylo in,3untK.IAI ubjoc:tIvrrs: nature? of
business, warvice anti product, no adverso
environmental offents, the comprehennivo plan
and zonit+g poliny.
A Conditional Uan Permit fox, a €+tall, anile,
and drivwway doolgn was sip rovAd by the
Planning Cnmmi,3slon of S^ptembor 5, 1995.
i. Itt+c:d ea a uwc:ontlary t+ouri.o to oultplAmont + wtvc ntir,t�.+I
finatwing3 Approxjm.atrly 6r,% of this tot -41 fi'liani:lal
pack.kjjv It. fjitanc:t'd by ., 14,103+1v
Itn+titution (Marguorre Battle Mont ivellu).
T)w OMEF W13 J :+h,,ri* ee�,'c3nr4 i,u+3i t i,+t, with
tho Central Mtna+-biut.t Initiativ,a Fend
(CMIF) cot the ri-.+3 vwt.ttit mnrtij.cvo.
.tN gap fin.+nr,jnv• tha,rd ata v.+l+ f1n,t11t;inv (Wot> Ih-m
It A l,+:l+,w) wt+,9 rt#+ au lneintivt•
tU vni;cuc.+v,� i��vtnnmlc
dt=vu I ultmat+t .
R. tltterd to attwl14t other fundal: 01hi, v wt,urco" 41f fund's
1114+•11 111 A11ILItJa1t to Ihi•
nMEr .Ire Ihee roll tr.cl
Mlnnwxuta lttitjAtjve. Fund
(CMTPI, NRA l.anil writ,
ditwit, and Lily t,.tnk.
Page► A
EDA ACENDA
SEPTEMBER 13, 1995
GREATER MONTTCET.i.r ENTERPRTSE FUND POLICIES
T. SUSTNESS ELIGIBILITY:
Inrh>fltrJul busine.so: Yrs,
Lncatcd within city limits: Yee, Zonod I-2,
Crt-dit worthy existing hueinnnn: Aa eobmittorl by public,
Resource Group.
$10,000 loan per each inh created, or $5,600 ps:r every
$20,000 in property market valuation, whichever highest:
$320,000 or $RO,000, respoct.ivPiy.
Recomtendation: $50,000
IT. FINANr.TNC METHOD:
Companic)n D1rert Ln.ln: All mnnh loana may be
subordinated t::, the primary lender(a) if rnqueKted by the
primary lendur(a). Thu rMEF is levr_r.ngrd and the lower
interi,:it rata of tbm rMEF lowors the effootivi. interest
rato Uu the entire proj,•et.
Recommendation: Tho CHIM and CNEP ahem a eocond
pooltion.
m. USE OF PRC)rEFnR
Real property devulupmont..
I.V. TERMS AND CONDITIONS:
boat4 Size: M.+NSmUht not ro A019 Oc t1141
rpmaltiUU OMRF balonv&4. rMEF
Appropriation ilalanci:. !R#pt,-mbvr 6, 1995,
$350,000. LtIan rotluklMt, ;50400.
R+,MAining ()MFF halauc,„ $#nn,nnn.
Rocommandation: $50,000.
trant. 4
EOA AGENDA
SEPTEMBER 13, 1995
Leverartjin3: Minimum 60% private,/public non-GMEF.
Maximum SO% GMEF. Minimum 10% cCtptjty of
GMEF loan.
Marquette S306,000 (64.8X)
CMIP S 5a1,000 (10.8%)
GMEF $ 50,000 (10.81A)
Write-down (Equity) $ 63,000 (13.¢16)
( 100%)
Loan Term: Real estate property maximum of 5 -year
maturity amurtlretl up to 30 yearn.
Balloon payment at 5 years.
Recommondatfon. Amortization of 20 years, balloon
payment in 5 years.
Intereut Ratty: Fixed rat,,. not loon than 21K below
Mlnnrapnlin prime r.itu. Prlxi.. rat: per
NItinnai Rink (Fivut Bunk) of Minneaptiilu
on date of ZDA loan approval. (Pr•jmt, 11
13 95, A.75%)
Rocommondationt 6.75% fixod Interest rate.
�s
Loan Fora, Minimum feo of $20n but not to excooa
1.5% of tho total loan project. Feed dru
to be doc:umvntod atttl no {lupl.tnation of
f-]otl botwt;on thtl londlnU institution and
tilt! GMEF.
Recoamiandatlont $50,000 R .015 - $750.
Prepayment Polivy- No laert.tlty for prepayment.
Dofyrral of Plymuntu: 1. Approv.0 of thn EDA
momberahilt by majority vote.
2. Extend the ballotwn if unable
to refinaltr«t, vt•rjfit.ltlnn
latter from two Iot01ns)
3flotitot iculit wultjAt:t to P14 1.4
approval.
1utort•ut lintltatictn un puarantvpd lnanw•
!tulhjifet to wtv ot•tty atui/or roviow41 fly BDA.
Awt+umold l l ty of loan • Nun,•.
Peylt• 9
EDA AGENDA
SEPTEMBER 13, 1995
Business Equity Roquiremento:
Suhjnct to type of Inane Board of 01recture will
doturmine case by rase, analysis under normal
le,nding guidellnee.
Rased oti the above recommendation of a Shared
occnnd position, thr, land write-down 1s troatt•d a"
equity at 13.61:.
CO 11.1t:Ot',1: Mortgage deed», .3ururttiaii, andlor
guaranties a» per the GMRF attorney.
Recommendation: A shared second position on the real
estate mortgage and personal guarantees.
Ntm-Pi•-rformance: Thin approved 1131,1917 luau shall hucome
null and void if fund;+ art, not drawn
upon or dlahurncd wtthin 1130 doya
from the date of FDA apprnvai
(Septomhor 13, 1995). Rull and Vold
March 13, 1996.
GMEF Legal F,aeam Ri`tiponoit) iItty of On GMRF
appl i r..10t .
R.
Rrtc[.mmonrlatinn,_
Rrrommendation le to reviow the orad ooeil Information
i,rior to EDA meeting for dj6t,.uauion and potontiul
queationo. Ccinultle"tion to approve or diiaapprovu CMEF
No. 010 is the noxt aUonda itOm.
C.
supportin7.nat•a-,
1..
Copy of the prt®11minavy appltcatl0n fur 11101RP.
P.
ropy of the prollminary Rink Commitment Lottur.
9.
Copy of RnA, Inc. Financial rrialit Attalym310.
4.
PRenuted Authoriz�it:ipn Rulea:ief-
.5.
Company Widal ial Rtatcm,rntr (0n file.)
Pr,rthr(Im.l m1i1,.
1.
rf,py of the Pnrt.hatJO .iu,l Rrdyv,1101)mietit rutltr.rot hrtwwurl
tho HRA :aal RarijPrlHarwnud.
2.
Copy of thn EHtim.Ati,l Rui.ldlny r1l4tti.
;1.
Ropy air tbo rnrpuratc+ Rtrtnlutiumi.
4.
rr,py of thr Ar•ti„L•r+ of inrut•porat furlJRy Law",
!i.
tlthi rte.
GnArrm P'.ONIIC' w Mr.- PRISE
250 EAST BROADWAY
MONTICELLO, MINNESOTA
PRELIM111ARY APPLICA-nCN FOR LOAN
,A139LICAb1T: James Harwood and Bradley Barger
FIPH OR TRADE NAME: uorrnr Tnel wnA Manufacturjna, Inc.
BOSINESSADDRESS:jAn-71�—rit.lrial RQaA )jan.1o,C,Trnvp. MN 55369
(0 a Street) (C1r1 s State) (Zip Cote)
TELEPEWE: BUSINESS ( ) 612-428-2923 BC1E ( ) 612-295-5735
DATE ESTABLISHED:__Vrtnhnr 19RR EMPLOM I.D. 1: 411628711
SOLE PROPRIETOR XXX CORPORATION PART:IERSBIP
NANAGeEMWr
NAME TITLE OWNEWRIP
I—AQ ::Ar41Mnrl President 33.38
Rradlcv RaraPr CFO 33.311
PROJEC LOMTION: Monticello Industrial Park
XXX NEW BUSINESS EXISTING BUSINESS
TOTAL PROJECT COST WrIMATE: S 463,000.
PROPOSED USES: REQUEST:
LAND S 96,000. AMOUNT Of LOAN sD.oeo.
EXISTrw BUILDING MA2URITY a mvm
�.nw.cw�aaON v2�.nnn_ RECUZ= Amoritize•20 yr.
MACBINERY CAPITAL APPLICANT'S Balloon 5 y r .
IP1G CAPITAL EQUIT2 63.000
OM Sit�mp8 na nnn UW PURPOSE Land Acquis
TOTAL Architect Fees
PROPOSED BEGINNING DATE: October 15, 1995 Site ImprovementA
EBTST`IAT'..D C0101LE TON DATES nnrpmhor 11 t9Q5
TITLE TO
PRO. ASSETS TO BE BELD BY: OPERATING ENTITY ALTER ECA
PA1RTICIPATn1G LENDER: Marquette Sank Monticello, MN 55362
(Naar! (Aootala)
Bill Endres (619 295-2952
(Contact hereon) (Telepnone f1
PRESENT 1 Of CTLOM: In PROJECT i Of E EMSES 32
ADot=ONAL PIWECT INFORMATION:
APPLICANT IIGNATIM:C// � ' — DATE Sla- D:—
v
MARQUETTE BANK 295,4277 Page 2 Job 817 Aug -28 Yon 19:28 1995
V. Marquette Bank
Mondceuo_-
ALI&MA 16.1995
Jim Ilarwood
Brad Barger
Monticello, MN 5536I
Dear Sin:
1 am pleased to :uhisc you that hlargttelte Wok, N. A. (-nw Dank-) pnW,,tcd to vacnd to Jim 1 LIIMad
and Umd Darscr ('nnrrouct").
COMMERCIAL RF.AI. CSI'ATI! CREDIT FACILITY
1"rhe CommuntcnC) fur the mtmntetiou and pcunancnt financing of a crnnmcrcial budding to house
Vaxtor Taal A Mint0outiog upon the terms and std+jeet to lw cundkiuns sct forth hclmr
1, 'Tota Antuuul ppd Term of&mmilnKn4 $J1tlt,tlll(1.lA1
2, Reca)JOCI1t: 20yrar monthly principal and inicrcxt nnuutvntian
Maturity on )ear ten
3. Interest Rqt Cnlculatio And,prymetg: Your Ito year 5.9.23!:: )Oar 0 to yent 10 -Wall Slrccl
Jouutal Primc plus 112%. Interest Mail bu calculated on the actual number of days cLipwd In it year of
160 days.
1. Cmnmtlmcnt Fc_ C�Ru1.11ion at r n ; Il2laSI,SW.uu)
S. gmrill: First position real euatc nlaripipR and miiiy aguRnuml untiviryf fixtures on commercial
building to be located in llikuood Indusuial Tank
6. Cuar,Tp(ec: Jim N.tmnod personally and Ond Ramer pereonally
7, j rypdillom 1 Cenlmhmctg: The hormoer sad the Dank shall cxmute and deliver de0nithn lain
dtaumcnis in font mol subpame ealitfitclory to the Wuk, huhutinSuithmu limitation (a) acledil
agrmenctit containin8 reptpcnLltiullf allll narranuce b) the Ilunuwct. w%ula im of lw Ilorrmtcr And
exems ordcrano and rentedta Mhwh are ttandtrd rat cicdu agtccmcmc orlhis uatnrc, tnclnding
Mnhna limitation the Iinrltci.d on mann set forth tit tithu)ulc A lwton, (h) a promissory nolo
ecidaeing the adxattccs umlcr the Commitment and red titch other dnctanents as the ilio► may divas
necesury or dctirubhc, nod advance} unciet the ('onnutlmenl shall tv toltdmoned upon cxuupli.mcc by
the Rorrpwcf orall applicahle closing and Other colulnnm cont,nud in euh such document,
Office 10 MIaYp11 Has, N �.
�- taPWO5V111 7Anw cthnlgll
Monucsae. AIN fent MAMRMM, MN G1q,2
►ltotw 1/ 12) Isl-If52 IMSM (612) 2912x32
M&Wj Gdbw: rr0, w fit, MWOCOM. MN G=
MARQUETTE BANK 295,0277 Page 3 Job 617 Aug -28 Yon 16:28 1895
Parc 2
August 16. 1995
A. Miscellaneous: The Qwtinvcr dull pay all coxes, rocs and out-of-pocket expenses paid or incurred by
the Bank in ennnection with the ptcparrtion, execution and dcliycry of all Iron dnamxnts, wheilter or
not the definitive dactimenis aw executed and dcliycad or any advances under the Commitment arc
made, ioeltatuy, uttltuW hiniLmon all fees and ouiof•pocka cxlwnxts of counsel for the flack. Said
obligations shall survive the tetnunloon or expiraliun of this cummitmeni leticr.
9. f'ttrpo$ of this litter. Thu eommnmenl letter is for discussion pttrposes only atd dull ruA be dcenKd
in evidence a binding agreemctu on the pin of either the nark or the Itorroucr, inipoiLust tetnts
rcmaiu in be negotiated and ata, dagicemcnl in principal should he rcatltud on the terms of the
financing at a ulgcyucnt date, neither pony to the rttunetng dtuuld be reached an the tcrrm of the
financing at a tubsoquem data either piny to the ftnatuutit stall be legally hound until the dclimuvc
dm,utimu have been sipncd by the respcciitc panics, pnnidal, Iwitetcr, that by acceptance twtatf,
the Borrower shall be bound to pay the eosu arW expenses scl fonh.
If the foregoing terms are acceptable to yak please mdwne your acceptance an ilia emInscd copy of this
eomositnem letter said maim the copy to us. Upon o=ipt of stah written acceptance, wt shall begin to
picliare the Iron docunicnis. nwh a-mmatice is tun ntctxsd by us by Scptctuticr 16. 1993, chis
emntidutwnt Icucr will expire, and in any oval this eotnmunicut letter shall expire al Jaya frum today.
Sissccrcty.
MARQUI 1-1-C BQ
AANK. N. A. - MONTICFIJ
Fly Lot%.4-. 404.n/
William J. Ladies
its vitt PresidetttNtwntss Boalttas
Accepted this _ day of . 1995
Jim I latsiood
Itrod Barµ►
MARQUETTE BANK 295,4277 Page 4 Job 81;7 Aug -28 Mon, 16:28 1995
f)
Schedule'A'
Jim Ilarwuod
Brad Barger
conuniunrnt l:cucr•
Conditions
1. (7cbt Service cash flow of Va'tor had A Mfr„ mquited (An 1251.4 (tannings bdom interest. tacq,
deprcckaion and antortvation divided by priru:ipal mMl inicrco)
2. Collateral - maximum loan rill cul caned 75%orappiaixv iAuc
J. '1'cfm - 5yatr "call" pho Itank will haic the option to ask rur.paymcni in fell at the end orypr tire)
4, Vocumctuation muircnterrts
A. Title Insurance
A. Enviiatimcni assessment ( P_ base nne")
C. Assignmetn of leve
D. Vuc on sale clause
E. "As uuili' and final appizisal,
F. Caisirtutiion itatemenl
G. Ardu'iw aniReation
11. Public buildiug petmils: etc.
C
I � i
y
MONTICELLO
250 East Broadaav
P.O. Box 1147 AUTHORIZATION RELEASING INFORMATION
Uonticello, MN
55362-Q245
Phone: (612) 295-2711
Metro: (612) 333.5739
Far: %!) 295.4404 Norwest Bank of Minnesota NA Attn: Mona Krueger
Name of Financial Institution
8041 Brooklyn Blvd.
Street
Brooklyn Park, MN 55445
City State Zip
I hereby authorize any person to furnish to the Monticello Economic
( Development Authority, 250 East Broadway, PO Box 1147, Montirello,
Minnesota 55362, any and all financial records, reports,
statements, or other documentation or information In their
possession regarding: James Harwood
Developer's name(s)
17500 Weaver Lake Dr. Maple Grove. MN 55369
Developer's address
Upon presentation of this authorization or an exact copy thereof,
you are directed to permit the personal review, copying, or
phoLostating of such records, information, and evidence and provide
same to the Monticello Economic Development Authority.
1, the undersigned, acknowledge the said above information may
become public.
This authorization shall be valid
the entire term of the loan. 'A�`^ -
Datod:.�-3/
4uthorizod Slgnaturo
One copy for each principal of a
partnership or corporation as
well as the ontlty'1Lsolf.
250 East Broad%vav
P- 0. Box 1147 AUTHORIZATION RELEASING INFORMATION
Monticello, MN
55362-9245
Phone: (612) 295.2711
Metro: (612) 333.5739
Fax: (tea) 295.4404 Norwest Bank of Minnesota, NA Attn; Mona Krueqer
Name of Financial Institution
8041 Brooklyn Blvd.
Street
Brooklyn Park, MN 55445
City
State Zip
I hereby authorize any person to furnish to the Monticello Economic
Development Authority, 250 East Broadway, PO Box 1147, Monticello,
t Minnesota 55362, any and all financial records, reports,
statements, or other documentation or information in their
possession regarding: vnrrnr Tpni r afg Tnr
Developer's namois)
18071 Territorial Rd. Manlc Grove, MN 55369
Developer's address
Upon presentation of this authorization or an exact copy thereof,
you aro directed to permit the personal review, copying, or
photostating of such records, information, and evidence and provide
same to the Monticello Economic Development Authority.
1, the undersigned, acknowledge the said above information may
become public.
This authorization shall be valid
the entire term of the loan.
Dated: Xr�7/� 7r 37"
Ono copy for each principal of a
{ partnership or corporation as
v well as the entity Itself.
Ahertz �n.a
J
MONT'CE1.LO
250 East Broadwav
P. O. Box 1147 AUTHORIZATION RELEASING INFORMATION
Monticello. MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333.5739
Fax: qd:) 295.4404 nrwncr R F n c • nJA Dr
N a�k n Ki to Mn it rucge•-
Name of Financial Institution
8041 Brooklyn Blvd.
Street
Brooklyn Park, MN 55445
City State Zip
I hereby authorize any person to furnish to the Monticello Economic
Development Authority, 250 East Broadway, PO Box 1147, Monticello,
Minnesota 55362, any and all financial records, reports,
statements, or other documentation or information in their
possession regarding: Bradley D. BaropK
Developer's name(s)
105 Mississippi Drive Monticello, MN 55362
Developer's address
upon presentation of this authorization or an exact copy thereof,
you are directed to permit the personal review, copying, or
photostating of such records, information, and evidence and provide
same to the Monticello Economic Development Authority.
I, the undersigned, acknowledge the said above information may
become public.
This authorization shall be valid
the ontir.o cterm of the loan.
Dated: !J �J�—
thorizod ignaturo
One copy for each principal of a
4 partnership or corporation as
well ns Lho entity itself.
EnA AGENDA
SEPTEMBER 13; 1995
4.. Cons idcratIntlto approve or rl_isapprav_r. GMEF Loan No 010 for
++
.+ llcant, V.•:ctpr Tunl & Meg. , inn..
A. Referenr.,,_anti Background:
Fullowitig discueolon of the preliminary and formal GMEF
application for Vector Too] & Mfg., Inn..; the EDA ie askQd to
consider approval or dleapprnval of the recommended $Sn,0n0
OMEF I.o:an. The applicant requested terms of a twenty ypAr
amortization balIooneel In r, years and did not rAelueut an
interest rate term.
FirRt, the EDA needo to duteemine if the GMEF loan application
from Rarger and Harwood will encourage eamomJe dcvelnpmp.nt,
and that the proposed Vector Total project and application
complies with the GMEF putelic purpoee rrlta3rl.a and palir.ies.
Sucondly, with the aof-4umption the prujr,rt apll]1ration complfen
with the puhllc purpose rr.iterla .and jolicies, the EDA mur+t
dt:turmine the: amount» of the l,s:aia, interest. rate and term:;,
service Find logal fees, Anel regilired equity. Additionally,
the EDA must. 110termine noceet+avy rollateral or :any other
cunrll t.lons.
F(
It 1t7 !luuU.,ated that ,rho approved $50,000 he dishursod i'rom
the+ Liquor Fund Appropriation acnount.
B. Alt+•rnative Actions.
1. A motion to Rpprrav+i CMEF Loan No. 010 for Vocitor Tuui R
Mfg, 'Lit:. Lnaaa amuutat and Tomei au rerluvotceit $60,000
for real catato Ar a 6.75% Fixed inter•ewt rite aamorr..ieed
OVOr 20 yt:car& l,.r.l.la(sn In flve years, thiril l,oe+iti<fa,.
.2. A motioh to AI)prowt nMEB t.o"n Ny. 010 tpr Vr etor TO()I 0
Mfg, Ise. Loan mmount ind tvrm,+ .+6 rertemmendt-d: $80,000
fair ra.Ri e•,+sataf at a 6.75fi fix, --,I Ietr�rvwt rat(, am,�rrizvd
OVOr 20 'yee;ar:i, tedllnot) In fivo y4.arg, sh.41,4',el a3e'1jitn0
ptlai t luta with CHIP.
A a otltara t'u ,1piereev0 tIMPIP 1,041' No. 010 for VOrt,tur Tuul &
Mfg., Inas. Loara :am.+nnt. :anal Ivrmm .aw peer rho, yuidrlinon.
$411,000 for real votme :at r 6,76% fixed int.oruut r'ato
.+Mnrtizol eavor 20 ye:.4r4. Is"lluu+a in fiv.. ya.ars, third
polallion, .411t1 05,000 tomb .•efuity.
tPay.• 1
FDA AGENDA
SEPTEMBER 13, 3995
4. A motion to approve GMEF Loan Nu. 010 Cor the Vector Too
& Mfg., Inc. Loan amount and torma as determined Ly thu
EDA.
S. A motion to dis.+pprove GMEF Loan No. 010 for Vector Tool
& Mfg., Inc.
C. Staff Reeommendation__
Assuming the EDA determines that the proposet9 project complies
with the GMEF public pnrp000 criteria anti policies, staff
recommends Alternative No. 2. Rouever and It Is ray
understanding, the cMIF Board will consider approval haHr•d on
the request from the applicant for a CMIF oercond poAition anti
the GMEF third pouit.ion. CMIF will require more equity In the
projoct if the CMIF amd GMEF share a A�rnnd position.
If the GMEF Is in third pneltion, the vecosendatlan I&
Alternative No. 3 requiring d lot cash equity ao per tho GMEF
leveriryt• prnviwlnn. The land -write down lo riot haued un a Tax
Inurement Guarantuo or Anseosmunt Agreomont; only, .i Joh and
W.tg,: Convcnnntu.
,k D. Sulpotrtlnql Data -
copy of the GMEF Approval Form.
Paye 2
APPROVAL OF
GREATER MONTICELLO ENTERPRISE FUNDS
BY
ECONOMIC DEVELPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Preliminary Loan Application Approval. AuRust 31, 1995
Loan terms negotiated and agreed upon Developers submitted application
betweeen the developer, the lending to CMIF with CMEF in third
institution, and the EDA Executive Director. position. Other terms agreed.
Formal Loan Application and Financial
Statements analyzed by the lending
institution, BDS, Inc. or city staff.
Building and Site Plan Preliminary and/or
Final Review.
Building Permit approval or construction
commitment.
Marquette Bank - solid deal.
PRC analyiet to be submitted.
Conditional Use Permit approved
9/5/95. No comment from City
Eng. and no building plane
--- - -_ . ?!s;95
Loan documents reviewed and/or prepared
by the City Attorney.
ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL:
LOAN NUMBER CHEF Loan No. 010 LOAN APPROVED
BORROWER James C. Harwood and Bradley D. Barger dba Vector Tool 6 Meg., inc.
ADDRESS 18071 Territorial Road. Maple LOAN DISAPPROVED
LOAN AMOUNT Grove, MN 55369
RATE DATE
TERMS
FEE
A motion was mads by EDA Commissioner to
(approve - disapprove) Greater Monticello Enterprise Bunds in the
amount of dollars
and cents to developer
this day of Seconded
by EDA Commissioner
YEAS: NAYS:
GMEB disbursed 19 __ by Check No.
LDA Treasurer
Disburse funds from the Liquor Appropriation Fund
CITY COUNCIL MAY REVERSL AN EDA LOAN DLCISION WITHIN TWLNTY—ONL
DAYS OF CDA APPROVAL. Scheduled for Council review on September 25. 1995.
GMEF Approval
Page 2
ACCEPTANCE OF TERMS
I (We) hereby accept the terms stated above as approved by the
Economic Development Authority in and for the City of Monticello.
DATED
EDA AGENDA
SEPTEMBER 13, 1995
5. Considara_tion of an update relating to thFl rinning documents_
for GMEF Loan -No.- 009 Eur the N -Window Comapny.
Rr-ferenrc and Barkurnund_
On Augugt 14, 1995, the City Council ratified the EDA'a
approval for GMEF Loan No. 009 as 1,tr the out]Jnrd terms and
conditiona out by commiuslon members.
As part of the Grant Agrrrmont with the State of Minncsnta a
$300,000 Letter of Credit from the Christiana Bank of New York
to svenire the state and GMEF Inane in to he JsAuc.d. 7n
addition, the GMEF loan requtred a Perannal Guaranty.
Previous to Steve Lemme resJgning from the H WJndnw Company,
hr had agreed t.o hr the guarantor.
Ill,nn reviewing the nlovIng dorumentH with Knut Flakk and John
9.0hrnrk thio hnrame apparent. Mr. Lumine would no longor he
the guarantor. Adminiutrator Wolfuteller agrnPo with tho
19:4nance of a Irr(,vorahly Lott --r of Credit to thy• City of
MontJrnllo and the Economin nevolopment AuthnrJty fur an
amonnt of $300,000, the r,MF.F Perannal Guaranty need not he,
required. The Letter of Credjt JH for a time period of .at
�i lr�.+et threuyh December .11, 1997. A rur•porate Gu.rrantoe frum
�►. tht• North AmerJcan Window Company Ja roqulred by the Grant
Ag rn43mont .
floes the EDA have, any prublemm with the elimination of the
Perannal Guaranty rerl0 red for the GMEF?
P.�y�• 1
t \,Phone (612) 295.2952
ty
COP r Metro (812) 332-2952
j,h
tato
Bank
P. O. Boy 729. Monticello, MN 55382
May I, 1991
Ms. 011ie Koropchak
Economic Development Director
City of Monticello
250 East Broadway
Monticello. MN 55362
Dear 011ie.
It is my intention that, after reading this letter, you will understand
the current status of William and Barbara Tapper's loan(s) on their
commercial property located in the Oakwood Industrial Park. Upon
completion if you should have any questions please call and I will attempt
to fully answer your concerns.
The building's construction was performed by Bill Henning and Company with
help from a number of subcontractors. Presently, Wright County State Bank
does hold some retainage in reserve and these funds are due for work yet to
eT be completed. The loan funds were disbursed during the construction process.
These disbursements were approved by Bill Henning - General Contractor, Bill
Tapper - owner and Philip Broussard - Tapper's architect, on a signed and dated
'application and certificate for payment' form. Apparently. Bill Henning
and Company has not paid all the subcontractors for work and material provided.
This is evidenced by the mechanics lions currently on the property. Bill
Tapper. Dale Lungwicx - President. and 1 have met regarding these unpaid bills
and we arc formulating a plan on how to resolve the situation. I have
purposely not mentioned specific dollar figures because Bill Henning and Company
are not fully cooperating in disclosing these numbers to us.
I will try to keep you apprised of the situation and encourage you to maintain
communication with the bank and with Bill and Barb Tapper.
Thank you.
Sin
1
Kevin E. Doty �\
Vice President
YKP.D/cw
"THE BANK 0! PERSONAL SEAVICE."
QUESTIONS FOR EDA CANDIDATES
March 7, 1995
NAME OF EDA CANDIDATE
1. WHAT SOLD YOU AND YOUR FAMILY TO RELOCATE TO THE CITY OF
MONTICELLO?
2. WHAT IS YOUR PHILOSOPHY WITH REGARDS TO GOVERNMENTAL
ASSISTANCE OF PRIVATE BUSINESS EXPANSION AND RELOCATION
EFFORTS? WHAT IS THE PROPER LEVEL?
3. WHAT DO YOU FEEL YOU CAN CONTRIBUTE I'0 THE EDA AND CITY OF
MONTICELLO? (AdminieLration of Guidelines. Analysis of
Bu6lri1 SG Plane, etc.)
4. DO YOU HAVE SPECIFIC IDEAS ON HOW MONTICELLO SHOULD DEVELOP IN
TERMS OF INDUSTRIAL, COMMERCIAL, AND HOUSING DEVELOPMENT? HOW
SHOULD THE GMEF FUND BE USED TO PROMOTE DEVELOPMENT?
5. PREVIOUSLY YOU RECEIVED A COPY OF THE GMEF GUIDELINES, WHAT
IDEAS DO YOU HAVE FOR IMPROVING THE GUIDELINES?
QUESTIONS THE: CANDIDATE MAY HAVE OF THE EDA COMMISSIONERS OR STAFF7