HRA Agenda 09-02-1998
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 2,1998 - 6:00 P.M.
City Hall
Members:
Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger,
Darrin Lahr, and Dan Frie.
Council Liaison:
Brian Stumpf.
Staff:
Treasurer Rick Wolfsteller and Executive Director Ollie
Koropchak.
Consultant:
Mark Ruff, Ehlers and Associates.
6:00 P.M.
1. Call to order.
2. Consideration to review the financial statements of the HRA general fund and TIF fund.
7:00 P.M.
3.
Consideration to approve the January 7 and August 5, 1998 HRA minutes.
4. Consideration of adding agenda items.
5. Consideration to adopt a resolution amending the bylaws of the HRA.
6. Consideration to approve a resolution adopting the modified plan for Central Monticello
Redevelopment Project No.1; and establishing TIF District No.1-25 and adopting the plan
relating thereto.
7. Consideration to approve the private redevelopment contract and the extended low-
income housing commitment agreement between the HRA and St. Cloud Hospital
Corporation.
8. Consideration to approve the private redevelopment contract between the HRA and Blue
Chip Development Company.
9. Consideration to call for a public hearing for lease ofthe HRA property located at 3
Walnut Street.
10.
Consideration to accept a counter-offer for the property located at 225 Front Street (Rich
and Marian Carlson).
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Agenda
Monticello Housing and Redevelopment Authority
September 2, 1998
Page 2
11. Consideration to review the appraisal for the property located at 218 Front Street and
authorization to proceed (O'Connor).
12. Consideration of interest to purchase the property located at 313/317 West River Street
(Snell).
13. Consideration of a proposal for development of a community identity and marketing
strategies and for HRA co-sponsorship.
14. Consideration to review the request for economic development funding of the proposed
1999 budget of the City Council.
15. Consideration to review the first draft of the proposed TIF Guidelines.
16. Consideration to authorize payment of monthly HRA bills.
17.
Consideration of executive director's report.
18. Consideration of committee reports:
a) Community Center - Bob Murray
b) MCP - Steve Andrews
c) Marketing - Darrin Lahr.
19. Other business.
20. Adjournment.
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HRA AGENDA
SEPTEMBER 2, 1998
2. Consideration to review the financial statements of the BRA General Fund and TIF
Fund.
A. Reference and Background:
At the HRA meeting in August, the direction given by the commissioners to HRA financial
consultant, Treasurer, and Executive Director was to prepare comprehensive cash flow
statements and projections for the HRA General Fund and TIF Fund through the life
duration of the existing districts. Additional information requested by commissioners was
what constitutes pooling dollars, restrictive funds, and non-restrictive funds, etc.
With the unavailability of the 1999 tax capacity values from the County at this time and
end-of-summer vacations, Mark Ruff will compile and prepare the information for
submittal at the 6:00 p.m. meeting.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 7,1998 -7:00 p.m.
City Hall
Members Present:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin
Lahr, Bob Murray, and Dan Frie.
Council Liaison:
Roger Carlson.
Staff Present:
Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. Call to order.
Chair Brad Barger called the HRA meeting to order at 7:10 p.m.
2.
Consideration to approve the December 3 and December 10. 1997 HRA minutes.
Darrin Lahr made a motion to approve the December 3, 1997 HRA minutes. Dan Frie
seconded the motion and with no corrections or additions, the minutes were approved as
written. Yeas: Lahr, Frie, Andrews, and Murray. Nays: None. Abstention: Barger, not
present.
Dan Frie made a motion to approve the December 10, 1997 HRA minutes. Steve
Andrews seconded the motion and with no corrections or additions, the minutes were
approved unanimously as written.
3.
Consideration of adding items to the agenda.
None.
4. Consideration to accept the Purchase Agreement between the HRA and Irwin Hawkins.
225 West River Street.
Kacey Kjellberg, real estate agent for seller Irwin Hawkins, presented a counter-offer of
$57,500 "as is" for the property located at 225 West River Street. Kjellberg noted the
assessor's value for payable '98 had risen to $55,700. The original HRA purchase offer
was $50,000 "as is". With no advanced notice of the counter-offer price, Darrin Lahr
made a motion for the HRA to take the counter-offer of $57,500 "as is" under
consideration. Steve Andrews seconded the motion and with no further discussion, the
motion passed unanimously. Kjellberg understood the need for consideration and noted
her phone number where she could be reached the next day.
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HRA MINUTES
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5. Consideration to approve the Private Redevelopment Contract between the HRA and
EEF Properties. Inc.
In December, the HRA approved TIF assistance in the amount of $400,000 for
demolition and relocation costs associated with redevelopment of the Monticello Mall,
thereafter, the first draft of the Private Redevelopment Contract was prepared. The
annual tax increment to be split equally between the developer and the HRA over 15
years. Brad Johnson, representing developer Barry Fluth, submitted an updated uses and
sources statement requesting the approved $400,000 assistance be increased to $600,000.
Johnson stated the soft cost estimates of $1.2 million included a reduction of$235,000
from the initial estimates. Construction, relocation, and demolition estimates total $3.6
million for a total project costs of $6.8 million. In order for the developer to receive a
rate of return of 11.9%, Johnson requested TIF assistance in the amount of $600,000 at
7.5% interest rate over 20 years or an annual tax increment of $56,907.
HRA members were comfortable with the 50/50 split of increment. Brad Johnson felt the
assessor's estimated market value of $3 million was low and suggested the developer
would take the risk gambling on a higher EMV and classification rate reductions.
Financial Consultant Ruff agreed that a higher EMV was not a great risk for the
developer. Andrews expressed his concern that the HRA be indemnified by each tenant.
Negotiations continue with the tenants for relocation and business acquisition. Questions
relating to tenant buyouts and relocations need further clarification. The restaurant owner
(tenant) has not decided whether to stay-in-town, he indicated he was not glued to this
town.
Lahr expressed the need for the HRA to retain the fust $45,000 for other downtown
improvements and his interest to retire the mall debt as quickly as possible. Frie agreed
and added that the HRA liability issue be researched and resolved. Darrin Lahr made a
motion to increase the approved $400,000 TIF assistance to an amount not-to-exceed
$500,000 for demolition and relocation costs associated with the redevelopment of the
mall, the HRA retains the first $45,000 of annual available tax increment, and authorizes
legal counsel and consultants to finalize liability, relocation, and buyout issues
associated with the redevelopment project. Bob Murray seconded the motion and with no
further discussion, the motion passed unanimously.
6.
Consideration of an update relating to the proposed National Guard/Community Center.
Public comments: Doug Franks submitted a petition to the HRA. The petition included
568 signatures of registered voters of the city of Monticello asking for a referendum vote
on the proposed new community center and city hall. The signatures were gathered over
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HRA MINUTES
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the holidays and Franks felt many more signatures were obtainable if not for vacations.
The issue is not opposition to the proposed project but voters/tax payers have no "say" or
VOIce.
Scott Douglas expressed concerns relating to the proposed site of the community center
in relationship to the Fire Hall site. The Fire Department concerns are safety issues
associated with increased vehicle and pedestrian traffic along Walnut and 5th Street.
Jeff Burns, Little Mountain Feeds, was in favor ofthe site. He saw the community center
as an asset for the business community and the youth. The community center at that site
encourages a 6,000 sq ft expansion to his existing facility.
Franks noted he had heard the Becker Community Center had reduced hours, staff, and
management as it was running in the red. His family has utilized the center; however,
didn't buy anything else in Becker. Additionally, he noted the likelihood of the
community center to be in competition with some local businesses notably the health
club. The proposed facility is intended for banquet space not conference use.
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HRA Attorney Greensweig informed commissioners that the square footage and
financing options of the enclosed Preliminary Development Agreement between the
HRA, City, and Armory Commission are no longer consistent with the updated
information received this evening which will be adjusted accordingly. With the HRA to
construct and operate the armory and city facility, it is important for the parties to begin
establishing their rights and responsibility. The agreement is written so it can be
terminated any time prior to ground breaking as outlined on page 3 of the agreement and
the intent is that all parties agree to negotiate in good faith. In the meantime, the
agreement allows HRA staff to continue details and talks; yet, is not an all-term binding
contract. HRA commissioners asked if they say "no" to the preliminary agreement,
what's next: No lease revenue bonds and the city and NG negotiate. If they say "yes",
pursue lease revenue bonds and move ahead to City Council and public meeting and
explore other funding revenues such as sales tax, etc..
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Jeff O'Neill gave a brief history relating to the first development ideas for a community
center which began in 1995 and the momentum accelerated in June 1997 with the
National Guard's interest in joint shared-space. With the need for additional city hall
space, the plan to redevelop the bulk tank sites, and the implementation of the
DowntownlRiverfront Revitalization Plan; a task force was formed to research and make
recommendations relating to the proposed site thereby meeting the National Guard's time
frame of September 1997 and to recommend community center design options: Core
facility only, core plus water, core plus water and ice. AKA, Inc. was hired by the City
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HRA MINUTES
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as the architect for the community center following presentations by several architectural
firms to the task force.
Michael Schroeder, Hoisington Koegler, the consultant hired for development of the
DowntownJRiverfront Revitalization Plan told of the numerous commwrity meetings held
in the process for development of the Revitalization Plan. The Plan addresses the history
of the downtown and Broadway and the plans to integrate I-94 to the river via Walnut
Street. The Plan identified the civic core along Walnut, 5th Street, and the railroad. This
site the largest undeveloped site within the downtown area. Schroeder noted the
capabilities of the seven plus acre site: The identified civic core in the Plan brings
pedestrian traffic to the downtown and redevelops an under-utilized area. Schroeder
noted the site did have some limitations.
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The AKA consultant informed commissioners of working with the task force which is
made up of 8 to 10 user-groups which toured various community centers. The consultant
described option one: The core facility to include space for the city hall, National Guard,
senior center, gym, walking track, youth, and wheel park. Option two: Core and water.
Option three: Core, water, and ice. The task force favored option two with the ice to be
phased-in later. Preliminary design plans concentrate on the community center as the
focus point with an easterly attractive main entrance and approximately 40 parking spaces
along Walnut and the southerly point as a drop-off with approximately 35 parking spaces.
Additional parking to the west. The Liquor Store and Farrell Gas sites are not part of the
community center site. The facility would consist of multi-levels, some areas 25-30 feet
to accommodate the aquatic, gym, and walking track.
The consultant felt the water was necessary in order to create "mass". Mass generates
user/membership fees and revenues, and brings energy to the center. A core facility alone
has no members and no revenues. Ice pays for its self, generally break-even on
operations. No market study has been conducted of user fees in the metro or Becker as it
relates to population, number on annual passes, rates, and family income levels.
Community policies vary as some communities see a community center as a service to'
the community and other communities view it as a for-profit enterprise. Chaska used TIF
for construction and have daily and membership fees for single and family members,
residents and non-residents. Residential family memberships are between $200 to $250
annually. Mayor Fair said the task force saw the need for space and for multi-purpose use.
They initially identified four sites and noted the need to designate access points into the
plan much as is done with the Minneapolis Convention Center. Additionally, Mayor Fair
indicated the existing city hall and senior center would return to the tax role.
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HRA MINUTES
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The National Guard spoke of its essential space needs and the willingness to commitment
$1.5 million into the shared facility. The NG had three site options: One, an industrial
site. Second, shared space with the school district. Thirdly, shared space with the city.
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NG viewed the Walnut street site as an urban site with infrastructure in place. They liked
the Walnut site but defined the site as tight noting site and construction planning is
critical for development.
O'Neill defined the community/NG center as the highest and best use for the Walnut site,
consistent with the concept of the revitalization plan and serves as a catalyst to generate
users. Environmental clean-up if any would be city project costs.
AKA estimated construction costs of $7.3 million and acquisition, site prep,
contingencies, etc. at an additional $3 million for a total project costs of $1 0.5 million for
the core and water facility. Revenues generated by the water were estimated at $625,000
and operation expenses at $665,000 for a deficit of$40,000.
HRA commissioners previously toured community centers in three metro locations. One
commissioner noted that the proposed Monticello project was larger than Shoreview's
center. Shoreview has a population of 26,000 and an average family income of $68,000.
Monticello's population is 6,300 and has a median family income of $33,000. Shoreview
City Council elected to budget $30,000 annually for marketing and $150,000 annually for
operations as no user group fees were charged only membership fees.
AKA estimates the draw area for the Monticello Community Center to include the city
and school district and 15-20 miles outside. Becker Community Center - 176 family and
individual residential memberships, 130 pass holders within school district, and 121 non-
resident memberships. Sixty percent of their daily revenue is from walk-ins and of that it
is estimated 20% are from Monticello. Becker projected a four-year break-even point for
their $222,000 deficit.
Rusty Fifield, Ehlers & Associates, estimated the total bond issuance at $7,990,000 after
contributions from the NG, sale of city hall and senior center, MDOT, and up-front city
dollars for the core and water facility. A Lease Revenue Bond requires no vote, has a
greater tax impact on commerciaVindustrial (CII) property than residential, and has a
higher interest rate. A G.O. Bond requires a vote, has a greater tax impact on residential
property than CII, and has a lower interest rate.
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HRA MINUTES
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Estimates: Using Lease Revenue Bonds with an annual debt service of $675,000 less a
Sales Tax of$500,OOO would increase residential property valued at $120,000 by about
$20 annually and increase C/I property valued at $1,000,000 by about $475 annually.
Without a sales tax, a residential property would increase to about $75 annually and C/I
property to about $1,800.
Estimates: Using G.O. Bonds with an annual debt service of$650,000 (lower interest
rate) less a Sales Tax of$500,000 would increase residential property valued at $120,000
by about $38 annually and C/I property valued at $1,000,000 by about $315. Without a
sales tax, a residential property would increase to about $175 annually and C/I property to
about $1,300. Bonds issued at a maximum of20 years. A Sales Tax needs Legislative
approval and referendum approval for a Y2 to 1 % tax on revenues from designated goods
and services sold. Goods and services can exclude car sales.
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HRA commissioners inquired if an HRA could conduct an advisory vote? This was not
acceptable practice. Administrator W olfsteller informed commissioners issuance of the
bonds for the waste water treatment plant will impact property tax statement in 1998 and
1999. Estimates are a 26% increase this year and a guess of 10% increase or more in
1999. The community center bond issuance would be for debt service only and not the
operations budget. The city's maximum levy amount is $800,000, $600,000 is not
subject to levy limits and $200,000 is subject to levy limits.
Mayor Fair informed commissioners that some costs like a city hall were projected within
the next 3 to 5 years and with occupancy of a new facility in two years fits right into
those projected plans. He sees youth programs as an investment into the community and
the community center as an incentive for new families. Other funding revenues to
explore are funds from the Sales Tax, Liquor Store, Deputy Register, and TIF.
Lahr noted with the 45-day requirement for a referendum on G.O. Bonds it appears ample
time to meet the primary or general election or a prior deadline. Community Education
or YMCA were mentioned as possibilities for managing the programs. Stepping up to the
plate, Commissioner Andrews summarized in order to keep the project options open for
proceeding with assessment of space needs and other funding revenues, he endorsed
approval the Preliminary Development Agreement. Lahr felt it takes guts to ask the
voters and felt a $10,000,000 blank check was being issued. Lahr saw economic spin-off
from the $500,000 invested into redevelopment of the mall for the Cub Store. The
community has a voice through the Monticello Community Partners and its 250 members
which endorse the Revitalization Plan said Andrews. Commissioner Frie felt a general
referendum would not pass as the issue is complex and people have a tendency to vote
against issues which increase taxes. Commissioner Barger questioned chasing $9 million
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HRA MINUTES
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of city money for $1 million ofNG money. Mayor Fair saw this as an opportunity to
build a space-needed $10 million facility.
Will NSP always be there as it's in transformation? The question becomes: Can we
afford to or can we afford not to? Mayor Fair felt if the community center is done right,
it's an asset. Ifit's done incorrectly, it's a lemon. The community center is one of those
intangible things people come into a community for. Barb Esse, MCP Chairperson, gave
the example of Dr. Wethington's experience in recruitment of professional help.
7.
Consideration to approve the Preliminary Development Agreement between the HM. the
Citv. and Minnesota State ArmOry Buildinll Commission.
Steve Andrews made a motion to approve the first draft of the Preliminary Development
Agreement between the HRA, the City, and the Minnesota State Armory Building
Commission allowing the project to move ahead. Dan Frie seconded the motion and with
no further discussion, the motion passed 3-2. Yeas: Andrews, Frie, and Murray. Nays:
Barger and Lahr. Barger indicated he was not against the community center project but
felt there were other ways to finance a $10,000,000 project which includes voter's input.
Lahr also indicated his non-support to the motion stating a $10,000,000 project requires a
referendum of the public.
Consideration to hear a second proposal for development of affordable housing: utilizing
tax credits.
Chuck Malkerson, Community Capital, withdrew his presentation from the agenda as site
information has not come together.
Consideration to review the returned request for oroposals and aporaisal for Outlot A.
Country Club Manor for recommendation.
HRA commissioners reviewed the RFP from Hornig which is for development of 109
market rate rental units and an offer of $300,000 with 20% down at closing. No TIF.
Freedom Development's proposal consisted of market rate and afford housing rental and
owner occupied town home units and an offer of $151 ,675 for Outlot A and the request
for the city to waive the per acre trunk storm sewer charges. TIF was suggested to repay
the city for the per acre storm sewer charge, the installation of the sidewalks on 7 Street,
and for per acre land price for the 1.73 acre city park. Darrin Lahr made a motion stating
the BRA's willingness to support affordable housing projects and to assist with project
costs associated with tax credit applications after the city finalizes land sale negotiations.
They encouraged owner-occupied housing developments and placing Outlot A on the tax
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HRA MINUTES
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role. Steve Andrews seconded the motion and with no further discussion, the motion
passed unanimously.
-10. Consideration to authorize payment of the HRA monthlv bills.
Steve Andrews made a motion to authorize payment of the monthly HRA bills with the
exception of Ehler's bill for the Armory which is under the city/community center
project. Dan Frie seconded the motion and with no further discussion, the motion passed
unanimously.
11. Consideration of Executive Director's report.
HRA commissioners accepted the report and the preliminary concept for redevelopment
of a substandard site for construction of a 6,000 print two-story professional building.
Commissioner Andrews expressed interest to attend the 1998 TIF Seminar sponsored by
Ehlers on February 5 and 6.
12.
Other Business.
Brad Barger made a motion endorsing and recommending to the City Council,
Commissioner Steve Andrews for a five-year HRA term, expiration date of December,
2002. Darrin Lahr seconded the motion and with no further discussion, the motion
passed unanimously.
HRA members returned to agenda item no. 4 for consideration of the submitted counter-
offer of $57,500 "as is" for the Hawkins property. Steve Andrews made a motion to
counter-offer $55,700 "as is", the 1998 market value, for the property located at 225 West
River Street. Other terms and conditions remain the same as in the initial purchase offer.
Seconded by Dan Frie and with no further discussion, the motion passed unanimously.
'13. Adjournment.
The HRA meeting adjourned at II :00 p.m.
Ollie Koropchak, Executive Director
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MINUTES
REGULAR MEETING - MONTICELLO HOUSING AND REDEVELOPMENT
AUTHORITY
Wednesday, August 5,1998 - 7 p.m.
Members Present:
Chair Steve Andrews, Vice Chair, Bob Murray, Darrin Lahr, with
Brad Barger arriving at 7:30 p.m.
Members Absent:
Dan Frie
Council Liasion Absent:
Brian Stumpf
Staff Present:
Treasurer Rick Wolfsteller and Executive Director Ollie
Koropchak
1. Call to Order.
Chair Steve Andrews called the HRA meeting to order at 7:05 p.m.
2.
Approval of minutes of Mav 6 and Julv 1. 1998 HRA meetings.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DARRIN LAHR
TO APPROVE THE MINUTES OF THE REGULAR HRA MEETINGS HELD
MAY 6 AND JULY 1,1998, AS WRITTEN. Motion carried unanimously. The January
7, 1998 minutes are not ready for approval at this time.
3.
Consideration of adding items to the agenda.
A.
Executive Director Ollie Koropchak welcomed Nancy Whalen, a new employee,
to the HRA meeting. Ms. Whalen will be taking the minutes at the HRA
meetings.
B.
Ms. Koropchak asked the guests to identify themselves for the record.
C.
Under Item #18, a letter from Marquette Bank regarding a subordinate agreement.
D.
Proposed 3 Walnut Street purchase and tenant.
E.
Request to move the HRA regular meeting time to a different Wednesday night
because of a conflict that Mayor Fair has with the first Wednesday of the month.
F.
Under Item #15, a Declaration of Conflict ofInterest from Bob Murray.
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HRA Minutes - 8/5/98
4. Consideration to hear preliminary concept update for redevelooment of the North Anchor.
Ms. Koropchak introduced Brad Johnson. Mr. Johnson gave the HRA an update on the
process for redevelopment of the North Anchor. He stated that he felt a housing
development, a hotel and a good size family restaurant would make good use of the area.
This concept includes an exchange of land to preserve the parks and vacating Front Street
would add additional parking. Mr. Johnson stated that Blackwoods Restaurant has
expressed an interest in opening a new restaurant in a community this size. Blackwoods
currently has restaurants in Duluth and 3 other northern cities. Representatives from
Blackwoods will be visiting Monticello in the near future.
Mr. Johnson stated that he recently visited the Parks Commission and they were receptive
to the concept. It is estimated that this project would increase the park by 50%. He felt
that it would be good strategy for the HRA to continue acquiring land as it comes up for
sale.
HRA Commission asked questions of Mr. Johnson regarding the impact of acquisitions
on the foreseeable value of surrounding land. Also, whether or not the developers will
need a liquor license and traffic issues.
5.
Consideration to approve a resolution adopting the modification for Central Monticello
Redevelopment Proiect No.1: and establishing TIF District No. 1-24 therein and
adopting the related TIF olan therefor. CSt. Benedict's)'s).
Ms. Koropchak introduced this item and asked Mr. James Hiatt, St. Benedicts, to review
the design of the proposed independent facility for seniors. Mr. Hiatt covered in great
detail the proposed design and layout of the units. He stated that they are close to
finalizing their drawings. The project would not be done in phases. Completion should
be June or July, 1999. Mr. Hiatt stated that they have what is needed from the City and
will continue with the platting process.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY BOB
MURRA Y TO APPROVE A RESOLUTION ADOPTING THE MODIFICATION FOR
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1; AND
ESTABLISHING TIF DISTRICT NO. 1-24 THEREIN AND ADOPTING THE
RELATED TIF PLAN THEREFOR. Motion carried unanimously.
6.
Consideration of an update on the Community Center Proiect: Cost estimates and
funding.
Ms. Koropchak introduced Mr. Rusty Fifield, Ehlers & Associates, reviewed a memo
regarding the finance plan for the Community Center with a proposed schedule of events
in the bond issuing process. He went over the original cost estimate verus the current
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HRA Minutes - 8/5/98
estimate, cash flow projections and debt structure. Mr. Mark Wentzell, AKA, Inc., went
over the design of the building. He covered the exterior materials to be used and the
layout of the inside of the Community Center. Mr. Wentzell stated that bid opening is
scheduled for October 22, 1998, with groundbreaking on November 1, 1998. Completion
is scheduled for November/December 1999.
7.
Consideration to review the operating agreement for the community center between the
City and National Guard.
Attorney Dan Greensweig reviewed the proposed operating agreement with the City and
National Guard. He stated that the HRA is not a party in the agreement but felt that the
HRA should be updated since they will issue the bonds. The State will own the armory
and lease it to the City of $1.00 a year. The City will do routine maintenance of repairs
and a 90/10 split for real estate taxes. Also, the City will have total control over the lease
of facility except when the guards are scheduled to use the facility.
8.
Consideration to accept a counter-offer for the property located at 225 Front Street (Rich
and Marian Carlson).
Ms. Koropchak reviewed the above item. An Option Agreement and Purchase
Agreement was offered to the Carlsons in November 1997, the purchase offer price was
$130,000 as is. The appraisal value was $165,000. The Carlsons counter-offered in
amount of$179,500 as is, closing on or before 18 months, the City would reimburse $300
survey fee, HRA would be responsible for all closing fees, and the Carlsons would be
allowed to remove certain residential items. Also, they would be permitted to use the
HRA garage at no cost, and be allowed to remove fallen trees. The "as is" appears to be
in conflict with request for removal of items and trees.
After discussion was held between commissioners on how this property would impact the
North Anchor and funding, the commissioners felt that a special meeting should be held
with Treasurer Rick Wolfsteller, Rusty Fifield, Mark Ruff, and Ollie Koropchak to
review TIF and HRA General Fund finances. The HRA staff will gather information
enabling the commissioners to set priorities.
A MOTION WAS MADE BY DARREN LAHR AND SECONDED BY BOB
MURRA Y TO TABLE ANY ACTION RELATING TO THE JULY 24, 1998,
COUNTER-OFFER FROM THE CARLSONS. Motion carried unanimously.
A SECOND MOTION WAS MADE BY BOB MURRAY AND SECONDED BY
STEVE ANDREWS AUTHORIZING HRA STAFF AND THE HRA FINANCIAL
CONSUL T ANTS TO PREP ARE CURRENT CASH FLOW STATEMENTS AND
CASH FLOW PROJECTIONS, AND TO CALL A SPECIAL MEETING OF THE HRA
TO REVIEW THE PREPARED FINANCIAL INFORMATION THEREBY
ASSISTING THE HRA IN BUDGET PLANNING FOR 1999 AND TO SERVE AS A
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HRA Minutes - 8/5/98
GUIDE FOR REDEVELOPMENT DECISIONS. Motion carried unanimously.
Ms. Koropchak will set-up meeting time.
9. Consideration to review the appraisal for the property located at 218 Front Street and
authorization to proceed.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE
ANDREWS TO TABLE THE ABOVE ITEM. Voting in favor: Steve Andrews, Brad
Barger, and Damn Lahr. Opposed: Bob Murray. Motion carried.
10. Consideration of a proposal for a market identity study and to share in it's funding.
Ms. Koropchak introduced MCP Chair Barb Esse
Ms. Esse went over several items regarding developing community identity and
marketing strategies. There is a need to have a draw to attract people to the downtown
area. She stated that Monticello does not want to be considered a suburb. There is a
need for long term revitalization for the downtown area.
Ms. Rita Ulrich spoke next regarding financing the proposal to develop a community
identity. She requested the HRA partner as a fiscal agent in grant applications.
Discussion was held on whether or not this was the appropriate time to commit to this
project given the HRA has so much to consider right now. It was felt that money and
effort should be spent on what we have going right now. The commissioners felt that this
discussion would be better held after the review of the HRA finances. The MCP is
asking the HRA for $9,250 (60%) of the estimated total project cost.
Ms. Ulrich then asked if the HRA would be willing to make application for a grant in the
name of the HRA. Mr. Dan Greensweig, City Attorney, recommended that the HRA
review the grant application very carefully.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR ENABLING THE MCP TO USE THE HRA AS AN AGENT FOR GRANT
APPLICATION FOR FUNDING THE COMMUNITY IDENTITY AND MARKETING
STRATEGIES PLAN SUBJECT TO LEGAL REVIEW AND TO TABLE ACTION
FOR CO-FUNDING UNTIL THE HRA HAS REVIEWED THEIR FINANCES.
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HRA Minutes - 8/5/98
11.
Consideration to accept for record the Declaration of Potential Conflict of Interest from
Commissioner Brad Barger.
Commissioner Brad Barger submitted a Declaration of Potential Conflict of Interest as
one of the partners of Blue Chip Development Company.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY STEVE
ANDREWS TO ACCEPT, FOR THE RECORD, THE DECLARATION OF
POTENTIAL CONFLICT OF INTEREST FROM COMMISSIONER BRAD BARGER.
Voting in favor: Bob Murray, Darrin Lahr and Steve Andrews. Abstaining: Brad Barger.
Motion carried.
12. Consideration of a request for the assistance for development of a manufacturing facility
and authorization to proceed (Blue Chip Development Companv).
Ms. Koropchak reviewed Blue Chip Development Company's request for TIF assistance.
Blue Chip plans to contract a 12,000 sq ft steel manufacturing office facility. B & B
Metal Stamping, Inc. would possibly lease the entire building. Average wages, without
benefits, are $14.10 per hour.
The commissioners reviewed and found the proposed project to meet the local TIF
policies. Building proformas submitted by the accountant for Blue Chip indicated a rate
of return of 10.65% with TIF assistance and 6% without TIF.
With the proposed project meeting the qualification of the local and state TIF
requirements, a MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY
STEVE ANDREWS AUTHORIZING EHLERS & ASSOCIATES AND KENNEDY &
GRAVEN TO PREPARE FOR ESTABLISHMENT TIF DISTRICT NO. 1-25, AN
ECONOMIC DISTRICT FOR BLUE CHIP DEVELOPMENT COMPANY SUBJECT
TO SUBMITTAL OF THE PRE-AGREEMENT AND $5,000 CASHIER CHECK AND
APPROVING PAY -AS- YOU-GO TIF ASSISTANCE IN AN AMOUNT NOT - TO-
EXCEED $32,000 FOR SITE IMPROVEMENTS. THE COMMISSIONERS ELECTED
TO MAKE AN UP FRONT LOCAL CONTRIBUTION OF $8,000 OF WAC/SAC
FEES.
13. Consideration to hear preliminary concept for development of low to moderate income
familv housing and request of interest for use ofTIF.
Ms. Koropchak informed the HRA staff that the above item was withdrawn from this
agenda per applicant's request.
14. Consideration to review the first draft of the proposed TIF guidelines.
The above item was tabled.
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HRA Minutes - 8/5/98
15. Consideration to authorize payment of monthly HRA bills.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO APPROVE THE MONTHL Y HRA BILLS. Motion was carried.
unanimously.
16. Consideration of executive director's report.
Ms. Koropchak reviewed the director's report. Under item "D", it was decided to rent the
property for $550 a month. Ms. Koropchak will review the two rental applications and
proceed with renting the property. The report was accepted by the commissioners.
17. Consideration of committee reports:
A.
Bob Murray gave an update on the community center. He stated that a possibility
had existed that, due to the railroad, the community center would be moved
slightly on the property. Howeyer, Burlington Northern will remove the spur so
that the building will not have to be moved on the property. Also, we should be
able to get everything we want within the budget.
Bob suggested that BRA contact members of the community to sponsor rooms in
the community center. Another alternative would be to apply for grant funds.
B.
Steve Andrews reported on the MCP. The manufacturer is behind on the benches
and tables. However, they should be shipped on Monday, August 10, 1998. The
MCP will maintain the lot.
c.
Darrin Lahr updated the HRA on the Marketing Committee. The Committee will
be meeting to select a firm to design and produce an Industrial Marketing
Brochure. This brochure must be done by IDC Banquet on October 27, 1998. He
stated that he was pleased with how the marketing plan is progressing.
18. Other Business.
A. It was requested that the HRA meeting date be changed because of a conflict the
mayor has on the first Wednesday of the month which makes it impossible for
him to attend HRA meetings.
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HRA Agenda - 9/02/98
5.
Consideration to adopt a resolution amen dine the bylaws of the HRA.
A. REFERENCE AND BACKGROUND:
This is a housekeeping item. At the HRA meeting in August, the commissioners elected
to change the date of the annual and regular meeting of the HRA from the first
Wednesday to the second Wednesday of the month. Checking with Commissioner Frie
and Council Liaison Stumpf who were absent at the August meeting, to see if the new
date fit their schedule: no opposition was received. Enclosed is a resolution amending
the HRA Bylaws accordingly; thereafter, the effective commencement date is October 14,
1998. Amendments to the HRA Bylaws do not need City Council ratification.
B.
1.
2.
3.
. C.
AL TERNA TIVE ACTIONS:
A motion to adopt the resolution amending the Bylaws of the HRA.
A motion to deny adoption of the resolution.
A motion to table any action.
RECOMMENDATION:
Recommendation is alternative no. 1.
D. SUPPORTING DATA:
Copy of resolution for adoption and amended Bylaws.
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2
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RESOLUTION
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
AMENDING AUTHORITY BYLAWS.
WHEREAS, the Bylaws of the Housing and Redevelopment Authority (Authority) are in
need of a revision due to the desire to have the regular and annual meeting of the Board of
Commissioners held on the second Wednesday of each month;
WHEREAS, the Bylaws of the Housing and Redevelopment Authority (Authority) are in
need of revision of ARTICLE VI - MEETINGS of the Bylaws adopted the 6th day of April,
1971, and amended the 8th day of July, 1997;
WHEREAS, the proposed changes to the Bylaws have been reviewed by the Authority
Attorney, Commissioners, and Staff and found satisfactory;
THEREFORE BE IT RESOL YED that the attached revised Bylaws of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota, be adopted effective
immediately.
PASSED THIS
DAY OF
, 1998.
MOTION BY:
SECONDED BY:
ROLL CALL:
Ollie Koropchak,
Executive Director
Steve Andrews, Chair
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Section 1.
Section 2.
Section 3.
Section 4.
Section 1.
Section 2.
AMENDED
BYLAWS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
ARTICLE I
THE AUTHORITY
Name of Authority. The name of the Authority shall be the "Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota."
Seal of Authority. The seal of the Authority shall be in the form of a circle and
shall bear the name of the Authority and the year of its organization.
Office of the Authority: Place of Meeting. The office of the Authority shall be at
such place in the city of Monticello, Minnesota, as the Authority may from time
to time determine by resolution. Regular and special meetings of the Board of
Commissioners shall be open to the public and shall be held in Monticello City
Hall at 250 East Broadway, Monticello, Minnesota; provided, however, that upon
three days written notice to the Commissioners of the place of such meeting, any
regular or special meeting may be held at such place within the city of Monticello
as the notice shall designate.
Powers of the Authority. The Authority, by and in its corporate name, shall have
and exercise all powers, functions, rights, and privileges pursuant to Minnesota
Statutes 469.001. et seq.
ARTICLE II
COMMISSIONERS
Authority. The business and affairs of the Authority shall be managed by or
under the authority of the Board of Commissioners, except as otherwise permitted
by statute.
Number. Qualification. and Term of Office. There shall be five Commissioners
appointed by the Mayor of Monticello and approved by the City Council.
Commissioners shall be natural persons, at least 18 years of age, and must reside
in the city of Monticello. Commissioners shall serve a term of five years with one
Commissioner's term expiring each year.
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KAREN\OFFICE\OLLlE\BYLAW$.HRA: 8/24/98
Page 1
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Section 3.
Section 4.
Section 1.
Section 2.
Section 3.
Section 4.
V acancies. Vacancies on the Board of Commissioners occurring by reason of
death, resignation, removal, or disqualification shall be filled for the unexpired
term by the Mayor in accordance with the procedures set forth in Article II,
Section 2.
Removal. For inefficiency or neglect of duty, or misconduct in office, a
Commissioner may be removed from office by the City Council in accordance
with Minnesota Statute 469.010.
ARTICLE III
OFFICERS
Officers. The Officers of the Authority shall consist of a Chair, Vice-Chair, and a
Secretary- Treasurer. The Chair and Vice-Chair shall be elected from among the
Commissioners. A Commissioner shall not hold more than one of the above-
named offices at the same time. The Secretary-Treasurer shall be appointed by
the Commissioners.
Chair. The Chair shall preside at all meetings of the Board of Commissioners if
present. Except as otherwise authorized by resolution of the Board of
Commissioners, the Chair shall sign all contracts, deeds, and other instruments
made by the Authority. At each meeting, the Chair shall submit such
recommendations and information as considered proper concerning the business,
affairs, and policies of the Authority. Except as otherwise provided by resolution
of the Board of Commissioners, all such orders and checks shall be counter-
signed by the Chair.
Vice-Chair. The Vice-Chair shall perform the duties of the Chair in the absence
or incapacity of the Chair; and in case of resignation or death of the Chair, the
Vice-Chair shall perform such duties as are imposed on the Chair until such time
as the Board of Commissioners shall select a new Chair.
If in the event a quorum is present and the Chair and Vice-Chair are absent or
unable to attend a meeting of the Board of Commissioners. The three remaining
members shall elect from among the remaining Commissioners a Chair for the
said meeting.
Secretary-Treasurer. The Secretary-Treasurer shall perform the duties of the
office of Secretary-Treasurer. The Secretary-Treasurer may delegate the
responsibility for recording the Minutes of the Board of Commissioner meetings
to the Executive Director or to the Authority Office Secretary as is determined
appropriate by the Secretary-Treasurer. The Secretary-Treasurer shall sign all
orders and checks for the payment of money and shall payout and disburse such
moneys under the direction of the Authority.
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KARENIOFFICEIOLLlEIBYLAWS.HRA: 8/24/98
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Section 5.
Additional Duties. The Officers of the Authority shall perform such other duties
and functions as may from time to time be required by the Authority or the bylaws
or rules and regulations of the Authority.
Section 6.
Election or Appointment. The Chair and Vice-Chair shall be elected at the annual
meeting of the Board of Commissioners from among the Commissioners of the
Authority and shall hold office for one year or until their successors are elected
and qualified. The Secretary-Treasurer shall be appointed at the annual meeting
of the Board of Commissioners by the Commissioners.
Section 7.
Vacancies. Should the office of the Chair, Vice-Chair, or Secretary-Treasurer
become vacant, the Board of Commissioners shall elect a successor from its
members at the next regular meeting, and such election shall be for the unexpired
term of said office.
ARTICLE IV
EXECUTIVE DIRECTOR
The Authority shall employ an Executive Director who shall have general supervision over the
administration of its business and affairs, subject to the direction of the Board of Commissioners.
As assistant to the Secretary-Treasurer, the Executive Director shall ensure that proper records of
the Authority are maintained. The Executive Director (or designee) shall act as Secretary of the
meeting of the Board of Commissioners and shall keep a record of the proceedings in a journal of
proceedings to be kept for such purposes (the minutes of the proceedings are to be signed by the
recorder plus the Authority Commissioner acting as Chair at the meeting). The Executive
Director shall perform all duties incident to the Executive Director position as may be assigned
by the position description as approved by the Board of Commissioners. The Executive Director
shall keep in safe custody the seal of the Authority and shall have the power to affix such seal to
all contracts and instruments authorized to be executed by the Authority.
The Executive Director shall have the care and custody of all funds of the Authority and shall
deposit the same in the name of the Authority in such bank or banks as the Board of
Commissioners may select. The Executive Director shall be charged with the management of the
housing projects of Authority.
The Executive Director shall keep regular books of accounts showing receipts and expenditures
and shall render to the Board of Commissioners, at each regular meeting (or more often when
requested), an account of his /her transactions and also of the financial condition of the Authority.
The Executive Director shall give such bond of the faithful performance of duties as the Board of
Commissioners may determine.
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KARENIOFFICEIOLLlEIBYLAWS.HRA: 8/24/98
Page 3
The Executive Director shall be appointed by the Board of Commissioners. Any person
appointed to fill the office of Executive Director, or any vacancy therein, shall have such term as
the Board of Commissioners fixes, but no Commissioner of the Board of Commissioners shall be
eligible to this office. When the office of Executive Director becomes vacant, the Board of
Commissioners shall appoint a successor, as aforesaid.
.
The compensation of the Executive Director shall be approved by the Board of Commissioners.
ARTICLE V
ADDITIONAL PERSONNEL
The Board of Commissioners may from time to time employ such persOlmel as it deems
necessary to exercise its power, duties, and functions as prescribed by the Municipal Housing
and Redevelopment Law of Minnesota applicable thereto. The selection and compensation of
such personnel (including the Executive Director) shall be determined by the Board of
Commissioners subject to the laws ofthe State of Minnesota.
Section 1.
.
Section 2.
ARTICLE VI
MEETINGS
Annual Meeting. The annual meeting of the Board of Commissioners shall be
held on the second Wednesday of April at 7 p.m. at the regular meeting place of
the Board of Commissioners; provided, however, that the date/time of the annual
meeting may be postponed to a subsequent date/time upon the vote of a majority
of Commissioners in office at any time taken at any regular or special meeting.
Regular Meetings. Monthly meetings shall be held without notice at the regular
meeting place of the Board of Commissioners on the second Wednesday of each
month at 7 p.m. unless the same shall be a legal holiday, in which event said
meeting shall be held on the next succeeding secular day. In the event the
date/time/meetings place of a particular meeting must be changed, the Chair may
make such change deemed necessary by notifying all Commissioners by
delivering (by staff) a notice to their home address at any time prior to the
meeting or mailing a notice to the business or home address at least three (3)
working days prior to the date of such regular meeting.
Section 3. Special Meetings. Special meetings of the Board of Commissioners may be
called by the Chair or two members of the Board of Commissioners for the
purpose of transacting any business designated in the call. The call (including
location of meeting) for a special meeting may be delivered at any time prior to
the time of the proposed meeting to each member of the Board of Commissioners
or may be mailed to the business or home address of each member of the Board of
Commissioners at least three (3) working days prior to the date of such special
meeting. At such special meeting, no business shall be considered other than as .I
designated in the call; but if all of the members of the Authority are present at a ~,.,
KAREN\OFFICE\OLLlE\BYLAWS.HRA: 8/24/98 Page 4
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special meeting, any and all business may be transacted at such special meeting.
Notice of any special meeting shall be given in accordance with Minnesota
Statutes, Section 471.705, subd. 1c, or any successor statute regarding notice of
meetings of public bodies.
ARTICLE VII
QUORUM
The powers of the Authority shall be vested in the Commissioners thereof in office from time to
time. Three Commissioners constitute a quorum (except as noted below) for the purpose of
conducting its business and exercising its powers and for all other purposes, but a smaller
number may adjourn from time to time until a quorum is obtained. When a quorum is in
attendance, action may be taken by the Board of Commissioners upon a vote of a majority of the
Commissioners present (except as noted below).
Exception: In regard to action on the annual Authority operating budget, or revisions thereto,
there must be at least four Commissioners present, and the majority of those present must vote in
favor of such for the matter to be approved.
ARTICLE VIII
ORDER OF BUSINESS
Section 1.
Order of Business. At the regular meetings of the Board of Commissioners, the
following shall be the Order of Business:
1. Roll call
2. Reading and approval of minutes of the previous meeting
3. Items not contained in the agenda
4. New business
5. Bills and communications
6. Project update by Executive Director
7. Other Business
8. Adjournment
All resolutions shall be in writing and shall be copied in the journal of the
proceedings of the Board of Commissioners.
ARTICLE IX
MANNER OF VOTING
The voting on all questions coming before the Board of Commissioners shall be by roll call, and
yeas and nays shall shall be entered upon the minutes of such meeting. The Chair and all
members of the Board of Commissioners at every meeting of said Board of Commissioners shall ,_
be entitled to a vote. In the event that any Commissioners shall have a personal interest of any 6'"
KAREN\OFFICE\OLLlE\BYLAW$.HRA: 6/24/96 Page 5
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kind in a matter then before the Board of Commissioners, the Commissioners shall disclose
his/her interest and be disqualified from voting upon the matter, and the Secretary shall so record
in the minutes that no vote was cast by said Commissioner.
ARTICLE X
EXECUTION OF CONTRACTS
All contracts, notes, and other written agreements or instruments to which the Authority is a
party or signatory or by which the Authority may be bound shall be executed by the Chair and
Executive Director. If the Executive Director is absent or otherwise unable to execute a
document, the Secretary-Treasurer may execute the document.
ARTICLE XI
AMENDMENTS
The bylaws of the Board of Commissioners shall be amended by Resolution only with the
approval of at least a majority of the Commissioners in office at any time.
These bylaws were adopted as the bylaws of the Authority by the Board of Commissioners on
July 8, 1997.
These bylaws were adopted as the bylaws of the Authority by the Board of Commissioners on
September 2, 1998.
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KAREN\OFFICE\OLLlE\BYLAWS.HRA: 8/24/98
Page 6
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HRA Agenda - 9/02/98
6.
Consideration to approve a resolution adoptine: the modified Plan for Central
Monticello Redevelopment Proiect No.1: and establishine TIF District No. 1-25 and
adoptine: the Plan relatine thereto.
A. REFERENCE AND BACKGROUND.
Ehlers and Associates distributed the TIF Plan for TIF District No. 1-25 to the taxing
jurisdictions on August 14, 1998. The jurisdictions have 30 days to make comments.
You will note within the Plan, the budget is inflated. Ehlers elects to do so in order to
prevent any future need to modify the plan caused by expansion and it is far better to be
over-budget than under-budget. As you recall, for an economic district 20% of the tax
increment can be spend outside the district but within the project. Ten percent of the 20%
is earmarked for administration expense, the remaining 10% will be earmarked for public
improvements related to manufacturing facilities.
District No. 1-25 is being created as an economic district with a life duration of 11 years
for Blue Chip Development Company. The 12,000 sq ft steel manufacturing facility is
planned for lease to B&B Metal Stamping, Inc. or if B&B needs only 7,000 sq ft, the
remaining 5,000 sq ft as speculative. Blue Chip has submitted a proforma as findings for
the "but for" test. B&B Metal has provided additional support. B&B Metal Stamping
agrees to an average hourly wage of $14.10 per hour without benefits for 3 to 5 new full-
time employees within the next 2 years. Currently, the company employs 5 full-time and
3 part-time.
The Planning Commission on September 1 will consider approval of a resolution finding
the TIF Plan to be in compliance with the Comprehensive Plan. The TIF process is on
schedule with the public hearing and approval by City Council scheduled for September
14.
The HRA agreed to provide the up-front local match (10% of the tax increment)
estimated to be approximately $8,000. The local match must come from non-restrictive
funds (HRA General Fund). Making the local match exempts the City from the 30%
HAC A Penalty.
Agenda item no. 8 addresses the Contract and level of nF assistance. Enclosed is a copy
of the resolution for approval.
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HRA Agenda - 9/02/98
B.
ALTERNATIVE ACTION:
1.
A motion to approve a resolution adopting the modified Redevelopment Plan for
Central Monticello Redevelopment Project No.1; and establishing TIF District
No. 1-25 therein and adopting the related TIF Plan therefor.
2.
A motion to deny approval of the resolution ...................
3.
A motion to table any action.
C.
RECOMMENDATION:
As the HRA commissioners previously determined the proposed project meets the TIF
local policies and state requirements, and the project will increase the tax and
employment base of the City of Monticello and State of Minnesota, recommendation is
alternative no. 1.
D. SUPPORTING DATA:
.
Resolution for adoption and Exhibit A., the TIF Plan.
A copy of the modified Central Monticello Redevelopment Project No.1 Plan is
available for review in the HRA office.
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RUG 24 '98 11:19RM EHLERS & RSSOCIRTES
P.2/15
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CiTY OF MONTICELLO
WRIGHT COUNTY
" STATE OF MJNNESOT A
.....,. f ~.,'
RESOLUTION NO.
''', '
.,. IU;SOL-P~I()N ADOl)TING THE MODIFIED REDEVELOl)MENT PLAN FOR
<\;:':::..CENrRAL MONTICELLO REDEVELOPMENT :PROJECT NO.1; AND
, '!. "'I~. ',: :i~..,,,:,,.,.
. ,/,~;;;:~S'fABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT
,,:'" PROJECT NO.1 TAX INCREMENT FINANCING DISTRICT NO. 1-15 AND
" "ADOPTING THERELATEDTAXINClU:MENT FlNANCING PLAN THEREFOR.
WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the Housing
and Redevelopment Authority (the "HRA)" for the City of Monticello (the "City") adopt the Modified
RedeveJopment Plan for Central Monticello Redevelopment Project No.1 and establish Tax Increment
Financing District No. 1.25 aod adopt the Tax Increment Financing Plan therefor, (collectively, the "Plans"),
all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.00 1 through
469.047, and Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Plans and presented
for the Board's consideration; and
WHEREAS. the HRA has investigated the facts relating to the Plans and has caused the Plans to be
prepared; and
WHEREAS, the proposed developments as described in the Plans, in the opinion of the HRA, would
not reasonably be expected to occur solely through private investment within the reasonable foreseeable
future and, therefore, the use of taX increment financing is deemed necessary; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the
adoption of the Plans, including but not limited to, notification of Wright County and School District No.
882 having taxingjurisdiction over the property to be included in Tax [ncrement Financing District No. 1-25,
a request for rev iew of and written comment on the Plans by the City Planning Commission, and a request
that the Council schedule a public hearing on the Plans upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows;
1. The HRA hereby finds that Tax Increment Financing District No. 1-25 is in the pubHc
interest and is an "economic development district" under Minnesota Statutes, Section 469.174, subd. 12, and
finds that the adoption of the proposed Plans will advance the HRA's and City's objectives of encouraging
development within CentraJ Monticello Redevelopment Project No. I.
2. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and
shall be placed on file in the office of the City Administrator.
3.
Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal
N' ;IM; """'I~IMONTICEL ITifl-2SI}"'iI_'';::.. wpd
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AUG 24 '98 11:20AM EHLERS & RSSOCIRTES
P.3/15
counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to
negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions,
documents and contras.ts ~ecessary for this purpose. Approval of the Plans does not constitute approval of
any project or a DeveIbpmehtA.greement with any developer.
,,~. .J~ 'I... ...,,",/..
'..:"" '. i ~." ", ~'::...
4. Ue?.~"'llp:p'[9val of the Plans by the City Council, the Executive Director of the liRA is
authorized to for~a:id:;a.copy of the Plans to the Minnesota Department ofRevcnuc pursuant to Minnesota
Statutes 469.1]5,. sGbdi~ision 2.
,j.".::;.:.:.:;;:>;:i:'t." the City Administrator is authorized and directed to forward a copy of the Plans to the
Wrig1ifC:()u~ty'Auditor and request that the Auditor certify the original tax capacity of District No. ] .25 as
destribed,i,{the Plansl all in accordance with Minnesota Statutes 469.177.
" II .
~::,"),,~, .-.,:.::.'"
Approved by the Board of Commissioners of the Monticello Housing and Redevelopment Authority
this day of . 1998.
Chair
ATTEST;
Executive Director of the HRA
~.,~
N:\Minns.,ta\MQ}lI1"ICEL\ Tifl-2S\hraJc$.wpd
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HRA Agenda - 9/02/98
7.
Consideration to approve the Private Redevelopment Contract and the Extended
Low-Income Housine: Commitment A~reement between the HRA and St. Cloud
Hospital Corporation.
A. REFERENCE AND BACKGROUND:
PRIV A TE REDEVELOPMENT CONTRACT
The Contract is between the HRA and St Cloud Hospital Corporation dba St. Benedict's
Center. The contract defines the representations of the HRA, the "authority", and the
representations and warranties ofthe St. Cloud Hospital Corporation, the "redeveloper".
The HRA agrees to reimburse the redeveloper for site improvements and land write-down
in a maximum amount of $440,000 subject to the redeveloper satisfying the terms and
conditions of the contract. The reimbursement payment is from 90% of the tax increment
collected by the HRA from the establishment ofTIF District No. 1-24.
Attached are excerpts from the Contract as prepared by Attorney Bubul. The contract is
similar and consistent to other HRA contracts except for the 8% interest rate. The HRA
may wish to consider changing the rate to 7.5%. The Mississippi Shores contract was 8%
based on the bond rates of a couple years ago.
EXTENDED LOW-INCOME HOUSING COMMITMENT AGREEMENT
As a "Qualified Housing District", the project must meet the requirements under Section
42 of the Internal Revenue Code of 1986. However, this is not a housing tax credit
project. The redeveloper has agreed to the 40/60 test. The 40/60 test means at least 40%
or more of the residential units in the project are both rent restricted units and occupied
by person whose income is 60% or less of area median gross income. The developer
agrees to provide the HRA with certification of tenant eligibility and continuing program
compliance.
Attached are the Exhibits to the agreement only. A copy of the entire documents is
available at City Hall for your review.
Please consider a motion for each document independently.
5
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HRA Agenda - 9/02/98
B.
AL TERNA TIVE ACTIONS:
PRIVATE REDEVELOPMENT CONTRACT
1. A motion to approve the Contract for Private Redevelopment between the HRA
and St. Cloud Hospital Corporation at an interest rate of for
reimbursement of public redevelopment costs.
2. A motion to deny approval ofthe Contract ............
3. A motion to table any action.
EXTENDED LOW-INCOME HOUSING COMMITMENT AGREEMENT
1. A motion to approve the Extended Low-Income Housing Commitment
Agreement between the HRA and St. Cloud Hospital Corporation.
2. A motion to deny approval of the Commitment Agreement.
3. A motion to table any action.
.
C.
RECOMMENDATIONS:
Recommendation is Alternative No.1 for both the contract and the agreement. A 7.5%
interest rate is recommended for consistency of current contracts.
D. SUPPORTING DATA:
Excerpts from the contract
Excerpts from the agreement.
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ARTICLE III
Public Redevelopment Costs
Section 3.1. Status of Redevelopment Property. The Redevelopment Property is currently
owned by Church of St. Henry's ("St. Henry's"). The Redeveloper shall acquire marketable title to
the Redevelopment Property from St. Henry's.
Section 3.2. Public Redevelopment Costs. (a) The Redeveloper shall construct on the
Redevelopment Property certain site improvements identified in Schedule B hereto ("Site
Improvements"), in accordance with the Construction Plans.
(b) The Authority is authorized to acquire real property and convey such property to
private entities at a price determined by the Authority in order to facilitate development or
redevelopment of the property. The Authority has determined that, in order to make
development of the Minimum Improvements financially feasible, it may be necessary to reduce
the cost of acquisition of the Development Property. The Authority has also determined that, in
light of potential liability that could be incurred by the Authority if the Authority takes title to the
Redevelopment Property, it is in the best interest of the Authority for the Developer to acquire
the Redevelopment Property directly from St. Henry's pursuant to the purchase agreement. The
Authority will reimburse the Redeveloper for a portion of the cost of such acquisition (the "Land
Write-Down").
(c) The cost of the Site hnprovements, together with the Land Write-Down, are
referred to herein as the "Public Redevelopment Costs." In order to make the development of the
Minimum hnprovements economically feasible, the Authority will reimburse the Redeveloper for
the Public Redevelopment Costs in the maximum amount of $440,000, in accordance with the
terms of Section 3.3 hereof.
In the event that the Public Redevelopment Costs exceed $440,000, such excess costs shall
be the responsibility of the Redeveloper. The Authority shall have no obligation to the Redeveloper
or to any third party with respect to any defects in the construction of improvements financed or
reimbursed by the Authority as Public Redevelopment Costs.
Section 3.3. Reimbursement of Public Redevelopment Costs. The AuthOlity will
reimburse the Redeveloper for Public Redevelopment Costs paid by the Redeveloper pursuant to
Sections 3.2 in the total amount of $440,000, in accordance with the following terms and
conditions:
(a) The Public Redevelopment Costs will be paid by the Authority to the Redeveloper
in semi-annual installments, with interest at a rate of 8 percent per annum , payable on each
February 1 and August ("Payment Dates") commencing August I, 2001 and concluding no later
than February 1, 2026, which payments will be made in the amount of and to the extent of
Available Tax Increment as defined herein.
(b) The term "Available Tax Increment" means 90 percent of the Tax Increments paid
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to the Authority with respect to the Redevelopment Property during the six months preceding any
Payment Date; provided that Available Tax Increment shall include any Tax Increment paid to the
Authority with respect to the Redevelopment Property at any time prior to the first Payment Date,
and shall not include any Tax Increments received by the Authority after February 1,2026.
(c) Interest shall accrue on the unpaid principal amount of the Public Redevelopment
costs from the date of the Authority's certificate issued pursuant to Section 3.3(f) herein (the
"Accrual Date"). Payments by the Authority under tIlls Section shall be applied first to accrued
interest and then to unpaid principal. Interest accruing from the Accrual Date to the first Payment
Date shall be compounded semi-annually on February I and August I of each year and added to
principal. The Authority may prepay in whole or in part the principal sum and all accrued interest
payable under this Section at any time without premium or penalty. No partial prepayment shall
affect the amount or timing of any other regular payment otherwise required to be made under this
Section.
(d) The Authority's obligation to pay the Public Redevelopment Costs shall terminate
on the earlier of the Payment Date on which the Redeveloper has been fully reimbursed for the
amount of the public Redevelopment Costs together with interest thereon, or February I, 2026,
whichever date occurs first. The authority shall have no obligation to pay any portion of the Public
Redevelopment Costs that remain unpaid after February I, 2026.
(e) The Authority shall not be obligated to make any payment under this Section if: (i)
the Authority has not issued the Certificate of Completion for the Minimum Improvements; (ii)
there is an Event of Default on the Redeveloper's part under this Agreement or the Low Income
Housing Agreement that has not been cured as of the Payment Date; (iii) the Redeveloper elects not
to reconstruct the Minimum Improvements after their destruction, as provided in Section 5.1 herein;
or (iv) the Redeveloper has failed to comply with the payment procedures described in paragraph (0
herein.
(0 By no later than the date required for completion of the Minimum Improvements
under Section 4.3 hereof, the Redeveloper must submit to the Authority a certificate signed by its
duly authorized representative stating that the Redeveloper has paid the Public Redevelopment
Costs in at least the amount of $440,000 and that no Event of Default has occurred and is
continuing under this Agreement. The certificate must be accompanied by evidence reasonably
satisfactory to the Authority that the Public Redevelopment Costs have been incurred and paid by
the Redeveloper. In the case of Site Improvements, such evidence must include paid invoices or
certified construction draws; and in the case of any Land Write-Down, such evidence must include
a copy of the purchase agreement, closing statement, and, if payments are made in installments
evidence of payment in at least the amount requested for reimbursement as Land Write-Down. The
Authority shall promptly notify the Redeveloper in writing when the Authority determines that such
evidence is satisfactory. If the amount of Public Development Costs certified by the Redeveloper
and approved by the Authority is less than $440,000 the total reimbursement under this Section
shall be reduced to such lesser amount.
(g) The Redeveloper acknowledges that the Authority makes no representations or
warranties as to the amount of Available Tax Increment or whether such revenues will be sufficient
to pay Public Redevelopment Costs and interest thereon. Any estimates of. Available Tax
SJB-148595
MN190-73
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. or the TIP Plan are for illustration purposes only and the Redeveloper is not entitled to rely on such
estimates for any reason.
Section 3.4. Administrative Costs. The Redeveloper agrees that it will pay all
Administrative Costs as hereafter defined. FOr the purposes of this Agreement, the term
"Adnlinistrative Costs" means out of pocket costs incurred by the Authority attributable to or
incurred in connection with the negotiation and preparation of this Agreement and other documents
and agreements in connection with the development contemplated hereunder. Adnlinistrative Costs
shall be evidenced by invoices, statements or other reasonable written evidence of the costs
incurred by the Authority. The Authority acknowledges that the Redeveloper has deposited with
the Authority the amount of $5,000 for payment of Administrative Costs. Upon issuance of the
Certificate of Completion for the Minimum Improvements, the Authority shall return to the
Redeveloper any balance of such deposit that the Authority reasonably determines is not needed to
pay Administrative Costs. If at any time the Authority determines that Administrative Costs will '
exceed $5,000, the Redeveloper shall pay any additional Adnlinistrative Costs within 10 days after
receipt of a written invoice from the Authority.
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ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will
construct the Minimum Improvements on the Redevelopment Property in accordance with the
approved Construction Plans and at all times prior to the Maturity Date will operate and maintain,
preserve and keep the Minimum Improvements or cause the Minimum Improvements to be
maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good
repair and condition.
Section 4.2. Construction Plans. (a) Before the Redeveloper commences construction of
the Minimum Improvements, the Redeveloper shall submit the Construction Plans to the City
Building Official, who shall review such plans on behalf of the Authority. The Construction Plans
shall provide for the construction of the Minimum Improvements and shall be in conformity with
the Redevelopment Plan, this Agreement, and all applicable State and local laws and regulations.
The City Building Official will approve the Construction Plans in writing if: (i) the Construction
Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform
to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all
applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction
Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction
Plans do not provide for expenditures in excess of the funds available to the Redeveloper for
construction of the Minimum Improvements; and (vi) no Event of Default has occurred. No
approval by the City Building Official shall relieve the Redeveloper of the obligation to comply
with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local
laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance
therewith. No approval by the City Building Official shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the
time of submission, such Construction Plans shall be deemed approved unless rejected in writing by
the City Building Official, in whole or in part. Such rejections shall set forth in detail the reasons
therefore, and shall be made within 30 days after the date of their receipt by the City Building
Official. If the City Building Official rejects any Construction Plans in whole or in part, the
Redeveloper shall submit new or corrected Construction Plans within 30 days after written
notification to the Redeveloper of the rejection. The provisions of this Section relating to approval,
rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the City Building Official. The City Building Official's
approval shall not be unreasonably withheld. Said approval shall constitute a conclusive
determination that the Construction Plans (and the Minimum Improvements, constructed in
accordance with said plans) comply to the City Building Official's satisfaction with the provisions
of this Agreement relating thereto.
(b) If the Redeveloper desires to make any material change in the Construction Plans
after their approval by the City Building Official, the Redeveloper shall submit the proposed change
to the City Building Official for approval. If the Construction Plans, as modified by the proposed
change, conform to the requirements of this Section 4.2 of this Agreement with respect to such
previously approved Construction Plans, the City Building Official shall approve the proposed
"1"'''
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MN190.73
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change and notify the Redeveloper in writing of its approval. Such change in the Construction
Plans shall, in any event, be deemed approved by the City Building Official unless rejected, in
whole or in part, by written notice by the City Building Official to the Redeveloper, setting forth in
detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the
notice of such change. The City Building Official's approval of any such change in the
Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Redeveloper shall commence construction of the Minimum Improvements by
November 1, 1998. Subject to Unavoidable Delays, the Redeveloper shall complete the
construction of the Minimum Improvements by December 31, 1999. All work with respect to the
Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment
Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and
approved by the Authority.
The Redeveloper agrees for itself, its successors and assigns, and every successor in interest
to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Redevelopment Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified in
this Section 4.3 of this Agreement. Subsequent to conveyance of the Redevelopment Property, or
any part thereof, to the Redeveloper, and until construction of the Minimum Improvements has
been completed, the Redeveloper shall make reports, in such detail and at such times as may
reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect
to such construction.
Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of the Agreement relating solely to
the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority will furnish the Redeveloper with an appropriate
instrument so certifying. Such certification by the Authority shall be a conclusive determination of
satisfaction and termination of the agreements and covenants in the Agreement and in the Deed
with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the
Minimum Improvements and the dates for the beginning and completion thereof. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Redeveloper to any Holder of a Mortgage, or any insurer of a Mortgage, securing
money loaned to finance the Minimum Improvements, or any part thereof.
(b) The certificate provided for in this Section 4.4 of this Agreement shall be in such
form as will enable it to be recorded in the proper office for the recordation of deeds and other
instruments pertaining to the Redevelopment Property. If the Authority shall refuse or fail to
provide any certification in accordance with the provisions of this Section 4.4 of this Agreement,
the Authority shall, within thirty (30) days after written request by the Redeveloper, provide the
Redeveloper with a written statement, indicating in adequate detail in what respects the
Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions
~::~:;;,greement, or is otherwise in default, an~ :hat measures or acts it will be necessary;: ~
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opinion of the Authority, for the Redeveloper to take or perform in order to obtain such
certification.
(c) The construction of the Minimum Improvements shall be deemed to be substantially
completed when the Redeveloper has received a certificate of occupancy from the responsible
inspecting authority. .
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SCHEDULE B
SITE IMPROVEMENTS
Item Allocation Estimated
Amount
Exterior Utilities 50% $ 20,890
Footings & Foundations 48% 26,853
Parking Lot & Driveways 50% 28,200
Curb & Gutter 50% 11,448
Pedestrian Path 50% 9,726
Landscaping 50% 24,600
Exterior Lighting 50% 11,100
General Excavation 75% 86,850
Slab on Grade 50% 40,772
Subtotal 258,189
SAC Per unit 100,800
WAC Per unit 1,668
Park Dedication 50% 3,200
Trunk Fees 50% 25,500
Subtotal 131,168
. Grant Total $389.357
The parties agree and understand that the Redeveloper is also constructing a 60-unit assisted
living facility adjacent to the Minimum Improvements. Site Improvements eligible for
reimbursement under this Agreement include only amounts allocable to the Minimum
Improvements according to the allocation listed above. Actual costs may vary from the above,
provided that (a) allocations to the Minimum Improvements shall be made using the above
percentages (or per unit allocation in the case of SACIW AC), and (b) the principal amount
reimbursable as Site Iniprovements together with Land-Write Down may not exceed $440,000.
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Project Owner:
Owner Address:
Project Name:
Project Address:
Building(s):
Unit Mix: 3BR
2BR
IBR
EFF
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EXmBIT B TO COMMITMENT AGREEMENT
The Project
St. Cloud Hospital Corporation d/b/a St. Benedict's Center
Redevelopment Project No. 1
to be determined
Independent
Senior Housing
Applicable Building Fraction: NA
Housing Credit Dollar Amount: NA
Extended Use Termination Date (which shall be a date not less than 15 years after the close of the
Compliance Period): NA
Extended Use Period: as defined in Corrunitment Agreement
Compliance Period: as defmed in Corrunitment Agreement
Special Early Termination Clause (if applicable and if more stringent than Section 2(a)(iii)(A)):
NA
Test Elected:
20-50 Test
40-60 Test
x
Additional Requirements:
None
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Extended Low Income Housing
commitment Agreement
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EXlllBIT C TQ.COMMITMENT AGREEMENT
(Project Owner: )
Certification of Tenant Elhdbility
RENTAL UNIT
Street Address:
City:
Unit No.:
Zipcode:
J/We, the undersigned, being first duly sworn, state that J/we have read and answered fully
and truthfully each of the following questions for all persons who are to occupy the unit in the
above apartment development for which application is made, all of whom are listed below:
1.
Name of Members
of the
Household
2.
Relationship
to Head of
Household
5.
3.
4.
Social
Security
Number
Place of Emoloyment
Age
Date of Occupancy of Rental Unit by Tenant:
Date of Lease Signed for Rental Unit by Tenant:
Certification Date (Earlier of Date of Occupancy or Date Lease signed):
6. Anticipated Annual Income. The anticipated total annual income from all sources
of each person listed in 1 for the twelve month period beginning dn the Certification Date listed
above, including income described in (a) below, but excluding all income described in (b) below, is
$
(a) The amount set forth above includes all of the following income (unless such
income is described in (b) below;
(i) all wages and salaries, overtime pay, corrunissions, fees, tips and bonuses
before payroll deductions;
(ii) net income from the operation of a business or profession or from the rental
of real or personal property (without deducting expenditures for business expansion or .
amortization of capital indebtedness or any allowance for depreciation of capital assets); '\' \
SJB~149130 Extended Low Income Housing
MN190-73 Commitment Agreement
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(iii)
below);
interest and dividends (including income from assets as set forth in item 7(b)
(iv) the full amount of periodic payments received from social security,
annuities, insurance policies, retirement funds, pensions, disability or death benefits and
other similar types of periodic receipts;
(v) payments in lieu of earnings, such as unemployment and disability
compensation, workmen's compensation and severance pay;
(vi) the maximum amount of public assistance available to the above persons;
(vii) periodic and determinable allowances, such as alimony and child support
payments and regular contributions and gifts received from persons not residing in the
dwelling;
(viii) all regular pay, special pay and allowances of a member of the Armed Forces
(whether or not living in the dwelling) who is the head of the household or spouse; and
(ix) any earned income tax credit to the extent it exceeds income tax liability.
(b)
The following income is excluded from the amount set forth above:
(i) casual, sporadic or irregular gifts;
(ii) amounts that are specifically for or in reimbursement of medical expenses;
(iii) lump sum additions to family assets, such as inheritances, insurance payments
(including payments under health and accident insurance and workmen's compensation),
capital gains and settlement for personal or property losses;
(iv) amounts of educational scholarships paid directly to student or educational
institution, and amounts paid by the government to a veteran for use in meeting the costs of
tuition, fees, books and equipment, but in either case only to the extent used for such
purposes;
(v) hazardous duty pay to a member of the household in the armed forces who is
away from home and exposed to hostile fire;
(vi) relocat!on payments under Title IT of the Unifonn Relocation Assistance and
Real Property"7!t\!quisition Policies Act of 1970; .""" -
(vii) income from employment of children (including foster children) under the age
of 18 years, ",,0
SJB-149130 Extended Low Income Housing
MN190-73 Commitment Agreement
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(viii) foster child care payments; (ix) the value of coupon allotments under the Food
Stamp Act of 1977;
(x) and payments to volunteers under the Domestic Volunteer Service Act of 1973.
(xi) payments received under the Alaska Native Claims Settlement Act;
(xii) income derived from certain submarginal land of the United States that is held in trust
for certain Indian tribes;
(xiii) payments on allowances made under the Department of Health and Human
Services' Low-Income Home Energy Assistance Program;
(xiv) payments received from the Job Partnership Training Act;
(xv) income derived from the disposition of funds of the Grand River Bank of
Ottawa Indians; and
(xiv) the first $2,000 of per capita shares received from judgments awarded by the
fudian Claims Commission or the Court of Claims or from funds held in trust for an Indian
tribe by the Secretary of Interior.
7. Net Family Assets. If any of the persons described in item 1 above (or any person
whose income or contributions were included in item 6) has any savings, stocks, bonds, equity in
real property or other form of capital investment (excluding interests in Indian trust lands), provide:
(a)
the total value of all such assets owned by all such persons:
,and
$
(b) the amount of income expected to be derived from such assets in the 12-month
period commencing this date: $
8. Students.
(a) Will all of the persons listed in item 1 above be or have they been full-time students
during five calendar months of this calendar year at an educational institution (other than a
correspondence school) with regular faculty and students?
Yes
No
(b) (Complete only if the answer to Question 8(a) is "Yes"). Is any such person (other
than nonresident aliens) married and eligible to file ajoint federal income tax return?
Yes
No
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Extended Low Income Housing
Commitment Agreement
SJB-149130
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The above information is full, true and complete to the best of my knowledge. I have no
objections to inquiries
being made for the purpose of verifying the statements made herein.
I acknowledge that all of the above information is relevant to the qualification under federal income
tax law for the low income housing tax credit. I consent to the disclosure of such information to the
housing credit agency or authorized agent thereof and any authorized agent of the Treasury
Department or Internal Revenue Service.
Date
Signature
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Commitment Agreement
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FOR COMPLETION BY PROJECT OWNER ONLY:
A.
Calculation of eligible income:
(1) Enter amount entered for entire household in 6 above: $
(2) If the amount entered in 7(a) above is greater than $5,000, enter
(i) the product of the amount entered in 7(a) above multiplied by the current
passbook savings rate as determined by HUD:
$
(ii) the amount entered in 7(b) above:
$
(iii) line (i) minus line (ii) (if less than $0, enter $0):
$
(3) TOTAL EUGffiLE INCOME (Line A(1) plus line A(2)(iii):
$
B.
Enter number of family members listed in item 1 above:
c.
The amount entered in
(A)(3) is:
_ Qualifying Tenant: less than 50% of Area Median Gross Income for the
family size listed in (B)
More than the above-mentioned amounts.
D. Number of apartment unit assigned:
E. Monthly rent: $
F. This apartment unit (was/was not) last occupied for a period of 31 consecutive days
by a person or persons whose adjusted income, as certified in the above manner, was equal to or
less than the amount at which a person would have qualified as a Qualifying Tenant under the terms
of the Declaration.
G. Applicant:
Qualifies as a Qualifying Tenant
Does not qualify as a Qualifying Tenant.
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EXIDBIT D
TOCO~TMENTAGREEMENT
Certificate of
Continuing Program Compliance
The Information requested in certain sections of this report is required by Prop. Tres.
Reg. Section 1.42-5. Failure to supply the information requested on a timely basis will result
in a notification of noncompliance to the Internal Revenue Service. This information must be
given under penalty of perjury. (See Sections 6 to 9 of the Extended Low Income Housing
Commitment Agreement.)
Date:
,19_,
The following information with respect to Project (the
"Project"), is being provided by (the "Owner") to the
Housing and Redevelopment Authority in and for the City of Monticello, Minnesota (the
"Authority"), pursuant to that certain Extended Low-Income Housing Commitment Agreement
dated as of , 199_ (the "Commitment Agreement") with respect to the Project:
(A) The total number of residential units which are completed and available for
occupancy IS , The total number of such units occupied is
(B) The following residential units (identified by unit number) have been designated for
occupancy by "Qualified Tenants," as such term is defined in the Commitment Agreement (for a
total of ):
(C) The following residential units which are included in (B) above, have been re-
designated as units for Qualified Tenants since , 19_. the date on which the
last "Certificate of Continuing Program Compliance" was filed with the Authority by the Owner:
Unit
Number
.~
Previous Designation
of Units (if any)
Replacing
Unit Number
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Extended Low Income Housing
Commitment Agreement
SJB-149130
MN190-73
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(D) The following residential units are considered to be occupied by Qualified Tenants
based on the information set forth below:
[See Schedule A attached]
(E) The project meets the requirements of the 20-50 test under section 42(g)(l)(A), the
40-60 test under section 42(g)(l)(B), whichever minimum set-aside test is applicable to the project,
and the 15-40 test under sections 42(g)(4) and 142(d)(4)(B) for "deep rent skewed", projects, if
applicable to the project,
(F) The Owner has obtained a "Certificate of Tenant Eligibility," in the form provided
as Exhibit "C" to the Commitment Agreement from each Tenant named in (D) above, and each
such Certificate is being maintained by the Owner in its records with respect to the Project.
Attached to each certificate is documentation to support the tenant's income certification (for
example, a copy of the tenant's federal income tax return, Forms W-2, or verifications of "income
from third parties" such as employees or state agencies paying unemployment compensation),
Attached hereto is the most recent "Certificate of Tenant Eligibility" for each Tenant named in (D)
above who signed such a Certificate since , 19_, the date on which the last
"Certificate of Continuing Program Compliance" was filed with the Trustee by the Owner.
(0) Each low-income unit in the project is rent-restricted under section 42(g)(2) of the
Internal Revenue Code of 1986, as amended.
(H) All units in the project are for use by the general public and are used on a
non transient basis.
(I) Each building in the project is suitable for occupancy, taking into account local
health, safety, and building codes.
(J) There has been no change in the eligible basis (as defined in section 42(d)) of any
building in the project, or if there has been a change, the nature of the change is described below:
(K) All tenant facilities included in the eligible basis under section 42(d) of any building
in the project, such as swimming pools, other recreational facilities, and parking areas, are provided
on a comparable basis without charge to all tenants in the building, The character and use of any
nonresidential portions of the building included in the building's basis under Section 4,2(d) is
described as follows:
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(L) If a low-income unit in the project becomes vacant during the year, reasonable
attempts are made to rent that unit to tenants having a qualifying income and while the unit is
vacant no units of comparable or smaller size are rented to tenants not having a qualifying income.
(M) If the income of tenants of a low-income unit in the project increases above the limit
allowed in section 42(g)(2)(D)(ii), the next available unit of comparable or smaller size in the
project will be rented to tenants having a qualifying income.
(N) In renting residential units in the Project, the Owner has not given preference to any
particular group or class of persons (except for persons who qualify as Qualified Tenants). None of
the units listed in (D) above have been rented for occupancy entirely by students, no one of which is
entitled to file a joint return for federal income tax purposes. All of the residential units in the
Project have been rented pursuant to a written lease, and the term of each lease is at least _
months.
(0) The information provided in this "Certificate of Continuing Program Compliance" is
accurate and complete, and no matters have come to the attention of the Owner which would
indicate that any of the information provided herein, or in any "Certificate of Tenant Eligibility"
obtained from the Tenants named herein, is inaccurate or incomplete in any respect.
on
IN WITNESS WHEREOF, I have hereunto affixed my signature, on behalf of the Owner,
,_19_.
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as Owner
By
Its
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MN190-73
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Commitment Agreement
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ARTICLE III
Public Redevelopment Costs
Section 3.1. Status of Redevelopment Property. (a) The Redevelopment Property is
currently owned by the Redeveloper. The Redeveloper shall lease at least 7,000 square feet of
leasable space in the Minimum Improvements to the Initial Tenant pursuant to a lease agreement (a
"Lease") approved by the Authority. The Authority shall be entitled to require that: (i)
reimbursement of Public Redevelopment Cost under this Agreement directly or indirectly inures to
the benefit of the Initial Tenant, as reason"ably detennined by the Authority; (ii) the Lease
incorporates the use restrictions set forth in Section 10.3 hereof; and (iii) the Lease incorporates the
job and wage covenants set forth in Section 3.5 hereof.
(b) The Redeveloper shall lease the balance of space in the Minimum Improvements to one
or more Tenants pursuant to a Lease or Leases approved by the Authority. The Authority shall be
entitled to require that each Lease incorporates the restrictions set forth in Section 10.3.
(c) The Redeveloper shall submit each Lease to the Authority before full execution thereof.
The Authority's Executive Director, acting on behalf of the Authority, shall approve each Lease in
writing within 10 days after receipt if the Lease confonns to the terms of this Section. If the
Executive Director does not approve a Lease, he or she shall notify the Redeveloper in writing
within that 1O-day period, stating the reasons for rejection.
Section 3.2. Public Redevelopment Costs. (a) The Redeveloper shall construct on the
Redevelopment Property certain site improvements identified in Schedule B hereto ("Site
Improvements"), in accordance with the Construction Plans.
(b) The cost of the Site Improvements are referred to herein as the "Public
Redevelopment Costs." In order to make the development of the Minimum Improvements
economically feasible, the Authority will reimburse the Redeveloper for the Public Redevelopment
Costs in the maximum amount of $32,000 in accordance with the terms of Section 3.3 hereof.
In the event that the Public Redevelopment Costs exceed $32,000, such excess costs shall
be the responsibility of the Redeveloper. The Authority shall have no obligation to the Redeveloper
or to any third party with respect to any defects in the construction of improvements financed or
reimbursed by the Authority as Public Redevelopment Costs.
Section 3.3. Reimbursement of Public Redevelopment Costs. The Authority will
reimburse the Redeveloper for Public Redevelopment Costs paid by the Redeveloper pursuant to
Sections 3.2 in the total amount of $32,000, in accordance with the following terms and conditions:
(a) The Public Redevelopment Costs will be paid by the Authority to the Redeveloper
in semi-annual installments, with interest at a rate of 7.5 percent per annum, payable on each
February 1 and August ("Payment Dates") commencing August 1, 2000 and concluding no later
than February 1, 2009, which payments will be made in the amount of and to the extent of
Available Tax Increment as defined herein.
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(b) The tenn "Available Tax Increment" means 80 percent of the Tax Increments paid
to the Authority with respect to the Redevelopment Property during the six months preceding any
Payment Date; provided that Available Tax Increment shall include any Tax Increment paid to the
Authority with respect to the Redevelopment Property at any time prior to the first Payment Date,
and shall not include any Tax Increments received by the Authority after February 1,2009.
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(c) Interest shall accrue on the unpaid principal amount of the Public Redevelopment
costs from the date of compliance with Section 3.3(f) herein (the "Accrual Date"). Payments by the
Authority under this Section shall be applied fir&t to accrued interest and then to unpaid principal.
Interest accruing from the Accrual Date to the first Payment Date shall be compounded semi-
annually on February 1 and August 1 of each year and added to principal. The Authority may
prepay in whole or in part the principal sum and all accrued interest payable under this Section at
any time without premium or penalty. No partial prepayment shall affect the amount or timing of
any other regular payment otherwise required to be made under this Section.
(d) The Authority's obligation to pay the Public Redevelopment Costs shall terminate
on the earlier of the Payment Date on which the Redeveloper has been fully reimbursed for the
amount of the public Redevelopment Costs together with interest thereon, or February 1, 2009,
whichever date occurs first. The authority shall have no obligation to pay any portion of the Public
Redevelopment Costs that remain unpaid after February 1, 2009.
(e) The Authority shall not be obligated to make any payment under this Section if: (i)
the Authority has not issued the Certificate of Completion for the Minimum Improvements; (ii)
there is an Event of Default on the Redeveloper's part under this Agreement that has not been cured
as of the Payment Date; (iii) the Authority has not approved the Lease with the Initial Tenant; (iv)
the Redeveloper has failed to comply with the payment procedures described in paragraph (f)
herein.
(f) By no later than the date required for completion of the Minimum Improvements
under Section 4.3 hereof, the Redeveloper must submit to the Authority a certificate signed by its
duly authorized representative stating that the Redeveloper has paid the Public Redevelopment
Costs in at least the amount of $32,000 and that no Event of Default has occurred and is continuing
under this Agreement. The certificate must be accompanied by evidence reasonably satisfactory to
the Authority that the Public Redevelopment Costs have been incurred and paid by the
Redeveloper. Such evidence must include paid invoices or certified construction draws. The
Authority shall promptly notify the Redeveloper in writing when the Authority detennines that such
evidence is satisfactory. If the amount of Public Development Costs certified by the .Redeveloper
and approved by the Authority is less than $32,000 the total reimbursement under this Section shall
be reduced to such lesser amount.
(g) The Redeveloper acknowledges that the Authority makes no representations or
warranties as to the amount of Available Tax Increment or whether such revenues will be sufficient
to pay Public Redevelopment Costs and interest thereon. Any estimates of Available Tax
Increment prepared by the Authority or its financial consultant in connection with this Agreement
or the TIP Plan are for illustration purposes only and the Redeveloper is not entitled to rely on such
estimates for any reason.
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Section 3.4. Administrative Costs. The Redeveloper agrees that it will pay all
Administrative Costs as hereafter defined. For the purposes of this Agreement, the term
"Administrative Costs" means out of pocket costs incurred by the Authority attributable to or
incurred in connection with the negotiation and preparation of this Agreement and other documents
and agreements in connection with the dcvelopment contemplated hercunder. Administrative Costs
shall be evidenced by invoices, statements or other reasonable written evidence of the costs
incurred by the Authority. The Authority acknowledges that the Redeveloper has deposited with
the Authority the amount of $5,000 for payment of Administrative Costs. Upon issuance of the
Certificate of Completion for the Minimum Improvements, the Authority shall return to the
Redeveloper any balance of such deposit that the Authority reasonably determines is not needed to
pay Administrative Costs. If at any time the Authority determines that Administrative Costs will
exceed $5,000, the Redeveloper shall pay any additional Administrative Costs within 10 days after
receipt of a written invoice from the Authority. '
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Section 3.5. Job and Wal!e Covenants. By no later than two years after the first date on
which the Redeveloper receives any tax increment payment under Article ill hereof (the
"Compliance Date"), the Redeveloper shall cause to be created on the Redevelopment Property by
the Initial Tenant at least 5 new full time equivalent jobs (over and above any jobs maintained by
the Redeveloper or any Tenant in the State as of the date of this Agreement), each such job to pay
an hourly wage of at least $14.10 exclusive of benefits. The Redeveloper shall submit or cause to
be submitted to the Authority a written report by the Compliance Date describing employment and
salaries in sufficient detail to enable the Authority to determine compliance with this section. If the
Redeveloper fails to comply with any of the terms of this Section 3.5(a), the Redeveloper shall
repay to the Authority any payments made by the Authority to the Redeveloper pursuant to this
Agreement. Nothing in this Section 3.5(a) limits any other remedy available to the Authority under
this Agreement or any other agreement between the Authority and the Redeveloper.
Section 3.6. Local Contribution. (a) As the local contribution elected by the City upon
approval of the TIF Plan, the Authority shall pay, cause to be paid or forgiven by the City, or any
combination of the foregoing, up to $8,000 of the SAC and WAC fees (the "Fees") that would
otherwise be due to the City and borne by the Redeveloper.
(b) Upon any Event of Default (as defined in Section 9.1 of this Agreement) by the
Redeveloper that results in a termination of this Agreement before the Maturity Date or repayment
by the Redeveloper to the of the assistance provided hereunder, the Redeveloper shall, upon
demand by the Authority pay to the Authority (or the City at the Authority's discretion), the full
amount of the Fees for which the Redeveloper would have been responsible absent this Section 3.6.
Nothing in this Section 3.6 shall be construed to limit any other right or remedy to which the
Authority is entitled under this Agreement or otherwise.
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ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will
construct the Minimum Improvements on the Redevelopment Property in accordance with the
approved Construction Plans and at all times prior to the Maturity Date will operate and maintain,
preserve and keep the Minimum Improvements or cause the Minimum Improvements to be
maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good
repair and condition.
Section 4.2. Construction Plans. (a) Before the Redeveloper commences construction of
the Minimum Improvements, the Redeveloper shall submit the Construction Plans to the City
Building Official, who shall review such plans on behalf of the Authority. The Construction Plans
shall provide for the construction of the Minimum Improvements and shall be in conformity with
the Redevelopment Plan, this Agreement, and all applicable State and local laws and regulations.
The City Building Official will approve the Construction Plans in writing if: (i) the Construction
Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform
to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all
applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction
Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction
Plans do not provide for expenditures in excess of the funds available to the Redeveloper for
construction of the Minimum Improvements; and (vi) no Event of Default has occurred. No
approval by the City Building Official shaH relieve the Redeveloper of the obligation to comply
with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local
laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance
therewith. No approval by the City Building Official shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the
time of submission, such Construction Plans shall be deemed approved unless rejected in writing by
the City Building Official, in whole or in part. Such rejections shall set forth in detail the reasons
therefore, and shall be made within 30 days after the date of their receipt by the City Building
Official. If the City Building Official rejects any Construction Plans in whole or in part, the
Redeveloper shall submit new or corrected Construction Plans within 30 days after written
notification to the Redeveloper of the rejection. The provisions of this Section relating to approval,
rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the City Building Official. The City Building Official's
approval shall not be unreasonably withheld. Said approval shall constitute a conclusive
determination that the Construction Plans (and the Minimum Improvements, constructed in
accordance with said plans) comply to the City Building Official's satisfaction with the provisions
of this Agreement relating thereto.
(b) If the Redeveloper desires to make any material change in the Construction Plans
after their approval by the City Building Official, the Redeveloper shall submit the proposed change
to the City Building Official for approval. If the Construction Plans, as modified by the proposed
change, conform to the requirements of this Section 4.2 of this Agreement with respect to such
;;~;;;lY approved Construction Plans, the C:~ Building Official shaIl approve the Pro,:~
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change and notify the Redeveloper in writing of its approval. Such change in the Construction
Plans shall, in any event, be deemed approved by the City Building Official unless rejected, in
whole or in part, by written notice by the City Building Official to the Redeveloper, setting forth in
detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the
notice of such change. The City Building _ Official's approval of any such change in the
Construction Plans wHI not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Redeveloper shall commence construction of the Minimum Improvements by October
I, 1998. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the
Minimum Improvements by December 31, 1998. All work with respect to the Minimum
Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property
shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved
by the Authority.
The Redeveloper agrees for itself, its successors and assigns, and every successor in interest
to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Redevelopment Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified in
this Section 4.3 of this Agreement. Subsequent to conveyance of the Redevelopment Property, or
any part thereof, to the Redeveloper, and until construction of the Minimum Improvements has
been completed, the Redeveloper shall make reports, in such detail and at such times as may
reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect
to such construction.
Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of the Agreement relating solely to
the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority will furnish the Redeveloper with an appropriate
instrument so certifying. Such certification by the Authority shall be a conclusive determination of
satisfaction anq termination of the agreements and covenants in the Agreement and in the Deed
with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the
Minimum Improvements and the dates for the beginning and completion thereof. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Redeveloper to any Holder of a Mortgage, or any insurer of a Mortgage, securing
money loaned to finance the Minimum Improvements, or any part thereof.
(b) The certificate provided for in this Section 4.4 of this Agreement shall be in such
form as will enable it to be recorded in the proper office for the recordation of deeds and other
instruments pertaining to the Redevelopment Property. If the Authority shall refuse or fail to
provide any certification in accordance with the provisions of this Section 4.4 of this Agreement,
the Authority shall, within thirty (30) days after written request by the Redeveloper, provide the
Redeveloper with a written statement, indicating in adequate detail in what respects the
Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions
of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the
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opinion of the Authority, for the Redeveloper to take or perform In order to obtain such
certification.
(c) The construction of the Minimum Improvements shall be deemed to be substantially
completed when the Redeveloper has received a certificate of occupancy from the responsible
inspecting authority.
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SCHEDULE B
Curb, asphalt
Excavation and grading
Landscaping
Water and Sewer (brought to building only)
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HRA Agenda - 9102/98
9.
Consideration of calliD!! for a public hearine for lease of the HRA property located
at 3 Walnut Street.
A. REFERENCE AND BACKGROUND:
On August 18, 1998, Commissioner Murray and Koropchak attended the closing of the
Schliefproperty located at 3 Walnut Street. Minnegasco will check or service the gas
appliances on September 4 and ServiceMaster submitted an estimate of $254 to clean
1,300 sq ft of carpet. Work to be completed the week of September 7.
The HRA must hold a public hearing for disposition of lands, I was unaware that a public
hearing must also be held when leasing out property. Therefore, the commissioners are
requested to call for a public hearing. It is recommended the commissioners consider a
special meeting prior to the next regular October 14 meeting for the public hearing and to
accept bids for demolition of the 225 West River Street structure. This to expedite
leasing the property and demolition ofthe other property. Enclosed is a copy ofthe
public notice for the newspaper.
B. ALTERNATIVE ACTION:
1.
A motion to call for a public hearing for lease of the property located at 3 Walnut
Street. Public hearing date of
2. A motion to deny calling for a public hearing.
3. A motion to table any action.
C. RECOMMENDATION.
Recommendation is alternative no. 1
D. SUPPORTING DATA:
Copy of public hearing notice.
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NOTICE OF PUBLIC HEARING
CITY OF MONTICELLO
HOUSING AND REDEVELOPMENT AUTHORITY
COUNTY OF WRIGHT
STATE OF MINNESOTA
Notice is hereby given that the Housing and Redevelopment Authority (the
"Authority") of the City of Monticello, Country of Wright, State of Minnesota, will hold a
public hearing at approximately 7:00 p.m., at the City Hall, Monticello,
Minnesota, relating to the proposed rental property located within Central Monticello
Redevelopment Project No.1.
The property proposed for lease is located at:
3 Walnut Street
Monticello, Minnesota
All interested persons may appear at the hearing or prior to the meeting present interest
in writing to the Office of the City Administrator, 250 East Broadway, no later than 9:00
a.m. Wednesday,
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Rick W olfsteller
City Administrator
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HRA Agenda - 9/02/98
10.
Consideration to accept a counter-offer for the property located at 225 Front Street.
A. REFERENCE AND BACKGROUND:
At the August meeting, the HRA tabled consideration of the July 24, 1998 counter-offer
for the property located at 225 Front Street until current HRA financial statements were
prepared. The said property is currently owned by Rich and Marian Carlson. Enclosed
are two correspondence to the Carlsons' attorney from the HRA Executive Director
relating to the HRA's actions. You will recall, the counter-offer of July 24 had a
withdrawal date on the offer of sale as August 10. I have not heard from the seller or the
seller's attorney.
On Wednesday, August 19, Commissioner Murray and Koropchak were members of a
delegation to market Monticello and assess a proposed restaurant development for the
West Bridge Park area. The appearance of the Blackwood's Restaurant in the photos was
very impressive, the menu appeared extensive, and the developer's appeared to know
their business and were conscious of the importance of community involvement. It is my
understanding at the last Parks Commission meeting, Real Estate Agent Rich Carlson
was present and expressed perhaps the need to request proposals for development of the
park site as he has been working with a second interested party.
In conversation with Brad Johnson, the London Developers are continuing their process
for selection of a location. Monticello, Hutchinson, and Marquette, MI were the three
locations mentioned for construction of a restaurant in 1999. The local comparison is
between Monticello and Hutchinson. Hutchinson's lunch draw is four times that of
Monticello. Mr. Johnson will be going to Duluth next week. It was the intent ofthe
Monticello delegation to take a trip to the Duluth area after Labor Day for a visit to one or
more of the Blackwood's restaurants. It was suggested by the Mayor to designate this a
Saturday trip.
Please review the agenda item of August 5 as the HRA alternative actions remain the
same. The HRA might recommend a developer purchase the parcel or the city purchase
the parcel outright for future exchange of park land or additional park land. If the City
would like the HRA to purchase the parcel perhaps the City would consider an interest-
free loan.
The City Administrative questions the immediate need of the property and the likelihood
of seller selling the property at $180,000.
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HRAAGENDA
AUGUST 5, 1998
8. Consideration to accept a counter-offer for the property located at 225 Front Street.
A. Reference and Background:
COUNTER-OFFER: As you recall with the BRA agenda of July 1, commissioners
received copies of the correspondence between Attorney Peterson and the HRA. It was
anticipated the HRA would receive and consider a counter-offer at the July meeting. An
option agreement and purchase agreement was offered the Carlsons in November 1997,
the purchase offer price was $130,000 as is. The appraisal value was $165,000.
Enclosed is a copy of the counter-offer of July 24. The counter-offer is $179,500 as is,
closing on or before 18 months, City reimburse $300 survey fee, HRA responsible for all
closing fees, Carlson's allowed to remove certain residential items, Carlson's permitted to
use HRA garage at no cost, and Carlson's allowed to remove fallen trees. The "as is"
appears to be in conflict with request for remove of items and trees.
FUNDS AVAILABLE: Treasurer Wolfsteller reports as of June 30, 1998, the BRA
General Fund and TIF Fund had a total cash balance of$165,000.
BRA General and TIF Fund Cash balance
Pledged dollars for redevelopment acquisition
TOTAL CASH
$165,000
$ 35,000
$200,000
LESS COMMITMENTS
Industrial Reserve Fund
Hoisington
NAWCO
Schlief
TOTAL COMMITMENTS
$150,000
$ 15,000
$ 10,000
$ 20,000
$195,000
CASH LESS COMMITMENTS
$ 5,000
Additionally, the HRA agreed to $500 annually for Lake Tool 10% local contribution and
$10,000 toward one-half of Allied Companies 10% local contribution. Between April and
June, the BRA closed on the Hawkins property.
It appears for the BRA to consider a counter-offer at this time a loan from the city would
be necessary.
REDEVELOPMENT: The counter-offer is high and the HRA funds are low. Having
earlier heard a presentation from Brad Johnson and hearing input from the Parks
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HRA AGENDA
AUGUST 5, 1998
Commission and MCP relating to the proposed north anchor redevelopment project, the
HRA will need to determine the importance and uniqueness of this property to the
proposed project or the overall downtown and riverfront revitalization plan.
1. Is the parcel considered blight, substandard, or deteriorated?
2. Was the parcel previously identified for redevelopment within the north anchor? If
the parcel is identified for future park land or green space, the 18 month closing
becomes a mute point.
3. Will the structure be razed or removed? If the HRA plans to raze the structure,
the removal of items from the residence is a mute point.
B.
Alternative Action:
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1.
A motion accepting a counter-offer for the property located at 225 Front with the
following terms:
a) Purchase price of "AS IS", the sum of deposited
as earnest money.
b) Reimburse or not reimburse $300 survey fee.
c) Closing date of
d) HRA responsible for all closing costs or seller/buyer share closing costs as
per normal purchase agreements
e) Seller has right or no right to remove certain items from residence.
t) Seller has right or no right to remove fallen trees.
g) Seller has the right of use ofHRA garage with or without a Storage
Agreement, seller obtains necessary personal insurance.
h) Seller waives right of relocation benefits.
2. A motion to decline the purchase of the property located at 225 Front Street.
3. A motion to table any action.
C. Recommendation:
Wolfsteller and Koropchak would recommend purchase at the appraisal price of$165,000~
however, ifthe property is vital to the revitalization plan and in the future if the BRA were
to condemn and pay relocation costs perhaps the HRA would spend $180,000. Noting
the BRA cash balance, the HRA would need a loan from the city or consider borrowing
the committed industrial funds.
D.
Supporting Data:
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lIRA AGENDA
AUGUST 5, 1998
Copy of the counter-offer letter and previous BRA offer and purchase agreement.
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August 10, 1998
MONTICELLO
John T. Peterson
Attorney at Law
Johnson, Larson, & Peterson
908 Commercial Drive
Buffalo, MN 55313
Re: Richard and Marion Carlson PropertylPurchase Agreement
Dear Mr. Peterson:
At the Housing and Redevelopment Authority (HRA) meeting of August 5, 1998, the commissioners were
asked to consider accepting the counter-offer of $179,500 "as is" for the property located at 225 Front
Street.
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In order to manage their fmancial operations in a responsible manner, the HRA passed a motion to table any
action relating to the July 24, 1998, counter-offer from the Carlsons. A second motion authorized HRA
staff and the HRA financial consultants to prepare current cash flow statements and cash flow projections,
and to call a special meeting of the HRA to review the prepared fmancial infonnation thereby assisting the
HRA in budget planning for 1999 and to serve as a guide for redevelopment decisions.
The tentative date of the special meeting is set for August 20, 1998, 7:00 p.m. at City Hall. Official calling
of the public meeting will meet the statute requirements governing the authority.
Thank you for consideration of the HRA decision. I will contact your office following the special meeting of
the HRA. If you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
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Ollie Koropchak
Executive Director
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cc:
HRA File
Rick Wolfsteller, City Administrator
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Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3170 . Fax: (612) 271-3272
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August 20, 1998
L--
MONTICELLO
John T. Peterson
Attorney at Law
Johnson, Larson, & Peterson
908 Commercial Drive
Buffalo, MN 55313
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Mr. Peterson:
.
In a letter dated August 10, 1998, a tentative date of August 20 was targeted for HRA
commissioners to review prepared financial information. Unfortunately, the meeting of August 20
did not materialize as both the commissioners and financial consultants were busy with end-
of-the summer vacations prior to the commencement of the school session. The commissioners
will review the financial information on September 2, the date of their regular meeting.
If you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
o 9L~ \:<.0\ ~-9u9~~
Ollie Koropchak
Economic Development Director
cc: HRA File
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Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 · Fax: (612) 295-4404
Offic(' of I'uhlic Works, <}()l) CJolf ('ourse Rd. Monticello. MN 55162 . (6171795-117(). Fax: (612\ 271-.1272
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HRA Agenda - 9/02/98
11.
Consideration to review the appraisal for the property located at 218 Front Street
and authorization to proceed.
A. REFERENCE AND BACKGROUND:
Again, the HRA tabled any action of this item in August until review of the financial
statements. Please refer to the enclosed August agenda item and the appraisal. Deb
Otten did contact the HRA office as to the decision of the HRA in August.
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. lIRA AGENDA
AUGUST 5, 1998
9. Consideration to review the appraisal for the propertY located at 218 Front Street and
authorization to proceed.
A. Reference and background:
At the HRA meeting in July, direction was given to contact Deb Otten, power of attorney
for the O'Connor property, to inquire of the interest to sell and the asking price. Deb
expressed an interest to sell but had no idea of an asking price. She indicated the property
was insured for some $90 thousand. Also, the property is rented out but Deb was willing
to make arrangements with the tenants for entry to the property if the BRA so desired an
appraisal. Commissioner Frie was contacted and advised of the conversation with Deb,
Frie's direction was to proceed with an appraisal and recommended Appraiser Jerry
Nagorski.
A copy of the completed appraisal is enclosed. Remember, through the Minnesota
Statutes, an appraisal of the BRA is confidential. Please try to refrain from
disclosing the appraisal price at the meeting.
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The estimated market value for payable 1999 is $71,700. Land $18,800 and building
$52,900.
Following review of the appraisal, the HRA should consider whether to make an offer to
purchase as a buyout, option offer, or contract for deed and determine a purchase price.
B.
Alternative Action:
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1. A motion to approve a purchase price of and to authorize
Kennedy & Graven to draft a purchase agreement buyout, option offer, or
contract for deed for the parcel located at 218 Front Street. Terms as so
determined.
2. A motion not to proceed with purchase of the parcel located at 218 Front Street.
3. A motion to table any action.
C. Recommendation:
Again, the HRA will need to determine the importance of the parcel in relationship to the
revitalization plan and perhaps will need to request a loan from the city.
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p,.opert1 Desc:,.lpUon
Surrmary Appraisal Report
UNIFORM RESIDENTIAL APPRAISAL REPORT File No.
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Property Addre$s 218 Front st City /<Dnticello Stale /01)/ Z,P Code 55362
Legal DescriptIon See Attached Leqal Co.Jnly wriqht
Asses:sor's Parcel No. 155-010054070 T.. Vea' 1998 RE. Ta.es $ 781 Spec;ol A..essmenls $ 369.21
: Borrower N/A C~Jrrcnt Owner o Conner-Otten Occuoanl: l Owne' OCl Tonanl r l Vacanl
Pmpe,ly 'ights MwalSod TXT r.e Simpl;;r T Lea..hold ProteCt Type IPUO . r "T COndominium (HUONA O"ly) HOA$ 1M<>,
NeighbOrhood or Project Name ci/A Map Reference OFF Census Trocl 1002.01
Sale Price S N/A Qate 01 Sale N/A DescrlOtion ard $ amount 011031'1 eharges/c:.ot'Sces$lOnS to be paKj by s@l'er None
lende,'Client HRA Md'.'$ /<Dnticello, MN
Aporal:!;@r Terry Naqarski Address Biq Lake MN
Localion U Urban [], SuburbanO Rural Predominant Single family housir\g Pre$ent land use %. Land use change
PRICE AGE
Bum up [ID Over 75~. 025-75,. 0 Under 25'. occupancy S(OOo) (yr,,) One lam"y ~ l!J Nolli~elyD li~eJy
Growth rate OR.pid og St.b.. o SlOW []J Ow"'" ~LOW~ 2.4 family ~- o In pfOces5
Prooerty values 0 Increasing []J Slabl. o Qeclioing o Te"",,1 175 High 75 Multi-family ~ To:
~mandl$UPPIy 0 Shortage []I In I>3I.nc. 0 (Ne, supoly []] vaC:lnt (0,5'1\) ,....~ Pledami".nt ""~.,, Comm.relal 20
M.rk.ting time Fl1 Und.r 3 mo.. n 3-6 mo.,n Over 6 mo. nVaeanlI""'S'II) 100 30
Note: Race and the racial compo'SiUon of the nei9h)bj~rhOOd ~rft not appraisal factors. . the City of r1Jnticello
N.ighborhood bound."e. aOO charaeWI.tie>: Sub ect ~s located on the North s~de of
near .. parks and downtown area.
<
Fa~~;. th.t .II.el the ma,k.tabllity 01 the p'ooerti.. in the "elghborhOOd (proximily 10 emoloyment .nd amenitie., emplormenl "'bilit~eallo m.'~ol, ele,):
, Ma or employment is in the Twin Cities with some lMIlufacturinq in /<Dnt cellor erst Buffalo.
. Most neiqhborhocd amenities are within a reasonable distance.
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Ma'~el eondll""", in the ""bleel neighborhood (inclciding support for lhe above ooncluS>On$ relaled to the trend of property value., demandfSupoly. .00 m.tketlll\j hme
_ _ .ueh a. d.'a on competitive pmp.rlie. lor ~~e I" the nei9hborhood. de.eriplion 01 the pr.".lenc. of .ale. and f1na"eing conee..lons. .Ie.):
Market is stable and not chanqin. Selhng price is 98% of asking price. Market time is
1 - 3 rronths. Current interest rates have caused an increase in narket actiVltyand the sub-
ject will receive the benefits of good marketing without any special financing. There are
no financing concessions. This is consistent with the market area.
m ~;~, '"~~"~ ~ '""" ...~.. ~ ~,'re .-,-. -~. ~ - """"" ~...~ ,~" TI ~. ~No
Approximate lotal number of unils in the SUbiect project ApPfCl)(imate total number of unils '0( sale in lhe subiect orotect
., Describe common elements and recrer:ttional facilities:
Dimensions 99 X 165 X 99 X 148 approx. TOOO\l,aphy Few trees-gentle slope
SiI. are. 15493 sq ft approx Corner l~q, Ve. IE] No Size Av!?.rage tor area
Soecific tonit>g e1..s,fiealion and d..criplion OCD-Central Catmunity Dl.strict Shape Irregular
Zoning compliance [!] Legal 0 Legal nonconlo1minlJ (GtandliJl1'\e1td u~1 0 Illegal 0 No zoning Orainage Adequate at wspection
HiQheSf & be$1 use a$ imoroved: rxl Present use n .Olher use \$xpl3.in) View SlllIilar Hanes
Utili lie. PubliC Ottler Off~9ite Improv9ment~ Type Public Private Lntid.e.oi"ll Average for area
E.lectricily G9 60 Amp SI,eet AsP'lalt tij 0 DriveWay Surface -XSpanl'l: Un ve
Ga. CKJ Curb/gutter Conc ROlled 0 Aooarent en.ement. None KnoWn
Water [Xl Sidewalk None ~ R FEMA Special Flood Ha.,n:! Are. 0 Ve. Q[\ No
Sariitary sewer [g] Street lights Yes FEMA 1.0,," C Mal> Dale 11-1-79
Storm sewer FXl Alley None FEMA Map No. #270541-0005B
CommAnl. (.pparent adve,.e ...emen.., encroachments. special .....$menl.. slid. area., i'leg.1 or legal nonconforming zoning us.. etc.): There are
no apparent easements, encroachments. or other conditions noted that ....:>uld adversely affect
market value. The site is typical for the area and COIlpatible with surroundinq properties.
GENERAl DESCRIPTIOIJ EXTERIOR DESCRIPTION FOUNDATION BASEMENT INSUlATION
. No. 0' Uriils 1 Foundalion Cone Blk Stab None Area Sq, Ft. 840sq ft Roof _ 0
No. 01 Stories 1 ~ stot" EJlleriof" Walls stuccOJJi.V; Crawl Space None ~ Finished -0- Ceiling Avg_ [K]
Type 100I.fAII,) Det Rool Su,laee As l:)fi.3.l t/A >easemenl 840so ft Ceillll\j Open Jois Wall. ~ rg
Oesign (Styte) 1.1,. stot" Gull." & Ownspl., None SUmp Pump Yes Wall> COnc Blk :~: -8
ExiSling/Proposed Existin' Window Type Dble Hunq O.mp..." No evidence Floor eoncrete
Age IV...) 45 Yrs Storm/Screens Yes Selllemenl No evidence Ou"lde Enlty None Unknaw'" ~
E ffectiva .Age (Yrs.) 10 E Manufactured House No l"f..I.tion No evidence
. ROOMS Foyer LiVing Dining Kitchen ~n Family Rm. Rec. Rm. Bedrooms I Baths Laundry Other Are. Sq. FI.
8aS@fTlen! 1 840
. level t 1 1 1 1 894
L.vel 2 2 -:r 504
Finished area above grade conrains: 5 Rooms; 3 Bedroom('); 1.5 B.lh(.); 1398 SQuare Feel 01 GroSS Living Area
INTERIOR Mat@rials/Condition HEATlNGlryant KITCHEN EOUIP. ATTIC AMENITIES CAR STORAGE:
. Floors Hardwo:Jd/Avq Type GFA R.trtger.lot 0 None ~ Fo,opIaeoiS) · 0 None 0
Wail. Drvwall/Avq Fuel Gas Rall\je/Oven 0 Slai~ P.tio -0 Garage 1 # of ems
Trim/Finish Birch Avq Condillon Avq Dispo.al 0 OmP St.lr Oeek 0 Attached 12)(20
8alh FIOOf Vinvl Avq COOUNG Dishwa.her 0 Scuttle Porch Glass ITI Oel.ched
Bath Wain.eot Vinvl Avq Cent,al None Fan/Hood B Floor ~ Fe""e 0 Built-In
000tS Birch Avq Other Mi(:rowaYG Heated Pool R Carport
Condlllon \'Ia$hetlOlyern Finished Driveway 2+
Additional f.atu.... (special energy elllei.nt ilems. etc.): Glass p:>rch.. stucco exterior
. Condition of the improvements, dePfecialion (plly$tc:3I, functional, and external), tepairs needed, Quality of construction, temodehnQ/addilions. etC.:
NonMl _oci.ti= rot"'. There ~ ro im=<tant f~tioriol ~ exte=al i_.
Adverse environmental condilions (such 89, but not limited to. hazardOuS waste" toxic subslance'!. etc.) pre-sen~ in the imorovements, ~ite. rhe
Immediate vicinily 01 I"" $Ublecl prope,ty,: No adverse conditions observed.
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1=",eO<Jte Mac F=orm 10 ..9J lOCH, PAGE. 1 OF 2 FnnnM!' k1.a~ FOi'm 1004 ..oJ
Bl,t.J(IE\MX)O BuSINess rQflMS ll80014U.1OO4
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ESTlMATEO SITE VALUE . -...... ..... . .....,-$ 30000 Comments on Cost Approach (such as, source 0' cost estimate,
ESTIMATED REPRODUCTION COST-NEW-Of IMPROVEMENTS: sile value. square foot calculation and lor HUO. VA and FmHA. lhe
. Owelll,.. 1398 So.FltJ$~ -$ 69201 estimated remaining econonliq life of lhe property):
Sq.FIU$~ - Coo t Source: Marshall Swift am local
Glass Porch - 3000 ooilders.
G3raQ_,Ca,porLlli SQ. FI @ $ ~ - 3840
Total Estimated Cost New. . . . . . . . . . . . . .. $ 76041 Aoe/Life = 10160 years
l." -16% Physic.1 Functional Exlarnal Remainino Econcrnic Life is 5n years
. Depredation - 1 2166 I -0- I -0- -12166
M$
Depreciated Value of Improvements. . ... . . -..... ." -$ 63875
"As-is" Va.lue of Site Improvements. . . , . . .... , ....,-$ 2000
INOICATEO VAlUE BV COST APPROACH. " , .......-$ q<;A7<;
ITEM SU6JECT COMPARABLE NO, 1 COMPARABlE NO.2 COMPARABLE NO.3
218 Front st 513 Vine st 424 Broadway E 342 4th st E
Address /<Dnticello /<Dnticello /<Dnticello /<Dnticello
PrOl!.imity to Subiect - , . .' " 10 Blocks SW 6 Blocks SE 7 Blocks SE
Sales Price $ N/A I Pi,t":-'''''',.....-..;;;r$ 88900 ''1l'~i $ 90700 ..~.,~~~ ,;...~':~;'. ..~.~. _ ~_:'~,~ S 79000
Price/Gross Uv. Area $ JZl $ 62.34 IZI ;,.,~I:Mi~:#~;. $ 72.50 JZl. . " ~...,,: $ 45.93 IZI ""'/ ,..... ".' ,.",..,
Oala and/ot Inspection MrS MrS MrS
Verification Source Realtor Realtor Realtor
VAlUE ADJUSTMENTS DESCRIPTION DESCRIPTION I + ('1 $ ......''''''', DESCRIPTION 1+ (.1 $ ......1""'" DESCRIPTION ,.1-)$......'-
Sales or Financing >~~rS'W;~~~$: ! , !
,
Concessions FHA FHA I Conv 1
Dale 01 SalolTime ~'t'-<-:'.~.','~j'~~' ..'~~I ;':"". 11 -~7CL I 2-98CL , 5-98CL I
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Location Averaqe Averaqe , Averaqe , Average ,
, , ,
Lea._hold/Fee Si"",,,, Fee Simple Fee simple i Fee Simple ! Fee Simple i
Site 99x148/AVq 66x148/Avg i +2000 99x165/Avg , 99x165/Avg ,
View Averaqe Average , Average , Average ,
I , ,
DeS'9n and Apoeal ],),St6riTAvq HStorv/Avq I ITStory/Avq : Hstory/Avg I
(Na,lily 01 Construction Averaqe Averaqe7Gcod: -3000 Averaqe , Averaqe ,
Ago 45 Yrs-l0E 38 Yrs-8E , -2000 46 Yrs-7E ! -3000 58 Yrs-l 4E i +4000
Condition Averaqe Averaqe I Averaqe , Average ,
- , tolal I 8I:Ilms : BalM I TD~
Above Grade TQlal I !dim; I Qall't:!i TQI~ I rkl!m~ I BalM
Aoom Count 5 , 3 ' 1.5 7 , 3 , 1 I 5 , 3' 1 I 7 I I 1 :
. 1398 1426 1251 +2900 1720 Sq,FI,1 -6500
Gross LiviOlJ Area So, ft. &" fl, I Sq,fl. ,
Basement & Finished 840/0 742/513 i -1500 896/0 ! 800/0 -\
Rooms Below Grade i I
Functional Utility Gcod Good Good , Good I
,
HealinglCooIi,.. GFA/None EFA/None GFA/CAC , -1000 GHW/None ,
. ,
Energy Ellic,entltoms None None ; None , None !
GarB~e/Carport 1 car/Att Dble/Det -3000 Dble/Det , -3000 1 car IPet ,
Porch, Pa'io. Deck. Glass Porch Glass Porch Deck, Patio! Glass PorCh!
Fi,eplaco(s), ole. I I
Fence, Pool, ete, , I
,
IStorage Shed ' -2000 Shed 14x24 , -1000
Net Adj. (lotan I l + I XI. ,$ 7500 rl+I"Xl. $ 6100 r '1 .""TlrT- $ 3500
Adjusled Sales Price Gross;, 12~ Gross:'.)3' Gross: 14%
01 Comparable Net: 8%.' ,.; $ 81400 Net:. 6%,:::' $ 84600 Net: 4% ,$ 75500
CommenlS on Sides Comparison (including lhe subject prop@rty's compatibility 10 the neighborhood. ale.): All comparables are gl.ven equal
weiqht. In ord~ to consider the best cx::moarables. it was, necessary to incl\rle sales further
than 1 mile and over 6 IIOnths. No adiustments for time or distance were needed.
tTEM SUBJECT COMPARABLE NO. I COMPARABLE NO.2 COMPARABLE NO. 3
Dale, Price and Dllli N/A N/A NIl'. N/A
Soufc8. to( PfiOr sales
within year 01 appraisal
Analysis of any cvmmt agreement 01 sale. OPlion. or 'isti~ 01 1M subject proper IV and anaty$is 01 arry prior sales 01 subject ard compafableS wilhln one year 01 U. date of aopriltsat.
"'h^~^ h~< '^^ __ ^~1_ ," ....4.....t- t-n", 1",,," .._~_ ""1",,, "..'" 1i,,"~ "hr."",
INDICATEO VAlUE BY SALES COMPARISON APPROACH. . . . . . . , . . . . . . . , . , . . . . . . . . . . . . . . . . , , . . . . . . , ' , . , , . . . . $ 6100U
INOI"A BY 1",,,nM" A"PRnAt'H III A~I I M.,.o' Ron' . '''" x ,,~.. ,,~, Mul"nlior _ot N/A
This appraisal is madelii...l "as is.' subject 10 the repai(s, altet"8tions. inspections or conditions lisled b@!:1ow subtect to com~liofl per ptlnS and specific:thons.
CO<ldillOn. 01 Approisa,_J'!Q survev has been done bv this Appraiser to determine easenents, encroachments
and riqht of waYS. .
Final Recoocl!iallOn: There is a pendi!1o sale next to subiect for $83000-similar to subject. The Sales
,~~^ AnnT'n'lch is the nust oermane & aooronriate method of evaluation. It has developed
.1 ;m e ann reliable indicator of value. It was oiven the rrost consideration.
The purpose 0' Ihis appraisal is 10 eSlimate the market value 01 the real property ttLat is lhe sublect ollhis report. based on lhe above cOndihons am ItIe Cetli'icaliot'\. conlirgenl
a,ld limiting conditionS. a~ maf"'el...a~ delinilion II1al3fe staled in lhe attached Freddie Mac Form 439/Fannie Mae F()(m 10046 (R!!vised 6-93 ).
I (WE) ESTlMATE mE MARKET VAlUE, AS DEFINED, OF mE REAl PROPERTY ntAT IS THE SU!lJECT OF mls REPORT. AS OF July 20, 1998
(WHICH IS THE OA2'NSPE~D THE EFFECTIVE OATE OF THIS REPORT) TO BE $ 81000
APPRAISE'" -::::k ~~, / SUPERVISORY APPRAISER (ONlY IF REOUIREO):. o Did 0 Did NoI
. Skm'l..r~ ~ . ' Sionalure
NamA /' T ski" Nome I""pecl Properly
I n~'. "o~' "in..:K 7-20-98 notA R r
Slate Certilic.olion , Minnesota Stale Stale CerliUcaUon , Stare
I ..... " _OA ._~ . 4001414 ",",. r-tl '" ","," , "on.' . "I"'"
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VaJu.Uon Sec::tlOI1
UNIFORM RESIDENTIAL APPRAISAL REPORT File No.
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F"1~1{i(1~ M.ac Form 70 a-03
lOCH.
PAGE 2 OF' 2
Bl.AKlpwOOD 6u~ESS F"ORMS . 18001 <4I.&J- \00-1
F.\lfln18 MIO f'Oi'l'ft 100" tl.~O:,
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: ._,_,__.._~~.:.:t-,.~~~&~i;~~',,!'."":.'~'.. '''.~V\~~I~~'' 'or <:..... ..,'~.~~~:~;,~'
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CJ ADDITIONAL PHOl'OGI1^PHS ON REVERSE SIDE
B\.AKEWI)OD tlll~;lflf':-,:;. j \'111,.1':' ' !l,)\~' .1.1]_ 10004
~__._. _~~, .___._~~.'.~.. ..___.1'
FRONT OF
SUBJECT PROPERTY
REAR OF
SUBJECT PROPERTY
STREET SCENE
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COMPARABLE SALE #3
COMPARABLE SALE 111
COMPARABLE SALE #2
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o ADDITIONAL PHOTOGRAPHS ON REVERSE SIDE
fllAkEWQClO ()1)SINE5$ ft)fl~~ I llll'lll ...i.1. 100-1
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(Legal-Description)
Lot Seven (7), in Block Fifty-four (54), Townsite (now City) of Monticello,
LESS AND EXCEPT the Easterly JJ feet thereof nnd ~ll of Lot Eight (8), in
Block Fifey-four (54), Townsite (now City) of Monticello, nIL according to the
plat and survey thereof on file and of record. in the Office of the County
Recorder in and for Wright County, Minnesota.
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SKETCH ADDENDUM
Borrower/Chent HRA
Property Address 218 Front St.
City Monticello County Wright
Lender HHA
Slale Mn.
ZIp Code "i'ilfi7
_.._r__ ..-____,..,..._---______._,
Bel ~~~.
-:---1 - 16.8
I.... -
30
Second-Floor
28
-~--Er Kit
~- !-.-.. ..
Living
Glass
Porch
6IEI~_ -; 9 2
9
21
Main-Floor
Garage 20
12
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DEFINITION OF MARKET VALUE, The most probable price which ,I property should bring in a competitive and
open market under :111 condilions requisite to a fair sale. lhe buyer and seller. each acting prudently. knowledgeably
and assuming the price is not affertcd by undue stimuhlS. Ir"plicit in this definition is the consummation of a sale
as of a specified date and the passing of lille from sellcr to buyer under conditions whereby: (I) buyer and seller
are lypically mOliv'lled: (2) \loth parlies are well informcd or well advised. and earh acting in what he considers his
own best interest: (3) a reasomlhic time is allowed for esposure in the open market, (4) payment is made in lerm.s
of cash in U. S. dollars or in tcrms of fimlllcial arrangements comparablc thereto: and (5) the price represents the
normal consideration for Ihe properly sold U1mtTecled by spccial or crealive financing or sales concessions. granted
by anyone associatcd with the sale.
.Adjustmenls to Ihe eompartlbtes must be made for special or creative financing or sales concessions. No adjustments
are necessary for lhose costs which arc normally paid by sellers as a result of tradition or law in a market area:
Ihese costs are readily idenlifi',ble since the seller pays these costs in virtually all sales transatt;ons. Special or
neative financing adjustmenls tan be made to the comparable property by compnrisons to rinancing terms orrered
by a third party inMitutiom,1 lender that i~ not already involved in the properly or Imn~aclion_ Any adjustment
should nol be calculaled on a mechanical dollar for dollar cost of the financing or concession bul the dollar
amount of any adjustment should approximate the market's reaction 10 the financing or concessions based on the
appraiser's judgment.
STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
CONTINGENT AND LIMITING CONDITIONS: The appraiser's cerlification Ihal appears in the appraisal reporl
is subjeel to the following condilions:
I. The appraiser will nol be responsible for matters of a legal nature lhal arrecl either Ihe property being appraised
or the litle to it. The appraiser nssumes that the title is good and marketable and. therefore. will not render any
opinions about the tille. The property is appraised on the basis of il being under responsible ownership.
2. The appraiser has provided a sketch in the appraisal reporl to show approximate dimensions of Ihe improvemenls
and the skelch is included only to a~sisl the reader of lhe report in visualizing the properlY and understanding the
appraiser's determinalion of ilS size.
.......
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J. The appraiser has esamined Ihe IlVailahle flood maps lhut are provided by the Federal Emergency M:magement
Agency (or other data sources) and has noled in the appraisal report whether the subject .lite is located in an
identified Special I"looJ Hazard Area. Because Ihe appmiser is not a surveyor. he or she makes no guarantees.
express or implied. regarding lhis determination.
.
4. The appraiser will nllt give lestimony or appear in enurt beelluse he <'f she maJe M appraisal of the properly in
queslion. unless specific arrangemellls to do so have been made beforehand.
5. The appraiser has estim.ted lhe value of the land in the cost approach al its highest and best use and the
improvements at their contributory value. These separate vuluations of the land and improvements muSI not be
used in conjunction with any olher appmisal and are invalid if Ihey are so used.
6. The apprniser hus nOled in the appraisal reporl any adverse conditions (such as. needed repairs. depreciation. the
presence of hazardous wastes. toxic substances. etc.) observed during the inspection of the subject property or thaI
he <'f she became aware of during the normal research involved in performing Ihe appraisal. Unless otherwise stated
in the arpraisal reporl, lhe appraiser has no knowledge of any hidden or unapparent conditions of Ihe properly or
adverse environmenlal conditions (including the presence of halardous wastes. toxic subslances. etc.) Ihat would
make Ihe prorerty more or less valuable. and has assumed thaI there are no such eondilions and makes no
guarantees or warranties. expre~S or implied. regarding the condition of lhe property. The appraiser will not be
responsible ror any such conditions that do exisl or for any engineering or resting Ihat might be required to discover
whelher such eondilions exist. Because the appraiser is nOI an expert in the lield of environmental hazards. the
appraisal reporl OlIlSt not be considered as an environmental assessment or the properly.
7. The appraiser obtained Ihe information. estimates. and opinions Ihal were expressed in the appraisal report from
sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not
assume respol\sibility for the accuracy of such items that were furnished by other panies.
8. The appraiser will not disclose the contents of the apprais,,1 reporl excepl as provided for in the Uniform
Slamlards of ProfessioO<lI Appraisal Practice.
9. The arpraiser has based his or her appraisal reporl and valuation conclusion for an appmisal thaI is subject to
satisfactory completion. 'repairs. or alteralions on the assumption that eomplelioo of the improvements will be
performed in a workmanlike manner.
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10. The appraiser must provide his or her prior written consent before the lender/client specified in lhe appraisal
report can distribute the appraisal report (including conclusions about the property value. the apprais,r's idenlity
aod professional design'llions. and references to any professional appraisal organilatioos or the firm with which the
appraiser is associatd) (0 anyone other tban the borrower: lhe mortgagee or its successors and assigns: the mortgage
insurer: consultants: professional appraisal organilations:any state or rederally approved financial imtitution: or any
department, agency. or instrumentality of the United Slates or any Slale or ehe District of Columbia: excepl that
the lender/client may dislribule the property description section of the report only to data colleclion or reponing
serviee(s) without having to obtain Ihe appraiser's prior written consent. The appr;liser's wrillen consent and
approval musl also be obtained before the appr"isal can be conveyed by anyone to the public through adv",rlising.
public relations. news. sales. or other media.
Freddie Mac Form 439 6-93
Page I of 2
Fannie Mae Form 1004B 6-'
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APPRAISER'S CERTIfiCATION: The Ap[lraiser certifjcs and agrees that:
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I. I have researched the subject market area and have ",Iected a minimum of three recent sales of properties most
~imilar and proximate to the subject property for consideration in Ihe sales compnrison analysis and have made a
dnllar adjustmcnt when appropriate to reflect the market rcaction to those items of significant variation. If a
signil1cant item in a comparnble property is supcrior to, or more favorablc than, the subjcct property. I have made
a ncgalive adjustmenl tn reduce the adjusted sales price of the comparable and. if a significant item in a comparable
propcrty is inferior w. or less favorable than the subject property. I have made a positive adjustment to increase the
adjustcd salcs price of the comparable.
2. I have taken into con~ideration the factors thai have an impact on value in my development of the eStimale of
mlJrket value in the appraisal report. I hnve not knowingly withheld any significant information from the nppraisal
report and I believe. to the best of my knowledge. that nil statements and information in the appraisal report are
true and CQrrecl.
J. I stated in the appraisal report only my own personal, unbiased. and professional analysis. opinions. and
conclusions. which are subject only to the cnntingent and limiting conditions specified in this form.
4. I have no present or prospective interest in the property that is the subject to this report. and I have no present
or prospective persona' interest or bias with respect to the participants in the lransaelion. I did nOI base. either
partially or completely. my analysis and/or lhe estimale of market value in the appraisal report on Ihe mee. color.
religion, sex. handicap, familial statu.. or nlllional origin of either the prospective owners or occupants of the subject
property or of the present owners or occupants of the properlies in the vicinity of the subjecl property.
5. I Iwve no present or contemplated future interest in the subject property. and neither my current or future
employment nor my compensation for performing this appraisal is contingent on the appraised value of the property.
6. I was not required to report a predetermined value or direction in value that favors the cause of the client or
any relaled pnrty, the amount or the value estimate, the attainment of a specific result. or the occurrence of a
subsequent event in order 10 receive my compensation and/or employment for performing the approisa!. I did not
hase the appraisal report on a requested minimum vnlualion, a speCific valuation. or the need to approve a specific
mortgage loan.
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7. I rer/(Jrrl1ed this "ppraisal in conformity with the Uniform Standards of Professional ,\ppmisal Pmctice that were
adorled and promulguted by the Appraisal Stanoards Board of The Appraisal Foundntion and thai were in place as
nf the effective dale of this apprnisnl, wilh Ihe exception or the departure provision of those StandarUs. which does
not apply. I aC~llo\Vlcuge that all estimale of a reasonable time for exposure in the open market is a condition in
thc delinition of Illarket value and the estimate I developed is consistent with the marketing lime noted in lhe
ncighhurhood section of this report. unless I huve otherwise slated in the reconciliation section.
.
K. I havc rersomllly inspected the interior .no exterior areas of the subjeel property and the exterior of all properties
listed as cOlnparahles in the appraisal rcrorl. I further certify that I h"ve noted any apparent nr known adverse
CQndilions in the subject improvements. on the subject sileo or on any site within the immediate vicinity of the
subject property of which J am aware and have made adjustments for these adverse conditions in my analysis of
the properly value to the extent that I had market evidence to support them. I have also commented about the
efrect of the adverse conditions on the marketability of the subject property.
9. I personally prepareu all conclusions and opinions about the real estate that were set forth in the appraisal report.
If I relied on significant professional assistance from any individual or individuals in the performance of the
uppraisa' or the prcpllrnlion of the appraisal report. I have named such individual(s) and disclosed Ihe specific tasks
perf"rmed by lhem in the reconciliation section of this appraisal report. I certify that nny individual so named is
qu:\lificd to perform the tasks. I have not authorized anyone 10 make a change to any item in the report: therefore.
if (In unauthorized change is made to the appmisal report. I will take no responsiblity for it.
SUPERVISORY APPRAISER'S CERTIFICATION, If a supervisory appraiser signed the appraisal report. he or she
certifie~ and agrees thaI: 1 directly supervise the appraiser who prepared the appraisal report, have reviewed the apprais.11
repnrl. agree with Ihe statemenls and conclusions of the appraiser. agrce to be bound by the appraiser's certifications
nUlllbcrcd .) through 7 above. and am taking full responsibility for the appraisal and lhe apprais.11 reporl.
218 Front St. Mnnri~pl1n. MN. 5~36]
ADDRESS OF PROPERTY APPRAISED:
APPRAISER: ~ _
~:;~,.~~
Dn!e Signed, -20-98
Stale Cerlificution-'" Mn.
or State License "': 4001414
Stule, Mn.
Expiration Date of Certification or License. R-ll-qq
SUPERVISORY APPRAISER (only if required):
Signature:
Name:
Date Signed,
Stale Certification-",
or State License II,
Stale,
Expirolion Dale of Certification or License:
OOid
o 0<1 Not 100pect Property'
.
Freddie Mnc Form 439 6-93
Page 2 of 2
BtAKEWOOO BUSINESS rOAMS '(80m ....3. 100.4
Fannie Mae Form 10040 6-93
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.
.
.
12.
HRA Agenda - 9/02/98
Consideration of interest to purchase the property located at 313-317 West River
Street.
A. REFERENCE AND BACKGROUND:
Derick Snell, owner of the duplex at 313 West River Street, inquired and requested the
HRA commissioners consider purchase of his property. The second-floor tenants will be
moving out in September 1998. The EMV payable' 98 is $93,100 for land and building.
The site consists of 16,335 sq ft and is described as Lot 3 & East ~ of Lot 2, Block 55.
Block 55 is not the primary target area ofthe HRA. Block 54 and 64 has been the
concentration.
B. ALTERNATIVE ACTIONS:
1. A motion of interest to purchase and authorization to contract for an appraisal of
the property located at 313 West River Street.
2. A motion of no interest to purchase the property located at 313 West River Street
at this time.
3.
A motion to table any action.
C. RECOMMENDATION:
Since this is not the primary target area (North Anchor) of the HRA and with the financial
limitations ofthe HRA, recommendation is alterative no. 2.
D. SUPPORTING DATA:
Map identifying site.
11
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13.
BRA Agenda - 9102/98
Consideration of a proposal for development of a community identity and
marketin~ stratee:ies and for HRA co-sponsorshio.
A. REFERENCE AND BACKGROUND:
At the August meeting, the BRA tabled any action to co-sponsor funding the
implementation ofthe proposal for development of a community identity and marketing
strategy until review of BRA financial statements. The MCP requested BRA
participation in the amount of$9,250 (60%) of the $15,870 total project cost.
Additionally, the BRA approved use of the BRA name as the funding agent in a grant
application to the Central Minnesota Initiative Fund (CMIF) subject to legal review. As a
503 C(4) non-profit organization, the MCP can not be the funding agent. In speaking
with Attorney Bubul, he had no problem with the BRA being the funding agent. The
BRA would receive the funds and act as the disbursement agent through a loan similarly
used for the contract with Theresa Washburn.
It is important to understand, a submitted funding application which is co-sponsored by
other community entities receives a higher ranking for approval by the CMIF Board of
Review as this indicates community support and commitment. If the MCP plans to
submit an application to the CMIF, participation by the BRA is very important for the
success of receiving approval. Participation of some sort is encouraged.
Please see August 5 agenda item.
12
.
.
.
HRA AGENDA
AUGUST 5,1998
10. Consideration of a proposal for a market identity study and to share in it's funding.
A. Reference and Background:
Enclosed is the proposal for a market identity study as prepared by MCP including a
shared funding plan. Please review prior to the HRA meeting. MCP Chair Barb Esse and
Manager Rita Ulrich will make a presentation to the HRA. Following the presentation,
the HRA will need to consider funding a share ofthe study.
I had an opportunity to meet John Davis when he interviewed Monticello individuals
perhaps a month ago. Be is an individual who has the talent to generate ideas. Through
the efforts of many individuals, the implementation of the revitalization plan has
progressed more quickly than expected. In order for the revitalization plan to be
successful now and in the future, it is vital to get pedestrians both local and outsiders into
the downtown area. Although facade investments increase the property values and
increase the aesthetic appearance of downtown, customer dollars fill the cash registers and
keep the businesses in the downtown area. To ensure the long term success of the
revitalization plan and downtown Monticello, daily pedsterian traffic is <<key". Certainly
the proposed restaurant, community center, Cub, and other redevelopment plans will
encourage people to our town; however, is it time to explore other attractions?
B. Alternative Action:
1. A motion to endorse the proposed market identity study and to commit
dollars toward the shared funding source.
2. A motion to endorse the proposed market identity study and to deny commitment
of funding.
3. A motion to deny endorsement and funding for the study.
4. A motion to table any action.
C. Recommendation:
Because people are vital to the economic success of Monticello's downtown,
recommendation is to endorse the study and consider a share of the funding. Even a small
commitment in dollars supports a willingness to succeed.
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.
.
.
HRA Agenda - 9/02/98
14.
Consideration to review the request for economic development fundin{: from the
proposed 1999 City budeet.
A. REFERENCE AND BACKGROUND:
As the first workshop of the City Council for Budget Year 1999 was scheduled for
August 31, 1998, prior to the HRA meeting of September 2, this information is provided
to inform the HRA of request for economic development funding.
Budget request for 1999:
Industrial Reserve Fund
Downtown Redevelopment
$75,000
35,000
Marketing
Scattered Housing Program
Housing Stock Inventory
Lab- Top Computer
$ 35,000
200,000
5,000
2,500
Increase levy amount for HRA operations (non-restrictive fund).
13
.
.
.
HRA Agenda ~ 9/02/98
15.
Consideration to review the first draft of the proposed TIF Guidelines.
A. REFERENCE AND BACKGROUND:
This item has been tabled from previous HRA meetings. Commissioners Andrews and
Lahr are preparing the first draft.
14
.
.
.
16.
Consideration to authorize payment of monthly HRA bills.
Recommendation is to authorize payment of the bills.
15
HRA Agenda - 9/02/98
.
.
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Monticello HRA
PO Box 1147
Monticello MN 55362-9245
August 14, 1998
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MC100-01
GENERAL
7/22/98 MTR Conference call on city hall
7/28/98 MTR Discussions with Ollie
7/30/98 MTR Run Brad Barger note
Total Due This Month:
Previous Balance:
Total Balance Due:
Hours Am(
0.50 :
0.25 ,.
'-
1.00 1C
_.-".....------"~
1.75 $1E
$1,1
,$1,3
-_.~,_.
---,--'"
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
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Monticello HRA
PO Box 1147
Monticello MN 55362-9245
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August 14, 1998
.
MC100-06
ARMORY
Amount
$1,680.00
$1,680,00
.
-']
Previous Balance: ,
Total Balance Due:
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
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3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
August 14, 1998
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MC100-25
DISTRICT 1-23
Hours Amount
7/15/98 MTR Review certification 0.50 52.50
7/16/98 RC Certification of District 2.50 262.50
Total Due This Month: 3.00 $315.00
Previous Balance: -:7 ($[5-20.00- .
"--------------...
Total Balance Due: $2,835.00
.
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
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3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
August 14, 1998
S\
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MC100-26
7/6/98 RC
MTR
7/8/98 RC
7/9/98 RC
7/20/98 RC
MTR
7/21/98 RC
MTR
7/23/98 RC
7/28/98 RC
7/29/98 RC
RC
District 1-24
Drafting ~ Schedule and distribution list
Schedule for district on senior housing
Drafting - TIF Plans and Documents
Drafting - Call resolution and letters and create maps
Drafting - TIF Plans and modification to the Dev. Program and edit
fiscal implications
Review tax increment plan
Edit plans and fax to city and atty for review
Review tax increment plan
Edit fiscal implications letters and send out
Drafting - Public hearing notice and planning commission and HRA
resolutions
Finalize plans and edit resolutions and notice
Drafting - Summary
Total Due This Month:
Previous Balance:
Total Balance Due:
Hours Amount
0.75 78.75
0.25 26.25
0.50 52.50
1.50 157.50
1.50 157.50
1.50 157.50
1.00 105.00
4.50 472.50
1.00 105.00
1.50 157.50
1.50 157.50
1.00 105.00
--- --.
16.50 $1,732.50
~.-:') $236.25
$1,968.75
.
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
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KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
August 18, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
STATEMENT OF ACCOUNT
Previous Balance:
Invoice Amount Amount Amount
Date Number Billed Paid Due
. 05/11198 23654 1,294.75 ( 0.00) 1,294.75 peA
08/1 0/98 25178 200.90 ( 0.00) 200.90
08/10/98 25179 428.68 ( 0.00) 428.68
08/1 0/98 25180 232.80 ( 0.00) 232.80
Matter Balance: $ 2,157.13
AGE ANALYSIS OF YOUR ACCOUNT
Current
31-60
0.00
862.38
.
61-90
0.00
91-120
1294.75
121+
0.00
KENNEDY & GRAVEN
.
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY August 10, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through July 31, 1998
MN 1 90-00041: Redevelopment - General
MN190-00066: Community Center Financing
MNI90-00067: Mall Redevelopment
MNI90-00073: St. Ben's Housing Development
Services Rendered:
Disbursements:
.
Balance Due:
I dElelare, under panally 01 law
th ....~co t ct.
""" un, aim or d.m
is ! rroct and that no
of it n
$ 201.00
$ 200.90
$ 428.68
$ 232.80
$ 1,019.80
$ 43.58
$ 1,063.38
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.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337.9300
August lO, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00073: St. Ben's Housing Development
Invoice # 25180
Through July 31, 1998
For All Legal Services As Follows:
-\ ;;Y
" ~"\ \ \
Q' \- ':},
07/23/98 SJB
07/24/98 SJB
07/29/98 SJB
Phone call with M Ruff re TIF Plan
Phone call with 0 Koropchak re deal terms
Review and revise TIF and Redevelopment Plan;
review resolution; phone call with 0 Koropchak
0.30
0.40
1.00
40.20
53.60
134.00
Total Services:
For All Disbursements As Follows:
07/29/98
Fax
Total Disbursements:
Total Services And Disbursements:
$
227.80
$
5.00
5.00
$
232.80
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.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
ryr--y/
August 1O'~8~ ~ \ ~ ~
~~ ~\~
MN190-00067: Mall Redevelopment
Invoice # 25179
Through July 31, 1998
For All Legal Services As Follows:
07/01/98 SJB
07/02/98 SJB
07/07/98 SJB
07/13/98 SJB
Attend HRA meeting; phone call with 0
Koropchak re same
Draft assignment of Note to Bank
Review letter re qualification costs
Review Note document; letter to 0 Koropchak
1.50
0.75
0.50
0.25
201.00
100.50
67.00
33.50
402.00
Total Services:
$
For All Disbursements As Follows:
07/01/98
07/13/98
07/13/98
Mileage expense(SJB)
Photocopies
Postage
25.73
0.40
0.55
26.68
Total Disbursements:
$
Total Services And Disbursements:
$
428.68
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.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
August 10, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00066: Community Center Financing
Invoice # 25178
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Through July 31, 1998
For All Legal Services As Follows:
07/06/98 DJG Revise armory development agreement
Total Services:
For All Disbursements As Follows:
04/23/98
07/08/98
07/27/98
07/27/98
07/27/98
07/27/98
Phone (BMB)
Photocopies
Postage
Fax
Photocopies
Photocopies
Total Disbursements:
Total Services And Disbursements:
1.80
189.00
189.00
$
$
2.00
0.00
9.90
0.00
0.00
0.00
11.90
$
200.90
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.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(6] 2) 337-9300
August 10, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 24669
~~~
Through July 31, 1998
For All Legal Services As Follows:
07/16/98 SJB ~hone call with 0 Koropchak re various contract 0.50
issues
07/22/98 SJB Phone call with 0 Koropchak re city hall building; 1.00
conference call re same
Total Services:
Total Services And Disbursements:
$
$
67.00
134.00
201.00
201.00
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KAY PARK-REC CORP.
1301 PINE STREET
P.O. BOX 477
JANESVILLE IA 50647-0477
WATS 800-553-2476 FAX 319-987-2900
GE 1
< < S TAT E MEN T
> >
ACCOUNT #
STATEMEtH DATE
---------------------~---------------------------------------------------------.-
i'1HTCLO 07/31/1998
t10NTICELLO PARKS & REC DEPT TERI'1S: NET/30
909 GOLF COURSE RD
t10NTICELLO, i"iN 55362
DATE INVOICE TYPE CHARGE CHECK # PAYMENT AI"10UI'\jT DUE
--------------------------------------------------------------------------------
07/27/98
00077918 IN 647.55
YOUR PO# VERBAL GREG
647.5::,
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PLEASE DISREGARD STATEMENT IF PAID.
\'~
~NPAID BALANCES WLL ACCRUE A S/CHARGE OF 1 1/2 % PER MONTH (18% PER YEAR).
~---------------------------------------------------------~------------------ -
OLD FCHG CURRENT OVER 30 OVER 60 OVER 90 NEW FCHG. AMOUNT DUE
.00 647.55 .00 .00 .00 .00 647.55
07/31/1998
.
.
.
17.
HRA Agenda - 9102/98
Consideration of Executive Director's report.
a) Blackwood's Restaurant - The update is covered in Item 10.
b) 225 West River Street - Although confirmation has not been received from the
Fire Chief that the fire drills are complete, according to the newspaper it appears
apparent. Request for proposals to local demolition contractors will go out
tomorrow with the completed proposals scheduled for return no later than
September 21, 1998. It is suggested the HRA call a special meeting for
Wednesday, September 23, 1998,5:00 p.m., to accept a demolition bid and hold
the public hearing for lease ofthe Walnut Street property.
c) It appears the Subordination Agreement requested by Marquette Bank may be
executed today (Aug 28). I did receive a copy of the purchase agreement as
documentation for TIF land write-down. I have not heard from Paul Ederer
relating to whom shall prepare the assignment assigning the Private
Redevelopment Contract from Allied Companies, LLC to lA.C. Development
LLC.
d)
River Mills - Rick Murray ofRDI, Inc. has submitted satisfactory evidence for
completion and payment of work associated with correction of soils at the once
gravel pit site. I have not heard from the County Auditor relating to the amount
of tax increment for payable 1998.
16