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HRA Agenda 10-14-1998 . . . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, October 14, 1998 - 7:00 p.m. City Hall MEMBERS: Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Darrin Lahr, and Dan Frie. STAFF: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak. COUNCIL LIAISON: Brian Stumpf. CONSULTANTS: Mark Ruff, Ehlers & Associates. 1. Call to order. 2. Consideration to approve the September 23, 1998 HRA minutes. 3. Consideration of adding agenda items. 4. Consent agenda. A. Consideration to approve a Subordination Agreement between the HRA and Firstar Bank of Minnesota. B. Consideration to ratify execution of the Partial Release of Purchase and Development Contract and to authorize execution of the Consent to Easement. 5. Consideration of items removed from the consent agenda for discussion. 6. Consideration to adopt a resolution calling for the sale of the Revenue bonds. 7. Consideration of a response to the HRA offer for the property located at 218 Front Street and authorization thereafter. 8. Consideration to reschedule the HRA regular meeting of November 11, 1998. 9. Consideration ofHRA commissioners interest to attend the Minnesota NAHRO Conference. 10. Consideration to authorize payment of monthly HRA bills. 11. Consideration of executive director's report. 12. Consideration of committee reports: a) MCP - Steve Andrews b) Marketing - Darrin Lahr. . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING Wednesday, September 23,1998 - 5:30 p.m. Members Present: Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Dan Frie and Darrin Lahr. Staff Present: Executive Director Ollie Koropchak. 1. Chair Steve Andrews called the meeting to order at 5:35 p.m. 2. Consideration to approve the September 2. 1998 HRA minutes. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO APPROVE THE MINUTES, AS WRITTEN, OF THE REGULAR BRA MEETING OF SEPTEMBER 2, 1998. Motion carried unanimously. 3. Consideration of adding items to the agenda. Ollie Koropchak requested adding two reports. 4. Consent agenda. None. 5. Consideration of items removed from the consent agenda for discussion. None. 6. Public hearing for lease oforooertv located at 3 Walnut Street. Chair Andrews opened the public hearing at 5:37 p.m. Having no one from the public at the meeting, Chair Andrews closed the public hearing. Ms. Koropchak reported calling the two parties that previously filled out lease forms. Both of the parties expressed a continuing interest in leasing the property. The lease agreement will be a monthly lease, $550 per month, with a $500 damage deposit, and the tenant will be responsible for utilities. Ms. Koropchak also stated that when a Minnegasco service representative was out to check the furnace, a large crack in the face plate of the furnace and unsafe levels of carbon monoxide were detected. A new furnace was recommended. Quotes for a new furnace were received from Oriefnow Heating and Plumbing and B&D Plumbing and Heating. . . . HRA Minutes - Spec. 9/23/98 Ms. Koropchak also requested the City Inspector to inspect the house. She stated that there were a number of items that needed to be corrected; such as, additional smoke detectors, missing shingles, debris in basement and yard cleanup. John Simola, Public Works Director, told Ollie that City crews could do most ofthe work for the HRA. The HRA would be responsible for purchasing the items needed to do the repairs and then the City crews would perform the work. Staff directed Executive Director Koropchak to check the purchase agreement and act accordingly by calling and requesting Larry Schlief remove the old furnace, old fuel tank and debris from under the crawl space. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY BOB MURRA Y TO ACCEPT THE ESTIMATE OF $1,590 FROM GRIEFNOW SHEET METAL AND CONTACT THE CITY CREW TO DO THE SMOKE DETECTORS, ETC. Motion carried unanimously. Ms. Koropchak stated that she would have the carpets cleaned after the new furnace was installed and the debris from the basement removed. The HRA directed her to do whatever was necessary to prepare the property for leasing. 7. Consideration to accept and award bid for demolition of the structure located at 225 West River Street. Ms. Koropchak gave a brief background stating that four RFP's (Request for Proposals) were sent out and three bids were returned. None ofthe bids received included the permit fees. It was brought to Ms. Koropchak's attention that the area may need top soil and seeding. Ms. Koropchak stated that due to an oversight, the specifications did not include top soil and seeding. In the future, demolition specifications will include this item. Ms. Koropchak spoke with John Simola regarding the low bidder, Brenteson; he felt that Brenteson would do a good job. He also stated that the City could do the seeding. But that we may have to bring in top soil if there isn't sufficient black dirt on the site. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY BRAD BARGER TO ACCEPT THE LOW BID OF $5,175 FROM BRENTESON CONSTRUCTION, INC. Motion carried unanimously. 8. Other business. A. Ms. Koropchak distributed information regarding a conference scheduled for November 12, 1998. She requested that the commissioners review the agenda and decide if they would like to attend. Ms. Koropchak would like to have the responses at the October 14th meeting so registrations can be filled out and mailed together. Chair Andrews asked Ms. Koropchak to check to see if the HRA has a credit for this conference. . . . BRA Minutes - Spec. 9/23/98 B. Ms. Koropchak stated that the Monticello Chamber of Commerce asked the HRA if they could use the HRA lot on October 24, 1998 from 10 a.m. to noon for a pumpkin give away. The Chamber will be liable and assured the HRA that they would leave no mess. Chair Andrews asked if we have a standard procedure to provide the HRA with proof of insurance. Ms. Koropchak will check on this. 9. Adjournment. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY BOB MURRA Y TO ADJOURN AT 5:50 P.M. Motion was carried unanimously. Steve Andrews, Chair HRA Nancy C. Whalen, Recording Secretary . 4A. Consideration to approve a Subordination Agreement between the between the HRA and Firstar Bank of Minnesota. A. REFERENCE AND BACKGROUND: The HRA is requested to approve a Subordination Agreement relating to the Private Redevelopment Contract between the HRA and Blue Chip. The request made by the developer's lender, Firstar Bank of Minnesota. In order for the loan closing of October 5 to proceed, the enclosed letter was prepared and submitted. Steve Bubul, HRA Attorney, did review the Subordination Agreement and recommends the HRA approval. The request is typical and consistent with HRA past practices. B. ALTERNATIVE ACTIONS: 1. A motion approving the Subordination Agreement between the HRA and Firstar Bank of Minnesota. 2. A motion to deny approval ofthe Subordination Agreement between the HRA and Firstar Bank of Minnesota. 3. A motion to table any action. . C. RECOMMENDATION. Recommendation is alternative no. 1. D. SUPPORTING DATA: Copy of HRA letter of October 2, 1998 and copy of Subordination Agreement. . . . -- October 2, 1998 MONTICELLO Mr. Gary D. Taverna Firstar Bank of Minnesota, National Association 2401 Lowry Avenue NE St. Anthony, Minnesota 55418 RE: Subordination Agreement between Housing and Redevelopment Authority in and for the City of Monticello and Firstar Bank of Minnesota Dear Mr. Taverna: The Housing and Redevelopment Authority in and for the City of Monticello (HRA) entered into a Contract for Private Redevelopment with Blue Chip Development Company (Developer) dated October 2-, 1998 (the Contract), providing for certain BRA assistance in development of certain property in the City. I understand that Firstar Bank of Minnesota (the Bank) intends to make a loan to the Developer in order to fmance construction of the development contemplated in the Contract. In connection with the Bank's loan, the Bank has requested that the BRA subordinate its interest in the Contract as described in a Subordination Agreement (Subordination Agreement). A form of the Subordination Agreement is attached to this letter. I have reviewed the Subordination Agreement, and with the recommendation of the BRA's legal counsel, have determined that the agreement is acceptable and is substantially similar to the subordination agreements approved by the HRA in connection with previous development contracts. I will submit the Subordination Agreement to the HRA for consideration at its meeting on October 14, 1998, and will recommend approval as consistent with the HRA's interests and past practices. I will also arrange for signing of the Subordination Agreement and delivery to you promptly after its approval by the HRA. ~f\~ \ 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 . . . Mr. Gary D. Taverna Page 2 I further represent to you that the mortgage financing for the Minimum Improvements (as defined in the Contract) is acceptable to the HRA and is considered approved as required under Article VII of the contract. If you have further questions about this matter, please contact me. Very truly yours, CITY OF MONTICELLO CJ~ ~tA ~g~ Olive Koropchak Executive Director Monticello HRA c: Joseph Deuhs, Jr. File ~~~~ . . . 4B. Consideration to ratify execution of the Partial Release of Purchase and Development Contract and to authorize execution of the Consent to Easement. A. REFERENCE AND BACKGROUND: In order for the loan closing to proceed on October 5, the HRA executed a partial release of Purchase and Development Contract relating to the Agreement between the HRA and Vector Tool & Manufacturing, Inc. dated September 14,1995. Additionally, the HRA was to execute a Consent to Easement. Both documents relate to the simple subdivision of the original parcel known as Lot 5, Block 3, OIP, completed through the PUD process. This was approved by the Planning Commission and Council. The parcel was subdivided for the purpose of the Blue Chip development projects known as B&B Metal Starnpings, Inc. and the Vector Tool. The consent of easement relates to the shared driveway for use by both projects. Steve Bubul, HRA Attorney prepared the release document and Brad Larson prepared the consent and consent agreement. Attorney Bubul had no problem with either. B. ALTERNATIVE ACTIONS: 1. A motion ratifying the execution of the Partial Release of Purchase and Development Contract and to authorize execution of the Consent to Easement. 2. A motion to deny ratification ofthe executed Partial Release of Purchase and Development Contract and authorization to execute the Consent to Easement. 3. A motion to table any action. C. RECOMMENDATION: Recommendation is alternative no. 1 D. SUPPORTING DATA: Copy of the executed release and copy of the consent. l'ARTlAt UELEASH OF MORTGAGE Mhlll~lIla l'llifni"1lI (;1;111"11I')'.11I:1111; ru.1l1d Knorr Doolulllut pat (I("tilled,. COpy Partial Release Of Purchase and Development Contract Date: . 19_ FOR VALUABLE CONSIDERATION, the real property in as follows: County, Minnesota, legally described TIle East 161.00 feet of Lot 5, Block 3, Oakwood IndUSlrial Park, according to the recorded plat thereror. Of more ~rmce is needed, conlinue on hack) is hereby released from the lien of the Purchase and Developmcnt Agreement by and betwcen the Housing and Rcdevclopment AuUlorHy in and for the City or Monticello and Vector Tool & Manufacturing, Inc. (Vector), dated__ Septembcr 14 , 1995, and filed for rccord Novcmber 28 ,1995, as Docllll1cnt Number 583737 (or ill Book of Page), in the Office of Ule (County Recorder) of Wright Counly, Minncsota, and assigned by Veclor to Blue Chip Dcvelopment Company by thut certain Assignlllcnt of Developmcnt Conlract datcd November 21, 1995 and filed for record Novcmber 28, 1995 as Document Number 583738 in tile Office of the County Recorder cf Wright County, Minnesota. ...- By Its h 'r By ()~ \~O\~ ~ Its Executive Director STATE OF MINNESOTA COUNTY OF ltA./4.h / / }. , 19.2f , the /'- of undcr the laws of 'fillS INSTRUMENT WI\S DRJ\FTEO DY (NAME IINO J\DDllESS): NOT1\RlAL STAMP OR SEN.IOH OTHER TITLE OR Rl\NIQ KENNEDY & ORA VEN, Chartered 470 Pl11sbury Center 200 South 6th Street Minneapolls, MN 55402 (612) 337-9300 Gll PATRICIA K, KOVICH ~ NOTMY PUBLIC - MINNESOTA .- My Comm. Exp. JM. 31, 2000 Sll3.151005 MN190-76 qB-) . . . CONSENT TO EASEMENT In consideration of One Dollar and other good and valuable consideration, the real property in Wright County, MiImesota described legally as follows: The East 161.00 feet of Lot 5, Block 3, Oakwood Industrial Park to which there is a "Contract for Private Development by and between Housing and .. Redevelopment Authority in and for the City of Monticello, Minnesota and Blue Chip Development Company" dated October 5, 1998; The Housing and Redevelopment Authority does hereby consent to that certain Easement Agreement dated October 5, 1998, by Blue Chip Development Company, a Minnesota General Partilership appended hereto. HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF MONTICELLO By: Steve Andrews Its: Chair ~ <6/;} . . . STATE OF MINNESOTA) ) ss COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _ day of October, 1998, by Steve Andrews, the Chair of the Housing and Redevelopment Authority for the City of Monticello. Notary Public Drafted by: METCALF, LARSON & MUTH, P.A. Attorneys at Law 313 West Broadway, P.O. Box 446 Monticello, MN 55362 ~~~ . . . HRA Agenda - 10/12/98 6. Consideration to adopt a resolution callinl: for the sale of the Revenue Bonds. A. REFERENCE AND BACKGROUND: On October 12, 1998, the City Council is considering the adoption or denial of a resolution providing for the sale of the $6,950,000 Public Project Revenue Bonds, Series 1998. With the approval of the resolution, the City Council determines that it necessary and desirable to issue the "Bonds" of the HRA and to enter into a lease purchase agreement with the HRA to provide funding for the construction and equipping ofthe community center project. Thereby, the Council requests the HRA adopt the enclosed resolution calling for the sale of the "Bonds" pursuant to the Terms of Proposal as described in the Bond Sale Report dated October 12, 1998. The HRA resolution authorizes Ehlers to solicit proposals for the sale of the bonds and states that the HRA shall meet at a special meeting for the purpose of considering sealed proposals for, and awarding the sale ofthe bonds. Said special meeting date, Monday, November 9, time to be determined. At the November 9 meeting, the HRA will also consider approving the lease purchase agreement. You will recall, the HRA adopted a resolution to reimburse expenditures for the armory project at a maximum of $9.4 million in March 4, 1998. The $6,950,000 bond is well below the maximum of $9.4 million. The total community center project cost including finance costs is $9,724,000. The difference between the project cost and bond sale is $2,774,000, this amount is funded by the National Guard, City Funds, and Investment of Proceeds. Mark Ruff, Ehlers & Associates, will be present to review the Bond Sale Report and answer questions. B. ALTERNATIVE ACTION: 1. A motion to adopt the resolution providing for the sale of $6,950,000 Public Project Revenue Bonds, Series 1998. 2. A motion to deny adoption ofthe resolution providing for the sale of $6,950,000 Public Project Revenue Bonds, Series 1998. 3. A motion to table any action. C. RECOMMENDATION: As the amount of the bond issuance is within the maximum amount approved for reimbursement by the HRA in March 1998 and as the community center project supports . HRA Agenda - 10/12/98 the Downtown/Riverfront Revitalization Plan within the City Comprehensive Plan, the recommendation by the City Administrator and HRA Executive Director is alternative No.1. D. SUPPORTING DATA: Copy of Bond Sale Report and resolution for adoption. . . . . . e BOND SALE REPORT $3,000,000 General Obligation Improvement Bonds, Series 1998A $515,000 General Obligation Water System Refunding Bonds, Series 1998B City of Monticello $6,950,000 Public Project Revenue Bonds, Series 1998 Monticello Housing and Redevelopment Authority October 12, 1998 ~ ...\ EHLERS E N CE 3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers-inc.com Offices in Rosevi/le. MN and Brookfield, WI & ASSOCIATES INC . . . Bond Sale Report - 1998 Bonds OVERVIEW This report describes the proposed plan for the City of Monticello to issue $3,000,000 General Obligation Improvement Bonds, Series 1998A (the "Improvement Bonds" or the "Series 1998A Bonds") and the $515,000 General Obligation Water System Refunding Bonds, Series 1998B (the "Refunding Bonds" or the "Series 1998B Bonds") and for the Monticello Housing and Redevelopment Authority to issue $6,950,000 Public Project Revenue Bonds, Series 1998 (the "Revenue Bonds"). This report has been prepared by Ehlers & Associates in consultation with City Staff and bond counsel. This report deals with: . Purpose and components of the bond issues. . Debt structure. . Other considerations in issuing bonds. . Market conditions. . Issuing process. IMPROVEMENT BONDS The $3,000,000 General Obligation Improvement Bonds, Series 1998A are being issued to finance public improvement projects, including the City share of improvements to State Trunk Highway 25, the extension of 7th Street, Wildwood Ridge sewer, water and pump station improvements, the Fire Hall driveway project and the ResurrectionlMethodist Church sewer improvement projects. The Bonds are issued under the authority of Minnesota Statutes, Chapters 429 and 475. The proposed finance plan consists of the following sources and uses of funds: SOURCES OF FUNDS USES OF FUNDS Par Amount of Bonds $3,000,000 Project Costs $3,529,100 City Trunk Funds 594,600 Costs of Issuance 26,500 Discount 39,000 Capitalized Interest 0 Total Sources $3 594.600 Total Sources $3,594,600 ~'d- Page 2 . . . Bond Sale Report - 1998 Bonds Security, Structure and Repayment The Bonds are general obligations of the City, backed by its full faith, credit and taxing powers to repayment. Revenue to pay debt service will come from a combination of special assessments and other City funds, including storm water trunk charges and property taxes. No capitalized interest is included in the issue. Monies to pay principal and interest through February 1, 2000 will come from storm water trunk funds or other sources. In structuring the bond issue, we have assumed that the City will levy special assessments in the amount of $1,364,900, representing 49% of the total debt. The finance plan assumes that the assessments will be levied in 1999 (for initial payment in 2000) and repaid over the following 10 years in equal annual installments of principal with interest paid on the outstanding balance. The Bonds have been structured to produce level annual contributions of other City funds. The terms and conditions of the Bonds are described in Attachment 1. The preliminary debt service schedule appears in Attachment 2. The Bonds will be offered for sale on November 9, 1998 and be dated December 1, 1998. The first interest payment on the Bonds will be August 1, 1999 and semiannually thereafter on February 1 and August 1. Principal on the Bonds will be due on February 1 in the years 2001 through 2010. The Bonds will be subject to call for redemption prior to final maturity on February 1,2005 and on any date thereafter. REFUNDING BONDS The $515,000 General Obligation Water System Refunding Bonds, Series 1998B are being issued to call and prepay the outstanding maturities of the $1, i 00,000 General Obligation Water System Bonds, Series 1988B. The principal maturing in 2000 through 2004, totaling $500,000, will be called on February 1, 1999. The Bonds are issued under the authority of Minnesota Statutes, Chapter 475. The proposed finance plan consists of the following sources and uses of funds: SOURCES OF FUNDS USES OF FUNDS Par Amount of Bonds $515,000 Bonds Called $500,000 Accrued Interest 408 Costs of Issuance 10,000 Discount 5,150 Rounding 258 Total Sources $515.408 Total Sources $515408 ~.,3 Page 3 . . . Bond Sale Report - 1998 Bonds The preliminary analysis shows that the refunding produces the following debt service savings: . Total savings - $26,742 . Net present value of savings - $23,506 . Net present value savings as a percent of refunded principal - 4.783% Security, Structure and Repayment The Bonds are general obligations of the City, backed by its full faith, credit and taxing powers to repayment. Revenue to pay debt service will come from general property taxes. The Bonds have been structured around the existing debt and will produce relatively level annual savings. The terms and conditions of the Bonds are described in Attachment 3. The preliminary debt service and savings analysis appears in Attachment 4. The Bonds will be offered for sale on November 9, 1998 and be dated December 1, 1998. The first interest payment on the Bonds will be August 1, 1999, and semiannually thereafter on February 1 and August 1. Principal on the Bonds will be due on February 1 in the years 2000 through 2004. The Bonds will not be subject to call for redemption prior to final maturity. PUBLIC PROJECT ReVENUE BONDS The $6,950,000 Public Project Revenue Bonds, Series 1998 are being issued to finance the construction and equipping of the Community Center. The Bonds are issued under the authority of Minnesota Statutes, Chapters 469 and 475. The proposed finance plan consists of the following sources and uses of funds: SOURCES OF FUNDS USES OF FUNDS Par Amount of Bonds $6,950,000 Total Project Costs $9,569,170 National Guard Contribution 1,500,000 Costs of Issuance 50,000 City Funds 1,124.000 Discount 104,200 Investment of Proceeds 150,000 Capitalized Interest 0 Roundina 630 Total Sources $9 724 000 Total Sources $9 724 000 ~,~ Page 4 . . . Bond Sale Report - 1998 Bonds Security, Structure and Repayment The Revenue Bonds are issued by the Housing and Redevelopment Authority under the authority of Minnesota Statutes, Chapter 469. Revenues to pay debt service comes from a lease purchase agreement between the HRA and the City pursuant to Minnesota Statutes, Section 465.71. Lease payments made by the City will be sufficient to pay all principal and interest on the Revenue Bonds when due. The Revenue Bonds are not general obligations of the City and not backed by its full faith, credit and unlimited taxing powers to repayment. Under State Law, the City must annually appropriate funds for the lease payment. Revenue t6 pay debt service will come from a combination of general property taxes, net revenues of the Liquor Fund, and other revenues legally available for this purpose. The initial levy of property taxes will occur in 1998 for taxes payable in 1999. The Revenue Bonds have been structured around the existing debt and will produce relatively level annual debt service payments. The City will receive bids for the construction of the Community Center on October 29. The analysis of the Revenue Bonds will be reviewed based on actual bid amounts. The City Council will have the capacity to alter the size of the issue and/or the maturity schedule prior to the sale. The terms and conditions of the Bonds are described in Attachment 5. The preliminary debt service analysis appears in Attachment 6. The Bonds will be offered for sale on November 9, 1998 and be dated December 1, 1998. The first interest payment on the Bonds will be August 1, 1999, and semiannually thereafter on February 1 and August 1. Principal on the Bonds will be due on February 1 in the years 2000 through 2019. The Bonds will be subject to call for redemption prior to final maturity on February 1,2009 and on any date thereafter. CONSIDERATIONS FOR ALL ISSUES Bank Qualified Bonds The City will not issue more than $10,000,000 in tax-exempt bonds in 1998 (only $15,000 of the Refunding Bonds counts against this limit). The City will designate the Series 1998A Bonds and the Series 1998B Bonds as qualified tax- exempt obligations pursuant to Section 265 of the Internal Revenue Code of 1986. (,.,~ Page 5 . Bond Sale Report" 1998 Bonds Arbitrage Rebate The issues will not qualify for the small issuer exemption from arbitrage rebate. The Improvement Bonds may avoid arbitrage rebate by spending the bond proceeds within the following time limits: Months from date of bonds % of proceeds spent 6 12 18 24 10% 45% 75% 100% . Global Book Entry The Bonds will be global book entry. As "paper less" bonds, you will avoid the costs of bond printing and annual registrar charges. The Paying Agent will invoice you for the interest semi-annually and on an annual basis for the principal coming due. You will be charged only for paying agent/transfer agent services provided by the bank. Rating Moody's Investors Service will be asked to rate this issue. The City currently has an "A3" rating on its outstanding general obligation bonds. Typically, Moody's rates HRA lease revenue bonds one level below the current G.O. rating. In its most recent review of the City, Moody's identified the amount of direct and overlapping debt as an area of concern. We will work with City Staff to address all rating agency concerns and to achieve the best possible rating. Continuing Disclosure Regulations of the Securities and Exchange Commission on the continuing disclosure of municipal securities apply to long-term securities with an aggregate principal amount of $1,000,000 or more. . Since the aggregate amount of each of the issues for the Improvement Bonds and the Revenue Bonds is over $1,000,000 and the City has more than $10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full Continuing Disclosure requirements for each issue as required by paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. You will be required to provide certain financial information and operating data relating to the City annually and to provide notices of the occurrence of certain material events. The specific nature of the Undertaking, as well as the information to be contained in the notices of \,-'~ Page 6 . Bond Sale Report - /998 Bonds material events will be set forth in the Continuing Disclosure Certificate that you will enter into at the time of closing for each issue. You are responsible for reporting any of the material' events listed below and in the Undertaking. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. . 11. 12. 13. Principal and interest payment delinquencies; Non-payment related defaults; Unscheduled draws on debt service reserves reflecting financial difficulties; Unscheduled draws on credit enhancements reflecting financial difficulties; Substitution of credit of liquidity providers, or their failure to perform; Adverse tax opinions or events affecting the tax-exempt status of the securities; Modification to rights of holders of the Securities; Securities calls; Defeasances; Release, substitution or sale of property securing repayment of the Securities; Rating changes; Failure to provide annual financial information as required; and Other material events. MARKET CONDITIONS Current interest rates provide an excellent environment for issuing the Bonds. During the first week in October, the Bond Buyer's 20-Year G.O. Index (BBD fell to 4.82%, the lowest point in almost 30 years. This event continues a general downward rate trend from 1997. The graph on the right shows the trends in the BBI since 1990. . 8.00% Bond Buyer's Index 20-Year G.O. Bonds 7.50% 7.00% 6.50% 6.00"k 5.50% 5.00% 4.50% 1990 1992 1994 1998 1998 1991 1993 1995 1997 lo..TJ Page 7 . . . Bond Sale Report - 1998 Bonds ISSUING PROCESS Following is a tentative schedule for the steps in the issuing process. October 12, 1998 City Council adopts resolution calling for the sale of the Improvement Bonds and Refunding Bonds and requests that the HRA issue the Revenue Bonds. October 14 HRA adopts resolution calling for the sale of the Revenue bonds. Week of October 26 Distribute Official Statement Receive construction bids on Community Center Week of November 2 Receive bond rating Council action on construction bids November 9 Bond sale (Regular Council meeting/Special HRA meeting) Bond closing (estimated) December 8 N:IMINNSOT A IMONTICEL\98_BONDSIPRE_SALE. WPD pag~~~ Resolution No. . Council Member introduced the foIJowing resolution and moved its adoption: Resolution Providing for the Sale of $3,000,000 General Obligation Improvement Bonds, Series 1998A $515,000 General Obligation Water System Bonds, Series 1998B $6,950,000 Public Project Revenue Bonds, Series 1998 WHEREAS, the City Council of the City of Monticello, Minnesota, has determined that it is necessary and desirable to issue the City's $3,000,000 General Obligation Improvement Bonds, Series 1998A to finance City costs associated with public improvement projects; and WHEREAS, the City Council has determined that it is necessary and desirable to issue the City's $515,000 General Obligation Water System Refunding Bonds, Series 1998B to refinance the $1,100,000 General Obligation Water System Bonds, Series 1988B; and WHEREAS, the City Council has determined that it is necessary and desirable to issue the $6,950,000 Public Project Revenue Bonds, Series 1998 of the Monticello Housing and Redevelopment Authority (the "HRA") and to enter into a lease purchase agreement with the HRA to provide funding for the construction and equipping of the Community Center project (collectively all issues referred to as "the Bonds"); and WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in . accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Monticello, Minnesota, as follows: 1. Authorization: Findinl!s. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. HRA Action. The City Council hereby requests that the Board of Commissioners of the HRA adopt a resolution calling for the sale of the $6,950,000 Public Project Revenue Bonds, Series 1998 pursuant to the Terms of Proposal as described in the Bond Sale Report dated October 12, 1998. 3. Meetinl!: Proposal Opening. The City Council shall meet at the time and place specified in the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the Bonds. The City Clerk, or designee, shall open proposals at the time and place specified in such Terms of Proposal. 4. Terms of Provosal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the Terms of Proposal as described in the Bond Sale Report dated October 12, 1998. 5. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. . ~~1 . . . The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 12th day of October, 1998. City Clerk (SEAL) \'''' ~ . . . Resolution No. Board Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $6,950,000 Public Projcct Revenue Bonds, Serics 1998 WHEREAS, the City Council of the City of Monticello, Minnesota, has requested that the Monticello Housing and Redevelopment Authority (the "HRA") issue $6,950,000 Public Project Revenue Bonds, Series 1998 (the "Bonds") to provide funding for the construction and equipping of the Community Center project; and WHEREAS, the City Council has determined that it is necessary and desirable to enter into a lease purchase agreement with the HRA to provide funds sufficient to pay principal and interest on the Bonds; and WHEREAS, the Board of Commissioners of the HRA has determined that it is necessary and desirable to issue the Bonds; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the HRA, as follows: 1. Authorization: Findings. The Board of Commissioners hereby authorizes Ehlers & Associates, Inc. to solicit proposals for the sale of the Bonds. 2. Meeting: ProDosal Opening. The Board of Commissioners shall meet at a special meeting at the time and place specified in the Temls of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the Bonds. The Secretary, or designee, shall open proposals at the time and place specified in such TemlS of Proposal. 4. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the Terms of Proposal as described in the Bond Sale Report dated October 12, 1998. 5. Official Statement. In connection with said sale, the officers or employees of the HRA and the City are hereby authorized to cooperate with Ehlers & Associates and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the HRA upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Board Member and, after full discussion thereof and upon a vote being taken thereon, the following Board Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 14th day of October, 1998. \fA I Secretary . . . A TT ACHMENT 1 TERMS AND CONDITIONS OF ISSUE $3,000,000 General Obligation Improvement Bonds, Series 1998A DA TE: October 12, 1998 ISSUER: City of Monticello, Minnesota BOND NAME: $3,000,000 General Obligation Improvement Bonds, Series 1998A BOND ATTORNEY: Bruce Batterson/Dan Greensweig (Kennedy & Graven) PURPOSE: Finance public improvement projects, induding the City share of improvements to State Trunk Highway 25, the extension of 7th Street, Wildwood Ridge sewer, water and pump station improvements, the Fire Hall driveway project and the ResurrectionlMethodist Church sewer improvement projects. Sale Date: November 9, 1998. Est. Closing Date: December 8, 1998 Proposal Opening: 11 :00 A.M., office of Ehlers & Associates, Inc. Proposal A ward: 7:00 p.m., municipal offices. Type of Sale: Independent Financial Advisory Provision. Bonds Dated: December 1, 1998. Maturity: February 1, 2001 - 2010 First Interest: August 1, 1999. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. Call Feature: Bonds will be subject to redemption prior to final maturity on February 1, 2005 and on any date thereafter. Minimum Proposal: $2,961,000. \,...\7--- . . . Good Faith: Record Date: CUSIP Numbers: Paying Agent: Registration! Book Entry Only: Financial Advisor: # OIS to Purchaser: Rating Requested: Qualified Tax-Exempt Obligations: Continuing Disclosure: $60,000, payable to the Issuer (Cashiers or Certified Good Faith Check or wire transfer of funds to Ehlers Good Faith Escrow or financial surety bond. Close of business on the 15th day (whether or not a business day) of the immediat~ly preceding month. The Issuer will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. To be named by the City. This offering will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. Ehlers & Associates, Inc. (Rusty FifieldlMark Ruff) 100 copies. Requested from Moody's Investors Service These Bonds WILL be designated as qualified tax -exempt obligations. Full undertaking Full Continuous Disclosure Undertaking: The Issuer will file the Annual Financial Information and Audited Financial Statements within 365 days after the end of their next fiscal year. The Issuer will update the following sections of the Official Statement in their annual updates: Current Property Valuations Larger Taxpayers Direct Debt Overlapping Debt Debt Ratios Tax Levies & Collections Tax Capacity Rates "A3 . . . BOND SALE REPORT City of Monticello G.O.lmprovement Bonds, Series 1998A ATTACHMENT 2 Year Fiscal Ending $3,000,000 Other Tax Year 01-Feb Princloal Rate Interest P&I Funds Assessment ~ 1998 1999 0 0.00 0 1999 2000 0 3.90% 148,639.17 148,639 148,639 2000 2001 285,000 3.95% 127,405.00 412,405 236,784 175,621 2001 2002 285,000 4.00% 116,147.50 401,148 227,905 173,243 2002 2003 290,000 4.10% 104,747.50 394,748 219,025 175,722 2003 2004 295,000 4.15% 92,857.50 387,858 210,146 177,712 2004 2005 295,000 4.20% 80,615.00 375,615 201,266 174,349 2005 2006 300,000 4.30% 68,225.00 368,225 192,387 175,838 2006 2007 305,000 4.35% 55,325.00 360,325 183,508 176,817 2007 2008 310,000 4.40% 42,057.50 352,058 174,628 177 ,429 2008 2009 315,000 4.45% 28,417.50 343,418 165,749 177,669 2009 2010 320,000 4.50% 14,400.00 334,400 156,869 177,531 3,000,000 878,836.67 3,878,837 148,639 1 ,968,267 1,761,931 Dated: 12/01/98 Discount: 39,000.00 First Interest: 08/01/99 Average Coupon: 4.32286% Bond Years: 20,330.00 NIC: 4.51469% Average Ufe: 6.77667 . I EHLERS &. ASSOCIATES INC LEADERS IN PUBLIC fiNANCE i "...\ t.\ Ehlers & Associates, Inc. 10/08/98 ATTACHMENT 3 . TERMS AND CONDITIONS OF ISSUE $515,000 General Obligation Water System Refunding Bonds, Series 1998B DATE: October 12, 1998 ISSUER: City of Monticello, Minnesota BOND NAME: $515,000 General Obligation Water System Refunding Bonds, Series 1998B BOND ATTORNEY: Bruce Batterson/Dan Greensweig (Kennedy & Graven) PURPOSE: Current refunding of the $1,100,000 G.O. Water System Bonds, Series 1988B. Sale Date: November 9,1998. . Est. Closing Date: December 8, 1998 Proposal Opening: 11 :00 A.M., office of Ehlers & Associates, Inc. Proposal A ward: 7:00 p.m., municipal offices. Type of Sale: Independent Financial Advisory Provision. Bonds Dated: December 1, 1998. Maturity: February 1, 2000 - 2004 First Interest: August 1, 1999. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. Call Feature: Bonds will be subject to redemption prior to final maturity on February 1, 2005 and on any date thereafter. Minimum Proposal: $509,850. . Good Faith: $10,300, payable to the Issuer (Cashiers or Certified Good Faith Check or wire transfer of funds to Ehlers Good Faith Escrow or financial surety bond. \r" ,~ . . . Record Date: Close of business on the 15th day (whether or not a business day) of the immediately preceding month. CUSIP Numbers: The Issuer will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such !lumbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. Paying Agent: To be named by the City. Registration! Book Entry Only: This offering will be issued as fully registered BO,nds and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. Financial Advisor: Ehlers & Associates, Inc. (Rusty FifieldlMark Ruff) # O/S to Purchaser: 50 copies. Rating Requested: Requested from Moody's Investors Service Qualified Tax~Exempt Obligations: These Bonds WILL be designated as qualified tax -exempt obligations. Continuing Disclosure: Exempt "..., \0 . . . ATTACHMENT 4 Monticello. MN Proposed Current Refunding of $1.100.000 G.O. Water System Bonds DEBT SERVICE COMPARISON I """,,1 ! ; ::""n"""""'........"",,,.."'I'1T.'I':"""""n""'''''''''''''':n:nrrummll'''II.''..1I1.'..'......."'..,....'r:m"::-:I'::l:llln"I"III..,'.,"......,..".,,""'"'""'''''.."''...~.TT':T'TTTTln:::I:r:Ir::I'''' lIl'''...."",'~_..."'''"::'''''":nr.1':mml"''''I''''"..'''..TT'''..'...'''',''........,.'''''",',.,."~.,..~."""'"..,.."'.~"T::T:":n::::"''':'':nl:':II:''IIII.I...'''''T'~:::''Tl::'0",,,, i I Date Total P+I Net New D/S 01 d Net D/S Savings "~~_.~n.n'M'~~~~__M'__ 12/08/1998 8/0111999 14.001.67 14.001.67 17.621. 25 3.619.58 2/0112000 100.501. 25 100.501. 25 102.621.25 2.120.00 I 8/0112000 8.746.25 8.746.25 14.688.75 5.942.50 I 2/0112001 108,746.25 108.746.25 109.688.75 942.50 FISCAL TOTAL , "~'-""''''''--~"'''_____~n~ 5,739.58 6.885.00 8/0112001 6,746.25 6,746.25 11.363.75 4.617.50 , , 2/0112002 111.746.25 111. 746.25 111.363.75 (382.50) 4.235.00 8/0112002 4.593.75 4.593.75 7,838.75 3.245.00 - 2/0112003 109.593.75 109.593.75 112.838.75 3.245.00 6.490.00 8/0112003 2.415.00 2.415.00 4.111.25 1.696.25 2/0112004 117,415.00 117.415.00 119.111.25 1,696.25 3.392.50 -- "",.n...m.._. Total 584.505.42 584,505.42 611,247.50 26.742.08 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Gross PV Debt Servi ce Savi ngs. .. . .. . . .. .. . . . . .. . . . . .. . . . . .. .. . . . . . . . . . . .. 23.506.06 Net PV Cashflow Savings fil 5.124% (AIC)................................... 23.506.06 Accrued Interest Credit to Debt Service Fund............................. NET PRESENT VALUE BENEFIT................................................ 408.38 $23.914.44 NET PV BENEFIT / $500.000 REFUNDED PRINCiPAL.......................... 4.7831 NET PV BENEFIT / $515.000 REFUNDING PRINCiPAL......................... 4.6441 Ehlers & Associates. Inc. Leaders in Public Finance File" HONTCLO-98Cur Ref of 88- SINGLE PURPOSE 10/ 6/1998 3:11 PH ~ ..\'1 . . . ATTACHMENT 5 TERMS AND CONDITIONS OF ISSUE $6,950,000 Public Project Revenue Bonds, Series 1998 DATE: October 12, 1998 ISSUER: Monticello (Minnesota) Housing and Redevelopment Authority BOND NAME: $6,950,000 Public Project Revenue Bonds, Series 1998 BOND ATTORNEY: Bruce BattersonJDan Greensweig (Kennedy & Graven) PURPOSE: Finance construction and equipping of a community center. Sale Date: November 9, 1998. Est. Closing Date: December 8, 1998 Proposal Opening: 11:00 A.M., office of Ehlers & Associates, Inc. Proposal Award: 7:00 p.m., municipal offices. Type of Sale: Independent Financial Advisory Provision. Bonds Dated: December 1, 1998. Maturity: February 1, 2000 - 2019 First Interest: August 1, 1999. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. Call Feature: Bonds will be subject to redemption prior to final maturity on February 1, 2009 and on any date thereafter. Minimum Proposal: $6,845,800. Good Faith: $139,000, payable to the Issuer (Cashiers or Certified Good Faith Check or wire transfer of funds to Ehlers Good Faith Escrow or financial surety bond. Record Date: " ~\( Close of business on the 15th day (whether or not a business day) of the immediately preceding month. . . . CUSIP Numbers: Paying Agent: Registration! Book Entry Only: Financial Advisor: # O/S to Purchaser: Rating Requested: Qualified Tax-Exempt Obligations: Continuing Disclosure: The Issuer will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. To be named by the City. This offering will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. Ehlers & Associates, Inc. (Rusty Fifield/Mark Ruff) 150 copies. Requested from Moody's Investors Service These Bonds WILL be designated as qualified tax -exempt obligations. Full undertaking Full Continuous Disclosure Undertaking: The Issuer will file the Annual Financial Information and Audited Financial Statements within 365 days after the end of their next fiscal year. The Issuer will update the following sections of the Official Statement in their annual updates: Current Property Valuations Larger Taxpayers Direct Debt Overlapping Debt Debt Ratios Tax Levies & Collections Tax Capacity Rates N:IMINNSOT AIMONTICEL\98_BONDSIPRE_SALE. WPD " ...\ , . . . BOND SALE REPORT Monticello HRA ATTACHMENT 6 Public Project Revenue Bonds Year Fiscal Ending $6,950,000 Net Revenue Tax Property Year ~ Principal .BAm Interest f.l.! L1auor Fund Increment Tax Levy 1999 1999 0 0.00 0 2000 2000 165,000 4.00% 389,529.58 554,530 200,000 11,250 343,280 2001 2001 230,000 4.05% 327,282.50 557,283 200,000 11 ,250 346,033 2002 2002 240,000 4.10% 317,967.50 557,968 200,000 11 ,250 346,718 2003 2003 250,000 4.20% 308,127.50 558,128 200,000 11 ,250 346,878 2004 2004 260,000 4.30% 297,627.50 557,628 200,000 11 ,250 346,378 2005 2005 270,000 4.40% 286,447.50 556,448 200,000 11,250 345,198 2006 2006 285,000 4.50% 274,567.50 559,568 200,000 11,250 348,318 2007 2007 300,000 4.60% 261,742.50 561,743 200,000 11 ,250 350,493 2008 2008 315,000 4.70% 247,942.50 562,943 200,000 11 ,250 351,693 2009 2009 330,000 4.80% 233,137.50 563,138 200,000 11 ,250 351 ,888 2010 2010 345,000 4.85% 217,297.50 562,298 200,000 11 ,250 351,048 2011 2011 360,000 4.90% 200,565.00 560,565 200,000 11,250 349,315 2012 2012 375,000 5.00% 182,925.00 557,925 200,000 11,250 346,675 2013 2013 395,000 5.00% 164,175.00 559,175 200,000 11,250 347,925 2014 2014 415,000 5.05% 144,425.00 559,425 200,000 11 ,250 348,175 2015 2015 435,000 5.05% 123,467.50 558,468 200,000 11 ,250 347,218 2016 2016 460,000 5.10% 101,500.00 561,500 200,000 11 ,250 350,250 2017 2017 480,000 5.10% 78,040.00 558,040 200,000 11,250 346,790 2018 2018 505,000 5.15% 53,560.00 558,560 200,000 11 ,250 347,310 2019 2019 535,000 5.15% 27,552.50 562,553 200,000 11 ,250 351,303 6,950,000 4,237,879.58 11,187,880 4,000,000 225,000 6,962,880 Dated: 12/01/98 Discount: 104,200.00 First Interest: 08/01/99 Average Coupon: 4.96161% Bond Years: 85,413.33 NrC: 5.08361% Average Life: 12.28969 . I EHLERS l ASSOCIATES INe lUDERlIN PUBtlC FI NUCE i &,-;l c) Ehlers & Associates, fnc. 1 0/07/98 . . . 7. Consideration of a resDonse to the BRA offer for the prooerty located at 218 Front Street and authorization thereafter. A. REFERENCE AND BACKGROUND: Enclosed is a copy of the letter mailed Deb Otten relating to the HRA motion of September 2, 1998. The HRA offer included a purchase price of $81 ,000 with a three- year option at a non-refundable annual fee of $1 ,000, the sum of which will not be applied to the purchase price. The HRA may exercise the option at any time by delivery of written notice. The purchase price to increase 4% annually at the anniversay date of the otpion agreement. I did speak to Deb on Thursday or Friday and the HRA can anticipate a response either prior to or submitted at the meeting. You will recall the estimated market value for payable 1999 is $71,700. Land $18,800 and building $52,900. The HRA authorized and received a copy of the completed appraisal in August. It is my understanding, the property is currently being leased. At this time, the name of the tenant is unknown to the HRA. Upon acquisition of a property, the HRA must inform the occupant of their right to relocation benefits. If the HRA offer is accepted, the next step is to prepare appropriate documents. It is my assumption during the three-year option, the current owners maintain the lease agreements and maintenance of the property. At the November meeting, the HRA will hear a presentation from Brad Johnson relating to the redevelopment of the North Anchor or a portion of the North Anchor. B. ALTERNATIVE ACTION. 1. A motion authorizing Kennedy & Graven to prepare the purchase offer option with terms as defined by the HRA in September and acceptable to the seller. 2. A motion to accept a counter-offer and authorize Kennedy & Graven to prepare the appropriate documents. 3. A motion to table any action. . C. RECOMMENDATION: Recommendation is alternative no. 1. If the seller submits a counter-offer, the recommendation is alternative no. 3. This allows the HRA time to consider the counter- offer. If the offer-counter is for a buyout, the HRA must consider its source of funding for an acquisition. A second recommendation would be to authorize the building official to inspect the property for safe and livable conditions, this if the HRA were to purchase for lease. D. SUPPORTING DATA: Copy of September 8 letter. . . September 8, 1998 MONTICELLO Mrs. Deb Otten 7183 Cahill Avenue Monticello, MN 55362 Re: Real estate property located at 218 Front Street Dear Deb: . At the HRA meeting of September 2, 1998, the commissioners reviewed the HRA appraisal for the property located at 218 Front Street and approved the following purchase offer. The HRA' s offer includes a purchase price in the amount of $81,000 with a three-year option at a non- refundable annual fee of$I,OOO, the sum of which will not be applied to the purchase price. The HRA may exercise the option at any time by delivery of written notice. The purchase price to increase 4% annually at the anniversary date of the option agreement. The HRA request a response of acceptance or non-acceptance to the purchase offer of September 2, 1998. If the offer is acceptable, the HRA Attorney will be authorized to prepare the appropriate documents. Please respond to the Office of the HRA by calling 271-3208 or by mail at P.O. Box 1147, Monticello, MN 55362. The next regular HRA meeting is October 14, 1998, 7:00 p.m. Deb, should you have any questions, please do not hesitate to call me at 271-3208. Thank you for consideration of this matter. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY !NAND FOR THE CITY OF MONTICELLO a ~-~~--~ ~~~~~ Ollie Koropchak Executive Director . cc: HRA File 1-'\ Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362.9245. (612) 295~2711 . Fax: (612) 295-4404 Office of Puhlic Works, 909 Golf Cnurse Rd., Monlkdlo. MN 'i'i162 . (612) 2l)'i-1170. fax: (612) 271-1272 . . . 8. Consideration to reschedule the HRA reaular meetina of November 11.1998. A. REFERENCE AND BACKGROUND: Because the next regular HRA meeting of November 11 is Veteran's Day and law prohibits holding of public meetings, the HRA is asked to reschedule. With the unknown of the context ofthe November 11 agenda and the assumption the special meeting of November 9 would not allow sufficient time to cover items, it is suggested to set a different date for the regular meeting. Suggested dates are Wednesday, November 4 or November 18. B. ALTERNATIVE ACTIONS: 1. A motion to reschedule the HRA regular meeting of November 11 to ,1998. C. RECOMMENDATION: November 18, 1998. . . . 9. Consideration of HRA Commissioners interest to attend the Minnesota NAHRO Conference. A. REFERENCE AND BACKGROUND: Previously the HRA commissioners received a copy of the NAHRO Conference agenda. The conference is scheduled for November 12,8:00 a.m. to 5:00 p.m. at the Radisson South. If you are interested in attending, please advise so reservation can be made accordingly. Koropchak was directed to check on a possible credit for a registration not attended in 1997. The only payment to NAHRO in 1997 was for Koropchak attendance at the fall conference. I did receive a copy of the ALHF A (Association of Local Housing Finance Agencies) Conference and its agenda scheduled for November 19-21 at the Minneapolis Hilton and Towers. The brochure is available upon request. Please advise of your interest to attend the November 12 conference. . . . 10. Consideration to authorize payment of monthly HRA bills. Sue, Finance Department, is checking on the over-payment as noted by Ehlers. It is recommended to authorize payment of the Kennedy & Graven and Griefnow Sheet Metal bills only. . . . q~ g/uud Meld. Bruce Wachter, Proprietor P. O. Box 261, Monticello, MN 55362 Phone (612) 295-2510 \~~~- \~~\-?'?- ~W~ SWsd d\f\O(\\n~ I\''C Con and ,...\ :it ~ 7i /'4d "/ -- ~",' .... . .., .z.. .,.{.~t:" J, t~ so f<<~~~ /!JZ-t;~/ ~~'.;/I ~ / . ') .?--r;<:- ~' cr#.> ,5.'- > &.:> ? . N~ 9193 ~~ ?-C-e <;: ! TOTAL II I ---- . 6'~ ... -~ ....... \ l)_A . . MC100-01 GENERAL Monticello HRA PO Box 1147 Monticello MN 55362-9245 September 14, 1998 M~~'~ .~~o\'J v:3--~ ~~b o-\:?.\"O ~. VU *~\~ ~~~~ Hours Amount 0.25 26.25 0.25 $26.25 $1,301.25 ($682.50) ($146.25) ($472.50) ($26.25) ($1,327.50) $0.00 8/18/98 MTR Amortization for Ollie . Total Due This Month: Previous Balance: 8/21/98- Payment - thank you 9/3/98- Payment - thank you 9/3/98- Payment - thank you 9/11/98- Credit Total payments Total Balance Due: PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO: . EHLERS & ASSOCIATES INC \\~~ 3060 Centre Pointe Drive Rosevil/e, MN 55113-1105 651.697.8500 . . MC100-27 8/11/98 RC RC 8/12/98 MTR 8/13/98 RC 8/14/98 RC 8/19/98 RC 8/20/98 RC RC 8/24/98 RC RC MTR 8/27/98 RC Monticello HRA PO Box 1147 Monticello MN 55362-9245 September 14, 1998 TIF District No. 25 ~ ~ Drafting - Schedule and distribution list and fiscal implications Draft plans Work on plan for District 24 1 t~ - ? 4 - S1 \:>~ Drafting - City Council resolution and district overview Mail fiscal implications Edit plans per atty's comments Edit plan and resolution Drafting - Resolution calling for a public hearing Drafting -Planning commission, city council and HRA resolutions, public hearing notice and district overview Drafting -Modification to the redevelopment program Discussions on senior housing '"""\~~ \- ':1-,-\ - So"\ - ~ Edit and finalize documents Hours Amount 2.00 210.00 1.50 157.50 0.50 ~, 1.00 '105:00 1.00 105.00 1.00 105.00 1.00 105.00 0.50 52.50 2.00 210.00 1.00 ~ 0.50 0.50 52.50 12.50 $1,312.50 ($630.00) $682.50 9/11/98- Credit Total Due This Month: Total Balance Due: . PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO: . EHLERS & ASSOCIATES INC \\):3 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 CLIENT SUMMARY September 4,1998 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 Through August 31, 1998 1-'iN 190-00041: Redevelopment - General MN190-00064: Economic Development- TIF Midwest Graphics MNI90-00066: Community Center Financing MNI90-00073: St. Ben's Housing Development MN 190-00075: Community Center Litigation MNI90-00076: TIF 1-25 (B&B Metal Stamping) Services Rendered: Disbursements: Balance Due: I.WO. ur.der penalty of law t ;; account, claIm or dlimand is just a an of it has SiQnaturll of Claimant $ 40.20 $ 201.10 $ 1,558.50 $ 1,201.00 $ 422.10 $ 904.24 $ 4,222.00 $ 105.14 $ 4,327.14 1\~~ \\J . . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 September 4, 1998 ~ \\to- City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN 190-00041: Redevelopment - General Invoice # 25711 Through August 31, 1998 For All Legal Services As Follows: 08/17/98 SJB Phone call with 0 Koropchak re IDC issues Total Services: Total Services And Disbursements: 0.30 $ 40.20 40.20 $ 40.20 ./ \\\~ . . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337.9300 September 4, 1998 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 fj r(~ L\'{ ~ \. \. ~\ ,e.- MNI90-00064: Economic Development- TIF Midwest Graphics -- Invoice # 18460 Through August 31, 1998 For All Legal Services As Follows: 08/06/98 DJG Draft subordination agreement 08/07/98 DJG Draft subordination agreement 08/13/98 DJG Review changes to subordination agreement Total Services: For All Disbursements As Follows: 08/13/98 Photocopies Total Disbursements: Total Services And Disbursements: 0.80 0.80 0.30 $ 84.00 84.00 31.50 199.50 $ 1.60 1.60 $ 201.10 \'() ~~ . . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337.9300 September 4, 1998 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN190-00066: Community Center Financing Invoice # 25712 Through August 31, 1998 For All Legal Services As Follows: 08/05/98 DJG 08/19/98 DJG 08/24/98 DJG 08/26/98 DJG 08/28/98 DJG ~vo ,,'>- (~ ~ ~ '\ . c..,CJQ/ Prepare for and attend HRA meeting Revise development agreement; draft cover letter; phone call with J O'Neill re same Prepare for and attend city council meeting Revise development contract Revise contract accordingly; meeting with B Johnson and T Palmer re contract Total Services: For All Disbursements As Follows: 08/05/98 08/05/98 08/19/98 08/20/98 08/28/98 Photocopies Fax Photocopies Postage Photocopies Total Disbursements: Total Services And Disbursements: 5.30 556.50 1.90 199.50 2.30 241.50 1.40 147.00 3.80 399.00 $ 1,543.50 $ 0.00 0.00 0.00 15.00 0.00 15.00 $ 1,558.50 \,,\ . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 September 4, 1998 c::< \ / L\~ City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN190-00073: St. Ben's Housing Development Invoice # 25713 Through August 31, 1998 For All Legal Services As Follows: 08/14/98 8JB 08/1 7/98 8m 08/18/98 sm . 08/20/98 SJB 08/21/98 8m 08/24/98 SJB 08/25/98 8m 08/26/98 sm Review resolution; phone call with A Black re terms Review TIF Plan; draft but for; phone call with 0 Koropchak re same Phone call with 0 Koropchak re deal; phone call with A Black re same Phone call with 0 Koropchak re terms of deal Review final TIF Plan Phone call with A Black re qualification and costs; phone call with 0 Koropchak re same; draft contract Phone call with A Black; work on contract Finalize contract and low income agreement; phone call with J Hiatt re same Total Services: For All Disbursements As Follows: 08/14/98 08/26/98 . Fax Photocopies Total Disbursements: Total Services And Disbursements: 'j-'\ 0.50 67.00 1.50 201.00 0.50 67.00 0.25 33.50 0.30 40.20 3.00 402.00 1.00 134.00 1.50 201.00 $ 1,145.70 $ 2.50 52.80 55.30 $ 1,201.00 \\)i . . . KENNED~a~e~RAVEN ~. \ 200 South Sixth Street, Suite 470 ~~ ,---CY Minneapolis, MN 55402 r ~ (612) 337-9300 ~'V September 4, 1998 G~ City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN 190-00075: Community Center Litigation Invoice # 25714 Through August 31, 1998 For All Legal Services As Follows: 08/04/98 SJB Phone call with 0 Koropchak re Swanson issue; 0.75 intraoffice conference with D Greensweig re same; review data request 08/04/98 DJG Review request for documents by Hessian; 1.90 Intraoffice conference with S Bubul re same; phone call with D Dalen re same; research and send materials re same 08/05/98 SJB Phone call with D Dalen; phone call with J Choi re 0.50 litigation 100.50 254.60 67.00 Total Services: $ 422.10 Total Services And Disbursements: $ 422.10 \\) J\ . . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 September 4, 1998 / ~f; City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN190-00076: nF 1-25 (B&B Metal Stamping) ~~c ~ Invoice # 25715 Through August 31, 1998 For All Legal Services As Follows: 08/1 0/98 SJB Phone call with B Barger; phone call with 0 Koropchak re Barger issues 08/24/98 SJB Phone call with 0 Koropchak re contract; review TIF documents 08/26/98 SJB Draft contract 08/27/98 SJB Dr~ft contract; phone call with 0 Koropchak; reVIse same Total Services: For All Disbursements As Follows: 08/17/98 08/27/98 08/27/98 Fax Photocopies Postage Total Disbursements: Total Services And Disbursements: '17 I" ~ 0.50 1.00 2.50 2.50 67.00 134.00 335.00 335.00 $ 871.00 $ 17.50 12.80 2.94 33.24 $ 904.24 \bA\ . . KENNEDY & GRA YEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337.9300 CLIENT SUMMARY September 4,1998 Monticello HRA City Hall P.O. Box 1147 Monticello, MN 55362 Through August 31, 1998 MNI95-00005: Sale of 3 Walnut Street Services Rendered: Disbursements: Balance Due: j j. ";','((../V , <<J:::II.\' oJ Mt? ;t".,):. , :"" ',"Mr. u. .,""1"'<'1"1"- '~,"":;I ' , "P"p..;!', ~i fJ.J....... J' :. h 0., ".1<1, L/ I a ,1 ---- '.. ._C:l~ <,"V ,)!... ' '\~~~ ~;\ $ $ $ 614.00 612.50 1.50 $ 614.00 ,\\ .A\ . KENNEDY & GRAVEN Chartered 200 South Sixth Street, SuIte 470 Minneapolis, MN 55402 (612) 337-9300 'September 4, 1998 "\~ ~y ,~"-~ 11 \l?,~ \. c'? Q f)-t;;Y \r Monticello HRA City Hall P.O. Box 1147 Monticello, MN 55362 ___ --_...--- "'7 MNI95-00005: Invoice # 19515 Through August 31, 1998 For All Legal Services As Follows: 08/05/98 CHT Review closing documents; review 1998 legislation 1.20 166.80 re trusts; review title standards; fax to 0 Koropchak 08/14/98 CHT Phone call with 0 Koropchak re title matters; 0.40 55.60 review title standards; call Holder office 08/17/98 CHT Phone call with T Holker re deeds; voice mail 0.30 41.70 message to 0 Koropchak . 08/18/98 CHT Review fax from 0 Koropchak; phone call with 0 0.40 55.60 Koropchak 08/18/98 SJB Phone call with 0 Koropchak re lease; research 0.50 67.00 public hearing question 08/20/98 GBD Review lease and change terms to month to month; 1.50 97.50 search for samples 08/20/98 CHT Phone call 0 Koropchak re purchase agreement 0.20 27.80 08/20/98 SJB Phone call with Ollie Koropchak; conference call 0.75 100.50 with G Davis; review lease Total Services: $ 612.50 For All Disbursements As Follows: 08/05/98 Fax 0.50 08/21/98 Photocopies 1.00 Total Disbursements: $ 1.50 Total Services And Disbursements: $ 614.00 . \~ ~rr . . . HRA Agenda - 10/14/98 11. Consideration of Executive Director's report. a) North Anchor and West Bridge Park Proposal - Enclosed is a copy of a letter received from Brad Johnson, Lotus Realty Services. b) 225 Front Street and 313 West River Street - copies of letter to properties owners as directed by the HRA. I did bring the Council up-to-date on the action taken by the HRA relating to the 225 Front Street property. The Council offered a right of first refusal for $500. I'm unclear ifthe $500 was intended as an annual fee or the length ofthe offer. No response from the Carlson's attorney at this time. c) Marketing Plan - Copy of letter requesting matching funds from NSP for brochure. d) 9 Linn Street - The property owner, Borgeson, contacted the HRA office of its interest to sell to the HRA. Because the property lies in Block 56, two blocks west ofthe designated North Anchor, Block 54, I thanked him and informed him that the HRA was concentrating on Block 54 at this time. e) 1999 City Budget - Of the HRA request for budget year 1999, the items in the budget at this time are as follows: $75,000 request for industrial reserve fund reduced to $50,000 and marketing plan request of $35,000. Not in the budget, $35,000 for downtown redevelopment and $5,000 for housing stock inventory. Not an HRA request but the $200,000 matching fund for a scattered housing program was deleted. d) Skipper Pool & Spa - I have not checked to see if Skipper has vacated the HRA lot on West Broadway. The HRA granted use ofthe property for a display through August 31, 1998. e) Subject to the MCP receiving funding for a proposal for development of a community identity and marketing strategies, the letter of endorsement from the HRA will be prepared and submitted. f) 225 West River Street - Demolition of the Hawkin's house must be completed by October 23. g) 3 Walnut Street - The new furnace was installed and the carpets cleaned. I showed the house to Truda Boler and they decided against renting the house. I contacted Barbara Schlief, the second party, who submitted an application to lease. I have not heard from her. I'll try again, otherwise, I'll proceed to a third party of interest. The Public Works Department was requested to do the fix-up as reported by the Building Department. . . . ct-12-98 Ol:20P Lotus Rsalty P.Ol LarDS REA tTY SERVICES October J 2, 1998 TO: Monticello Parks & Cummission ATTN.: Lany Nolan. Chairperson VIA FAX: 295-4404 cc: Steve Andrews,IIRA Riek Woltslellcr~City Administrator Barb Esse. MCP Jeff O'Neill. A::;si~t. Administrator Bob Grabinski. Chamber ofConunerce Ollie Koropchak., Economic Wanda Kraemer. Administrative Assist. Development Mayor Bill Fair VIA FAX: 295-4404 Greg Engle VIA FAX: 295.3272 FROM: Lotus Realty Services SUBJECT: West Bridge Park Area Proposal Lotus Realty Services has continued to work on the feasibility of a restaurant, hotel, apartments, and po~~ibly additional retail on or near the West Bridge Pllrk Area. r am sorry to say our proposal to the Black Woods Restaurant has met strong competition from other sites and signs of no interest at this time. We continue to search for a restaurant and believe the over nil concept ofmixed use for the West Bridge Park Area is a good one. During the week ofOclobcr 261 will visit the sile along with an architect to prcpare a morc detailed concept phm than I've shown you at your previous meeting. I would like to request the conunission continue to delay implementation of a plan until your next meeting when we will present our ideas. , tienee_ Sincerely, ~f Bradley C. Johnson \y\ 561 WEST 78TH STREET. P.O. BOX 235 . CHANHASSI!N. MINNESOTA 55317. (612) 934-4538 . FAX (612) 934-547:i! . . September 8, 1998 -- 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: This is a notification of the action taken by the Monticello Housing and Redevelopment Authority on September 2~ 1998, relating to the consideration of accepting the counter-offer of July 24, 1998, for purchase of the property located at 225 Front Street. The commissioners unanimously approved a motion to not proceed with the purchase of the property located at 225 Front Street. Upon review of the cash flow balance of the HRA combined with the HRA having no special or immediate program for the parcel and determining the counter-offer price unacceptable for property with a limited amount of buildable land, the above motion was made and approved. The HRA would like to thank you and your client for consideration of this matter. Should you have any questions, please contact me at 271-3208. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO ~{))L~.__--, '</)1 IJ \'j \J~J-~_~_ '..~.......J ~ :-... '" Ollie Koropchak Executive Director cc: HRA File \"r Monticellu City Hall, 250 E. Broadway, PO Box 1147, Monticellu, MN 55362-9245. (612) 295-2711 · Fax: (612) 29:~-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 · (612) 295-3170 . Fax: (612) 271-3272 September 9, 1998 -- MONTICELLO Mr. Derick Snell 313 West River Street Monticello, MN 55362 Re: 313 West River Street Dear Mr. Snell: At the HRA meeting of September 2, 1998, the commissioners considered your request of interest to sell the property located at 313 West River Street to the HRA. Since the HRA's current redevelopment focus is not Block 55, a motion of no interest to purchase the said property at this time was approved unanimously. . The HRA would like to express their appreciation and "thank you" for your consideration to contact the Office of the HRA prior to placing the property on the open market. Again, many thanks for your consideration. With warm regards, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO O~ \<:(f\,~~ Ollie Koropchak Executive Director cc: HRA File . \'(9 _'~"~'~,~~m~'..~.,... ."..~,".,.,. "" ,_'. '_,. "",",.r"', "".." ". ""~_,"'" _....'.'.__~,_,.~.___~~~__._'_ Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticcllu, 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 ~ . , , ~../ :.. :;~'.~:~~ ~~~,'~:;3/ '. .", _:,;i~~i ,: September 15, 1998 -- MONTICELLO Mr. Ken Stabler Manager of Economic Development Northem States Power Company 512 Nicollet Mall Minneapolis, MN 55402 Re: Industrial Development P811nership Dear Ken: . A Marketing Subcommittee made up of members ofthe Monticello Industrial Development Committee and the Housing and Redevelopment Authority have prepared a Marketing Plan for the City of Monticello. The focus of the Plan is "industrial development opportunities" in Monticello. Phase I of the Plan includes the design and production of a new marketing brochure and defines the target market for development of an industrial prospect list. The Plan also includes development of a web site and implementation of a public relations c81npaign including publication ofjoumal and newsletter articles, ground breaking reccptions, opcn house and tours, city promotional cvents, and more. Phase II includes participation at industrial trade shows and placement of a billboard along 1-94. The Plan defines a time line and budget and assigned tasks for implementation. NSP and the City of Monticello have had a long, positive relationship and throughout the years we have collaboratcd on various projects. The Marketing Subcommittee would like to partner with NSP on this particular project as well. It is our belief that the Marketing Plan hclps spur growth which is both positive f()r the city and NSP. Specifically, the subcommittee is asking that N SP share the cost of the production and publication of the industrial development brochure. After going through a RFP process and interviews, the design fmn of Lecy Design has been identitied as best able to meet the objectives of the subcommittee. The bid for design and production from Lecy Design is $16,000. The Marketing Subcommittee is asking NSP for a 50% match to help defray the costs. We believe that Monticello is well positioned to deliver competitive industrial sites and services. As our marketing efforts bear fmit, the investment made by NSP will be relumed many tinles over. For additional infonnation relating to the request, please do not hesitate to call me at 612- 271-3208. Thank you lor consideration to partner with the City of Montieello. With wann regards, CITY OF MONTICELLO (1 a ~ ~ ci'\ G~U ,,3-.._ Ollie Koropchak Economic Development Director . c: File \\(~ --,-,--~,~-_... ""..,'.". ,.'"..~.,.. "'.--,._~-"'-" ... ... ----... -....., ..... -.." ---.. Monticello City Hall, 250 E. Broadway, P6-B~;)i47~M~;;;ti'~llo, MN 55362-9245 . (612) 295-2711 · Fax: (6] 2)~i954404 OFfice of Public Works, 909 GolF Course Rd.. Monticello, MN 55302 · (612)295-3170 · Fax: (612) 271-3272