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HRA Agenda 06-06-1985AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, June 6, 1985 - 7:00 P.M. Members: Chairman Gary Mieber, Bud Schrupp, Ken Maus, and Roger Hedtke. 1. Call to Order. 2. Approval of Minutes from the April C, 1985, and May 2, 1985, Meetings. 3. Consideration of Renewing Option on Lots 13, 14, and 15, Block 51. C. Consideration of Selling Price for Lot 5, Block 3, Oakwood Industrial Park. 5. Other Business. 6. Adjournment. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, April 4, 1985 - 7:00 P.M. Monticello City Hall Members Present: Chairman Gary Wieber, Bud Schrupp, and Ken Maus. Chairman Wieber opened the meeting asking for approval of the 3/11/85 minutes. Motion to approve said minutes was made by Bud Schrupp, seconded by Ken Maus, and passed 3-0. Allan briefly explained the latest events that have taken place with the STP Project. He reported on the meeting with Mark Daytona office and the meeting with a Norwegian window manufacturer. When asked what location would be used and how much the land would cost, Allen stated that the 10 acres needed would depend somewhat on where the Boddor Project would be located. It is thought that the building should start on a corner and proceed inward, thus allowing for future expansion. The cost has been sot at approximately 511,000-514.000/acro plus assessments. Chairman Wicber asked if Industrial Revenue Bonds (IRB'o) would be requested and what position the City was in to receive IRB's. Allen stated that Dick Nadeau (MM Dept. Ec. Dev.) stated that if all funds for non-antitlament cities were awarded, some projects would not happen and the funds would return to the competitive pool. Likewise, if entitlement cities have projects that fall through, their appropriations would be pooled for the competition in September. Overall, he fools confident of Monticello getting an IRB allocation. Allen explained the process of competing for IRB's and time frame. Chairman Wisher asked about getting IRB's from Backer. Allen stated that by entering a Joint Powers Agreement with the City of Backer, we could possibly get funds should the competitive pool dry up. Wiabor asked what money, either in the form of low interest loans or grants, can Monticello expect to receive for this project. Allan stated that the State of Minnesota was very reluctant to commit itself. They did state that whatever monies were available, both Hastingo and Monticello would gat the same. How they package the money is up to them. Dayton's office also otated that if legislation is passed regarding enterprise/opportunity zonas. Monticello may utilise this type of incentive to perhaps abato corporate income, property, and saloo taxes for a nogotiabla number of years. Allan stated that assuming all the given were true, we could expect approximately $35,000-350,000 in tax increment that -1- C�� BRA Minutes - 4/4/85 would be used to retire the bonds. He further stated that although this would benefit a particular contractor and/or developer, it is needed to reduce the amount of lease payment per square foot. The project is risky, and thus some financial incentives are needed to make it attractive. The actual incentives would be given to the contractor/developer but would eventually be passed onto STP in the form of lover lease payments. Ken Maus inquired as to the commitment of the 5-6 tenants. Allen stated that he was waiting for more details on the types of firma, number of jobs and square footage needed. He added that although no guarantees have been suggested thus far, a representative from a Norwegian window company will be visiting Monticello and discussing the "Greenhouse" project. Bud Schrupp stated that contractors would want letters of intent, etc., to enter this kind of arrangement. Allen stated that when STP announces that Monticello is the site for this project, then the particular agreements and contracts would be drawn up. Allen stated that he wanted the Authority to approve the concept and give staff authorization to proceed with the preparation of the TIP Plan if warranted. Gary asked if Construction 5-a office/warehouse operation was being considered for this project. Allen stated that approximately five general contractors ware asked for estimates of building cost and lease amounts. Approximately three area firms wore asked if they wanted to participate in the concept. They were PSI, IXI, and Construction 5. Allen explained that the five contractors were willing to build, own, and lease back to the tenants Q $2.85 to 53.00/sq. ft. for the printing project. Because the "Greenhouse" project was more risky, the lease payments r000 to $4.50/sq. ft. He stated that the local firma' participation would probably be more favorable. Bud Schrupp moved to approve the proposed concept and authorize otaff to prepare the TIP Plan if warranted. It vas ascended by Kon Maus and passed 3-0. Ken Maus stated that the Authority ohould carefully conolder who the SIF to granted to. No said he wasn't againot the project, but suppose a local firm applies for TIP and is turned down because they aro a little ohaky financially. The local firm may come back and any that we aro subsidizing foroignoro but will not help local business. Allen stated that this van a difficult area, and each case should be judged on its Morita. The next item on the agenda was the Dodder proposal. Gary explained the tour members of the Industrial Development Committee ware given and the coveral buildings that ranged from 100,000 to 600,000 square Lost. He then stated that this now project was Intended to start with 70,000 sq. ft. and expand several timoo during the next 7-5 years. -2- ��1 HRA Minutes - 4/4/85 Gary explained that the buildings were vary impressive and the employees to be young, well-trained individuals. fitness playa an important part of their concept. Each building has their own saunas, weight/exercise rooms, or handball courts for the employees' use. Allen explained that two or three locations in Oakwood Industrial Park were being considered. He stated that approximately 20 acres are needed for future expansion. The Beddore felt that Monticello was a good choice as far as they were concerned, but their clients have stated that it would be an inconvenience for them if they had to drive 20-30 more minutes from the airport to get to the plant. In this business, the client ties to personally approve the color on site. Another potential problem would be getting the building completed by the 15th to the 30th of June for receiving the two new presses. Allen explained the TIP information and showed the authority a sample TIF Plan that he prepared. If during the next week or two the Reddors choose Monticello to construct the building, then we need approval of the concept and authorization to prepare the TIF Plan. Bud Schrupp moved to approve the proposal concept and authorize preparation of the TIP Plan if warranted. It was seconded by Ken Maus and passed 3-0. Allen stated that we would know Beddor's decision by the 15th of April. The third item on the agenda involved the proposal concept for Northern Insulation. Allen informed the Authority of Northern'e background and that since their building was destroyed by fire in late 1984, they have been leasing space in Elk River. That space has become too small and expansion is warranted. They do not like the idea of expanding in Elk River bocause of the high cost of electricity and the taxes. When they considered moving to other locations between Elk River and the Metro Area, the savings in electricity vara negated by the increase in taxes. It wasn't until I contacted them about Monticollo'e low taxes, NSP -0 lower electrical rates, and excellent transportation eystam that they considered Monticello. Their present looso in duo to expire in July, and something may happen in 1985. A railroad siding with capabilities to off-load is a must. Ton ton roads aro a must for their incoming oupplios. This Kan posed a problem in the past at the Elk River site. Pour to five aeroo of land aro desired, and a 12,000-15,000 sq.ft. building is needed. Bud Schrupp moved to approve the proposal concopt and authorized staff to prepare the TIP Plan if warranted. It was seconded and panned 3-0. -3- P HRA Minutes - 4/4/85 Ken Maus inquired about the Clow Stamping building or the Beat in Webb building. Allen stated that Clow's building would he too large, but perhaps the Best in Webb building may work. He added that if it is the right size and meets Northern's requirements, it will be suggested. In other business, Allen stated that the City Council authorized staff to complete a title search on the Hasa property. If the title search is clean, the Council authorized staff to give $3,000.00 in earnest money for their property. They have made an offer on a house located in Balboul Estates. They have agreed on a total price for their property of $45,000.00. Allen stated that perhaps Ken Stolp of K G H Auto would sell and then the Poet Office would expand their facility and construct a drive-thru mailbox area. We have provided the Post Office with demographic information, and they are checking into the feasibility of the expansion. A discussion was held as to the type of building and the possible building layout, etc. There was also some discussion of making the building larger than needed and perhaps leasing and/or selling apace to various service firms. This building layout came about as a result of some negative discussion that took place between Metcalf 6 Larson. Chairman Cary Wieber asked if Allen still had the list he prepared for possible HRA members. Allen looked back in the agendas and found the list. Next the Authority suggested more names for possible HRA membership. Allen stated that HRA members needed to live within the corporate limits of Monticello. The following names were suggested in addition to the existing list: Jeff Erickson Paul Lutrko Loo Nelson Lloyd Lund Pete Backer Roger Hadke Kermit Benson There being no further business, the mooting was adjourned. & L, - �-- �- Allan L. elv t 6xecutivs Secretary for HRA MIAaTEB MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, May 2, 1985 - 7:00 P.M. Members: Chairman Gary Mieber, Bud Schrupp, and Ken Maus. As of the writing of the agenda and agenda supplement, no business needed to be acted upon at the May meeting. KRA members were all contacted at least two days prior to May 2, 1985, and notified that the meeting would be cancelled unless soma urgent business arose during the two days preceding the meeting. The next regular HRA meeting is scheduled for June 6, 1985, at 7:00 P.M. at City Hall. There being no business, the meeting was cancelled. Allen L. Pelvit Executive Secretary for HRA .1. HRA Agenda - 6/6/85 ` 3. Consideration of Renewing Option on Lots 13. 14, and 15, Block 51. (A. P.) A. REFERENCE AND BACKGROUND: Approximately 18 months ago, Brad Larson and Jim Metcalf started their quest for a multiple housing unit for the elderly. At the same time, Mr. Joe Poehler had an application with Farmer Home Administration (FMHA) pending. Last May, Metcalf and Larson -s application was submitted for practically the same proposal. The one thing that they needed was control of the site. In June of 1984, the HRA granted a 6 -month option on Lots 13, 14, and 15, Block 51. The cost was $2,400.00 and was not refundable, nor could it reduce the selling price if the property was purchased early. In December of 1984 another 6 -month option was granted. This was based on evidence that FmHA gave indicating preliminary approval. If the property was purchased, the remaining option money was to reduce the selling price accordingly. When asked the statue of their application, Brad Larson stated that they have been given District and State FmHA approval and the application is in Washington, D.C. I indicated that their current option on Lots 13, 14, and 15, Block 51, will expire on June 19 and asked if they wished to renew it again. Brad indicated that they did. He did, however, ask that they be granted a 90 -day option containing the same conditions. B. ALTERNATIVE ACTIONS: 1. Do not renew the option, in which case we actively market the property. 2. Renew the option for 3 montho with Authority to determine selling price and option terms. 3. Ronow the option for six months with the Authority to determine selling price and option amounts. C. RECOMMENDATION: The Authority has hold this property for approximately two years. we have boon fortunate to have an interested party paying our Interest payments the last 12 months. I oncourago you to renew the option on Lots 13, 14, and 15, Block 51, but I recommend that the terms remain the same as the existing option. It you will remember, the original option called for $2,400.00 to be paid for the option, and that amount was not to be refunded or reduce the falling price when sold. Jack Reeve was quite concerned BRA Agenda - 6/6/85 about it at that time. Be and the rest of the Authority had relaxed the terms for the second option. Additionally, staff recommends that Alternative 03 be followed. This allows us to cover our interest payments and still be as flexible as possible for the developer. D. SUPPORTING DATA: Copy of HRA option on Lots 13, 14, and 15, Block 51. HAA Agenda - 6/6/85 �= ADDENDUM TO SUPPLEMENT 3. Consideration of Extending Option on Lots 13, 14, and 15. Block 51.(A.P.) A. REFERENCE AND BACKGROUND: When preparing the supplement for this. I neglected to fully explain the situation. I feel that this item needs a more thorough explanation before you can make your decision. In the current supplement. I referred to recommendation •3. I also stated that when the original option was made, Jerk Reeve was very adamant about not refunding any monies or utilizing any balances to reduce Usu puauh4uu pLluu. The second option granted stated that when the land was sold, the unused portion of the option money should be applied toward the selling price. In making your decision, you should also know the following: The BRA holds the note (mortgage) in the amount of $35,000.00. The note bears interest at the rate of 11t with interest payments due on May 9 and November 9 of each year. On may 9, 1985, we paid $2,256.29 for the months of November, 1984, through May 9, 1985. The money received for this option will offset the interest of the previous six months. From May 9, 1985, until November, 1985, we will accrue interest at $12.45/day. Assuming that the option expires its term, we would then need another $2,256.29 to cover the interest owed. If the option would not be renewed, we must find another means of offsetting the $2,256.29. One way would be to write it off as interest expense, and thus show a net lose on this of approximately (5500.00). Another means of offsetting the interest would be to renegotiate the selling price and include the next interest payment. Example: $35,000.00 Mortgage 25,244.00 Various improvamonts/eito preparations $60,244.00 2.255.00 6 months- interest (5/9/85 to 11/9/85) $62,500.00 Now purchase price Based upon the foregoing information, staff recommends that you grant a 6 -month option and negotiate a now selling price to at least break even. HRA Agenda - 6/6/85 ADDENDUM TO SUPPLEMENT upon your decision to grant or not grant an option on Lots 13, 16, and 15, Block 51, to Metcalf 6 Larson, we must consider the future use intended for the properties known as the Old Ford Garage. Let's assume that an option is granted and the Elderly Housing Project continues. Furthermore, let's also assume that the Elderly Project eventually takes place. It then becomes this Authority's responsibility to control the area surrounding the housing project. Since last winter when we tried to pursue condemnation proceedings and redevelop the property, Pat Townsend has decided to part ways with Larry Flake. Mr. Flake has discussed his future plane with members of the staff, and the only feasible plan would be to remodel the present building and lease it out. We see nothing wrong with the remodeling project, but we do see some problems with future tenants. Now that Pat Townsend will be vacating the building, the conditional urea will expire as well. For Mr. Flake to lease his space to another business with a similar major repair business, they must reapply for a conditional use permit. The Question that is before the Authority is: If the Elderly Housing Project develops, does the Authority favor a minor/major auto repair business in the Old Ford Garage? If not, we must recommend that to the Planning Commission. If the Authority wishes to permit a minor/major auto repair business adjoining an Elderly Housing Project, a conditional use permit must be applied for, and you should recommend to the Planning Commission what conditions you feel appropriate. C - - - _:ss- • - . - Dwwtmwd of 252 Federal Bldg., U.S. Courthouse AWicuftum Adninbttation St. Paul, Minnesota 55101 5-24-85 River Park View Apartments Ltd. Ptn. 21370 John Killeen Drive Rogers. M 55347 Attn: Brad Larson Dear Mr. Larson: Farmers Home Administration has reviewed your elderly proposal and have found it satisfactory. As we told you earlier. all buildings greater than two stories in height must be authorized by our National office before we can issue a letter of conditions. We have asked them to provide a response by mid-June so that you may proceed with your docket preparation in hopes of finding funding in our end of fiscal year pool in August. \ As soon as your docket in returned from Washington, we shall provide Washing- ton's response to you. Sincerely, RUSS BJORHUS State Director 44 By: William M. Slininger Acting Chief. Rural Housing 010 r "" Aen.mwon M &n eor 000%0" w Cp11�/1bd OK�MWYai p�WOE�Mrb �� B�udr. d Ap�M/� 1WM+pm. a C �7t4 I l' 1be Option attached hereto dated June 19, 1986, and incorporated herein as if set forth in full, having been assigned by Monticello Elderly Partners to Metcalf & Larson, a Minnesota General Partnership, is hereby extended until June 19, 1985, upon payment of $2,4OD.00, receipt vhereof is acknowledged, and all other terms of the Option remain in full force and effect, except that if said Option is exercised before June 19, 1985, $400.00 per month for each month reining on the Option term shall be applied against the purchase price. Decealber�� 1986. HX61 W & REOEVELEPNM AUn DF= CW 'lam CT44 OF 10mr9"I0 oj�j ByUL': 7K-Mvlt Executive Secretary semi By/ Gary Wleber Chairman of Monticello Blid Subscribed and sworn to before me this L � day o1 1984. Dmftedd by: Owm— ML7CAt.F & LARSCN ® oa � rd, wee Attorneys at lam D. 0. Box 448 313 Nest BrosdYtuy Monticello, Mimesota 55382 I OPTION Effusion The Option attached hereto dated June 19. 1984, and incorporated herein as if set forth in full, having been assigned by Monticello Elderly Partners to Metcalf 6 Larson, a Minnesota General Partnership, is hereby extended until December 19. 1985, upon payment of 12,400.00 receipt whereof is acknowledged, and all other terms of the Option remain in full force and effect, except that if said Option is exercised before December 19. 1985. 8400.00 per month for each month remaining on the Option term atoll be applisd against the purchase price. Dated, Juga_. 1985 BOUSIIIC 6 REDEYEIAMMT AUTHOUTT OF THE CITY OF IE131TICZM Syn Al Pelvit, Executive Secretary By: Cary Wisher. Chairman of Monticello HRA Seal Subscribed and sworn to before as this day of . 19_. Notary Public Dratted byt METCALF 6 CARSON Attorneys at Law P.O. son 446 Monticello. IDI 55562 (612) 195-32331 421.3393 r) OPTION EXTENSION The Option attached hereto dated June 19. 1984, and incorporated herein as if set forth in full, having been assigned by Monticello Elderly Partnere to Metcalf b Larson, a Minnesota General Partnership, is hereby extended until September 19, 1985, upon payment of $1,200.00, receipt whereof is acknowledged, and all other terms of the Option remain in full force and effect, except that if said Option is exercised before September 19, 1985, $400.00 per month for each month remaining on the Option term shall be applied against the purchase price. `. Dated: June , 1985 HOUSING 4 REDEVELOPMENT AUTHORITY OF THE CITY OF MONTICELLO By: Al Pelvit, Executive Secretary By: Gary Vieber, Chairman of Monticello NRA Seal Subscribed and sworn to before me this day of , 19_. Notary Public Drafted by: METCALF b LARSON Attorneys at Law P.O. Box 446 Monticello. MN 55362 (612) 295-3232; 421-3393 OPTION WMENSION The Option attached hereto dated June 19, 1984, and incorporated herein as if act forth in full, having been assigned by Monticello Elderly Partnere to Metcalf b Larson, a Minnesota General Partnership, is hereby extended until December 19. 1985, upon payment of s 2,600.00 receipt whereof is acknowledged, and all other terns of the Option remain In full force and effect, except that if said Option is exercised before December 19. 1985. $400.00 per moots for eaeb comb remaining on the Option term aball be applied agataat the purchase price. Dated, J=*,-. logs 310 vw • 2Mta.0MW AotRMTT of >U c2Tf a 110WiCE" Byl ds Pelvit. Executive secretary sy, Gary Weber. chairman of Monticello NM Seal Subscribed and sworn to before me this day of . 19_. Notary Public Drafted by, NETCALP • LARS0N Attormays at Law P.O. 0os 446 lbotltallo.o. la 33363 ,3 (612) 393-32311 411 -MS N OPTION EXTENSION The Option attached hereto dated June 19, 1984, and incorporated herein as if set forth in full, having been assigned by Monticello Elderly Partnere to Metcalf b Larson, a Minnesota General Partnership, is hereby extended until September 19, 1985, upon payment of $1,200.00, receipt whereof is acknowledged, and all other terms of the Option remain in full force and effect, except that if said Option is exercised before September 19, 1985, $400.00 per month for each month remaining on the Option term shall be applied against ,the purchase price. Datedt June , 1985 HOUSING 6 REDIVELOPMERT AUTHORITY OF THE CITY OF W TICELLO By: Al Pelvit, Executive Secretary Byt Gary Yisbar, Chairman of Monticello HRA Seal Subscribed and sworn to before mo this day of , 19_. Notary Public 1 Drafted byt METCALF 6 LARSON Attorneys at Law P.O. Bot 446 Monticello. MN 55762 (612) (612) 295-72721 421-7197 3 CMCN EXr NSSICN The Option attached hereto dated June 19, 1984, and incorporated herein as if set forth in full, having been assigned by Monticello Elderly Partners to Metcalf & Larson, a Minnesota General Partnership, is hereby extended until June 19, 1985, upon payaent of $2,400.00, receipt whereof is acknowledged, and all other terms of the Option rein in full force and effect, except that if said Option is exercised before June 19, 1985, $400.00 per month for each month mining on the Option term shall be applied against the purchase price. December 1984. HXBING A fECEYFLQPMW AUnDRM CP TM CI1Y C1F I MMMID 89 t ` t Executive Secretary Sezl / BY Guy B'ieber Chairnw of Monticello HM Subscribed and suortn to before me 01 th n s�day o f_\ )"N II �"i , 1984. Rotary Publtc Dratted by NOTARYDNBIOTA HEICAL.F & LAR.XN YYAIOMTOOINIIY Attorneys at Law my0OwhL EV. APILn,t= P. 0. Box 448 313 west Broadway Monticello, Minnesota 55362 I It HRA Agenda - 6/6/85 Vi 4. Consideration of Selling Price for Lot 5, Block 3, Oakwood Industrial Park. (A.P.) A. REFERENCE AND BACKGROUND: On February 26, 1985, IXI purchased Lot 6, Block 3, Oakwood Industrial Park. $8,100.00 was paid to the Authority, with the remaining $7,400.00 to be received on or before May 20. We received payment in full ($7,551.45 P 6 I) on May 16, 1985. The majority of this lot is designated for parking lot and recreational facilities. During March and April, I assembled a proposal suggesting that IXI construct the remaining seven buildings of their complex over the next two years. This proposal was being prepared during their recent layoff. When the layoff was made known, we were a little skeptical of their future plane. IXI representatives told me that several things contributed to the layoffs: 1) Because IXI is a young company, they tried some things with their personnel that just did not work; 2) They wanted to get rid of a few undesirables; and 3) Machines with the ability to produce 10 times more than 1 individual replaced some employees. IXI stated that this did not change the plans they had for future expansion. In fact, they were agreeable to look at the proposal and see if it worked with their corporate plane. As you will sea by looking at the attached proposed nap, Tax Increment Finance Districts •1 and 04 compromise IXI'e six existing buildings. The remaining seven buildings are proposed to be included in one tax increment finance district. We will lose one year of tax increment in having one district but will save on professional expanses associated with preparing two tax increment finance districts. In reviewing the proposal, you will see that buildings 7-13 have a total estimated market value (EW) of $1,527,800.00, Assessed Value of $990,760.00, and produce a tax increment totaling $393,913.00. The HRA expecte to receive a total of $619,445.00 from Tax Increment Finance Districts #1, #4, and the proposed now district. At the present time, the NRA owes a total of $220,414.00 ($28,863.00 on TIP 01. $36,751.00 on TIP #4, and $154,800.00 on TIP 17). Adding present and future interest rates onto the debt, we still estimate an $180,000.00 gain. The above samplo is baud on the assumption that all remaining buildings are constructed as per proposal. If the buildings are delayed for 1-2 years, than the tax increment would be decreased, and our not result would also be reduced. Under this scenario, the HRA could transfer Lot 5 to IXI for $1.00 $2,500.00 per ears, or somowhero in between. -3- HRA Agenda - 6/6/85 r Since this proposal was presented to IXI, the City has met with (STP) Scandinavian Transport Products and suggested working with IXI for leasing manufacturing space. If this type of arrangement took place, Monticello would be eligible for low interest (5i) CDBG Funds (loan), a $100,000.00 grant from the State, and certain financial incentives similar to those just passed under the Saturn Bill. Assuming this, we could use the $100,000.00 to reduce our debt to the City ($154,800.00-$100,000.00 - $54,800.00). The current debt from TIP 01 is $28,863.00, and the existing debt on TIP 04 is $36,751.00. This $65,614.00 plus future interest of approximately $50,000.00 totaling $115,614.00 when deducted from the $228,876.00 would make $113,262.00 available to offset the remaining debt ($54,800.00) on Lots 5 and 6. B. ALTERNATIVE ACTIONS: 1. Take no action at this time. 2. Proceed with the proposal as submitted to IXI assuming the use of tax increment financing and establish the selling price somewhere between $1.00 and $15,500.00 ($3,100.00/acre). 3. Set the selling price between $1.00 and $50,000.00 ($10,000.00/acre) and use financial incentives that will be available to enterprise/ opportunity zones similar to the Saturn Bill just passed. (Tax increment financing will not be used in this instance.) C. RECOMMENDATION: Staff does not have a firm recommendation at this time. Our recommendation depends on whether STP proceeds with the "Greenhouse" project with IXI. If that scenario develops, then perhaps we could give Lot 5 to IXI at a nominal amount and use tax abatements for those buildings occupied by STP. If STP does not develop or IXI develops the rest of their complex prior to STP -s decisions, then we suggest utilizing tax increment financing and the proposal described above (Alternative 02). A decision is not required at this time. However, if IXI comae in and wants to move forward, we would like an idea of what to ask for Lot 5. D. SUPPORTING DATA: Copy of IXI proposal with map. -4- Assuming IxI constructs 1001 of their proposed 13 -unit complex, the total ERV will be $2,487,700.00. These ERV's are broken down into Tax Increment Districts (TIP) as follows: TIP O1 Building 01 $133,400.00 Building 02 133,400.00 S 266,800.00 TIP 04 Building 03 $276,300.00 Building 04 133,400.00 Building 05 133,400.00 Building 06 150,000.00 $ 693,100.00 •TIP 0? Building 07 $567,900.00 Building 08 276,300.00 Building 09 137,400.00 Building 010 133,400.00 Building 011 133,400.00 Building 012 133,400.00 Building 013 150,000.00 51.527.800.00 TOTAL ESTIMATED MARKET VALDE 32.487.700.00 •This TIP District has not been established yet. Assumption: Assume IK1 not only completes the proposed construction, but they will complete by 12/31/86. We must further assume that IKI will commence with Building 17 and follow the enclosed site plan sequence and time frame. Building 07 completed by 12/31/85 Building 18 completed by 12/31/85 Building 09 completed by 12/31/86 Building 010 completed by 12/31/86 Building 111 completed by 12/31/86 Building 112 completed by 12/31/86 Building 113 completed by 12/31/86 Establish TIP District and certify June, 1985, thus the District would expire in 1995. The first increments from Buildings 07 and 18 would be assessed in 1986 and payable in 1987. The second set of Increments, from Buildings 19 and 013, will come in 1988 and be received for 7 years. Buildings (748) $844.200.00 860,000 s .28 - $16,800.00 784.200 s .43 - 337.206.00 $354,006.00 1 $354,006.00 - 5,600.00 OAV $348,406.00 X .081305 let year (1986) S 28,327.15 1 YEAR Buildings (768) plus (9,10,11,12,13) $60,000 x .28 - $ 16,800.00 1,467,800 x .43 - $631.154.00 $647,154.00 $1,527,800.00 - 60,000.00 $1,467,800.00 $ 647,954.00 - 5,600.00 OAV $ 642,354.00 X .081305 S 52.227.00 7 YEARS S 28.327.15 (1 year) $ 28.327.15 52.227.00 (7 years) $365,586.13 TOTAL IMMEMENT $393,913.28 TIP # 7 A - Estimated Date 6/1/85 B - Bass Year Asses -meat Date 1/2/84 C - 5600 D- E- P - G- H I - Adjusted Factor 1,119 MILL RATE TAR INCREMENT Tax Payable 1986 J - 1/2/85 5,600 K - Adj. Base Value 6,266 (666) No T.I. J Tax Payable 1987 1/2/86 354,006 Adj. Base Asst. Val. 7,012 346,994 Tax Payable 1988 1/2/87 647,954 7,847 640,107 Tax Payable 1989 1/2/90 647,954 8,780 639,174 Tax Payable 1990 1/2/91 647,954 9,825 638,129 Tax Payable 1991 1/2/90 647,954 10,994 636,960 Tax Payable 1992 1/2/91 647,954 12,303 635,651 Tax Payable 1993 1/2/92 647,954 13.762 634,192 Tax Payable 1994 1/2/93 647,954 MILL RATE TAX INCREMENT X.081305 S 28,212.35 X.081305 S 52,043.90 X.081305 3 51,968.04 X.081305 8 51,883.08 x.081305 S 51,788.03 x.081305 6 51,681.60 x.081305 0 51,562.98 15,405 q 632,549 X.081305 • 8 51,429.40 y 8287,577.00 (� i INCA611ffi1T YEAR DISTRICT 41 DISTRICT 44 DISTRICT 4 1 TOTAL 1984 3,030 -0- -0- 3.030 1965 6,453 -0- -0- 6,453 1986 6,583 22,667 -0- 29,250 1987 6,547 22,631 28,212 57,390 1988 6,507 22,590 52,044 81.141 1989 6,462 22,545 51,968 80,975 1990 6,412 22,608 51,883 80.903 1991 6,356 22,560 51,788 80,704 1992 22,498 51,682 74,180 1993 22,427 51,563 73,990 1994 51,429 51,429 1995 48,350 180,526 390,569 619,445 J CI Jim m0000 e } A Il N 6' Q S I'�. Ca lot 5- BYLAWS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF MONTICELLO. MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Housing and Redevelopment Authority of Monticello, Minnesota." Section 2. 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. Section 3. Office of Authority. The offices of the Authority shall be at the Village Hall in the Village of Monticello. State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority shall be a Chairman, a Vico-Chairman, and a Secrotary-Treaeuror. Section 2. Chairman. The Chairman shall preside at all meetings of the Authority. Except as otherwise authorized by reoolution of the Authority, the Chairman shall sign all contracts, deeds, and other inetrumente made by the Authority. At each mooting the Chairman shall submit ouch recommendations and information an he may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice -Chairman. The Vico-Chairman shall perform the dutioe of the Chairman in the absence or incapacity of the Chairman; and in case T of the resignation or death of the Chairman, the Vico-Chairman shall perform ` such duties as are imposed on the Chairman until such time as the Authority V shall select a new Chairman. Section 4. Secretary -Treasurer. The Secretary -Treasurer shall perform the duties of a Secretary -Treasurer for the Authority. Section 5. 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 Authority. He shall be charged with the management of the housing projects of Authority. As assistant to the Secretary -Treasurer, the Executive Director in his own name and title shall keep the records of the Authority, shall act as Secretary of the meetings of the Authority and record all votes, and shall keep a record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to his office. He shall keep in safe custody the seal of the Authority and shall have power to affix such Deal to all contracts and instruments authorized to be executed by the Authority. He shall have the caro and custody of all funds of the Authority and shall deposit the same in the name of the Authority in ouch bank or banks as the Authority may select. The Secretary -Treasurer shall sign all orders and chocks for the payment of money and shall pay out and disburse ouch moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all ouch orders and chocks shall be counter-signod by the Chairman. He shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority, at each regular meeting (or oftener when requested), an account of his transaction and also of the financial condition of the Authority. He shall give such bond for 'r : 'M the faithful performance of his duties as the Authority may determine. V The compensation of the Executive Director shall be determined by the Authority. Section 6. 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 7. Election or Appointment. The first Chairman shall, pursuant to his appointment, serve in the capacity of Chairman until the expiration of his term of office as Commissioner. The Vice -Chairman, Secretary -Treasurer, and, except in the case of the First Chairman, the Chairman shall be elected at the annual meeting of the Authority from among the Commissioners of the Authority, and shall hold office for one year or until their successors are elected and qualified. The Executive Director shall be appointed by the Authority. Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have ouch term as the Authority fixos, but no Commission: of the Authority shall be eligible to this office. Section S. Vacancies. Should the office of Chairman, Vice -Chairman, or Secretary -Treasurer become vacant, the Authority shall elect a successor from its membership at the next regular meeting, and ouch election shall be for the unexpired term of said office. When the office of Executive Director becomes vacant, the Authority shall appoint a successor, as aforesaid. Section 9. Additional personnel. The Authority may from time to time employ such personnel as it dooms necessary to exercise ito powers, duties, and functions as prescribed by the Municipal Housing and Redevelopment Lew of Minnesota applicable thereto. The selection and compensation of -3- such personnel (including the Executive Director) shall be determined by the Authority subject to the lave of the State of Minnesota. ARTICLE III - MEETINGS Section 1. Annual Meeting. The annual meeting of the Authority shall be held on the 6th day of April at 7:30 o -clock p.m. at the regular meeting place of the Authority. In the event such date shall fall on a Sunday or a legal holiday, the annual meeting shall be held on the next succeeding secular day. Section 2. Regular Meetings. Monthly meetings shall be held without notice at the regular meeting place of the Authority on the let Wednesday of each month, at 7:30 o -clock p.m., unless the same shall be a legal holiday, in which event said meeting shall be hold on the next succeeding secular day. Section 3. Special Meetings. Special meetings of the Authority may be called by the Chairman or two members of the Authority for the purpose of transacting any business designated in the call. The call for a opocial meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Authority or may be mailed to the business or home address of each member of the Authority at least two (2) days prior to the data of ouch special mooting. At such special mooting no business shall be considered other than as designated in the call, but if all of the members of the Authority are present at a special meeting, any and all business may be transacted at such special meeting. Section 1. Quorum. The powers of the Authority shall be vested in -d. the Commissioners thereof in office from time to time. Three Commissioners shall constitute a quorum 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 Authority upon a vote of a majority of the Commissioners present. Section 5. Order of Business. At the regular meetings of the Authority, the following shall be the order of business: 1. Roll Call. Z. Reading and approval of the minutes of the previous meeting. 3. Bills and communications. 4. Report of the Executive Director. 5. Reports of Committees. \' 6. Unfinished business. 7. New business. S. Adjournment. All resolutions shall be in writing and shell be copied in the journal of the proceedings of the Authority. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be by roll call, and the yoas and nays shall be entered upon the minutes of such meeting. ARTICLE IV - AMENDMENTS Amendments to Bylaws. The bylaws of the Authority shall be amended only with the approval of at least three of the members of the Authority at a regular or a special meeting. After discussion of the resolution, Commissioner LaBau moved that said resolution be finally adopted as introduced and read. The motion was seconded by Commissioner Brauch. The question being put upon the final adoption of said resolution, the roll was called with the following result: a C -6-