HRA Agenda 08-05-1987AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
J� Wednesday, August 5. 1987 - 7:OOAM
City Hall
Members: Bud Schrupp, Ren Maus, Ben Smith, and Al Larson.
1. Call to Order.
2. Approval of July 1, 1987 HRA Minutes.
3. Consideration to Finalize the Purchase of the Old Monticello
Ford Property.
4. Consideration to Amend Tax Increment District 02 Financial Plan.
S. Consideration of the BRA to Endorse a Section 8 Housing Assistance.
6. Comparison of Local Property Estimated Market Values and Assessed
Values.
7. Consideration for a HRA member.
8. Other Business.
9. Adjournment.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 1, 1987 - 7:OOAM
City Hall
Members Present: Bud Schrupp, Ken Maus, Ben Smith, and Al Larson.
1. Call to Order.
Acting Chairperson Sud Schrupp called the HRA meeting to order
at 7:07AM.
2. A,pproval of the June 17, 1987 HRA Minutes.
With a spelling correction from Wyman to Weiman within the
minutes, Ben Smith motioned to approve the June 17, 1987
HRA minutes. Seconded by Al Larson, motion carried.
3. Consideration to Adopt the Tax Increment District 07 Pledge
Aareement between the HRA and the City of Monticel1q.
Ken Maus made a motion to adopt the Tax Increment District 07
Pledge Agreement which states that the HRA is pledging LOOT
of the increment they collect to the City for the retirement
of these bonds. Bond issuance for District 07 was $155,000.
Ben Smith seconded the motion, motion carried 4-0.
4. Review of the HRA Offer of the Old Monticello Ford Property.
The HRA suggested a counter offer of $70,000.00 and to send
Mr. Flake a copy of the appraisal. Koropchak asked the HRA
for their top purchasing price, this was to be a recommendation
by the city staff .
S. Consideration of lntormation and Comment on the Directors
of Monticello Development.
Tho HRA felt the DMD should better define their objectives
and goals, change word choices from (report to) to (coordinate),
and if the organization is for downtown aron a possible name
change to Downtown Development or Core City Redevelopment.
The HRA supported the two gentlemen for their willingness to
•,oluntoor and felt their talents for ideas and persuasiveness
was an asset. The HRA recommends that the DMD secretary serve
as coordinator for all committees within.
6. Consideration of Noainees for HRA Memberkhip.
The HRA members s uggosted the names of Bob Waiman, Dr. C. McCarty,
Everette Ellison, and Peter Beckor as HRA nominees. This member's
torm will expire December, 1987. Koropchak is to contact these
individuals for acceptance.
7. Other Bus naae.
The HRA membors discussed tho possibilities of the Poet Office
moving out from the downtown area and if so, what affects would
it have on the downtown podostrian traffic. Doos the City plan
HRA Minutes — 7/1/87
i
on door to door delivery in the near future, would there be
a downtown satellite office, and would the cost to the
city be less outside the downtown area? The members varied
on their personal opinions.
The HRA discussed the hiring of a Zoning/Planning Administrator
and felt consideration should be given to the current position
of City Assessor. Was that a wise decision to have a City
Assessor versus a County Assessor? The HRA asked Koropchak
to present a comparison of twelve industrial, commerical, and
retail estimated market value and assessed value over five years.
8. Adtournment.
Ben Smith motioned to adjourn the meeting and Ken Maus seconded
that motion.
`Y" 14M. 1\0 0Q�
Olive M. Koropchak
Executive Secretary
Monticello Housing and Redevelopment Authority
W
1.1
b
HRA Agenda - 8/5/87
3. CONSIDERATION TO FINALIZE THE PURCHASE OF THE OLD MONTICELLO
FORD PROPERTY.
A_ RFFFReJrR ANn RArKrRnmmn,
At the last meeting the HRA recommeded $70,000 for the Old
Monticello Ford Property with tap dollar to be negotiated
through the City. Tom Eidem's suggested top dollar was
$75,000. Mr. Flake has signed a purchase agreement on a
$75,000 Contract for Deed. The HRA has not executed the
purchase agreement. Upon review by the City Attorney a
contingency was added that the HRA (buyer) has the right to
prepayment privileges, without penalty, on the Contract for
Deed payment schedule. The buyer would need the Contract for
used In order for a development to occur. Mr. Flake is
wiliing to agree if he receives the total six months
interest within the period the total payment of the Contract
for Deed was made. The most the HRA would be out is $2,500.00
which is highly unlikely because we would need to find a
developer and close the sale by June 30, 1988. Also, by
the time we negotiate a deal with a prospective developer
and complete the transactions the closing date could be
worked out around the six month payment due. The issue remains
one of principle and how badly the HRA would like to acquire
the building for demolition.
B. ALTERNATIVE ACTIONS.
1. Accept $75,000 Contract for Deed (purchase agreement) with
prepayment privileges and agreement to penalty of current total six
months interest due at closing.
2. Accept $75,000 Contract for Dead with prepayment privileges,
without penalty.
3. Forgot the Old Monticello Ford property purchase.
C. STAFF RECOMMENDATION.
Staff acknowledges that the HRA would have the $2,500.00 and
backs the decision of the HRA. Staff agrees with the objective
to purchase the said property to eliminate blight but sees
the unlikehood of a developer in the immediate future.
D. SUPPOKIANG DATA.
Purchase agreement with contigencies and payment schedule.
WH
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DB.PURCHASE AGREEMENT �oDENRO,W. R.—m
RECEIVED OF Monticello Housing and Redevelopment Authoritv
a. ovula Five Hundred Dollars and no/100--------------------------------(y 500.00 'DOLLARS
n ..lrrnl npgy W b Wrt O.ynwo b aM Dtrarn• a W.Wrry M
(Check. Cash. to w aep—iw upon a :ew . a Hae—Sun wh h)
249 West Broadway. Monticello
Cantly a Wright e^ •• d wwsole. W bgady 0—ow m anon.. m.x:
Lot 1 except the Northerly 30r, Lot 2 except the Northerly 30r, Lot 3 except the Northerly
30- of the West 24-, and the West 7L,- of Lot 4, Block 51, Monticello Original Plat, Wright
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an 01 atkh poporiy as u ftn nod nes aw day .ad to an bvjw br eM sen d:
Seventv-five Thousand Dollars and no/100-------------------------------,. 75.000.00 ,OOCuAS
.d,lcn m• bum agnn 10 p.y M nr wo" mems:
Emvn,na,.,W"PWS500.00 alai 24.500.00 .cashew or before September 1. 1987 uw• ofdo.np,
The remaining balance of Fifty Thousand Dollars and no/100 (550,000.00) on a Contract for
Deed at 10% interest rete for 4.5 years. Payments made semi-annual, commencing June 30,
1988, and ending Juno 30, 1992. (See attached payment schedule.)
Seller is responsible for relocation coat of present occupant or occupants of the said
property. Seller is responsible for insurance, water, and sewer until said closing and
retains the right to collect rent of said property until date of closing. Earnest money
is refundable in full if Contract for Dead is not executed at closing date.
This purchase agreement to be executed on or before July 8, 1987, by the caller (Monticello
Ford, Inc., Lawrence Flake); thereafter, the said agreement shall be null and void
and the seller shall have no further obligation to cell or the buyer to purchase.
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PURCHASE AGREEMENT
(Buyer) Monticello Housing and Redevelopment Authority
(Seller) Monticello Ford, Inc., Lawrence Flake
The Buyer has the right of prepayment privileges, without penalty,
on the Contract for Deed payment schedule.
The Buyer has the right of demolition of said property during the
term of the Contract for Deed.
The Seller agrees that said property shall be vacant of occupant
or occupants at time of closing.
Seller shall provide an updated and searched Abstract of Title of
said property within a reasonable time prior to date of closing.
b
MINNESOTA STATUTE 462
HOUSING, REDEVELOPMENT, PLANNING, ZONING
r.
Statute 462.551 Bond Issue for Corporate Purposes.
Neither the commissioners of an authority nor any person executing
the bonds shall be liable personally on the bonds by reason of the
issuance thereof. The bonds and other obligations of an authority
(and such 'bonds and obligations shall so state on their face) shall not
be a debt of the municipality, the state or any political subdivision
thereof, and neither the municipality nor the state or any political
subdivision thereof shall be liable thereon, nor in any event shall
such bonds or obligations be payable out of any funds or properties
other than those of said authority.
L
PAYMENT SCHEDULE
Monticello
Ford, Inc. (Larry Flake)
Contract for Deed
Amount: $50,000.00
Interest Rate: 1OZ
Term: 4.5
years
Payments:
Semi-annual
AMOUNT
PRINCIPAL
INTEREST
PAYMENT
DATE
150,000.00
15,556.00
$2,500.00
;8,056.00
June 30,
1988
44,444.00
5,556.00
2,222.00
7,778.00
December
31, 1988
38,888.00
5,556.00
1,994.00
7,550.00
June 30,
1989
33,332.00
5.556.00
1,667.00
7,223.00
December
31, 1989
27,776.00
5,556.00
1,389.00
6,945.00
June 30,
1990
22,220.00
5,556.00
1,111.00
6,667.00
December
31, 1990
16,664.00
5,556.00
833.00
6,389.00
June 30,
1991
11,108.00
5,556.00
555.00
6,111.00
December
31, 1991
5,552.00
5,552.00
278.00
5,830.00
June 30,
1992
L
HRA RESOLUTION 87-
A RESOLUTION BY THE MONTICELLO HOUSING
AND REDEVELOPMENT AUTHORITY APPROVING THE
ENTRY OF A PURCHASE AGREEMENT WITH
14ONTICELLO FORD, INC.
WHEREAS, the Monticello Housing and Redevelopment Authority (the
"Buyer") shall enter into a purchase agreement with Monticello Ford, Inc.
(the "Seller"), Lawrence Flake, President; and
WHEREAS, both the buyer and the seller shall agree to the terms of
the purchase agreement and all contingencies therein; and
WHEREAS, there was presented to this meeting of the governing body
of the Authority for its consideration and approval, a copy of the
purchase agreement with contingencies and a copy of the contract
for deed payment schedule; and
WHEREAS, the buyer agrees to pay $75,000 for property located at
249 Went Broadway, Monticello, Minnesota; and
WHEREAS, the buyer agrees to earnest money of $500 and $24,500 cash,
paid at closing date, said monies obtainable through the Housing
and Redevelopment General Fund; and
WHEREAS, both the buyer and the seller agree that the remaining balance
of $50,000 shall be on a Contract for Dead at an interest rate of
10 percent for 4.5 years, said monies obtainable from tax increment
generated by River Park View Elderly Project; and
NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing
and Redevelopment Authority in and for the City of Monticello:
1. That the proposed acquisition of said property lies within
Tax Increment Financing Redevelopment District 12.
2. That the proposed acquisition will contribute to the elimination
of blight or dotorioration within the area.
1. That the proposed acquisition and intended demolition of
building located an said property ahall onhanco a devolopor;
thereby, increase the tax base of the City and stimulate
pedestrian traffic in tho downtown area.
The Hnuoinq and Redovelopmont Authority of Monticello, Minnesota
does hereby approve the entry of a purchase agreement with Monticallo
Ford, Inc.
Adopted by the Monticello Housing and Redevelopment Authority this
day of August, 1987.
4
y ATTEST:
HAA Director HRA Chairperson
HRA agenda - 8/5/87
4. CONSIDEFIATION TO AMEND TAX INCREMENT DISTRICT 02 FINANCIAL
PIAN. -- -
A. BACKGROUND AND REFERENCE.
In late 1985, the Tax Increment Finance Plan for District 02 was
modified to include the four parcels known as Hollenbeck, Stelton,
Gustafson, and the now River Park View. The original redevelopment
district included the parcels of Hass, Teslow, Metcalf 6 Larson,
Capps, Monticello Ford, Jones, O'Connor, and City of Monticello.
The district was modified to enhance future HRA projects and to
capitalize on the increment of the Elderly Project to assist in
other projects. Upon the execution of the HRA resolution in the
prior agenda item the HRA becomes a willing buyer of the Monticello
Ford property. In pursuant of the Minnesota Statute, Section 273.74,
Subdivision 4, the Tax Increment Finance Plan must be modified by
the authority if 1) increase in amount of bonded indebtedness to
be incurred; 2) increase in the portion of the captured assessed
value to be retained by the authority; 3) increase in total estimated
tax increment expenditures or designation of additional property
to be acqured by the authority shall be approved upon the notice
and after the dicussfon, public hearing and findings required by
for approval of the original plan.
ESTIMATED BUDGET FOR MODIFICATION 02, DISTRICT 02
Property acquisition $75.000.00
Demolition Cost 11,000.00
Administration Coat 2.000.00
TOTAL PROJECT COST $88,000.00
Lase dnwnpayment 25,000.00
Less demolition 11,000.00
Less administration 2.000.00
HRA General Fund 38,000.00
Contract for Deed 50,000.00
The HRA plane to retire the bonded indebtedness (contract for deed)
by the increment generated on the Elderly Project (estimated annual
tax increment is $17,300.00). Contract for Deed terms are 101
interest rate for 4.5 years. Average annual debt service is $14,000.00.
After full payment of the Contract for Deed, the increment will retire the
B. ALTERNATIVE ACTIONS. remaining total project cost.
1. Adopt the HRA Resolution for Modification 02 of the Tax Increment
Finance Plan Dlstrict02 and request the City Council to set a
public hearing, for the purpose of modification of the finance
plan.
2. Deny adoption of the HRA resolution for Modification 02 of the
Tai Increment Finance Plan District 02.
C. STAFF RPCOMMEND Tom,
Based upon the assumption that the HRA approved the prior agenda item,
recommendation by the staff to to adopt the HRA Resolution for Modification
02 for TIP Plan District 02 and request the City Council to sat a
public hoaring, for the purpose to modify the finance plan; thereby,
insuring the purpose of Modification /1 of the District 02 finance
HRA agenda - 8/5/87
plan, to eliminate blight, and enhance a developer.
Copy of the Resolution of Modification of the Tax Increment Finance
Plan for District 02 to be presented at the meeting.
HRA Agenda - 8/5/87
5. CONSIDERATION OF THE HRA TO ENDORSTION 8 HOUSING
ASSISTANCE.
A. REFERENCE AND BACKGROUND.
Previously, Mr. Ken Spaeth, an investor, had talked to Tom
Eidem and made several telephone calls to inquiry of Monticello's
interest to initiate a Section 8 Housing Assistance Program
for Wright County. Under this program, the tenant's share of
monthly rent will be up to 302 of monthly household income.
HUD pays the balance of the rent, the difference between the
tenant's share and the fair market rent of the unit as
determined by HUD. The tenant's income is recertified annually.
Shouldlncome change, the tenant's contribution will change
proportionately. Maximum annul incomes for Section 8 eligibility
within Wright County are as follows: $13,500 for one person,
$15,450 for family of two, $17,350 for family of three, and
$19,300 for family of four. To be eligible for Section 8
assistance, an applicant must be: within maximum income amounts;
and elderly, handicapped, or disabled; or a family of two or more;
or displaced by government action or a declared disaster.
The program would be initated through a resolution adopted by the
County Commissioners, followed by an application process, and
approval by HUD. Mr. Tom Koen of HUD suggested that the HRA
contract with an existing agency to administrate the program:
Metropolitan HRA, St. Paul or Region 6 Community Action Agency,
Willmar.
Current Monticello: data shows of the 518 multi -unite, 189
unite are considered low-income or 36.42. Low income housing
compared to total housing (1,444) is 132. 1 don't have data
on the vacany rates of rental property in Monticello. Some
questions to consider are: Does Monticello want to encourage
low-income housing, although, this is intended for the county?
What impact does this have on our community?
My assumption is Ken Spaeth maybe interested In purchasing the
Ridgemont Apartments (48 units). I believe those units will
no longer maintain their low-income status by transfer of ownership
since the Section 8 Housing Assistance Program for use in
newly constructed rental housing no longer exists. We would be
less 48 low-income unite; however, the new program encourages
low-income housing wherever guidelines are agreed upon between
qualified tenant and landlord. The voucher system is an incentive
for Mr. Spaeth in acquiring the said property.
No action is required of this item, only for discussional purposes.
B. SUPPORTING DATA.
Average family incomes and percent of families by income.
TABLE 7
AVERAGE FAMILY INCOME - 1980
Sources Minnesota Analysis and Planning System,
1980 Census, Fourth Count, St. Paul
-27-
Median
Mean
Monticello Tmmehip
$17,941
$22,457
City of Monticello
119,917
$25,121
Wright County
319,265
$24,184
State of Minnesota
$23,230
$28,732
Region
318,161
$23,746
Sources Minnesota Analysis and Planning System,
1980 Census, Fourth Count, St. Paul
-27-
TABLE 8
PERCENT OF FAMILIES BY INCOME
AMOUNT OF INCOME
REGION
TOWNSHIP
CITY
COUNTY
STATE
Under
2,499
.5
.l
1.6
2.4
.4
S 2,500
- 4,999
1.8
2.0
.8
1.2
.7
$ 5,000
- 7,499
5.3
1.2
7.2
4.3
1.4
$ 7,500
- 9,999
10.2
14.1
6.4
4.9
4.1
510,000
- 12,499
12.1
10.9
10.7
7.4
12.9
$12,500
- 14,999
6.9
4.8
7.5
9.6
6.5
$15,000
- 17,499
8.4
10.1
11.8
15.4
12.3
$17,500
- 19,999
4.8
6.8
4.1
5.6
5.2
820,000
- 22,499
8.1
6.9
7.4
6.9
6.2
522,500
- 24.,999
3.9
5.8
4.8
3.1
4.9
525,000
- 27,499
9.4
12.1
6.8
6.9
6.9
$27,500
- 29,999
5.1
1.9
4.1
4.5
5.5
$30,000
- 34,999
7.2
4.8
7.1
7.0
6.3
$35,000
- 39,999
8.3
11.1
9.7
8.4
10.5
$40,000
- 49,999
4.1
4.8
6.0
7.2
9.3
$50,000
- 74,999
2.8
1.7
2.2
1.9
2.8
875,000
and over
.6
.9
1.8
1.3
2.1
MEDIAN RANGE
$18,000
$18,000
$20,000
$19,000
$23,000
Sourco: Minnesota Analysis and Planning System, 1980 Census, Fourth
Count, Saint Paul, Minnesota
-28-
HRA Agenda - 8/5/87
6. COMPARISON OF LOCAL PROPERTY ESTIMATED MARKET VALUES AND
ASSESSED VALUE$.
A. REFERENCE AND BACKGROUND.
Enclosed is the comparison of twelve industrial and retail
property market values and assessed values over five years.
Also. enclosed is a five year comparison of the mill rate
and the formulas used to determine the assessed values.
7. CONSIDERATION FOR A HRA MEMBER.
A. REFERENCE AND BACKGROUND.
A letter was addressed to Dr. C. McCarty, Bob Weiman,
Peter Becker. Everette Ellison, Jim Ridgeway, and Con
Johnson in consideration of the vacated HRA seat created
by the resignation of Marlys Erickson. Nr. Ridgeway and
Mr. Johnson's names were suggested by City Attorney Pringle
as one alternative to the unsuccessful organization of
the Directors of Monticello Development. A report of the
letter replies will be presented at the HRA meeting.
b. -
I
Year Estimated Market-Value Assessed Value Taxes
Fulfillment Systems, Inc. - Lauring Hillside 155-029-002060
002070
002080
1987
$1,152,400.00
$486,532.00
$43,609.34
86
1,078,400.00
454,712.00
36,004.56
85
33,100.00
13,240.00
1,016.48
84
24,000.00
9,600.00
786.78
83
24,000.00
9,600.00
811.86
Bondus Corporation - Auditor's
Subdivision 155-011-000031
- Original Plat
1987
$ 522,300.00
$215,589.00
$19,323.88
86
264,700.00
104,821.00
8,299.84
85
261,900.00
103,617.00
8,424.58
84
261,900.00
108,117.00
8,860.84
83
261,905.00
111,119.00
9,396.90
Yrightco
- Original Plat 155-010--018060
Federal - Original Plat
155-010-031010
018080
$ 370,500.00
1987
$ 766,500.00
$320,595.00
$28,735.92
86
564,500.00
233,735.00
18,507.40
85
564,500.00
233,735.00
19,003.84
84
560,100.00
232,815.00
19,080.60
83
540,650.00
229,803.00
19,433.54
Larson Mfg. - Oakwood Industrial Park 155-018-001041
1987
f 184,100.00
$ 70,163.00
$ 6,288.92
86
139,700.00
51,071.00
4,043.86
85
139,100.00
51,071.00
4,152.34
84
139,700.00
55,571.00
4,554.38
83
139,670
58,558.00
4,952.02
Perkins
(Dalrey Monticello Assoc.)
- Original Plat
155-010-003010
1987
$ 331,300.00
$133,459.00
$11,962.34
86
289,700.00
115,571.00
9,151.04
85
289,700.00
115,571.00
9,396.50
84
289,700.00
120,071.00
9,840.54
83
289,687.00
123,065.00
10,407.12
Security
Federal - Original Plat
155-010-031010
1987
$ 370,500.00
$159,315.00
$14,279.90
86
70,400.00
30,272.00
2,396.98
85
130,700.00
52,280.00
4,250.64
84
1,434,049.00
-
-
83
1,434,049.00
-
-
e
Year Estimated Market Value Assessed Value T -ea
Coast to Coast - Original Plat 155-010-031031
1987
f 185,900.00
f
70,937.00
f 6,358.30
86
117,000.00
41,310.00
3,270.98
85
108.800.00
37,784.00
3,072.04
84
97,100.00
37,253.00
3,053.12
83
97,118.00
40,261.00
3,474.72
Johnson's
- Original Plat
155-010-052031
1987
f 149,700.00
f
55,371.00
f 4,963.08
86
143,500.00
48,133.00
3,811.22
85
143,500.00
48,133.00
3,913.46
84
131,900.00
48,689.00
3,990.36
83
131,408.00
51,520.00
4,356.84
Stella's
- Original Plat
155-010-035121
1987
f 65,900.00
i
19,337.00
f 1,733.24
86
37,800.00
10,584.00
838.06
85
37,800.00
10,584.00
860.54
84
32,200.00
10,948.00
897.26
83
32,170.00
12,868.00
1,088.20
Monticello Theater - Original Plat 155-010-053050
1987
f 202,800.00
f
75,429.00
f 6,760.94
86
180,100.00
63,673.00
5,041.70
85
180,100.00
63.673.00
5,176.94
84
180,100.00
68,1%3.00
5,587.20
83
179,610.00
71,033.00
6,006.98
Flicker's
- Original Plat
155-010-035040
035041
1987
f 235,200.00
f
92,136.00
f 8,258.44
86
194,400.00
74,592.00
5,906.28
85
194,400.00
74,592.00
6,064.70
84
197,200.00
80,296.00
6,580.76
83
191,203.00
83,297.00
7,044.12
Foster's
- Original Plat
155-010-036060
1987
f 144,500.00
f
51,533.00
f 4,619.06
86
95,000.00
28,892.00
2,287.70
85
95,000.00
28,892.00
2,349.06
84
81,200.00
28,220.00
2,312.80
83
81,120.00
31,192.00
2,637.78
MILL RATES
1987
1986
1985
1984
1983
County
21.332
20.308
19.719
23.580
23.953
City
15.715
15.689
18.874
17.734
20.978
School District
48.148
38.824
39.714
37.335
36.211
Hospital District
4.438
4.360
2.998
3.307
3.424
TOTAL
89.633
79.181
81.305
81.956
84.566
I—
t t
USE THESE NEW CODES WHEN WORKING ON FIELD BOOKS IN 1987`,_
FARM
RACF
OACF (Up to 320 Acres)
OBCF (321 Up to 640 Acres)
RESIDENTIAL
0-65,000 R9W H -CR
32,600 - 65,000 H2CR
Over 68,100 R3 -R
Up to 32,500 H1CR
65,100 - 68,000 H3CR
COMMONLY USED CLASSES
BACF-------- 5Z of 32,500 R—N --- 34Z
14Z of next 32,500 F—N--------- 102
18Z of excess over 65,000 S—N-------------- 20%
-A-g21Z
RACY - ---- 145 of 65,000
182 of Balance -r ---C 282 of let
60,000
432 Balance
OACF---------- 182 over 65,000
OBCF----------- 18% over 65,000
OCCF--------» 182 over 65,000
-A-F---------- 182
H -CR --»------ 18Z of 65,000
282 of Excess
-2-C -------- -- -432
Y -»I --------- 28Z of let 60,000
432 of Balance
-2-I »_» --»------- 432
---U --------------- -432
(Machinery 33 1/3)
H1CR ------
182
H2CR------»--
182
V-0 -»--------»--- 40%
H3 -R -----------
282
B -CR -»----»-
52 of
32,500
182 of
next 32,500 6
29Z of excess
D -CR ------»---
52 of
32,500
Rental Farm Houses - Use the following:
18% of
next 32,500
28Z of
excess
R -CF ---- (With Credit)
RA -F ---- (Excluding House/l Acre)
R --R -----»--»
282
R --F ---- (No Credit)
R4 -R -----------
342 ,
V --R
402'
9-23-86
NAWCO Minnesota, loc.
Proposed Tax Increment District 07
Building: 25,000 sq. ft. manufacturing @ $25.00 per sq. ft. $625,000.00
3,400 sq. ft. office 40.00 per sq, ft. 136.000.00
Total for Concrete Building ;761,000.00
Land: 10.48 acres @ $9,923.66 per acre
or 456,508.8 sq. ft. per .2278 per sq. ft. 104,000.00
Lot 11 and 12, Block 2, Oakwood Industrial Park
Total building and Land $865,000.00
$60,000.00
$805,000.00
x.28
x.43
$16,800.00
$346,150.00
New Assessed Value (NAV)
$362,950.00
Original Assessed Value (OAV)
18,240.00
Captured Assessed Value (CAV)
$344,710.00
1987 Mill Rate
.089633
Estimated Tax Increment
$ 30,897.39
Estimated Protect Cost:
Land
$104,000.00
Current Assessments
6,600.00
Future Assessments
11,600.00
Plan/Agreement
5,000.00
City Conting.
8,200.00
Discount
2,000.00
Fin/Bond Counsel
12,100.00
Cap. Interest
20,500.00
Total
$170,000.00
Bond Issuance
155,000.00
$ 15,000.00
Bond Issuance $155,000.00 at 8j% interest rate for 8 years
D/S $26.474.00. Interest $13,175.00 c=17.28