The URL can be used to link to this page

HRA Agenda 12-02-1992AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, December 2, 1992 - 7:00 p.m. City Hall MEMBERS: Chairperson Al Larson, Vice Chairperson Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF: Rick Wolfsteller, Jeff O'Niell, and 0 .Ilie Koropchak. GUEST: Pat Pelstring, BDS, Inc. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE NOVEMBER 4, 1992 HRA MINUTES. 3. CONSIDERATION TO REVIEW CUSTOM CANOPY'S CONCEPT PLANS FOR POTENTIAL TIP ASSISTANCE. 4. CONSIDERATION TO REVIEW BDS, INC. BILLINGS AND CONTRACT. 5. CONSIDERATION TO REVIEW TIF "SURPLUS FUNDS" AND DISCUSS POTENTIAL USE OF FUNDS. ' G. CONSIDERATION TO AUTHORIZE THE TRANSFER OF 20% OF THF. 1992 TIF a PROJECT INCOME INTO A HRA DEVELOPMENT FUND TO OFFSET DEVELOPMENT EXPENSES. 7. CONSIDERATION TO REVIEW THE LETTER OF INTENT BETWEEN THE NRA AND SHINGOBEE, INC. FOR POTENTIAL EXTENSION (CONSTRUCTION AND TIF PREPLAN), 8. CONSIDERATION TO ADOPT A RESOLUTION APPROVING A TAX INCREMENT AGREEMENT BETWEEN TILE CITY OF MONTICELLO AND THE HRA RELATING TO TIF DISTRICT NO. 1-12. 9. CONSIDERATION TO ADOPT A RESOLUTION APPROVING A TAX INCREMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO AND THE HRA RELATING TO TIF DISTRICT NO. 1-14. 10. CONSIDERATION TO REVIEW AND EXECUTE THE INDEMNITY AGREEMENT AND THE TAX -FORFEITED LANDS CONVEYANCE FORM FOR OUTLOT A, COUNTRY CLUB MANOR. 11. CONSIDERATION OF AN UPDATE AND REMINDER OF THE PLANNED ELK RIVER SENIOR HOUSING TOUR ON DECEMBER 9, 1992. 12. OTHER BUSINESS. 13. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, November d, 1992 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell Schrupp, and Everette Ellison. MEMBERS ABSENT: Tom St. Hilaire. STAFF PRESENT: 011ie Koropchak. STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill. GUEST PRESENT: Barb Schwientek, Monticello -Big Lake Community Hospital. William Jacobson, The Housing Alliance. William Kemp and Kurt Mayer, SEH 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:05 p.m. 2. CPNSIDERATION TO APPROVE THE AUGUST 5 AND SEPTEMBER 29. 1992 HRA MINUTES. The need for a correction to the August 5 HRA minutes was noted by Ben Smith, page 2, paragraph 2, correct prepares to perhaps. A motion was made by Lowell Schrupp to approve the amended August 5 and the September 29, 1992 HRA minutes. Seconded by Ben Smith and with no further corrections or additions, the HRA minutes were approved as amended and written, respectively. 3. CONSIDgl2ATIOji TO HEAR FINANCIAL OPTIO14S AND PROFESSIONAL ASSISTANCE AVAILABLE FOR SENIOR CARE HOUSING (MR. JACOBSON AND MR. KEMP). One of the HRA objectives is to keep abreast and to explore local senior housing needs and options therefore this meeting was dedicated to that purpose. Barb Schwientek provided HRA members with a guide to senior residential options as prepared by the Minnesota Association of Homes for the Aging. She noted medicaid reimbursements have changed to encourage homecare living with assistance, the intent io to reduce both elderly care costs and the need to construct new nursing homes. Barb reported the existing ten- year old market study is outdated, today's elderly have more affluent incomes, and it appears the Ridgemont Apartments are having difficulties finding qualified applicants. The need for a new market study appears to exist. HRA MINUTES NOVEMBER 4, 1992 Mr. Jacobson informed the HRA that The Housing Alliance, a professional corporation, was formed to assist communities or non-profit organizations in developing and planning senior housing. The project team concept used involves the project owner, project administrator, market researcher, financial advisor, architect: /planner, construction manager, and management consultant. Alliance projects constructed or completed exist in Hopkins and Owatonna. Owatonna's non - institutional, quad—design encompasses larger parlor/kitchen areas. To be an effective and sufficient operation the facility generally needs 30 to 40 units. Operating and management expenses run approximately $1,000 per month or $1,500 per month for a couple. This includes a full-time management, cook and cook's assistant, 24-hour nurses aid, and 1/2 time clerk. A111ance's fee as project facilator is 3.5% of the project costs. Mr. Mayer, Marketing Director, and Mr. Kemp, Architectural Marketing, for SEH informed the HRA of a recent senior market - rate project completed in Faribault where the HRA assisted with the site development of a blighted one -block area and sold functional bonds. The 54 -unit facility of two bedroom units has underground -heated parking. Others were constructed In Stillwater and White Bear Lake. Assisted -living facilities of 30-40 units were constructed in Clara City, Appleton, and Deer River. If rates are reduced than the services are cut and since the big team builder of a successful project is the services offered and managed, SEN doesn't encourage rate reduction. A campus design with wings for assisted -living and independant-living with kitchen or without kitchens are examples of the flexible market. SEH fees are based on a per unit not -to -exceed figure whish is not paid until the bonds are sold. The first step, the market study becomes the tool for defining your local housing niche and needs, the firm designated for the market research should be acceptable to lending institutions. Market otudies generally costs 95,000 to $6,000. Financing, concept design, services, ownership, management, and the performs are all keys to successful projects. Optional ownerships are an HRA, Hospital District, non-profit organizations or private which is highly unlikely today. Some various funding sourced are revenue or functional bonds, TIF, Minnesota Housing, HUD, Minn000ta Farmers, etc. The completed project should be self-supporting and a benefit to the community. Page 2 HRA MINUTES NOVEMBER 4, 1992 With the completion of the two independent presentations, Barb Schwientek recommended the HRA visit the Guardian Angels facilities in Elk River. Koropchak will arrange the visit through Carol Mills or Sherri Emerson at 441-1213. 4. CONSIDERATION TO REVIEW AND EXECUTE THE INDEMNITY AGREEMENT AND TYE TAX -FORFEITED LANDS CONVEYANCE FORM FOR OUTLOT A. COUNTRY CLUB MANOR. Tabled. S. CONS;P_ERATION TO REVIEW HRA BILL;NGS AND PROJECT WORK PERFORMANCE OF ATTORNEYS AND BDS. INC. Koropchak noted to RRA members charges from BDS, Inc. for Aroplax's Central Minnesota Initiative Fund Application which was denied, charges for attending the Aroplax'a Groundbreaking Reception, SBA charges if a 92,500 fee is charged by Mr. Bob Heck, and charges for the development of a business plan. Also, noted was the communication breakdown after loan ' application completion, approval and closings. It has been the recommendation of the EDA to have one attorney represent the HRA and the EDA for document and closing services inorder to prevent duplicate reviewing of documents and fees. The HRA was receptive to inviting the St. Cloud HRA Executive Director or the NAHRO Executive Director to a meeting in the future. The NRA recommended inviting Mr. Pat Pelstring to the next meeting to review the HRA's contract and fees. 6. OTHER BUSINESS, The HRA recommended Koropchak attend the NAHRO's Fall Conference in Bloomington next week. 7. ADJOURNMENT. The HRA meeting adjourned at 9:30 p.m. o.U. `<,I, 011ie Koropchak, HRA Executive Director Page 3 HRA AGENDA DECEMBER 2, 1992 Consideration to review Custom Canoov's concept plans for potential TIP assistance. Reference and Backaround. Mr. Jim Beyl who Is representing the owner, Steve Birkdland, Custom Canopy, met with city staff on November 19 to review preliminary building and site plans as it relates to Monticello's zoning and ordinances. At this time, no commitment has been made for a Monticello development. The TIP Letter of Intent and the GMEF Guidelines were presented to the company, and Mr. Beyl is in contact with Mr. George Phillips for potential subdivision and purchase of land in the Oakwood Industrial Park. Based on a completed 9,210 square foot project with an estimated market value of $220,000, Mr. Pelstring has provided the HRA with estimates for potential TIF assistance either through the pay-as-you-go or upfront finance method. With the assumption of zoning and ordinance compliance, the HRA should: 1. Review the project concept for compliance of TIF Guidelines. 2. Discuss the use of TIP for a small project as It relates to HRA revenues and expenditures. 3. If TIF use is approved, establish dollar amount of direct TIP assistance for Custom Canopy. 4. If TIP Letter of Intent is executed, authorize BDS, Inc. to establish TIP District No. 1-15. Mr. Pelotring will be present at the HRA to explain the enclosed information. B. Supporting Data, Copies of the project summary, TIP Guidelines, and projected project tax increment. CUSTOM CANOPY 12903 MAIN STREET, SUITE 203 P 0 BOX 275 ROGERS, MN 55374 (612) 428-8478 OWNER: STEVE BIRKELAND CONTACT: JIM BEYL EXISTING BUSINESS: EIGHT YEARS OLD BUILDING: OFFICE 1,300 SO FT (65 X 20) MFG 7,910 SO FT (70 X 113) METAL EXTERIOR 25 FT SIDE WALLS 4 (12 X 14 FT) OVERHEAD DOORS LAND: THREE ACRES (OAKWOOD INDUSTRIAL PARK) BUSINESS: PRODUCTION AND ASSEMBLY OF CANOPIES FOR GAS STATIONS JOBS: EMPLOY 11 FT PEOPLE (PROJECTED GROWTH 2-3 JOBS) WAGES: STARTING $8.00 PH (RANGE $9.76 - $18.00) OFF JAN -MAR CURRENTLY: LEASE FACILITY IN ROGERS, OWN PROPERTY IN ALBERTVILLE TIME FRAME: WINTER/SPRING CONSTRUCTION COMMERICAL LENDER: AVAILABLE ALSO INTERESTED IN GMEF ESTIMATED TAXES: BUILDING: OFFICE 1,300 SO FT ® $30.00 - $ 39,000 MFG 7,910 SO FT ® $17.00 - $134,470 LAND: 2 ACRES OR 87,120 SO FT 0 $.40 $ 34,848 1 ACRE OR 43,560 SO FT ® $.25 ,@ 10.890 $219,738 ESTIMATED MARKET VALUE $220,000 $100,000 $120,000 .0300 .0470 $ 3,000 $ 5,640 NEW CAPACITY VALUE $ 8,680 '93 TAX RATE (ESTIMATED) 1.0800 ESTIMATED ANNUAL TAXES $ 9,331 LESS ORIGINAL CAPACITY VALUE LESS ADJUSTMENT FACTOR LESS HACA PENALTY LESS TIF EXPENDITURES PAT, PLEASE ESTIMATE PAY-AS-YOU-GO OR DIRECT TIF ASSISTANCE AVAILABLE FOR THIS SMALL POTENTIAL PROJECT. HRA TO REVIEW ON DECEMBER 2. HOUSING AND REDEVELOPMENT AUTHORITY {. City of Monticello TAX INCREMENT FINANCING POLICY Program Purposes The Monticello Housing and Redevelopment Authority will utilize Tax Increment Financing to support the community's long-term economic and housing goals. Policy Considerations: The HRA will analyze and evaluate Tax Increment Financing proposals based upon the following policy considerations. Each project shall be measured against these considerations and the project's value shall be determined, based upon meeting these considerations. C 1 The project shall be consistent with the City's Comprehensive Plan. .'2) The project shall demonstrate long-term economic and/or housing benefits to the community. (3) The project shall create and/or retain employment for Monticello residents. 4- 4 The project shall increase moderate priced housing options for area residents. tN The project shall facilitate the redevelopment or elimination of "substandard• or "blighted" areas as determined by the HRA. (6% The project shall facilitate the "clean-up" of environmentally unsound property. (7) The project shall provide additional public funding for public improvements including utilities and/or park development which would not otherwise be available. (8) The project shall be deemed to promote additional desired "spin-off" development. POLICY GUIDELINES (1) Tax Increment Financing will be considered for use in economic development, redevelopment and specialized housing projects. The standard level of assistance for r� projects shall be as follower — — NOv-30—'32 MOpa 1=:35 I L-: BLS INC. TEL.L64 P02 Se vtw% he, MMOP Y YUM .. TO: Monticello Housing and Redevelopment Authority 011ie Koropehak FROM: Pat Pelstring, Ptesideat, Business Development Services, Inc. DATE: November 30, 1992 suwECT: CUSTOM CANOPY I have conducted an analysis of the Custom Canopy project based upon the following assumptions: Esdtnated Market Value $220,000.00 Estimated Current Tax Capacity 5500.00 Economic Adjustment Factor 0 Percent On this basis, we have eadmated the total annual increment to be $8,661.60 per year. Based upon the current school's sales ratio, the estimated annual tax increment penalty would be $1,970. On this basis, we could estimate an annual net increment of 56,690 for 6 years, beginning In 1993 through 2002. The net present value of this income sting, as a 7 percent disoount factor, is 535,237. We have also estimated that the net increment (after TIF penalty adjustment) would support a $43,000 bond issue, providing approximately $30,000 of net proceeds. I look forward to meeting with you on Wednesday evening to review this information in greater detail. PWP/mam Enclosures TAX INCFEWWT FINAMCIN3 ESTIMATE OF LOCAL OMOMEW AIDS PENALTY CITY: 1W ICIELLO SALES RATIO: 1.001 SCHOOL 01ST: 082 EST TAX RATE: 24.60% TYPE OF DIST: EQ11 DEV/QST CM40PY TAX CAP RATE: 1.080 ! C'APTU7ED QJALIF YDG SOa4. IOJISTED TAX TAXES TIF TAX FKt%-IN TAX SALES OALIFYINS PFM. TY INCREIFNI PAYABLE CAPACITY .FEMUTA(3E CAPACITY RATIO TAX CAPACITY TAX RATE WSW fly 1990 100.00% 0.00 1.001 0.00 24. W% 0.4r, 1991 100.001 0.00 1.001 0.00 24 , 60% 0.00) 1992 100.001 0.00 1.001 0.00 24.601 001 1993 0.00. 100.001 0.00 1.001 0.00 24.60% ().(-G) 1994 0.00 100.001 0.00 1.001 0.00 24.60% 0.0) 1995 8,020.010 100.00% 0,020.00 1.001 A. 011.99 24.61K 1,970.!7; 1998 8,020.00 100.00: 8.020.00 $.ODI 0,011.99 24.60% 1,970.:)!+ n 1997 8,020.00 100.0019 8.020.00 1.001 8.011.99 24.60% 1,970.95 1998 8.020.00 100.00% 0.020.00 1.001 9.011.99 24.60% 1999 8,020.010 100.00% 8.020.00 1.001 8.011.99 24.60% 20(10 8,020.00 10().Oft 9.020.00 1.001 9.011.99 24.618 2001 8,020.00 100.00% 8.020.00 1.001 0.011.99 .^4.60% 1,970.9'+ i 2002 8,020.00 100.00% 8.020.00 1.001 8,011.99 2.4.60% 1.970.W.., 2003 100.001 0.00 1.001 0.00 24.60% O.(►) 2004 100.001 0.00 1.001 0.00 24.601 O.W 2005 100.001 0.00 1.001 0.00 24.601 ?.m 2008 100.001 0.00 1.001 0.00 24.601 n.m 2007 100.0019 0.00 1.001 0.00 24.60% O.M 20011 100.001 0.00 1.001 0.00 24.6(11 n.(n 2009 100.001 0.00 1.001 0.00 24.601 n.(1(p 111 2010 100.00% 0.00 1.001 0.00 24.601 0.40n 2011 100.001 0.00 1.001 0.00 24.601 0.00 2012 100.001 0.00 1.001 0.00 :==-oc-=-=er_r=ccc=e=acc❑=-.c_ra-:--- 24.6M 'INET" DOCRETENT AFTER LOBS OF LOCAL GDVERNWNT AIDS --------------------------------------------------------- TAX ESTIMATED TAX -------- 'MET - CAPACITY TOTAL INCREMENT MET- INCREMENT RATE INCREMENT PENALTY INCREMENT PERCENTAGE ---------------- 1.080 ------------------------------------------------- 0.00 0.00 0.00 0.00% 1.080 0.00 0.00 0.00 0.00% 1.080 0.00 O.OD 0.00 0.00% 1.080 0.00 0.00 0.00 0."A 1.080 0.00 0.00 0.00 0.00% 1.080 8,661.60 1,970.95 6,690.65 77.24% 1.080 8,661.60 1,970.95 6,690.65 77.24% 1.090 8,661.60 1,970.95 6,690.65 77.24% 1.080 8,661.60 1,970.95 6,690.65 77.24% 1.080 6.661.60 1,970.95 6,690.65 77.24% 1.060 8,661.60 1,970.95 6,690.65 77.24% 1.080 0,661.60 1,910.95 6,690.65 77.24% 1.080 8,661.80 1,970.95 6.690.65 77.24% 1.080 0.00 0.00 0.00 ERR 1.080 0.00 0.00 0.00 Fm 1.060 0.00 0.00 0.00 ERR 1.080 0.00 0.00 0.00 ERR 1.080 0.00 0.00 0.00 EAR 1.080 0.00 0.00 0.00 ERR 1.080 0.00 0.00 0.00 ERR 1.080 0.00 0.00 0.00 EAR 1.080 WOO 0.00 0.00 FAR 1.080 0.00 0.00 0.00 EAR ---------------------------------------------------------- $15,767.69 $53,525.21 __ 1-101, 1.:- IC:5U: I.:.. TEL a"<_ Fi¢ TIF "PAY AS YOU 00" ET PRESENT VALUE Ttr, ERES7 RINE: 7.00% CITY: MONTICELLO PROJECT: CUSTOM CANOPY CLKLA ,VE YEAR PYG INWWNT NET PRESENT VALI-C 1992 0.00 0.00 1992 C.00 0.00 1993 C.00 0.00 1993 0.00 0.00 1994 0.00 0.00 1994 0.00 0.00 1995 3,345.33 21815 .01 1998 3,345.33 5,53B . 10 1996 3,345.33 8,107 .49 1998 3,345.33 10,707 .97 1997 3,345.33 13,102 .84 1997 3,345.33 15,534.10 1998 3,346.33 17,825 .47 1998 3,345.33 20,039.35 1999 3,345,33 22,178 .36 1999 3,345.33 24,245 .05 2000 3,343.33 26,241 .84 2000 3,345.33 28,171 .11 2001 3,348.33 30,035 .14 2001 3,345.33 31,835.13 2002 3,345.33 33,576 .22 2002 3,345.33 35,257 .46 2003 0,00 36,267 .40 2003 0.00 35,257.48 2004 0.00 36,257 .46 2004 0.00 35,257 .46 2005 0.00 35,257 .45 2005 0.00 35,257 .45 2006 0.00 35,257 .48 200E 0.00 35,257 .48 2007 0.00 35,257 .46 2007 0.00 35,257 .45 200E 0.00 35,257.40 2008 0.00 35,257 .45 2009 0.00 35,257.46 2009 0.00 35,257 .40' 2010 0.00 35,257.48 2010 0.00 35,267.46 2011 0.00 38,257 .40 2011 0.00 35,257.46 2012 0.00 35,257.46 2012 0.00 35,257.48 2013 0.00 35,257 .40 2013 0.00 35,257 .46 aause aaaraca==ce=e=a=ro---- =-------===-3=an■ TOTAL 48,834.55 35,257.48 . i a r• 1 ■I rr■ oil r ■ ml firm III TAX INCWW#f' ROM ISSUE OOMMTY: M3WICELLO TWE OF OISTRICT: ECOMMC CEWL(FILM DALE OF ISSUE: AM, 1993 INTEREST RATE: 6.50% FRCAECT REF: CUSTM CAMPY v LAND AasIISITION 30,000.00 PUMAC IN410VEM NTS (CFF SITE) STREET SEWER NATER SANITARY SEWER SOIL CCRIIFCTION3 ON-SITE UTTLIIIES PARK ING/LAPCJS WUNG %MT01AL 30,[00.00 CONTINCIENCY ` AOIINISMATIOI Ff"FESSIOML SUNICES 7,500.00 SIBIDIAL V 37,500.00 CAPITALIZED 1NTMFST 7,500,00 DISOUHT ,r 0.00 TOTAL BTYIl1 ISSUE ---$45,000.00 t HRA AGENDA DECEMBER 2, 1992 4. Consideration to review BDS, Inc. billings and contract. A. Reference and Backqround. At the last meeting, HRA members recommended Mr. Pelstring be present at the HRA meeting to review the annual billings and the contract between BDS, Inc. and the HRA. Billing explanations needed: 1. Are charges by BDS, Inc. (approximate 22.37 hours $1,677.75) for the Aroplax CMIF application due, if loan approval was denied? 2. Are charges by BDS, Inc. (approximate 2 hours $150.00) for the Aroplax Groundbreaking Reception due? 3. If Bob Heck of Hain City Metro charges $2,500 to the developer for SBA application, where does the approximate 17.25 hours $1,293.75 charges by BDS, Inc. for Aroplax SBA fit -in? 4. How does the preparation of an Aroplax Business Plan fit -in and who authorized the expenditure? Potential communication breakdowns: 1. In the Aroplax project, six BDS, Inc. personnel were involved (Pat Pelstring, Deb Gustafson, Shell Nelson, Lenny Kirecht, Eric Olson, and EJ2). 2. Follow through from loan application to loan approval or denial with developer, lending Institution, and attorneys. (CMIF generally at preliminary project funding meeting). 3. Fund closing coordinator. 4. Use of one attorney for HRA and EUA. B. $uaportina Data. Copy of the BDS. Inc. Contract and summaries of the project cooto. C eudtmss Q „ „ , undo lea AGREEMENT BY AND BETWEEN BUSINESS DEVELOPMENT SERVICES INC. and the CITY OF HATICELI.O HOUSING AND REDEVELOPMENT AUTHORITY This Agreement made and entered into on the 4th day of October, 1989, by and between the Housing and Redevelopment Authority of the City of Monticello, a Minnesota Municipality, (hereinafter referred to as "HRA"), and Business Development Services, Inc., a Minnesota corporation (hereinafter referred to as "BIDS"). I WHEREAS, the City of Monticello believes that communities are dynamic in the sense that they are constantly changing; and WHEREAS, the City of Monticello believes that the economy of its community is shaped by its active economic development program; and WHEREAS, the City has initiated its economic development program through Its Housing and Redevelopment Authority and utilizes Tax Increment Financing as a key component of its economic development program; and WHEREAS, BIDS seeks to assist the continued growth of the City of Monticello to provide economic development services A I-- and technical, professional assistance for its Housing and Redevelopment Authority and its Tax Increment Financing program. NOW, THEREFORE, BASED UPON THE MUTUAL PROMISES AND CONSIDERATIONS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS: 1. SCOPE OF SERVICES A. BDS will provide ongoing consultation services as requested, to the Housing and Redevelopment Authority and the City of Monticello to assist these agencies in the appropriate design of the economic development program. B. BDS will provide marketing assistance on behalf of the City to identified prospects on a case-by-case basis. 1 Those services would not be reimbursed. At City's option BDS will be reimbursed on an hourly or fixed fee basis. C. BDS will provide preliminary financial review, analysis and recommendations for the structuring of specific TIF development proposals. OBDS will assist City staff and/or Its designate in negotiating specific provisions of the development and assessment agreements associated with the City's TIF projects. QBDS will assist in maintaining communications between City staff members and project developers utilising the City's TIF assistance. -2- F. BDS will assist in the collection of the required technical and financial data, draft modified TIF plans and coordinate the dissemination of the plans and related materials to other public agencies and will review and confirm data with the City's bond counsel and fiscal consultant. C. BDS will assist in the preparation of materials for public hearings and the presentation of the appropriate information with the City and the Housing and Redevelopment Authority. OBDS will monitor and assist in the collection of developer repayments, letters of credit and/or securities as required. I. Other duties related to the City's economic development program and TIP programs as directed by the Ci ty and/or Housing and Redevelopment Authority. 11. PAYMENT FOR SERVICES A. The City agrees to payment for services as described In Section 1, as followst 1. Marketing Assistance. BDS wil l provide market Ing assistance to the City of Wnticello's prospects at no charge through the preparation of proposal information. Once a prospect has reached the stage '3. where a letter of intent is to be mailed or a prospect has requested a meeting, the City at its discretion agrees to hire BDS at its standard fee of $73 per hour, or on a negotiated fee schedule. 2. Establishment of Tax Increment Financing Projects. At the City's determination, BDS will be utilized to assist in the design and preparation of TIF documents for the community's major projects. Fees for these services are as follows: a. For completion of data preparation, processing and certification of newly established or amended Tax Increment Financing District - r $3,830.00. b. For the completion of related development and assessment agreements - $870.00. c. The City and BDS recognize that the development of tax increment financing projects will be conducted on a contingency basis. City payment for services shall include all variable staff time and expenses associated with each project. 3. Consultation for TIF projects. The City will, at its discretion, seek to complete the data and structuring for the community's smaller TIP projects. On this basis, BDS will be retained on an hourly fee of $77.00 to support the -0. process and to complete the appropriate ` documentation. B. BBS also agrees to provide an overall accounting of hours expended and fees that have been generated through this contract. It shall be BDS' and the IIRA's intent to provide an overall hourly average rate, con- sistent with BDS staff fee schedule. Ill. ADDITIONAL PROVISIONS A. The City and BDS reserve the right to terminate this Agreement upon 60 days written notice. B. Each party to this Agreement binds himself and his f partners, successors, executors, administrators, and assigns to the other party of this Agreement and to the partners, successors, executors, administrators, and assigns of such other party, in respect to all covenants of this agreement. Except as above, neither party shall assign, sublet. or transfer his interest in this agreement without the written consent of the other. Nothing herein shall be construed as creating any personal liability on the part of any officer or agent of any public body which may be party hereto, nor shall it be construed as giving any rights or benefits hereunder to anyone other than the parties to this Agreemen t. •3- IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. CITY OF MDNTICELLO HOUSING AND REDEVELOPMENT AUTHORITY lay -all) BUS SS DEVELOPMENT ERVICES INC. BY i ITS Patrick W. Pelstring, President U ATT(C W ITS C J J Mary A. Czech, Vice President -6- PROJECT COSTS CITY OF MONTICELLO FOR AROPLAX CORPORATION October 16, 1992 Business Development Services, Inc. 1991 TIF Plan $ 4,700.00 1991 Packaging $ 2,708.78 1992 YTD Packaging S 9,783.75 Legal Fees 1991 Holmes S Graven Paul Weingarden $ 808.82 1992 Holmes 8 Graven $ 2,292.25 Paul Weingarden TOTAL $20,290.60 Approximate Central Minnesota Initiative Fund 22.37 hours 81,677.78 Economic Recovery Grant 88.13 hours 84,359.75 SBA 17.28 hours 81,293.78 Business Plan 19 hours $1,045.00 PROJECT COSTS CITY OF MONTICELLO FOR SUBURBAN MACHINE & MANUFACTURING, INC. October 14, 1992 Business Development Services, Inc. 1992 TIF Plan S 3,850.00 1992 Packaging (CMIF) $ 3,206.25 Legal Fees 1992 Holmes & Graven $ 1,503.15 Paul Weingarden $ 3,240.00 TOTAL $11,799.40 1 4— Business Developnwtt Services, Inc. November 27, 1992 Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 STATEMENT Consulting Services --October 15, 1992 through November 14, 1992 Marketing --Not Billed 10/19/92 LPK-•Suburban Reception 2.50 10/26/92 LPK--Follow-up with 011ie re: projects and banquet ' .25 10/27/92 LPK-•IDC Banquet 4.50 11/4/92 LPK--Follow-up with 011ie re: Monticello projects; TIF for Boyle Property; Schedule Lunch 25 Total Marketing—Not Billed Hours: 7.50 NET CHARGEABLE HOURS: Net Chargeable Hours 0 575/Hour TOTAL AMOUNT DUE CURREOVER 3.4 1 S -0- TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS I HRA AGENDA DECEMBER 2, 1992 Consideration to review TIF "surplus funds" and discuss potential use of funds. Reference and Backaround. Last fall, Mr. Pelstring presented the HRA with a Tax Increment Summary Report based on the maximum life duration of TIF Districts No. 1-1 through 1-10. "Surplus Funds" were projected. As the City plana for future necessary public improvements, the question arises "How to pay for the public improvements?" At the request of the Assistant Administrator, I prepare a projected total revenues summary (principal and interest payback) through 1999 from economic development projects. Enclosed you will find the projected revenue summary sheet outlining TIF "surplus", GMEF loan payback, UDAG payback, and State Economic Recovery Grant payback. Revenues from the GMEF loans are designated to return to the fund pool until such time the Council may authorize otherwise, UDAG funds were designated for economic development of which the Council must authorize transfer to GMEF, and the State Grant was designated for the GMEF. The real question becomes "Does and how does the HRA want to spend the "surplus funds?" For the benefit of the HRA and the City, the IIRA needs to consider their options. A little background, the HRA's objectives are to provide housing for the low to moderate income, eliminate "blight", and create jobs and increase the tax base. TIF Districts within the City of Monticello were established for one of those objectives. The first nine -districts which are not restricted by the pooling provision have "surplus funds" which may be expended within our project area through the modification of the TIF District budget(o). Public improvements such as otreet construction/upgrading, water/sewer construction, ponding construction, freeway Interchange and bridge construction are all legal uses of "surplus funds". Additionally, the "surplus funds" can be used to encourage relocation of a business ouch as bulk gas - dealers along the railroad tracks to I-1 or I-2 zoning, to encourage an environmental cleanup such as the Gille property, to purchase land for future redevelopmont, or to provide additional funding to a qualifed buolneoo. Your decioion should support the HRA'a objectives and encourage economic (industrial) development. More information will be provided at the HRA meeting. HRA AGENDA DECEMBER 2. 1992 Sunsortina Data. Copy of projected total revenues summary and copy of the projected GMEF payback schedule. 11-24-92 PREPARED BY OLLIE KOROPCHAK ECONOMIC.REV c TIF GMEF STATE "SURPLUS" LOANS UDAG GRANT BEGINNING BALANCE $127,975 $ 32,623 $ 7,971 $ 2,483 1993 $ 18,217 $ 32,548 $ 27,971 $ 29,801 1994 $ 1,739 $ 32,548 $ 27,971 $ 29,801 1995 $ 12,728 $ 75,892 $ 27,971 $ 29,801 1996 $ 12,048 $ 27,529 $ 27,971 $ 29,801 1997 $ 17,447 $136,607 $ 27,971 $ 12,417 1998 $ 8,078 $ 14,900 $ 27,971 1999 $ 18,609 $ 13,338 $ 27,971 TOTAL $216,841 $365,989 $203,770 $134,106 11-24-92 PREPARED BY OLLIE KOROPCHAK ECONOMIC.REV c GMEF LOANS GMEF LOAN NO. 001 - TAPPERS $88,000 8% AMORTIZED 20 YEARS BALLOONED IN 7 YEARS. ($736.07) 8-13-90 $ 2,944.28 91 8,832.84 92 8,832.84 93 8,832.84 94 8,832.84 95 8,832.84 96 8,832.84 97 5,888.56 BALLOON PAYMENT 70,989.14 PAYBACK $132,819.02 GMEF LOAN NO. 002 - MULLER THEATRE $50,000 8% AMORTIZED 20 YEARS BALLOONED IN 5 YEARS. ($418.22) 12-1-90 $ 418.22 91 5,018.64 92 5,018.64 93 5,018.64 94 5,018.64 y' 95 4,600.42 BALLOON PAYMENT 43,762.79 PAYBACK $ 68,855.99 GMEF LOAN NO. 003 - NULL AND VOID GMEF LOAN NO. 004 - BAROERS $50,000 4.5% AMORTIZED 20 YEARS BALLOONED IN 5 YEARS. ($316.32) 12-1-92 $ 316.32 93 3,795.34 94 3.795.84 95 3,795.84 96 3,795.84 97 3,479.82 BALLOON PAYMENT 41,350.00 PAYBACK 8 60.329.20 c GMEF LOAN NO. 005 - SCHOENS $85,000 6% AMORTIZED 7 YEARS ($1,241.73) 12-1-92 $ 1,241.73 93 14,900.76 94 14,900.76 95 14,900.76 96 14,900.76 97 14,900.76 98 14,900.76 99 13,338.57 PAYBACK $103,984.86 11-24-92 PREPARED BY OLLIE KOROPCHAK GMEFLOAN.ACC HRA AGENDA DECEMBER 2, 1992 6. Consideration to authorize the transfer of 10% of the 1992 TIF vroiect income into a HRA Det�elonment Fund to offset development expenses. A. Reference and Background. Last year, Mr . Pelstring recommended the HRA establish a 10% administrative expenditure policy for legal fees, housing or marketing studies, development costs, or other operating expenses not covered in a TIF budget. The NRA denied the establishment of such a policy and recommended an annual authorization, therefore, the City Administrator and myself request the HRA consider authorization to transfer 10% of the 1992 total TIF project income to cover city's development costs relating to the Aroplax and Suburban Machine and Manufacturing projects. The estimated 1992 total TIF project Income is approximately 134,000. B. Alternative Actions. 1. A motion of authorization to transfer 10% of the 1992 total TIF project income into a HRA Development Fund. I r 2. A motion to deny the authorization to transfer 10% of the 1992 total TIF project incom©. C. Recommendation. After review of the BDS, Inc, billings, with recommendation to consolidate EDA and 11RA project attorneys, with projected project payback revenues, and due to the exceso development coats for Aroplax and SMM, staff recommends the HRA to authorize the transfer. D. Supporting Data. Project development coots. PROJECT COSTS CITY OF MONTICELLO FOR SUBURBAN MACHINE & MANUFACTURING, INC. December 2, 1992 Business Development Services, Inc. 1992 TIF Plan $ 3,850.00 1992 Packaging (CMIF) $ 3,206.25 Subtotal $ 7,056.25 Legal Fees 1992 Holmes & Graven (TIF) $ 1,971.90 1992 Paul Weingarden (TIF) $ 412.50 (EDA) $ 2,349.25 (City) 712.50 Subtotal $ 5,446.15 TOTAL C $12,502.40 lPROJECT COSTS CITY OF MONTICELLO FOR AROPLAX CORPORATION December 2, 1992 Busing ss Development Services, Inc. 1991 TIF Plan $ 4,700.00 1991 Packaging S 2,705.78 1992 Packaging $ 9,783.75 Subtotal $17, 189.53 Legal Fees 1991 Holmes & Graven (TIF) 1991 Paul Weinga rden (EDA) S 808.82 1992 Holmes & Graven (TIF) $ 3,104.75 2.992 Paul Weingarden (EDA) S 1, 226.70 (TIF) $ 450.00 (Grant) ,g 1,031.25 Subtotal S 6,621.52 TOTAL APPROXIMATE BREAK DOWN Central Minnesota Initiative Fund 22.37 hours 91,677.75 Sconomic Recovery Grant 58.13 hours $4,359.75 SBA 17.25 hours 91,293.75 Business Plan 19 hours $1,015.00 SMMAROP.COS $23,811.05 b HRA AGENDA DECEMBER 2, 1992 7. Consideration to review the Letter of Intent between the HRA and Shingobee. Inc. for Dotential extension (Construction and TIF Preplan). A. Reference and Background. It has been the recommendation of the Monticello Industrial Development Committee (IDC) that the HRA consider extending the Letter of Intent between the HRA and Shingobee, Inc. Sometime ago, I spoke with Mr. Dale Lungwitz to affirm the Oakwood Partnership's willingess to hold the property, Lot 8, Block 2, Oakwood Industrial Park. Also, I spoke with Mr. Tom Golewski's of Shingobee's interest to renew the letter of Intent of which he was interested. Mr. Pelstring can give the HRA an update to the needs of changes. If the Letter of Intent is extended than the IDC should consider advertising the preplan in their Minnesota Real Estate Journal and Business Media advertisements. B. Alternative Actions. 1. A motion authorizing the extension of the Letter of Intent between the HRA and Shingobee, Inc. with a designated expiration date. 2. A motion to deny authorization to extend the Letter of Intent between the HRA and Shingobee, Inc. C. Recommendation. With the willingness of the property owners and the contractor, and with the recommendation of the IDC, staff recommends the HRA extend the Letter of Intent for one year. D. Supporting Data. Copy of the Lotter of Intent, project summary, and plans. PAUL A. WEINOARDEN• C NARLE S T. ALAN DAVID J. USSIRT TNMAS B. OLSON De NNIS 6.DAL6N MARGUERRE A. RATSLLe DSL A. 93LOCNBR O.. --LB M. 7975 (2 ) OLSON, USSET, AGAN & WEINGARDEN .TYO.N■.f .T LA.v 5vITE Boo 66W PRANCH AVENUE SOUTH BI1...L0 O.R.C. MINNEAPOLIS. MN 50473 TaL■. 161 M!62.3001 Ms. Gae B. Veit President Shingobee Builders, Inc. 279 North Medina Street P.O. Box 6 Loretto, MN 55357 T.u..DN■ 16 12) 925-3eu PA. (6121925.56» June 10, 1991 Re: Letter of Intent Dear Ms. Veit: ROC..O.D OW PIC. nLanaN■ 16 I M 47.5010 La9Y .f{IaiANI. PEGG, J.'GAN SMIRLER J. AL31N OEBRA BAN PCE PATSY A, FORELAND ILIM PORTIN TRUDY SUNG BONNIE TI ONWS 096 1EGAN As you know, the undersigned represents the City of Monticello and the Monticello HRA. Pursuant to the selection of your company by the industrial development committee of the Monticello HRA in response to its request for proposals to prepare TIF/SPEC building pre -plans for the City of Monticello, this letter will evidence our mutual intention that the HRA and Shingobee Builders, Inc. will enter into a development agreement substantially on the terms outlined in this letter. If the following terms and conditions reflect your basic understanding of the proposed transaction, please sign the form of approval below on both copies of this letter and return one copy to me. Upon your indication of the approval of the basic terms and conditions of the agreement, it is the intention that the parties move with all dispatch to secure the necessary approvals and to prepare a formal agreement which will be binding on both parties. The proposed agreement would reflect the basic terms and conditions: 1. The City will designate a portion of the City of Monticello as a TIF district. This area will be consistent with that portion of the City whiob the City believes ideally suited for industrial development. • RE- P.O.— 1..0-161 C.ar..I.O F .y MIMN "" 01.7. a" A.■bt...w. Ms. Gas B. Veit -2- June 10, 1991 The selected developer shall obtain a land purchase option or commitment letter from the land owner of the designated industrial site location. Said option or commitment shall coincide with the duration of this agreement. The City will guarantee that there shall be no building permits issued to any entity other than Shingobee Builders, Inc. or its assigns in the designated TIF district for a period of one year, with options to extend for an additional one year period, by mutual agreement of both parties. 3. Shingobse Builders will prepare plans and specs for a 15,000, 20,000 and 25,000 square foot industrial use building which specifications shall include parking, landscaping, drainage and elevation, to conform with City ordinance and zoning requirements. All planning shall be reviewed by the City staff and City engineers and approved by the City Building Inspector prior to TIF plan approval. 4. Shingobee shall not be obligated to construct any industrial building within the TIF district until such time as it has secured an acceptable lease from a proposed tenant. Both Shingobee and HRA will attempt to locate possible tenants for an industrial use building to be developed by Shingobee provided, however, that both the City and Shingobse have the right and discretion to accept or refuse a proposed tenant, it being the intent of this paragraph that both parties must agree to accept a proposed tenant prior to execution of a binding lease agreement. 5. Once an acceptable tenant is found either by Shingobee or HRA, developer shall construct an industrial use building acceptable for the purposes of tenant substantial in accordance with the plans and specifications previously supplied by Shingobee to City. The construction of the proposed building by Shingobee will be contingent upon: Ms. Gae B. Veit -]- June 10, 199 1 (a) determination of the tax increment capture by HRA, which amount shall be the net increment after any local government aids are lost; (b) execution by tenant of a ten year lease at a below market rate, together with a TIF supplement so as to produce the following lease rates for the first five years: i for a 25,000 square foot building - $4.25 per square foot; 1i for a 20,000 square foot building - $4.50 per square foot; and iii for a 15,000 square foot building - $4.75 per square foot. For purposes of illustration, if the proposed building is a 25,000 square foot building and the net tax increment amounts to a $.75 per square foot economic aid, then the amount per square foot charged by the developer shall be $3.50 per square foot, which, together with the TIF assistance supplied to the tenant, will result in a net square rate of $4.25. After the first five years of the lease, lease rates would increase $.25 per square foot for the last five years. 6. The TIF increment shall be received on a pay as you go basis. 8o long as the tenant remains within the facility and is paying rent to developer, the City shall reimburse the developer on a monthly basis. In the event the landlord or tenant terminate the lease or otherwise vacate/abandon the premises, the TIF increment payable to the developer shall be suspended during any such period until ouch time as the tenant commences paying rant or a new tenant is found to occupy the premises and pay rent in at least an amount equal to the prior tenants lease obligation. I Ms. Gae B. Veit -4- June 10, 1991 The plans and specs provided to the tenant shall include a $25,000.00 allowance for leasehold improvement for a 25,000 square foot building; $20,000.00 allowance for leasehold improvements for a 20,000 square foot building; and $15,000.00 allowance for leasehold improvements for a 15,000 square foot building. If the tenant requires more than a 25,000 square foot building or less than a 15,000 square foot building, the leasehold improvement allowance shall be adjusted upward or downward dependent upon the size of the building desired. It is anticipated that the leasehold allowances shall be adjusted upward or downward consistent with the rates provided for in this paragraph. If the tenant requires upgrades in addition to the permitted allowances, the lease rent shall be adjusted upward or the tenant shall be required to pay the sums in advance. The developer and the HRA shall pre -negotiate a development contract which shall include an assessment agreement and any addendums necessary to carry forward the understandings and agreements of this project. The development contract shall also be executed by the lessee acknowledging the City's assistance in verifying the project's representations. The developer shall submit financial statements and data, as requested by the HRA. The parties acknowledge and understand that this is not a joint venture agreement, partnership or other similar undertaking. Developer shall provide its own employees, workman's compensation and unemployment insurance and shall hold the HRA and City of Monticello harmless from any claims against HRA, City of Monticello or developer arising from developers negligence or intentional wrongful conduct. Developer acknowledges that it is an independent contractor and not an employee of. HRA or City. No. Gag B. Veit -5- June 10, 1991 10. The obligations of the parties under this letter of intent shall be contingent upon the successful negotiation, execution and delivery of a definitive development agreement, proposed lease agreement, assessment agreement and necessary addendum. The agreement will contain such further representations, warranties and conditions and terms as are customary in such agreements. li. The obligations of the parties under this letter of intent shall be further contingent upon delivery by developer to City of a development commitment fee of $5,000.00 for the purpose of reimbursing City for actual costa incurred in preparing the TIP District Plan and the City's legal and administrative costs in preparing the proposed Development Agreement. Upon execution of the development agreement and finalization of the TIP District Plan, any remaining unspent amounts shall be immediately refunded to Developer. If the following terms and conditions reflect your basic understanding of the proposed transaction, please sign the form of approval below on both copies of this letter and return one copy to me. Veru ta _ C i Pa �l A. we ngar3e PAW: 11d cc: 011ie Koropchak Acknowledge, approved and agreed to this day of 1991 N Gas B. Veit President of Bhingobee Builders, Inc. r ft SM OF ■APLa PLAW 11372 8h MAPLE MAIN. MN !f5= "441419 %.e Sw+ft�r wawuoo Five thousand and no/100 Orft,taf 6/12/91 $5,000.00 City of Monticello 090143720 4:0919084&21: 00 822 W SHMOOSEE BUILDERS, INC. 11372 Project # 9111 Developer Candtma Fee - Monticello SpecMF Building NEW LEASEABLE INDUSTRIAL SPACE TIF RENTAL REDUCTION AVAILABLE WITHIN 90 TO 120 CONSTRUCTION DAYS CITY OF MONTICELLO DEVELOPER: SHINGOBEE BUILDERS, INC., 279 NORTHMEDINA STREET, P 0 BOX 6, LORETTO, MN 55357, (612) 479-1300. WHERE: THIRTY MILES NORTHWEST OF THE METRO SUBURBS ALONG I-94. CITY OF MONTICELLO, MINNESOTA. IAT 8, BLOCK 2, OAKWOOD INDUSTRIAL PARR. EASY ACCESS TO INTERSTATE 94. LOT SIZE: 5.2 ACRES OR 226,512 SQUARE FEET (ROOM FOR BUILDING EXPANSION). LOT ZONING: INDUSTRIAL. BUILDING MATERIAL: PRECAST PANELS (ENERGY EFFICIENT). BUILDING SIZE: 25,000 SQUARE FEET (OFF ICE/MANUFAC rJRING) 20,000 SQUARE FEET (OFFICE /MANUFACTURING) 15,000 SQUARE FEET (OFFICE/MANUFACTURING) FLEXIBILITY CONSIDERED. LEASE TERM: TEN YEARS. LEASE COST: FIRST FIVE YEARS. 25,000 SQ FT - $4.25 PER SO FT MINUS TIP =.75 - $3.50 TNL• 20,000 SQ FT - $4.50 PER SQ FT MINUS TIP 3.75 - $3.75 TNL 15,000 SQ FT - $4.75 PER SQ FT MINUS TIF $.75 - $4.00 TNL LAST FIVE YEARS INCREASE OF LEASE BY X.25 PER SQ FT TAX INCREMENT FINANCE ASSISTANCE FOR LIFE Of THE ECONOMIC DISTRICT, TEN YEARS. BUILDING AND SITE PRE -PLANS AVAILABLE FOR VIEWING. REQUEST: FINANCIAL STATEMENTS BUSINESS PLANS COMPLY WITH CITY ORDINANCE, ZONING, AND COMPREHENSIVE PLAN. CONTACT PERSONS: OLLIE KOROPCHAK, MONTICELLO ECONOMIC DEVELOPMENT DIRECTOR, ( 612) 295-2711 GAE VEIT, (612) 479-1300 TOM GOWLESKI, (612) 479-1300 • TRIPLE MT LEASE: INSURANCE, TAXES/ASSESSMENTS, AND UTILITIES. . . .. ......... ... ��: "Act, .............. RL Mr - IL All, ........ . . .......... *arm" Mv EV Ia ftvom m==.o 6.F ..... _._._...~~..__. -. ..... �I�III�IIIIIIII��I�� r• _ .,.�____ �l��idl l irl l i l l l 11 1 1 ll° �� •� .. �_ i *ASA sum bbm _ __ —fir �� • l� -�- �.-� , 1'.r ,...r— .�Md �.� �` � .r I I I f-1-►-I'••�z, i � �w Irl r ,d . • r . • lill=ii �-L�_.1.. P, F 1111 Ux EM3 mb asp "MEW Ini JIL HRA AGENDA L DECEMBER 2, 1992 8. Consideration to adopt a resolution approving a Tax Increment Agreement between the Citv of Monticello and the HRA relating to TIF District No. 1-12. A. Reference and Background. As in the past, the HRA is requested to adopt an agreement with the City agreeing to pledge all increments for retirement of the bond issue. This bond Issuance of $120,000 is for TIF District No. 1-12 (Aroplax Corporation), the different being that the City will not sell the bond to the public but the City will purchase the bond as an investment. I have enclosed the Council agenda of November 23, 1992 for additional information of the City's reasons. B. Alternative Actions. 1. A motion to adopt the resolution approving the Tax Increment Agreement between the City of Monticello and ' the HRA relating to TIF District No. 1-12. 2. A motion to deny adoption of the resolution. C. Recommendation. Staff recommendation Is for the HRA to adopt the resolution pledging TIP District No. 1-12 increments for retirement of the City bonds. The Aroplax building is 30% complete, letter of credit received in the amount of $21,500, and the TIP funds have been disbursed. D. Supportina Data. Copy of the resolution for adoption, the agreement, the Council agenda. C RESOLUTION NO. _ RESOLUTION APPROVING TAX INCRE MT AGREEMM BY AND BETWEEN THE CITY OF MONTICE -1 , MINNESOTA AND THE HOUSING AND REDEVELDPB04T AUTHORITY IN AND FOR, THE CITY OF MONTICE11 RELATING TO TAR DICBMIENT DISTRICT NO. 1-12 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Monticello (the "Authority") as follows: 1. Recitals. a) By Resolution No. 91-1 dated May 1, 1991, the Authority approved the adoption of the Tex Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-12 (the "TIF District") within Redevelopment Project No. 1 (the "Project"). b) Pursuant to the TIF Plan, the Authority has requested the City of Monticello (the "City") to issue certain tax increment bonds (the "Bonds") in order to finance the public development costs of the Project. c) The Authority hes reviewed the form of a Tax Increment Agreement between the City and the Authority (the "TIF Agreement") in connection with the Bonds. 2. TIF Agreement Approved. Pursuant to Minn. Stat. Section 499.178, Subd. 2, the Board approves the TIF Agreement and authorizes and directs the proper Authority officials to execute the TIF Agreement on behalf of the Authority. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority In and for the City of Monticello this _ day of , 1992. ATTEST: =8.: Milo -7• TAX INCREMENT AGREEMENT BY AND BETWEEN THE CITY OF MONTICELM, MINNESOTA AND THE HOUSING AND REDEVELOPNMff AUTHORITY IN AND FOR THE CITY OF MONTICELLO THIS AGREEMENT, made and entered into this day of , 1992, by and between the City of Monticello, Minnesota, a municipal corporation under the laws of the State of Minnesota (the "City"), and the Housing and Redevelopment Authority in and for the City of Monticello, a public body corporate and politic formed and existing under the laws of the State of Minnesota (the "Authority") . WITNESSETH: WHEREAS, the City has created Redevelopment Project No. 1 (the "Project") and a Project Plan therefor, pursuant to Minnesota Statutes, Sections 489.001 to 489.047 (the "Housing and Redevelopment ActVF; and - WHEREAS, within the Project, the City has created Tax Increment Financing District No. 1-12 (the "TIF District") and has adopted a Tax Increment Financing Plan ("TIF Plan") therefor pursuant to Minnesota Statutes, Sections 489.174 to 489.179 (the "TIF Act"); and WHEREAS, in order to finance the public costs of the Project in accordance with the Project Plan and the TIF Plan, the Authority has requested the City to issue Its $120,000 General. Obligation Taxable Tax Increment Bonds, Series 1992 (the "Honda");and WHEREAS, Section 499.178 of the TIF Act authorises the City and the Authority to enter into this tax increment agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, it is agreed by and between the parties as follows: 1. The Authority pledges that any and all tax increment payments made to the Authority by Wright County from the TIF District shall be pledged and assigned to the City in the amount necessary to pay the principal of, Interest on and redemption premium, if any, on any and all of the Bonds and any general obligation bonds hereafter issued by the City to finance coats of the Project and to be secured by tax increment& from the TIF District, or any bonds issued to refund the Bonds. 2. The Authority may retain any tax incromont from the TIF District to the extent that such increment exceeds the amount pledged to the City under Section 1 heroin or under any other tax increment agreement between the Authority and the City, and may use such retained Increment in accordance with the TIF Act. J. The City agrees that It will Issue the Bonds to finance the public development coats of the Project. ao.u1i WIN -36 C J 4 . The parties hereto mutually agree that it is the express intent and purpose of this Agreement to utilize the provisions of the Housing and Redevelopment Act and the TIF Act to finance the public development costs in the Project. S. The tax increment pledged hereunder shall be used by the City solely for the purpose of payment of principal and interest on all series of bonds secured thereby. S. The parties hereto mutually agree that, pursuant to Section 488.177, subd. S of the TIF Act, all tax increment received with respect to each TIF District within the Project shall be segregated by the Authority In a special account on its official books until the public development costs of the Project, including interest on all money borrowed therefor, has been fully paid, and the City has been fully reimbursed from the tax increments for all principal and interest on the Bonds (including refunding bonds) that the City has Issued in aid of the Project, including any principal and interest the City has paid from tesea levied on other property within the City's corporate limits. IN WITNESSETH WHERBOF, the parties hereto have caused this agreement to be executed the day and year first above written. oouui XRw-3a CITY OF MONTICELT By Mayor By City Administrator L C OONIts MIU-30 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELL0 By Chair By Executive Director Council Agenda • 11/23/92 7. Consideration of a resolution authorizing issuance of G.O. taxable tax increment bonds--Aroolax. (R.W.) A. REFERENCE AND BACKGROUND: As part of the tax increment financing plan for the Aroplax Corporation, TIF 1-12, a TIF grant in the amount of $70,000 for land write-down will occur when their new building is 30% complete. In addition, a $15,000 loan will be disbursed at 30ck completion of the building, making the total assistance directly to Aroplax at $85,000. Additional administrative and professional fees incurred to date for the tax increment project and related financing packages total $20,500. Based on the projected tax increment revenue for this project, a $120,000 bond issue would be the maximum financing amount available. A $120,000 bond issue would include $9,750 for capitalized interest to cover interest expense through February 1, 1994, the first year tax increment revenue would be received. As you may recall, the original financing plan for Aroplax was adopted in June of 1991 in anticipation of Aroplax building and locating in Monticello by the end of last year. The delay in Aroplax starting their facility this fall will cause the tax increment district to receive a half a year's revenue less than originally anticipated. Even with the half a year loss in revenue, the tau increments should still support the $120,000 amount. Originally, the financing for Aroplax called for the issuance of a general obligation taxable bond issue. In discussing the bond sale with Jerry Shannon of Springsted, Inc., I questioned the wisdom of issuing bonds in the $100,000 range because of the high issuance cost for bond consultant, Springsted fiscal fee, bond rating fees, etc. Typically, when the City issues bonds, we can anticipate our up -front costs to be approximately $12,000 to $15,000, which to me seems to be a high cost for only borrowing a small amount of money. Jerry Shannon agreed that bond issues under $300,000 to $400,000 are costly. At the same time, with declining interest rates, I have found it very difficult to obtain more than 3% to 4% interest on our investments on a short-term basis. For the City to earn interest income in the 6% to 7% range, we would have to invest our funds for 5.8 years in today's market. In light of this, it makes more sense financially to have the City loan tho funds to the HRA for this tax increment project than to sell the bonds on the open market. This would be similar to what is being proposed for the Suburban Manufacturing tax increment project in that the City intends to loan the HRA funds for the land write-down at an interest rate of 6 1/2%. Council Agenda - 11/23/92 In order to keep the paper trail similar to a normal bond issue, I asked our bond counsel, Holmes and Graven, to prepare documentation similar to a regular bond issue with the understanding that the City will actually be the purchaser of these bonds. The steps being proposed will create a $120,000 G.O. taxable tax increment bond for the Aroplax project, but it will not be sold to the general public but will be purchased by the City as an investment. This accomplishes the same goal as the general fund loaning the HRA the money, but it also establishes for our records that a bond debt exists for this project. The HRA will be receiving a favorable interest rate of 61/2% without incurring the cost of a normal issue, and the City also gains in that we are receiving 6 1/2% as an investment, which would be hard for me to obtain in today's market. By structuring this as an actual bond issue, the City could actually sell the securities on the open market at some future date if it desperately needed the funds, and it also allows the City to levy taxes for any increment shortfall should that occur. As with any tax increment bond issue, the HRA will enter into a tax increment agreement with the City agreeing to pledge all increments for retirement of the bond issue. B. ALTERNATIVE ACTIONS: Council is asked to adopt the resolution authorizing the issuance of $120,000 in G.O. taxable tax increment bonds, Series 1992, for the Aroplax TIF district. Under this alternative, a bond issue would be established, and the City's investment fund would purchase the $120,000 in bonds rather than selling the bonds to the public. 8 It is my recommendation that the resolution authorizing the issuance of the bonds be adopted. Due to the high issuance cost of a normal bond issue 1$12,000 to $15,0001, I did not think it was feasible to structure this bond issue for sale to the public since the City has the Bunds available and could use a good investment of this nature. Technically speaking, the City would be actually lending $120,000 to the HRA at a 6 l/296 interest rate, which is better than I could get trying to invest the money. Structuring the bonds in this manner would allow us to sell them on the open market if need be in the future and will save the City $10,000 to $12,000 in issuance cost. Copy of resolution authorizing bond issue; Copy of tax increment agreement between HRA and City; Amortization schedule for bond issue prepared by Springsted, Inc. PF, SPRINGSTED ,, PUSUC PiUMCE AMSCRS Plante arks 85 E= srm" t Placa Sum 100 SM P3W. MN 55101.2143 (6 ill 223.3000 Fox (6121 223.3002 222 5� SStreat m=escmL arta 55402-336a (612) 33ML 77 Fax (6123 3)}2363 16655 Wen Bbmaomtd Road Suss 290 aroageld. W1 53005-5935 (4111 7822222 Fa (414) 782.2904 6x00 w W eaard Ow4nd Petr KS 66211.1533 (9131 34$4062 Fax (913) 345.1770 1800 K Shtt NW Sam 631 W Da 20006.2200 120I1 48333 - October 9, 1992 Fu 1202) 223.1362 Mr. Rick Wolfsteller, Administrator City Hall 250 East Broadway Monticello, MN 55362.9245 Re: Aroplax Tax Increment Project Dear Mr. Wcltmeller. The City is planning on issuing Its General Obligation Taxable Tax Increment Bonds. Series 1992 for purposes of financing eligible project coats for TIF District 1.12. Aroplax. it is anticipated that due to the small size of this issue, the City will purchase it from its own Investment account We have discussed the possibility of Issuing revenue bonds but while feasible. would provide no security to the City in the event the project did not cash flow. In addition. should the City decide to sell the securities on the open market at some future data. It would be easier to market 0,C. bands rather than revenue bonds. The revenue bonds, If structured property, would (should) require a reserve account equal to one year of debt service and s debt service coverage of 1.2 times. With general Obligation bonds, the City could levy taxes for any Increment shortfall. The project costs to be funded with this Issue are set forth in the financing plan already adopted. We have recalculated the projections of increment income based on an adjustment factor of 1.02 rather than 1.04 contained in the data furnished to us, We have assumed the base value and future values are correct. Based an this projection of Increment, we have prepared an amortization schedule for $120.000 of bonds. This schedule assumes full value on the tax rolls as of January 2. 1993 ter first collet len of increment in 1994. The financing plan was adopted in June 1991 and therefore It will terminate in June 2001. The Clty should be able to collect ane -half the Increment In 2001. This financing district is also subject to LGA/NACA lass based on current provisions in statute. We have calculated this loss to be approximately 37% of total increment collared or about $7,700 par year. The City may wish to provide for a pass-through of this 109:3 of you may levy taxos to recover the loss. CIn an annualized 0513 this is a relatively small figure but it amounts I ITV OF MONTICELLO, MINNESOTA 0 TAXABLE TAX INCREMENT BONDS, SERIES 1992 AROPLAX PROJECT) ated: 11- 1-1992 ature: 2- 1 first Interest: 8. 1-1993 ear of Year of Levy Mat. Principal Rates (1) (2) (3) (4) 1992 1994 0 0.00% 1893 1995 10,000 8.50% 1994 1995 15,000 8.50% 1995 1997 15,000 8.50% 1998 1998 15,000 8.50% 1997 1999 15,000 0.50% 1998 2000 20,000 0.50% 1999 2001 20,000 0.50% 2000 2002 10,000 0.50% OTAL9: 120,000 48,150 188,150 9,750 and Years: 710.00 Annual Interest: 48,150 vg. Maturity: 5.92 Plus Discount: 0 v9. Annual Rate: 8.500% Net Interest: 40,150 .I.C. Rate: 0.492% N.I.C. Rate: 0.500% Prepared October 8, 1992 By SPRINGSTED Incorporated Net Projected Levy Increment Cumulative Required Income Surplus (a) (9) (10) 0 Total Capital - 17,800 Principal ized Interest a Interest Interest (5) (e) (7) 9,750 9,750 9,750 7,800 17,800 0 7,150 22,150 0 8,175 21,175 0 5,200 20,200 0 4,225 19,225 0 3,250 23,250 0 1,950 21,950 0 850 10,850 0 48,150 188,150 9,750 and Years: 710.00 Annual Interest: 48,150 vg. Maturity: 5.92 Plus Discount: 0 v9. Annual Rate: 8.500% Net Interest: 40,150 .I.C. Rate: 0.492% N.I.C. Rate: 0.500% Prepared October 8, 1992 By SPRINGSTED Incorporated Net Projected Levy Increment Cumulative Required Income Surplus (a) (9) (10) 0 0 0 17,800 21,170 3,370 22,150 21,130 2,358 21,175 21,101 2,282 20,200 21,085 3,147 19,225 21,029 4,951 23,250 20,992 2,893 21,950 20,954 1,897 10,850 10,457 1,504 158,400 157,904 nterest rates are estimates; changes may cause significant alterations of this schedule. W 1- f HRA AGENDA l DECEMBER 2, 1992 9. Consideration to adopt a resolution allprovina a Tax Increment Agreement between the Citv of Monticello and the NRA relating to TIP District No. 1-14. A. Reference and Backaround. This is the same request as in the previous agenda item except the agreement relates to TIP District No. 1-14, Suburban Machine & Manufacturing, Inc. The bond issuance is for $78,000 and will be purchased by the City as as investment. The Council will be requested to adopt a resolution authorizing issuance of the G.O. Taxable Tax Increment Bonds at their December 14 meeting. B. Alternative Action. 1. A motion to adopt the resolution approving the Tax Increment Agreement between the City of Monticello and the NRA relating to TIP District No. 1-14. 2. A motion to deny adoption of the resolution. C. Recommmendation. Staff recommends the adoption of the resolution inorder for the City to proceed before the January HRA meeting. The TIB funds have not been disbursed to SMM as no evidence of 30% building completion as been received. D. Su000rtina Data. Copy of the resolution for adoption and the agreement. 14 HRA RESOLUTION 1992 - RESOLUTION APPROVING TAR INCREMENT AGREEMENT BY AND BETWEEN THE CITY OF MONTICELLO, MINNESOTA AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO RELATING TO TAR INCREMENT DISTRICT NO. 1-14 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Monticello (the "Authority") as follows: Recitals. a) By Resolution No. 92.2 dated July 6, 1992, the Authority approved the adoption of the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-14 (the "TIF District") within Redevelopment Project No. 1 (the "Project"). Pursuant to the TIF Plan, the Authority has requested the City of Monticello (the "City") to issue certain tax increment bonds (the "Bonds") in order to finance the public development costs of the Project. The Authority has reviewed the form of a Tax Increment Agreement between the City and the Authority (the'TIF Agreement") in connection with the Bonds. TIF t%qMment Aporoved. Pursuant to Minnesota Statutes, Section 469.178, Subd. 2, the Board approves the TIF Agreement and authorizes and directs the proper Authority officials to execute the TIF Agreement on behalf of the Authority. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Monticello this _ day of 1992. ATTEST: TAX INCRESIENT AGRffiti$IT BY AND BETWEEN THE CITY OF MONTICELLO, MI141NESOTA AND THE HOUSING AND REDEVELOPMENT AUTHORITY EN AND FOR THE CITY OF MONTICELLO THIS AGREEMENT, made and entered into this day of , 1992, by and between the City of Monticello, Miames^ta, a municipal corporation under the laws of the State of Minnesota (the "City"), and the Housing and Redevelopment Authority in and for the City of Monticello, a public body corporate and politic formed and existing under the laws of the State of Minnesota (the "Authority") . WITNESSETH: WHEREAS, the City has created Redevelopment Project No. 1 (the "Project") and a Project Plan therefor, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Housing and Redevelopment Act"); and WHEREAS, within the Project, the City has created Tax Increment Financing District No. 1-1'4 (the "TIF District") and has adopted a Tax Increment Financing Plan OTIF Plan") therefor pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act"); and WHEREAS, in order to finance the public coats of the Project In accordance with the Proiect Plan and the TIF Plan, the Authority has requested the City to Issue its $ 75. 000 General Obligation Taxable Tax Increment Bonds,Series 1992 0 ( the "Bonds"); and WHEREAS, Section 469.178 of the TIF Act authorizes the City and the Authority to enter into this tax increment agreement. NOW, THEREFORE. in consideration of the mutual wvenaata and awroements hereinafter contained, it is agreed by and between the parties as follows : 1. The Authority pledges that any and all tax Increment payments made to the Authority by Wright County from the TIF District shall be pledged and assigned to the City in the amount necessary to pay the principal of, interest on and redemption premium, if any, on any and all of the Bonds and any general obligation bonds hereafter issued by the City to finance coats of the Project and to be secured by tax increments from the TIF District, or any bonds Issued to refund the Bonds. 2. The Authority may retain any tax increment from the TIP District to the extent that such increment exceeds the amount pledged to the City under Section 1 herein or undor any other tax increment agreement between the Authority and the City, and may use such retained increment in accordance with the TIF Act. 3. The City agrees that it will issue the Bonds to finance the public development costa of the Project. wulsi wa-3a A 4. The parties hereto mutually agree that it is the express intent and purpose of this Agreement to utilize the provisions of the Housing and Redevelopment Act and the TIF Act to finance the public development costs in the Project. L 14 8. The tax increment pledged hereunder shall be used by the City solely for the purpose of payment of principal and interest on all series of bonds secured thereby. 8. The parties hereto mutually agree that, pursuant to Section 489.177, subd. S of the TIF Act, all tax increment received with respect to each TIF District within the Project shall be segregated by the Authority in a special account on its official books until the public development costs of the Project, including interest on all money borrowed therefor, has been fully paid, and the City has been fully reimbursed from the tax increments for all principal and interest on the Bonds (including refunding bonds) that the City has issued in aid of the Project, including any principal and interest the City has paid from taxes levied on other property within the City's corporate limits. IN WITNESSETH WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. CITY OF MONTICELL0 By Mayor By City Administrator HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELL0 By Chair By Executive Director CITY OF MONTICELLO, MINNESOTA G 0 TAXABLE TAX INCREMENT BONDS, SERIES 1992 (SUBURBAN KACBINE 6 NFG) Rated : 11. 1-1992 Nature: 2. 1 First Interest: 8. 1.1993 Total Capital. Net Projected Year of Year of Principal S:ed Levy Increment Cusulative Levy Met. Principal Rates Interest 6 Interest Interest Required Income Surplus ( 11 (2) (3) (4) (5) (6) (7) (6) (9) (10) 1992 1994 0 0.00% 6,094 6,094 6,095 0 0 1 1993 1995 5,000 6.50% 4,075 8,875 0 0,675 12,561 2,687 1994 1698 10,000 e. 50% 4,550 14,550 0 14,550 12,561 698 1995 1997 10,000 6.50% 3,900 13,900 0 13,900 12,561 (641) 1990 1996 10,000 5.504 3,250 13,250 0 13,250 12,561 (1,330) 1997 1680 10,000 6.501 2,600 12,600 0 12,600 12,561 (1,369) 1998 2000 10,000 6.50% 1,950 11,950 0 11,950 12,561 (758) 1999 2001 10,000 6.501 1.300 11,300 0 11,300 12,561 503 2000 2002 10,000 6.501 650 10,650 0 10,650 12,561 2,414 TOTALS: 75,000 29,160 104.169 6,095 08,078 100,488 Bond 'Years: 448.75 Annual Interest: 29,169 Avg. Maturity: 5.98 Plus Discount: 0 Avg. Annual Rate: 6.500% Net Interest: 29,169 T.I.e . Rete: 6.492% N.I.C. Rats: 6.500% INDEMNITY AGREEMENT BETWEEN THE CITY OF MONTICELLO AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO FOR RAW LANDS DESCRIBED AS OUTLOT A, COUNTRY CLUB MANOR WHEREAS, both the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota and the County of Wright (the "County"), Minnesota agreed to the terms of the Memorandum of Understanding between the Housing and Redevelopment Authority and the County of Wright relating to the described raw lands; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello held a public hearing for the acquisition of the described raw lands and affirmed that the described raw lands Ile within Redevelopment Project Area No. 1 of the Modified Central Monticello Redevelopment Plan; and WHEREAS, both the City of Monticello (the "City"), Minnesota and the Housing and Redevelopment Authority in and for the City of Monticello shall agree to the terms of this Indemnity Agreement between the City of Monticello and the Housing and Redevelopment Authority relating to the described raw lands; NOW, THEREFORE, the City of Monticello and the Housing and Redevelopment Authority in and for the City of Monticello agree as followo: 1. That the HRA Is released of any obligation for repayment of the special assessments or associated costa with the acquioltion of the described raw lands. 2. That the I1RA is released of any obligation of expenses or maintanence associated with the described raw lands. That the HRA is released of any right of revenues associated with the described raw lands. 0. That the parties of thio Indemnity Agreement may make such modifications and amendments as will properly carry out the intent of the Agreement. Such modifications and amendments shall be in writing. �- INDEMNITY AGREEMENT PAGE 2 Dated: December , 1992. CITY OF MONTICELLO By Ken Maus, Mayor By Rick Wolfsteller, Administrator Dated: December , 1992. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO By By Al Larson, Chairperson 011ie Koropchak, Executive Director w r...aa tow. ttno APPLICATION BY GOVERNMENTAL SIIBDtMON FOR CONVEYANCE OF TAX -FORFEITED LANDS I- , UkWAN StWAw. Saedon 7H2O1. G bd- f. In tM Maau of dw Appeotlon of Monticello HRA e Gamrauad &edM*n. for a .. Coa+wpwa oI0wWn lwda Ly,,,t,pw Monticello Housing & Redevelopment Authority ohm w wd atkm: �..ao�ke taincorporated government entity established under authorrity o!-Mi�tnnesoocawres. .L Tho u', the Wonticello HRA is authorized by state Statutes to acouire prop�rtYY for Euture dispoeition and redevelopment purygeee and has held a public fiearing on the accuieltion of parcel described belov. 1 Tt &4mbdmaedtedwOwwtwef Wright any ped dtrnbd a fatwww (d Pg5 •tfniyc idepountry u anor. C tv o3 Monticello L yaywpl, l currently vacant land toned R-3 )multiple family reeidential) ediecer.4 to reniagntiesubd.ivisione end bordering en z-94_ S. Tha raw0o«r dark. a a- ' add Iwd br dw &A, ' pwpom end rawmrt (a) Promote and oncourage.develonment of vacant land toc reelderrtial mureoeea. 0 ou ate ,I BpeC a aeseaament debt. aahwaawa epptlwir prow tNt"rip kadt b'edaYaaae alt far Uw w road lttrtN^ . _ . _ __»_ . _... 14ONTICELLO HRA Its Ttt U ,d i..+ Ia Executive Director STATS OF WwESOTA 1 COYNITOP Wright I w Al Larson and 011ia Koropchak edl brtq fka My am%deomw«d en. am* fat MweW. 00 dwf mrapadwtp dw "airman wd txecutivo Dirsdtor .100 Monticello HRA do Mnr ft" wad Ute k - , spo wlew ow tow dr awraea died; ed dM the saran mead OWWR In k.. RICKWA.WOLFSTELLER Subemedaad.artaMlawr.drl 1pTAR'I MIRgM14 GCT COUNTY Y aM Caata.w Lwow be u,tpf (, w CaRaa(«leR IVIPW gW .rw`aM''ww.`�ir'r rrM•ft" wd I. d.041, *Am stow" daft ftft Yw r«wrr r «w. naara. w tw mar r maw tw.. 12. OTHER BUSINESS. At the City's Annual Meeting in January, the Mayor will appoint five commissioners to the HRA for 1993. Each commissioner is appointed for a five-year term with Everette Ellison's term expiring in December, 1992. Consideration must be taken by Everette Ellison to serve on the HRA for an additional five-year term. Al Larson December 1993 Lowell Schrupp December 1994 Ben Smith December 1995 Tom St. Hilaire December 1996 December 1997 e69Aa7 ECONOMIC DEVELOPMENT 9316 city in this nate a public body, corporate and politic, to be known as the housing and redevelopment authority in and for that city. No such authority shall transact any buti. nese or exercise any powers until the governing body of the city shall, by resolution, find that in that city (1) substandard, slum, or blighted areas exist which cannot be redo, veloped without government assistance, or (2) there is a shortage of decent, safe, and sanitary dwelling accommodations available to persons of low income and their farm. 1 lies at rentais they can afford, and shall declare that there is need for a housing and rede. velopment authority to function in that city. In determining whether dwelling =ommodations arc unsafe or unsanitary, or whether substandard, slum, or blighted areas exist, the governing body may consider the degree of deterioration, obsolescenm or overcrowding, the percentage of land coverage, the light, air. space, and access avoid. able to inhabitants of the dwelling accommodations. the size and arrangement of rooms, the sanitary facilities, the extent to which conditions exist in the buildings that { endanger life or property by fire or other causes, and the original land planning, lot lay. out, and conditions of title in the area. Subd. 2. Pablic bearing The governing body of a city shall consider such a resolu. 1 tion only after a public hearing is held on it after publication of notice in a newspaper of general circulation in the city at least once not less than ten days nor more than 70 days prior to the date of the hearing. Opportunity to be heard shall be granted to all yl residents of the city and to all other interested persons. The resolution shall be pub- lished in the fart. manner in which ordinances are published in the municipality. Subd. 7. Conchtslveuess of resolution. When the resolution becomes finally eft. live, it shall be sufficient and conclusive for all purposes if it declares that there is need for an authority and finds in substantially the terms provided in subdivision I that the conditions therein described exist. Subd. 4. Copy filed with coma stioner of trsds and economic developro m, Wbm the resolution becomes finally effective, the clerk of the city shall file a cendied copy f of it with the commissioner of trade and economic development. In ony suit. aria► or proceeding involving the validity or enforcement of or relating to any contract d r an authority, the authority shall be conclusively droned to have become esnMisild ! and authorized to trantan business and exercise its powers upon that filing. Prodd t the resolution and of that filing may be made in any such suit, action, or proceaddt by a cenificate of the commissioner of trade and economic development. ;I Subd. S. Comeakdonem An authsrity shall consist of five cormami io-M to shall be residents of the arca of operation of the authority. who shall be appointed dr the resolution becomes finally effective. Subd. 6. Appointment approval; term; vacancy. The commissioners OA fig appointed by the mayor, with the approval of the governing body. Thi appointed shall be appointed for terms of one, two, three, four, and five years l lively. Thereafter all commissbeers shall be appointed for 6v ' e term (W fi ca vancy in an unexpired term shall be filled for the remainder of the term artt� i I the original appointment was made. Any member of the governing body of a city er be appointed and may serve as a commissionof the authority for the cup. The of any city which appoints membersof the city council as commissioners nst►e amr t tes of office of a commissioner to coincide with the commissioner s term d as a council member. Subd. 7. Certifies is of appolannenn Ming. Commissioners shall hold alts their successors have been appointed and Qualified. A certificate ofappoitttmrM commissioner shall be filed with the clerk and a certified copy sftaU be the commissioner of trade and economic development. A certificate w 6kd conclusive evidence of appointment. i Hhmoryr 1986 a NI; 1087 a 291 s J; 1987 a J12 are 1 s 16 rubel = ECONOM W DEvpAPMFM 4NA02 NEIGHBORHOOD 469204 PgmenC mfeRmmey, T6a � nON PROGRAMS d—do m dm mmry. 469.206 Cm oma and d ybH m d r--�p6X6ppd 469.207 Ar gym std � HOUSING AND REDEVEIAPMENT AUTHORITIES 1 I PURPOSES. ne purposes of sections 469.001 to 469.047 are: v 11) to Pro 'de a suffncteni supply of adequate, safe, and sanitary dwellings in order 'pacer as; the health, safety, morals, and welfare of the citizens of this state; C) to clear and redevelop blighted are p) to perform those duties socording to comprehensive plans; p;. (q to remedy the shortage of housing far low and moderate income resident. and rN&velop blighted areas in situations in which private enterprise would not act dam government participation or subsidies: and a ISI in cities of the first date, to provide housing for persons of all incomes. Public participation in activities intended to men the purposes ofsections 469.001 10469.047 and the exercise of powm confined by sections 469.001 to 469.047 are pub. Bt men and purposes for which private property may be acquired and public money On History: 19187 c 291 t I d8d02 DEFINRIONS. Subdivision 1. Generally. In sections 469.001 to 469.047, the terms defined in this anion have the meanings given to them herein, unless the context indicates a different —aaiag Subd. 2. Authority. 'Authority" mean a housing and redevelopment authority anted or authorized to be created by sections 469.001 to 469.047. Subd, D. City. 'City" means a home rule charter or statutory city. Subd. 4. State public body. 'State public body" means any city, county, commis. aoo, district, authority, or other political subdivision or instrumentality of this state. Subd. S. Governing body. "Governing body' means the council, board of trustees, or other body charged with governing any state public body. Subd. 6. Maya. "Mayor' mans the mayor of a city. Subd. 7, CIerL "Cleric" means the clerk of a city or the officer of any other state public body charged with the duties curtonurily imposed on the clerk of a city. Subd. 8. Asea daptrrftI 'Arca of opastion" means, in the case of an authority anted in and for a city, county, or group of counties, the ares within the territorial boundaries of that city, county, or group of counties. Subd. 9. Federal goruameat 'Federal govemment" includes the United States of America, the Department of Housing and Urban Development, or any other depan- mest. agency, or instrumentality of the United States of America. Subd. 10. Federal Igttl-H- 'Federal legislation' includes the United States Messing Act of 1937, United States Code, tide 42, sections 1401 to 1440, as amended through December 31, 1989; the ftional Housing Act, United States Code, title 12, sections 1701 to 17 SO& as amended through December 31. 1989; and any other legisla- tion of the Congress of the United States relating to federal assistance for clearance or rehabilitation of substandard or blighted area, land assembly, redevelopment projects. of housing. Subd. 11. Blighted ares. 'Blighted tees" means any area with buildings or '1 November 25, 1992 HRA MEMBERS: Chairperson Al Larson Vice Chairperson Ben Smith Lowell Schrupp Everette Ellison Tom St. Hilaire GUESTS: Mayor Ken Maus Hospital Administrator Barb Schwientek For HRA members only, the HRA will meet Wednesday, December 2, 1992 at 7:00 p.m. for the regular monthly meeting. The agenda will be delivered on the Tuesday prior. Secondly, for HRA members, Mayor Maus, and Adm.:iistrator Schwientek. Arrangements have been made with Carol Mills, Guardian Angels Foundation Administrator, to tour the market -rate and subsidized assisted -living senior housing facilities in Elk River on Wednesday, December 9, 1992 at 7:00 p.m. We will leave Monticello's City Hall at 6:30 u,m. Additionally, you will be briefed on the Guardian Angelo' organizational and management otructure, and witness the services available to residento. Please make every effort to attend as Carol Mills hos reserved time to accommodate our request. Three HRA members and myself toured the facilities on November 18 and the tour was worth a million words. Wishing you a Happy Thankogivingl Sinceroly, 011ie Koropchak HRA Executive Director CC: Carol Millo A December 16, 1992 Mrs. Carol Mills Guardian Angels Homes 350 Evans Avenue Elk River, MN 55330 Dear Carol: On behalf of the Monticello Housing and Redevelopment Authority, Mayor Maus, and Administrator Schwientek, I would like to express our appreciation for your time and expertise shared with us on December 9. The visit was worth a million words. Arrangements have been made with Pat McCullough to meet with the HRA In January. We will keep you posted. Again, many thanks. A very Merry Christmas to you and your family and the staff at Guardian Angels. Sincere ly, CITY OF MONTICELLO 011ie Koropchak Economic Development Director cc: HRA File Mayor Mauo Administrator Schweintek MICROFILM TITLE PAGE CITY OF MONTICELLO Housing & Redevelopment Authority (HRA) Agenda Books 1993