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HRA Agenda 04-03-1996AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 3, 1996 - 701 p.m. City Hall MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Everette Ellison. Tom St. Hilaire, and Roger Carlson. STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. GUEST: Steve Bubul, HRA Attorney Jack Hutchinson, US Postal Service, Monticello John Komerak, Developer Terry Mick, Developer I . CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE MARCH 6 AND MARCH 211,1996 HRA MINUTES. 3. CONSIDERATION TO REVIEW FOR ACTION THE DEVELOPMENT CONTRACT BETWEEN THE HRA AND METCALF & LARSON. 4. CONSIDERATION TO HEAR A PROPOSAL FOR A MULTI-HOUSING DEVELOPMENT ON THE BRENNAN PROPERTY AND CONSIDERATION OF TIF ASSISTANCE. 5. CONSIDERATION TO REVIEW THE PRELIMINARY ESTIMATE OF THE CASH BALANCE OF THE TIF SURPLUS FUND. 6. CONSIDERATION OF AN UPDATE ON THE EMINENT DOMAIN PROCESS OR CONSIDERATION TD ACQUIRE THE KATLMAREK PROPERTY. 7. CONSIDERATION TO REVIEW FOR ACCEPTANCE. THE APPRAISAL. FOR I I I WEST BROADWAY AND AUTHORIZATION TO PREPARE AN OPTION AGREEMENT. S. CONSIDERATION OF AN UPDATE RELATING TO THE PROCESS TO HIRE A CONSULTANT FIRM FOR THE PURPOSE. TO PREPARE A STUDY/PLAN FOR THE DEVELOPMENT OF THE COMMUNITY/RIVERFRONT. 9. OTHER BUSINESS. a) Approval of Monthly Bills. b) Other. H 10. ADJOURNMENT. MINUTES SPECIAL MEETING OF THE MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 20, 1996 - 7:00 p.m. City Hall HRA MEMBERS PRESENT: HRA MEMBERS ABSENT: MCP MEMBERS ABSENT: CITY STAFF PRESENT: CITY STAFF ABSENT: GUEST PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger. and Roger Carlson. Everette Ellison and Tom St. Hilaire. Chair Bob Bowen, Vice Chair Lois Maus, Secretary Bill Endres, Treasurer Merrill Busch (tardy), Clint Herbst, Fran Fair, Linda Smith, and Al Larson. Dick Frie. Jeff O'Neill and 011ie Koropchak. Rick Wolfsteller. Barry Fluth, Master's Home Furnishings. Chairperson Larson called the special meeting of the HRA to order at 7:00 p.m. • . s • . u Y .•i.'�i7�i�;T�;1yg.7r•7;�yxll�M�•. • • •IN Wito a I X15 V • • .Y 0:1 AU I W,AWAS 0106 : :4 Y • . Although the HRA will hire and pay for the consulting firm, it is understood between the HRA and MCP that the MCP will serve as the primary organization associated with the consulting firm. Therefore at the request of the HRA, the MPC is included in the process for selection of the consulting firm. All members of the HRA and MCP, except St. Hilaire, Ellison, and Herbst, reviewed and rated the eight request for proposals. Based on a rating criteria sheet developed by O'Neill. O'Neill reported on the compiled scores of the criteria sheets as submitted by the twelve individuals to O'Neill by the deadline of Monday. Per the request of the members. O'Neill and Koropchak ratings were included in the scoring. The compiled scores resulted with the following rating (highest to lowest): Hoisington Koegler 824 Camiros 803 Page I HRA MINUTES MARCH 20, 1996 Dalhgten. Shardlow 762 Sanders. Wacker 692 Northwest 649 BRW 622 Heritage Design 557 Monticello Design 192 Members had various opinions as to the level of importance each criteria column carried. They briefly discussed the fee ranges and agreed these were negotiable. By a majority vote of the eleven members present, they selected the four top-rated consulting firms to interview and make presentations. Hoisington, Camiros, Dalhgren, and Sanders to be notified by O'Neill. The date for the interviews was set for Monday, April 1, 1996, City Hall, 6:00 p.m. Bill Endres volunteered to provide the equipment to video the presentations. O'Neill to forward Tberesa Washburn a copy of the four RFPs with an invitation to attend the April 1 interview session. Fran Fair, Bob Bowen, Al Larson, Lois Maus, and Roger Carlson volunteered to call and check references. O'Neill to assist with the development of a list of questions for consistency of reference checks. Date established for reference checks was Friday, March 29, 1:00 p.m. at Marquette Bank. MCP Chair Bowen reported the MCP Articles of Incorporation have been filed. Filing of the tax exempt status is pending until receipt of (c)3 status information from 'Mereso Washburn. Members stressed the importance of a community/riverfront study not a downtown/riverfrom study. The MCP departed at approximately 7:50p.m. .a Ij;d I (IM1.1WIVIN I a 3 4 Wilt 0 ME Nail.•. • Upon the March 6 HRA adoption of the resolution declaring the structure at I 1 I West Broadway as a substandard structure, the attached Pre -Demolition Development Agreement required execution by the HRA and Barry Fluth. The agreement necessary to indicate the intent of the HRA to negotiate for acquisition of the property. The adopted resolution and the executed agreement provides the HRA with a three-year window option to include the parcel within a redevelopment district. Page 2 HRA MINUTES MARCH 20. 1996 The original agreement was amended as Fluth felt his property was removed from the open market for a period of 45 days or longer. Upon review of the amended agreement, Fluth inquired of the HRA's interest to acquire the property. Barry told HRA members of his asking purchase, S50.000 plus demolition costs of $16,000 or a total of $66,000. Responding to the HRA question of replacement cost; Barry informed members his policy included replacement costs only and if the structure was rebuild his policy included replacement and demolition costs. Koropchak reminded HRA members: All properties acquired by the HRA must be identified in the Central Monticello Redevelopment Plan either through the establishment of a TIF District or as a modification of the Central Monticello Redevelopment Plan. The Fluth property was not identified as a parcel for potential acquisition when the HRA recently modified the Plan. This process takes about 6-8 weeks. For management the tax payers money, for consistency of previous HRA decisions. for protection and public relations, and to encourage Barry Fluth to enter into a Pre - Demolition Development Agreement with the HRA; Barger made a motion. The motion authorized John Farrell of Rockford to appraise the raw land located at I I I West Broadway at an approximate cost of S3(10-5400. The intent of the HRA is to present Batty Fluth with an offer to acquire the raw land through an option agreement. The appraisal to establish a fair market value and to be used to negotiate the purchase price. The offer inclusive of 52,500eamest money, not -to - exceed nine months from the date of the option agreement, and first right of refusal to the HRA. At Larson seconded the motion and with no further discussion, the motion passed 3-0. The HRA has previously elected not to acquire property within the study area until completion of the proposed Community/Riverfront Study and Plan and the TIF Proforma. An option agreement would be drafted after completion of the appraisal and upon agreement of the purchase price. PROJECT UPDATE& a) Eminent Domain project - Members were provided with a copy of the letters from Corrine Thomson. HRA member confirmed the services of John Farrell to appraise the Katzmarek property. b) Prairie West Plus - John Komerak, Bill Endres, Mark Ruff, and Koropehak were on a conference call to infom Mr. Endres (potential tender) of the project and intergration of the TIF assistance. Timing of TIF assistance as equity or for cash now of project which is established through the Private Development Contract was discussed. Result: The need for the developer Page 3 HRA MINUTES MARCH 20, 1996 to prepare a phased timing schedule of the proposed concoction of the twin and quad homes and the coinciding conouction/improvementlacquisidon (project) costs. c) Carlson riverfront property: Noted letter received by Jeff O'Neill. Tabled until submitted. 6. OTHER BUSINESS_ None. 7. ADJOURNMENT, The HRA meeting adjourned at 8:55 p.m. Cmc \,g, ..6D , 011ie Koropchak, Executive Director Page 4 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 6, 1996 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson. Vice Chairperson Brad Barger, Tom St. Hilaire, and Roger Carlson. MEMBERS ABSENT: Everette Ellison. STAFF PRESENT: Rick Wolfsteller and 011ie Kompchak. STAFF ABSENT: Jeff O'Neill. GUEST: John Komerak, Prairie West Plus Developer Mark Ruff, Publicorp . CALL TO O D Chairperson Larson called the HRA meeting to order at 7:00 p.m. CONSIDERATION TO APPROVE THE FEBRUARY 14. 1996 HRA MINUTES. Roger Carlson made a motion to approve the February 14. 1996 HRA minutes. Brad Rarger seconded the motion and with no corrections or additions, the minutes were approved as written. y John Komemk informed members that his original proposal for Prairie West included the development of seven single -residential lots. With the preliminary concept approval for TIF assistance, the overall proposal has changed to include the Praire West development of 6 twin -homes (12 units), the Praire West Plus I development of 2.5 quad -homes (10 units), and Praire West Plus II development of 2 quad -homes (R units). Square footage per unit ranges between 2.400 to 2, 8(K) sq 11 at a value of S45 to S55 per square foot. Site and public improvements include extensive landscaping with retaining walls, public utilities, private road with easements, etc. Komerak has purchased the Prairie West parcel and has purchase agreements on the Hanawalt and Banyai properties with options through June. Purchase price of both properties totals $190.000. Projected time frame for construction is three years, maybe, five years. Page 1 HRA MINUTES MARCH 6, 1996 HRA members and City Staff were encouraged by the total concept for redevelopment of the Praire West, Praire West Plus 1 and II, and the Katzmarek properties for the purpose of elimination of substandard properties, increase of the tax base, recovery of City HACA Penalty, and the private investment of a local developer. For the sake of public assistance discussions, the four redevelopments are being treated independently. Based on the above Praire West Plus I and 11 redevelopment assumptions and the source in use statement of February 23, Mark Ruff concluded the proposed project does warrant public assistance. A reasonable gross margin return for a developer is 20-25 `lb, without public assistance the return to Komerak is 14 %. The Praire West Plus 1 redevelopment would provide TIF assistance in the amount of $160,000 over 20 years. Mark continued, the developer requested upfront TIF assistance of $160.000and the City donate the Gille property and extend utilities and specially assess each parcel. Mark noted two concerns: The HRA normally prefers pay-as-you-go TIF assistance as this reduces their risk and secondly, the City likelihood of donating the Gille property and placing special assessments on the public improvements. Wolfsteller responded that normally a letter of credit is required upfront from the developer for the public improvements. However, because of the total concept of this redevelopment project, there is a good chance this may be waived and each parcel could be assessed for its appropriate share. Wolfsteller reported the City may recover $8,500 of the $32,000 invested, recovery through the Petro Fund. Wright County investment estimated at $11,(HK). Not fully understanding the pay-as-you-go finance method. Komerak became concerned with his upfront carrying costs associated with the acquisition of the Hanawalt and Banyai properties in addition to the public improvement costs. In order for the project to wshtlow and to encourage redevelopment of the area, Commissioner St. Hilaire recummended $80,000upfront and $80,0(H)pay-as-you-go TIF assistance and the IIRA and City negotiate a land price :or the Gille property in order to write-down the cost to the developer. The HRA informed Mark Ruff to move forward with the project and to contact the lender to explain the HRA's risk factors, the intent of the HRA to assist, and the timing of the TIF disbursement. Mark reported the HACA Penalty for a Redevelopment District is a 7.5% annual contribution of which more than one-half can be spend outside the TIF project. Page 2 HRA MINUTES MARCH 6, 1996 Additionally, Mark requested John Komerak prepare a project analysis (proforma) with a breakdown of acquisition, demolition, site and public improvements costs by a phased -construction schedule and estimates of construction completion. R-1 OSUMI 01 a►r : art►. �.0 r. 611MI 114 NO a 11,121r. Koropchak informed HRA members that the enclosed resolution for adoption provides the HRA with a three-year window option to include the 111 West Broadway parcel within a TIF -Redevelopment District if the Community/Riverfront Study/Plan so recommends. If the resolution is not adopted and the attached Pre - Demolition Development Agreement is not entered into by both the HRA and Mr. Fluth, the HRA waives its option. The agreement is a non -enforceable as the agreement states the HRA and Mr. Fluth agree to sit down and negotiate for the intent to acquire. The agreement allows 45 -days for negotiation which can be extended. The agreement was faxed to Mr. Fluth prior to his out-of-town engagement, I have heard no response from Mr. Fluth. His plans were to demolish the substandard structure the week of March 11. In order to preserve all redevelopment options, Roger Carlson made a motion to adopt the resolution finding the I I I West Broadway parcel occupied by a structurally substandard building and authorizing execution of the Pre -Demolition Development Agreement. The motion was subject to Mr. Fluth's execution of the agreement. The motion was seconded by Brad Barger and with no further discussion, the motion passed unanimously. CONSIDERATION OF H UPDATES- a) IPDAT .C•a) Eminent Domain process - The HRA confirmed utilizing the services of Wright Title and Conworth. Inc. as recommended and outlined by Corrine Thomson. Kennedy & Graven, letter of March 4. 1996. b) HILA levy - For informational purposes only. Chairperson Larson requested the maximum HRA levy potential for the Monticello HRA. Publicorp calculated the maximum levy as $59,233 annually. Upon preparation of an NRA budget, an HRA levy is submitted to City Council for aproval along with the City Budget. C) Approval of monthly bills - HRA members ok'd the monthly billings. Page 3 HRA MINUTES MARCH 6. 1996 CONSIDERATION TO REVIEW THE RFPs FOR SELECTION OF THREE PLANNER CONSULTANT FIRMS TO INTERVIEW AND MAKE PRESENTATIONS, MCP Boardmembers Bob Bowen. Lois Maus, Bill Endres, Merrill Busch, Fran Fair, Dick Frie, and Linda Smith, and City Assistant Administrator Jeff O'Neill joined the HRA meeting at 8:00 p.m. MCP Boardmember Clint Herbst was absent. Eight Request for Proposals were received prior to the deadline of March 4. Because of the comprehensiveness of each proposal, Al Larson and Lois Maus were unable to adequately review and call references on March 5. Other MCP Boardmembers also received copies of the eight RFPs. General comments made by MCP and HRA members: • Not his profession, uncomfortable rating the RFPs. • Recommend presentations of five firms, not three. • Selection timeframe too fast, no way ready for presentation/interviews on March 20. • Dollar amount not the issue, work approach with project director and implementation are important. • Microscopic project to review RFPs, not ready, recommend short list of three. • Immediate review of RFPs, developed a list of five, need more time to recommend three. No clear cut implementations. • Check references for past historical projects of communities with less than 10,000 population. Good basis for selection. • Recommend three to four firms at maximum for presentations. • Recommend three, final selection of three on March 20. • Recommend three tines. • Delay of presentations, effect on timeliness to hire project manager. • Delay of presentations, may effect the energy and attitude of volunteers. • All firms had some experience with riverfront development. • Implementation plan, atter results of market and financial feasibility studies. Dick Fric left the meeting early. Jeff O'Neill reviewed the criteria rating sheet developed to assist each HRA and MCP member who participate in the review and selection process. The rating sheet follows the approach of the returned RFPs and is for utilization as a guide and for consistency. Page 4 HRA MflRJTES MARCH 6, 1996 All members present agreed, the importance of selecting a consulting firm warrants more time for review and study of the RFPs prior to the selection of firms for presentations and interviews. It was further agreed, each MCP and HRA member will review and rate the eight RFPs and return the criteria rating sheets to Jeff O'Neill by Monday, March 18, 4:30 p.m. Jeff will calculate the points of each returned criteria sheet to determine the four highest rating firms. On March 20,7:00 P.M.,City Hall, the MCP and HRA members will meet to hear the criteria rating results. O'Neill will contact the eight consulting firms with a notification delaying the date for presentations and interviews. Koropchak reminded HRA and Planning and Parks Commission members that the joint meeting scheduled for Wednesday, April 10, at 7:00 P.M.was cancelled because of a delay in the process to adopt the Monticello Comprehensive Plan. The HRA mating adjourned at 8:50 P.M. 011ie Koropchak, Executive Director Page 5 HRA AGENDA APRIL 3, 1996 '1 7 1 4,11 � 1 1 i1, 1 : 4. 1 1 .1T410 -Mm. J. 11 11 1 1 Y. 5 -:i1. " 1 '6,1 1 � 1 � 1I 7 . w11 A Jack Hutchinson, Local Postmaster, requested to be on the HRA agenda. Mr. Hutchinson will update the HRA on the potential plans of the West Broadway postal service and future expansion plans. Additionally, he and Administrator Wolfsteller request the HRA consider action to enforce the Development Contract between the HRA and Metcalf & Larson as the area now poses an unsafe and hazardous situation. Mr. Hutchinson was informed to contact the owner, Cinco Corporation, to be present at the meeting. Brad Larson has been contacted of the April 3 meeting. This issue has been reviewed by the HRA on numerous previous occasions. On January 11. 1995, the HRA recommended Brad Larson address a letter to the Cinco Corporation, owner, giving a 30 -day notice to close the driveway. The HRA's objective was to encourage the two property owners to resolve the problem or for Cinco Corporation to inquire to the City for purchase of the Old Hass properly. Within the 1983 Development Agreement between the HRA and Metcalf/Larson, the developers agreed to file of record a twenty (N►) foot wide easement for purposes of ingress and egress in favor of the City of Monticello to be approved by the City Attorney. NO record of the 20 foot easement exists. A letter dated September 6 from Brad Larson indicated a willingness of the developer to file the easement subject to the City entering into a Maintenance Agreement. The 1983 Development Contract has no provision relating to a Maintenance Agreement. On September h, t995, the HRA passed a motion of a "wait and see approach". Again, in hopes of encouraging the two property owners to resolve the issue of maintaining the driveway access to Locust or to encourage Cinco Corporation to contact the City of Monticello for consideration to purchase the old Hass property. The HRA elected not to seek legal advise in September. It appears the US Postal Service has on numerous occasions contacted the Administrator Wolfsteller, as previously the City promised the postal service access to Locust Street. Normally, the HRA takes the position "a contract is a contract" and has stood behind the content of a contract. Attorney Bubul will attend the meeting to advise the HRA. Page I HRA AGENDA r APRIL 3.1996 B. Alternative Action: A motion to stand behind the HRA recommendation of January 11, blockage of the driveway for purpose to encourage the two property owners to resolve the issue. Wait and see approach. 2. A motion subject to the advise of Attorney Bubul for enforcement of the Development Contract whereby the developer files a 20 -ft wide easement. 3. A motion subject to the advise of Attorney Bubul whereby the developer files a 20-11 wide easement and the HRA and developer enter into a Maintenance Agreement. 4. A motion subject to the advise of Attorney Bubul whereby the developer files a 20411 wide easement and the City consider providing a temporary driveway through the old Hass property with an access to Linn Street. 5. A motion to table any action. C. Recommendation: Without legal advise, staff has not offered a firm recommendation. HRA members should keep in mind the potential of a new Redevelopment District and the relationship between the pedestrian traffic created by the post office and the activities of a successful community/riverfront development project. D. Su=grtina Data: September 6 agenda. Development Contract, map of the area, letters and minutes following. i Page 2 HRA AGENDA SEPTEMBER 5, 1995 Consideration to review for further direction the Dev_e_lnpment Agreement between the HRA_an3_LarsorllMetcalf_relating_to a 20. foot easement. A. Reference_an.,Rackgreund:. Within the last week Lar3on:Met.calf blocked off the access from the Post Office to Locust Street. On January 11, 1995, the HRA recommended Brad Larson addreRs a letter to the Cinco Corporation (owner of tho post ufficp building) giving a 30 - day notice to close the driveway. The HRA's objective was to oncouragP the two property owners to roaulvo the problem or for Cinco Corporation to Inquire to the City for purchase of the old Hass Property. (Soo oncloraod letter of April 95, 1995.) As Jeff O'Neill indicated at the January I1 meeting, the public has the right -to -cross. Within the 1983 Dpvelopmont Agreement between the HRA and T.arRon/Metcalf (the "developers"), the developers agreed to file of rcrnord a twenty (20) foot wide easnment fur purposes of ingress and ogress in favor of the City of Monticollo to tics approved by the City Attorney. No record of the 2n font easement exiats. The City does own a small strip of property to the north of the Larson/Motcalf office building; however: the- strip does not run westerly to a point joining the property owned by Cinco Corporation. Brad Larson has repeatedly requested the HRA or City to provide a temporary driveway for postal use with an access to Linn Street through the old Hass Property. Postmaster .Jack Hutchinson has called AdmInIntratnr Wolfsteller stating the City promised US Poet Office an Jngrese and egress. Although City Administration does support the HRA's recommendation and objective, they do feel thR puhlic has the right -to -erose and that the developers have not complied with the Development Aijroement of October 31, 1983. After dlscussinn, tho HRA may wish to conAidar the following Alternatives. Altprnativo Actinna: A motion to Atand firmly behind NRA rrrommondatlnn of January 11, encouraging the two property owners to rosiolva tho Josue. Page 1 HRA AGENnA SEPTEMBER 5: 1995 2. A mntiun to obtain legal advise relating to possible onforcomont of the Dovalopment Agroement. 3. A motion fur the HRA or r.tty ro provtdo. a temporary driveway through tho Hass proporty with an accnea to Linn ERtreet. 4. A motion to take a "wait and see" approach. C. Staff reccimmendation: Tt appears the HRA and City has bpc�n thn aubinct for n --t resulving tho iNaue. Staff supporta alternative. No. 2 or 4. n. SupLortlnc,_ Data: Development Agrooment, Map, anti Letter of April 95. Page 2 DEVELOPMENT AGREEMENT ,r THIS AGREEMENT, executed this t'ay of October, 1983, by and between the Monticello Housing and Redevelopment Authority (hereinafter referred to as "the HRA") and Bradley V. Larson and James G. Metcalf (hereinafter referred to as "the developers") set out provisions for the disposition of lands and the orderly development thereof in accordance with the Central Monticello Redevelopment Plan. The HRA and the Developers do hereby agree as follows: THE DEVELOPERS AGREE: I. That development of land and all buildings shall be in accordance with this agreement, the Central Monticello Redevelopment Plan, and all other applicable, municipal ordinances. That for the purposes of establishing valuations for taxes payable, the building and appurtenant facilities to be first constructed on the following described real property, to -wit: The Northeasterly Fifty Feet of Lots Eight, Nine and Ter. in Block Fifty, of the Village of Monticello, according to the plat thereof on file and of record in the Office of the Wright County Recorder, which parcel nny also be described as follows: Commencing at the Northeasterly corner of Lot Ten, Block Fifty, Townsite of Monticello; thence Southwesterly along the Easterly line of said Lot Ten a distance of Fifty Feet; thence Westerly at a right angle to the last described line across Lots Ten, Nine and Eight in said Block Fifty to the Westerly line of Lot 8; thence Northeasterly along the Westerly line of Lot Eight to the Northwesterly corner thereof; thence Easterly along the Northerly line o1 Lots Eight, Nine and Ten to the point of beginning, all in Block Fifty, Townsite of Monticello. rwi; That part of Lots 9 and 10, Block 80, Townsite of Monticello, described as follows: Beginning at the SE-ly comer of said Lot 10; thence NE-ly along the SE-ly line of said Lot 10, a distance of 102.84 feet to a line parallel with and distant 62.00 feet SW-ly of, as measured at a right angle to the NE-ly line of said Lot 9 and 10; thence NW-ly along said parallel line, a distance of 40.21 feet to a line parallel with and distant 7.00 feet NW-ly of, as measured at a right angle to the SE-ly line of said Lot 9; thence SW-ly along said parallel line, a distance of 102.86 feet to the SW-ly line of said Lot 9; thence SE-ly along said Stl-ly line and the SW-ly line of said Lot 10, a distance of 40.20 feet to the point of beginning. shall be deemed to be totally complete and assessed as such as of December 31, 1983. 3. That in the event the County Auditor or County Assessor will not record evaluations for a complete building prior to its actually being complete, Bradley V. Larson and James G. Metcalf will pay to HRA the difference between the tax increment based upon the partial building and the tax increment based upon the completed structure. 4. That in any year in which the tax increment generated by the development does not meet or exceed the amount required by the HRA to meet its debt retirement demands, the developers shall pay directly to the HRA the difference between the actual tax increment collected, and the required debt retirement payment, said payment to be made no later than the 15th day of December in the year in which the taxes are due and payable. 5. That they shall purchase from the HRA the following described real property, to -wit: The Northeasterly Fifty feet of hots Eight, Nine, and Ten, in Block Fifty Of the Village of Monticello, according to the plat thereof on file and of record in the Office of the Register of Deeds in and for said Courtty. on or before the 16th day of November, 1983, and they shall remit payment in the sum of $10,000.00 to the HRA on the date of purchase. 6. That no "project land" acquired by the developers from the HRA may be resold prior to improvements being made without the prior written consent of the HRA. 7. That there shall be no discrimination on the basis of race, color, sex, creed or national origin in the sale, lease, transfer or occupancy of the property covered by this agreement. 8. That the property shall be devoted only to the uses that fall within the scope of the Central Monticello Redevelopment Plan for a period of twenty (20) years from the date of this agreement. 9. That, except where physically impossible, all public and private utilities serving the parcels within this agreement shall be under- ground. Co. Developers agree to file of record a twenty (20) foot vide easement. for purposes of ingress and egress in favor of the City of Monticell to be approved by the City Attorney. THE HRA AGREES: 1. That the HRA will convey to the Developer title to the following described real property, to -wit: The Northeasterly Fifty feet of Lots Eight, Nine, and Ten, in Block Fifty of the Village of Monticello, according to the plat thereof on file and of record in the Office of the Register of Deeds in and for said C:amty. on or before the 16th day of November, 1983, for the sum of $10,000.( 2. That, prior to the conveyance of title to the developers, the HRA will demolish existing structures and generally prepare the site for new construction. -2- 3. That they will provide a deed to the following described real property, to -wit: The Northeasterly Fifty feet of Lots Eight, Nine, and Ten, in Block Fifty of the Village of Monticello, according to the plat thereof on file and of record in the Office of the Register of Deeds in and for said County. 4. That for all sales of land referred to herein, the cost is the total cost. No existing special assessments shall be transferred to the developers, unless the developers request such transfer. The HRA further agrees that when the price agreed upon herein is paid by the developers to the HRA, the title to the parcel will be transferred free of all encumbrances. FOR THE HRA Ph 3ipsNh to Thomas A. Eidem- Thio �day of November, 1981. Notary Public ' A w aaa� era, awe n, roeo FOR T"EVELOP$RS /Id_l�e, 4L.,n �6 -3- Metcalf 0 PIDI 155 -010 - TIP REDEVELOPMENT DISTRICT 12 BOUNDARIES DISTRICT DURATION 2010 1%2 (.4. 132 1 I1$ 1S2�� I I I I i a I JONES 05014Q TANNp QU11T'050610 O ENV 151,0011 J _ I 1 4 uSA k`''�"P 051111 d ENV I57. B00 T 1874.70- 050170 , . ENV /4e,9C T $447.68I I C ENV $41.100 C T 8411.70 , 1 HVER•►ARR VIM 051170 T {56146 DIV 8760;400' : I I T 816,425.92 ' µolkn� lk osmu ENV g4.40I1 I. 1 T {905.90 ! �y 14 LEASURE 13 i� 105141,0 s \ S I \ 4 \ •j \ 7.• I l i I ENV 851.600 - T 11 ,455AU :f CI7T'fOI MOIh'I OS00 I I I �NTT:2c a1AR8pIV o f 1 BRaWa:. FJ�iNibB�P I_ o I __ o C 0 1 I FNV t11, 5001 I I I I I __ g I M _ O► ro, BROADWAY SQUARE I.I MITED PARTUDI051070.01ENV.189. 7001100 �IOn CULP 05001 I �TI16 T 812.496.11 eS1�' 2 �� �- .CMV 461.6001 T 1�.»0.16 I 70 92 900 0! B11,B I T I/B� I I I r CI aT m1 b I I I • I - ENv 27,600 ul T 12 270. BB Zu i I I O\••K So Broadwe y Alelcall &pfn,son ATTORNEYS AT LAW n0. 9e. u6 ' 3u WW AM- -a, � Menlltelb. MMMwt� SSil2MM V JAMES G. METCALF TELEPHONE BRADLEY V. LARSON (8+21 29632)2 April 25, 1995METRO (8121 421-3393 FAX (81212W31 32 Cinco Corporation P. O. Box 185 St. Cloud, Minnesota 56302-1185 Gentlemen: Please be advised that we are the adjoining land owners to the east of the post office. I believe you own the building and rent to the United State Post Office department. Over the years we have had some discussion with your predecessors in title with regard to the driveway that your patron's use through our parking lot. In the past there has been no desire on the part of you or your tenants to participate in the cost of maintaining the driveway which exists primarily for your benefit. Therefore, we are putting you on notice that on August 1, 1995, the drive will be terminated at our common boundary lines unless, prior to that time, you contact us and we reach an accord with regard to future sharing of expenses with regard to the driveway and its maintenance. Respectfully yours, METCALF b LARSON 8y: //`'°�/.,,� v. " { v Bradley V. Larson, Esq. BVL/gls / cc: United State Post Office ATTENTION: Postmpstar City of Monticello) ATTENTION: Jeff O'Neill Broadway Partners r Afcaf/ & -fauon ATTORNEYS AT LAW 313 WON GM.0—y PO. am "6 Mpt .ft MI—M 55mow BRADLEY V, LARSON TELEPHONE JAMES G. METCALF OF COUNSEL (612) 295•32J2 005.1 iA FAX August 31, 1995 (612)29537192 Carol A. Gabriel Real Estate Specialist United States Postal Service 6800 W. 64th Street, Suite 100 Overland Park, Kansas 66202-4171 Re: Monticello Post Office access Dear Ms. Gabriel: I am in receipt of your letter dated August 28, 1995, and a copy of the deed whereby Monticello Ford reserved an easement for ingress and egress over the 12' strip. I was out of the office on August 29th. I do not know if the City or Monticello Ford ever granted an easement to your landlord. when we constructed an office building next door, the City caused us to relocate the driveway. I do know the City and your landlord will not take responsibility for the driveway that is primarily used by your patrons. In any event, the easement reservation would appear to be void as there was a historical gap between our office building and your landlord's property. Neither Monticello Ford, Inc. or the City of Monticello can grant or reserve an easement over property that they never had title to. we have since acquired that strip. I have no desire to create a hardship for you or your patrons but the failure of your landlord to communicate and the City's position that it has no responsibility forces the issue. I am willing to negotiate a driveway license agreement for your use of the driveway. The various owners of our parking lot have spent thousands of dollars over the years for snow removal and maintenance. The traffic current flow also presents a safety hazard. Your landlord can provide you with an alternative access via adjacent City owned property and increased parking that would facilitate a safer traffic flow onto another public street. I am open to any suggestions but the barricade posts will remain until a resolution is reached. I suggest your landlord approach the City regarding an alternate access. This action should come as no surprise to you since your landlord, the Post office and the City wero put on notice of what I intended to do back on April 25, 1995. 1 enclose a copy of that letter in the event that you wore not provided with one. �- Carol A. Gabriel Page 2Vo �1 August 31, 1995 Please do not hesitate to contact me. Respectfully yours, METCALF, LARSON & MIJTH �..GGy� l`�- BY: i Br "ley V. Letson, Esq. BVL/gls Enclosure cc: Monticello Post Office ATTN: Jack City of Monticello v ATTN: 011ie go� V• \Q4 S The two commisaioners dJd agree to Pxtand th:- darn for- rixecutton of the Purrhase and Development Contra -It'. to 11159 p.m., nctoher 4, 1995. rONSIDERATION TO REVIEW FOR FURTHRR DIREr,TION THE DEVELOPMENT AGREEMENT BETWEEN THE _RRA AND LARSON!METrALF__REI.ATTNG TO- A_20 FOOT EASEMENT. Since the post offic.: access to Locust Street was blocked. Administrator Wolfsteller has heard from tho US Postal Sorvir. In St. Louis. He informed Postal service of Devr.•lopment AgrPement between the HRA and LarsanlMetcalf relating to thr 20 foot ea3emant. Koropchalr informed mcmhers that Brad Larson was faxed a copy of the Development Agreement of 1983. With an incorrect fax number, the fax was just rRrelved today. Brad Larson has not responded at this point. After a brief diarussion, A] Laraccn made a motion to take a "wait and see approach." Roger rarlson sece,nded the motion and with no further disrusaltui: the motion passed unanimou.aly. CONSIDERATIn_N TOREVIEW FOR FURTHER DIRECTION _THE COMPARISnN BETWEEN_ THE,_TA:_INCREMENT OnARANTE_F._ AND THE, TAX INrREMF.NT RBCBTVBD RELATING TO CERTAIN TTB DISTRICTS. HRA members reviewed the information provided in the agenda supplement and asked why the shortfalls. Although anmu Individual dletrlcts may eorreot their shortfall prior to dr,certiftcation throwsjh an lnr.reawe In the .+srimated market value, tho main reason for the shortfall is tho result of the reduction of the preferred classification rates for commer,:fal and 1ndu-+trial property. With the HRA'a helief "a conrract is a rontraot", Al Lar -cin made a motion authorizing the lsauanco of an anneal tax innrHment guarantee shortfall notice (not due and payable) with an explanitlon that thu HRA will compare for compliance the total amount of tax increment reneIvrd upun decortiflcation of the district and the tax Incremont guarantee. This for TIF District Noe. 1-8 NRP, 1-9 Tappora, 1-10 Remmele, and 1-12 Arnplax. Also, the motion authorized a M.-rond latter he Issued to Jay Morrell relattng to the S13,003.50 tax incrumont guarantee alortfall due and lwayahl� Car derrrtifed TIF District Now. 1-1 and 1-4. RoUcr Carlson nrnunded the motlon. Adrlltlonally, the HRA tahle-1 any TI guaranteu enforcement der.istonw nntftMich time as nanws3ary. With no further dlscusalnn, the motion paMerd unanJmously. Koropchak reportol thr City Administrator was notiftcd by the State napartmont of Revenue that the City of McsntJoollo'a Tax Increment Aid Rn-Auotton (RATA Penalty) tot, 1498 is $31,431 for Page 2 HRA AGENDA j OCTOBER 4, 1995 7 i(: 1 11, l=l/ II.IJ' =1i�� +wl� yl, 15 .'!ll In order to encourage the two property owners to resolve the issue of maintaining the driveway access to Locust or to encourage Cines Corporation to contact the City of Monticello for consideration to purchase the old Hass propoerty, the HRA recommended Metcalf & Larson address a letter to Cisco Corporation giving a 30 - day notice to close the driveway. On September 6, 1995, the HRA faxed Brad Larson a copy of the Development Agreement between the HRA and Metcalf and Larson wherein the developers agreed to Erle of record a twenty foot wide easement for the purposes of ingress and egress in favor of the City of Monticello to be approved by the City Attorney. In order to allow time for Brad Larson to respond to the HRA fax, the commissioners passed a motion of a "wait and see approach'. The attached letter (Letter #I) from Brad Larson is a response to the fax. To improve communications and upon HRA Chairperson approval, the Executive Director submitted the copy of the Development Agreement to Cinco Corporation. See attached Letter #2. This is a fellowup agenda item for informational purposes and the HRA may wish to continue the "wait and see approach" since little time has lapsed from the date of the two attached letters. y Page I Ad.q, lauon S OVA AT70RNEYS AT LAW 313 V" BRtlCr, ROL am 4" woracab w room 59 -04" BRADLEY V LARSON TELEPHONE STEVEN d WJTM September 6, 1995 (612) FAX 40AES Q mETCALF, os coLoem (W5.00 MM 29sa+32 City of Monticello 250 East Broadway P. 0. Box 1147 Monticello, Minnesota 55362-9245 ATTENTION: 011ie Dear 011ie: Thank you for your fax of today attaching the 1983 Development Agreement between Jim and I and the City. We had not been able to find an executed copy. With regard to paragraph 10 wherein we agreed to file a twenty foot (20') wide easement in favor of the City of Monticello to be approved by the City Attorney, as I recall, that was never done. I am willing to file a formal easement in favor of the City which I assume would be assigned to the post office landlord but I think it appropriate a Maintenance Agreement be entered into or, since it is going to be a public easement, that the maintenance be borne by the City. If the City is not interested in entering into a Maintenance Agreement or maintaining the easement, maybe it is appropriate at this point in time to look at opening up the "Hass" lot access. Thankst Respectfully yours, METCALF, LARSON & MUTH By: Y Biadloy V. Larson, ESQ. BVL/gla cc: David Hyttsten a L om e r 250 East Broadway P. O. Box 1147 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (612) 333-5739 Fax: (612) 295-4404 Cinco Corporation P.O. Box 185 St. Cloud, MN 56302-1185 Gentlemen: September 27,1995 Enclosed is a copy of the Development Agreement between the Monticello Housing and Redevelopment Authority (HRA) and Bradley V. Larson and lames G. Metcalf. As noted the developers agreed to file of record a twenty (20) foot wide easement for purposes of ingress and egress in favor of the City of Monticello to be approved by the City Attorney. There is no mention of the HRA agreeing to enter into a Maintenance Agreement relating to 20 foot wide easement. As property owners, you may wish to consider participation in the cost for maintaining the easement or driveway to appease your tenant, the United States Post Office. Also enclosed aro copies of letters (tom Bradley V. Larson dated April 25, 1995, and September 6. 1995. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IINnAND FOR THE CITY OFF MONTICELLO 011ie Kor• C hak Executitivene Director tor cc: United States Post Office. Postmaster Bradley V. Larson, Attorney at Law HRA File ` HRA MINUTES NOVEMBER 1. 1995 meeting; thereafter, will the Council consider all recommendations for direction of commission appointments in January. 1996. Administrator Wolfsteller requested the HRA consider enforcement of their agreement with Mertcalf/[.arson relating to the 20 ft easement. If the HRA has no plans to eaferce their agreement, Mr. Wolfsteller may bring the matter before the City Council for .Ansideration to block -off the City -owned property behind the Metcalf/Larson brAding or for the Council to consider a temporary access through the old Hass property. HRA members felt the benefactor of the 20 ft easement was the Post Office and perhaps they should consider entering into a maintanence agreement with Metcalf/Larson. HRA members suggested Koropchak invite Brad Larson to the December HRA meeting to determine the HRA's role if any. 9. OTHER Rllq[NFC$: a) Authorization to pay bills - The HRA authorized payment of the enclosed monthly bills. ` b) Koropchak invited and encouraged members of the HRA to attend the NAHRO Conference on November 30. Chairperson Larson expressed interest if his calendar was clear. The HRA meeting adjourned at 8:00 p.m. () 0 ul X dj'c� 0--'. 011ie Koropcbak. Executive Director Page 4 HRA MINUTES JANUARY 10. 1996 limitation. the HRA recommended the Council consider the request for assistance. Other - The HRA members accepted Brad Larson's satisfaction of the blocked easement as it relates to non-maintanence agreement between the owners. The HRA meeting adjourned at 9:50 p.m. Z-)%,�, KV)u 011ie Koropchak. Executive Director Page 6 Ab HRA AGENDA APRIL 3, 1996 111.7 '11 1 CJI 1 1 1J1�1 1 1 1 i .7 1 61 ;1 11 +1 111 I.-ral�lll 1 1 1111.111 X11 1 Hl: 1111 1 � '.7 7.:ii . Terry Mirk, a developer from St. Cloud, requested to be on the HRA agenda. It is my understanding Mr. Mick has developed similiar projects in Hutchinson and elsewhere. He will present a concept overview of the proposed project and is seeking the HRA's interest for TIF assistance as a Housing District. TIF assistance allows the developer to utilize Section 42, Tax Credits through the Minnesota Housing Finance. If the Housing District is a "Qualified Housing District" and TIF assistance is granted, the HACA Penalty is waived. TIF and Section 42 was utilized in the Mississippi Shores project. A certain percentage of the tenants certify that the family qualifies as being of low or moderate income. Mr. Mick has had a preliminary meeting with kff O'Neill relating to the proposal. The concept has not appeared before the Planning Commission. Enclosed is a map outlining the site of the proposed development. Attorney Bubul will further inform you as to the Section 42 program and requirements. Page I ,. ptZ-R. •• R • i^'MSA: � ','i i 4 � +�- ., a.,•i d �, •'� R•`�.. t -- *r .. °••. •••..•��`--!S t'3��' �.a r .. '.•� .� ft,V ( � w !r'. G. E,1 wtLf ♦ .� t��..." ♦ i )'. Ir �+Z •...••• ,t�taq t f;i t• h .� �,_, �lr �„t.- .. t� 7 r^p �/1!! l �J I , °••� w• '•• �'a`• 0• �t1 �A � �..� ; ^; '. 171c,�'it��: I(/ .fA ;., ' Q�,• j �. .Y• 1^., � 7 r � +•,.,J 1 t i. •, E. . - 1' �Q---iii•*�• p�.71•v(�F � t• /t; ., . r .:i T + (. w _ ;�• -� �t •��d: fir.. '' -^ ." 1 �` • 1` I'` r �'• ., 'y y . �. •_ . '�( '-7 , r fqs ! ..•» P Z"f l :^� %-• ,iii(( tt ♦ / .'+a � 1. MIQMWAY 140. 94 AVS ,iA`•°' t•Ir�=�'y J• it,.r,• .y y h`1 � n .• n' (q � • . � `tel HRA AGENDA I APRIL 3, 1996 IL I A. Reference and Backgmud: Enclosed is the preliminary estimates of the cash balance of the TIF Surplus. The estimate is $156,560 at the end of tax year 1995. Additionally, note Publicorp estimates annual surpluses of $1W,0(X)to $150,000 over the next ten years, without projecting any new expenditures. Mark Ruff is on vacation this week and upon his return; he, Wolfsteller, and Koropchak will meet to refine additional information and details. Page I MAR 28 196 09:19AM t}LERS & ASSOCIATES P.2/3 RM OdW. 7 LEADERS ID PUBLIC FINANCE Match 27, 1996 TO: 011ie Koropchak. City of Monticello FR: Marls Ruff RE: Tax Increment Cash Balancer Bared upon the extensive information which you And Rids provided, we have compiled a draft historical and projected cash belesue for all of the tax iacrcmmt districts which have or cunaatly Are producing tax increment. Attached is a Atanmary shen of all existing tax Increment districts. We have used the basic fosmat used currently by the City to account for revenue And expenditures Som each district, with some variations. Again, the numbers which we have compiled require that we confirm with you and the City exact expendittm for pay -as -you -So payments. HRA loam, debt servieo, and Nture tax increment receipts. Listed on line 43 of the spreadsheet b the estimated you end baleam for all tax itwemeot districts. We currently estimate that the HRA had S156,560 in cash balances at the end of the tax year 1995. it is important to nom that we calculate a tan year for 1995 ending on February 1, 1996, because we assume tax increment from 1995 will make debt payments made on February 1. Without projecting any tLatre expenditwes, we Are expecting that aanual surpluaw will be 5100,000 to S 150,000 per year for the next tea yan. It is important to note that we have also distinguished these surpluses between redevelopment districts and economic development dim= As a pan of the final report for this pro forma, we will be making recommendations for the use of any surplus ieeremem foam economic development d4trW4h which arc more restricted in use than redevelopment districts as well as the dollars potentially oVble for a development account. We have compiled the data in similar formats for sub tax increment district and for years prior to 1994 and after 2005. Please review the attached and comes me with any questions or commam I would like to discuss these nwnbers with you in greater detail in the near future. OtiltM 1111 NwMurout. sat No 11IOOK11"O, Mt 2950 Norwaat Center. ter Betel6everra $VW . Mlnnaaeoft MN 66103.4tOD T~*no 612439.001. FAX 612.33044 cm OF MONTCCELLO PRO FORMA ANALYSIS SIAM OF ALL TIF DISTRICTS REVENUES (FY Ended) 189! ISM IM 1897 1996 1099 2000 2001 2m2 20G1 200- 2006 M31617mm 1& d M P P P_ P P e e C P P 1 17 REYEM COUECTLD - - -- 777¢76 096,0117 40,12 361,077 761,077 364,976 2cs.143 211,407 240197 221,619 166,796 16W,i-9! 2 POOLEDINCREMEMT 0 0 0 0 0 0 0 0 0 O 0 0 3 LAND SALE LNCOME 0 0 0 0 O 0 0 0 0 0 0 0 4 INTEREST INCOME 0 0 0 0 O 0 0 0 0 O 0 0 6 REN ESTATE TAXES (AO VALOREM) 0 0 0 0 0 0 0 0 0 O a 0 6 PMTS b7 PROP. ORINERSIDEFIGENCY R 0 0 0 0 0 0 0 0 0 O 0 0 1 M. CREDIT 0 0 O 0 0 0 0 0 0 p 0 0 6SPECIAL ASSESSMENT 0 0 0 0 0 0 0 0 0 0 0 0 9 ORAMTS 0 0 0 0 0 0 0 0 0 O D 0 10 APPICAT67N FEES 0 0 0 0 0 0 0 0 0 p 0 0 11 PLOT PAYMENTS 0 0 0 O 0 0 0 0 0 0 0 0 11 OTKR D4CC** 0 0 0 0 0 O 0 0 0_ 1) 0 D 17 ?FQmCTREVLNUE _ 3.77776 811SW 479,171 MI,O'N 9610_77 761,076 266.717 941.497241497 274p19 166,763 IhK7Y0 14 00AROM1,08- -- - - ND 0 0 a 0 a 0 - - -_a - 0 - �O - - 0 -6 15 LOCAL MATCH 0 0 0 D 0 0_ 0 0 0 0 0 D 16 ri`. � mwe INSANE 717,EM 7M,M] tl0,1/7 _ 711,011 ]II,Ol7 754,0- 101,74/ 341,463 M114M _It __1- ' _ _ EXPENSES (FY Ended) 1991 1987 1096 1987 1996 IDIS 21610 am 2001 2000 ZD04 � HOIa1f4107.P19JOL1D1 N H P P P P. P. P 2 P P. P. 17 SALARIES & FRINGE BENE F176 0 0 0 0 0 O 0 0 0 0 0 0 10 OFFICE OIIDPLIFO 0 0 D IS 0 0 0 0 0 0 0 0 19 Pf" C&SIONAL 6I RVICF.S- FINANCIAL ITU 516 0 0 0 0 D 0 0 01 0 20 PR011BGIONAL63 RVICF.S - LEGAL 4.100 710 0 O 0 0 0 0 0 0 0 0 YI PNO1'4:=ONALCLRVICES OTHER 1,616 1,771 0 0 0 0 0 0 0 0 0 0 22 PHONE 0 0 0 0 0 0 0 a 0 0 0 0 77 14AVLL0 0 0 0 0 0 D 0 0 0 0 0 24 LEGAL PIIDLICATICIMB 106 0 D 0 0 0 0 0 0 0 0 0 25DUESWUMERS1111P0 0 0 0 0 0 0 0 0 D 0 0 0 76 IN9"W41 0 0 0 0 0 0 IT 0 0 0 0 0 77 CT IN R WSCI LLAIO OUS 0 40 0 0 0 0 0 O 0 0 0 0 __ 2/6i1etOTAL A04ANISIRAIIVF 00019__ 7007 ,1 fi07 _ S 0 D 0 _ 0 0 O 0 PROJECT-! V.0) - - - _ _0 ?0 LAND ACOUIWI ON COO"9 0IO5,am 0 0 0 0 0 O 0 0 0 0 30 PROPERTY TAXES 113 176 0 O 0 0 0 O 0 0 0 0 31 OTTER PROJECT EXPENAS 0 0 0 0 0 0 0 0 0 0 O 0 37 OM R P"" CI EIIPENSES 0 0 0 0 0 0 0 0 0 0 0 0 33 0 0 0 0 0 0 0 O 10 O 0 74 Lotifow l6r 1uttdb1f - - -- - iee - - !o�13d- - o D 0 - o- -- IS "6 - - - - - - 0 - - 0 - DEBT IURVIt! I.1 - - - - - 36 OO PMNCIPAI PAT`MLMT5 to MIT 231.671 161,000 140000 184 ow 110900 70,000 &5,000 50'm 50 ow 00 00,0,0011 60 36 00 WI CREDIT PAYMENIO 1,001 :11i7ffi 60,010 07,646 66,006 4,170 34=6 2111 27,065 10,776 16Am 1034& 31 PAYG PRINCIPAL PAYMENTS (Ii LOAM) 6U1VIZ6 0 10,646 - �1101pr 7/,110 1144 ]0,147 75,3]7 - 946,7177 1.304 32301 - 32.171 V 1D4 161Tro1 _ 1i3M 99001 0 0 31 oust- TAL DEST 31 TOTAL!&PCM&&% -_ -- tl10 IO f -0i -]%�- OPm 2AT,M- 921,64 116,674 11&,671 131 131469 _ 126571 12A.314 ISO 716 _ 76�416"_ 3b_4" _ 70746 70316 40 INCMLMENT P(7(7L16WIIN OI HI H[Ar. 0 D 0 S _245777 S 0 p S 0 _�1y00% 0 6- 0 41 INCREMENT TRANS TO OIDT CLRVIGL 7370m _ '31". 0 0 0 0 O 0 0 0__ 0 0 42 ANNUALCA71116MRDZ4%i0[FICRj 63,/63 (IM,617f 1M�64f IOTN6 116,71/ '611 1M 401 13&11/ - 111911] 136,771 117763 /17,7]1 111,457 4 tIlYU1r111Ye C1617 U1 (D6j 7a A1_ 116,40. i1y661 �Ii Ni N] Y06�6� w,147 151,6&6' 1 640 1 713;.pg 1,4LI�Oy CADN SURPLUS NNCUILVELOPMEN1001 311,110 74/76 3m a$ 471.711 60.74 677,411 740,170 65 AN 071007 1(00.077 1,707,700 1,72104 GA6n 6LNPLU7 N I CAI: OLV.017TRIC11 61,O:J lI' ua) 171 666) 111.164) 1609 IL/M 60143 22 -JIT 41 766 00 sm 14!63 37'46 017717/05 P,49M40 q LIrF wW 1 - F.Www Sw*4 I, CNu04 n k1&N4�IORY wltl HRA AGENDA APRIL 3, 1996 6. A. Since the last HRA meeting, the appraiser and the relocation consultant have contacted Robert Katzmarek relating to the eminent domain process. In the meantime, John Komerak has approached Mr. Katzmarek for a final attempt to purchase the property without eminent domain. Komerak reports a small window of opportunity exists to purchase without eminent domain. Katzmarek contacted City Hall for the names of the HRA Chairperson and Executive Director after receiving the enclosed letter of March 15, 1996, from Attorney Corrine Thomson. Thereafter, did Chairperson Larson and Koropchak receive a copy of Mr. Katzmarek's letter of March 22, 1996 to Thomson. Chairperson Larson contacted Mr. Katzmarek and the follow-up letter of March 29, 1996 was prepared and mailed. Late Friday afternoon, Komerak, Larson, Barger, and Koropchak had a conference call with Attorney Bubul relating to Komerak's further negotiations with Katzmarek to purchase the property without eminient domain. Komerak informed Bubul that he started negotiation efforts with Katzmarek about a year ago and has worked somewhat as an agent for the HRA. It was suggested by Attorney Bubul and agreed upon by those involved in the conference call that Komerak proceed on behalf of the HRA to negotiate an executed purchase agreement in the amount of SIM.W1 for the property and S50AX) for relocation costs for a total of S150AX). Vacation of the parcel to occur no later than late fall 1996. Relocation consultant was placed on -hold and the appraiser was to continue. Komerak will report to the HRA on Wednesday evening. It was suggested, the HRA consider swapping parcels with the City (the Katzmarck property for the Gille property). Additionally, it is my understanding Komerak's proposal was altered to twinhomes along the golf course and quadhomes along West Broadway, this for marketability purposes. Page I KENNEDY & GRAVEN CHARMED &O—Y. n law JAA1L'I J.rmN ,d JTO I'ahhr I;tWRI, \IlNarayullf, Mldluwga 534W Lm M,. wuWCail¢I4 !OBER i A.ALSOP (612) 337.9300 Bo -mL. WLLR1W alit M. BATTpp)N Jug Y. YA\O MueAw 11. BATTT Facibae (611) 337.9310 — STCIIRN J. amm kn IL THAN DA�iDL IiLA AiNId3�IM1 DANILL J. CAEa Mbo WM J. aCNNam a COUNSLL CLwUxB L IJIPCTCBm ROIiaT G CAaLSON JOIN M. LCPRvaLJa. wRrr%jPIRF�1' DIAL ROa[4T L DAvtDwr ROUT J. LINOALL 3232 ��ZZ1777 R." TC. WNO WICLU TON H. LAw JACm &L 6ilOAu1LY FL )%V D. ouuN CORa1NC1 N L'1'RTO& PLA1000 15, 1998 T. JAT SAL]IQI Mr. Robert J. Katzmarek 1400 Broadway West Monticello, MN 55382 Dear Mr. Katzmarek: As you may know, the Monticello Housing and Redevelopment Authority (the "HRAII ) is interested in purchasing from you the property at 1400 Broadway West in Monticello. The HRA has authorized the use of eminent domain, if necessary, to acquire the property and has retained our law firm to handle the acquisition for the HRA. As part of the acquisition process, the HRA has also retained an apprrdser, John C. Farrell, to determine the fair market value of your property. Mr. Farrell will be contacting you 1n the near future to arrange a time to meet with you at the property. If you would like to contact Mr. Farrell, he can be reached at 477-4829 in Rockford. If the HRA proceeds in acquiring your property, you will also be entitled to relocation benefits as provided by law. The HRA has hired a relocation consulting company, Conworth, Inc., to provide relocation assistance to you. Mr. Ken Helvoy of Conworth, Inc., or another member of that company, will be contacting you to discuss the benefits to which you may become entitled. You may reach Mr. Helvey at 928-0044 in Minneapolis. If you are Interested in reaching an agreement with the HRA for the purchase of your property, please contact me at 812-337-9217 in Minneapolis. If I do not hoar from you or if no agreement is reached, the HRA will commence condemnation proceedings, probably within toe next three to four weeks. We would prefer, however, to enter into a purchase agreement with you, if that is possible. Even after condomnation proceedings are commenced, the HRA will remain willing to negotiate with you to reach a mutual agreement for the acquisition of your property. If you would like to discuss this matter further, please call me. Sincerely, 1/164.-_ ,t/, .:lCAo�✓rte Corrine H. Thomson cc: Olive Koropchak CW 101740 10119!•4 Kennedy a (craven. Mar 22. 19913 Mpta., Mn 55402 Dear Corrine Thomson, �+o17s►ek.. Thank you for your letter. '�`` 1W v : On Mar 21, 1988 1 received your correspondence regarding my residence a 1400 W. Broadway. Monticello— the letter was postmarked Mar 20. '98. Contrary to your assumption In the first paragraph tfde is first knowledge for me of proposed action by the city. R Is evident from various references In the letter that the city's planning In regarding to my property has been In the hopper for some time. I have been conveniently left unnotified til what appears to be the last moment. It would seem to me to be somewhat foolfiardy, to quickly contact you regarding possible negotiations witftout first seeking some legal advice on this matter. There seems to be some evidence of good will on the City's part to negotiate 9n good faith' on this matter, but a hasty effort on their part to initiate a 'Condemnation' would not be kindly received by me, which I would interpret as a wholesale effort to railroad me out of town. I'd like further to Inform you and remind them that my property has been grand- fathered In for 18 years as A TREE FARM and this makes said negotiations at this this extremely untimely, (a very busy time of the year for me.) I am retired a depend on It's Income. Gary Anderson, city Inspector, has been aware of said activities for many years. It actually started before there was a city hall. My area of town was unzoned at that time. After my time of legal. consultation, 1 Intend to get hack to you. In the mean- time 1 hope the City doesn't act presumptously. sincerely, c.c.'s my file my legal counsel, Monticello 'HRA' members. Bob Katzmarek i NICYnICF110 March 29, 1996 250 East Broadway P. (:).Box 1147 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (612) 333-5739 Fax: (612) 2954404 Mr. Robert Katzmarek 1400 west Broadway Monticello. MN 55362 Dear Mr. Katzmarek Al Larson. Chairperson of the Monticello Housing and Redevelopment Authority (HRA). ` notified me of his and your telephone conversation of March 27, 1996. As per the request. enclosed are excerpt copies of the HRA Minutes of October 4, 1995 and the HRA Agenda Supplement for November I, 1995, relating to the HRA's attempt to negotiate an acquisition transaction. As noted, the HRA members directed the Executive Director to contact the owner of the property located at 1400 West Broadway to arrange a meeting between the property owner and the HRA Chairperson and Executive Director for the purpose to discuss acquisition of the property for potential redevelopment. The contact was made via a telephone call; however, the property owner cordially declined and was not interested in meeting with the Chairperson and Executive Director. Secondly, as per the March 27 request, are the names of the NRA members: Al Larson, Brad Barger. Everette Ellison, Tom St. Hilaire, and Roger Carlson. Lastly, the HRA has been working with John Komerak for potential redevelopment of the parcels to the east of the 1400 West Broadway property. However, it has been and still remains the HRH's intent to acquire the 1400 West Broadway parcel for redevelopment as public green space. oryser oJPubGc Works. Dog GW Courr Rd, Noatint" MN 55369 • PhaM: I619/ 9954171)- Far: rely/ 2D5J170, at. I Mr. Katzmarek March 29, 1996 Page 2 The HRA remains open to meet with you for negotiations to acquire your property. Please feel free to call Chairperson Larson at 295-2552 or myself at 295-2711. Thank you for the consideration of this matter. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO 011ie Koropchak Executive Director Enclosures cc: HRA File Al Larson, Chairperson NRA AGENDA NOVEMBER 1, 1995 At the October HRA meeting, Koropchak was directed to contact Mr. Katzmarek to set up a meeting between Chairperson Larson, Mr. Katartardc, and Koropchak relating to the HRA's interest to purchase the property. Koropchak contacted Mr. Katzmarek by telephone and he was not interested in selling with or without relocation costs and not was interested in meeting for consideration of HRA ideas for redmPelopment. Enclosed is information provided to the HRA at the October meeting as prepared by Publicorp, Inc. As you may remember Mark Ruff of Publicorp advised the HRA not to consider establishment of a Redevelopment District for several parcels including the State of Minnesota lots because no resolution was adopted prior to demolition and removal of gasoline tanks on the old Gine property. Mr. Bubul will prepare the resolution for adoption to begin the eminent domain process relating to the Katzmarek property. The HRA's intent is to deed the property to the City of Monticello for the purpose of public green space. HRA MINUTES OCTOBER 4, 1995 A new home of greater market value is build and encourages the neighborhood to make improvements. Mark recommended local criteria be established: Define the market, market volunteer sales, find builders, establish minimum new market values, and identify several parcels for district which are agreeable to Council and staff. Downsides are a parcel may contain soils with environmental issues. HRA members recognized this programs works based on all assumptions and the market being right, an HRA may re -gain the value but not the cost. Planning Commissioner Carlson felt redevelopment of single homes along Broadway was not marketable because of the heavy traffic and felt the area should be rezoned to enlarge the downtown area as pan of the updated comprehensive plan. Next, Mark Ruff informed the HRA members that the Katzmarek property in itself qualified as a redevelopment district. However, if the properties to the east were included to increase the tax increment revenue, the area would not qualify as a redevelopment district because a resolution was not adopted by the City prior to demolition of the old Gille structures and removal of tanks. However, the HRA can acquire, demolish, and deed the Katzmarek property to the City for a public park as it lies within the Redevelopment Project No. I boundaries. Rich Carlson and Koropchak informed the HRA members of the conversation between Mr. Katzmarek and John Kamerek relating to an interest for a tnuie/purchase arrangement. Mr. Katzmarek was not interested in relocating to the township on property similiar to his current surroundings. HRA members recommended Koropchak contact Mr. Katzmarek for a meeting between Chairperson Larson, Katzmarek, and Koropchak relating to the HRA's interest of redevelopment and Mr. Katzmarek's interest to sell. If Mr. Katzmarek has no interest to sell, Tom St. Hilaire made a motion for the HRA to move forward with condemnation and relocation of a blighted property for redevelopment. The property known as the Robert Katzmarek property. Al Larson seconded the motion and with no further discussion, the motion passed 4-0. The HRA members agreed not to act on the Olson property along East Broadway until completion of the City Comprehensive Plan Update. C) Consideration to review the descrepancy between the estimated TIF Penalty and the State's TI Aid reduction - HRA members accepted the written explanation provided by Lenny Kirscht of PRG, Inc. The descrepancy resulted because of the combination of a decrease in the sales ratio and an increase in the estimated tax rate between Page 4 �. HRA AGENDA APRIL 3. 1996 7. A. Reference and background At the special meeting of March 20, HRA members authorized John Farrell of Rockford to appraise the raw land located at I I 1 West Broadway at an approximate cost of $300-$400. The intent of the HRA is to present Barry Fluth with an offer to acquire the raw land through an option agreement whereby Mr. Fluth executed the Pre -Demolition Agreement. Enclosed is the letter authorizing Mr. Farrell to proceed with the appraisal. The appraisal will be completed and submitted to the City Hall on Wednesday, April 3, for your review that evening. The appraisal was authorized to demonstrate management of the taxpayers money, for consistency of previous HRA decisions, for HRA protection and public relations, and to establish a fair market value for use to negotiate a purchase price. Subject to the appraisal appearing reasonable, the HRA establishing a purchase price, and Mr. Fluth agreeing to the purchase price and terms of the offer: Terms inclusive of $2,500 earnest money, not -to -exceed nine months from the date of the option agreement, and first right of refusal to the HRA; the HRA may consider authorizing Attorney Bubul to prepare the option agreement. Page I MONTI ELLO March 22. 1996 250 Fast Broadway P. O. Box 1147 Monticello, MN 55362-9245 Phone: (612) 295.2711 Metro: (612) 333.5739 Fax: (612) 295-4404 Mr. John C. Farrell P.O. Box 176 6001 Lone Oak Road Rockford, MN 55373 Dear Mr. Farrell: This is a letter to confirm our telephone conversation of March 21, 1996. Within our conversation, you were authorized to appraise the raw land located at III West Broadway for the Monticello (lousing and Redevelopment Authority (I IRA). The agreed upon appraisal cost in the range of $31X) to 541M1. Anticipated completion of appraisal, two to three weeks. As per the letter enclosed, this property contains a substandard structure. It is my understanding, the structure will be demolished within the next week by the current owner. Upon the completion of the appraisal, it is the intent of the HRA to consider acquisition of the raw land for a potential future redevelopment plan. If you should have any questions, please feel free to call me at 295-2711. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICI:LLO 011ie Koropchak Executive Director Enclosures cc: HRA File O lo, e1pueue works, lwB OogGburw ft. Momiedlq AfNSM62 • rte: (ela) IIBJ.J170 • Par. (6111) RY5-J17o, uf. 1 27 March 1996 UNIMPROVED LAND APPRAISAL Fee Owner: Barbara A. Fluth Property: Lot 7 Blcok 52 Monticello, MN 55362 Monticello HRA 250 East Broadway Monticello, MN 55362 APPRAISAL FEE $300 INV -'^E JOHN �)FARRELL 6wWbd OMrwl Appalw llaww 84009t79 PA. Box ITB, am LOME OAK RD. W"FORD. M 85 17 TE EPH0N5 q»o m-4me APPRAISAL DATE DESCRIPTION 27 March 1996 UNIMPROVED LAND APPRAISAL Fee Owner: Barbara A. Fluth Property: Lot 7 Blcok 52 Monticello, MN 55362 Monticello HRA 250 East Broadway Monticello, MN 55362 APPRAISAL FEE $300 49"' SuAi JOHN C. FARRELL Card1wa o.+«d Approbw i(OD*94; 1,lo *400019 P.O. BOX IM GM LONE OAK RD. UN n"" c10TELEP ta+. 3 March 1996 Ms. 011ie Koropchak Housing and Redevelopment Authority 270 East Broadway Monticello, MN 55362 Re: 111 Most Broadway, Monticello, MB Dear Me. Koropchak, In accordance with your request, I personally inspected and appraised the reel property located at: 111 West Broadway Monticello, Minnesota 55362 In my opinion, the estimated market value of the unimproved lend as of 27 March 1996 is: $37„ 000 The attached report contains the description, value analysis, and a map showing the location of the subject and the comparables. It has been a pleasure to aosiet you; if I may be of further service to you in the future, please let me know. Sincerely, ohn C errell PROPERTY LOCATED AT: 111 West Broadway Montleetlo. Mhumsm 55382 FOR: Montieeno HRA 250 East Broadway AS OF: 27 March. 1898 BY: John C Ferran FJ 71� ww w� �w+�u w ur www are.w Ceww� 4001 Wl l LAND APPRAISAL REPORT FLUPH w.. Citv of Monticello HRA c.n«,. T,.n 1002 M.P R.faa.c. Off Mao 04up.nv Adm... 111 West Broadwav ckY Monticello co-tr Wright stm. 1 finnesota zip cod. 55362 Lwm D..c.ipo_ Lot 7 and 8 Block 2 except Selv 16.5' of Swlv 90' of Lot 8 swRlr.sADDraisl oe.etsm. N/A Loa,leanNIA r. P,.WvWahl.Aw.*.d ®F.. ❑L.o..lnd ❑D.w.tn .lw A....1 tt..l E.ta. T. 1 14jA fr.) Lo.n ch..p.. to b. P.d by ..••r • N/A tt h.r .w. po..e...fon. N/A L—OWCU.m Monticello HRA Ada.... 250 East Broadwav Mgnticeklo. Ml'I o-w.nt Vacant Appr.l..l John C Farrell blxx.uctlou m Alq..l.a Estimete marke� value of vacant lot assuming b_ufldina is razed and around it clean and leve . Lx io....... .. ®VN.n ❑WouWn OW.N Goad AW F.% P— _...._.........._ ......................._. . ❑ ® ❑ ❑ Butt Vp........_..._...._.._..................._.......... ®o"•' 76% ❑75% to 76% MUM. 26% Er.tpbrmpt 6t.hYtr............................. Growth Rn.^._.®Fuor D.r.lop.d ❑R•Wd ❑St..dr OMo. Conv..wnc.t. EmpbYmmt......_._...._.® ❑ ❑ ❑ P•pp..tY Vah.................._......_._......__ [:]•• m"wq ® St.bf. ❑ Dtckmp Gpn,,.N.,lc. to slloppkq _.._...._._... ®❑ ❑ ❑ o.•••^dlswwr......... ........... __... _....._... ❑ ShottaIp ❑ %1 B.I«K. ®Iha S."N conr.nkKlc. til S.t......._............... ® ❑ El 1-1wa4tlna tkn ................_..... ._...._. ❑ U d.. 3 Mo.. ❑ 3 6 Mo.. l®^^a'•' 6 wo.. Aa.u.cr of Rmuo Trr..po.tnbn_...... ❑ (M [3 E3P—t Lane! U"_%I F•o1SY_%7.. FmdY %AW.. _% Cando 10%CarwW R.cn.tb.W FpYlttn_,,,,,,_._..._.._...... _% bldu.bld _% V.cmt _% Ad..u.cY of UIW b.,_„A„...,,,__,,,_ ® ❑ ❑ ❑ Cluny. h. P—t Lad Uw ®Not L.ulr ❑LJ WI'1 OT.kkq Pl.e. 1'1 Rpp.rtY Ca,%% t6 Yr._...._........___... ® ❑ ❑ ❑ t't From To Pn t.ctb. hum O.Nkn..,W Co WHI.rw ® ❑ ❑ ❑ ❑ ow— ® Team �q,l Yp.a P.V- ad Fir. PW. tI n....._............. ❑ ® ❑ ❑ Pr.domin.m Gcpw...pr G.n...l App-- of....... ❑ ® ❑ Elskgb F.mkr P.c. Rll.q. t to 1 R.don*n t v.t... / E]El ❑ Skill. F.mW Ail. �Qn.. to 80 ”. R.dot,*. t AP V^. App..l to 4.rk.t con.lrms imkdbq tbo.. f« tor.. 1—tbb ot mt. ble. eff. V mrk.t.bOdY Io.o public o..k...ct.00l., ww, nw..1 The trend in the market area is to locate Outside of the CBD to hiahwav locations. The location is good for development of a municipal Darkina facility until such time as the lite is developed for another use. b....n.fon. 51.5 X 165 X 70 X 75 X 16.5 X 90 10065 So Ft s. Ft. w A-. ❑co.... Lot z_im ct—in .tlon 233 Commercial P t. t krpoYam.nt. ®D• ❑Do rot contain to toMrq ..p.Y.11on. Nlph..t"B..tu.. ®P.wnttl.. ❑ot—t.p.plto A&W Oo (D—P-) OFF SITE MPROVEMENTS Topo Level at strget arade Ekctridty ® str..tAco... ®^boc ❑Pinto w.Averaae for the Central Business Dist. G.. ® suo,c JgacktLw sk.poRectanaular with a 1.485SF deletion wa.. ® M.kd.aac. ® Ptbuc ❑ Rlvmo vi.w Storefront view of Broadwav S.n.s.or.. ® ®s—So— ®c,.btaw.. D.&LwADDears to be good offsite ❑ und.gmpd Elp. A Td. ® sa.w.lt ® Sft . Lalli. It tM 00-tr bcnw n . HW Idmblu SoMM Flood No«d ® No ❑ Y. cmmoow. u.ro.ubw o. �nt., bio wo%wi q _v.pp— d dr.......n.nt.. a c.o. h e d. o o rr wr.... conddlono The site is accessible from both the Broadwav Avenue side and from the public allev at the north side of the site. There are no apparent easements or encroachments to the sate which would affect the utility or marketability of the yacapt site, TM urw..an.d b.. rwua IN« ..can ub. of woo..n moa ...1« «.a n....r.t. r..u4.ct /.! n.. ttwud«.a In... n IM m.LM .•.IYM. LM Mrpol.rn nAq... aoa« .l%n.ImaN, • I— W. Ih mrM rAp. -P.". .".. S.taawn.nudm.1qm1 ..l.rerr.mMM«A.ptMl Po.fnw«I.. I.I1 In«d. Nil. UI,anop«ft. . Vt1.1 d., vwp m.mr.1 ...qrlpun1KlK.ann nn«wn nn n IM1M ce.nopn«pY«M.lYP. .nP«nlIY«cn r «troP. «va i..so. 11.. ITEM JSURJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 250 East Broadway 540 Elm St E 14 2nd St NE Linn Street Ad&... Monticello.Minneso Annandale Buffalo MOnt.t.ceI...l.o Ro.lmltt, to subl.0 12 mile West Across Street 4 bloc s SW s•b•�• S Appraial I• 25,000 is 15,000 is 17,500 P�• /SgFt 11 NIA • 2.38 Is 5.10 is 1.55 Do. S- Inspection Assessor Records Assessor Records Assessor Records of Sb .r4 DESCRIPTION DESCRIPTION b fl. DESCRIPTION �I. DESCRIPTION A°' 11% Adfu.I— N/A 8/92 2,600 12193 900 12/93 1,050 lxnlon Average Inferior 2,500 Inferior 1,500 Inferior 3,400 Sit./vi.. Aya/Ava Egual Inferior 750 Inferior 900 Corner No No NO No n.l.. In Fk.a.ckq C—...— NM Adj. 110.4 ®.ti. ❑" $ 5.100 ®"• Q«ti • 3.150 M -0--`I 5.350 trdke.e V.k. G%20.4 iG%21.0 I 6830.6 of subl.ot N%20.4 6 30.100 N%21.0 ► 18.150 N%30.6 s 22.850 corlonoi—m..k.to.t. The market 4atq from Monticello aqd other markots in Wriaht county reflect the activity pv both ori\,ata Qpd Dubli4 auengy purchasers. The adiustments to the gMmrablQn are based on higtprig nalen data from the area. rm. ad e -onion of Apmaiwo The appraisal daps not consider liens. encLLmbrances or other limitations to the title whish is asspmoci to be fretl gild clear. Further,the anAurtmtion is made that the buildina will be raz and thg lend will be cleared ang leyel and ;eadv for oreoarptioq for Nae a_Q a Darking facility, rbW P.CM%- aeon The finaj value estimate_e baaed on the adiNgted market data which in averaged tq @,,hive at a conclusion of value of S37.140. The estimate is rounded to 537,000. EAI WATt TME mAnut VALUE. An mmao, op suamCI FNOFEATT fa oF MMarch 142A m twtf 37.00 t flppr.f.«UI IMtll.w App.IWW Of oppkb.bMI n erre Il dnlncn ttM p d000219 Gpngral Resp j yrp�t3r ❑Did C] Did wn Fer.k+Y kmIttat Rop.dY Ite7 Two f— 1. Ur.M III—tW _ G_ low "If oil. Borm.aaaient Cky of Montkeffo HRA Adds.. 117 West Broadway cutr Montieego county Wrfoht State Minnesota ao code 55362 Letoer/Ck—T Montioe0o MRA COMMENTS ON TEE DIRECT SALES COMPARISON The comparable sales used in this appraisal report are the most suitable as market comparisons for the subject property. Following are specific comments concerning the sales data. 1. UB540 ELM STREET, ANNANDALE This is a bare land sale in the central business district of Annandale destined for use as a parking lot by the adjoining land owner. The site is level with all customary public utilities installed. This is an arm's length sale between buyer and seller. Adjustment is made to the sale for time at 38 per annum and for inferior location off the main street in Annandale. 2. 14 4ND STREET HE SWFAL0 This property was sold in 1993 in an arm's length transaction for $15,000. The value of the land in this site is based on the sale to the Buffalo Housing and Redevelopment Agency. The sale is adjusted for time since 1993 and location one block north of the central business district. 3.LINV STREET. MONTICELLO This is a sale for expansion of an existing facility south of the central business district of Monticello. Adjustment is made for location, time, and inferior view and surroundings compared to the subject. w 1 LOCATION MAP IL Borrower/Client Ckr of Monticello HRA Addre.. 771 West Broadway City Monticello Count. Wriaht state Minnesota Zfo code 65362 Lendw=tle,nt Monticello HRA C1 The 0" we, pel' else. A URN" ba.ee.ent.w ce w 11001 IEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions repuiahe to a fair safe, the buyer arta seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a aab as of a specified date and the passing of title from sager to buyer under conditions whereby: (1) buyer and seller ere typically motivated; (2) both parties aro well informed or well advised, and each acting in what he considers his own beat interest; (3) a reasonable time Is allowed for exposure in the open market; (4) payment is made in tams of cash in U.S. dollars or in terns o1 financial arrangements comparable thereto: (6) the price represents the normal consideration fa the property cold unaffected by special or creative financing or sales concession' granted by anyone associated with the safe. 'Adjustments to the comparables mus be made for special or creative financing of sales wrncessbn. No adjustments are necessary for those costs which we normally paid by sellers as a result of tradition or law In a market area; these costs are readily identifiable since the sella pays these costs in virtually, ell sales transaction. Special or creative adjustments can be made to the comparable property by comparisons to financing terms offered by a third party Institutional lender that is net already, involved in the property, or transection. Any adjustment should riot be calculated on a mechanical dollar for dollar cost of the financing or concession but the doper amount of any adjustment should approximate the market's reaction to the financing w concessions based on the appraisers judgement. CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS CERTIFICATION: The Appraiser certifies and agrees that: 1. The Appraiser has no present w contemplated future interest in the property appraised: and neither the employment to make the apprabel, nor the compensation for it, is contingent upon the appraised value of the property. 2. The Appraiser has m personal interest In or bias with resp—t to the subject matter o1 the appraisal report or the participants to the sale. The 'Estimate of Market Value' in the appraisal report is net based in whole or In pan upon the race, color, or national origin of the prospective owners or occupents of the property apprataed, or upon the race, color or national origin of the present owners er occupams of the properties in the vicinity of the property appraised. 3. The Appraiser hes personify Inspected the property, both inside and out, and has made an exterior inspection of an comparable sales listed in the report. To the best of the Apfualser's knowledge and belief, an statements and information in this report we true and correct, and the Appraiser hes not knrowingly, withheld env significant Wormetion. 4. Ali contingent and limiting conditions we contained herein (imposed by the terms of the assignment or by the undersigned affecting the anatyses, opinions. and conclusions comained in the report). 6. This appraisal report has been made in conformity with and is subject to the rewiemems of the Cods of Professional Ethics and Standards of Professional Conduct of the appraisal organization with which the Appraiser is affiliated. S. All conclusions and opinions eoncermng the real estate that are set forth in the appraisal report were prepared by the Appraiser `✓,.+hose sipnsture appears on the appraisal report, untess indicated as Review Appraiser. No change of any ham in the appraisal report shag be made by anyone other than the Appraises, and the Appraiser shell have no responsibility for any such unauthorized change. CONTINGENT AND LIMITING CONDITIONS: The certification of the Appraiser appearing In the appraisal report is subject to the following condition and to such other specific and limiting conditions as are sot forth by the Appraiser in the report. 1, The Appraiser assumes no responsibility for matters of a legal nature effecting the property appraised or the title thereto, nor does the Appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though undo responsible ownerihp. 2. Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The Appraiser hes made two survey of the property. 3. The Appraiser is not required to give lesbmomV or appear In court bscauss of hevinp made the appraisal with reference to the property in Westlon, unless arrangements have been meds previously made therefor. 4. Any distribution of the valuation In the report between lend and improvomonts applies only urder the existing program of utilization. The separate valuations for land and building must net be used in conjunction with any other appraisal and we invalid it so used. 6. The Appraiser sasumes that there we no hidden or urspparent conditions of the property, subsoil, or structures. which would random It more valuable or fees valuebfo. The Apprafsw assumes no responsibility for such condition, or for engineering which might be required to discover such factors. 6. Information, animates, and aptrdas furnished to the Appraiser, and comaiad in the fopwn, were obtained from sources cc sideied reliable and believed to be true and correct. Now"at, no responsibility fa accuracy of such items furnished the Appraiser can be assumed by the Appraiew. 7. Disclosure of the contents of the appraisal report Is governed by the Bylaws arid RoWlatlons of the professional appraisal organizations with which the Appraises is affiliated. S. Neither all, nor any pan o1 the content of the report, or copy th woof (including conclusion as to the property value, the IdonthY of the Appakwr. professional designation, reference to any professional appraisal organlzalions, or the firm with which the Appraiser Is convected), shag be used for any purposes by anyone but the client specified in the report, the borrower it appraisal fes paid by same. approved financial Institution, any department, agency, or intrumontality of tho United Stoics any state or the District of Columbia, without IM previous written cement of the Appraises; not shag it be corwayod by anyone to the public through advertising, public relations, nava, sales, or other modia, without the written consent anti approval of the Appraiew. B. On all epprafeafe, subject to satisfactory completion, repaie, or alterations, rte appraisal ropor, and value conclusion we ontingom upon completion of the improvements In a workmanlike manner. ADDITIONAL CERTIFICATION: The appraiser further certifies wit agrees that: 1. This appraisal conforms to the Uniform Standards of Professional Appraisal Practice CUSPAP'I adopted by the Appraised Standards Board of the Appraisal Foundation, except that the Departure Provision of the USPAP does not apply. 2. Their compensation Is not contingent upon the reporting of a predetermined value or direction In value that favors the cause of the client, the amount of the value eetlmete, the attainment o1 a stipulated fir ull, or the occurrence of a subsequent avant. 3. Tho appraisal exelgmment was not based on a requested ndNmum valuation, a specilla valuation, a the approval of a ben. Note: The the additional certification in net approved or disapproved by Fteddle Mao o Fermis Mae. L one 27 March. 1898 Apprai ohs C Farrell I.IGY MY Ie. 4h JL1 p Iie4lse, ww ner.exss M Il�pe OrIt1111r MReen C4rAIw anal Des a 111 revw Mw raw 10040 JUL as HRA AGENDA APRIL 3, 1996 Ill '1 I `111 111 1 : 1 l' 1 1 • I I.1 -a l - l.: l' 71 ! -1 1 ll YI 1111 '117 . ".17,M.M.. 'l ll 1 I Beginning at 6:00 p.m. on April 1, HRA members Al Larson, Brad Barger, and Roger Carlson and the 9 -member MCP Boardmembers interviewed and heard presentations from four consulting firms: Dahlgren, Shardlow; Camiros; Hoisington Koegler; and Sanders, Wacker. Following the four presentations and after a brief discussion, the HRA and MCP members agreed and recommended the HRA, Lois Maus, and Bob Bowen meet with the consultant firm of Hoisington Koegler for the purpose of defining the scope of services and negotiating a not -to -exceed fee of the contract. TU eafter the prepared, negotiated contract to be presented to the HRA for approval to enter into a contract. HRA members, Maus, and Bowen scheduled a meeting date of Friday. April 5, 1:00 p.m., City Hall, to define the scope of services and to negotiate a not-to-cxceed fee. Page 1 HRA AGENDA APRIL 3. 1996 OTHER BUSINESS. a) Approval of monthly bills. See enclosed bills. CPage I KENNEDY a GRAVEN 200 South Sbmt Sova, Sutra 470 MW"OLh, MN 55402 (6121337.9300 CLIENT SUMMARY March 8, 1996 City of Monticello PO Box 1147 Monticello, MN 55362-9245 Through February 29, 19% MN1904)0041: Redevelopment - General 'tA Ge—' --SL c—o 't S 283.80 MN190400052: Monticello Community Pasters VV , k a C,— -T o $ 980.70 VKQ MN 190-00053: Master's Home Furnishings Demolition — $ 412.50 149A -TIS- Services T1` Services Rendered: Disbursements: Balance Due: 1dtmtra,trtI PrAArdtow 9% 4wourR dem ordtennd tf ,ed oMOtrropnt d tt� Batt» d S 1,670.90 S 6.10 S 1,677.00 KENNEDY 8i GRAVEN clued 200 Swch Shah Sn% Sulo 470 My enak MN 55402 1 (612) 337.9300 March 8, 1996 City of Monticello PO Box 1147 Monticello, MN 55362-9245 MN 190-00041: Redevelopment - General Invoice # 8417 Through February 29, 1996 For All Legal Services As Follows: 02/09/96 SJB Phone call with A. Larson re conflict question 0.25 32.25 02/13/96 SJB Phone call with O. Koropchak re redevelopment 0.20 25.80 TIF proposal 02/14/96 SIB Attend HRA meeting; review Presidents Home 1.75 225.75 documents Total Services: $ 283.80 1 Total Services And Disbursements: $ 283.80 KENNEDY a GRAVEN Chwtmed 200 kuth RNM Sues, Sults 470 I4 (612) 3 t7- 55402 (612) I37A300 March 8, 1996 City of Monticello PO Box 1147 Monticello, MN 55362-9245 MN190-00052: Monticello Community Partners Invoice # 8109 Through February 29, 1996 For All Legal Services As Follows: 02/01/96 JMS Intraoffice conference with S Bubul; review file for 0.90 120.60 preparation of articles of incorporation 02/02/96 JMS Prepare articles of incorponuion; phone call with 0.90 120.60 secretary of state 02/05/96 SJB Review articles of incorporation 0.50 64.50 02/06/96 JMS IntraofPce conference with S Bubul re articles 0.20 26.80 02/08/96 SJB Phone call with 0. Koropchak re new corporation 0.20 25.80 02/12/96 JMS Review issue for 501(c) application; memo to file 1.30 174.20 02/13/96 JMS Intraofiice conference with S Bubul: review rulings 1.40 187.60 re 501(c) organizations; memo to S Bubul re organization 02/13/96 SJB Intmofiice conference with J. Strommen re articles 0.50 64.50 of incorporation, 501(c)(3) issue 02/14/96 SJB Attend MCP meeting 1.50 193.50 Total Services: S 978.10 For All Disbursements As Follows: 02/12/96 Photocopies 0.60 02/13/96 Fax 2.00 Total Disbursements: $ 2.60 Total Services And Disbursements: S 980.70 KENNEDY at GRAVEN t» 200 south Skth So*% Sulu 470 MktntWdU, MN 55402 (612)377A300 March 8, 1996 City of Monticello PO Box 1147 Monticello, MN 55362-9245 W90-00053: Master's Home Furnishings Demolition Invoice # 8110 Through February 29,19% For All Legal Services As Follows: 0286/96 DJG Development agreement 02/26/96 SJB Phone call with O. Koropchak re demolition; TIF resolution; intraoffrce conference with D. Greensweig re same 0287/96 DJG Documents for Masters agreement 02/27/96 SIB Review and revise demolition agreement and resolution Total Services: For All Disbursements As Follows: 02/27/96 Fax Total Disbursements: Total Services And Disbursements: 1.50 150.00 0.60 77.40 1.30 130.00 0.40 51.60 $ 409.00 3.50 S 3.50 S 412.50 I_ KENNEDY at GRAVEN Choured 200 South Shah Suer, U tp 470 Mhvapo „MN 55402 (612) 337-9300 CLIENT SUMMARY March 8, 1996 Monticello HRA City Hall 250 East Broadway PO Box 83A Monticello, MN 55362 Through February 29, 1996 MN 195400004: Katanarek Acquistion S 416.50 Services Rendered: $ 414.00 Disbursements: $ 2.50 Balance Due: S 416.50 KENNEDY a GRAVEN awned 200 Soum Slab Spee% Uft 470 MkwajpcK MN S5402 v (612) 337.9300 March 8, 19% Monticello HRA City Hall 250 East Broadway PO Box 83A Monticello, MN 55362 MN195-00004: Katzmarek Acquistion Invoice k 8111 Through February 29,1996 For All Legal Services As Follows: 02/08/% SJB Phone call with O. Koropchak re condemnation; 0.40 54.00 metro to Corrine Thomson re same 02/09/% CHT Prepare resolution authorizing condemnation; letter 1.00 150.00 to o Koropchak 02/20/% CHT Phone call with O Koropchak; phone call with K 0.40 60.00 Helvey re quote 02/26/96 CHT Innaofce conference with S Bubul re 0.20 30.00 condemnation 02/28/96 CHT Phone call with O Koropchak 0.20 30.00 02/29/96 CHT Phone cull with title companies; letter to Wright 0.60 90.00 Title Total Services: S 414.00 For All Disbursements As Follows: 02/29/% Fax 2.50 Total Disbursements: S 2.50 Total Services And Disbursements: $ 416.50 KENNEDY a GRAVEN Chartered 200 South S6ab Sven, Supe 470 Km apolb, WN 55402 (612) 337.9300 February 19, 1996 City of Monticello PO Box 1147 Monticello, MN 55362-9245 MN 190-00041: Redevelopment - General Invoice !18009 Throe h January 31, 1996 For AIll Legal Services As Follows: 01/08/96 SJB Review RFP for downtown consultant 0.25 32.25 01/10/96 SJB Phone call with O. Koropchak re downtown; 4.00 516.00 research conflict question; attend HRA meeting 01/11/96 SJB Review and revise option letter 0.30 38.70 Total Services: S 586.95 Attorney Summary Stephen Bubul For All Disbursements As Follows: 01/10/96 Photocopies Total Disbursements: Total Services And Disbursements: 4.55@ 129.00/hr 586.95 4.00 S 4.00 f 590.95 a ASOURCE PUBLIC GROUP, INC. s Business Development & Finance Specialtan March 28, 1996 Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 STATEMENT Consulting Services --February 16, 19% through March 15, 1996 2-20-% LPK--Follow-up with Mark Erikkson, Talon Engineering 7 NET CHARGEABLE HOURS: .25 Net Chargeable Hours ® 590/Hour $22.50 TOTAL AMOUNT NOW DUE CURRE OVER 30 OVER 60 OVER 90 $22.50 TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS 4205 Lancaster Lane North* Suite 1100 0 Minneapolis, Minnesota S5441 0 (612) 5541919 0 (611) S%9211 Fax c>. March 28, 1996 Ms. 011ie Koropchah City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 Dear Ouie: t PUBLIC RESOURCE t GROUP, INC. t Business Development d Finance Specialists After a review of our records it has come to our attention that the City of Monticello paid the billing dated December 27, 1995 in the amount of $112.50 twice. Accordingly, Public Resource Group is crediting your account for the total amount of the overpayment which is $112.50 The attached is intended to provide a summary statement reflecting the total credit, less our billing of $22.50, which results in a remaining credit of $90. This remaining credit will be reflected on our next billing to the City of Monticello. Please call me at (612)550-7979 if you have any questions. Sincerely, PUBLIC RESOURCE GROUP, INC. cht Tnmc?i - v\o �� Sp\Sam LPK\dp d n- �O 4205 Lancaster lane North* Suite 1100 • Minneapolis, Minnesota 55441 • (612) 550-7919 • (612) 550-9221 Fax r March 28, 19% It PUBLIC RESOURCE t GROUP, INC. t Business Developmrnt d Finance Specialists Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 �14—n.0rul-DIZA 3-5-96 Overpayment of invoice Less Billing of March 28, 1996 $112.50 $90.00 4205 Lancaster Lane Nonh• Suite 1100 0 Mlnneapolb, Minnesota 55441 0 (611) 5%7979 0 (612) 550.9121 Fax