HRA Agenda 07-03-1996AGENDA
MON77CELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 3, 1996 - 7:00 p.m.
City Hall
MEMBERS: Chairperson AI Larson, Vice Chairperson Brad Barger, Tom St. Hilaire,
Roger Carlson, and Steve Andrews.
STAFF: 011ie Koropchak, Rick Wolfsteller, and kfi O'Neill.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 5 AND JULY 1, 1996 HRA
MINUTES.
3. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION FOR
THE H -WINDOW COMPANY.
4. CONSIDERATION TO APPROVE ENTERING INTO A LOAN AGREEMENT
BETWEEN THE HRA AND THE MCP.
S. CONSIDERATION TO DISCUSS USE OF TIF FOR TWO PROPOSED 1
PROJECTS:
I a) Lake Tools, Inc.
b) Fay -Mar Expansion
6. CONSIDERATION OF UPDATES
a) Fluth parcel
b) Katrmarek parcel
7. OTHER BUSINESS:
a) Monthly bills.
R. ADJOURNMENT.
11
NUNUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, lune 5, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson AI Larson, Vice Chairperson Brad Barger, and
Roger Carlson.
MEMBERS ABSENT: Tom St. Hilaire.
STAFF PRESENT: 011ie Koropchak and Jeff O'Neill.
STAFF ABSENT: Rick Wolfsteller.
GUEST: John Komerak, Redeveloper.
Merrlyn Seefeldt and Steve Andrews.
Chairperson Larson called the HRA meeting to order at 7:00p.m.
HRA members requested St. Hilaire revisit the minutes of May I relating to his
amendment request of the April 3 HRA minutes. Al Larson made a motion to
approve the May 1 and May 29, 1996 HRA minutes. Seconded by Brad Barger and
with no corrections or additions, the minutes were approved as written.
CONSIDERATION TO INTERVIEW THE TWO CANDIDATES FOR THE
VACATED HRA SEAT.
The HRA members interviewed each of the two candidates independently. The
candidates had submitted resumes. Both candidates would serve the HRA and
community well and both acknowledged their need to learn the functions of the
HRA and TIF. Seefeldt a current member of the IDC and local business owner for
years described herself as a detailed person and not a visionary person. Andrews a
current member of the Parks Commission and a local residents described himself as
enthusiastic and ready to serve a more active role within the community. Andrews'
current employment does not require business travel. Koropchak informed both
candidates to the process of appointment to the HRA, stating the HRA would
recommend one individual's name for City Council appointment on lune 10, 1996.
The expiration date for the tens of this vacated seat is December 1997.
Page 1
HRA MINUTES
JUNE 5, 1996
•. r r •. t• • .K Itl : NO • ulv �.O l•rr
Upon conclusion of the interviews, each HRA member verbally gave his
recommendation. Koropchak informed members of St. Hilaire's recommendation
for the vacated seat.
With his availability to attend a majority of the HRA meetings, Roger Carlson made
a motion recommending Steve Andrews to the City Council for appointment to the
HRA. Brad Barger seconded the motion and with no further discussion, the motion
passed unanimously.
IN
• n tic, y . • r.l: • ti : ; .n. rt • yr, y
The parcels identified in the CMR? Plan provide the HRA the flexibility to acquire
those parcels whether to be included within or outside a TIF District. The modified
budget of $2.750,000 allows the HRA flexibility to use the budget dollars for
payment of public costs. The public costs are subject to TIF restrictions and with
certain limitations. Additionally, the modified budget prevents add-on legal and
consultant expenses created each time the plan is modified. TIF District No. 1-20
established as a 25 -year Redevelopment District includes the Hanawalt and Banyai
parcels and the easterly City parcel. Revenues are sufficient to cover the costs
incurred by the HRA within the District. The Prairie West Analysis determined the
project would not occur within the foreseeable future without the assistance of TIF
and the City -owned parcel.
The modified plan and budgets meet the goals and objectives of the HRA and the
TIF District meets the Statutory requirements; therefore, Al Larson made a motion
to adopt the resolution modifying the redevelopment plan for CMRP No. I;
modifying the budgets of TIF District Nos. 1-1 through 1-1 K. establishing TIF District
No. 1-20 and approving the CMRP Plan and TIF Plans relating thereto. Brad Barger
seconded the motion and with no further discussion. the motion passed unanimously.
Page 2
HRA MINUTES
NNE 5, 1996
Redeveloper John Komarek informed HRA members that the results of the survey
indicated a piece of the easterly Katzmarek pawl was buildable. It appeared to
Komarek, the property to the west of Otter Crede was better suited for park land.
O'Neill felt it was too low and swampy and stated the 10% park land dedication
must be useable land. Additionally. O'Neill stated the on-site ponding must be
outside the flood plain and any ponding within the railroad ditch must be worked out
with Burlington Northern. Koropchak noted the need for the demolition and
restoration costs to include the capping of the well, removal of the septic drain, and
exploration of the parcel. Also, development of the Katzmare k parcel may require
a sanitary gravity system. The survey indicated the KatEmarek parcel was 1.49 acres
rather than the 2.6 acres described within the city assessment files. Komarek
proposed the construction of one additional single -housing unit or an additional
5150,000 market value. The potential for development of elevated bridges was
suggested.
Koropchak informed HRA members that the assumption and assignment agreement
assigns the purchase agreement between Katzmarek and Komarek to the HRA and
acknowledges that all parties agree the $145.000 includes acquisition and relocation
costs.
Komarek preferred a no third -party sale and said the survey cost was approximately
$2.700.
All parties present agreed the No. 1 objective of the Kaumarelk parcel was the
removal of blight. Secondly, members supported the increased tax revenue from one
additional housing unit therebye supporting the Council's recommendation to
maximize usage of the developable land. Next, the westerly .61 acres of the
Katzmarek parcel satisfies the City's 10% park land dedication requirement for the
Prairie West 2nd Addition of 4.77 acres. Lastly, development by Komarek provides
for a uniform development. Brad Barger made a motion adopting the resolution
approving the Assignment and Assumption Agreement with a first right of refusal
to John Komarek. Komarek agues to clean-up the entire Kaumarek pawl,
construct one additional housing unit, and dedicate the westerly portion to the city
for park land. Roger Carlson seconded the motion and with no further discussion,
the motion passed unanimously.
Page 3
HRA MINUTES
JUNE 5, 1996
6. CONSIDERATION TO AUTHORIZE EXECUTION OF THE LOAN
AGREEMENT BETWEEN THE HRA AND MCP.
With only three HRA members present and with the potential conflict of interest by
Al Larson as a member of both the HRA and the MCP, a quorum did not exist.
The item was tabled.
7
Koropcbak informed HRA members that all parties agreed to terminate the
electrical, egress and 'ingress, and stairway easements. According to record, only a
Common Wall Agreement exists between Lots 6 and 7, the Bloomdahls and Fluths.
Brad Barger made a motion to enter into two separate Wall Maintenance
Agreements with adjacent owners: the Johnsons and the Bloomdahls. Al Larson
seconded the motion and with no further discussion, the motion passed unanimously.
The adjacent owners have the right to enter the property for maintaining and
repairing the boundary wall. All costs of maintenance and repair shall be bom by
the adajcmt owners and the HRA shall have no obligation or liability.
g. CONSIDERATION TO APPROVE THE AMENDMENT TO THE PLEDGE
AGREEMENT FOR TIF DISTRICT NO, 1 -5 -
Upon the authorization of the HRA. Publicorp researched the economics of
refinancing any HRA TIF Bonds. TIF District No. 1-5 (Construction Five) appeared
to make the most economical sense to refmance. The original bond was issued in
the amount of $365,000 and was used for public and site improvements. The
principal outstanding is $130,000.
Based on a net gain between $3,000 to $5.000. Al Larson made a motion to approve
the Amendment to the Tax Increment Pledge Agreement by and between the City
of Monticello and the Housing and Redevelopment Authority in and for the City of
Monticello. Bred Barger seconded the motion and with no further discussion, the
motion passed unanimously.
Page 4
HRA MINUTES
JUNE S, 1996
Although some construction items appeared not completed as referenced by the
Chief Building Official, HRA members agreed the non -completed items were
relatively minor. Additionally, members felt the Mississippi Shores project was an
asset to the City of Monticello and some felt Presbyterian Horror, the owners, had
been jerked around enough. Al Larson made a motion waiving the need for a
Certificate of Occupancy and approving the Certification of Completion within the
Private Redevelopment Contract between the HRA and Presbyterian Homes, Inc.
Brad Barger seconded the motion and with no further discussion, the motion passed
unanimously.
]�sir:f;a:lsl;
a) HRA monthly bills - Authorized payment of bills.
b) HRA members received a printed copy of the TIF Surplus Cash Fund, June
balance.
C) HRA members received a copy of a letter from Robert Fisher, District
Manager, US Postal Service, relating to the proposed 6,500sq R carrier route
facility planned for construction along East 7 Street.
The HRA meeting adjourned at 9:00 p.m.
011ie Koropchak, Executive Director
Page 3
HRA AGENGA
JULY 3, 1996
3. Consideration to aoprove the Certificate of Completion for the H -Window Comnanv.
A. Reference and Bad=wmd:
Upon the H -Window's expansion in 1993, the HRA approved additional TIF
assistance (pay-as-you-go) in the amount of $112,000 NPV. The first $10,000
payment was due in August, 1995, upon completion of the site improvements.
However, the site improvements were not completed and therefore, the Certificate
of Completion not issued. Upon John Babcock's awareness of the approved TIF
assistance (following Steve Lemme's resignation), John came into the City Hall for
information on compliance. Because of the fall/winter season, the HRA agreed to
extend completion of site improvements until spring of 1996. The H -Window not to
receive their reimbursement payment of August, 1995. however, if completed by
spring of 1996 and the HRA having been submitted receipts or invoices of qualified
TIF expenditures, the February 1996 reimbursement of $10,000would be paid.
Mr. Babcock has subm�,tted the invoices or receipts. The Building Official gave final
inspection approval. The City Engineer reviewed the drainage elevations with
comments addressing identification of the lot lines and on-site drainage pond. The
HRA should consider the following action.
J
B. Altentative Action.
I. A motion is approve the Certificate of Completion for the Private
Redevelopment Contract between the HRA and the H -Window Company.
2. A motion to deny approval of the certificate.
3. Table any action.
C. Recommendation -
Recommendation is Alterative No. I.
D. Cu."w'ning Data,
Copy of the Occupany Permit and Certificate of Completion.
CERTIFICATE OF COMPLETION
The undersigned hereby certify that H -Window Company, a subsidiary of NAWCO Minnesota.
Inc.. a Minnesota corporation ("H -Window Company") has fully and completely complied with its
obligations under Article IV of that certain Contract for Private Redevelopment by and between the
Housing and Redevelopment Authority in and for the City of Monticello. Minnesota and H -Window
Company. dated , 1993, with respect to construction of the Minimum Improvements in
accordance with the Construction Plans on the property described as. Lots 1I and 12. Block 2. Oakwood
Irdusttial Part according to the recorded plat thereof in Wright County. Minnesota. and ane released and
forever discharged from its obligations to construct under the above -referenced Article IV.
Dated: 1996. HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA
By:
Its Chair
By:
Its Executive Director
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
On this _ day of July 1996. before me, a Notary Public within and for said County,
personally appeared Al Letsom to me personally known. who, being by me duly sworn, did say that he
is the Chair of the Authority named in the foregoing instrument; that Uro seal affixed to said insanonem
Is the seal of said Authority: that said instrument was signed and sealed In behalf of said Authority by
authority of its governing body: and said Al Larson acknowledged said instrument to be the free act and
deed of said Authority.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
On this _ day of July 1996. before me. a Notary Public within and for said County.
personally appeared olive Koropchak, to me personally known, who, being by me duly swop. did say
that she Is the Executive Director of the Audwrity named in the foregoing instrument that the seal affixed
to said Instrument is the seal of said Authority, that said iruwnxnt was signed and sealed in behalf of
said Authority by authority of its governing body: and said Olive Koropchak acknowledged said
insaumem to he the free act and dad of said Authority.
THIS INSTRUMENT DRAMED BY:
Kennedy & Graven, Chartered Notary Public
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 53402
(612) 337-9300
W0106762
IW 190.21
Jul -01-96 12:07A MSB &
ASSOC. INC.
350 Westwood Lake Office
eaal Wayzata BoulevardW426
Mlnne66428
apolle, MN
612-541-4800
(ef, Amdapr jam,
FAX 541.1700
June 29, 1996
Mr. John Babcock
H•W hidow Company
1324 Ease Oakwood Drive
Monticello. MN 55362
Re: Topographic Review
H -Window
1993 Building F tpansion
WSB Pmjeet No. 1010.02
rmar Mr. Babcock:
dh
612 641-1700 P.02
BA Mhu6udr. P.E.
Sm A mei.. P.l.
Pea L V&Ariq, PJ:.
OnneN W. Same. P.E.
Romw 0. am. P.E.
Thank you for your recent submittal of the topographic survey of your building site and adja"M lot.
As was suspectet the building expansion was developed In a manna which WvAurged Roan water into
a low area located on Lot 11. Block 2, Oakwood Industrial Park. The development plans du not provide
fur luno -term sturm water control and as such. the grading of the site will now to be revised in the (murg
to provide positive drainage for On site. For now.however, please superimpose your property boundary
an the topographic maps and resubmit those to us for our files. No additional work will be necessary
at this time. We will need to nddren drainage concerns as they arise or es a pan of your next building
expansion.
In addition, the building expansion was constructed an the existing property line betwon Lea 12 and 11.
Block 2. Oakwood Industrial Park. This fact. along with H -Window Company's decision to direct the
storm water runoff to this lot from the building has treated amne concerns for the City if Lot I I is ever
sold. Therefore, plem contact Jeff O'Neill at the City of Monticello to discuss the possible relocation
of the property line in order to comply with current zoning and building code regulations.
Pieau give ine a call at 541-48M if you have any questions or comments regarding this letter. Thank
you for your cooperation.
Sincerely,
WSB A Assoclaaa. Inc.
SA
Bret A. Weiss, P.E.
City Rinser
c: lel►O'Neill. City of Monticello
Juo Mcmhok. City of Monticello
Olive Knropchek, City of Monticello
I.j, .., . 0FAV6awa0Pub rr
HRA AGENDA
l JULY 3, 1996
MM I !1, ] ,,.11:11
A.
'Ibis agenda item has been tabled several times because of a lack of quorum. This
due in part because of HRA Commissioner Larson's need to abstain. It is my
understanding, the MCP approved entering into the Agreement at their June 26
meeting. Last December. 1995. the HRA approved an interest-free. unsecured loan
of $10,000 to the MCP. Term of loan one year. As of June 26, 1996, loan
expenditures totaled $5,541.39for a remaining balance of $4,458.61.
B. Alternative Action:
1. A motion to approve entering into the Loan Agreement between the HRA
and the MCP.
2. A motion to deny approval.
3. A motion to table any action.
C. $:
Recommendation is Alternative No. 1, this a housekeeping item.
D. CIUMrLining Data'
None.
C
HRA AGENDA
JULY 3, 1996
5. Consideration to discuss use of the TIF for two pmgazd pEWects,
a) and b). Two manufacturing projects are outlined and preliminary TIF
numbers estimated. 1'mwaiting suggestions from Mark Ruff relating
to possible assistance.
Relating to the Fay -Mar expansion, previously the HRA requested
the discrepancy between Schluender Construction and the General
Contractor be resolved. This a discrepancy between the bid and the
actual cost for work completed. The HRA said they would consider
additional TIF assistance upon the issue being resolved. Marquette
Bank has no further information and Mr. Musich is checking.
C
TIF
(, LAKE TOOL, INC.
8,000 SQ FT TIP -UP PANEL MANUFACTURING/OFFICE FACILITY.
CURRENT EMPLOYMENT OF 3, ADDITION OF 5 EMPLOYEES
$40,000 TO $50,000 WITHOUT BENEFITS
(DESIGN/T)OLMAKER/MOLDMAKER) AND I BOOKKEEPER (NO
EMPLOYEE LESS THAN $10.00 PER HOUR WITHOUT BENEFITS).
TOTAL OF 10 EMPLOYEES IN TWO YEARS.
EXISTING INDUSTRIAL BUSINESS.
ECONOMIC DISTRICT
8,000 SQ FT X $23.00 - $184,000
CAPTURED CAPACITY $8,376
TAX RATE 1996 1.10581
TAX INCREMENT $9,213.60
MARK RUFF
IF THE PROJECT MEETS THE "BUT FOR" TEST, WHAT IS YOUR
SUGGESTED LEVEL OF TIF ASSISTANCE, IF ANY? THE COMPANY IS
LOOKING AT TWO SMALL PARCELS OWNED BY THE CITY.
JLL 03 '% 03:57PM EH -ERS & ASSOCIATES
isMRS MW A880CM ft
It AD Eas IN PUBLIC FINANCE
July 3, 1996
TO: 011ie Koropchak
FR: Mark Ruff
RE: New Industrial Tax Increment Project
P.2/6
AttackLed are two tax inetetnent projections. The fust is for the Lake Tool project in which we assumed
an now economic development district We ate assuming that the property is not in grata acres or Big
pnsserva and also that we do not need to calculate the five year inflation value on the base value.
Assuming no inflation and S30,000 land market value, the present value of nine year of increment
would beS37,900at9.S%.
In general, wa do not recommend that the HRA assist now construction project for more thea ION, to
I S% of the project costs. This would amount to $20,000 to $30,000 in assistance, assuming that there is
sufficient qualified costs to justify the assistance or four to six years of increment. Please also note that
the HILA would need to make a 10% local contribution to avoid the LGAMACA penalty at
approximately S800 per year.
The Fay -Mer project is also attached and would amount to a present value of 572.700 over eight years of
inerernent.
Again. Fre recommend that less than 10% to 20% of project costs be derived from tax increment. We
again alar ,=ommend pay-as-you-go assistance rather than up -!tont assistance. Depending upon the
preview development agreement, it may be worthwhile to prepay the previous assistance level and offer
little or no assistance to the expansion. This also may be worthwhile because the HNA does have, corder
1995 legitiatrve amendments, the option to change the district from a LGAMACA penalty too local
contribution option. In exchange for this alternative, the district would need to be reduced by a term of 3
yeas. We can run the impact of this alternative if you decide to proceed.
Please all with any questions or comments.
OIt10Ea IN SAMMUPOW, MM ^NO CROOK/IELO, WI
2950 Norwest Comr. 00 gouty Seventh 6treo. Minmapelu. MN 88407-410D
T40ohena 51 2.139-B79t . FAX 61 2.339 -CLU
0710196
City of Monticello - Tu Incm Estimates - Like Tod, Mc.
T.I.F. CASH FLOW ASSUMPTIONS
Inflation Rate: 0.0000%
Pay -As -You -Go Interest Rate. 9.500%
Tax Extension Rate: 110.56116 Pay 96
RASE VALUE INFORMATION
Gross Percerd
Net Payable
Value tlsed
_ VaUe _ Yew
Parcel 777Ortgb W Market Value 30,000 100.00%
30.000 Pay 98
0 _ —0.00%
0
Total Original Market Value 30,000 _ _
— 30.00L. ay 96
Class Rate: C/I Property -$'00,000
4.6000% Pay 96
-$100,000
3000016
Original Tax Capacity:
900 Pay 96
rgUIECI' VALUE INFORMATION
Type of Tax Increment District
Type of Development:
Number of Units'
Number of Square Feel:
New Estimated Market Value On Jan, 2, 1997.
Final Market Value of land and Build! ft:
Project Clan Rate CII Propwiy -$100,000
-$100.000
Economic Dsveloprrwra
O6ioefivarahouse
Additional Estimated Tax Caps" on Jan. 2. 1967•
ToW Project Tax Capacity at Completion:
Projoct Tun Per UrAlSquare Fool.
Assessols Markel Value Per UNUSQuae Fool
Pro(ed Total Texas for Estimate Purposes:
Annual Tu Increment Expected at Fro Value:
SUMMARY INFORMATION
Bross T 1. CMy City
Nal T.I.
In Pro(ed Adh'b __ PodYg^
To Projed
Future Value: 73,090 (7,309) 0
65,781
PressM Value: 42,1116 (4,212) o L
" _117 mwl
0
6.000
214,000 Pay 98
214,000 Pay 98
4.6000%
3.0000%
_6,2" Pay 96
6.244 Pay 96
111 14
$2675
9.116 Pay 98
7.308 Pay 98
–<– Estimate
Poet
F
PO
m
w
MCI00-02 RsPwa W Prakwa 1111115 LAKE 1
O710Va0
City of Monticello - Tat lr rr
EsOmaln - Lake Tod• Inc
Pope 2
TAX INCREMENT CASH FLOW
Ooi
Project
Captured Semi -Annual
Admin Send-Awwal
City
Pay -As-
NPV of
IPERIODBEGINNING
Tax
Tax
Tex
Grose Tax
at
Net Tax
Poolup
You -Go
PAYG
PERIOD ENDING
Yrs Nth.
Yr_.Capa
oty
(apadty_
Capacity_
Increment
10.00%
Increment _
__ 0.001(,
Note
9.50%
Yra. IAh,_
Yr
0.0 08-01
199
900
_ _
900
0
0
0
0
0
0
_
0
Il
0S 02-01
1997
• 0.5 02-01
1987
900
BOD
0
0
0
0
0
0
0
01
0 08.01
1997
1A 08.01
1997
900
900
0
0
0
0
0
0
0
0
1.5 02.01
19981
1.5 02-01
1998
900
8,244
0
7,344
4,081
(409)
3,854
0
3,654
3,035
20 08-01
1998
20 06-01
1998
900
8,244
0
7.344!
4,061
(408)
3,651
0
3,654
5,933
2.5 02-01
1999,
25 02-01
1999
900
8,244
0
7,344
4,061
(406)
3,654
0
3,654
8,899
3.0 08-01
1999
3008-01
1699
ODD
8,244
0
7,344
4,061
(408)
3,651
0
3.654
11,340
3.5 02-01
2000
3502-01
2000
900
8.244
0
7,344
4,061
(406)
3,851
0
3.854
13.861
40 0801
2000
40 08-01
2000
800
8,244
0
7.344
4,061
(408)
3,654
0
3.654
18.268
4.5 02-01
2001
4502-01
2001
900
8,244
0
7,344
4,061
(408)
3,654
0
3.654
18.588
5.0 0B-01
2001
5008-01
2001
90D
8,244
0
7,344
4.061
(406)
3.654
0
3,654
20.759
5.5 02-01
2002
5502-01
2002
900
8,244
0
7,344
4,061
(406)
3,651
0
3.654
22.853
8.0 08.01
2002
0 D 08-01
2002
900
8,244
0
7,344
4,061
(408)
3,654
0
3.654
24,852
6.5 02.01
2003
65 02-01
2003
900
8,244
0
7,344
4,061
(405)
3.654
0
3,654
26.761
7.0 08-01
2003
7008-01
2003
goo
8.244
0
7.344
4,081
(406)
3,654
0
3,854
28.583
75 02.01
2004
75 02-01
2004
900
8,244
0
7.344
4.061
(405)
3,654
0
3,854
30.322
8.0 08 -DI
2004
6008-01
2004
goo
8.244
0
7.344
4,061
(408)
3,654
0
3.654
31,982
65 02.01
2005
55 02-01
2005
ODD
8.244
0
7.344
4.061
(408)
3,654
0
3.654
33,587
90 0801
2005
90 08-01
2005
goo
9,244
0
7.344
4,061
(4081
3,654
0
3.654
35.081
9.5 02.01
2008
9.5 02-01
2006
900
8.244
0
7,344
4,061
(406)
3,654
0
3,654
36,525
100 08.01
2008
10,0 08-01
2008
ODD
8,244
0
7,344
4,061
(406)
3,654
0
3,654
37,904
10.5 0201
2007
lotals
73,090
(7,309)
65,761
0
65,781 _
Preawnl Vnluns
42,116
(4.212)
37,904
0
37,904_
mU)
v
n
m
14C 100-02 Prspaw4 by Psa4oesa tic IAIal-1
EXISTING THF DISTRICT NO. 1-17
FAY -MAR. RON MUSICH
PLAN APPROVAL AUGUST. 1994
REQUESTED CERTIFICATION IN MARCH, 1995. NO CONFIRMATION RECEIVED
ON THE ORIGINAL PROJECT OF 15,000 SQ FT
OFFICE/MANUFACTURING THE EMV IS $400,000, ESTIMATED
ANNUAL INCREMENT OF $17,253. THE COMPANY NOW HAS A
TOTAL OF 30 JOBS. TIF ASSISTANCE OF 550,000 UP -FRONT FOR
LAND ACQUISITION.
PLANNED EXPANSION IN 1996. IS ADDITIONAL TIF ASSISTANCE
ADVISEABLE? WOULD BE FOR SITE IMPROVEMENTS ONLY*►
CREATES AN ADDITION OF 20 MORE JOBS. 12,000 SQ FT
ADDITION TO EXISTING BUILDING.
12,000 SQ FT ® S23.00 = $276,000
CAPTURED CAPACITY = $12,696
TAX RATE 1996 1.10581
TAX INCREMENT $14,039
THANKS, OLLIE
NEED BY WEDNESDAY JULY 3.
I
071039E Cey 0 Monbcello -Tax kx rN Esematea - Fay -liar Pope 1 .
T.I.F. CASH FLAW ASSUMPTIONS
Inflation Rate:
Pay -As -You -Go Interest Rate
Tax Extension Rate'
BASF VALUE INFORMATION
Gross Percent
Volae Used
Parcel a 177 Or4onal Market Value 0 100 00%
0 0 0D%
Total Original Market Vakm 0
Class Ra'sCil Properly 4100,000
-1100.000
Original Tax Capadty
FAOJFCT VALOR INFORMATION
Type of Tax blcremed District'
Type of Devalopmeru:
Ntmber of Unae'
Number of Square Feel
Now Estmaled Madot Value On Jan 2. 1997:
Final Market Value of Land and Building:
Propd Claes Rate: CJI Properly .5100,000
Stoo,om
Pdditunal Estimated Tax Capacity on Jan 2 1997:
Total Propel Tax Cap" at Completion'
ProAd Taxes Pat UrAlSquare Fool.
Asseuoe's Markel Volae Por Unit/SQuore Foot
Project Total Taxes for Estlmaae Purposes:
Annual Tax Increment Expected at Ft/ Value:
SUMMARY INFORMATION
Gross T.I Glty City
Net T.1.
In Projod Adm. Pookng
To Ro-.jocl
RAure Value 134,715 (13,478) 0
121,306
Prosont Value 80.805 (1,087) 0 t
71,772
0 000016
9500%
110581% Pay96
Net Payable
Value Year _
0 Pei -9e
0_
0 Petr 96
4.600016 Pay 98
3 DDD(1%
0 Pay 96
Economic Devolopmem
OfflceANarehouse
0
12,000
27e,000 Pay 9e
27_6 _000 Pay 98
•.800016
3.0000%
15,236 Pay 98
15,238 Pay 98
31 40
$23 00
16,518 Pay 98
15.163 Pay 98
<-- Estanale
WC 1DD-02 Pillared by PWAWAWP inc FAYMAR
07103196
(PERIOD BEGINNING
Yrs. MOi_ Yr.
O.D 08-01 1996
C.5 02.01 1997
1.008-01 1997
1.502-01 1998
2.0 08-01 1996
2.5 02-01 1999
3.008-01 1999
3.5 02.01 2000
4.008-01 2000
4.5 02-01 2001
5.0 DS -01 2001
55 02-01 2002
60 D8-01 2002
6.5 02-01 2003
7.0 08-01 2003
7 5 02-01 2004
8 0 0"1 2004
85 02.01 2005
9008-01 20D5
MIC100-02 Pupated by PIbtlydrp an. rAymAR
City of Montioasu - Tsr Ir,
sa ErtfmMs - Fay.74ar
Pape 2
O
TAX INCREMENT CASH FLOW
Orta
Proj
Captured Sem Mnual
Admin SemkAmwol
City
Pay -Ar
IPV of
Tax
Tax
Tax
Gross Tax
a1
NM Tax
Pooling
You -Go
PAYG
PERIOD ENDING
Capadty_
Capacity _ _
_
C adty
Inuement
10.00%
Increment
0.00%_
Note _
950%
Yrs. _Mt
Yr.
0
0
0
0
0
0
0
0
0
0
0.5 02-01
1997
0
0
0
0
0
0
0
0
0
0
1.0 08-01
1997
0
0
0
0
0
0
0
0
0
0
1.5 02.01
1998
0
15236
0
15,236
6,424
(842)
7,582
0
7,582
6,297
2.0 06-01
1998
0
15,236
0
15,236'
8,424
(842)
7,582
0
7,582
12,309
2.5 02-01
1099
0
15,236
0
15,236
8,424
(842)
7,582
0
7,582
18,045
3.0 08-01
1999
0
15,236
0
15.236
6.424
(842)
7,582
0
7,582
23.527
3.5 02-01
2000
0
15.236
0
15,236
8.424
(842)
7,562
0
7,562
28,757
4.0 48-01
2000
0
15.236
0
15,236
8,424
(842)
7,582
0
7,562
33,750
4.5 02.01
2001'
0
15,236
0
15,236
8.424
(842)
7,582
0
7,582
38,517
5.0 08-01
2001
0
15,236
0
15,238'
6.424
(542)
7,552
0
7.582
43,068
5.5 02.01
2002
0
15,236
0
15,2381
6,424
(642)
7,582
0
7,582
47,412
6.0 08.01
2002'
0
15,236
0
15,2386,424
(042)
7,582
0
7,562
51,559
6.5 02-01
2003
0
15,236
0
15.236
6,424
(842)
7,562
0
7,562
55.616
7.0 08.01
2003
0
15,236
0
15,236
6.424
(842)
7,582
0
7,582
59.296
75 02 -DI
2004
0
15,236
0
15,2361
6,424
(842)
7,562
0
7,582
62.908
8.0 08-01
2004
0
15,236
0
15,236
6.424
(842)
7,582
0
7,582
66,351
05 02.01
2005
0
15,236
0
15,236
8,424
(1142)
7,592
0
7,582
69,639
90 DB -01
2005
---0 _
115,236
0
15_2 36
8,424
(642)_
7,582
0
7 582
72,779
95 02-01
2008
Totals
_
134,785
(134 78)
121,308
0
121,708
_
Preserll Values
._ __ I
60,685
(6i 87)
72,779
0_
72,779
MIC100-02 Pupated by PIbtlydrp an. rAymAR
HRA AGENDA
l JULY 3, 1996
6. Consideration of LaxWes
a) Fluth parcel - It appears that the closing may take place July 2, 1996.
The June 5 authorization by the HRA to enter into two individual wall maintenance
agreements was not carried out and the agreements not exeaaed per the advise of
Attorney Bubul.
The HRA will take title of the parcel upon the previous ovrnm between I.ots 8 and
9 resolving who's liable for repair of the common wall and stairway. With the
attorneys representing Mr. Fluth and Mr. Johnson being out -0f -town that issue took
longer than expected to resolve.
Only the staircase easement and sewer and water line easement will remain.
Enclosed is a copy of the closing checklist.
b) Katzmarek - The resolution adopted by the HRA on June 5 approvingnihe
assumption and assignment agreement between the HRA. Ummarek, and Cedrus
Creek was net executed.* To prevent the HRA from any liability of the Ketrmarek
parcel, Komarek will purchase the parcel from Kaamarek, cleanup the entire parcel,
and dedicate the westerly portion to the city for park lend. This upon platting of the
2nd Addition. The HRA will reimburse Komarek for the 3145,000upon closing of
all parcels. Katzrnarek has executed the acknowledgement of satisfaction of
obligation to provide relocation and related service. A couple of title issues remain
relating to the Hanwalt and Banyai parcels.
Closing may take place July 1.
C
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
RESOLUTION NO. 96-7
APPROVING AN ASSIGNMENT AND ASSUMPTION AGREEMENT
AMONG JOHN KOMAREK, THE AUTHORITY AND ROBERT J. KATZMAREK
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Monticello (the "Authority') is a housing and redevelopment development authority
duly constituted and organized under law, with all of the powers enumerated in
Minnesota Statutes, Section 469.001 to 469.047 (the "Act"); and
WHEREAS, the Authority is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota
Statutes, Section 469.002, subdivision 16 and 14; and
WHEREAS, the Authority adopted a redevelopment plan (the "Redevelopment Plan")
in an area in the City of Monticello identified as Central Monticello Redevelopment
Project No. 1(the "Project Area") in November, 1982; and
WHEREAS, changes in the public and private improvements proposed to be
constructed within the Project Area occurred and necessitated adopting subsequent
modifications to the Redevelopment Plan which were approved by the Authority and
adopted by the City Council of the City of Monticello in the respective years of 1983,
1984, 1985, 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995 and 1996; and
WHEREAS, the Plan, as modified, contemplates the acquisition of certain real
property (the "Property") which is located in the Project Area and which is more
particularly described below in this resolution; and
WHEREAS, by resolution approved FEBRUARY 14 , 1996, the Authority authorized
acquisition of the Property by eminent domain or negotiation; and
WHEREAS, subsequently the owner of such Property entered into a purchase
agreement with John Komarek dated March 29, 1996 (the'Purchase Agreement*); and
WHEREAS, John Komarek desires to assign his rights as buyer under the Purchase
Agreement to the Authority; and
WHEREAS, the Authority has reviewed a certain Assignment and Assumption
Agreement among John Komarek, the Authority and the Robert J. Katzmarek ("the
Assignment") providing for assignment of the Purchase Agreement by John Komarek
to the Authority.
HRA Resolution 96-_7
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Monticello as follows:
It is necessary to acquire the Property as described the Assignment in order for
the Authority to carry out the purposes of the Plan, as modified, and the Act.
2. The Assignment is hereby approved, and the proper Authority officials are
authorized and directed to execute the Assignment on behalf of the Authority
and to take all actions necessary to acquire the Property in accordance with the
Assignment and the Purchase Agreement.
Adopted by the Housing and Redevelopment Authority in and for the City of Monticello
this 6th day of June, 1996.
ATTEST:
Executive Director
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS AGREEMENT made on or as of the day of June, 1996, by and
among John Komarek (the "Developer"), the Housing and Redevelopment Authority
in and for the City of Monticello (the "Authority"), and Robert J. Katzmarek (the
"Seller").
WHEREAS, the Seller and the Developer entered into a Standard Purchase
Agreement dated March 29, 1996 (the "Purchase Agreement"), providing for
acquisition by the Developer from the Seller of certain property described as
follows:
A tract of land in Lot B of the South Half of Section 3, Township 121,
Range 25, described as follows: Begin at the intersection of the
southerly line of Trunk Highway No. 152 and the north line of said
Lot B; thence southeasterly along the said southerly line of Trunk
Highway 152 a distance of 315 feet; thence deflect right 90° for a
distance of 205.7 feet to the north line Great Northern railway right-
of-way; thence Northwesterly along said railway right-of-way, a
distance of 534.9 feet; thence Easterly to the point of beginning,
containing 2.08 acres more or less.
PID 155-500-033403
Property Address: 1400 West Broadway
(hereafter referred to as the "Property"); and
WHEREAS, the Developer wishes to assign his rights and obligations under
the Purchase Agreement to the Authority, subject to consent of the Seller.
NOW, THEREFORE, in consideration of the premises, the parties hereto
mutually agree as follows:
1. The Developer assigns all his right, title, and intemat in the Purchase
Agreement to the Authority.
2. The Authority assumes all rights and obligations of the Developer
under the Purchase Agreement.
3. The Seller consents to assignment by the Developer of his rights under
the Purchase Agreement as described herein, and further agrees and represents to
the Authority that the purchase price to be paid to the Seller by the Authority
under tho Purchase Agreement equals or exweds the fair market value of the
Property together with all costs of relocation and related services payable by the
KATZ%W.AGa: 6/6ft page I
C
Authority under Minnesota Statutes, Sections 469.001 to 469.047 and Chapter 117
(the "Acta"). The Seller agrees and understands that, by payment of the purchase
price, the Authority has fully satisfied its obligations with respect to relocation
under the Acte.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives.
w T&AA2.Aca: save
JOHN KOMAREK
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
Its Chair
By
Its Executive Director
ROBERT J. KATZMAREK
Pape 2
MC100.05
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
June 13, 1996
CITY-WIDE PROFORMA
5/1/96 MTR Work on pro tonna
5/20/96 DO TIF budgets
Total Due This Month:
Prevbus Balance:
6/6/96- Payment • thank you IS ST). S o
Total Balance Due:
yy ° lU S�1.so
V
Hours Amount
0.75 78.75
1.50 157.50
2.25 $236.25
$577.50
c
($577.50)
$236.25
\ ,qV`a. Sp
S'l . S o
�.S o n °O
VV, ,-1 ^,-, ��n
y.oi -'to . _0 C�x-�/
I
Monticello HRA
$682.50
6/8/98• Payment - thank you
PO Box 1147
Total Balance Due:
$2,205.00
Monticello MN 55362-9245
June 13, 1996
MC100-03 REDEVELOPMENT DISTRICT
511/96 MTR Meeting on Komarek project
Hours
2.25
Amount
236.25
5/3/96 MTR Discussions on acquisition issues
0.50
52.50
5!7/96 DJF DmUV - TIF Plans and Documents - ad*"
0.25
26.25
519/96 MTR Work on Monticft documents for new distrix
1.00
105.00
DJF Drafting - TIF Pians and Documents = oD comadsh letter, ca for
1.75
183.75
hearing
5/13196 MTR Meeting with City
2.00
210.00
5/16198 MTR Work on tax Increment plan
4.00
420.00
5/17/96 DJF Drafting - TIF Plan
1.25
131.25
5120/98 DJF Drafting - TIF Plans and Documents - fiscal implication letters
2.25
236.25
5!28196 MTR Meeting at City
4.00
420.00
5/30/98 DJF Drafting - TIF Pians and Documents - resoUions and hearing
1.75
183.75
notice
Total Due This Month: 21.00 $2,205.00
Previous Balance:
$682.50
6/8/98• Payment - thank you
(5682.50)
Total Balance Due:
$2,205.00
KENNEDY at GRAVEN
a,erre w
200 SWA Shah Sven, Suite 470
f Mirnupok MN 55402
(612)337-9300
CLIENT SUMMARY June 12, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
- ���Through May 31, 1996
MN 190-00041: Redevelopment -General $ 216.85
eV1;r_, cg..,& -+AJ 190-00052: Monticello Community Partners , i� Q U'.—, .-.-, $ 86.16
H lP p,,..J�uIIJ 190-00053: Master's Home Furnishings Demolition $ 780.45
MN 190-00054: Prairie West Project (Komarek) '� I c� �� l - �O $ 5,074.09
Services Rendered: s 6,026.30
Disbursements: $ 131.25
Q Balance Due: $ 6,157.55
tdIdaufmo•wwdr
Got
e(prw� d
KENNEDY 8i GRAVEN
aid
200 South Sly Sana, Sulu 470
f MW*jvok MN 55402
t (612) 337-9300
June 12, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice li 9920
Through May 31, 1996
For All Legal Services As Follows:
05/01/96 SJB Attend HRA meeting m general matters 1.25 161.25
05/02/96 SJB Phone call with O. Koropchek re HRA meeting 0.40 51.60
follow-up matters
Total Services: $ 212.85
For All Disbursements As Follows:
05/06/96 Fax - 4.00
Total Disbursements: S 4.00
Total Services And Disbursements: S 216.85
- -- - - - - -- -
KENNEDY at GRAVEN
Uhamed
200 Swd, Stam Sam U t 470
MN 55402
l (612) 337.9300
e�;�
June 12, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
Monticello
MN 190-00052: Community Partners
Invoice # 9922
Through May 31, 1996
For All Legal Services As Follows:
05/06/96 Dlt3 Revise loan agreement
0.80 80.00
Total Services:
$ 80.00
For All Disbursements As Follows:
05/06/96 Photocopies
4.60
05/06/96 Postage
1.56
Total Disbursements:
$ 6.16
Total Services And Disbursements:
S 86.16
KENNEDY Jit GRAVEN
u.uroa
20o South Shah SWM Uft 470
Mlmejpok MN SS402
(612)577.9300
June 12, 1996 �Q
City of Monticello cl
1147 t11 Ov
Monticello,
ello, MN 55362-9245
MN190-00053: Matter's Home Furnishings Demolition
Invoice k 9923
Through May 31, 1996
For All Legal Services As Follows
05/03/96 SJB
Phone call with 0. Koropchak and B. Larson re
1.25
161.25
05/06/96 SJB
Fluth acquisition; revise purchase agreement
Draft HRA resolution re Fluth acquisition; phone
0.60
77.40
call with 0. Koropchak re agreement
05/07/96 SIB
Review Purchase Agreement addendum; phone call
0.20
25.80
with R. Wollsteller re same
05/24/96 SJB
Prepare for closing; phone call with 0. Koropchak
0.50
64.50
re same
05/30/96 SJB
Phone call with 0. Koropchak; review title
2.50
322.50
commitment; conference with 0. Koropchak re
same; draft dile letter
05/31/96 SJB
Phone call with B. Larson and 0. Koropchak re
1.00
129.00
title matters
Total Services:
$
780.45
Total Services And Disbursements:
S
780.45
KENNEDY at GRAVEN
Cbneed
SJB
200 South SIxth Saes, Sub 470
1.25
Mnnewk MN 5S402
(612) 337-9300
05/13/96
SJB
/�NIV
0.50
64.50
June 12,19%
1 �
City of Monticello
`
PO Box 1147
05/14/96
Monticello, MN 55362-9245
Phone call with 0. Koropchak and M. Ruff re
MN 190-00054: Prairie West Project (Komarek)
64.50
Invoice # 9924
Through May 31, 1996
For All Legal Services As Follows:
05/01/96
SJB
Attend HRA meeting re Prairie West
1.25
161.25
05/13/96
SJB
Review title matters; phone call with O. Koropchak
0.50
64.50
re TIF
05/14/96
SJB
Phone call with 0. Koropchak and M. Ruff re
0.50
64.50
project terms
05/15/96
SJB
Review deal terms and purchase agreements; phone
0.75
96.75
call with 0. Koropchak re same
05/16/96
DJG
Draft development contract
1.60
160.00
05/16/96
SJB
Intraoffice conference with D. Greensweig re
0.60
77.40
contract; phone call with 0. Koropchak re same
05/17/96
DJG
Draft Development Contract
4.60
460.00
05/17/96
SJB
Phone call with 0. Koropchak re status; phone call
0.75
96.75
with 0. Koropchak re property issues; phone call
with M. Ruff re same
05/19/96
DJG
Draft Development Contract
4.30
430.00
0520/96
SJB
Phone calls with M. Ruff and 0. Koropchak re
1.50
193.50
project terms; intraoffrce conference with D.
Greensweig re contract
0520/96
DJG
Dmfs development contract; intraoffice conference
12.00
1,200.00
with Steve Bubul re development contract
0521/96
DJG
Draft development contract
5.10
510.00
0521/96
SJB
Review and revise contract; draft resolution and
2.50
322.50
letter; phone call
0522/96
SJB
Review contract; phone call with 0. Koropchak re
0.75
96.75
same
0523/96
SJB
Phone call with 0. Koropchak and R. Wolfsteller re
City
0.50
64.50
property and related issues
0524/96
SJB
Conference wtih O. Koropchak re contract
0.60
77.40
0528/96
SJB
Attend Council meeting
4.00
516.00
0529/96
SJB
Attend HRA meeting
2.50
322.50
05/31/96
SJB
Review TIF documents
0.30
39.70
Total Services:
$
4,953.00
Continued on Next Page
KENNEDY at GRAVEN
cthwremd
200 south Sbih SaM Sub Oro
M� MN SM2
City of Monticello
Page 2
MN 190-00054: Prairie West Project (Komarek)
For All Disbursements As Follows:
05/21/96
Messenger Service - Federal Express
28.85
05/21/96
Photocopies
47.00
0528196
Mileage expense (SJB)
22.62
0529/96
Mileage expense (SJB)
22.62
Total Disbursements:
S 121.09
Total Services And Disbursements:
S 5,074.09