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HRA Agenda 08-21-1996
AGENDA - MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, August 21,19% - 7:00 p m, City Hall MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St. Hilaire, Roger Carlson, and Steve Andrews. STAFF: Ride Wolfsleller, Jeff O'Neill, and 011ie Koropdrak. GUEST: Attorney Steve Bubul. I . CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE AUGUST 7, 1996 HRA MINU'T'ES. 3. CONSIDERATION TO DISCUSS AND ADOPT 1997 HRA GOALS AND OBJECTIVES AND BUDGET RELATING THERETO: a) Goals and Objectives b) Budget: TIF Surplus Levy 4. CONSIDERATION TO REVIEW THE COUNTER-OFFER FROM JAY MORRELL RELATING TO THE TAX INCREMENT SHORTFALL. S. OTHER BUSINESS: a) Fate of special HRA meeting of August 13, 1996. b) Payment for completion of Task II, Hoisington Koegler Group, Inc. c) Monthly bills. d) Other 6. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, August 7, 1996 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St. Hilaire, and Steve Andrews. MEMBER ABSENT: Roger Carlson. STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. GUEST: Mark Ruff. Pubhcorp. Inc. Jay Morrell, M&P Transports, Inc. Chuck McCamy, M&P Transports, Inc. Brad Johnson, Lotus Realty Services Barry Fluth. Redeveloper I ALL ORnFR Chairperson Larson called the HRA meeting to order at 7:03 p.m. Brad Barger made a motion to approve the July 3, 1996 HRA minutes. Seconded by Tom St. Hilaire and with no corrections or additions. the minutes were approved as written. CONSIDERATION TO HEAR A PRESENTATION BY THE PROPERTY OWNER RELATING TO THE SHORTFAI --L OF THE TIF GUARANTEE Jay Morrell stated he was not the sole liable party for the $12,517.93 tax increment shortfall. He informed HRA members that the John Plaisted/Jay Morrell Partnership dissolved and was replaced by an ownership of individuals (Plaisted/MorreU), tenants in - common. Later, he became the sole owner. Secondly, at the May 1989 Board of Review, the partnership requested the market value of the two parcels be reduced to S5M.000, the true value or purchase price. Next, the minimum TIF Guarantee of $28.000 was for District Nos. I and 4 with expiration dates in 1991 and 1994, respectively. Lastly, the 1989 payment of 54,479.27 was an over -payment. Morrell offered a shortfall settlement of S1.498. 1 S from Morrell with a release of the property and S450.64 collectable from John Plaisted. HRA members noted the two Agreements were recorded at the County and upon a title search necessary for hank financing the agreements would be discovered. Mark Ruff HRA MINUTES AUGUST 7, 1996 stated Assessment Agreements don't go away, they run with the property. Wolfsteller informed members the original Assessment Agreement had a minimum value of 5879,000 and the new agreement replaced the original Assessment Agreement with a reduced mum value of $700.000 and an annual TI Guarantee of $28.000 which was necessary to meet the TIF obligation for retirement of the debt service. The $4.479.15 was not an over -payment, the County made an error in calculation of the 1989 Tl which was included m the 1993 total. Brad Barger suggested pro -rating the $12.517.93 shortfall over five years. Mr. Morrell declined. Chairperson Larson thanked Morrell for his presentation and said the HRA would discuss his offer of SI.498.15 with release of the property. HRA members agreed in principle that the property owner owed the shortfall. Members also recognized the owner had not received annual notices of the shortfall, the county miscalculated the increment, and the two parcels constituted two different TIF District expiration dates. HRA members acknowledged their disappointment of no response from Mr. Morrell from previous written notifications. K:oropchak noted Attorney Bubul's three alternatives: File Claim with Plaided, Small Claim Court, or split the difference. Attorney Bubul feh the best alternative was to split the difference as the HRA did not have a strong case. Tom St. Hilaire made a motion to split the S 12.517.93 TI shortfall between the HRA and Mr. Morrell. Upon payment in the amount of $6.258.96, the HRA agreed to release the two recorded Agreements between the HRA and John Plaisted. Recorded Document Nos. 461125 and 461126. The second one-half payment of $6.258.96 to be billed to John Plaisted. Al Letson seconded the motion and with no further discussion, the motion passed 4-0. A letter relating to the HRA's motion to be drafted and mailed to Morrell. CONSIDERATION TO HEAR A PRESENTATION OF A CONCEPTUAL PLAN FOR A POSSIBLE REDEVELOPMENT PROJECT Brad Johnson. Lotus Realty Services, introduced himself as representing Barry Fluth. owner of the Monticello Mall. Mr. Johnson informed HRA commissioners he has done redevelopment projects in the communities of Chaska. Chanhassen. and Duluth and previously has met with Jeff O'Neill and 011ie Koropchak . His redevelopment projects are mixed -used projects consisting of restaurants, hotels, and housing. He sees himself as the doer, finding a solution for a community with a vision. Mr. Johnson presentation to the HRA was a conceptual plan for possible redevelopment of the Monticello Mall. Stating, of the 10.0(91 sq R facility approximately 35,(100 sq R is leased. Amtual taxes generated are currently about $50,000 with the potential of $145.000 annually. The mail is underutilized. outdated, and competes with the clothing markets of St. Cloud and Maple Grove. He presented three options: Big box user such as Best Buy or Pet -Mart, big box user with small ramex retailers, or a grocery store. A HRA MINUTES AUGUST 7, 1996 typical Cub store is about 55,000 sq ft. Some interest has been expressed by Super Value and Rainbow; however, in order for a second grocer to successfully compete the standard guide for the trade area population is approximately 25,000. Mr. Johnson's concept plan is the redevelopment of the existing mall and requests TIF assistance for demolition and relocation costs. The concept plan proposes the demolition of the existing mall and the construction of a new 52,000 sq ft grocery facility as the anchor with 20,000 sq ft of annex retail space. A grocery store has a higher value than a clothing store. Box users and hardware stores are generally visited once or twice a month, furniture stores are visited maybe once every three years, and grocery stores are Visited one to three times a week. Grocery stores move retail centers. Big boxes require a 20 ft ceiling. Monticello's existing grocery store is the hub of the community states Johnson. The question arises, is there a need for two? Mr. Johnson sees the redevelopment of the mall as an opportunity for Monticello and a complement to the downtown /riverfront plan under study. The grocery store could become an anchor to the downtown with Walnut Street as the main entrance. TIF revenues could provide an opportunity to assist with redevelopment of the downtown/riverfront plan. With Monticello's existing grocer looking to t:xpand in the near future and no available land to expand at the existing site, an opportunity exists to keep the hub of the community within the area boundary of the plan under study. Based on preliminary numbers. Mr. Johnson estimated annual taxes in the amount 5150,0(9). A request of S3(X),(0() to $400,000 pay-as-you-go TIF assistance for demolition and relocation costs was mentioned. With a 25 -year Redevelopment District, a 560,000/540,00() aminal tax increment split was suggested. Time frame outlined was construction commencing March 1997 and occupancy October 1997. Mark Ruff, Publicorp, informed HRA members that after running preliminary estimates it appears sufficient tax increment is generated to assist with redevelopment. Next, two tests must be confirmed. First. does the project meet the legal test of substandard for creation of a RedevelopmentDistrict? If for example, it costs 54,000.0(X) to construct a new structure, the cost to fu up the existing structure must be more than 15% or 5600.000. Fix up includes bringing up to code: Electrical, safety, handicap. sprinklers, etc. The findings are generally done by the local building official or contracted by the developer. Secondly. the NRA or community must determine that the project meets the public policy test for redevelopment. Satisfactory findings of both test would satisfy any future investigation by a State Auditor. HRA members presented different viewpoints. St. Hilaire felt supporting competition or assisting retail should not be at the expense of the taxpayer. Another thought, if HRA MINUTES AUGUST 7. 1996 redevelopment can not occur solely with private dollars, would public dollars be best used to encourage outside competition or to encourage expansion and relocation of an existing business. Chairperson Larson felt the HRA should keep its options open. Others agreed the concept provided an opportunity to encourage or assist with implementation of a dowmownhiverfrom revitalization plan. The key question is: Does the concept meet the vision of the community or what the community wants? If so, Mark Ruff suggested the HRA request the developer to contract an architect to establish findings for satisfying the substandard test. Hilaire asked "What is the remaining balance of the original $360.000 TF District No. 1-6 debt?" HRA members agreed to keep their options open and requested Brad Johnson contract with a party to determine whether the proposed concept plan for redevelopment meets the substandard test. CONSIDERATION TOPREPARE A ONE-YEAR PLAN AND FIVE-YEAR PLAN OF HRA COALS AND ACTIVITIES IDC Member Jay Morrell informed HRA members of the IDC's objective to lobby the local govenmmm emities to consider preserving funds to purchase lands for a future industrial park. With the understanding many local government agencies own industrial parks for control or management and due to the high-cost of development, the financial feasibility for private development of industrial parks has greatly been reduced. Consistent with the Monticello Comprehensive Plan, a future industrial park would lie in an area south of 1-94 at Orchard Road. Identified within the Comprehensive Plan for industrial use and within the OAA Study as agricultural. O'Neill felt no risk existed today with the county and the township since four residential proposals for the designated area did not receive support. O'Neill added another use of the HRA dollars may be for freeway imerchange and utility development rather than land purchase. Mark Ruff responded to the question: How do HRA's finance the purchase of industrial land? Various ways, one combination is 600/6 TiF Surplus and 409/a levy. HRA members noted o high priority for the need to increase the city's revenues and job base. Looking at the capital improvements plan, surplus dollars are eligible to fund all items listed except City Hall. Members expressed the importance of supporting the DowntowNRiverfrom Revitalization Plan. No goals or activities were defined. CONSIDERATION TO APPROVE A SUBORDINATION AGREEMENT BETWEEN THE HRA AND THE FIRST NATIONAL- BANK OF MONTICELLO. As similar to other request that the Private Redevelopment Contract be subordinated to the lien on the mortgage. AI Larson made a motion to approve the Subordination HRA M ] NUTES AUGUST 7, 1996 Agreement between the HRA and the FnV National Bank of Monticello. Seconded by Brad Barger and with no further discussion, the motion passed 4-0. CONSIDERATION FOR PERMISSION TO ENTER THE HRA LOT LOCATED AT 111 WEST BROADWAY. Tom St. Hilaire made a motion granting permission to the MCP-Promotrons Committer to enter the I I 1 West Broadway parcel on August 10 for displaying garage sale nems at the one -day community sale subject to the MCP's obtaining a one -day liability insurance policy. Steve Andrews seconded the motion and with no further discussion, the motion passed 3-0-1. Yeas: Hilaire, Andrews, and Barger. Nays: None. Abstention: Larson HRA members declined the suggestion made by the Public Works Director to fence the Broadway sidewalk boundary with a split cedar rail to discourage driving through the lot. HRA members felt a fence would not discourage anyone. OTHER RUSIINESS, a) HRA members OK'd payment of monthly bills. b) 1996 Monticello Property Tax from the Minnesota Cumber of Commerce - Larson asked: What is the number of housing parcels in Monticello? Wolfsteller felt the County property tax levy of $15,886,491 was an error and the number represented the whole county not just for the City of Momicello. C) Witbout an invoice from Hoisington Koegler, the HRA elected not to take action for payment of services conducted by Maxfield Research or Hoisington. d) Without a formal or written request from the Steve Johnson to extend the HRA stairway easement, the HRA elected not to take any action. The HRA meeting adjourned at 10:30 p.m. 011ie Koropchak, Executive Dnector HRA AGENDA AUGUST 21, 1996 Budget Enclosed you will find a copy of the HRA Cashflow. The HRA Cashflow can be considered as one source of revenue. Remember, the cashflow includes both TIF Surplus dollars (restrictive) and HRA General Fund dollars (non-restrictive). The revenues were taken from the cashflow projections prepared by Mark Ruff and expenditures as expended by the HRA in 1996 through today. It has been the practice of the HRA to consider establishment of the TIF District upon the interest of a redeveloper or developer to invest in the City of Monticello. TIF Districts generally cashflow or produce a surplus. However, the HRA may need to acquire properties prior to establishment of a TIF District in order to manage the defined redevelopment project area. An example was the Fhnh parcel which is under management 6 by the HRA until completion of the Downtown(Riverfroat Revitalization Plan. Enclosed is a copy of the Minnesota Statutory relating to the HRA's power to levy. The levy is presented as a second option for the HRA to consider as revenue to support HRA goals. Also enclosed is a copy of the calculated maximum HRA levy potential for Monticello and a copy of the 1996 HRA Fund Budget. Note, previously the City Budget included an HRA levy; however, an HRA levy adopted by a resolution in accordance with Minnesota Statutory would appear as an independent line item on the property tax statemem. A levy can be adopted annually or for a designated time frame. B. Summary: After development of a list of goals, the HRA should prioritize the list. After discussion and selection of HRA revenue options, match the prioritized goals with revenues as it applies to restrictive and non-restrictive fiords. C. ruppgrfinu Dn_ta: HRA Cashflow, capital improvements. HRA projected levy, HRA power to levy, and 1996 City/HRA Budget. HRA AGENDA AUGUST 21. 1996 Cosh and Objectives As members of the HRA, the commissioners should be conscious of the three main purposes of an HRA when setting the 1997 budget and goals. The three main purposes are to increase the tax base and create jobs, efiraimte blight or substandard buildings or areas, and provide housing for the low to moderate income. Additionally, members should be conscience of the following: I . Are the goals consistent with the Monticello Comprehensive Plan'! 2. Does each goal meet one of the main purposes of the HRA? Increase tax base and create jobs, eliminate of bfight/substandard buildings or areas, or provide housing for the low to moderate income. 3. Was consideration given to the request of the IDC'? To preserve funds for future industrial land. 4. Was consideration given to innplementation of the Monticello Downtown and Riverfront Revitalization Phan" 5. Was consideration given to the list of identified capital improvement needs? 6. Was consideration given to the list of identified park improvements? Secondly, in 1996 the HRA modified the Central Monticello Redevelopment Project Plan to include the intent to acquire the parcels at 525 East Broadway (Olson), 225 Front Street (Carlson). 109 West Broadway (Johnson), and 108 Walnut Street (Kjellberg). Any one of these parcels may be considered spot redevelopment until such time a TIF District might be established. I would recommend the HRA develop a Hsi of parcels for potential redevelopmem. At one time, the HRA discussed areas along Front Street, Fourth Street (beyond Fire Hall), Fifth Street (gasoline tanks), and Sixth and Seventh Streets (various homes), and the previous Johnson warehouse. The list might also include goals such as acquisition of industrial land an the future or funding certain capital improvements. Once a list of goals is completed then the HRA might prioritize the list for consideration of ftmdmg through HRA revenues. 4ro�N,cA e,6 Cashx-10L3 _� . 1996 1997 1998 1999 2000 2001 REVENUE: Balance S S 117,919 $ S S S Swphis 485,000 130,000 130,000 130.000 130,000 130,00() Other Total Revenues $ 485.000 S 247,919 S $ S S EXPENDITURE: Public $ 31,431 S 54,511 $ 75,000 $ 75,000 $ 75.000 $ 75,000 Improvements H -Window 20,000 20,000 20,000 20,000 200H1 20,000 Hoisington 80.650 Koegler Fluth 50,000 Katzmarek 145,000 City 40,000 Others Total S367,091 Espendllui es BALANCE $ 117,919 S 173,408 S 35,000 S 35,000 S 35,000 S 35,000 ng Commission Members July 8, 1996 f' Page 7 CAPITAL IIMPROVENENf PLANNING A very important area that has been given very little attention is maintenance of a 5 -year capital improvement program. A capital improvement program is important because it identifies the major infrastructure and equipment needs of the City and identifies appropriate funding sources. To some extent, the success of the comprehensive plan depends on establishment of financing strategies necessary to support capital improvements needed to support the comprehensive plan. The City has done a fairly good job of inventorying major infrastructure needs in the areas of road development, sanitary sewer system expansion, public works building expansion, and wastewater treatment plant expansion. We have done a fair job of projecting our needs in the area of park development. What we don't have is an integrated financial model showing exactly what money is available to complete which projects by what time period. It is critical that we begin to identify major projects and agree as to the method for funding these projects so that in the future we aren't saddled with huge expenses to complete projects done on almost an emergency basis. Following are projects that have been identified as necessary improvements but are not identified on a financial plan. Please note this is only a partial listing. 1. Orchard Roadll•94 interchange 2. Fallon Avenue overpass �f 3. City park developments in the River Mill, lGein Farms, and downtown/ river area % 4. Chelsea/Highway 25 corridor improvements 4 5. Downtown redevelopment activity, including land acquisition and demolition 9 "f OU.P_rT J *-'6. Major storm sewer improvements do 7. Expansion of city hall it 8. Development of ramps at County Road 118/1.94 49. Extend Chelsea to West 39 \% . -l_ "') ".* t S TE`o projects identified above aro just a beginning to the list that could be assembled of all the projects that will need to be completed as the city grows. We need to come up with a statement (capital improvement plan) which identifies how these projects aro going to be funded using sources such as general taxes; tax increment financing pooled funds; access fees, including sanitary sewer, storm sewer, water, etc.; special assessments; and others. Similarly, we do not have a plan for expansion of manpower needs necessary to meet a set standard for service provided by various departments. This is not a planning item but is noteworthy.,.�C.�+� FEB 26 '% 05h25PM E}LERS & ASSOCIATES P.2/2 Eftl ad ft 1.11109411 In •cane FINANCE February 26.19% TO: 011ie Koropchak, City of Monticello FR: Mark Ruff RE: HRA Levy As rimed, we have calculated the maximum HRA levy potential for the Mantioello HL& The mazimum rate is .0131 % of market values MonHeello arrtently has a mxabb market vahm of 452347,500. 7becefore, the maximum levy would be $59,233. Even bough the msxhnum rate is Calculated on the basis of market value, the levy would be spread against tax capacity. Plass call with any Questions or comments. \g4`\ \kR'A L.a,z -� Qno h,.v->.- \ d '3 C o l %Zk CWFCD a futrtaAvoa. & M AMID OIIOortpam tan S 2M NorWat COMW . 00 south tiavaneh 111171011. hihnnvwa MN 042.4100 To400ns 4124304"1 . FAX 6114394M ECONOMIC DE'VEI.OPMEN-r 469,033 or WW authority in sections 469.001 to 469.047, shall be known as the public redevelop - oat cost. The proceeds from the sale or lease of property in a project shall be known W capital proceeds. The capital proceeds from land sold may payback only a par - Woof the public redevelopment cost. An authority may finance the projects in anyone ,b, any combination of the following methods. Subd. 2. Federal pants. The authority may accept grants or other financial assis- law from the federal government as provided in sections 469.001 to 469.047. Before is uses other financial methods authorized by this section, the authority chats use all fed. OW funds for which the project qualifies. Subd. 3. Bond Icwe. An authority may issue its bonds or other obligations as pro- vided in sections 469.001 to 469.047. Subd. 4. Revenue pock use. The authority may provide that all revenues received boos its redevelopment areas be placed in a pool for the payment of interest and princi- pail on all bonds issued for any redevelopment project, and the revenue from all such peas shall be paid into the pool until all outstanding bonds have been fully paid. Subd. 5. Special beaegl lax hand. If the authority issues bonds to finance a redevel- opment project, it may, with the consent of the governing body obtained at the time of the approval of the redevelopment plan as required in section 469.028, notify the emmty treasurer to set aside in a special fund, for the retirement of the bonds and inter- est on them, all or pan of the real estate tax revenues derived from the real property is the redevelopment area which is in excess of the tax revenue derived therefrom in the tax v ear immediately precedi ng the acquisition of the property by the authority. The county treasurer shall do w. This setting aside of funds shall continue until the bonds have been retired. This subdivision applies only to property that the governing body Ms by resolution designated for inclusion in a project prior to August I, 1979. Subd. 6. Operation urs as tuft distrK special tax. All of the territory included within the area of operation of any authority shall constitute a taxing district for the purpose of levying and collecting special benefit taxes as provided in this subdivision. t �. U1 of the taxable property, both real and personal, within that taxing district shall be deemed to be benefited by projects to the extent of the special taxes levied under this + subdivision. Subject to the consent by resolution of the governing body of the city in and for which it was created, on authority may levy a tax upon all taxable properly stthtn that taxing district. The tax shall be extended, spread, and included with and as a pan of the general taxes for site, county, and municipal purposes by the county auditor, to he collected and enforced therewith, together with the penalty, interest, and costs. As the tax, including any penalties, interest, and costs, is collected by the county treasurer it shall be accumulated and kept in a separate fund to be known as the `hous- tag and redevelopment project fund.' The money in the fund shall be turned over to the authority at the same time and in the same manner that the tax collections for the tits are turned over to the city, and shall be expended only for the purposes of sections 469.001 to 469,047.11 shill he paid out upon vouchers signed by the chair of the author. 11) or an authorized representative. The amount of the levy shall be an amount approved by the governing body of the city, but shall not exceed 0.0131 percent of tax• able market value. The authority may ley an additional levy, not to exceed 0.0013 per- cent of taxable market value, to be used to defray costs of providing informational service and relocation assistance as set forth in section 469,012, subdivision 1. The 9 authon[y shall each year formulate and file a budget in accordance with the budget pro• d y cedure of the city in the same manner as required of executive departments of the city, Of. if no budgets are required to be filed. by August I. The amount of the tax levy for �. the follow in � g year shall be torsed on that budge. Subd. 7. Inacthe astborltles; transfer of foods; dissoladon. The authority may Iransfer to the city in and for which it was created all property, assets, cash or other funds held or used by the authority which were derived from the special benefit tax for i rede%clo ment levied pursuant to subdivision 6prior to March 6, 1953, whenever col. lected. I Ipun any such transfer, an authority shall not thereafter levy the tax or exercise ' he fednelopmeni powers ofsect ion% 469.001 to469.047. All cash or other funds trinins, RESOLUTION 95. 68 RESOLUTION ADO"ING THE 1996 BUDGET AND SETTING THE TAX LEVY WHEREAS, the City Administrator has prepared and submitted to the City Council a budget setting forth therein his estimated needs of the City of Monticello for all operations and the debt service for the fiscal year commencing January 1, 1996; and WHEREAS, the City Council has reviewed the same and has made such changes therein as appear to be in the beat interest of the City of Monticello; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTICELLO that the budget so submitted by the City Administrator, together with the changes made therein by the City Council, be and same hereby is adopted as a budget for the fiscal year commencing January 1, 1996; and BE IT FURTHER RESOLVED by the Council of the City of Monticello that there be and hereby is levied for the fiacal year commencing January 1, 1996, and the following sums for the respective purposes indicated therein upon the taxable property of the City of Monticello, to wit: NET CERTIFIED $EVENTIF LFM HACA LEVY General $2,143,730 $177,521 $1,966,209 Library 31,095 0 31,095 )AA 1,300 104 1,196 rIRA 19,090 1,593 17,497 Tree 13,135 1,097 12,038 Transportation 17,000 1,410 15,690 Debt Service Fund $ 651,187 $ 53,917 $ 597,270 Capital Improvement Revolving S 307 362 A 2B 467 Ef t„os TOTAL TAX LEVY $3,183,899 $261,099 $2,922,800 The above resolution was introduced by Councilmember Andoroon , was duly seconded by Councilmcmber atomof , with the following voting in favor thereof: Brad Pyle, Shirley Anderson, Clint Ilerbat, Brian Stumpf, Tom Perrault The following voting in the opposition: none The City Administrator is hereby instructed to transmit a certifiedpepy of this resolution W the County Auditor of Wright County, Minnesota. / / Adopted this 11th day of December, 1998. / , -� /? --'V' 941c� Pago 9a SPECIAL REVENUE FUND 1996 BUDGET BBA FUND Current ad valorem teres: 213.31011 17,497 TIF 82 - Metcalf & Larson 213.31052 47,000 TIF 85 - Construction 5 213.31055 74,500 TIF 88 - Raindance: 213.31056 69,000 TIF 67 - NAWCO: 213.31057 69,000 TIF 88 - NSP: 213.31058 4,200 TD? 89 - Tapper 213.31059 24,000 TIF 810 - Remmele: 213.31060 34,000 TIF 811- Marties Farm Srv: 213.31061 2,700 TIF 812 - Aroplax 213.31062 20,500 TIF 813 - Shingobee: 213.31063 65,000 TIF 814 - Suburban Machine: 213.31084 14,800 TIF 815 - Custom Canopy- 213.31065 12,250 TIP 816 - Polycast: 213.31066 18,000 TIF 817 - Fay Mar Fabricators: 213.31067 19,000 Homestead credit: 213.33402 1,593 Interest earnings: 213.36210 18_000 1i1—IL I + fta Y ,4,Iil ? tttttptttttNtttttttttttttttNtNttittttttttNtttttttttttttttNtttNNttttttNtttttp CAN i. A �I! .RVI Salaries, Hill -time - reg: 213.46301.1010 11,570 I PERA contributions: 213.46301.1210 520 FICA contributions: 213.46301.1220 720 Medicare contributions: 213.46301.1250 165 I Health/dental/life insurance: 213.4001.1310 �9Q I TOTAL PERSONAL SERVICES RPRVICER A CHARGER 13,765 QnMR Prof sry - legal fees: 213.46301.3040 2,750 Mise professional services: 213.46301.3199 2,000 Conference & schools: 213.46301.3320 300 I Legal notice publ:tation 213.48301.3510 100 Property taxes: 213.46301.3710 100 Mlsc other expense: 213.46301.4399 7b TOTAL SERVICES & CHARGES 5,325 i NBUDOIM It"" Page 59 l SPECIAL REVENUE FUND 1996 BUDGET SBA, FUND CONTINUED... Transfer to debt service: 213.46301.7208 227-460 TOTAL OTHER FINANCE USES 227,480 SUBTOTAL e..►s is, Me& 246,640 NNtNiN t►►►t►ttN ttt tgiii►►ttgttggNiqt t t q►qit tNiq►►i►iM►tlggtt►tgNN TIF payback installments: 213.48807.8811 10.000 TOTAL TIF 07 N3P 10.000 77F A8 - Debt uv princ - short-term: 213.48808.6030 3,000 Debt sry int - short-term: 213.46808.6130 88 TOTAL TIF 08 FIti`R_M ALt2Vil'.R 3.880 TIF Ali .11LeRTIF TIF payback installments: 213.46811.6811 2.600 TOTAL TIF 011 '� 9HIIde8BitF 2.500 AIA . TIF payback installments: 213.46813.6811 92947. TOTAL TIF 013 CANePy 82,847 TIP AL - CtramnM TIF payback installments: 213.48616.6811 ADM TOTAL TIF 016 6,000 TOTAL TAY INCRE SEN1' DISTRICT EXPENDITURES 76,497 BRAND TOTAL .!W L.r ,s..1..., b JRas Al j "BUDGM. M&M Page 60 lk .. MA FUND CONPINIIED_ �N�: p - � W8alariea: 30% 011ie Transfers: Represents portion of fax increment revenue due in 19% (Imrt c.0 s a to be transferred to TW bond brads o lt'. . MBUMBr.. IAMM page el HRA AGENDA AUGUST 21, 1996 Enclosed is a copy of the letter to Mr. Morrell relating to the HRA motion of August 7 and W. Morrell's response. HRA Attorney Bubul will advise the HRA on this matter. 250 Eau Broadway P. O. Box 1147 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (612) 333.5739 Fax: (612) 295.4404 Mr. Jay Morrell M&P Transports, Inc. 1401 Fallon Avenue Monticello, MN 55362 Dear Jay: Thank you for your presentation and for attending the HRA meeting of August 7, 1996. Following your ^resentation, the HRA Commissioners continued discussion of the E 12,517.93 tax increment shortfall for the cast ad west parcels of Lot 7, Block 3.OIP and agreed to offer a compromise. Recognizing some gray areas exist within the recorded agreements and the potential for both parties to perhaps incur legal fees in excess of the shortfall amount if a claim was filed, the HRA passed a motion to split the $12,517.93. Upon payment in the amount of $6,258.96, the HRA also agreed to release the two recorded Agreements between the HRA and John W. Plaisted. Recorded Document Nos. 461125 and 461126. As a taxpayer of the community, the HRA hopes you understand their opposition and their obligation to the taxpayers of Monticello. Historically and presently, the HRA is a strong supporter of industrial business retention and expansion. If you should have questions relating to the HRA motion. please don't hesitate to contact Al Larson, HRA Chairperson; Rick Wolfsteller, City Administrator; or myself. Again, thank you for your willingness to work out this matter. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OFF M_OQNTICELLO Osie Koropchak �l Executive Director cc: Larson, HRA Chairperson ✓ Wo Mr ler_ City Admin�yator OOffl— of PubUc Works, 909 tuff Crum Rd, NowwrUo. MN SM62 • PAov: (6 12) 29s•3170 • Fax: (612) 295.3170. ev. r I JIBE OF MONTICELLO CONCRETE PRODUCTS "`O•V�$ ALEXANDRIA CONCRETE CO. OF NEW LONDON, INC. ' B JMIL WADENA READY -MIX CONCRETE OF MORRIS, INC. Roll -OH Containers • Demolition • Aggregate Hauling • Snow Removal Q Ready Mix Concrete • Concrete Block • Retaining Wall Block • Cement Hauling August 14, 1996 HRA of Monticello 011ie Horopchak 250 East Broadway PO Box 1147 Monticello, MN 55362 I am in receipt of your letter dated August 9, 1996 regarding the tax increment issue. There are several issues that appear to have been overlooked or not taken into consideration: The let tax increment document with the Johnson's was cancelled. Therefore &y references concerning the original document are not appropriate. This is especially true when talking about tax increment districts ending dates; you can only refer to the current document. The current document is poorly written and vague. I can only be held accountable for what Is in the current document. A. The current document plainly states 'the above described property' which is bash parcels. Therefore, the tax revenue from tenth nAwcela through 1994 must be considered when calculating the amount of revenue generated. (The original document cannot address this issue). There were two documents signed by Mr. Plaiated and the HRA. A. The first document only relates to the market value with no minimum tax. B. The second document clearly states twice that the period rune through the year IM. C. The second document describes a minimum guarantee of at least 926,000 through the year 1994. The second document also clearly states that the payment. if any, should be no later than the 15th day of December in the year in which the taxes are due and payable. (The HRA failed to bill in an appropriate manner when considering the documents and facto). JME OF MORMELLO ALEXANORIA CWICRM CO. WADENA REAOYYIX CONCRETE PRODUCTS CONCRETE OPMORAVL INC. P.O. Box 477 P.O. as 588 PO 0Os aE OF NEW LONDON. INC. 1200 Peak Avow MOntlCe60, MN 55382 A1oynorka. MN 56308 Waftne, MN 56162 17650 Hwy, 23 N.E. Mortis, MN 68267 Phone . (8121215.3122 Phone • (320( 763-4800 Phone .(215)631-1558 New Loddon, MN 56273 Phone • J320) 589-3700 Fax • (612) 215.8789 Fm -0=704676 Fu • (216) 831.1080 Ph" • (320) 354.2311 Fax • (320) 569-4339 Fal •(320) 354.2177 l HRA of Monticello Page Two August 14, 1996 Our offer of 81498.15 and your collection of 8450.64 from Mr. Plaiated is all we truly owe. Mr. St. Hilaire contention that we agreed to pay 828,000 may or may not be accurate. The facto are according to the annual tax statements we paid 828,000 and more. The HRA failed to take their increment even though the documents signed by HRA, the County Assessor, and Mr. Plaiated clearly state both parcels through 1994. (Please see attached graph). Because of these facts we are compelled to reject your offer of settlement. It is up to the HRA to collect the money owed by Mr. Plaiated of 8450.64. I will acknowledge a debt of 81498.15. This would be a total of 81948.79. However, I would like to make a win win situation so in lieu of attorney fees add another 81000.00 to the pot when considering the facts: 1. Statute of limitations. 2. What the current documents actually state. 3. The current agreement which cancelled the original TIF has no provision for transfer with title of property. 4. HRA failure to timely bill the short fall causing an undue financial burden on myself with triple net leasee. This is an extremely generous offer. 81498.15 Jay Morrell 1000.00 Jay Morrell additional 450.84 John Plaiated 82948.79 Total I will issue a check within 24 hours of a signed agreement and release of Mr. Plaisted's obligation. Sinc ly, y Morrell JCM:Je q,Ltr�q.`a-`1 II M I P Transport, Inc. (----PA L 1-155-018-003070-------) TIF REV, AS TIF A I OF TAXES YEAR TAXES LEVIED REVENUE LEVIED • . 1989 6938.90 8375.74 93.70 1 1990 8588.62 7982.97 92.951 1991 9011.50 8301.35 92.12 1 1992 10257.46 9436.86'ASSME 92 4 1993 10905.50 10033.06 ASSUME 92 1 44129.98 J y�. <-----PARCEL 1 155-018-003071---------> TIF REV, AS TIF A I OF TAKES TOTAL TIF TAXES LEVIED REVENUE LEVIED REVENUE ------------ ------------ ------------ ----------- 19629.60 14723.84 75.01 1 4479.27 22.82 1 486.57 2.48 1 ; 100.31 1 28065.42 us collected 18959.76 18471.97 97.43 1 26454.94 was collected 19868.14 19294.92 97.11 1 27596.27 was collected 22770.18 22070.04 96.93 1 31506.90 sl have leen tollecte 24138.94 23296.40 96.51 1 33329.46,sA My# leen collech o 102823.01 146952.99 8=882=1m HRA AGENA AUGUST 21, 1996 a) Fate of special HRA meeting of August 13, 1996 - As no request from Steve Johnson was received at the office of the HRA and Mr. Johnson was out -of --town. the special meeting was cancelled. Upon receiving a copy of the Certificate of Survey from Taylor Land Surveyors, the stairway easement description was 4.5 ft wide and 24.5 ft long. It appears Mr. Johnson thought the easement was 4.5 ft wide and 16 It long and was requesting an extension of 9 It for a kngtb of 25 ft. If the outside stairway is constructed within the described easement (4- 5 X 24.5), no action is required of the HRA. b) Payment for completion of Task 11, Hoisington Koegler Group Inc. - At the MCP meeting of August 14, bo,:. L -... - - .. verified the completion of tasks omlmed in Task 11. Payment of 56.798.99 was authorized. c) Monthly bills - Enclosed are copies of the monthly HRA falls for aud"rb9ion of Payer• d) Other - Planning, Parka, and HRA Commissions Joint Meeting - Tuesday, August 27. 1996, City Hall. 7:00 p.m. HRA regular meeting (if needed) - Wednesday, September 4,1996. MCP/Hoisington Koegler Group, tnc. Workshop Two - Tuesday, September W. 1996, School District Board Room, 7:00 p.m. 011ie out -of town - August 22 through 29, back in office August 30. Al out -0f --town - September 2 through 11. I-) � i CERTIFICATE OF SURVEY FOR STEVE JOHNSON i tee•.c r•�.1 ...u- •- e w re .fi'1:J711.I /f: llt . .. f. Yf /. {"' Y ..!, t. �e/t,aK.:. •frt: a•r !s N•• re lt.. t fI•NI .• TAe tff•nr if •M .•I..t/ INe1or. t. ••1 I�f tM �OMt a. wi, lt•'e of IJ•NM•. Nre/t 1 Itr,f N .Nf J{ l � iMt Ir e•t•M Ift.'Y.r •N 4' :Nr .• Mese :• sM lweVN! :xMl If Ler I, /1KH M.l.lf: {/rtllf :f'.: :p.7 t1•'Mr :f•/ Yt ! {J ir. !:. �:::f�• NNf r. nt t: eM tKeIM Wt {I.N. H.�• '•µt1•. IINo/t1 ••teN tM IKIMM•Nlr le. fr (Mt J7 J•Y tAeMt•I:. •..X tK! of raJ .it I M NNYfN •t 1 It tlli •r/1• rt Mr..:•, qY IM I.YWofKr! •M K•[A•Kt1/1/ JJ11N selrMf. .•. Nt.•f •!'A • e•..M.t (! INt1•rl e.•+f ••e n•eI /. wr MIe' f. ••••/ftr•t :1.17 for M lM filltAWfN:r 00 .0 f -t Yl.1/,'. (•. N .e•eYfN •1 • t!1•t MIJI t• W MI•l:e/ Yl tl I•.••M••M.I •et K•t•YMtM:i J•M1 IMr•v/. t.e�e.•1 t: • .a1,:•N Ne.rrt :ar ter•a •.e etrre :1..0000 1 f •rr.f. . rn.Y.1W.I {,k fMl W tM /wt•.••t K,I fMt tJ • wt..t/r.r11 :t{C IM• tI :.[ {, /:eM •. V'1':CC.i4 N •NrIr Y. ' It MMe rJ •11r J1W 11. Y. a•1 !M eeY•KMterJ/ ••I NYt••eN!N.) • e_ a V-• Te • M/YM.r f.r Y•Ntf lJ•. ._•rN.I .t! M tA1 /MtYN• !Ie• N •M MftMMtN,r h.% IM1 t tat hYfA...t rJr JX••✓' 7 t /. {ta, ..—v•1 • 40%w "p. I.f•J •.. N•• •o /w�N•IrN:I MJ KY[•wr•fl:r .. Mr •&W -o /N,Mr e..wrt fN ..trMe .rJ •PIN ArKN. Nrer I•Yrr•rrtlr:i •Jl.ti 1." M •M 11lt•K•eN1J N 0 rMt N NN t .we •. LK• /J, Inlf..'aw w •.•rder a . .Vg ..q..M ••: Nr .. •• w v"..Mwfr aft tlltwf .e '.. ••{1 w.t• A•.tM M NLtntt JVYN•'•w M. A/ M. TAY��SURVEYORS �NCINC. m SW NM*DI/w, P0. wx 179 limo. 50n 11ad fee) on -am Irro ""T , m • OKr Iw smom LAW fttrYtvxw L^l rMf l.Mf or Tw fin or M,Afllfwr. ®© Hoisington Koegler Group Inc. En�p 7300 Metro Blvd. #525 Minneapolis, MN 55439 Ms. 011ie Koropchalt Monticello HRA P O Box 1147 Monticello, MN 55362-9245 INVOICE August 8, 1996 Project #96-21 Attention: 011ie Koropchak, Executive Deem For Professional Planning Services Authorized for prep on of a Downtown and Rivernt Revitalization Plan from May 1 through July 31,1996 as follows: fto Completion of "Task 2: Understanding What is Desired" according to Work Program. BILLING Principal 36.50 has Q $78/hr $2,847.00 Principal Travel 5.00 hn Q $401hr 200.00 Technical 15.00 hrs Q $38/hr 570.00 Expenses: 167.40 rants 10.28 Plottingpie- 0.00 aerial phot "by 146.11 403.79 Outside Consultant: Maxfield Research 900.00 SEH, Inc. (partial billing) 835.70 Ehlers & Assoc. (partial billing) 1,042.50 TOTAL July 31 Billing $6,798.99 Lbw b l KENNEDY a GRAVEN a e"Id . ( 200 SeuW ShO Stmt, fWs 470 M6napok poi Sm (612) 317-9300 CLIENT SUMMARY August 6,1996 (Sty of Monticello PO Hoz 1147 Monticello, MN 55362-9245 Throvg6 July 31,19% MN190-00041: Rodevelopmeat - CienWW f 510.65 MN 190.00042: Standard Iron TIF S 96.75 MN190.00053: Mesw's Home Fwniddnge Dem btkm E 299.70 MN190-00054: Peairie West Project % ma:eh) S 1,105.95 Services Rendered: S 1,996.05 Disbuusemenm S 17.00 Balance Due: S 2,013.05 `c� 6.18 9tceaecele-01 MYAV9D 41 AG3MMat1-MOM/ e9•11 99-91-OnV KENNEDY I¢ GRAVEN m.mea 200smagob In%sdM470 l Mbnuporo, MM 55402 (612) 7379300 August 6. 1996 City of Mozarodlo PO Box 1147 Monticello, MN 55362.9243 MN1904MI: R4. 1.�... .... . General Invoice A 10550 Through July 31, 1996 For AH Legal Services As Follows: 07/18/96 SJB Phone call with O. Koropebak re various TIF 0.50 64.50 issues; tall proposal 07/22/96 SJB Phone call whh O. Koropehak re Mall; building 0.80 103.20 inspection memo; review some 07/23/% SJB Phone call with J. Merchak re Mall; phone call with 0.75 96.75 O. Koropchak to options to proceed with TIF 07/25/'96 SJB Review 1/Pbmted doamsents; tatraoffece 1.50 193.50 conference with L. Wertheim re am= phone call with O. Keropchak re creme 07/25/96 LMW Intmffroe conference to agreement 0.31'• 41.70 Total Services: S 499.65 Attorney Summary Larry Wertheim 0.30 @ 139.00Jhr S Bubul 3.55 129.00Jhr 41.70 457.95 For All Dish As Follows: 07/16/96 Fax 11.00 Total Dlab,usemettts: S 11.00 Total Services And DidpAsemew: $ 510.65 glee a0bd GICUCcate-01 MSAVatr O AOaMM831-MOM/ es'al ata-•1-Onb I; KENNEDY a GRAYER! curmw mo $we se* seoc sma 670 w ss«a tern 111 vsoo PCO Box of onliallo 1147 Mon'ticcUo. W 55362-9245 MN190.00042: Standard Iron TIF August 6,1996 Invoice# 10732 Tb=AJWy3l.1996 For All Legal Servias As Folloava 07/16196 SJB Phot eaU whb O. Koropebak re Deb&* review same Total Services: Anomey Summary Stp*m Bubul 0.75 ® 129.00/hr ToW Se woes And Disbta: 0.75 96.75 i 96.75 %.75 S %.75 eie Bona ercesccare-al wenveo t xaeMwes-MONA 62,01 00-81-onv I KENNEDY a GRAVEN aarmnd t leoSoo* tam, Sn%sms470 MbnupftMN 334M (612) 3779300 Augur 6, 1996 Ary of Mon*cHo PO Box 1147 Monticello, MN 55362-9245 MN190-00053: Master's Home Fumishinp Demolition Invoice # 10551 Througb J* 31,1996 For AD Legal Services As Follows: 07/01/96 SIB Revise Wau Agteemmt; fan to parties 0.50 64.50 07/02196 SIB Phone call with 0. Koropchalr to dosing 0.30 38.70 07/03/96 SIB C wing meum 1.50 193.50 Total Setviees: S 296.70 t For All i, '!,,,.........., As Follows: 07/01/96 F®( 3.00 Tote! Di, , ...... E 3.00 Total Services And Di.il,•„,._..,....,: S 299.70 !/f aovr OILa/CCe1s-a1 UNAv110 • Aaawlay-Mose e9'91 e9-9l-onv 1 KENNEDY at GRAVEN ChWWMd no South SM SoK Srm 470 M OMOdk MW 5"M (611) 337.9300 August 6, 19% (Sty of Monticello PO Box 1147 Monticello, MN 55362-9245 MN190-00054: Prairie west project (Komarek) Invoice # 10552 Thro>stgb July 31, 19% For Ali Legal Services As Follows: 07/01 /% SJB Phone calls with J. Komarek, 0. Koropchek. B. 2.50 322.50 Larson and title company m closing; begin draft escrow agreemcm 07/0196 SIB Phone with 0. Koropehak and title company re 1.75 225.75 closing matters: review loan ............... .... Phone M. call with Ruff m same; memo to tick company 07/03/96 SJB Closing matters 0.50 64.50 07/15/96 SJB Draft subordination a memo m same �- 2.50 322.50 07/16.t f SJB Phone call with 0. Koropchak it plan; related 1.30 167.70 ooetract issues; finalize subordination agmemeW phone all with D. $bay re same Total Services: S 1,102.95 For All Disbursements As Follows: 07/03/% Fax 3.00 a Total Disbursements: S 3.00 Total Services And Disbuasemrats S 1,105.95 aria sena otceaceets ar wanvea • AaENwar-woaa c•-st se-at-onv IL Monticello HRA PO Box 1147 Monticello MN 55362-9245 August 16, 1996 MC100-01 GENERAL 7/2/88 MTR Be9M runs for Tool and Fay Mar project 0.75 78.75 7!3!98 MTR Finish memo and runs for Fay Mar and Lake Tool 0.75 78.75 Tate) Due This Month: 1.50 $157.50 Total Balance Due: EHLERS AND ASSOCIATES, INCJPUBUCORP INC. 2950 NORWEST CENTER 90 SOUTH SEVENTH STREET MINNEAPOLIS, MN $3402 $157.50 Meridian Aggregates Re -it rKlim Agprapxa. C«nparlr madMeldten ST. CLOUD QUARRY CM - 9452 SNtp SL Paul, MN 551 M9452 COPY TO Corresporwence to: Morkhan Aggregate. Company P.O. Box 69 St, CIouO. MN 58902 Page: 1 001 (320) 25:•7141 INVOICE NUMBER CUSTOMER INVOICE NUMBER .0 DATE I VR SOLD MONTICELLO CITY OF 807250 002631 07 �OAI 9 I96 TO 250 E BROADWAY MONTICELLO MN 55362- COVERING 5NIMENT3OURINGTNE PERIOD ENDING ON THE OATe.NONN AeoVE CUSTOMERS 2637 NET 30 DAYS Job. No. :000002 ORDER NO. TERMS: Product: 460 CLASS 5 BASE U/Prices 4.66 Haul -Rate: 4.25/tON Ticket Date TN Material Hauling Sla Tax Ag Tax Total 247137 07/12 25.58 118.95 108.72 7.73 .00 235.40 247138 07/12 24.92 115.88 105.91 7.53 .00 229.32 247139 07/12 24.56 114.20 104.38 7.42 .00 226.00 247142 01/12 24.82 115.41 105.49 7.50 .00 228.40 4 Sub Tot 99.88 464.44 424.50 30.18 .00 919.12 4 Job Tot 99.88 464.44 424.50 30.18 .00 919.12 lA. MAT L NON rAr MA1 L 1A "Alae OIL NON Y" OL"L111111PL[A68 PAY I TOTAL I11VOICA 464.44 I .00 I .00 1N 424.80 I OA30.18 THS AMOUNT �I 919.12 t•Olq.naI 2•Customs, 3.Off Ks 4.0...