HRA Agenda 03-16-1995WORKSHOP/MEETING AGENDA
MONTICELLO CITY COUNCIL AND HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, March 16, 1995 - 7:00 p.m.
City Hall
COUNCILMEMBERS: Mayor Brad Pyle, Clint Herbst, Shirley
Anderson, Tom Perrault, and Brian Stumpf.
HRA MEMBERS: Chairperson Al Larson, Vice Chairperson Ben
Smith, Everette Ellison, Tom St. Hilaire, and
Brad Barger.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie
Koropchak.
GUEST: Steve Bubul, HRA Attorney.
Holmes & Graven.
1.
CALL TO ORDER.
2.
ESTABLISHMENT OF AN ECONONIC TIF
DISTRICT.
3.
RELATIONSHIP BETWEEN
THE TIP
PLAN AND THE PRIVATE
REDEVELOPMENT CONTRACT.
4.
WHAT IS TIF SURPLUS AND
WHAT CAN
IT LEGALLY BE USED FOR?
�e 5.
EXPLANATION OF THE HACA
PENALTY AND
ITS RELATIONSHIP FOR USE
BY THE HRA OR CITY.
6.
DOES A PUBLIC PURPOSE
CRITERIA
(OBJECTIVES) NEED TO BE
DETERMINED FOR THE ESTABLISHMENT
OF ECONOMIC TIF DISTRICTS?
7.
OTHERS.
8.
ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
MONTICELLO CITY COUNCIL
MONTICELLO-BIG LAKE COMMUNITY HOSPITAL DISTRICT
Wednesday, February 22, 1995 - 7:00 p.m.
Hospital Board Room
HRA MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson
ben Smith, Everette Ellison, Tom St.
Hilaire, and Brad Barger.
CITY COUNCIL PRESENT: Mayor Brad Fyle, Clint Herbst, Brian
Stumpf, and Tom Perrault.
CITY COUNCIL ABSENT: Shirley Anderson.
HOSPITAL BOARD PRESENT: Don Biske, Trish Taylor, Jim Fleming, Bob
Dawson, Mary Kiffineyer, and Rick Morrow.
HOSPITAL BOARD ABSENT: Helen Weidenbach and Linda Doerr.
STAFF PRESENT: City Administrator Rick Wolfsteller,
Hospital Executive Director Barb
Schwlentek, and HRA Executive Director
011ie Koropchak.
PROJECT COORDINATORS: HRA Attorney Steve Bubul, Alliance
Pioject Coordinator Dan Lindl,
Architect Jay Nelson and Market
Coordinator Allen Black.
The 68 -unit senior housing project was defined by Don Lindl. HRA
Attorney Bubul described the financial gap in the project
financing, defined the difference between the TIF and the bond
financing, and explained the need to cash flow the project and
obtain acceptable rental rates. One of the unresolved iosue was
land acquisition and disposition. It was understood by the City
Council and HRA that the Hospital Board would donate the land as
equity in the project funding.
Koropchak outlined the HRA'a approved TIP aoaistanco of :,220,830,
subicct to the Hospital Board donating the land with consideration
by all entities to consider a low-interoat or guaranteed loan.
The Hospital Board representatives agrood to bring to the full
Hospital Board for ratification the following: First, make
available 0100,000 cash as equity. Next and independently, the
Hospital Board will sell the land for 0175,000. Upon Issuance of
the revenue bonds, the Hospital will receive $100,000 and will take
a $75,000 intorcot-froo note subordinate to the bond mortgage.
Subject to Hospital Board approval of the above and Council
approval for bond Issuance, and upon consideration by the non-
effective HRA members: Evorette Ellison made a motion to modify the
NRA MINUTES
FEBRUARY 22, 199E
PAGE 2
budget Within TIF Plan for TIF District No. 1-19. Budget was
modified to include $75,000 for debt -service reserve for the
housing bonds and $30,000 for water/sewer hookup fees for a total
TIF budget of $325,830. Ben Smith seconded the motion and with no
further discussion, the motion passed 3-0. Yeas: Everette
Ellison, Ben Smith, and Tom St. Hilaire. Nays: None. Abstention:
Al Larson and Brad Barger.
The meeting adjourned by a concensus of members present.
011ie Koropchak, HRA xecutive Director
TIF DISTRICT NO. 1-19 BUDGET
APPROVED BY HRA FEBRUARY 22, 1995
DEBT -SERVICE RESERVE FOR HOUSING BONDS
$ 75,000
DEMOLITION/REMOVAL
7,500
SITE IMPROVEMENTS
STORM SEWER
15,440
SANITARY SEWER
18,950
WATER
3,400
WATER/SEWER HOOKUP FEES
30,000
PUBLIC IMPROVEMENTS
UTILITY REALIGNMENT
12,000
FIRETRUCK PATH/HYDRANTS
10,000
BIKE/PED PATHWAY BRIDGE
10,000
SITE PREPARATION
39,208
OTHER PREPARATION FOOTINGS
15,675
PARKING/PAVING/LANDSCAPING
48,657
SUBTOTAL
$285,830
CONTINGENCY
20,000
ADMINISTRATION
20,000
TOTAL
$325,830
CREATMG AN ECONOMIC DEVELOPMENT TII• DISTRICT
HOLMES & GRAVEN CHARTERED
March, 1995
1. Does the project meet the criteria for an economic development district?
a. Not eligible for any other type of TF District.
b. Will accomplish g to of the following objectives:
(1) discourage business from moving to another state or municipality;
(2) increase employment in the State; or
(3) preserve and enhance the tax base of the state.
C. No more than 15% of the building and facilities (on a square footage
basis) are used for a purpose other than:
(1) manufacturing;
(2) warehousing, storage and distribution of tangible personal property;
(3) research and development related to the aforementioned activities;
(4) telemarketing. if that activity is the exclusive use of the property; or
(5) tourism facilities (not available in Wright County].
2. Does the project med the "but for" test?
"'lite proposed development or redevelopment. in the opinion of the
municipality, would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future and therefore the
use of tax increment financing is deemed necessary".
3. How much tax increment will the project generate?
Assume a manufacturing project with an estimated market value upon
completion of $550,000, constructed on vacant land that is currently valued
at $50,000. Construction begins summer, 1995.
Completed Tax Capacity 1/2/96: $550,000 EMV x 4.6% = 25.300
Orieinal Tax Cmacity 1/2194: 05.3,000 EMV x 4.6% = 2.300
Captured Tax Capacity $ 23,000
CQptured Tax rataWity x Local Tax Rate = Tax Increment
$ 23.000 1.00 $ 23,000
'Ilse first increment will be collected in 1997 (based on the January 2, 1996
assessment) and the last in 2005. The full picture looks like this:
Taxes
Payable Total Tax 10% Net Tax
Year Increment Administration Increment State Aid Loss
1997 $ 23.000 $ 2.300 $ 20.700 $ 2.760 (40%)
1998 23,000 2.300 20.700 4,140 (W%)
1999 23.000 2,300 20.700 5.520 (80%)
2000 23,000 2,300 20,700 6,900 (10D%)
2001 23,000 2,300 20,700 6.900
2002 23.000 2,300 20.700 6,900
2003 23.000 2.300 20,700 6,900
2004 23.000 2,300 20,700 6,900
2005 23,000 2,300 20,700 6,900
Total $ 207,000 $ 20.700 $ 186,300 $ 53,820
Present Value: I $ 16.350I $ 129,300 I $ 38,230
The bottom line: $129,300 is available to finance eligible developer costs In
present value terms, with interest at 8%. Under a "pay as you go" contract, the
developer receives $20.700 annually, a porion of which is principal and a portion
of which is interest.
4. How can the increment be used?
Generally, for land acquisition, public improvements (streets, roads,
sewer, water), site preparation (excavation, grading, on-site utilities,
etc.).
S. What is the process to create the TIF District?
a. HRA initiates process, requests Council hearing
b. City Council sets public hearing
C. TEF Plan prepared, approved by HRA, and delivered to County and
School at least 30 days before hearing
d. Hearing notice published at least 10 days before the hearing
e. Planning Commission review (advised for TIF Plans; maired
for Redevelopment Plans)
f. City Council public hearing and approval of TIF Plan
g. Request for Certification filed with County Auditor
M
Fent: b•61d1 Te: W. CM. K V h& Isms: 101111% Irk- %89D
ECONOMIC DEVELOPMENT UPDA TE
i."2da
Mile Week In Review:
Fiongmlc "owry Ftnr$2btUintroduced this week to abEconomic Recovery Fund.3
(Riveness Cohere Mone. Piper)
would abolish the fund ascriticism that economic dent
pro
cruse Local
0overrmuesn Committee heard testimony by
the League of Cities end the Assuciaiim of
Counties on H.F. 149 (13.O1smh). This bill
would have granted audsority to counties to
increase appaopriatiwns for economic
development and require county approval
for all now and modified ciq' TIF districts.
Bill passage failed 9-11. Alter tiathmr
.ussion. the bill was amended to delete
county TIF approval sections and keep
uaact the increased appropriation section
The bill was paned to Rep. Ann Rest's
(612-296.4176) Taxes Committee.
Wednesday. to House Taxes
Committee began heating testimony on
H.P. 147 (O2mem). This bill has seven)
provisions that would further restrict TIF.
The bill was amended as follows:
• Restricts economic development TIF
assistance to only companies in risk of
moving to another state.
• Municipality must find that TIF use will
'lfmasa employment or tax base.
Restricts use of soil districts to
pontamination and pollution clean-up only.
U Requires cost -benefit analysis.
• Requires school district approval for
housing districts.
• Limit pooling to 10%.
• Requires flnemW reporting to State
Auditor's Office and requite 0.1% of
increment to go to Auditols Office for
administrative expenses.
• Requires davebper/recipiew of TIF to
nay all of pan of TIF assistance ice if they
ve or fail to carry out activities.
Acquires Newspaper disclosure.
districts for commercial projects to cities
under 5,000 in population with per capita
tax base 106/• below mate average.
• Further mstrictions on pre -1990 districts.
• Requires Met Commit to study TDF.
Nota: All local TIF bills have been passed
out of the House Local oovermsern/Metro
ARaits Committee tad sem to Taxes On
Thursday, the San= TIF subcommittee
heard 16 local bills and laid them over to
the full committee for further dmu sson.
Wubn' Cosnerusdlon IOfosrs:
Nava week the Swims Jobs, Energy,
Community Development will hear
testimorry on S.F. 717 (Rurbeck) on
workers' compensation reform. Major
provisions of the bill include:
• Sem mutimuc3 compensation for
permanent total dinbility at 65% of
statewide weekly wage and changes
defirtitiom.
• Imposes pendtiez on employers for
injuries caused by failure to compty with
Mmes or orders.
• Provides for Dept of Labor fraud unit.
• Creates new advisory council.
• Eliminates economic recovery and
impairment eampemations.
• Sets new schedule for maximum weekly
compensations.
• Changes survivors benefits.
• Changes dispute resolution procedures.
Bill t
ZEL- S.F. 903 (Rirenoss) Repeal
Economia Recovery Loan Fuld
LL S.F. 909 (Vickerman) Removes cap
on county appropriuior for economic
development; county approval of TIF.
Companion to H.F. 149.
Local TlF: S.F. 953/H.F. 1237 - Duluth,
S.F. 961/H.F. 1200 - Crookston
Workers' Coma.* S.F. M (Krerttz)
S.P. 937 04ovakX S.F. 960
(Chendlsr)/3I.F. 12N (Dawkins);
S.F. 1020 (Novak); H.F. 114$
(Bettermarm). H.P. 1147 (Vanftan)
• Limits the use of Eco naaic Development Waacc S.F. 912 ().!arty) Raiw minimum
wage to 56.50 by 7/1/97.
H.F. 1108 (Settetman) Making
changes cam Prevailing Wage Law.
S.F. 971 (Betzold) raises min -wage by
90 mems over 2 years.
%I4. Welfare: S.F. SW (Berglin)
Identical to H.F. 869.
Gambling- H.F. 1095 (OuhotT)
Constitutional amendment to prohibit
all gambling and repeal current
gambling laws.
G�
Next Wetly Hrartrm Schad k&:
Monday" Manch 13: House Labor
Marngemem: H.F. 414 (Peterson)
Requires businesses receiving state
assistance to pay living wage.
12:30 pm, 200 SOB.
Tuesday. March 14: Sansta Jobs,
Energy. Community leve!opmam:
Begin testimony on S.F. 302 (Kelly)
Minimum Wage. S.F. 717 (Runback)
Worked Compensation Reform.
10:00 am, 107 CAP.
Wednesday- March IS: Serrate Jobs,
Energy, Community Development:
Continuation of S.P. 717 (Runbeck)
Worker' Compensation Reform.
10:00 am, 107 CAP,
Hates Taxes - Property Tax At TIF
Subcommittee: Will cotimse
testimony an H.F. 147 (Ozmem)
8:00 am, 200 SOB.
Thursday. Much 16: Senate lobs,
Energy. Community Development:
Continuation of S.F. 717 (Rumbeck)
Workers' Compensation Reform.
10:00 am. 107 CAP.
Ay" rat up=on mnev lora2
l ditlative laslsm, McaningfW
worker' comprnaation reform;
keep tax increment financing a
viable progrlun; lhnding of DTED
Economic Recovery Fussed;
oanmercial property tax reform;
ED competition between states.
DTFD
EDAM
ltflrawsota Department of Tracts �>
Economic Oewbpment Association
Economic IDevslopmemt "Ar-
of MYhmsots
Contact: 0686 Ooddar4 612.297.1168 / 0.
Perm 10.1
Contuc Jot. IMode 612.856.6215
14057.3838
0.6 VoYme 1 No.. to
Mile Week In Review:
Fiongmlc "owry Ftnr$2btUintroduced this week to abEconomic Recovery Fund.3
(Riveness Cohere Mone. Piper)
would abolish the fund ascriticism that economic dent
pro
cruse Local
0overrmuesn Committee heard testimony by
the League of Cities end the Assuciaiim of
Counties on H.F. 149 (13.O1smh). This bill
would have granted audsority to counties to
increase appaopriatiwns for economic
development and require county approval
for all now and modified ciq' TIF districts.
Bill passage failed 9-11. Alter tiathmr
.ussion. the bill was amended to delete
county TIF approval sections and keep
uaact the increased appropriation section
The bill was paned to Rep. Ann Rest's
(612-296.4176) Taxes Committee.
Wednesday. to House Taxes
Committee began heating testimony on
H.P. 147 (O2mem). This bill has seven)
provisions that would further restrict TIF.
The bill was amended as follows:
• Restricts economic development TIF
assistance to only companies in risk of
moving to another state.
• Municipality must find that TIF use will
'lfmasa employment or tax base.
Restricts use of soil districts to
pontamination and pollution clean-up only.
U Requires cost -benefit analysis.
• Requires school district approval for
housing districts.
• Limit pooling to 10%.
• Requires flnemW reporting to State
Auditor's Office and requite 0.1% of
increment to go to Auditols Office for
administrative expenses.
• Requires davebper/recipiew of TIF to
nay all of pan of TIF assistance ice if they
ve or fail to carry out activities.
Acquires Newspaper disclosure.
districts for commercial projects to cities
under 5,000 in population with per capita
tax base 106/• below mate average.
• Further mstrictions on pre -1990 districts.
• Requires Met Commit to study TDF.
Nota: All local TIF bills have been passed
out of the House Local oovermsern/Metro
ARaits Committee tad sem to Taxes On
Thursday, the San= TIF subcommittee
heard 16 local bills and laid them over to
the full committee for further dmu sson.
Wubn' Cosnerusdlon IOfosrs:
Nava week the Swims Jobs, Energy,
Community Development will hear
testimorry on S.F. 717 (Rurbeck) on
workers' compensation reform. Major
provisions of the bill include:
• Sem mutimuc3 compensation for
permanent total dinbility at 65% of
statewide weekly wage and changes
defirtitiom.
• Imposes pendtiez on employers for
injuries caused by failure to compty with
Mmes or orders.
• Provides for Dept of Labor fraud unit.
• Creates new advisory council.
• Eliminates economic recovery and
impairment eampemations.
• Sets new schedule for maximum weekly
compensations.
• Changes survivors benefits.
• Changes dispute resolution procedures.
Bill t
ZEL- S.F. 903 (Rirenoss) Repeal
Economia Recovery Loan Fuld
LL S.F. 909 (Vickerman) Removes cap
on county appropriuior for economic
development; county approval of TIF.
Companion to H.F. 149.
Local TlF: S.F. 953/H.F. 1237 - Duluth,
S.F. 961/H.F. 1200 - Crookston
Workers' Coma.* S.F. M (Krerttz)
S.P. 937 04ovakX S.F. 960
(Chendlsr)/3I.F. 12N (Dawkins);
S.F. 1020 (Novak); H.F. 114$
(Bettermarm). H.P. 1147 (Vanftan)
• Limits the use of Eco naaic Development Waacc S.F. 912 ().!arty) Raiw minimum
wage to 56.50 by 7/1/97.
H.F. 1108 (Settetman) Making
changes cam Prevailing Wage Law.
S.F. 971 (Betzold) raises min -wage by
90 mems over 2 years.
%I4. Welfare: S.F. SW (Berglin)
Identical to H.F. 869.
Gambling- H.F. 1095 (OuhotT)
Constitutional amendment to prohibit
all gambling and repeal current
gambling laws.
G�
Next Wetly Hrartrm Schad k&:
Monday" Manch 13: House Labor
Marngemem: H.F. 414 (Peterson)
Requires businesses receiving state
assistance to pay living wage.
12:30 pm, 200 SOB.
Tuesday. March 14: Sansta Jobs,
Energy. Community leve!opmam:
Begin testimony on S.F. 302 (Kelly)
Minimum Wage. S.F. 717 (Runback)
Worked Compensation Reform.
10:00 am, 107 CAP.
Wednesday- March IS: Serrate Jobs,
Energy, Community Development:
Continuation of S.P. 717 (Runbeck)
Worker' Compensation Reform.
10:00 am, 107 CAP,
Hates Taxes - Property Tax At TIF
Subcommittee: Will cotimse
testimony an H.F. 147 (Ozmem)
8:00 am, 200 SOB.
Thursday. Much 16: Senate lobs,
Energy. Community Development:
Continuation of S.F. 717 (Rumbeck)
Workers' Compensation Reform.
10:00 am. 107 CAP.
Ay" rat up=on mnev lora2
l ditlative laslsm, McaningfW
worker' comprnaation reform;
keep tax increment financing a
viable progrlun; lhnding of DTED
Economic Recovery Fussed;
oanmercial property tax reform;
ED competition between states.
t
TIF SUMMARY
REVENUE AND EXPENSES
12/31/94
Total cash balances as of 12/31/94 (surplus)
Debt service funds $237,081
HRA - TIF projects X22
$555,703
Total TIF revenue projected to be received over
districts life (based on 1994 TIF revenue) 94.909-718
TOTAL POTENTIAL REVENUE $5,485,421
Total debt, loans, & developer agreements
outstanding & payable as of 12/31/94
Bonds & Interest $1,765,072
Loans & Interest $352,860
Developer agreement obligations
(pay-as-you-go districts) 9615,086
52119.784
Potential excess TIF revenue over expenditures
at the end of all current TIF districts $3,345,657
TIFRE VEX.WK4: 03/16/85
SUMMARY
TIF - DEBT SERVICE FUNDS
12/31/94
1989A
HRA
1990A
1984
1985
1987A
18878
ELDERLY
1990D
1992
1992D
TOTALS
KMART
--EM
BAWDANCE
,i'O NSLd
HAWCO
HOUSING
REMMELE/
TAPPER
AROPLAX
SUBURBAN
ALL BONDS
7TH
Cash Sur3hrs(de w)1/1/94
$27.563
$41,185
$53.495
$28,973
$28.353
$30,559
$25,927
$8,237
$5,155
$249.449
$96.156
REVENUE -
EVENUET.wtster
T. w tsleirin from HRA (tax maemems)
$0
S37,250
:x47,625
$25,050
$30.875
$29,633
$25,142
$17,975
$9,975
$223.525
$91.300
Imaresi Income
$a
$408
5420
5229
5331
52@2
SE4D
sm
599
52.229
I=
TOTAL REVENUE
$76
$37.658
$48.045
$25.279
531.206
$29,915
$25,382
$18,128
$10,064
$225.753
$92.128
EXPENSES:
Pr-cpW Payment
525,000
$15.000
$35,000
$20.000
$5.000
$15,000
$15.000
50
50
$130.000
$60.000
IrCeresl ExpertSe
$1.094
$23,950
$15,868
$7,105
S21,608
$12,410
$10,530
$7,800
$4,875
$105,240
$30,340
Payng A0eM Fees
5546
$43D
54.44
5426
5952
5232
5196
SD
$Il
52.881
$226
TOT 1L EXPENSES
$26.740
S39.380
$51.362
527.531
527.065
$27.642
525.726
$7,800
$4,875
$238.121
$90,566
Cash SurpLz(deflci)12n1/94
$899
$39.464
$50.178
$26.721
S32.494
$32,832
$25,583
$18.565
$10.344
$237,081
$97,718
g7nW bond debt
$155.000
$350.000
$365,000
$155,000
$260.000
$165.000
$140,000
$120,000
$75.000
$560.000
OuSMnd rl0 pond dept
$0
$285,000
$205,000
$70,000
$245,000
$135,000
$110,000
$120,000
$75,000
$445,000
as Or 12131/94
PaymenS cue in 19%
Principal
50
515.000
$35.000
$20,000
$10,000
$20,000
$15,000
$10,000
$5,000
$65,000
Interest
$0
$22.825
$13.558
55.355
$20.969
$11,065
$9,078
$7.475
$4,712
536.480
Payig Agem Fees
$0
$475
$442
$475
$476
$302
$256
$0
$0
$520
11 of years left to tn"_ect TIF
0
18
17
2
15
5
5
6
7
5
T01a1remaatinp ammmisto be pad
$0
$1.244.628
51,281,188
$79.726
$664.500
$169,825
$120,980
$117.138
$90,713
$3.768,698
(based on 1994 TIF)
rFsum riKl 03nsgs
C=h Sum (OMC1t1 ,,,IBI
(REVENUE: 1
TetW
TO4 trtverllam I
ktt>asl u%+OIiW
I Bon0 poaeDs 1
I
(EXPENSES
5el0ref
PERA
FICA 1
H -11h
Prof pemwa-Wo I
'ol 4eW(M!-.w
"CUCOr11.4ChootS
LIKIN PublGeoort4
Property tau» I
mtta4st aWor om
Au1Opal ePoreY dwt 1
Twnt. o pmt 4orvrCY
A4nc oO10 etyvne
T1F LDOrt 1
Lune eCy—� 1
I,ISi lS
1 C mit_014'w' 10-holll m L94 I
ADDITIONAL NOTES
�R01 L-
0% aper R - n 5011
Ou"U"w 9 i— bAW— m of 1 MI&I
ou m"ov dwIsI- n summm 4
.mptorR 12!(1/91
payrronL' 0- n 1985
a V— b71 b cobw TIF
Tata) p b m m ropow d (bmw- 1991 nFl
HRASUM.WKt: 03/15%
HRA FUND SUMMARY -12131/94
DIST rx I osT �
D6T Ni YETCALF�II DIST DIST DL4T I9 NAM• DtgT RII DIST ft DIST I DIST MO DIgT At 1 DIST
III LAR8ON DD I CONST J DANCE NArVCd NSP TAPPER NEIAMI
$15,7191 Qt,6911 $188611 (f3832,11 5597„ 178765, !393101 $39071 W962 1178— f224' 11.
101
901 91)
S01
$44,3001 s0
Sol
Sol 60
Sol
S01 so
501
s0i N
ml
I
I
I
S443Wi Sl7
I
I
I
to
$1 5341 1 $450 1 1
1 118616 1 1 1 $12801 1
$17,0501 1 82,0001 1
s30 5751 1 547,625 537.250 $2, 050 -,1421 $17,975
636751 {320001
DMT 016
6191551 1 1
1 $23,0001 1 1
1 1
DIST 019
I 1
$175001 I 64291731
Sol
so
990,476
$140ooI
I
CANOPY]
POLY CABT
$175W 6426.1731
SoI.
sof
925,349 I
f 94,1201 f
f I
of
151
0 0 171 to
21 41 51 J
51 61 91
$01
9604,500
9D s0 61,101,168! 51,244,6711
970,7261 $18,1"al 1/200601 $IG99i51
913,6511 $117,138 95M.Wo
DMT 016
DIET 019
DIST 019
D197O14,
CUSTOtl
DISTIII I
DIST O17
RIVER
YtS9.1
GENERAL.'IBIIRBANI
CANOPY]
POLY CABT
FAYYAR
MILL
SMD9ES
Nq�
tOTA�I
M2.072y
IS6.Mg)
so
f0
101
$01
S/47.1151
S 05.091 1
f01•
f01
501
$01
117.1071
117 1071
S01
901
$12,959!
SOI
IDI
Wi
101
Sol
S01
$331056'
WI
10.1
60SOI
$01
$01
5114611
$114611
WI
W1
So
so I
ml
W.1
SDI
so'
spl
101
—1C1
s01
_ _ s01
SOI
SS VA
SS.00Qi
512.8591
1111
141
$01
�
so-,
i 3;3W_6�Z
$711291
170261
53151
$315
1
SSW 1
15m
14471
5447.
52674.1
SSW
$20021
55,712
Il W!
$1,2401
2 621 I
I
I
sol
1
ya
9519,
S27G1
S 1 OR2
I
I
I
I
I
I
I
I
I
I
I1HSi
Sa
1
1
641131
14,0001
11,162
$11 446'
1
I
19848
59,9751
_
S19050
I
1—
I
1223$^
I
I
1
_17.70 ___ion
$11 �P2;-12Htfu.
10,
__iR.filpl
16.281!
i116_oR61 196 oa6L
Asa
761
So_ 90__
$1fiP,IP1,
}18781
675000'
teo oral
W74131
1
1
$102000
--•
-
'
SW COO
$750001
W7413
$102 000
71
$90,7131
$63,184
11G2,2071 9174y789�_$155y^04
_ _ _
$4 fA'7tH
Frees: Meisel Te: W. 00. Kw.Pcsr fhb: 014f T1s: oosaw
ECONOMIC DEVELOPMENT
DTED
Mirmnota Dapastraerd of Tnds �V
Fs000mk Development ,IV -
I
Camra: Oen oodmr4 61b297-1168
1.800457-J8le
M—;
k In Ravkw:
lbeowry F\vVC.
d this week to Recovery Fun, Cohen, Morser)
olish the fund that economic �, . ......
Ouse Local
Oovemment Committee heard testimony by
the League of Cities and the Association of
Counties on H.F. 149 (E.Olson). This bill
would have granted authority to counties to
increase appropriations for economic
development and require county approval
for all new and modified city TIF districts.
Bill passage failed 9-11. After further
rVscussion, the bill was amended to delete
cowry TEF approval sections and keep
buuct the increased appropriation section
The bill was passed to Rep. Arm Rest's
(612-296.4176) Taxes Committee.
Wednesday. the Howe Taus
Committee begun hearing testimony on
H.P. 147 (Ozmem), This bill has several
provisions that would further restrict TIF.
The bill was amended as follows:
Restricts economic development TEF
«i61.na to only companies in risk of
moving to another gate.
• Municipality must ford that TIF use will
increase employmem or tax base.
• Restricts use of soil districts to
contamination and pollution clean-up mdy.
• Requires tout -benefit analysis.
• Requires school district approval for
housing districts.
• Limits pooling to 10%.
• Requires fuuncial reporting to State
Auditors Office and requires 0.ISi of
increment to go to Auditces Office for
administrative expenses.
• Requires developer/recipiens of TIF to
repay all or pan of TIF assistance J they
ve or fad to Cary out activities.
..equlres Newspaper dtselosuss.
Nash 10. 1995
Voh— L M6. to
Paas t ol t
UPDA TE
EDAM
Economic Development AasoeFatlwl
of Minnesota
Camact: Jahn Moan. 6J2454-6215
districts for commercial projects to cities
under 5,000 in population, with per capita
tax base 101/6 below state average.
• Further restrictio6n on pre -1990 districts.
• Requires Met Council to study TIF.
Nob: All local TIF bills have been passed
out of the House Local Oovemmem/Metm
Affair Commitee card sent to Taxes. On
Thursday. the Senate THF subcommittee
heard 16 local bills and laid them over to
the full committee for further discussion.
V VQ&m' Cosrlame ion Ralb m:
Next week the Senate Jobs, Energy,
Community Development will hear
testimony on S.F. 717 (Rundeck) on
workers' compensation reform. Major
provisions of the bill include:
• Sets minimum compensation for
permanent total disability at 65% of
statewide weekly wage and Changes
definitions.
• Imposes penalties on employers for
injuries caused by failure to comply with
statute or Orden.
• Provides for Dept. of Labor fraud unit.
• Creates new advisory council.
• Eliminates economic r- very and
impairment compenutions.
• See new schedule for mu t..um weekly
compnaatiom.
• Changes survivors benefits.
• Changes dispute resolution procedures
Bill h! i
W.; S.F. 903 (Riveneu) Repel
Economic Recovery Loan Fund,
rX- S.F. 909 (Vickerman) Removes cap
on county appropriations for economic
development; cowlty approval of TIF.
Companion to H.P. 149.
Local TI'_; S.F. 953/H.F. 1237 - Duluth,
S.F. 961/H.F. 1200 - Crookston
Workers' Come.: S.F. 895 (Kmnti)
S.F. 937 (Novak); S.F. 960
(Chsrdler)IH,F. 1204 (Dawkins);
S.F. 1020 (Novak); H.F. 1143
(Beaanamn); H.F. 1147 (Van tgan)
• Limits the use of Economic Development %NAM S.F. 912 (Marty) Raises minimum
wage to 56.50 by 7/1/97.
H.F. 1108 (Betterman) Making
changes state Prevailing Wage Law.
S.F. 971 (Betzold) raises minwage by
90 cents over 2 years.
Q=. Welfare: S.F. 860 (Berglin)
Identical to H.F. 869.
9amhli-- H.F. 1095 (Osdwff)
Constitutional amendment to prohibit
all gambling and repeal current
gambling laws.
Nast Weeks lfsadrm Schedule:
Mord►v. March 13: House Labor
Management: H.F. 414 (Peterson)
Requires businesses receiving state
assistance to pay living wage.
12:30 pm, 200 SOB.
Tuesday, March 14: Senate Jobs,
Energy, Community Development:
Begin testimony on S.F. 302 (Kelly)
Minimum Wage. S.F. 717 (Runbeek)
Workers' Compensation Reform.
10:00 am, 107 CAP.
Wednesday. March 15, Senate Jobs,
Energy, Community Developmem:
Continuation of S.F. 717 (Runbeck)
Workers' Compensation Reform.
10:00 am, 107 CAP.
House Taxes - Property Tax Q TIF
Subcommittee: Will continue
testimony on H.F. 147 (Ozmem)
8:00 am, 200 SOB.
Thursday, March 16: Senate Jobs,
Energy, Community Development:
Continuation of S.F. 717 (Runbeckl
Workers' Compensation Reform.
10.00 am, 107 CAP.
►= pis upmue Ntm•ev 12n
Is0shafivehlaantq Meaningful
workeW compensation refmmi;
keep tax iacretttent (planting a
viable program; funding of DIED
Economic Recovery Fund;
umunemial property tax refunn;
ED a mtpetition betwoen states.
S P E C I A'L
E D I T 1 0 N
March 1995
INSIDE
A Financial Advisor for
Your Future .......... I
What Does This Mean For
You ................ 2
One Stop Shopping.... 2
Profile of Publicorp .... 3
EMfers and Associms, Inc.
Mils owwstetter a—wwe+ the
merger gfEhlm and
Asswiarrs and PuNknrp 17r
cotnAleed trsatrrcts of our
frau set a mw staidard fi r
fbronc4d ach-1mr). eervlcu
We look fa and to WOW
Wlh Jsw abow this exciting
chatrgrIt rill chww how
Jou thhd antra o fiww d
adWuv.
7010 N,—rst Center
00 \ouwh 71h ,Ctner
AflnmrMwdb. ALV33401
(e12) )39 x101
Corpmwe a}nda..Sutte ::!
J73 fiAhopt Way
BrwWeld 1073JO03
(414)78J -1J20
Ehlers Advisor
Leaders in Public Finance Saxe 1955
�.
Announcing the Merger of
Ehlers and Associates, Inc.
7 and
Publicorp, Inc.
Setting a New Standard
for Financial Advisory Services
A Financial Advisor For
Your Future
In 1995, Ehlers and Associates celebrates
Its 400th birthday 'as a leader in public
finance.' This birthday marks 40 years of
high quality, client -oriented service to
cities, counties and school districts in this
region. Birthdays are a chance to look
ahead. We know that the next 40 years
will present new challenges.
Local government finance becomes
increasingly complex with each passing
day. There are no easy answers or simple
solutions. To help you meet the challenge,
we are pleased to announce the merger of
Ehlers and Associates. Inc. and Publicorp,
Inc. This merger provides you financial
advisory servicer based on tested and
effect ive municipal financial strategies and
solutions enhanced by additional depth
and a broader spectrum of services. In
combining the collective skills, resources
and services of both 0rms, we establish a
new standard for financial advisory
services. This enhanced capability
provides you the financial advisory services
you need to meet today's challenges and
those that Ile ahead
Sincerely.
Ehlers and Associates, Inc.
%, re4�(Jit_i
Steve Apfelbacher, CII'FA
President
Carolyn Drude, CIPFA
Board Chairman
Ehk„ Acivitwr . Special F n , - t
What does this mean for you?
It means that you can expect more from us. We are
going to build on our base of solid financial advisory
services and a commitment to meeting your needs. The
Financial Advisors in our Minneapolis office:
• Steve Apfelbacher
• Carolyn Drude
• Robert Ehlers, Jr.
• Rusty Fifidd
• Kent Johnson
• Sean E.entz
will continue to serve you supported by all the resources
in our company. Our clients are the focus of everything
we do and we will continue the top quality service that
has always been a part of the Ehlers' tradition.
At one time, a public financial advisor could he just a
bond consultant. Issuing and rnanaging city, county and
school district debt was the focus of a public financial
advisor. Times have changed. While the ability to
finance capital projects remains very important, debt is
not the solution to every problem facing local
government. To help you solve these problems, we must
provide meaningful assistance in a broader range of areas.
This need Iles at the heart of our merger.
The merger of Ehlers and Publicorp creates a new
standard for public financial advisory services. In asking
the question "What does this mean for mel" you will
find several characteristics which dearly distinguish the
new Ehlers/Puhlicorp.
O Understanding
Service Is built on understanding. To serve you we
will:
• Understand your community and your needs.
• Understand the increasingly complex world of
local government finance.
• Ilelp you understand your options and their
I mpl icat inn.
4 Creating Effective Solution
These three words describe what you expect from
Ehlersalublienrp. Creating • Making, producing,
causing to be. Solutions • The problem is solved.
EffMipe • It works for youl
pate 2
6 One size Does Not Fit All
Every community. every project is unique.
Ehlers(Publimrp brings you a blend of tradition and
innovation. We combine a 40 -year history of client
service with a proven ability to 'think outside of the
bOL
4 Committed to Zero Defects
The term quality has become very popular and is
frequently misused. Every firm talks about it, but
many don't tell you what it means. At
Ehlers'Publicorp, the standard is zero defects.
Analvsis cannot be 99% correct. Bond issues cannot
almost" close. Our advice cannot be "substantially'
correct. We will not accept another standard.
Neither should you.
WYSIWYG
With Ehlers/Nblicorp, what you gee is ghat loxt pct.
You will see a tram of experienced financial advisors
on every project. You will continue to he served by
the same financial advisor. You will also scc
specialists with ezpenlw in the areas that are
important to you. You will see our financial advisors
working with you to solve problems. You will ser a
difference.
One Stop Shopping
Ehlers/Publicorp provides a spectrum of services
unmatched by other financial advisory firms I lere are
brief summaries of how we can serve you.
Debt hwance and Management
For 40 years. Ehlers and Associates has helped cities.
counties, school districts and other governmental units
Issue and manage debt. Helping you find and Implement
financing for capital Improvements will continue to he the
foundation of nor lutsirims, (_)or apprnach to tichi
issuance focuses on:
• A thorough understanding of the capital finance
options available to foal government.
• Balancing tested solutions with a constant search for
better ways to meet your needs.
• Ilelping you deal with changes in govemmental
regulations and market conditions.
• An issuing process that works Oawlessiv.
Economic Development 40
Economic development Is the primary goal for most state
and local governments. Attracting a strong
D
Ehlers Advisor - Smut Edklon pan 3
commerciallindustrial tax base requires a multi- f ed income and starter homes. Regardless of the specific
approach to development. With the no routs need, cities are being asked to play an increasing role in
restrictions applied to local economic devel ment, finding solutions. Ehlers/Publicorp's approach to housing
communities must be able to identify and termine looks beyond issuing bonds. We help you answer the
available resources to attract new businesses existing important questions:
firms that are growing.
Ehlers(Publicorp is poised to assist you with all o ser
economic development efforts. We rcalize, as do you,
that the solution goes beyond simply throwing incentives
in front of every business which is shopping cities. We
are completely familiar with the traditional means of
attracting development such as industrial park
infrastructure, tax increment financing, and low interest
\ loans; but wT also focus on the more specialized, tailored
\1 means unique to your community.
As a financial advisor to numerous municipalities,
counties. HRAs and EDAs in the State of Minnesota.
Ehlerw?ublicorp assists cities in the review of developers'
proposals. We analyze pro formas and determine the
accuracy of the developers projections and, concurrently,
the developers' actual necessary amount of public
subsidy rather than simply the amount of subsidy
available. I/
legis
Actions of the State Legislature increasingly influence
local government. property taxes, local government aid,
school funding and tax increment financing are just some
of the critical issues that change with the Legislature
every year. No other financial advisor can help you link
your financial planning to legislative action. Corte
Ranieri has over 20 years of experience in working with
the legislative process and creating positive results. With
Ehlers/publicorp you get:
• Information. We help you understand the
legislative process and its Implications for your
community.
• Opportunity. Ehlers/Publicorp Is uniquely equipped
to help you act in anticipation of new legislation
and to seize the opportunity provided by legislative
change.
• Solutions. Special legislation offers the opportunity
to define new solutions. EhlerOltahlicorp can help
you design legislation and shepherd it through the
legislative maze.
Housing
Every community faces housing steeds - single-family and
multi -family, senior, student, congregate care. low
• What factors influence the decisions of the private
developer?
• What roles can you play in housing?
• How much financial assistance is needed?
• Are •essential function* bonds worth the risks?
• What factors make the project successful? How do
changes in these factors affect the project?
How can we look beyond this project and create a
long-term strategy?
tegic Planning
bile cities have often focused on the land use and
hysical aspects of long-range planning, more and more
ties are concerned with the fiscal implications of the
future. How has the growth of the community influenced
the funding of public services? What do we want our
community to be in the future? What are the financial
implications of this vision for the future? To help you
answer these questions, Ehlers(Publicorp provides a
variety of strategic pi'anning services:
• Consolidation and annexation studies
• Long range planning for operations and capital
Improvements
• Fiscal impact of comprehensive plans
• Municipal service studies
• Utility rate and fee studies
Education
Publicorp Is known for its accredited seminars on tax
increment and other public finance Issues.
Ehlers/Publicorp will continue this tradition with a
legislative update seminar in early June, 1995. In
addition, Ehlers/lhthlicorp staff are available to present
seminars for city councils, regional meetings, and other
groups on a variety of topics upon request.
Ehlers Welcomes Publicorp
Publicorp, Inc, brings a ten-year history of creative
consulting services. The original focus of the Omt was
educational programs. Publicorp remains widely
recognized for its seminars on housing, development and
redevelopment activities. Over the years, the firm has
grown in expertise and entities in the areas of public
Eiders Advhw - foedal Edition
finance, economic development, housing and
governmental relations. The greatest asset of the firm is
an experienced and talented staff. We are very pleased
to welcome Kristin, Sid, Gene and Mark to our team.
Kristin Hanson
Kristin Hanson has experience in the public, private and
non-profit sectors. Her areas of expertise include polity
and legislative analysis, particularly in the areas of public
finance. She services as financial analyst in structuring
debt issuance for cities and assists in the creation and
modification of various types of tax increment financing
and general legislative issues.
Kristin is a member of the Economic Development
Association of Minnesota. Prior to joining Publicorp.
Kristin worked with the Minnesota House of
Representatives. She was a recipient of a Congressional
Fellowship, working with a subcommittee for the U.S.
House of Representatives Committee on the Judiciary.
She has also served as an administrative fellow for a
research center at the Humphrey Institute of Public
Affairs.
Kristin is a Cum laude graduate of St. Olaf College.
Northfield, Minnesota. She received her M.A. in Public
Affairs from the Hubert H. Humphrey Institute,
Universitv of Minnesota.
Sidney C. Inman
Sid Inman brings a broad background of computer
science, computer modeling, system deelupment and
programming. financial analysis and accounting to public
finance transactions, particularly those that contain
public and private components. He assists clients with
creative and useful economic analysis which can be
utilized in structuring and monitoring prnjects.
Sid has financial planning experience on large-scale
public/private partnership projectc and is a founding
partner in Publicorp. Prior to his work with Puhlicorp.
Sid was Director of Finance/Central Services, City of
Fridley, Minnesota.
Sid graduated from the University of Northern lawn with
a B.A. In Business Administration; he attended the
Universities of Northern Colorado and Alaska and
received his M.S. in Public Administration. In addition,
he has three vears of advanecd doctoral studies at the
University of Minnesota.
Pate 4
fugtm Ranieri
Gene Ranieri, Director, Governmental Affairs, has broad
public policy experience. He has served local governments
as a researcher, budget officer and intergovernmental
coordinator. In the latter position, he has been involved
in the formation of legislation in such areas as public
finance, development, and housing polity taxation. He
represents public clients at the Minnesota legislature and
assists in development programs, plans and negotiations
with state and regional agencies. He also represents the
Minnesota Chapter of the National Association of
Housing and Redevelopment Officials (NAHRO) and the
Minnesota Association of Local Housing Finance
Agencies.
Prior to his work with Publicorp. Gene was with the City
of St. Paul from 1971 to 1978 and was Hennepin
County's gwemmental relations officer from 1978 to
1985.
Gene is a graduate of St. John's Universitv with a R.A. in
History. He received his M.A. In Public Affairs from the
Hubert hrey Institute. University of Minnesota.
Ruff
rk Ruff structured the sale and refinancing of
numerous multi -family housing developments and is
familiar with local, state and federal programs targeted for
new construction and rehabilitation. His areas of
expertise include housing finance, property taxation
polity, cost/benefit analyses, and the impact of
environmental concerns upon development.
Mark has spoken at seminars including the Minnesota
Department of Trade and Economic Development Star
Program Conference and the annual conferences National
Association of Housing and Redevelopment Officials
Minnesota Chapter - on environmental Issues, tax
increment financing, and housing finance. He is a
member of the Economic Development Associatinn of
Minnesota and the Minnesota Government Finance
Officers Association. Prior to joining Publicorp. Mark
worked with the United States Environmental Protection
Agency In its Office of Federal Activities and has sated as
a staff person in the home office of Congrmman Byron L.
Dorgan of Nonh Dakota.
Mark graduated Summa cum laude from Concordia
College, Moorhead, Minnesota. He received his M.A. In ,)
Public Affairs fmm the lluben 11. Humphrey Institute,
University of Minnesota.
MEETING
Wednesday, February 22, 1995 - 7:00 p.m.
Hospital Board Room, Hospital Lower Level
TO: Monticello City Councilmembers & Staff
Monticello HRA Members & Staff
Monticello Hospital District Boardmembers & Staff
HRA Attorney Steve Bubul
Dan Lindl, Presbyterian Homes
Lenny Kirecht, PRG, Inc.
FROM: 011ie Koropchak.
A meeting of the above parties has been set for Wednesday, February
22, 1995 at 7:00 p.m. in the lower level of the Hospital. The
purpose of the meeting is to define the senior housing project, to
review the approved TIF budget, and to discuss other "gap"
financing options for funding the proposed 48 -unit multlhousing
facility or $3,500,000 project. The project must casliflow and
establish rents and income levels to meet the "Qualified Housing
District" test.
At the HRA meeting of January 26, 1995, the non -effected HRA
members approved a TIF budget of $220,830.
Please make every effort to attend.
TIF DISTRICT NO. 1-19 BUDGET
c
REQUESTED
APPROVED
APPROVED
MODIFICATION
JAN 26,
JAN 11
JAN 26
1995
LAND ACQUISITION
$120,000
DEMOLITION/REMOVAL
$ 7,500
7,500
$ 71500
SITE IMPROVEMENTS
STORM SEWER
15,440
15,440
15,440
SANITARY SEWER
18,950
18,950
18,950
WATER
3,400
3,400
3,400
PUBLIC IMPROVEMENTS
UTILITY REALIGNMENT
12,000
12,000
12,000
FIRETRUCK PATH/HYDRANTS
10,000
10,000
BIKE/PED PATHWAY BRIDGE
10,000
10,000
10,000
SITE PREPARATION
39,208
39,208
39,208
OTHER PREPARATION FOOTINGS
15,675
15,675
15,675
PARKING/PAVING/LANDSCAPING
48,657
48,657
48,657
SUBTOTAL
$170,830
$300,830
$180,830
CONTINGENCY
20,000
61,170
20,000
ADMINISTRATION
20,000
44,000
20,000
TOTAL
$210,830
$405,000
$220,830
c
MEETING
Wednesday, February 22, 1995 - 7:00 p.m.
Hospital Board Room, Hospital Lower Level
TO: Monticello City Councilmembers & Staff
Monticello HRA Members & Staff
Monticello Hospital District Boardmembers & Staff
HRA Attorney Steve Bubul
Dan Lindl, Presbyterian Homes
Lenny Kirscht, PRG, Inc.
FROM: 011ie Koropchak.
A meeting of the above parties has been set for Wednesday, February
22, 1995 at 7:00 p.m. in the lower level of the Huspital. The
purpose of the meeting is to define the senior housing project, to
review the approved TIF budget, and to discuss other "gap"
financing options for funding the proposed 48 -unit multlhousing
facility or $3,500,000 project. The project roust castiflow and
establish rents and Income levels to meet the "Qualified Housing
District" test.
At the HRA meeting of January 26, 1995, the non -effected HRA
members approved a TIF budget of $220,830. See the January HRA
minutes which have not been approved by the memberrs.
Please make every effort to attend.
I
TIF DISTRICT NO. 1-19 BUDGET
APPROVED
MODIFICATION
LAND ACCJISITION
$120,000.00
DEMOLITION/REMOVAL
$ 7,500.00
7,500.00
SITE IMPROVEMENTS
STORM SEWER
15,440.00
15,440.00
SANITARY SEWER
18,950.00
18,950.00
WATER
3,400.00
3,400.00
PUBLIC IMPROVEMENTS
UTILITY REALIGNMENT
12,000.00
12,000.00
FIRETPUCK PATH/HYDRANTS
10,000.00
BIKE/PED PATHWAY BRIDGE
10,000.00
10,000.00
SITE PREPARATION
39,208.00
39,208.00
OTHER PREPARATION FOOTINGS
15,675.00
15,675.00
PARKING/PAVING/LANDSCAPING
48,657.00
48,657.00
SUBTOTAL
$170,830.00
$300,830.00
CONTINGENCY
20,000.00
61,170.00
ADMINISTRATION
20,000.00
44,000.00
TOTAL
$210,830.00
$406,000.00