HRA Agenda 11-01-1995AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November I, 1995 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Everette Ellison, Tom
St. Hilaire, and Roger Carlson.
STAFF: HRA Executive Director 011ie Koropchak.
GUEST: Bill Tapper, Genereux Fine Wood Products, Inc.
I. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE OCTOBER 4, 1995, HRA MINUTES.
3. CONSIDERATION TO REVIEW THE MODIFIED FINANCIAL PROPOSAL
FOR THE TAPPER'S EXPANSION PROJECT AND APPROVE AMENDING
THE AMENDED PRIVATE REDEVELOPMENT CONTRACT.
4. CONSIDERATION TO REVIEW THE APPRAISAL FOR LOTS 1,2,3,445,
BLOCK 64 AND N 40 FT OF VAC RIVER ST LY S OF BLK 64 AND TO
AUTHORIZE PREPARATION OF A PURCHASE AGREEMENT.
5. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING TO BEGIN
PREPARATION FOR CONDEMNATION OF BLIGHTED PROPERTY FOR
PURPOSE OF REDEVELOPMENT -PARCEL NO. 155-S1p) )334I)3.
6. CONSIDERATION TO REVIEW THE PROPOSED ITINERARY AND TO
APPROVE UTILIZATION OF HRA FUNDS FOR EXPENSES ASSOCIATED
WITH A GRASSROOTS APPROACH TO REDEVELOPMENT PRESENTED BY
THERESA WASHBURN.
7. CONSIDERATION OF AN UPDATE RELATING TO THE HRA LETTER OF
OCTOBER 20,1995.'1'0 COUNCII-MEMBERS.
K. CONSIDERATION TO APPROVE: ENFORCEMENT OF THE AGREEMENT
BETWEEN THE HRA AND METCAI.F/LARSON RELATING TO THE 20 FT
WIDE INGRISS/EGRESS EASEMENT.
9. OTHER BUSINESS.
o) Authori»tion to pay bills.
b) Minnesota NAHRO Community Development Conference, Thursday,
November 311, R-3 p.m., Sheraton Minneapolis Metrodome.
c) Other.
\ Ill. ADJOURNMENT.
A
Pages 1, 2, & 3 are copies of the modified financial proposal for the Tapper's
expansion as prepared by PRG. It is the intent of Minnesota Business Finance. Inc.
to review the SBA application for the proposed expansion in early November. You
will note the TIF portion of $25,000.
In January of 1995, the HRA approved amending the original Private
Redevelopment Contract to assist the Tappers with $30,000 for site improvements.
This payment upon 90% completion of the additional improvements. The monies
was allocated from TIF Surplus Funds. The $30,000 upfront would be recaptured
from the tax increment generated over the remaining life of the 10 -year district.
Based on a 18,000 sq ft manufacturing expansion, the total new estimated market
value was $1,225,000. Construction of the expansion did not occur in 1995,
therefore, the Tapper's request consideration to amend the amended contract.
The new request is for $25,000 of TIF assistance, construction beginning and
completed by 1996, fully assessed on January 2, 1997, payable in years 1998 and
1999. The district decertifies February 20, 2000.
Mr. Bill Tepper will be present at the HRA mating. The HRA should confirm that
the building expansion still remains at approximately 18,000 sq ft. Also, note the
request for $10(1,000 from the GMEF.
Pages 4 through 10 are excerpts from the amended contract and assessment
agreement. Pagers I I and 12 are summaries of the modified TIF Plan and amended
contract.
z
J;N-16-'00 MON 06:01 ID: TEL N7: USM P02
BM_GEWATER
FANCIALGROUP
• • • MEMORANDUM • • •
TO: 011ie
FROM: Debby Oustafson
I
DATE: October 30, 1M
RE: TAPPERS, INC.
Attached is the revised structure for the expansion of the Topper's, Inc. tsci ty in
the -City of Monticello. The request to the City of Monticello needed to be
increased to SIODAW in order to meet SBA's collateral requirements.
Place review this information and give me s call if you have any questions. Also,
place let me know if I can provide you with any Information regarding the loran
request to the City.
. O.
4=01ADOMMLIMIMM 0 &M t0 0 . _ M MN Link 0 MM a00oM 0 0=6624M s 025BUM tX
r
JP14-16-100 MON 06:02 ID: TEL NO: am P03 _
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V
PRO -MCT FINANCINQ
The following is a listing of the uses and sources of funds for the building
expansion project and the -purchase of new equipment:
Building Construaion $710,000
Equipment Purchase 190,000
soft Costco�s_ttne
SUBTOTAL $9751000
SBA Debenture Fees UM
TOTAL USES OF FUNDS ,L$jM
Marquette Bank 5460,000
SBA 304 • 403,000
City of Monticello GMEF 100,000
City of Monticello TIF u_000
TOTAL SOURCES OF FUNDS
• Includes SBA Debenture Pricing
The company currently has an SBA 304 loan an its existing facility. The
outstanding balances on those loans are as follows:
t-7 4 Bank - $300,534
SBA - $338,236 r�
V
JAN -16-'00 MCN 06:02 ID: TEL N0: WEN PO4
`j The company received its SBA loan in 1990 and has therefore exceeded the
three-year limitation regarding seasoned loans. Accordingly, the overall
sources of financing, with a subordination of the first SBA 504 loan, will be
as follows:
n er_t_ Cn-gr'F.0 nF Fa$
Marquette Bank (first lien) $760,554
SBA 5% (second lien) 338,236
SBA 504 (third lien) 403,000
City of Monticello t3MEF (fourth lien) 76,576
City of Monticello GMEF (fifth lien) 100,000
FDUNCIAT, QVIRVMW
Following is a summary of the historical sales and profitability of the
(. company.
YL4R I
ULW I NBT 1 ICOMst8V61iB TAXES .
HISTO§kC
1993
$2,949.412
S 55.377
1994
$3.443.747
$ 86.657
1995
$4.239.755
$1,0,2.657
9/30/9S•
S2.887.165
511011691
PRC EIEC=
1996
54.495.230
MASS
1997
55.743.837
$249.635
1998
57.112.935
S407AS9 .
• Represents operations for the eight months ended September 30, 1993.
�W v O
AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the � day of . 199E by and
between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA, a public body corporate and politic (the "Authority").
established pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (hereinafter
referred to as the "Act"), and WILLIAM R. AND BARBARA R. TAPPER, husband
and wife (collectively, the "Redeveloper") .
RECITALS
WHEREAS, the Authority and the Redeveloper have entered into that certain
Contract for Private Redevelopment dated duly 13, 1990 (the "Original Contract") ;
and
WHEREAS, pursuant to the Original Contract the Authority conveyed the
Redevelopment Property as described in Schedule A hereto to the Redeveloper and
the Redeveloper constructed the Minimum Improvements as defined therein; and
WHEREAS, the Redeveloper has proposed to construct certain additional
improvements on the Redevelopment Property and has requested certain additional
assistance from the Authority in order to make such improvements financially
feasible; and
WHEREAS, the Authority believes that the redevelopment of the Project Area
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the
vital and best interests of the City and the health, safety, morals, and welfare of its
residents, and in accord with the public purposes and provisions of the applicable
State and local laws and requirements under which the Project has been undertaken
and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations
of the parties hereto, each of them does hereby covenant and agree with the other
as follows:
1. Construction of Additional Improvements. (a) In addition to the
Minimum Improvements previously ted by the Redeveloper, the Redeveloper
shall construct an approximstelg��uare foot manufacturing facility (the
"Additional Improvements") on the elopment Property. Prior to commencement
of construction of the Additional Improvements, the Redeveloper shall submit
Construction Plans for the Additional Improvements to the City Building Official,
wh,, shall review such plans on behalf of the Authority. The Construction Plana shall
provide for the construction of the Additional Improvements and shall be in
conformity with the Redevelopment Plan, this Agreement, and all applicable State
and local laws and regulations. The City Building Official will approve the
Construction Plans in writing if: (i) the Construction Plans conform to the tetras and
conditions of this Agreement; (li) the Construction Plans conform to the goals and
objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all
applicable federal, state and local laws, ordinances, rules and regulations; (iv) the
Construction Plans are adequate to provide for construction of the Additional
Improvements; (v) the Construction Plans do not provide for expenditures in excess
of the funds available to the Redeveloper for construction of the Additional
Improvements; and (vi) no Event of Default has occurred. No approval by the City
Building Official shall relieve the Redeveloper of the obligation to comply with the
sasw-sa
Baia -31 1 (S)
terms of this Agreement or of the Redevelopment Plan, applicable federal, state and
local laws, ordinances, rules and regulations, or to construct the Additional
Improvements in accordance therewith. No approval by the City Building Official
shall constitute a waiver of an Event of Default. If approval of the Construction
Plans is requested by the Redeveloper in writing at the time of submission, such
Construction Plans shall be deemed approved unless rejected in writing by the City
Building Official, in whole or in part. Such rejections shall set forth in detail the
reasons therefore, and shall be made within 30 days after the date of their receipt
by the City Building Official. If the City Building Official rejects any Construction
Plans in whole or in part, the Redeveloper shall submit new or corrected
Construction Plans within 30 days after written notification to the Redeveloper of the
rejection. The provisions of this Section relating to approval, rejection and
resubmission of corrected Cunstruction Plans shall continue to apply until the
Construction Plana have been approved by the City Building Official. The City
Building Official's approval shall not be unreasonably withheld. Said approval shall
constitute a conclusive determination that the Construction Plans (and the Additional
Improvements constructed in accordance with said plans) comply to the Authority's
satisfaction with the provisions of this Agreement relating thereto. Construction
Plana shall be modified only in accordance with Section 4.2(b) of the Original
Contract. -ks e.x
(b) Subject to UnSVo dable Delays,r shall commence
construction of vements IIM�r 1„ 19 d shall complete
construction by�ber 31 199 All other prt, l,,,,, -: VL sections 4.3 and 4.4 of
the Original Contraclappiy W) substituting the term "Additional Improvements" for
the term "Minimum Improvements."
2. Authoritv Reimbursement for Certain Site Imerovement Costa. In
addition to the assistance provided under Section 3.7 of the= Contract, the
Authority agrees that It will reimburse the Redeveloper for a portion of the cost of
preparing the Redevelopment Property for construction of the Additional
Improvements. Specifically, the Authority will reimburse the Redeveloper for up to
$30,000 of the cost of undertaking excavation, landscaping, and curb construction
necessary in connection with development of the Additional Improvements. Prior to
the Redeveloper's commencement of such site improvement activities, the
Redeveloper shall furnish to the Authority for its review and approval plans and
specifications relative to the construction of �rovemente. The Authority
shall reimburse the Redeveloper for up t 30 000 f the coat of such site
improvements at such time as the Redeveloper plated 900 of the Additional
Improvements, as certified by an independent architect retained by the
Redeveloper. Reimbursement by the Authority shall be conditioned on the
Redeveloper riot being In material default under this Agreement at the time such
reimbursement 1a requested; provided, however, that the Authority shall first give
written notice to the Redeveloper of the existence of the Redeveloper's default,
which notice shall include a description of the nature of the default and the actions
required to be taken by the Redeveloper to cure such default.
3. Tax Increment Guarantee. Section 9.1 of the Original Contract is
modified to provide that, beginning in calendar year 1997, in the event that the Tax
Increment generated by the Tax Increment District in any year until the Maturity
Date Is lose than $34,800, the Authority shall provide written notice to the
Redeveloper of such fact and amount of the deficiency in Tax Increment. The
remainder of Section 9.1 and 9.2 of the Original Contract shall continue to apply
without modification.
9.mma90S
Mgo-31 2
4. Assessment Agreement. Upon execution of this Agreement, the
Redeveloper and the Authority shall enter into an Amended and Restated Assessment
Agreement substantially in the form attached hereto as Schedule B. The Amended
and Restated Assessment Agreement shall provide that the Minimum Market Value of
v er with the Additional Improvements shall be
$�s o as o January 2, 9981
S. Financln¢. (a) Before commencement of construction of the Additional
improvements, the Redeveloper shall submit to the Authority evidence of one or more
commitments for mortgage financing which, together with committed equity for such
construction, Is sufficient for the construction of the Additional Improvements.
Such commitments may be submitted as short term financing, long term mortgage
financing, a bridge loan with a long term take-out financing commitment, or any
combination of the foregoing. Such commitment or commitments for short term or
long term mortgage financing shall be subject only to such conditions as are normal
and customary in the mortgage banking industry.
(b) If the Authority finds that the mortgage financing is sufficiently
committed and adequate in amount to provide for the construction of the Additional
Improvements then the Authority shall notify the Redeveloper in writing of its
approval. Such approval shall not be unreasonably withheld and either approval or
rejection shall be given within thirty (30) days from the date when the Authority is
provided the evidence of mortgage financing. A failure by the Authority to respond
to such evidence of mortgage financing shall be deemed to constitute an approval
hereunder. If the Authority rejects the evidence of mortgage financing as
inadequate, it shall do so in writing specifying the basis for the rejection. In any
event the Redeveloper shall submit adequate evidence of mortgage financing within
thirty (30) days after such rejection.
(c) In the event that there occurs a default under any Mortgage authorized
pursuant to this Section, the Redeveloper shall cause the Authority to receive copies
of any notice of default received by the Redeveloper from the holder of such
Mortgage. Thereafter, the Authority shall have the right, but not the obligation,
to cure any such default on behalf of the Redeveloper within such cure periods as
are available to the Redeveloper under the Mortgage documents.
8. Insurance. The Redeveloper shall comply with all requirements set
forth in Section S.1(a) of the Original Contract as applied to the Additional
Improvements. The remainder of Article V of the Original Contract shall apply to the
Additional Improvements as well as the Minimum Improvements.
7. Prohibitions Acainat Assiapment and Transfer; Indemnification. All
provisions of Article VIII of the Origfnal Contract shall apply to the Additional
Improvements as well as the Minimum Improvements.
8. Effect of Amendment. All other terms of the Original Contract remain
in effect and are deemed to apply to the Additional Improvements as well as the
Minimum Improvements. Unless otherwise provided herein or the context clearly
requires otherwise, the term "Minimum Improvements" in the Original Contract shall
be deemed to include the Additional Improvements. All capitalized terms used herein
have the meaning provided in the Original Contract unless the context clearly
requires otherwise.
Mona
"Pilo -it
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly
executed in its name and behalf and its seal to be hereunto duly affixed and the
Redeveloper has caused this Agreement to be duly executed in its name and behalf
on or as of the date first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Its Chir n
By
Its Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
�, ..The foregoing instrument was acknowledged before toe this •01 day of
199s' bAL CARSON and OLL E KOROPCHM the Chair
eautive biry ector of the Housing and Redevelopment Authority in and for the
City of Monticello. Minnesota, a public body politic and corporate, on behalf of the
` Authority.
Notary public
MARLENE J. HELLOAN
M, 000 M M. r, moo
Mom
Wiwi%
D
� REDEVELO
PER?
_
u
B:. tapper
r�
X4arbesa R. tapper r
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument waa acknowledged before me this �o qday of
a , 1g4f'by William R. Tapper and Barbara H. Tapper, fius5aad and
wife.
Notary Public
to oun
nate-»
MAF LENEJ. FIEU.WN
lutes Wsm . IpI0pE86i11
Mo ft. .Me-$1.IMP
11
AMENDED AND RESTATED ASSESSMENT AGREEMENT 4"
"t THIS AGREEMENT, made on or as of the 20th day of _1&yaav 149,5CIby
and between HOUSING AND REDEVELOPMENT AUTHORITY W AND FOR THE CITY
OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of
Minnesota (the "Authority") and WILLIAM R. AND BARBARA R. TAPPER, husband and wife
(collectively, the "Redeveloper").
RECITALS
A. The Authority is administering a redevelopment project (the "Project") pursuant
to Minnesota Statutes, Chapter 469.
B. The Authority and the Redeveloper entered into a Contract for Private
Redevelopment dated as of July 13. 1990 (the "Redevelopment Contract") regarding the
redevelopment of certain property located in the Project and legally described in Exhibit A hereto
(the "Property").
C. Pursuant to the Redevelopment Contract the Authority and the Redeveloper entered
into an Assessment Agreement dated July 13 1990(the "Original Assessment Agreement") and
filed in the offices of the Wright County Recorder on July 13 ,1922
Document No. 415934 under which the parties thereto established a minimum market value of t� j
1750,000 for the Property and the improvements constructed thereon, pursuant to Minnesota 13�
Statutes, Section 469.177, Subdivision 8.
D. The Authority and the Redeveloper have entered into that certain Amendment to
Contract for Private Redevelopment of even date herewith (the "Amendment"), pursuant to which
the parties agreed to enter this Amended and Restated Assessment Agreement.
E. The Authority and the Redeveloper have determined that it is necessary and in the
public interest to amend the Original Assessment Agreement as further provided herein, in
accordance with Minnesota Statutes, Section 469.177, Subd. 8.
F. This Agreement has been approved by the City Council of the City of Monticello
in accordance with Minnesota Statutes, Section 469.177, Subd. 8.
G. As of the date hereof, the estimated market value of the Redevelopment Property
for the most recently available assessment is equal to or greater than the minimum market value
established by the Original Assessment Agreement.
NOW, THEREFORE. the parties to this Agreement, in consideration of the promises,
covenants and agreements made by each to the other, do hereby agree as follows:
I. The minimum market value which shall be assessed for the Property described in
Exhibit Atovether t ovements thereon, for ad valorem tax purposes, shall be
aI..uJ,tl�)t� as of Junua 2, 1y96.
snalsry 1
M%170111
'Al IM:
M
2. 't ire minimum market value herein established shall be of no further force and
effect and this Agreenrnt shall terminate on the earlier of the following:
(a) the date of receipt by the Authority of the last tax increments from the tax increment
financing district in which the Property is located: or
(b) February 26, 20M.
3. This Agreement shall be promptly recorded in the Office of the County Recorder,
Wright County by the Redeveloper. The Redeveloper shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
they be construed as, modifying the tennis of the Redevelopment Contract or the Amendment.
S. This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the parties. 71ris Agreement supersedes the Original Assessment Agreement in
all respects.
6. in the event any provision of this Agreement shall be held invalid and
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
7. This Agreement may not be amended nor any of its terms modified except by a
writing authorized and executed by the parties hereto.
g. This Agreement nuty be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
9. This Agreement shall be govemed by and construed in accordance with the laws
of the State of Minnesota.
10. Nothing herein shall limit the discretion of the Assessor to assign a market value
to the property and improvements thereon in excess of the minimum market value specified
herein nor prohibit the Redeveloper from seeping through the exercise of local or administrative
remedies a reduction in such market value for property tax purposes, provided however. that the
Redeveloper shall not seek a reduction of such market value below such minimum market value
in any year so long as this Agreement shall remain in effect.
uwre5
MNrsn.fl
10
TIF PLAY
TIF PLAN FOR TIF DISTRICT NO. 1-9
NAME OF PROJECT: TAPPER'S INC.
PROPERTY DISr,RIPTION: LOT 4, BLOCK. 2, OIP
KIND OF DISTRICT: ECONOMIC
DATE OF CERTIFICATION: APRIL 30, 1990
DATE OF APPROVAL: FEBRUARY 26, 1990 MODIFIED AUGUST 13, 1990
NOVEMBER 28, 1994
LIFE DURATION OF DISTRICT: 10 YEARS
TIF BUDGET: $125,000.00 MODIFIED BUDGET:
$140,000.00
LAND: $77,500.00 AUG 13, 1990
$ 74,000.00
SITE IMPROVEMENTS:
$ 15,500.00
PUBLIC IMPROVEMENTS:
ADMINISTRATION: $15,000.00
$ 14,000.00
OTHER: $32,500
$ 36,500.00
BOND AMOUNT: $140,000.00
HRA LOAN: TERMS:
TRANSFER FROM TIF POOLING: $30,000.00 FOR EXPANSION
PROPOSED BUILDING SIZE: 25,000 SQ FT
18,000 SQ FT
OFFICEIMANUFACTURINO
ADDITION
ESTIMATED MARKET VALUE (EMV): $750,000.00 MODIFIED:
$475,000.00
TAX RATE: 81.843 TAX RATE
PROJECTED TAX INCREMENT - ANNUAL: $27,458.00
TOTAL:
ANTICIPATED HACA PENALTY: DOES NOT APPLY
HACA LOSS RECOVERED:
ESTIMATED JOB CREATION: 25 ORIGINAL
15 ADDITIONAL
MODIFIED
BUDOET: I1-28-94
TOTAL
$180,000.00
LAND
$ 74,000.00
SITE
S 45,500.00
ADMIN
$ 14,000.00
OTHER
8 46,500.00
i
okk
REDEVELO>P>!ONT CORTRACT
V NAME OF REDEVELOPER: WILLIAM R TAPPER AND BARBARA R TAPPER
AMOUNT OF TIF ASSISTANCE TO DEVELOPER: $99,000.00
ASSESSMENT AGREEMENT: X YES NO
ASSESSMENT AGREEM!:"T RECORDED: JULY 23, 1990
AMENDED: FEBRUARY 8, 1995
MINIMUM ERV: $750,000.00 AMENDED: $1,225,000.00 (1995)
COMMENCEMENT DATE OF CONSTRUCTION: SEPTEMBER 1, 1995
COMPLETION DATE OF CONSTRUCTION: DECEMBER 31, 1990
DECEMBER 31, 1995
COMPLETION DATE OF SITE IMPROVEMENTS:
UPFRONT: X YES NO
AMOUNT OF UPFRONT LAND WRITE-DOWN: $74,000.
DATE OF LAND WRITE-DOWN PAYMENT: 30% COMPLETION - REQUEST
SEPTEMBER 25, 1990
REDEVELOPER CASH: $1.00 ,
AMOUNT CF UPFRONT SITE IMPROVEMENTS: $15,500.00 AND $30,000.00
DATE OF SITE IMPROVEMENT PAYMENT: JULY 10, 1991. UPON
CERTIFICATTON OF 90% COMPLETION OF ADDITIONAL IMPROVEMENTS 18,000
SQ FT. (DEC 31, 2995.) ROT
LETTER OF CREDIT: X YES NO
AMOUNT AND TERMS OF LETTER OF CREDIT: $23,500.00 THRU MATURITY
DATE OR UPON REVIEW
DATE OF LETTER OF CREDIT: JULY 2, 1990 (ONE YEAR)
RECEIVED PROOP OF INSURANCES: X YES NO
PAY -AS -YOU -00: YES X NO
AMOUNT OF PAY-AS-YOII-GO (NPV) AND TERMS -
AMOUNT OF SEMI-ANNUAL REIMBURSEMENT:
DATE OF SEMI-ANNUAL REIMBURSEMENT:
r-ERTIFTr.ATE OP COMPLETION RECORDED: MARCH 11, 1991
r,IIARANTEED TAX INrREMENT• IN 1992, NOT LERS THAN $2$,000 ANNUALLY
IN 1997, NOT I.ERS THAN $34,RnO ANNUALL
L
5.5
A
Enclosed independently of the agenda is a excerpt of the appraisal completed by Mr.
Eull of R.A. Field & Associates. Mr. Maxwell was contacted; however, no longer
does appraisals and Mr. Dragged would be a conflict of interest as a member of the
Planning Commission.
Also enclosed to the agenda is information provided to the HRA at the October
meeting, a map, and summary of the available HRA and TIF balances.
The From Street and riverbank frontage each total 330 fat. The westerly side is
approximately 132 feet and the easterly side approximately 70 feet.
The river from setback is 50 fat and the front street setback is 30 feet, in other
words, the three easterly lots are not buildable because of setback requirements.
The westerly two lots have approximately 52 fed (de)th) remaining with a sideset
back of 20 feet.
The property lies in a flood plain and is buildable one foot above highest water
level. The house was constructed in 1917 and the total I and 1/4 story house square
footage is approximately 1,924 sq ft.
If the HRA wishes to authorize Mr. Bubul to prepare a purchase agreement,
determination of the following is advised:
Purchase Price -
Eatnest Money -
legal Title (Seller/Buyer Evidents) -
Taxes/Speciel Assessments ,.A rC
Relocation Costs -
Expiration date -
tt
October 12. 1995
MON TICELLO
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (612) 295-2711
Metro: (612) 333.5739
Fax: A612) 295.4404
Mr. Richard A. Field
R.A. Field & Associates
520 Northeast 218th Avenue
Cedar, MN 55011
Dear Mr. Field:
On behalf of the Housing and Redevelopment Authority (HRA) in and for
the City of Monticello, I hereby authorize you to prepare an appraisal for the
property described as Lots I, 2, 3, 4 & 5, Block 64 and N 40 ft of vac River
St ly S of Blk 64. City of Monticello. The PID# is 155-010-064010. Current
owners are Richard E. & Marian K. Carlson located at the property address
of 225 Front Street. The said property is zoned R•1 (Single Family
Residential).
According to HRA Attorney Steve Bubul, the appraisal in the amount of $250
is sufficient for the purposes of th^ HRA. The purposes are to consider
acquisition and demolition or relocation of the house for development of a
city park as part of a potential downtowNriverfront redevelopment project.
The acquisition is supported by the Planning Commission and Parks
Commission of the City of Monticello.
Enclosed is a Zoning Map of the City of Monticello per your request. If you
should have any questions, please feel free to call me at 295.2711. 'Me nest
Mr. Field
October 12, 1995
Page 2
scheduled meeting of the HRA is November I, 1995; however, it is not
absolutely necessary to have the appraisal completed by that date.
Sincerely,
Housing and Redevelopment Authority
in and for the City of Monticello Q
\1�tr
011ie Koropchak
Eve Director
cc: HRA File
W
HRA AGENDA
OCTOBER 4.1995
.11' . YY• I .11 ..K .� Yl � _.l.i : , 111 �.YI\ ,l�.�f1 '.:� �.. !IF
A. Reference and Back&pund:
Mr. Rich Carlson. Real Estate Agent, will brief the HRA of his conversations with
the willing sellers (owner occupied).
This property located along Front Street and with Mississippi River frontage was an
area previously earmarked for future redevelopment by the HRA. Listed is
information from the Tax Boots Payable 1995.
PIDIt 155-010-064010
EMV $126,700
LMT $103,700
Special Assessments 1995 3365.88
P
Remaining Balance of Assessments 31,111.98 - 4 years, 77-3 Street Impr.
HRA procedure to purchase:
1. Appraisal recommended.
2. Purchase Agreement prepared by HRA Attorney.
3. Relocation Costs. Willing sellers are entitled to relocation costs, must agree
to waive.
4. Consideration of demolition costs.
5. Revenue for purchase and demolition: Available TIF Surplus Funds.
6. Adopt resolution prior to demolition: Establish three year window which
allows the demolished structure to qualify within the test for establishment
of a redevelopment district.
Attached is a map outlining the lots under discussion.
Page I
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i HRA AGENDA
NOVEMBER 1. 1995
1 1 1 yl: l 1 l 1 11111 l.. 1 1. 1 1 .1 1 1 � 1! J I .: Y• 1
!1111 `lll 1:.11 1 � 1 , 111.M 1► .11.1. 1:1 Y 11111 yl � l ." \ 1
:lTl :111 7111 11!1A
At the October HRA meeting. Koropchak was directed to contact Mr. Kat unarek
to set up a meeting between Chairperson Larson, Mr. Katanarek. and Koropchak
relating to the HRA's interest to purchase the property. Koropchak contacted Mr.
Katmtarek by telephone and he was not interested in selling with or without
relocation costs and not was interested in meeting for consideration of HRA ideas
for redevelopment.
Enclosed is information provided to the HRA at the October meeting as prepared
by Publicorp, Inc.
As you may remember Mark Ruff of Publicorp advised the HRA not to consider
establishment of a Redevelopment District for several parcels including the State of
Minnesota lots because no resolution was adopted prior to demolition and removal
r of gasoline tanks on the old Gille property.
Mr. Bubul will prepare the resolution for adoption to begin the eminent domain
process relating to the Kau marek property. 'Rte HKA's intent is to deed the
property to the City of Monticello for the purpose of public green space.
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P.3/6
_`? 27 '95 0E::7PM E.'iLERS d=SSOC:ATES
0927195
Montwe to I+AA. Ouaktr g a Recavet9pmem Qistne
Page '
OPTION 1
Pard
Imtlr QMenla
PerCent 01
SSe d Patten
NIMICer of Numoer of
ParCal Nems Psreel NLn D
Scuam Pam
Souare Feet
C Qmga
Cctudled
BwWlnps 814med Bien,.
hanawa0 155-500-034305
12.000
7.818
71.92%
12,000
1
155-500-033401
",667
7.028
15.66%
",867
2 V
IBa"yw
Stateof MN 155-300-033402
10.890
5.000
45.91%
10.590
IStata of MN 155-500.033440
66.211
10.000
15.10%
65.211
-11(aumafcK 155-SO0033403
90.605
16,000
17.66%
90.605
2 21
Towmomt 1 155-072-0010"
lTo-'r-e
14,935
2.200
14.73%
14.335
2 155-072-001077
ITwnnome 7 155.072-0010"
14,935
14,935
Townnome 4 155-0724010"
14,935
ow+9rrome 5 155-072-0010"
14,935
Townnome 5 155-0720010"
14,935
owmmomo7 155-072-001o"
14.935
IT01al SOuare Fo0ro0e
329,117
239 SOB
5 41
�Parcm Conuttlp of
7277%
80.00% of bU4s ognted
IOf Dbmct aro Oavoiae
OPT10N 2
(parcel Name Pend Nwvt w
Square Feat
Sows Fed
a
owup!ed
Btatdega GbaMsd Blaoa.
IManaweR 155-500034106
12,040
11.618
3F. %
12.000
1
IBanysi 155-500433QI
".867
7.028
13.6E%
44.667
2 2I
of MN /SS600, 7 2
10,690
2000
16.77%
10.690
(Sate
State of MN 155-500477400
86.211
20.000
30.21%
66.211
Ka=aM K 15$640473407
90.605
16.000
17,86%
90.605
2 2
rota) Srruaro Fco=o
224 571
22•.573
I
5 4I
- Pareu t4mairtq of
100.00%
60.00.% of saga Wgntm
IOf Dfatmct are Ocauoted
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Enclosed is a copy of the proposed itinerary for November 15, 16, and 17. Please
mart the evening of 7bursday, November 16, 6:30 p.m. to hear Tterem's
presentation.
C
PROPOSED ITINERARY
NOVEMBER 15, 16, AND 17. 1995
Theresa A. Washburn
"A Grassroots Approach to Downtown/Riverfront Redevelopment"
(Endorsed by the Monticello Area Chamber of Commerce and the
Monticello Merchants Association)
(Sponsored by the Monticello HRA)
Wednesday, November 15 -Arrival the evening prior to the talk. Reservation for Theresa
at Silver Fox/Best Western (Reservation made.)
Tbuesday, November 16 -
7:00 a.m. - Meeting with the Industrial Development Committee (IDC), City Planner
Steve Grittman, and HRA Chairperson Al Larson.
9:00 a.m. - Breakfast with HRA Chairperson Al Larson, Planning Commission
Chairperson Dick Frie, City Planner Steve Grittman. Jeff O'Neill, and 011ie
Koropchak. (At Stella's Cafe )
Breakfast with the folks who worked on getting Theresa to come. This would
be a time to answer some questions based on information sent to her.
10:00 a.m. - Walking tour of downtown with ....
11:45 a.m. - Lunch with the officer of the Chamber and Merchants Association. Again,
this would be a chance to ask questions and get a broader perspective on
community feelings. (At Dino's)
1:15 p.m. - Driving tour of the whole town with
3:00-5:00p.m. - Time to put the talk together.
SOCIAL AND PRESENTATION
6:30 p.m. - Social: Snacks/beverages, November Chamber meeting, Arena entry (East
entrance) of Senior High School.
7:00-9:00 p.m. - Presentation by Theresa Washburn.
Public (Fliers and Advertise)
Friday, November 17
8:00 a.m. - Meeting with officers of the Chamber and Merchants Association to talk
about recommendations (Best/Western Conference Room reservations made.)
SAVING THE SOUL OF YOUR SMALL TOWN
THERESA WASHBURN Learn how to focus on downtown with specific
approaches and strategies used to revitalize numerous
Midewestem towns. Topics will include the importance
of incremental development, dealing with discount
retailers, using the town as a team, not looping for the
"big fu", ideas for economic restructing, promotions,
design, and other issues. Starting in 1989, Ms. Washburn
worked with the City of Viroqua. Wisconsin,
spearheading their renovation and revitalization efforts.
In three years. she helped find and focus $800,000 of
public and private money on the downtown, winning
numerous awards in the process, and the attention of the
-- —------- - - Wail-srred-IOlitt & and�mnhcnn... -MAj Rinne -More -----
recently, she has worked on revitalization programs for
eleven communities in Minnesota, Wisconsin. and Notch
Dakota.
(This an excerpt from the Minnesota State Planning Conference agenda.)
TEAM CAPTAINS
CHAMBER - Ron Hoglund and Bill Endres (Nov 2, 7:15 a.m.. Chamber Office)
MERCHANTS - Al Loch (Nov 1. 8:00 a.m.,Rhonda's Comer Cafe)
ROTARY - Warren Olson, Warren Smith, and Grace Pederson (Oct 31.7:10 a.m.)
LIONS - President John Zemlicka (295-2999), Mike Lundquist
MEDICALJMIMSTERIAL - Dr. Gleet Nemec/Father Bill Murtaugh
IDC - Ken Maus and Kevin Doty
—� EDA &_INDUSTRIES- - 011ie Koropchak
COUNCIL, PARKS, PLANNING, CITY ADMINISTRATION -Jeff O'Neill
HRA & HOSPITAL BOARD - Al Larson (Nov 1, 7:00 p.m. & Nov 2, 5:00 p.m.)
SCHOOL BOARD - Shelley Johnson
EDUCATORS AND STUDENTS - Mike Benedetto (Correct -Four)
(Thursday before the first Monday, info for teachers)
PEO -
SENIOR CITIZENS - Pam Loidolt, 295-2000
WOMEN OF TODAY - Lynne Tormoen (Nov 2, 7:00 p.m.)
HOSPITAL AUXILIARY - Shirley Anderson
JAYCEES - Tom Perrault, 784-8897 (Nov 6). m C
G
i
MON7 CELLO October 20. 199:
251) East Broadwav
P. O. Box 114;
Monncello, MX
5536_9:;5
Phone: 1612) 295-:711
Merro: (612) 333.5 39
Fax: (61'-) 295_{{p{
Dear Mayor Brad Fyle and Councilmembers:
At the HRA meeting of October 4, 1995, we, the members of the Housing and
Redevelopment Authority (HRA) in and for the City of Monticello. discussed the
comparative powers and composition of the HRA and the Economic Development
Authority (EDA). Attorney Steve Bubul summarized the general powers of the HRA as
housing and redevelopment and the general power of the EDA as economic development.
This was a reiteration of the presentation of the special Council meeting held
September 27. 1995.
At the October 4 meeting, each HRA member in attendance verbalized their opinion to the
strengths and weaknesses of the consideration to consolidate the HRA and the EDA.
Thereafter, we, the four members present, unanimously agreed and recommend that the
HRA and EDA am consolidate and that the existing two -commission organizational
structure continue.
We. the HRA members. agreed that the continuation of the established HRA and EDA was
the best long-term organizational structure for the City of Monticello because the two -
commission organizational structure offers a checks and balance system. Secondly. we. the
HRA members. agreed that the existing two -commission organizational structure has
worked well to the benefit of the developers and the city. lastly. we. the HRA members.
agreed that the preservation of the HRA preserves the non -tangible HRA assets of
historical value, experience, and familiarity of projects.
If the City Council views the roles of the HRA and the EDA as a duplication of efforts and
elects to consolidate the HRA and the EDA, then, we. the HRA members. agreed and
recommend that the HRA be preserved and the EDA consolidate into the HRA.
Mayor Fyle and Councilmembers
October 20. 1995
Page 2
We. the HRA members, feel the HRA is in a better position to address project issues
because of the HRA's historical value, experience. and familiarity of projects. Additionally.
we, the HRA members. feel preservation of the HRA would best retain the checks and
balance system. It is the legal opinion of Attorney Bubul that the HRA can administer the
Greater Monticello Enterprise Fuad (GMEF) as per the established GMEF Guidelines.
modified to reflect the redevelopment goals of the HRA.
Please do not hesitate to contact us for further discussion of the recommendations. The
HRA has moved forward to improve communications among the City Council and the HRA
by submitting approved HRA mmwm to Coumalmembers. Additionally, the HRA
Chairperson suggests panodic meetings be held between the Council. HRA. and other
commission members to improve communications. to network. and to focus on common
goals.
We, the HRA members, appreciate the City Council halving called the special meeting of
September 27 and agree the meeting outcome clearly outlined the comparison of the HRA
and EDA powers and composition. Additionally, the meeting outcome dearly defined as
orgenirational direction for the Industrial Development Committee (IDC).
�= We, the members of the HRA, request consideration of our recommendations.
Sincerely,
HOUSING AND REDEVELOP.%04T AUTHORITY
IN AND FOR TETE CM OF MONTICELLO
Al Larson Brad Barger Tom St. Hilaire Roger Carlson
Chairperson Vice-Chairpetson Member Member
AUok
cc: IDC
EDA
City Administration
Attorney Steve Bubu l
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