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HRA Agenda 04-06-1994AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 6, 1994 - 7:00 p.m. City Hall 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. GUESTS: Pat Pelstring, Public Resource Group, Inc. Stephen J. Bubul, Holmes & Graven. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE MARCH 2, 1994 HRA MINUTES. 3. CONSIDERATION TO REVIEW THE CONTRACT BETWEEN THE NRA AND PUBLIC RESOURCE GROUP, INC. 4. CONSIDERATION TO HEAR AND DISCUSS THE POWERS OF AN HRA AND LEGAL CHANGES IN TAX INCREMENT FINANCING. 8. CONSIDERATION FOR APPROVAL TO AMEND THE CONTRACT BETWEEN THE HRA AND JAY MORRELL AND TO AMEND THE PURCHASE AGREEMENT BETWEEN THE HRA AND RON AND DEE JOHNSON. 6. CONSIDERATION TO APPROVE A PRELIMINARY CONCEPT FOR THE USE OF TIF FOR THE GENEREUX FINE WOOD PRODUCTS EXPANSION. 7. CONSIDERATION OF HRA UPDATES: a) Custom Canopy, Inc. - See enclosed letter. b) Outlot A, Country Club Manor. C) Standard Iron Certificate of Completion. d) Next HRA meeting, May 4, 1994. B. OTHER BUSINESS. to. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 2, 1994 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Ben Smith, and Brad Barger. MEMBERS ABSENT: Everette Ellison and Tom St. Hilaire. STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. 1. CALL TO ORDER. HRA Chairperson Larson called the HRA meeting to order at 7:00 p.m. 2. CONSIDERATION TO APPROVE THE FEBRUARY 2, 1994 HRA MINUTES. Ben Smith made a motion to approve the February 2, 1994 HRA minutes. Brad Barger seconded the motion and with no corrections or additions, the minutes were approved as written. 3. CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDFSVELO?MFNT PROJECT NO. 1, MODIFYING THE TIF PLIi,NS j+OR TIF DISTRICTS NOS. 1-1 THROUGH 1-15, AND THE ADOPTION OF THE TIF PLAN FOR TIF DISTRICT NO. 1-16. Koropchak summarized the TIF District No. 1-16 Plan by stating the eleven -year District is projected to generate an annual tax increment of $18,024 for total of $162,216 which will sufficiently retire the projected District Budget of $80,000. The 16,640 aq ft manufacturing/office facility to be constructed on Lot 3, Block 3, OIP has an agreed upon minimum estimated market value of $400,000 for land and building. The rodeveloper, Schulz Properties, plans to begin construction May 1 with completion of the minimum improvements by October 1, 1994. One -hundred percent assessable January 2, 1995. Ben Smith made a motion to adopt the resolution modifying the Redevelopment Plan for Redevelopment Project No. 1, modifying the TIF Plans for TIF District Nos. 1-1 through 1-15, and the adoption of the TIF Plan for TIF District No. 1-16. Brad Barger seconded the motion and with no further discussion, the motion passed unanimously. The HRA found the project to meet the Monticello TIF policy, creates 6 new jobs for the state and retains 12 jobs, increases the tax base of the state, and discourages a business from leaving the county. Pago I HRA MINUTES MARCH 2, 1994 4. PUBLIC HEARING ON THE ACQUISITION AND DISPOSITION OF RAW LANDS DESCRIBED AS LOT 3, BLOCK 3, OIP, AND THE ADOPTION OF THE RESOLUTION RELATING THERETO. Chairperson Larson opened the public hearing on the acquisition and disposition of raw lands described as Lot 3, Block 3, OIP. The public hearing notice having been published in the local newspaper, February 16 and 23, to meet Statutory requirements. With no public comment or opposition, Chairperson Larson closed the public hearing and called for a motion. Ben Smith made a motion to adopt the resolution authorizing the acquisition and disposition of said raw lands to the Schulz Properties. Seconded by Brad Barger and with no further discussion, the motion passed unanimously. The project increases the state's employment and tax base. CONSIDERATION TO REVIEW AND ACCEPT THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND THE SCHULZ PROPERTIES. Koropchak reviewed the major terms and conditions of the Redevelopment Contract which has received a preliminary acceptance by the Schulz's attorney. The beginning and completion construction dates have not been determined; although, the project will be fully assessable by January 2, 1995. The beginning construction date will be determined upon bank and SBA financial approval. Marquette Bank has given preliminary approval; however, in the best Interest of the HRA the original $5,000 will be retained by the HRA until such time of land conveyance. Having reviewed and accepted the major terms and conditions of the agreement, Brad Barger made a motion authorizing the HRA Chairperson and Executive Director to execute the Private Redevelopment Contract between the HRA and the Schulz Properties. Authorization includes any minor changes to the agreement as recommended by Holmes 6 Graven, the HRA's Legal Firm. Al Larson seconded the motion and with no further discussion, the motion passed unanimously. 6. CONSIDEIQATxON TO kyPROVE JHEJM_INIMUM IMPROVEMENTS CERTIFICATE OF COIIPLETION AS RELATAS ;g TME PJRIVATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND THE BIRKELANDS, The NRA members reviewed Chairperson Larson, Building Official Gary Anderson, and Koropchak's assessment and determination of Custom Canopy's completion of minimum improvements as outlined Page 2 HRA MINUTES MARCH 2, 1994 In the agenda supplement. The group toured the facility on February 14. HRA members were disappointed that the Redeveloper had made no attempt to correct the minor non - complied items. Since the Redeveloper received inconsistent interpretations of the City Ordinance as to the number of curb cute allowed per 125 feet of street frontage, Brad Barger made a motion approving a completion date of the July 1, 1994 for the following items: Construction of a free-standing paint building and the screen -fence extended or trees planted to meet the screening requirement. Or the existing screen -fence extended or trees planted to meet the screening requirement. Completion of the lawn -seed germination. Additionally, the motion included that the Redeveloper take Immediate action to park the semi -truck within the screen - fenced area; erect the van -accessibility sign and address - numbers to the outside handicap signage pole and front of building, respectively; and install a screen -fenced gate to the southeasternly entrance along Fallon Avenue. A written notice to be sent to Mr. Birkeland noting that if minimum improvements are not completed by July 1, 1994, the Redeveloper Is in default of the Private Redevelopment Contract therebye will not receive the annual TIF assistance of $7.426.59. The motion was seconded by Ben Smith and with no further discussion, the motion passed unanimously. CONSIDERATION TO AUTNOJtjU EYECUTION OF THE SIGN LOCATION LEASE AGREEMENT BETWEEN THE FIRA AND WHITECO. Administrator Wolfsteller informed the HRA that the enclosed leases aro annual leases for the four billboards located on Outlot A in Country Club Mancr. Presently, the City has drafted a request for proposal and mailed to various Interested developers to encourage an exchange and development of the property. The returned proposals are due, March 15. Development interests in multi -housing includes senior housing, townhouse, and multi. Ben Smith made a motion authorizing the HRA Chairperson and Executive Director to execute the Sign Location Lease Page 3 HRA MINUTES MARCH 2, 1994 Agreements between the HRA and Whiteco. Seconded by Brad Barger and with no further discussion, the motion passed unanimously. CONSIDERATION OF HRA UPDATES: a) Public Resource Group, Inc. - Mr. Pelstring was unable to attend this meeting. The enclosed January -February billing was to be held without payment until said meeting between Mr. Pelstring and the HRA. b) HRA Purchase Agreement to Ron and Dee Johnson - Enclosed In the agenda was a copy of the agreement between the HRA and Jay Morrell for Lot 6, Block 3, OIP. The Purchase agreement dated February 28 between the HRA and Johnson was prepared by Holmes and Graven and thereafter mailed to the Johnsons. c) Congregate and Assleted-Living Senior Housing Proposals - Koropchak reported that Hospital Executive Director Barb Schwientek informed her that the Hospital District Concept Plan ror the proposed housing site to the east of the Monticello Clinic has not been completed by Taylor Land Surveyors. An unresolved issue between the City and the District must first be resolved before completion of the concept plan and thereafter a meeting with interested developers will be scheduled. At present, Ms. Schwientek has two developers interested in working with the District and HRA. d) Next NRA meeting, April 6, 1994. 9. OTHER BUSINESS. Assistant Administrator O'Neill summarized the enclosed letter stating there's no change in the statue of the Burlington Northern property and that JM Oil and Riverside will renew their respective annual leases. Additionally, Sunny Fresh is proceeding with their 4,000 sq ft expansion and exterior screening and upgrading. O'Niell informed the HRA members of a Planning Commission Public Hearing scheduled for March 3. The public hearing to rezone the Kjellberg property from B3, PZR, R1 to B3, B4, BC, PZM and a concept plan to zone the Kline property to R3 and R1. Applicant, Tony Emmerich. Page 4 HRA MINUTES MARCH 2, 1994 10. ADJOURNMENT. The HRA meeting adjourned at 8:15 p.m. G 9k�K� 011ie Koropchak, HRA Executive Director Page 5 NRA AGENDA APRIL 4, 1994 3. Consideration to review the Contract between the HRA and Public Resource Group, Inc. A. Reference and Backqround: At the February HRA meeting, members requested that Mr. Pelstring attend the March 11RA meeting to review the Contract between the two entities and to withhold payment to Public Resource Group, Inc. (PRG). Due to a previous commitment, Mr. Pelstring was unable to attend the March meeting and will be present at this April meeting. Billings Last year the HRA advised PRG that packaging fees associated with the application of SBA, CMIF, etc. funding were the responsibility of the project developer and not the HRA. The [IRA has not received credit for the 2.5 hours for the September 8, 1993 meeting (explanation of what happened with the H -Window). The HRA contracts for a flat $3,850 for creation of a TIF District and the City for a not•to-exceed $3,500 for application of State Grants. Also, enclosed is a copy of the summary of 1993 payments to PRG and a summary of the 1994 payments due. Contract Excerpts Page 2, I. SCOPE OF SERVICES, B. - PRO will provide marketing assistance on behalf of the City to identified prospects on a case-by-case basis. Those services would not be reimbursed. At City'3 option PRG will be reimbursed on an hourly or fixed fee basis. Page 3, II. PAYMENT FOR SERVICES, A., 1. Marketlnq Aoslotance. PRG will provide marketing assiotance to the City of Monticello'o prospects at no charge through the preparation of propo3al information. Once a prospect hao reached the otage where a letter of intent Io to be mailed or a prospect has requested a meeting, the City at ito diocrotion agrees to hire PRG at Ito standard fee of 875,00 per hour, or on a negotiated fee 3chodulo. Page 1 HRA AGENDA APRIL 4, 1994 Page 4, II. PAYMENT FOR SERVICES, A., 2., c. - The City and PRG recognize that the development of tax increment financing project will be conducted on a contingency basis. City payment for services shall include all variable staff time and expenses associated with each project. QUESTIONS 1. What's included in the TIF $3,850? 2. Define billable and non -billable marketing fees? Does not the HRA bring business leads to PRG? 3. Is follow-through for closing document preparation not a part of a Grant application fee? 4. Is the previous $435.00 billings for Polycast, Inc. considered part of the TIF $3,850? 5. If the HRA has not authorized payment for SBA, CMIF, or SCERG application, why is the HRA billed for this? How is this negotiated between PRG and the applicant? 6. What's included in the Grant fee of $3,500? 7. Define billable and non -billable consultant fees? CONCERNS 1. Structure proposals, upfront, consistent with the GMEF Guidelines and other agency guidelines. 2. As consultants for the HRA, what steps are taken to coordinate the application process with the applicant, landing Institution(s) and attorney(s)? 2. how might we enhance the follow-through from completion of grant applications to an Attorney preparation of closing documento? 3. How does PRG account for the estimated LGA/HACA lose within the TIF Plan? 4. Does PRG follow-through with the City's Attorney regarding development of the TIF Plan and its relationship to the Private Development Contract? 5. Does PRG have a contract with the applicant regarding a flat fee or hourly fee prior to the preparation of grant application? Aro coats outlined to the applicant? Is the applicant presented with an outline of the application process? Pago 2 PUBLIC RESOURCE GROUP, INC. 1994 PAYMENTS DUE Standard Iron & Wire Works. Inc. 1-11-94 Closing documents $ 18.75 2-14-94 Closing documents $ 75.00 3-31-94 Meeting at Standard Iron S 112.50 $ 306.25 H -Window Compav 1-11-94 Closing documents $ 18.75 2-18-94 SCERG S 37.50 Polcast Mfa. Inc. 2-24-94 Follow-up $ 56.25 3-31-94 TIF District No. 1-16 $3,850.00 3-31-94 SBA 504 S 168.75 TOTAL $ 56.25 $4,075.00 $4,437.50 L BUSINESS DEVELOPMENT SERVICES, INC 1993 PAYMENT SUMMARY CUSTOM CANOPY 4-16-93 SIB DISTRICT 1-15 N -WINDOW COMPANY 7-2-93 PROPOSAL 8-11-93 FOLLOW-UP *,tck '1S 10-13-93 FOLLOW-UP 11-10-93 SCERO ($3,500) 12-16-93 SCERG 12-31-93 SCERO (%Q STANDARD IRON 10-13-93 PROPOSAL 11-3-93 TIF DISTRICT 1-13 12-16-93 FOLLOW ONIGMEF TAPPER'S 12-31-93 TIP DISTRICT 1-9 NRA GENERAL R 3.850.00 $ 3,850.00 $ 1,725.00 $ 561.25 �- �` a • S g�` $,� 5� $ 586.75 -•So $ 2,025.00 $ 675.00 $ 112.50 $ 5,707.50 $ 1,372.50 $ 3,850.00 p 112.50 a 93.75 10-13-93 POLYCAST 8 PAMPERED PETS $ 570.00 11-10-93 PAMPERED PETS $ 393.75 12-16-93 POLYCAST 8 93.75 12-31-93 ADVANCED FOOD SCIENCES AROPLAR FOLLOW-UP 8 225.00 TOTAL 8 5,335.00 $ 93.75 8 1.262.50 816,268.75 ens Business Development Services, Inc. January 24, 1994 Ms. 011ie Koropchak City of Monticello 230 Fact Broadway P.O. Box 1147 Monticello, MN 53362 STATE IENT Consulting Services --December 13, 1993 through January 14, 1994 1-11-94 LPK—Follow-up w/ 011ie re: closing documents for Standard Iron, H -Window .50 NET CHARGEABLE HOURS: Net Chargeable Hours ® $75/Hour $37.50 TOTAL AMOUNT DUE�Q CURIE OVER 30 OVER OVER 44 $37.50 TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS 4205 Lancaator lane N. a Sutlo 1100• Mlnnea0W14 MN 55"1 • Phono: 6121550 -Me Fax; 5$00221 PUBLIC RESOURCE a GROUP, INC. February 24, 1994 Marketing, Development & Finance Specialists Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 STATEMENT Consulting Services—January 15, 1994 through February 14, 1994 1-20.94 LPK—Follow-up w/ 011ie re: Polycast .50 1-25.94 LPK--Follow-up w/ 011ie re: Polytatt, Stsndard Iron documentation for closing .50 2-g-94 LPK—Follow-up w/ Paul Weingarded-ft: closing documents .50 2-14-94 LPK—Paul Weingarden re: Standard Iron documents NET CHARGEABLE HOURS: 1.75 Net Chargeable Hours ® S75/Hour $131.25 TOTAL AMOUNT DUE A= CURRENT OVER 30 OVER 60 QYEffi $131.25 TERMS: pNppET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON 4205 Lancaster Lane Norm RRE11DOC`Ftinneapolis, Minnesota 55441 • (612) 55111979 ♦ (612) 5569221 Fax 1 a PUBLIC RESOURCE GROUP, INC. March 31, 1994 Marketing, Development & Finance Specialists Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Boa 1147 Monticello, MN 55362 STATLMMNT Consulting Services—February 15, 1994 through March 15, 1994 2-18-94 LPK—Polycast meeting with Bill Endres, Marquette re: SBA 504 1.50 LPK—H-Window Company .50 2-25-94 LPK—Polycast, bank and SBA financing .75 3-11-94 PWP—Meeting with Standard Iron I.SO NET CHARGEABLE HOURS: 4.25 Net Chargeable Hours ® S73/Hour $318.73 TOTAL AMOUNT DUE Lu= CURRENT OVER 4 am" X44 5318.73 TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS 4205 Lanmuer Lane North# Suite 1100 0 Minneapolis, Minnewm 55441 0 (612) M7979 ♦ (612) SS0.9221 Fix _ PUBLIC RESOURCE GROUP, INC. Markems, DetAopmmr Fl Finance Spedahm March 31, 1994 Ms. 011ie Koropchak City of Monticello 250 Fast Broadway P.O. Bos 1147 Monticello, MN 55362 Ps�atilis m of'1`� CS is No-146-frn Polycasi Initial project structuring with business; preparation of TIF data; determination of project future values and preliminary TIF financial analysis; review and confirmation of TIF plan; distribution of documents to County and School Districts; and certification of district. TOTAL AMOUNT DUE CURRENT OVER OVER.4l2 OVE R 29 53,850.00 TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS 4205 Lancaum Lane North* Suite 1100 • Minneapulb, Minnemm 55441 ♦ (612) 550.7979 0 (612) 5549221 Fax Suslam Deftlopffma Swvloes Inc. AGREEMENT BY AND BETWEEN BUSINESS DEVELOPMENT SERVICES INC. and the CITY OF MONTICELL.O HOUSING AND REDEVELOPMENT AUTHORITY This Agreement made and entered into on the 4th day of October, 1999, by and between the Housing and Redevelopment Authority of the City of Monticello, a Minnesota Municipality, (hereinafter referred to as "HRA"), and Business Development Services, Inc., a Minnesota corporation (hereinafter referred to as "BDS"). WHEREAS, the City of Monticello believes that communities are dynamic in the sense that they are constantly changing; and WHEREAS, the City of Monticello believes that the economy of Its community Is shaped by its active economic development program; and WHEREAS, the City has initiated its economic development program through Its Housing and Redevelopment Authority and utilizes Tax Increment Financing as a key component of Its economic development program; and WHEREAS. BDS seeks to assist the continued growth of the City of Mbnticello to provide economic development services and technical, professional assistance for Its Housing and Redevelopment Authority and its Tax Increment Financing program. 8000 SPMO&WON MR 9 SIM 230 0 MUOIDIPOU& M11ISM 0 PNONh 4131181~8131 NOW, THEREFORE, BASED UPON THE fUTUAL PROMISES AND CONSIDERATIONS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS: I. SCOPE OF SERVICES A. BDS will provide ongoing consultation services as requested, to the Housing and Redevelopment Authority and the City of Monticello to assist these agencies in the appropriate design of the economic development program. B. BDS will provide marketing assistance on behalf of the City to identified prospects on a case-by-case basis. Those services would not be reimbursed. At City's option BDS will be reimbursed on an hourly or fixed fee basis C. BDS will provide preliminary financial review, analysis and recommendations for the structuring of specific TIF development proposals. D. BDS will assist City staff and/or its designate in negotiating specific provisions of the development and assessment agreements associated with the City's TIF projects. E. BDS will assist in maintaining communications between City staff members and project developers utilizing the City's TIF assistance. F. BDS will assist in the collection of the required technical and financial data, draft modified TIF plans and coordinate the dissemination of the plans and related materials to other public agencies and will review and confirm data with the City's bond counsel 1 and fiscal consultant. G. BDS will assist in the preparation of materials for public hearings and the presentation of the appropriate information with the City and the Housing and Redevelopment Authority. H. BDS will monitor and assist in the collection of developer repayments, letters of credit and/or securities as required. 1. Other duties related to the City's economic development program and TIF programs as directed by the City and/or Housing and Redevelopment Authority. 11. PAYMENT FOR SERVICES A. The City agrees to payment for services as described in Section 1, as follows: 1. Marketing Assistance. BDS will provide marketing assistance to the City of Monticello's prospects at no c arge through the preparation of proposal Information. Once a prospect has reached the stage -3- where a letter of intent is to be mailed or a prospect has requested a meeting, the City at its discretion agrees to hire BDS at its standard fee of $73 per hour, or on a negotiated fee schedule. 2. Establishment of Tax Increment Financing Projects. At the City's determination, BDS will be utilized to assist in the design and preparation of TIF documents for the community's major projects. Fees for these services are as follows: a. For completion of data preparation, processing and certification of newly established or amended Tax Increment Financing District $3,830.00. b. For the completion of related development and assessment agreements - $830.00. c. The City and BDS recognize that the development of tax increment financing projects will be 0- conducted on a contingency basis. City payment for services shall include all variable staff time and expenses associated with each project. 3. Consultation for TIF protects. The City will, at its discretion, seek to complete the data and structuring for the community's smaller TIF projects. On this basis, BDS will be retained on an hourly fee of S73.00 to support the -p. process and to complete the appropriate documentation. B. BDS also agrees to provide an overall accounting of hours expended and fees that have been generated through this contract. It shall be BDS' and the HRA's intent to provide an overall hourly average rate, con- sistent with BDS staff fee schedule. IIt. ADDITIONAL PROVISIONS A. The City and BDS reserve the right to terminate this Agreement upon 60 days written notice. B. Each party to this Agreement binds himself and his partners, successors, executors, administrators, and assigns to the other party of this Agreement and to the partners, successors, executors, administrators, and assigns of such other party, in respect to all covenants of this agreement. Except as above, neither party shall assign, sublet, or transfer his Interest in this agreement without the written consent of the other. Nothing herein shall be construed as creating any personal liability on the part of any officer or agent of any public body which may be party hereto, nor shall it be construed as giving any rights or benefits hereunder to anyone other than the parties to this Agreement. -3- IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above Written. CITY OF MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY BUSRII?.SS DEVELOPMENT ERVICES INC. BY Patrick W. Pelstring, President BY 2Yw Mary A. Czech, Vice President -6- r HRA AGENDA APRIL 6, 1994 Consideration to hear and discuss the sowers of an HRA and leaal chances in Tax Increment Financina (TIF). Attorney Steve Bubul of Holmes 6 Graven will be present at the HRA meeting to answer any legal questions you may have. Please give some thought, prior to the meeting, about any unanswered questions you may have regarding the creation of the TIF Districts, Monticello's Redevelopment Project No. 1, or Private Redevelopment Contracts? Powers of an HRA. 1. Can an HRA levy? What is the maximum HRA tax levy allowed by Statutory? Are the dollars generated from the HRA tax levy determined by the levy amount times a municpality's total estimated market value or capacity value? What are legal expenditures for dollars generated by an NRA levy? a) Infrastructure in an industrial park? b) Downtown redevelopment? C) Housing projects? d) Contaminated land clean-up? Within the State of Minnesota, is the use of an HRA tax levy a common practice? (Name communities who use a levy and examples of its use.) What are some pros and cons of an HRA levy? What is the process to initiate an HRA levy? TIF Chanaes Define what the LGA/HACA Penalty is? Explain the legal changes regarding penalties within the recent years? Explain through the use of examples "How a City or an HRA may recover its penalty loss? a) 10% of a TIP District's tax increment for administrative costs or b) 25% of a TIP District's tax increment for expenditures outside the district. Must this be noted in a District's TIF Plan or Budget at the time of establishment and prior to plan distribution? Must a City or an HRA account for its loss and recovery? And How? To it wise to establish local guidelines for TIF use because of the LOA/HACA Penalty and its potential loss to a city? Page 1 LIN HRA AGENDA APRIL 6, 1994 Give examples, if any, of how other communities have utilized TIF to remove gasoline tanks or to clean-up contaminated soils? Or other financing options? 3. What TIF amendments are being proposed by the 1994 Legislators and do you foresee any proposed amendments becoming law? Page 2 HRA AGENDA APRIL 6, 1994 5. Consideration for approval to amend the contract between the HRA and Jav Morrell and to amend the purchase aareement between the HRA and Ron and Dee Johnson. A. Reference and Backaround: Enclosed you will find a letter from Mr. Ron Johnson in response to the HRA's purchase offer. I faxed the letter and Holmes 6 Graven's bill to Mr. Morrell, he is interested in pursuing a counter-offer. Upon legal recommendation, the HRA may wish to consider the following amendments to the Contract between the HRA and Mr. Morrell. 1. WHEREAS, the "Buyer" shall purchase the said raw lands from the "Authority" at a purchase price not - less -than nor not -to -exceed ($19,500) per acre; (immediate possession) 2. WHEREAS, the "Buyer" and the "Authority" agree that this Purchase Contract shall become null and quid upon the failure of the "Authority" to deliver an executed Purchase Agreement for the acquisition of the said raw lands from the "Sellers" at a purchase price not -to -exceed ($19,800) per acre; 3. WHEREAS, the "Buyer" and the "Authority" agree that this Purchase Contract shall become null and void (120) days from the contract execution date; and 4. WHEREAS, the "Buyer" shall provide evidence relieving the "Authority" of any legal or monetary responsibility regarding potential Hazardous Substanceo or Contaminations of the said raw lands. Thereafter the HRA may wish to consider amending the Purchase Agreement between the HRA and Ron and Dee Johnoon as agreed upon above: 1. The closing shall not take place later than 90 days following date of this Agreement; 2. The "Seller" to certify that the sold raw lands were free of any Hazardous Substances or Contaminations as of May 1, 1988. Page 1 HRA AGENDA APRIL 6, 1996 3. A purchase price of 819,500 per acre for a total purchase price of 8105,397.50 for the said raw lands. S. Alternative Actions: 1. A motion to approve the above stated amendments. 2. A motion to deny a counter-offer as requested by Mr. Morrell. C. Staff Recommendation: Upon legal recommendations and agreement between the NRA and Mr. Morrell, staff encourages the HRA to consider a ).counter- offer to the Johnsons. D. Supportina Data: A copy of Mr. Johnson's letter, HRA and Morrell Contract, and the Purchase Agreement. Page 2 r RON JOHNSON Karen 28, 1994 Box 35U Excelsior, Mn 55331 Tel: (612) 474-8171 Fax: (612) 938-2369 Mr. 011ia Yoropcnak HitA Executive Director City of Moatieallo 250 East Broadway P.O. Box 1147 Monticello, MN 55362-9245 RE: Lot 6, Block 3 Oakwood Iadustrial Park Dear Mr. goropchak: Thank you vary much for your letter offer with its att4CnWd..c3. While your offer is raesoaable for a stead aloaa uaimproved parca• it does tot reflect the true value of my improvdd pruparty to .._ aor to the adjoiaiag property aor its uaduthorized use by Mdusrd. Morrell 8 Plaisted, undoubtedly your ultimata buyers. Furcn.,r, they used my property since May 19d8 dad must certify they did aue contaminate my property or clean it up. Ia February 1988 1 was offered, througn my attorney, $187,000. Tn4 Latereated buyer was vary informed std aophistieatad La raal dataco .ratters dad had obtained iadepeadeat appraisals. That poteatlal buyer ultimately sold the adjoiniag property to Morrell 8 Pldiscdd for which ay property aarved as its western access dad parkiag lot. Morrell d Plaisted subsequeatly eoatactad as through my attor..oy and offered about $75,000. I refused their offer. They made ad counter offer to my eouater offer but, Lastead, offered to ro..0 the property. Their low rental offer, however, would not cover .ay expeases including insurance dad upkeep if the pruparty wad udod by tnem. I refused their offer dad, in the proseuee of .ay attorney, Morrell 8 Plsieted were laetructed .tut to trddpaed d..a tney agrded not to do so. Morrell 8 P141sted did trespass and use my property as the City i - award. After recsivlag your initial iaQuiry I Ladpectdd wy property and discovered that fact. Further iaQuiry Qdaoadtralad tnat Murrell 8 Plaisted appdreatly treapaseed sad used icy property La their business from May 1988 up uatil et ladat Ddcdmbdr 19y3. It ie raaaoaable dad I em eatitlad to at least $30,000 for their use under their own rental offer, $50,OUO for what 1 datermiaed A... 1988 would be a raasoadble reatal rate boded upon my cost. My property had do edvirouoeatal coatamidatioa as of•May 1988. As iddieatad, Morrell 8 Plaisted have used the property siuce the� without ey permissiou. Iadeed, the photon I took laat fa1L darodstrata a.aoag other tniags, Morrell 8 Plaisted's tacker, heavy aquipmeat add truck parts dumpster oa my property. Prior to Mdy 1988 my property was simply either vacant or used to park cars during the day as the City is aware. My eouater offer is $75,000 cash is addition to the property you offered to swap in your earlier letter. Ia the alteraetive, ry couater offer is $150,000 cadn. The additional $75,000 beyoud your offer iucludes ey claim agei..ac Morrall & Plaisted. I will dot do a deal with the City aloue aau leava ay claim against them haagiag. As i.idicdtad is my prl. r latter, tnere.aust be a three way agreemeat. Additiodally, Messrs. Morrell A Plaisted would certify as to say coctamiaatiou as result of their use of my property from May 1988. I would certify ao codtaimiaatiou as of May 1988. Agai.a, meay thaaks for your iatarest. I look forward to your reply. Sincere jnyours. don J asoa .r - C "`J HOLMES & CRAVEN (� ca�ereaso um rags. asimaoM March 17. 1994 INVOICE a 44641 MONTICELLO MRA MN195:3 CITY HALL 250 E. BROADWAY P.O. BOX 83A MONTICELLO, MN 59302 Re: Johnsan Purchase Agreement For All Legal Services Rendered Through Feoruary 26, 1994 As Follows: 02/21/94 Prepare purchase agreement 1.QO 02/23/94 Phone call with 0 Koropchak re 0 ZB purchase agreement 02!28/94 Phone call with O Koropchak re 0.e25 purchase agreement Total Services: 1 90 $135.00 Total Disbursements: $0.00 TOTAL DUE: HA2622 r est wVm prop, o: Iae lb. .0" Maxi , dalm a defod rfpen Jap...... ...1......., .• . PURCHASE AGREEMENT llanll�Jlyl_, Ml.n, Fchrnnty 1994 BECF.IVF.uoF_lluualnn-wd-Bcdcvclvtmcnt_livthorlty_tn _and- fsr the, CIly- �f Mont Ilo •_w+ the num rd _lylc-uundr cd_Imd nn/1011--------r------------------- 11100.00_IIM1LIdRS ..nmol monry.nd In pot p.yment 1P11x purrh.wnlprnprrty .l ---- + .itu.t.dinlh.C—Lyof _HLI&ht .Stale of Minnuola. udlryl.By de.erihedul.0..., b.IL I..t 6, Block J, Oak ... d Indu.tri.l 1`nrk, City of Honticcllo, County of WlBht, Xlnneaot.. *.dteYyrii kllt t wmw�d .. . .. , , , .D.f.hkhprapwL-AAW -0ucchmin -pike_—d—thez_-tetm_md_ctm4ltlonn p:=..:=LIULKAMOOLLAM rAddl<thcllpelm rapru w p1 b1 Y.r1Edl�.me+o1 lkRB�kp®)t kaD.ln�dk= ..>wNd tsa klreotol= =Ita+tx= xxl{� .1 CloanB nhn11 ha p.ar.trd e• of Claninp. It.hltiWWf-m.nr.M IM W)w1M.dw yrwruw.M...a ail✓.. _ggrmnlal _N'.rr.m)14d ne M !•Nd M he grow. P .nyl r.arwly wrk W W thi b wld prYw wh/rt only u M. Inewlry wrrplbn. 1.1 Orpoln..d r.nhla ■w ..dflr.rr la.0 ..d Fdwrl r•.u1.1N,.. IM PwlrHbnr rrl.11rla r. ur w I.rp.ml.wrY d prrlw d .ulrirl a rvrlrwd Iwlrllur. Irl P.w..lYa M .n) .Wrr.b r W rrw.l d.Mr u IM Pl.lr M M— MI 11.1b" 1n..wl.1d1111Nry w.ww1. M al.klr M l.r.rr .r lelb..lu.►w yraw, tl r.hl.t le l.rrwrN.1 TM he)w rMa..r1M rwlwl.uu.w awalM )r.r I._. 5__..d w^....dW p un—...wwrwrl. W)rli.lkwwMk ..e lkm.ltw. ernl rot ntrt torn. and In.tn Imrntn 1 prrinl n 1. t. dor In 111✓ yrnr. ThrwMhnlM..rr••uddlrw pwr.rfw..l Mwllun_11p)e_gq1.GlupinnPmXd l.V4:r rmdNM. rd IMh yrrewwd Irrr d.. rvrnplkd uh 11.►n.lM.lw .poll.d lMr wY Wa br i6.:d vu n brlmr 1M1 d.lr hon lM d.lr Mrr..l I.IM n rnl tht. P�w1 r 4 Mlrrpd r wM1.elI.V. d.rnyrd Ir. hr> .q Mhw rww Iio.lM rb1Y d.u.t W yrwmr.l .MO hwelrw e.0 .d mN, .1 tM prrclrw'. t— .n1.e e.Nr1w p.N bwrMw .lou h. nO.1dd le kbrr Thr hu)w .1d wlYr Nw w.tue) Yrr. lMl p• Pu adl.Mmwl. d rwu I.tw..l, In..r.rr .11d W) wlw una u IM r.r m lnr.rl. prpwl♦r.rr..l rgwe.UY r.p.••.1 .k.e M.,.d..rd dntn nl r1oa1n9 TM wp1. ✓M0. .Mhl.. rwwrh► Ur .n. �prerd d lM..pw.w1, hvr.h .. rh.aM d W V rw Ulu Ie .1.Irw 1'nlllNrlr M 1'N6 b P.a1.1w.e nr.w11 .hMr 1 h.lk prrpw wv Ir rawly Iw ` .M M.l..wl 1'dw.1 u�m.nl..rd �Ink.Mnklliy.1- rd .rleMwu�r wlydA tlpr wit ~Mr�i'.Mby1lrv��thr -h hu.lir lhw�P�eiww-;t 'r A•Fi Iryi I1.,.1 p...A M1 upm rr.rwlkm d Ulu •d .N hn 1. Jrrr r11w .rNlrn wl W. 1M w�u :; i- Yrr .rrm dhy In oral✓ rN lllV lr lrW rrkrlrl,V..dI.UNrrmyl,.�6w.NIJn 1t04�.tw tllr-�.u�il.rNlw rllwll�Ymp.�llwwa Nrhes pw NNd MYlllh.lw1)www�llM Au r�dr,l hl, "I �My14r1a1 r✓rlwlpmMirir4 ►«l4e �i1.NY.�rN�111, .1d Nubuww MnA.u.lbdl nnnw bin .0111.a1wnt�lw ��wY llw ir.�i.n�v lMri11r�1.M.IM ev WA�IIn��. l�hw~i .r�Trilwrllu«I�I•r � a.r, .. kaula.up�.• Mw hnyy d IM rrrwr Mwd, hw l.M 0r.r1Ww .k.11 hplrr rllkn p.ru .1 lM ryhl nl 1 IPWI�V rNr'ttw Ik pwlwrr.n W Nr m1l pml.rd wrk rcwlrwl We w M lwrurud w .Nwrrd..r Pmdd .n rw mil �\Y "'.l•d..kdb�.Wl.iw..l►.Itww�Nkt.Lwlw+Yw.r In 1'r.ww. d 1kwdn Yrr. u Pw lb.rd pn�rl) M lM 1.IN— d ..,n, rP.. IM twe Uww rwlmlr.a oa whlrl 1..e r.11dule.. kr.l. ..p�.11 STATE OF 1 i 'lam a •b• •d A.D. It— b — r • .rer ••d ow 0—" qwmnd ft— k—bbWp—_do0•d b and0 m odWWM—W Wed—bdl•A Wt_b mMi W m s ft- "—d did W ,6+ u_ L ATTACHMENT A ADDITIONAL TERMS AND CONDITIONS 1. Purchase Price. The parties agree that the purchase price shall be based upon $14,000 per acre. The parties further agree that the property contains 235,440 square feet more or less (5.4050 acres); and that such computes to a purchase price of $75,870. The parties agree that, for the purpose of this agreement, square footage will be deemed accurate, and the purchase price shall be $75,870. The purchase price shall be paid In the following manner: Earnest money of $100.00 is paid herewith and the balance of $75,570 is to be paid in cash on the date of closing. 2. Closin¢. Closing shall take place not later than thirty (30) days following the date of this Agreement. If Closing shall not take place by such date, the Buyer may declare this Purchase Agreement null and void, whereupon Sellers shall return the Earnest Money to Buyer and thereupon the parties shall be excused of any further liability to one another. 3. Preconditions to Closin¢. Closing shall not take place until each of the following has occurred: e) Sellers have prepared and delivered to Buyer the Well Disclosure Statement attached horoto as Exhibit A or have Indicated that the deed will contain a recitation that there are no wells located on the property. b) Buyer has obtained a commitment for title Insurance for the Property, showing, In the Buyer's judgment, the am to be free of any Hone, encumbrances, restrictions or other matters affecting marketability; c) Sellers have provided the Buyer with evidence satisfactory to Buyer that the rights of all third parties to possession of the parcel to be closed have boon terminated, and that on the date of Closing, Buyer IM MS Wiwi shall have the right to immediate and unrestricted possession of the parcel to be closed; and d) All other acts or events which, as provided In this Agreement, must oc6vr on or before Closing have occurred. In the event that all of the foregoing preconditions have not been fulfilled by the last date for Closing described in paragraph Z above the Buyer shall have the right to terminate this Agreement as of such date. 4. Closing Activities. In the event that all preconditions to Closing have been met by the date of Closing, Sellers agree to deliver to Buyer the following at Closing: a) General Warranty Deed; b) Standard form Seller's Affidavit showing that there are no judgments, Ilene or other actions or things which would affect marketability of title; c) Documentation In a form and content acceptable to Buyer showing that all rights of third parties to possess all or part of the Property have been extinguished; d) Such other and further Instruments as may be reasonably required to perfect title to the Buyer. 8. The provisions of this Agreement shall not deprive either party of the right of enforcing the specific performance of this Agroemont, provided this Agreement Is not terminated and action to enforce specific performance Is commenced within 30 days after such right of action arleca. 6. Sellers warrent that any real estate agent or broker fees or commissions earned as a consequence of this transaction will be paid by the Sollars at Closing. Sollars further agree to indemnify and hold harmless the Buyer from any claims made against Buyer or the Property for any such fees or commissions. isawaS 7. Except as to the costs and obligations specifically placed an Sellers hereunder and except for legal fees incurred by Sellers, Buyer shall be responsible for paying all coats associated with the Closing of this transaction. 8. Sellers shall have until the date of possession to remove any items of personal property and any fixtures currently located on the Property; provided, however, that such removal shall not render the Property unsafe or insecure. All items of personal property and fixtures remaining on the Property on the date of that possession vests in the Buyer shall become the absolute property of Buyer free of any Interest or right of Sellers. 9. The Deed will contain a specific recitation to the effect that the conveyance Includes all right, title and interest of Sellers to any adjacent streets, alleys, rights-of-way and easements. 10. Hazardous Substances. A. Definition. For purposes of this Agreement, "Hazardous Substance" means hazardous waste, toxic substances, polychlorinated biphenyls, asbestos or related materials and also includes, but Is not limited to substances defined as "hazardous substances" or "toxic substances" in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as emended, 42 U.S.C. See. 9001, at l ., Hazardous Materials Transportation Act, 49 U.S.C. Seo. 8901, et seg., or as "hazardous substance," "hazardous waste" or "pollutant or contaminant" in the Environmental Response and Liability Act, Minnesota Statutes 1 115B.01, at a_ge . The term does include petroleum, Including crude all or any fraction thoroof, natural gas, natural gas liquids, Uquttled natural gas, synthetic gas usable for fuel or mixtures thereof. aaowMS M100.1 B - B. Representation by Sellers. Sellers represent as follows: a) Sellers have not placed or deposited any Hazardous Substance on or under the Property or Improvements; and b) Sellers have no knowledge of the presence of any Hazardous Substance on or under any part of the Property or improvements. C. Contlneenev for Environmental Investieation. Buyer shall have the right until the date of Closing to Investigate and test, at Buyer's own expense, to determine whether Hazardous Substances are located in, on or under the Property or improvements thereon. If during such period, Hazardous Substances are found in, on or under the Property or Improvements thereon as evidenced by a written report prepared by a recognized environment expert ("Report"), or If Buyer to not satisfied that the Property is free of Hazardous Substances, Buyer shall have the right to give notice to Seller that It wishes to terminate this Agreement, and upon such notice being given, this Agreement shall be null and void and all Earnest Money shall be promptly refunded. Along with the notice, Buyer shall also provide Seller with a copy of any Report. I1. Assianablllty. Buyer may assign Its Interest In this agreement at anytime by giving Seller five (B) days written notice of such assignment. rmwas a:w•► B - 4 FAHIBIT A �rwe rte. tN►w r�.rw..r.rr...,..o ..,.,.,,,w..., MINNESOTA WELL DISCLOSURE STATEMENT Minnesota Law requires that before wing an agreement to sen or transfer real property after ,luno $0, IM. the caller must diw1osa Information In writing to the buyer about the status and locatloo of all known wells on the property. This requirement Is satisfied by delivering to the buyer either a statement by the seller that the seller does not know of any wells on the property. or a disclosure statement Indicting the 4Qal desvlpUca and county and a map Showing the location of seek wall. In the disclosure statement the seller muN.ndfnla. for each well. whether the wall is In use, not In on or sold. A sella who falls to diwJon the saletecce of a wait at the time of sale and know of. or had reason to know of. the eNatmcs of • well is table to the buyer for costs rotating to the mating of the well and reasonable attartey, fees for collection of costs from the seller. U the action Is oommeneed within sit ys-, afterthe due the buyer flood the puschasa of the red property wbere the wella located. Instruction+ for completion of this form an an the revers alder 1. PROPERYY DESCRIPTION err o.. L LEGAL DESCRIPTION S. WELL DISCLOSURE STATEMENT Khasi the appreprlato boll 0 The saUer artifiea that the seller donna know of any wens on the above Ibsd real Pope! If this option Is checked. than skip to the lest line and Ngo and date this stetemmt. ❑ The seller notifies that the following wells are located on the above I 'bad ted property. MN. Unique Well Year of Well MUSIC MOT IN SEALED Well No. Depth Const Type USE Wen 1 0 0 0 WOMB 0 0 0 well a 0 0 ❑ 4. SEALED WELL INFORMATION For each well designated as noted above. complete this section When was the wait noted? Who maled the welly Was a Sated Well Report Bled with tis Minnesota Department of Health} Yes _ No L MAP Complete the attached rap showing the location of ucb wen on the real property. & CERTIFICATION BY SIN 1.ER dot the Information provided above to accurate and complete to the bed of my r.sM.re^.w e. ea.. sue� se- r MAP Pbm an the opoa Mbw to dmttb tlto nal teopQt7 beiN add and the loetlen of EACH well an the piopaty. laded@ dbtaww 6om find nttwnw points and as strata and boWIW BBE ADDMONAL SPACE ON BACK IF MMED Consideration to approve a preliminary concept for the use of TIF for the Genereux Fine Wood Products expansion. -41 A. Reference and Background I have received a copy of Tapper's Inc. 1994 Business Plan Overview from Bill Tapper. The plan calls for a 18,000 sq ft plant expansion and current facility update to accomodate planned business expansion. The cost of this project is expected to be $589,000. This plant expansion should create room to expand their work force by 15 people over the next two years. Sometime ago, Mr. Tapper asked me to estimate his property tax increase with the construction of a 19,000 sq ft manufacturing expansion. Although his tax increase would be approximately $26,215 annually, the tax increment increase would be approximately $17,500 annually. TIF District No. 1-9 was certified by Wright County on April 30, 1990 at a Tax Rate of 81.843% and is not subject to the HACA Penalty. Based on those figures, the HRA may consider modifying the TIF Budget to assist the company with an additional total pay-as-you-go assistance of $59,500 with a net present value of $45,292 at 7% interest rate. The increment would start generating in 1996 and run through the first one-half year of 1999. An amendment would need to be drafted, executed, and attached to the existing Private Redevelopment Contract. Mr. Tapper has been talking with lending institutions and has inquired to the potential use of additional TIF assistance and other funding sources. Therefore, the HRA is asked to eonoider approval of a preliminary concept to use TIF for their planned expansion. B. Alternative Actions: 1. A motion to approve the preliminary concept to use additional TIF dollars for the Genereux expansion at the approximate dollar amount estimated. 2. A motion to deny the use of additional TIF dollars for the Genereux expansion. 3. Table any action for further information. C. Staff Recommmendation; Staff recommends the HRA consider the preliminary concept for additional TIF aosiotance. Final HRA approval based upon a pooitivo financial analysis, finalized TIP dollaro, bank participation and a total funding package. This is an excellent example of Business Retention 8 6xpanoion project and Mr. Tapper is very envolved with the IDC as a new member. D. Supporting Data: Copy of the prepared tax information and net present value. GENEREUX FINE WOOD PRODUCTS, INC. Tax Information from Tax Book 193 TIF' Estimates 155-018-002040 Estimated Market Valu, (EMV) $ 750,000.00 BA $ 1,762.00 193 TAXES $ 36,008.22 Tax Increment $ 31,253.82 PROPOSED 1994 EXPANSION 19,000 sq ft @ $25 per sq ft $ 475,000 EMV Current EMV $ 750,000.00 New EMV $ 475,000.00 TOTAL EMV $1,225,000.00 Industrial Classification Rates: $ 100,000.00 $1,125,000.00 .0300 .0460 $ 3,000.00 $ 51,750.00 New Capacity Value (NCV) $ 54,750.00 Estimated '94 Tax Rate 1.13649 ESTIMATED '94 TAXES $ G2,222.83 PROPOSED AVAILABLE TAX INCREMENT TIF District No. 1-9 certified by County April 30, 1990, Tax Rate 81.843%. City Council approval TIF Plan for District No. 1-9 on February 26, 1990. BA $1,762 times 4.0% growth rate o $70.48 or new BA of $1,832.48. NCV $ 54,750 BA 1,832 Captured CV $ 52,918 $ 52,918 divided by $ 54,750 - 96.653% captured percentage. Estimated '94 Taxeo $62,222.83 Captured Percentage .96653 Tax lncrcmr_nt $60,140.79 '90 Tax Rate 81843 AVAILABLE TAX INCREMENT $49,221.02 194 Tax Increment $49,221.02 193 Tax Increment Q01.253.82 Incroaood Tax Increment 317,967.20 NET PRESENT VALUE INTEREST RATE: 7.00% CITY: K)NTICELLO PROJECT: fi£NEREAUX WOOD PAY00 CUMULATIVE YEAR INCREMENT NET PRESENT VALUE 1994 0.00 0.00 1994 0.00 0.00 1995 0.00 0.00 1995 0.00 0.00 1998 8,500.00 7,168.77 1998 8,500.00 14,071.83 1997 0,500.00 20,752.45 1997 8,500.00 27,207.48 1998 8,500.00 33,444.18 1998 0,500.00 39,489.97 1999 8,500.00 45,292.01 sssscs�sssaaea=ovcc7_c_====x_. eeaaeoaeeesa»»== TOTAL 59,500.00 45,292.01 HOLMEs & CRAVEN exA,Tneo .r..m.e.. c—. ri-.P.r. am T.Nob-11W7314310 March 17. 1994 INVOICE # 44639 MN190:41 CITY OF MONTICELLO Redevelopment — ;general P 0 BOX 1147 MONTICELLO MN 99362-9243 For All Legal Services From Februar,j 1. 1994 Thru February 28. 1994 As Follows, 02/01/94 JBL Phone tail from 0 Naropchak re various 0.29 33.75 issues Total Services: *33.79 Name Hours Rete Amount s John B. Dean 0.28 139.00 33.78 Total Bervices And Disbursements: s33 '9 1 dame, Wxw pwM* d bss �m ft omoud, dd6m w aid Iw Ent C'e"Od tC'e"Od ft"oprl Joho� E B Al q H0LMES & GRAVEN ceursseD as rm+.r c�. rr�m ewm Ti0-41 Aa March 17, 19x3 INVOICE M 44640 MN190:44 CITY OF MONTICELLO TIF 01-16 - Scnult P 0 BOX 1147 MONTICELLO MN 55362-9249 For All Legal Services From February 9, 1994 Thru February 28, 1994 As Follows: 02/09/94 JBD Phone call from 0 Koropchak re legal: 0,25 33.7? work on agreement 02/16/94 SUB Draft Contract: phone call with DOS. 3.10 660. OC S. Kutsbeid and O.Koropchak 02/17/94 SUB Review contract) letter to O. 1 00 Iso *0 Koropchak Total ServLCte: $813 7? Name Hours Rate Amount John B. Dean 0.25 135.00 33.79 Stephen J Bubul 6.90 120.00 78.00 For All Disbursements As Follows: Postage 2.13 Total Disbursements. s2. 13 Total Services And Disbursements: •817 E8 I dodwo. MW pwa ft d taw sat Nb accam4 daimtp, ed 4m and ansa and edC1aMro0 .- 250 Eau Broadway P. O. Box 1147 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (612) 333.5739 Fax: (612) 295.4404 Stephen P. Birkeland, Jr. Custom Canopy, Inc. 219 Dundas Road Monticello, MN 55362 Dear Mr. Birkeland, Jr.: March 9, 1994 On February 14, 1994, HRA Chairperson Al Larson, Building Official Gary Anderson, and myself met with you, the Redeveloper, to assess and determine completion of the minimum improvements constructed on Lot 6, Block 2, Oakwood Industrial Park. Upon conclusive determination of satisfaction, the Housing and Redevelopment Authority (HRA) is to furnish you, the Redeveloper, with a Certificate of Completion per the Private Redevelopment Contract dated April 12, 1993, between the ARA in and for the City of Monticello and Stephen P. Blrkeland, Jr. and Joan M. Birkeland. During the February tour of Custom Canopy, Inc., the following Items were discussed and determined as unsatisfactory: 1. The semi -truck parked outside and to the rear of the 6 -toot screen -fence is a violation of the City Ordinance and must be moved and parked within the screen -fenced area. (No outdoor storage or parking is allowed outside an approved screen - fenced area). The supplied van-acceseibility sign must be erected to the outside handicap signage pole to comply with the American Disability Act. The lack of exposed address numbers to the outside front of a building is a violation of the City Ordinance and must be erected. Page 1 Mr. Birkeland, Jr. March 8, 1994 The non screen -fenced area leading west from the northwesterly corner of the facility then north to the point of the existing screen -fence is a violation of the screening requirement set by the Planning Commission and City Council. A free-standing paint building may be constructed and the screen -fence extended or trees planted to meet the screening requirement. or the existing screen -fence extended or trees planted to meet the screening requirement. 5. The lack of a southerly screen -fenced gate along Ballon Avenue is a violation of the screening requirement set by the Planning Commission and City Council and must be installed. With the snow cover, assessing the completion and germination of the lawn seed was difficult to determine; however, the City has monies in escrow for landscaping. Additionally, the group informed you, the Redeveloper, that City Zoning and Ordinances are written to protect both you and your neighbor's property and property values. At the March 2 meeting, the above -listed violations were reviewed and discussed by ARA members. The annually -appointed members determine the use of TIP and must be accountable to taxpayers for Its use. HRA members were disappointed that the Redeveloper has made no attempt to complete Items 1 through 3 since the February 10 meeting and requested the Redeveloper take immediate action to comply with the City Ordinance. Since the Redeveloper received inconsistent interpretations of the City Ordinance as to the number of curb cuts allowed per 125 feet of street frontage, the HRA members approved a completion date of July 1, 1994, for Items 4 and 5. If the Redeveloper has not completed Items 4 and 5 or is in violation of the City Ordinances on July 1, 1994, the HRA will not issue the Certificate of Completion. If the Certificate of Completion is not issued, the Redeveloper defaults on the obligations and conditions of the Private Redevelopment Contract, Article III, Page 7, Tax Increment Assistagce: therefore, the Redeveloper will not receive the annual SIP assistance payment of 87,428.59 which equates to a total of $59,412.72 over eight years. Page 2 Mr. Birkeland, Jr. March 8, 1994 If you have any questions, please do not hesitate to call me at (611) 295-2711. Sincerely, NOOSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICZLLO 011ie Eoropchak Executive Director cc: Pat Dwyer, Bank of Elk River Al Larson, HRA Chairperson Jeff O'Neill, Zoning Administrator Gary Anderson, Building Official TIF District No. 1-15 File ✓ Page 3 IUINL INA 95.30 IISTHALFTAX 47.65 i I PENALTY • LSS-018-003050 I TOTAL MONTICELLO MRA i PO BOX 1147 ea A'io wee coll�no.a ��'cc''c� 250 BROADWAY E ��• MONTICELLO MN 55362-1147 - - - ----------------------- YWR CANCELLED CHECK IS YOUR RECEIPT THIS STUB MUST ACCOMPANY SECOND HALF PAYMENT ND HALF PAI III NRICIII I'I1UN'I. IRIANURLRIINIIR RF:NME 2PAYSTUB 1994 AVOID PIAALTV, REAL ESTATE TAXFS OCTOBER 157 1994111 H. FASE REA11 DACK III IIIRAI IIIR P%I MENT PRIM:I.IMIRY_ TOTAL TAX 12ND 95.30 • HALF TAX 4T.65 I r I' h PENALTY r 155-018-003050 TOTAL • I ' MDNTICELlO HRA PO BOX 1147 AAouI Amba A. •Io•. r Mrn oo.ccr, arra 250 BROADWAY E wem nin:'ane� ` MONTICELLO MN 55362-1147 i REAL ESTATE TAXES PArAISLR IN low WRIDKT COUNTY, IDNICESDTA TAXPAYERS QQPY NRA OW14ERPAMjjtlV l i . PRCPERTV CLASS► EXEMPT EXEMPT CCITT Y OF MONT I CELLO EXEMPT T' LOT-pOp05 BLK-50031l vv LOTW5bLK130AKM000LINOUSTRIAL PARK NEW AIPROVEMENTS 1 ESTIMATED MARKET VALUE 1.)aBP00D 8900 B•DO TAXPAYERS 034'75 TAXABLE MARKET VALUE 1. MONTICELLO HRA LH. 000 PO BOX 1147 MONTIBROADWAY I' J CELLOS5362-1147 TAX CAPACITY MN 1 U. n• &..I" - Form M•IPR b sole R yelp lee1Me I. • paprry W rehKld .0 ` F Y bf AuDlsl 15 D b- h you o chmkod, eM r1ee.Iufi/m1 .I -. fire eq "ho".C 1 7 Ua RV. amaN 1oI RIs op•cW prep.rT Mr,of fid-.d.dul.1.Form M•1PR .00 T1 1 i V• {YIIpmy Tn And 11" 111. RtAnred By lb t1•Ie 3. Yw plopMry M. Moro n 1n- W Mm. pre M0. wd.- 000 •O 1 1Q .. Aid ped a 0. UM of= to r•dw. your PopnhW .00 .0 , 8B S. Crtlb ped a T. pole o1 Mrw.Hle m I.dC• Vw wcDee r w: �Md.yIORARr oral . _ ^ - 6. • 00 .0c . L Or - - - - d. Vw propw" M. mow red4com by MRte9Ar AW. M10 crwft .. • 00 .0 J Whm Your Properly Tu IIo11.n lie 7. C.X.y .00 .00 j S. "mi.- • 00 • 0 Sand mDa .682 A• E.aa r.r r.1•.dle w . • 00 .0 J B. 114.0 Yp dlor W - _ - •ISp .00 •000 10. W W bV mete. A. 0. 11, Non rYod emI IRO•e.•e'elom ldo MAN TOM F09M ,• W bleemle SP.er aleMMY" _ - 000 000 J I I 13, Byer •nr•KMib ledged b Ile.pyrn W DO A49-03 IMPROVEMleTS 99.40 95.30 1. � •/ 1.. rev leer plepMly elu d ppr..egnlerr.. - _ _ 99.40 95.30 PAY THIS AMOUNT NO LATER THAN MAY 15. 1991 47.65 PAY THIS AMOUNT NO LATER THAN OCTOBER ISo 1994 41.651 ESCROW ADENT ND. 1.-..,, .,, rA..R. •....rll-.l. A... A.x rr.... n, y..,• ... 1 I Rrgd lAr bl,t N,I1 ,I+.I.AU A., ,yry• i TARGA/1/l7. .. I G w T c 0 U v T I .AGE v ..C.E.T1 T41 u.a TSIS 91 USE WE 1/24/9. u n a o11sc4 i1 .c.ES WAS I .MAET v.LUE E TAI C.I.CIIT E G•OSS TA. I MET I.. 0 • 14.710.11 .11 11.1 2..11..100 to.1 2.4.111 I1.! 111. t.1.•O 15.1 112.193.•0 15.2 WAS REC 1 .00 It 11.4 IS.N • _ • A4{IO4wTlK l4l.l! ISIS 11.2 101.711.700 1... 1.1.000 11.0 Ir1.5. 111.80 11.1 I.S.1.111.00 15.1 • a_....__..,.. 2.00 IS .l 2..10.900 I.1 1.7..0. 6.1 110.41U.U. 6.1 110.130.0. 6.2 Y , „_ {Iw4nul UTILIII 1 .2 1.0.100 .l 11.111 1.0 lt..01. 1. 1.0 22..01.36 1.0 N --..-�-- 2 57.100 2r02 .1 1.117.1• .1 1.012. 10 .1 VK.wT •ES , I. .EK ESt.fa H.00I.411__♦••k0 N.1 111.02..100 .4.1 1.+. 1.I.A 11.1 1.017.10..•0 N.0 t.Jt 1.40•..0 NW 4. a.YIwAL MMOTT N .0 1..111 NOO 1.0 6•001 40 43.001.1. l.• 41.001.16 1.0 ' .. AAAA.. 15.001.4T 5.07. 100'.0 177..IT.100 100.0' 1.•t4.411 100.0 2.10•.111.7. 100.0 1.10•.017.7. 100.0 .. ' I 1 ' UIE AC•41 NCL{ I 0•..IT v.lm 0 148 cN•ct11 I (MOSS I.■ t WE TAX I .•.. 1.140.10 M1 0.0 1111•.600 .1 .7,104 .4 111.111.- .• 1110/1..0 .* .._. _._ 401. 1," IAN\ 1.1 N.41 !114..1 OISIO7.IIK 11.1* 1.141 /1.6 101.117..00 21.1 I.S10..5t 10.0 1.1.4, W7.4. 10.7 1.1.5.001.0• 10.1 (OAAEAC I.I •..0 1.1 I1.0 11 ..00 1.. 1.2•7.414 1.1 1.41.1 I1. 14 1.2 IrN 1.111.1• 1.7 t0 1.1 1N 11,700 t.0 43•.1.5 1.1 41•.901.•6 2.9 .1•Jo1.•0 7.1 •, 0 Ylill it • .• i*1,110.100 •1.1 I2.00.,HS II.\ 11.1t6.M4.ta 17.5 111410.•.0.20 17.1 O.IL4OA0 1 141 J00 1143.7 .1 lO,U1+.N .1 10.08S..• .1 v-I.%I aiwl. ' TOTAL .0K ESTATE 1.1.4.0. 1.000 44.0 411.1.1.000 NAI 11..71.1.• N.n Ir.IM.t.4.14 N.O 11./00.144.14 V.0 .94104" ..U.E41• 1 .1 1.021.•0. .A 151...0 II.. 441.44 .� 11.. )♦)•N .1 Cl TOI-L 1.144..0 1.010 101.0 410.441.•06 100.0 1\.141,0. 100.0 11.411b.748.10 If" 11.414.4418.46 1M.0 • l KS.�a. ays.ly • 011.. ,♦ TR1ULl74 •■ t c 1. T C 0 U 4 T T PAGE 2 • _ ._ - .. _ PRCPS■TT TAA &%ALT%tS ST USE ONE � qIT ar twAl1 •, Y1f ACRES P.CLS i 9A4KET VALUE t TAR CIP.Cill l 4.JS5 TA. i dT T.. ) 800.2a 102 r.• f.o,1. 100 1.5 n.2?t 1.0 ,L.v1. 1e 1.0 .1..+1.11 1.9 •• 01A1 EIK. s0 t.0 2.5,6.,00 1.1 51..04 1.1 e4. ,Se. ve 1., 41Js.... 1.5 an1"AlT I AL 11.2. 2.1/. 19.9 IS.,.11.000 ie.l 2,20R..S. S?.1 4021. L.S.64 \?.1 2.529.1.1.4@ 51.? ... _..+.. _ 21.SS !3 1C.0 32030.000 I..) fl•f 13.2 I..,L,.Y.,. 11.2 I0IU1T091l • .! ).410.400 1.4 1".4jt 4.1 160.140.10 ..1 140.1.0.)0 ..1 UTILITV P .--MfpNO. -. __ --_Y -..- 05.1UU _.-.. _. f,tft ,.,2o. 1t ..120.12 •� va"'RI Rtt A _.-VKMfT OTMR TOM ARAL MM p1Al 1.f11 _- - -- Nd IN,IIJ.SUJ +v.. 1. Rl. AeS 46.6 .. SI1..17.04 .@s ..111012.01 ,@.. �. P1Rf11141 PQOPNIv 11 .4 1.140.100 .s 52..1. 1.1 5+.114.14 1.1 S9.1se.11 1.1 • &10.0 1*/.990.600 100.0 1.660.114 100.0 A. I FT. 110.2. 100.0 .J 1r,110.J6 100.0 ON'.•- 'sun$ _ _ &"is MEN •_ WRfT 114/" { I" cYKtry t fY 1 rET TA. l • 0440 **% 24 It 1.4 MAIN .1 1.244 ., 2.104.10 d 2.904.46 .+ AR p-MIF�EC NPM.. ._.r.._Rsr - ftl•dt� IA - - I..4, 1.. ...,4.09 1.. ...,.. o. 1.. • ensu TaK h11 t1. 1041 %*Mon 144 111.160 12.1 I.. S4 11.2 16.014.11 12.2 •.. CMIRtK IN- 114412 N 1141 1.411.110 11•6 220.11? 11.4 240.104.10 10.1 t40.J04.10 ,..1 - -t-'- vl� 410.011' 1.4 21..41 A.1 10.442.42 ••1 N.4*J.41 ..I � I-'MOWS" 01111121 _ •. 4411R0A0 + *RCMT K1 IOr4/ "Al ISIA10 151... N/ .4.1 14.211,100 41.5 N*.110 N.A 10.9501.10 41.1 10..,01..10 4..\ po.wmal POOPI4TV 1 .2 /.4.100 2.. 16.146 • It Tor&l 111... l.. IOC.0 1..•11..00 loo.J WI.r.0 100..1 111.116.5. 100.0 1110S..1A tco.0 t'4 0ll I1M/30ttL/ 1TWl9atP F.49t.249 116.13 "04034 23.492 /66.149 MOST 496."1 r +• K.00I 71STOKT 011 AnIrG{ e.44s.1tT of 1ST C.PACITI4S 212 •6661 lLl llO TTN{MIP 664.600 .all I 1.340 t!t 4..00 1.161 /.241 .7st)3K4t VtAm Iryr> I : TCT4L .MOOT a41-0 at -"Ac Ps.f. HOP "T.1-.6 TOTAL .A4►6 ICT TIO Ur �'• {b NT4000WPK0 ��-100.Jt1.400 0.460.449 34.13 7.7J4a01 fA4T1 74.17/ 7.762.101 %01.1 LC+.04 010010 all 1.10 )%.zoo **..Sit 6.631.412 261.120 0".127 0.600.812 pI'•• z 6.L•. I. 30L- n.166 u0.471. :3. TO - n.t66—_ . INSIST --- Ila.nt R' Ila Cltr Ol) a1 wmu 96.6!0.106 1.04 234.664 36.116 2.634 2T/.308 2T6.016 _ .. 202 OUPP44.0 TOMSOIP 16./40.300 2.1.04 64.6t6 I..V6 tvs.*" %01.046 1.4103.621 0 Sal% .0490 012 !l T 66 60.36 O p•' ...T..... %.-.%4 .166322 EMI!!_ .7..1.7 ��• "/ Pa6NIN11T IGMIRIP 64.216.449 3.60/ 110.010 o6649T 1166* 113.01 200 PRMaLIN TOWNSHIP 6.416000 $.00 31.444 LII% •Colo Tc OP DISTRICT 60 111.61 36.649 31.664 10.1114 - .• _list Rp019 11 o1 91111 r s" 4IS{ !Coto 11 t. um.Itttl 1-4�•� t'4 0ll I1M/30ttL/ 1TWl9atP F.49t.249 116.13 "04034 23.492 /66.149 MOST 496."1 r +• � A 212 •6661 lLl llO TTN{MIP 664.600 494/0 1.340 t!t 4..00 1.161 /.241 ••, �21f..OI.6tuku IOWN{.It. _. •af..)4...r _ 4444. :.4e...ta 7C.u% .._W.NN_.._20n.6aa t.)a.Jc. _.. �'• 120 VOODl.+0 10~1P 0.460.449 io.3/0 01.664 1.411 36.490 000101 %01.1 LC+.04 010010 all 1.10 )%.zoo **..Sit 6.631.412 261.120 0".127 0.600.812 pI'•• tots 201 an "0011 LIMO 4.t16 - --- --- T� t0{ 60000 IC IP SAai INS K 6b012 1 r _ .. .1131 6M M Sal% .0490 012 !l T 66 60.36 O p•' l!%s 60010 K M 01L101CT N 26.301 ►til •CO10 TC •• ._ LIS$ 40010 TC oP. u14Ta1CY if 11W a LII% •Colo Tc OP DISTRICT 60 111.61 _list Rp019 11 o1 91111 r s" 4IS{ !Coto 11 t. um.Itttl 1-4�•� N 6• • y ... ------ - - shovel : •..Qa-c 3/21/44 -31X JISTA/Cr a•i au'a •ca r'I•asME•r Cf fa. """T" fal.f 12 _�._..FSSESS•ENT_fEa. 1-4.03 ^' TOTaa 0149041' M-K sf-a0a.0 fT.s. P.C. TOT.'t1-.0 rOGq %C%&& fcT Tae GN Its CITY of OTS1W 99.1!9-400 ".."I 191'.394 2.-II ..•1 :00.9 I! ii ).l./ •K CUT_0l-OMT1LELL� �_.__. a1L0as••ae _._1,}l N! )!.0 1.114 iftfMO - 19•0.! I10.1.s44 _ N.70)t&IL �I �%- ROt NWPALO f0.■sw11 {".100 970 tf) 9N !!) I.ass .y 104 GL1a■"144 fOOOSrl• —.. — 1.7tt.Soc ..Tel4.991 -- 1.197 9.407 1.454 I[irylil _ iii.! T; a.n Ltee n.as aa.a■a _—. •..IL 13.190 $0.1.0 r].fsL _ w tU NOTIL0LLO TOIod"I1 9T.I10.4" !90.4"1 901.4"14.430 190d!! t•Ci 7.9t/ {.bS.Nt tla Slaves Cate% Toms..lf s0.srs.700 all.N) Iss.141 •j9113 __ i. r".I )".9a. r N2 N1t .. �yaa..Y ■., ......._t.e n.ae ...9n.t.. ..._... _ 40.•70 1.111,1[[ afss .ODFo r[ Of Ol SrslG♦ l0 44.12kLESS .90&0 r1 CO OINiLI N./r0 .• .as rc .0101-01 11 - Gf{S aOxO ft of elsr.ICT is USs OM00 fG Of 011111, N )%)I? S. "A .. .. .. __.. LLU A MO. TL OT 91SM IG1. .St—_--11.0.■ Gess AMO tG Of nlsn ICT M ►e SS 4AMI4"0 rc or offrU" W s.N9 Halt •• SAN 1I TL Of oil,. SL1 ■. 1■■.ari LESS.9010 IC Of sIST.111 N Ltls .colo TE co 01sTa1Ct itILIN . .._ ... ,.. _ .. _...---._. ..,, .. .. .. _ LIST _11010 rc cl MUM v 1 A h M Q� t " Y 10 T.G117/11.N 0 I G N T ( G U Y T ♦ P.GE 0 PPOPE•T♦ TA. ANAI♦SIS !♦ VSE Of TE 7/T!/•. • SC+oo( OtstAlcr UI ' USE KAES PACTS 1 ....iT ♦KUE 4 T.. C.P.CIT♦ t Goss T.. 1 YET TA■ t r•.. - 29.5)..St NO 7S.2 N.O... S00 t1.. 11..9.! 14.1 IN.1l0.00 11.1 1.I.S41. )0 It./ filf AK I..14 )tl I -T 11.IN.rlJ 1.1 714. Nr 11.! 71..111.14 11.0 11a.1)1.14 11.0 011f IO1MIlAl A10.11 1. f•1 )1.l /1. sv1.100 51.1 9f a..11 .1.. 1.0.4. /1/. t0 -.1 1.4.1.1•/.SO t1.. •• -. _.a Itt.00 !► 1.1 •. /•0.I00 7.1 I1).i4. 0.1 221.141.- 4.r 221. T.).N •./ 11-11r01µ 11 .� -.7 1.1)1.•00 .4 a1../4 t.l 7t. 1.1.02 2.3 14.141.07 1.l ,� Ytlllfl 1• A.J.C. tJJ 1.J 111.70• 9.1 21/.19...1 lo.t 277.1•A. si lo.! - --rt --•I- 1.f00 •.017 .f 61074. .1 6001.0• .1 A. VACANT AES a--.rwswr mNe■ t►+. rY10L N41w►r1 IOJ•LN 1.114 91.1 UIJa.too •1.1 1..11.ty. HAA !.101. 111.1. •..• 1.14..1 N.l0 N.• �.. m�1 /W10f♦ IV l.. 7.141 ..0o I.e N.•/. 4.1 111.107.E S.J 111.117.)• 1.0 w 00. N7.N 1.11! 100.0 1)).NI.100 100.0 IAV10.7/0 100.0 7.104.!00.4! 100.0 1.101. 111. )• 100.0 0� •e Yse 111.6 !IRKS 1-0.1? ♦.1U1 1 rY WKrrt 1 011M rM 1 Net fA1 1 11.64.11 111- 11.1 AAAA St.•00 4.2 64S.621 4.4 114.!.6.- 1.1 1t•.1... 1. 1.1 4f.3 AEC 9I .Oo -'1M -*•! 4.X1..00 I.J 174AIN .1 M. IT.." -Y► 111. /I..N .I N 6f710EN11Al 1.11.. IU 1. t40 60•1 717.9111.000 1... 7.40!. W1 14.1 f..lA. )11.10 Z-... CO..HIIK 11..• !1/ 4.1 74.111..00 S.. 1..11.4:7 L1 IN10. bt.le r.9 1..10.tN.14 Le • -- t.0U4r.lAf 10 .\ 0.N1.000 1.. 10.. N1 7.J .1 •. W\..0 f.J .I9. w1..0 1.0 UIIl 11T It .1 147.919..01 -.0 17.044.711 07.4 1/.417.441.11 A/.. 11.431.112. 1t AT.. •.Il. WO T .41.100 17.4.. .1 rS.111.6 .I 71.711.0. .1 MCMI N1 VK ANT OIN4A OWN, NK 11T.Tf 10.•\\.OU ..M. .6.\ 101.100.100 .A.J 11.401.410 41N 10.7!..{01.00 •A.A t0.la\.•01.0• 19.. Pf.soul P.0".1, r0 .. 1.111.100 .. 1.6.404 1.1 !I\. Nf..J 1.1 H.004 101.1 AO.V\\.OJ ...4. 100.4 4N.. N..00 100.0 11.1!/.4.r 100.0 t0.S71..14./0 100.0 t0.t 11 .IAS... 100.0