HRA Agenda 12-03-1997AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, December 3,1997 - 7:00 p m.
City Hag
MEMBERS: Chair Brad Barger, Vice Chair Steve Andrews, Dar in Lahr, Bob Murray, and Dan
Frie.
COUNCIL LIAISON: Roger Carlson.
STAFF: Rick Wollsteller, teff O'Neill, and 011ie Koropchak.
GUESTS: Chuck Riesenberg, Community Capital
Skip Sorensen, Johnson, Sheldon & Sorensen Architects
Barry Ruth, Monticello Mall
Brad Johnson, Lotus Realty Services
Mark Ruff, Ehlers and Associates
Steve Johnson
I . CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE NOVEMBER 5, 1997 HRA MINUTES.
3. CONSIDERATION OF ADDING ITEMS TO THE AGENDA.
4. CONSIDERATION TO HEAR A SECOND PROPOSAL FOR DEVELOPMENT OF
AFFORDABLE HOUSING UTILIZING TAX CREDITS.
5. CONSIDERATION OF A PRESENTATION FOR REDEVELOPMENT OF THE
MONTICELLO MALL AND REQUEST FOR TIF ASSISTANCE.
6. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION FOR
LAKE TOOL.
7. CONSIDERATION TO REVIEW THE APPRAISAL. FOR OUTLOT A COUNTRY
CLUB MANOR FOR RECOMMENDATION TO THE CITY COUNCIL.
K. CONSIDERATION TO ACCEPT THE PURCHASE OPTION BETWEEN THE HRA
AND CARLSON. 225 FRONT STREET.
9. CONSIDERATION TO ACCEPT THE PURCHASE AGREEMENT BETWEEN THE
HRA AND HAWKINS. 225 WEST RIVER STREET.
10. CONSIDERATION OF A PRESENTATION ON THE POTENTIAL
REDEVELOPMENT OF THE SOUTHWEST CORRIDOR AND THE
REALIGNMENT OF WEST OAKWOOD DRIVE.
11. CONSIDERATION TO REVIEW FOR DISCUSSION THE FIRST DRAFT OF AN
ACTION PLAN ENDORSING THE COUNCIL VISION AND POLICIES.
12. CONSIDERATION TO AUTHORIZE PAYMENT OF THE HRA MONTHLY BILLS.
13. CONSIDERATION OF EXECU77VE DIRECTOR'S REPORT.
14. OTHER BUSINESS.
a) Special HRA Mating • December 10, 1997.7-00 p.m.
15. ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 5,1997 - 7:00 p tm
City Hall
MEMBERS PRESENT: Chair Brad Barger. Vice Chair Steve Andrews, Darren Lahr. Bob
Murray. and Dan Frie.
COUNCIL LIAISON PRESENT: Roger Carlson and Mayor Bill Fay.
STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak.
GUEST: David and Joanne Bell. Freedom Development & Consulting
Brad Johnson. Lotus Realty Services
Mark Ruff. Ehlers & Associates
1. Canto order.
Char Barger called the HRA meeting to order at 70) p.m.
Darrin Lahr made a motion to approve the October 1, 1997 HRA minutes. Seconded by
Bob Murray and with no corrections and additions, the minutes were approved as written.
• I 1 yf: •ll I I tlll' .11' yl..:
Two agenda items were added under Item 13 Other Business: Lake Tool Appreciation
Reception and proposed Midwest Graphics relowtionlexpansion.
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Commissioner Fric introduced David and Joanne Bell of Freedom Development &
Consulting. Frie continued stating that the presentation resulted as a request of Mayor
Fair who expressed the need for affordable housing in Monticello and the desire to
complete West 7 Street. With the HRA, the owner by deed of Outlot A. Country Club
Manor; Mr. Bell was invited to the HRA meeting. Previously. Mr. Bell had met with
Frie, Fair, and city staff. Koropchak informed members that HRA is required to hold o
public hearing for the disposition of the raw lands per the Minnesota Statute; however. the
management of the development of the site and income fiom the site belongs to the City
under an executed agreement between the city and the H RA..
HRA MINUTES
NOVEMBER 5, 1997
David Bell informed HRA members of his interest to develop Oudot A. the 16 -acre parcel
owned by the HRA. He estimated the local housing market to allow for the development
of 32-40 rental units utilizing tax credits. The tax credit program is administered by a
state agency and is funded by the Federal Government. Tax credits can either be held or
sold. The waits are rented by families of policemen, f r men, and teasers. Qualifying
annual income levels for a family of 34 range between $30,000 to $34,000. The
proposed project would consist of two-story, two and three-bedroom units with two
baths, single garage. air condition, and appliances including washer and dryer. Two-
bedroom units consist of 950-1,085 square feet and rent for between 5495-$525 per
month. Three-bedroom units consist of about 1,220 square feet and rem for between
$575-$600 per month. The benefit of the tax credit program is an upscale project with
affordable rents. Mr. Beg showed examples of projects completed in Big Lake, Morris,
and Sauk Centre.
The development of Oudot A would include a 17-20 foot berm along 1-94 consisting of
earth and staggered double -row evergreen plantings. In addition to the rental units. Bell
expressed an interest to develop owner -occupied town homes on Oudot A. Previously,
Bell has developed town homes with purchase prices ranging between $84,9()0 to
$114,000 and patio or cluster homes between $105.0(X) to $150.W.
Mr. Bell requested the following: 1. Purchase of Oudot & Country Club Manor. 2. A
decision to allow preparation of the tax credit application. 3. A decision to allow
completion for submittal of the tax credit application due February 12, 1998. 4. TIF
assistance for 275 trees along 1-94, 17,(NN) cubic feet dirt, and trees for boulevard
treatment. 5. HRA co-sponsor to state application or limited LLC partner. Benefits to
the HRA as partner: No financial exposure, additional points for tax credit application,
car/eye community project. and cashtlow (example given I(M). Previous to legislative
changes, a general annual TTF assistance is $1,()(1) per unit. Bell uses I&H of St. Cloud
for management of his units (Mike Soby, 252.20().
In response to an HRA question: Is an of a dable-housing component necessary for
development of this lot or can it be developed solely with market -rete housing? Bell
indicated the need for both affordable rental and market -rate owner -occupied housing in
Monticello. An entire market -tate project is not as attractive to a developer as with the
option to sell tax credits. The applicant requested a concept approval for local
participation (generally 209/6 of project costs) at a minimum of two weeks prior to the
submittal deadline of February 12, 1998. Typically, TIF is used for the local
participation.
Mark Ruff informled HRA that he has been involved in aboul 25 tax credit projects. The
program works well. He advised commissioners not to rush into a project and to consider
HRA MINUTES
NOVEMBER 5. 1997
going out for request for proposals to meet the public purpose for development of a piece
of property owned by the HRA. He suggested to verify the management and controls of a
proposed project and to check with Attorney Bubul on the new law regulating an HRA as
a general partner or limited partner. Tax credits can enhance the quality design of a
development. The question for Monticello "Is there a need for affordable housing?" Can
the developer demonstrate the "but for" test? Koropchak informed HRA members that
another developer interested in the utilization of tax credits had met with O'Neill and
herself to identify potential sites for development which support the revitalization plan and
comprehensive plan. This developer will make a presentation to the HRA on December 3.
Chan Barger thanked Mr. Bell for his presentation.
Administrator Wolfsteller informed members that Outlot A has about $6(11).(x1) in
assessments and delinquent taxes and assessments. penalties, and interest. Chair Barger
asked for comments from members. Mayor Fair felt it was a good project for the property
and thought any income received from the sale of the property at a fair market value was
income to the HRA as funds for revitalization of the rivemfront/downtown. Council
member Carlson felt it was time to market the property and to go out for request for
proposals. Darrin Lahr made a motion for the HRA/Chy to go out for request for
proposals for developmem of Outlot A. Country Club Manor, and authorized Rod
Dragsted to complete an appraisal of the said property by the December HRA meeting.
Bob Murray seconded the motion and with no further discussion. the motion passed
unanimously.
�1*4
Brad Johnson updated members on the progress for redevelopment of the south anchor
stating he has gone through three major -tenant proposals, determined the best use of the
property to be demolition, and anticipates the 1997 taxable parcel of $45,(MN) to generate
taxes between $130,(xx) to $190.000 annually after redevelopment. A study indicates
50% of the local grocery market goes outside Monticello. The development facilitator
works in 45 -day window periods with potential tenams and on November 10 hopes to
have a lease in place and in concept for a 65091 sq ft major grocer with 409) sq ft of
other space. The proposed tenant sees this area as a good market because of its growth
and projected growth. Lastly. the city will be requested to become a pan of the deal. The
facilitator has proceeded on the premise that one-half the tax increment would be utilized
for redevelopment of the mail site and the second -hal f r�pu�b ' improvements associated
with the downtown revitalization plan. The W id like the entire TIF
monies. Anticipation is for a spring construction. K -Man has approved structuraltsite
changes to the mall.
HRA MINUTES
NOVEMBER 5, 1991
Johnson then spoke of the north anchor stating time had been consumed with the south
anchor. therefore, the design sketches for preparation of the north anchor (river area)
have not been initiated. However, the site information from the city was received for
preparation of the no -cost drawings. The proposed project for the north anchor is driven
by the market and the most cumin information indicates the daily day -time traffic does
not support a destination hotel. However, Johnson has a developer interested in the
development of upscale rentals. The hospitality concept has rental rates between S1,2011-
$1.500 phis taxes.
Mart Ruff noted the TIF financial method proposed for the mall site is the pay-as-you-go.
A Redevelopment Contract will describe the terms and conditions of assistance and
describe the proposed project. Eligible costs for assistance include land acquisition,
demolition, relocation, and site improvements. The HRA will need to address the local
policies: Whether to nue TIF to assist another retail grocer and if so, determine what is the
level playing field. It is anticipated a presentation for redevelopment of the south anchor
will occur in December.
Consideration of an uRdate relating to the financings}ptions and development progress of
the National Guard Training Community Center.
Mark Ruff apologized for not bringing the HRA into the discussions earlier relating to the
financing of the proposed NG Training/Commwnuy Center. Mart explained that a G.O.
Bond requires a referendum and a lease/Purchase Bond does not require a referendum A
G.O. Bond has a lesser taxable impact on commerciaUmdustry and greater impact on
residential and a Lease/Purchase Bond has a greater impact on commerciaVmdustry and
lesser irnpect on residential. A lease Bond could be a 20 -year bond. The City Council's
decision to utilize lease/Purchase Bonds allowed the city to respond to the National
Guard vie a Letter of Intent because no referendum is required thereby rneeting the NG
deadline. Either an HRA or an EDA can issue the bonds. Initially, the NG had three
location options: City, School (deadline of December/January), and self -standing industrial
building.
Mart indicated the bond holder may not be the HRA as this depends on how the NG fits
into the project. Will the NG be a tenant or ownet! Secondly, the city has $91AWO cash
for a new city hall. the NG committed $1.5 million. and MDOT 5511,0110; therefore, the 6 -
million core project would have a 4 -million debt. If the core fhcility is financed by a G.O.
Bond with 111% of the project cost is pledged by tax increment. a referendum would not
be required. The estimated annual tax increment debt would be about E62.0W.
HRA MINUTES
NOVEMBER 5. 1997
Mark indicated other financing options still remain such as a local targeted -sales tax. This
requires Legislative approval and local referendum approval. Another option is the local
Liquor Reserve Fund. In Chaska and Champlin, the operational budget is covered by user
fees and the community center is an enhancement for commercial and industrial site
development.
"How about an ice sheet rather than a city halt!" was a question asked. Mayor Fair
responded, an architect has been hired to facilitate gathering of community input and to
educate the public. The project must have value and the community center must provide
uses to draw families, must serve as a place for commuters to socialize, recreate, and shop
(be a place of community identity). Two million was estimated for the ice and 1.6 million
for the water. Barger agreed with the concept of a community center, however, preferred
the greater taxable impact on his home rather than his business. Lahr said the facility must
be a destination center and not an office building only. Andrews departed the HRA
meeting.
7. Consideration to determine cleanun and rental rates for the 3 Walnut nronertv
S.
Koropchak reported Andrews and she had toured the interior of the home with Mr.
Schleif, and felt the home was at need of cleaning and painting.
Frie informed members that Value Plus receives rental of $500 plus utilities for a property
in good shape. Brad Barger made a motion authorizing a service call for all natural gas
appliances, establishing a monthly rental fee of 5550 as is for the property at 3 Walnut
Street. notifying Fair. Andrews, and Frie relating to tenant list and thereafter if need be
contact the HRA Chair prior to advertising. Martin lift seconded the motion. In
discussion, Bob Murray requested as a measure of health prevention that the carpets be
cleaned. With no further discussion, the motion passed unanimously inclusive of the
request.
Although the asking price of Sg9.9(1) was less than the 1997 estimated market value of
598,(X10 and the parcel was a river flowage lot, Darrinn Lahr made a motion denying
authorization to obtain an appraisal for the 401 Front Street property. Reasons for denial:
The parcel is not within the immediate targeted redevelopment area, two residential
structures lic between the said parcel and the targeted area, and the HRA has limited cash
fLrds. Dan Frie seconded the motion and with no fLrther discussion, the motion passed
unanimously.
HRA MINUTES
NOVEMBER 5, 1997
111 I 11 � 11 h T
Brad Barger made a motion to table this item for the December 3 H RA agenda. Damn
Lahr seconded the motion and with no further discussion, the motion passed unanimously.
10. Consideration to authorize oavment of HRA momhly bills.
Brad Barger made a motion authorizing payment of the regular HRA monthly bids and
authorized disbursal of the October 13 Hoisington invoice of $15,895.97 subject to
approval by the MCP for satisfaction of work and completion. Bob Murray seconded the
motion and with no further discussion. the motion passed unanimously.
11. Recon by Executive Director.
Report was accepted by the commissioners. Departure time to the NAHRO conference
was changed from 7:15 to 70) a.m.
12. 111' ! yl:. 11 1!Iw:t.!Il'1
225 Front Street for pment'al1 1 1
a) 225 From Street -Commissioners compared the appraisal value of $165,0(9)to the
estimated market value ofS125,6((). The land appraised at $750H). Frie agreed the
property was unique because of it's location on the river. However, he felt the appraisal
did not have comparable sales of properties on the river and the appraisal listed the
property outside the Rood plain. Frie gave an example of a West River Street propeny
consisting of 1,5(() sq R and two lots which sold for 5129,5(10. A new home was build on
the second lot and the original home and lot was resold. Murray felt the roof should be
inspected by a structural engineer. Other members agreed Carlson's insurance should
cover the roof damage. Barger felt this property was key to the redevelopment of the
river and downtown; however, he noted the taxpayer's money must be spend wisely.
Dartin I.ahr trade a motion to offer an "option to purchase" in the amount of SI 30,(XK) as
is for the property located at 225 Front Street. Purchase Option to expire in five years,
the H RA has the right to exercise the option within the five years with a six-month notice
to the seller to vacate. An annual payment of S I d(9) does not apply to the purchase price.
HRA garage located at 220 Front Street is available to the seller at no fee and at no
liability to the HRA. Bob Murray seconded the motion and with no Rather discussion.
the motion passed unanimously.
HRA MINUTES
NOVEMBER 5, 1997
b) 225 West River Street - Lahr was not convinced the seller would not consider an
option as he felt the Realtor was steering the seller to cash out. Frie thought the appraisal
was within reason at $69,000. The land appraised at $20,000. The estimated market
value is $49,500. Dan Frie made a motion to purchase the 225 West River Street
property at 550,000 as is. Closing date of May 1, 1998. Bob Murray seconded the
motion and with no further discussion, the motion passed unanimously.
S71 ;,-,
Additional agenda items:
HRA members were invited to a lake Tool Appreciation Reception on Tuesday,
November 25, at 3:30 p.m. Location as Dundas Road and Dundas Circle.
Koropchak informed members of a scheduled meeting the Allied Companies, contractot
for the proposed Midwest Graphics relocation/expansion. Koropchak noted the May 7,
1997 HRA motion authorizing Ehlers and Associates to begin preparation for
establishment of TIF District No. 1-23, an Economic District, subject to: Execution of the
Preliminary Agreement for use of TIF and receipt of =5,000 cashier check. Approval of
the TIF District subject to: Evidence of findings to satisfy the "Green Acres" test and "but
for" test and execution of the Private Redevelopment Contract between the HRA and the
developer. Proposed 40,000 sq ft printing/office building, 22 new fill -time jobs at an
average wage of $7.50 ph with paid fringe benefits of retremernt plan, health insurance,
short term disability, and life insurance. Members affmrmed the motion.
Bob Murray made a motion to adjourn the HRA meeting. Brad Barger seconded the
motion. The meeting adjourned at 11:20 p.m.
011ie Koropchak, Executive Director
HRA AGENDA
DECEMBER 3, 1997
Chuck Riesenberg, Community Capital, will make a presentation for development of
affordable housing utilizing tax credits. Chuck and Skip Sorensen met with O'Neill and
Koropchak on October 7 and 28, to discuss the merits of an affordable housing project
using tax credits. Staff identified various sites within the city's fringe area supporting the
goals of the Revitalization Plan and Comprehensive Plan. I believe this presentation win
be targeted at one site maybe two.
If a housing market study indicates there is a need for affordable housing in Monticello,
the HRA will need to consider its support through the establishment of a TiF Housing
District. Again, a project qualifies as a "Housing District" by meeting a certain family
income -level as determined by the Federal Goverment. And a "Qualified Housing
District" must meet both the income level and rent restriction requirement. It would be
important for the HRA to support a project which qualifies as a "Qualified Housing
District" as the city is then exempt from the HACA Penalty.
Remember, a developer receives up to 10 points if the tax credit application includes local
participation in the amount of 20% the project cost. Applications are submitted and
ranked by the Minnesota Housing Agency. Generally, the local participation it through
TIF; however, not restrictive to TIF.
You will have heard two presentations requesting TIF assistance for development of
affordable housing. David Bell made a presentation last month and now Mr. Riesenberg.
Application deadline for tax credits is Fclauary 12, 1998.
The RFP for developnwmt of moderate -high density residential on Outlot A.. Country
Club Manor, was trailed November 14 with proposals due back no later than December
12. The RFP did not target affordable housing.
Let's assume there is a need for afrordable housing in Monticello and all proposals support
HRA -TIF policies and local development objectives. Here are some alternatives for
consideration:
HRA can endorse using TIF for all projects and let the merit of each project be
ranked for tax credit finding by the agency.
(In this case, the HRA doesn't eliminate any project. However, if one or more
HRA AGENDA
DECEMBER 3, 1997
applications are submitted and because tax credit applications are very competitive,
wf this hinder the approval for funding a project in Monticello?)
2. HRA can endorse using TIF for one project only (Perhaps only one project
meets the community objectives and this may increase the chance for tax credit
Wig.)
3. HRA can deny use of TIF.
4. HRA can table any decision tmtd January 7 meeting.
b
HOUSING AMID REDEVELOPMENT AUTHORITY
City of Monticello
TAX INCREMENT FINANCING POLICY
Program Purpose: The Monticello Housing and Redevelopment
Authority will utilize Tax Increment Financing to support the
co=mnity's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
considerations and the project's value shall be determined, based
upon meeting these considerations.
1. The project shall be consistent with the CityyIs Comprehensive
Plan.
2. The project shall demonstrate long-term economic and/or
housing benefits to the community.
3- The project shall create and/or retain employment for
Monticello residents.
4. The project shall increase moderate priced housing options for
area residents.
5. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HRA.
6. The project shall facilitate the "clean-up" of environmentally
unsound property.
7. The project shall provide additional public funding for public
improvements including utilities and/or park development which
would not otherwise be available.
8_ The project shall be deemed to promote additional desired
"spin-off" development.
9. The project shall demonstrate "conesunity involvement"
including demonstrated degrees of the various factors:
a) Local residency of the company's owners and employees,. or
b) Local residency of the 'contractors involved in the
project, or
c) Membership in local business organizations, or
d) other similar factors.
HRA AGENDA
DECEMBER 3, 1997
5. Consideration of a presentation for redevelop= of the Monticello Mall and request for
TIF assistance
A. Reference and badigmuod:
After the presentation and request for TIF assistance by the owner and developer, Barry
Fhdk and facilitator developer, Brad Johnson; the HRA should consider authorizing
Ehlers & Associates and Kennedy & Graven to further explore the request for TIF
assistance subject to receipt of a $5,000 cashier check from the developer. The cashier
check to ensure the HRA expenditures to case the project does not proceed.
TIF District No. 1-22, a Redevelopment District, was certified in March 1997 and was
established to encourage redevelopment and revitalization within the boundary of the
district. District 1-22 was established as a means to implement the MCP Downtown and
Riverftrom Revitalization Plan. Initially. the HRA had hoped to capture the tax mcrement
from a proposed mortuarydevelopment along Walnut Street. However, that proposal
never developed. Based on the Revitalization Plan, Ehlers & Associates has continuously
advised the HRA to concentrate on redevelopment of the north and south anchors.
Additionally, the concept of a 50/50 tax increment split from redevelopmenn of the south
anchor has been targeted and marketed. Mr/a for redevelopment of the mall and 5(W/o for
other downtown redevelopment.
Mr. Brad Johnson, Lotus Realty Services, Inc., has bees a frequent visitor to the HRA
updating members on various proposed redevelopment projects for the north and south
anchors.
Other activities already implemented in support of the Revitalization Plan are the
downtown thcade gram and building interior loan fwrd and zoning ordinance for
implementation of the goals and objectives of the Revitalization Plan and the establishment
of the MCP Design Advisory Team Additionally, an architect has been hired for design
of Phase I of the proposed National Guard Training, City Hall, and Community Center
along Walnut and Fifth Street.
Since District No. 1-22 is an established TIF District, the decision of how to use 71F and
the dollar amount of assistance is the responsibility of the HRA and does not proceed to
the City Council for approval. You will be asked to make some difficult and political
decisions, l recommend you weigh the pros and cons of the request and take time to make
a decision. This is the first formal presentation and request to the HRA A follow up
HRA meeting has preliminary been scheduled for Wednesday. December 10, 7:00 p.m It
is anticipated Mark Ruff will run numbers for TIF assistance, if received in -time of agenda
delivery they will be enclosed. letter of Request from Brad Johnson is enclosed.
HRA AGENDA
DECEMBER 3, 1997
Here are some facts and suggestions to assist in your decision:
Facts:
1. Minnesota Statute no longer allows for establishment of an Economic District for retail
business.
2. Efigible costs for a Redevelopment District: Land acquisition, demolition, relocation,
site improvements and public improvements.
3. Examples of Estimated Market Values of Land/Building and TVfaxes. See
Attachment A.
4. Examples of TIF assistance:
Raindance Properties a Land acquisition $167,850; construction of Sixth Street
and soil correction $116.000. and IegAVengirreen $22,000 for total of $305,850.
5. Estimated EMV of proposed 65,000 sq R grocer and 5,000 sq ft other and land =
$2,700,000 to $3,000,000 per Doug Gruber, County Assessor. ($42.85 per sq R)
6. Estimated EMV of 65,000 sq ft grocer in Elk River is $60.00 sq ft or $3,900,000 per
Brad Johnson.
7. By stardWs, 50% of the grocer market leaves town. In Monticello, 2094 leaves town.
Sugg mod quetrions:
1. Does the project meet the HRA -TIF Policies'!
.a
2. How is the proposed major tenant involved or plamf'to contn'bute to the local
conmumityr
3. Does the project meet the "but test -1 Request written evidence. Will the project move
forward solely on private dollars?
4. Request a proforma which demonstrates the need for 71 and shows the projected rate -
of -return.
5. Request the Letter of Request identify by lure -item both dollar amount and eligible
item.
r
HRA AGENDA
DECEMBER 3, 1997
6. Although not an economic district, you might inquiry to the projected number of jobs
and wages.
7. Is the TIF assistance within the level playing field? Does the TIF assistance go directly
to the developer or the retail grocer? Can Monticello afford not to provide TIF assistance
and allow a perhaps "destination tenant" to develop elsewhere within Monticello or
surrounding area? What are the benefits of the project and other spin-off development?
8. Will the project increase the tax base of Monticello?
B. Altenuitive Action
-
I . A motion to authorize Ehlers & Associates and Kennedy & Graven to further
explore the request for TIF assistance calling a special meeting of December 10,
7:00 p.m Motion subject to receiving $5,000 up-fiont dollars.
2. A motion to deny further exploration of the request for TIF.
3. A motion to table any action.
C. Ration:
Recommendation is Alternative No. 1 because the project supports the MCP
Revitalization Plan and City Comprehensive Plan and is one of the reasons for
establishment of TIF District No. 1-22. Alternative No. I allows for flrther exploration
and will provide the HRA with information for negotiation of the Private Redevelopment
Contract. Most importantly, to determine the level playing field for TIF assistance
assuming the project has met the HRA -TIF policies.
D. SuMMniUSIbI&
Attachment A. letter of Request, TIF Policies, and Mark's projections if received.
HRA AGENDA
DECEMBER 3, 1997
ATTACHMENT A
Herm
SQ 8tbld8
Agm Ehff
EMV
Sq ft b1da
Tl I=
Monti KM Parutership
86,479
3 $2,825,700
$32.67
$98,819 $145,656
(K-Mari)
Standard Iron
52,000
5 $1,532,500
$29.47
$76,669 $78,111
Reudance Properties
33,000
2 Y: $1,388,900
$42.09
$69,997 $70,671
(Maus Foods)
Barry Nth
69.900
7.18 $ 802,400
$11.48
$40,011
(Mom Mall)
Land $60,100 Bu�Ming $341.700
.,An
Proposed (Gruber)
$2,995,500
$42.85
$ 98,793
Proposed (developer)
$4,200,000
$60.00
$153,052
4
b
NW -26-1997 14:04 CFV*HgSSEN SECRETARIAL 612 934 3561 P.01iO3
LOTUS
REALTY SERVICES
November 26,1 997
Monticello BRA
City of Monf=Uo
POB 1147
Monticello, MN SS362
ATTN: 011ic Kompschak
Fax: 612-2954404
SLTBJ=: Monticello Mall Redovdopment
Lotus Realty Services on the bebalf of Barry and Barb Flutk owners of the Monticello
B4 hereby request the Monticello HRA provide Tax Increment Assistance toward the
redevelopment of the mall.
The redevelopment plan includes the following:
Relocation of alstitlg taaaats
Demolition of the mall
Relocation of the utilities
Reengineering of site
Construction of a 65,000 sq.1L Cub supermarket
And S,000 sq.R of additional retail space.
We respecdUlly request S600,00Coarrent values of Tax Increment Assistance on a pay as
you go basis. The amount represents approximately one half of the increment the
redevelopment will provide the HRA. The balance can be used for other projects at your
discretion.
The Tax increment will be used for tenant relocation. Costs related to the demolition of
the mall, site reconstruction sad relocation of utilities.
The Cub store will be a major step towed the cities goal of maintaining the viability of
the retail business oath of highway 94. The Tax increment also provides the opportunity
for implementation of your downtown redevelopment plans along Walnut Street with
Cub and KMart as your south anchor to the plan.
55: ...GST 76TH STAEET 8 PO 00x 275 0 CMANMASUN, MINNESOTA SS31710,g121 934.4138 8 FAX M2) 93+•5472
NOlr26-1997 1405 SECRETARIFL 612 934 3561 P.02/03
g Your fimm al wnm t m has beta povided the atm Costa of the and
he will make his report at your Deoemba 3rd mooting.
Thank you very much for your oonadaa>ion of our request.
Since ,
Brad Johnson
BJpp
C3
4
•
PavvIr Fax Nde 767,
C. ------
Or'd Johns
AkPL
P�v
F
_,6 "I
UVIEMIW STRKt
r' t! 1(IIIIIf11t1iiR(ffiF IMITrIR,
Z7 7 -Z
Oc
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WAS
94AA&I
OMSTATI OaGH WAY 14 F.
=fA
CSP.
HOUSING AND REDEVELOPMENT AUTHORITY
~ City of Monticello
TAX INCREMENT FINANCING POLICY
Program Purpose: The Monticello Housing and Redevelopment
Authority will utilize Tax Increment Financing to support the
community's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
considerations and the projects value shall be determined, based
upon meeting these considerations.
1. The project shall be consistent with the City's Comprehensive
Plan.
2. The project shall demonstrate long-term economic and/or
housing benefits to the community.
3. The project shall create and/or retain employment for
Monticello residents.
a. The project shall increase moderate priced housing options for
area residents.
5. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HRA.
6. The project shall facilitate the "clean-up" of environmentally
unsound property.
7. The project shall provide additional public funding for public
improvements including utilities and/or park development which
would not otherwise be available.
a. The project shall be deemed to promote additional desired
"spin-off" development.
9. The project shall demonstrate "community involvement"
including demonstrated degrees of the various factors:
a) Local residency of the company's owners and employees,. or
b) Local residency of the 'contractors involved in the
project, or
c) Membership in local business organizations, of
d) Other similar factors.
DEC 03 '97 03; IlPM EHLERS & ASSOCIATES P•2/3
MankoW MR. 111,000,000166na V46s m w4.. Mw
T.I.F. CASH FLOW ASSUMPTIONS
In'wat R.0 7,00016
Ta. E twwlon RAO: 1 12 Pay 97 Rfu
Mub— Rab 0.0000%
BASE VALUE INI fORMATIONT
Marks fqu Ter
PIN _ V.%A R■u Gpatity
Iq Ya1 807,4003,IV40% 30.160
4461 802,600 30.1" E.16,.alae Pay 98 TL Capooly
6311-- K 1301407 P+ 1
4ftOJECT VALUE INFORMATIO),I
Ty/. d TY Ina0m.r4 Di",M
R.O,v4bpelan,
Tym of Dm600mant
R.W
n. *—.1 S.J" 9quara flow
70.000
Eama1a0 Yana V" of N" Prgac
],000.000 Pay 00
Cu46 Rau m Nat 6160,000 9 MaAM V.
2.701
Can P1 Mmkat V"o 1 6150,000
400%
E65matr4 T. Cap":
116.050 Pay 00
E61mat T—
132.210
Nn -1 T. lw.,wm
96,.62
Nuaa.orl MarW Vuwe f
662 86
L.eva 1
61.09
TAX INCREMENT CASH FLOW
prolaC C66oesa Barrl.ArrwI n,
641+1ArwuTa�
LOwI
lywn
.. .. -_
PER100 BEGINNING
Taa
Ta• T. Orae Tp
.1
NM To 610911]11
MdH, N
of PERIOD
ENDING
W.,
MR Yr
c2 m IrltfarneN
e 6_0
011
Ir,Orernrl
f 00% 1
00
5,%
Im er11em Vn
Im i
0201 19/8
.146
30.146 " 0 0
0
0 f
0
0I
00 0.5
06-01 1998
00
06-01 111"
0
0
0
0,
0
0.0 10
0201 tq6
00
02-0t 1099
70,146
30,140 0 0
0
O
0
OI
00 16
06-01 1009
0 0
0114 1999
0
0
O
0
0
00 2.0
0241 2000
00
024: 2000
30, 146
11 a.050 a7,9" 49,226
(2.361)
.4.765
39."
1..477
0.6 25
0401 2000
OS
06-01 2000
4
(2,4611
467651
77,416
2,4,
1,0 30
02-01 2001
10
024 2001
50,140
116,050 67,9" 40,226
(2.461)
.4,766
114,175
2.4611
1 S 16
0401 2001
15
Deal 2001
4922E
(2,461)
36,165
149.6a9
2461
20 40
0201 2002
20
02-01 2002
30.146
116050 87,11" 19,226
(2.66,)
40765
183,0021
2.461
26 a6
06-01 2002
25
09-01 2002
45,229
(2,361)
.4.1651
217,1541
2,4611
30 6,0
02-01 2003
1 310
02-0: 2003
30.146
11x.050 8764 49,226
(2.461)
.4,795
246.160
24etj
3.6 6.6
—,I 2003 1
)6
Oa -0t 2003
49,236
(2,461)
46,7x5
260,134
2401
•0 6.0
02.0, ID"
40
0.0 2004
30,10
I l a 050 879" 41,229
(2,4011
46.745.
310,0301
2,461
6 6 66
060, 204
45
03-01 2004
40.270
(2,.61)
.47051
330,026
2.461
6,0 70
0201 7003 1
110
02-0: 2005
30.146
116,050 07,0" 49,238
(7461)
46765
366,"0
7,41
5,5 75
01-01 2008 1
5b
004 2005
49,226
(2401)
46,765
303,8091
2.",
6.0 5.0
0201 2006
60
02-0t 2006
30146
110,050 67.9" ",226
(2.401)
46,765
419,667
2,411
ob 65
01-01 7006
1 5
0401 2000
39,210
(7,4011
46 765 I
a","31
2,401-
70 9 0
07-0, 2007
7 0
02 01 2007
30.146
1 14050 67 9" 49 226
(2.36:1
4,765
469,368
2 461
7 6 95
0101 2007
1S
064: 2D07
46.226
12,":1
46,765
692,071
2,40,
80 100
0241 2006
40
0241 2008
10,146I
10 o50 67.9" 49,228
(2.61)
44 765
616,679
2",
6 b 10 b
0641 2006
I6
08-01 7006
40,726
(7401)
N.78S
637,616
2,41
00 11,0
07-01 2009
1 60
024 2009
30,146
110,010 07,0" 40,271
(7,40:)
40.706
666.710
7.401
16 11.6
01-01 1009
l (
014: 2009
39.220
(2461)
".766
579.197
2"1
100 120
074, 2010
100
0241 2010
30,146
118050 97.1" 1,226
(7.411
46,+05
5".988
2,40,
,05 125
0"1 2010 1
105
o" 70,0
1.I2e
l2.":)
46,151
01/,05
2,4011
110 1J0
0741 201 1
Ito
07-01 2011
30.146
116050 17.W. 49.2"
12",)
4615
636,676
7431
116 136
M01 Ton
ns
08-01 ton
4.276
12,"11
4,7]5
]54.676
2461
170 v0
0741 2011
110
0361 2017
30.1.6
11 a 010 071" 4a 226
(7 ",)
N res
371 370
1401
12 b ,. 6
06-01 2012
125
00-0; 2017
1.236
12,4611
36 /5
0843],
7 401
n 0 ,6 0
0241 2013
135
024 ton
301"
11e"a 40.9" ]278
I;"
46 51
7",.30
2,40:
+36 ,66
oea, 2013
'Jo
0641 2017
",226
0..611
46785
7,9,963
2401
140 leo
0241 2014
140
0201 2014
30,146
IIB WO 67.9" ",276
(2.4011
46,16
135,010
2461
14b 166
08-01 20,4
,_0401
2014
46726 ?,461) 4615
��i7
741,630 7401. IS 170
—
02-01 2016
�'
-
Tout. (73,011)
•�woA Y—�1w6 9aa6lA 30.
_
--
3,139—.--
-
I
6311-- K 1301407 P+ 1
DEC 03 '97 03:11PM EHLERS & ASSOCIATES P.3/3
�r1.4 M2M000WAMV .mN R-
rt-. xN 441.M1r. K '14", P.C.,
T.I.F. CASH FLOW ASSUMPTIONS
1m " Rab
7OW%
Tar Edan Rao
1 12 Pay 97 Rate
In6a0pn Rat.
0 OODO%
BASE VALUE INFORMATION
MM1ut
ClaM
T.
PIN
- _
Va616
Rab
cam'y-
- _
1/eMo�11
e02.`_27`1V. 011
70,1.6
602.00
30,146 E25frbt.6
Pry 96 Tax C4D.Pty
PROJECT
VALUE
INFORMATION
Typs of Til Irv-wi Dstna
Ra001a10pr7rn,
Type of DPWupman
8641
NumlMr 6f B31ar,0 SRure i"
70,000
Exwo. 0 MM1b1 Vax a Of
me. P1 IW
4,200,000 Pay 00
0466 Rab M 1.51 $160,000 of MaAM Vaan
270%
C4aa Ram M4r.p Va4. >
$150,000
4 00%
;6;v -a d Toa Ca. -.7.
P., 00
esor,I W Ta -a;
,6!.076
A M Tax m09 m
752,212
A.... -I, Msraal VMuya
4
!66,00
TamM 1,
0266
TAX INCREMENT CASH FLOW
-Bu4
Prppp c.p4n�jYN�VirwM
.arm,�i.Amy.�PJ aTV Local I
r.0...
--�
PERIOD BCGINNING
Tax
Tax T.
W6aa Tax
et
No Tax 1.11.11-0
m wh at
Of PERIOD
ENDING
Yrs
Moi
Yr
C amity_
2ne6tY CAly
1nfl6mum
0% 60
I rpamam
700% �
60 0%
I- n"t Yr1,
M0, Yf
0 0
02.01
t 00V
70,1.6
30,146 0
0
0
0,
_
0
0
00 05
06-0, 1604
00
Da.01
t9O3
0
0
0
0
0
00 t 0
02-01 +966
0,0
07-01
7009
30,1.6
30,1.6 0
0
0
0�
O
0
00 1 a
ca 01 ,099
1 00
0601
1999
0
0
0
0
01
0,0 20
00-01 2000
0,0
02-01
2000
30,146
166,050 135,004
76,105
(3,:051
7).701
40,6761
3,446
06 26
0601 2000
0,6
06-01
2000
76,10:
(7,605)
72,101
710,602
3,9061
10 3.0
0201 2001
1.0
02-01
2001
30,140
166050 135904
76,106
(3,6051
77.301
,76,520
3.605
1.5 35
06-01 2001
I 15
00-01
2001
76,106
(3,601)
72101
27 1.4201
3.603
20 40
02-01 2002
20
02-01
2002
30 1"
166,050 135,90.
76,106
(3.44s)
77,)01
24.76
34051
25 45
06-01 2002
1 25
09-01
2002
7a,10s
(3.605)
7230,
333171
3,605
30 50
02-01 2003
30
02. 1
2007
30.146
108,060 137,94
76.106
(3,605)
72,701 I
3657671
3,6051
3 5 5 0
0601 2003
J.5
06-01
7007
70.106
(3,003)
77.301
433,101
3.805
40 60
02-01 2004
4.0
07.01
200.
70.1.8
166,050 136,00.
76100
13.603)
72,3011
479,3311
3,805
46 6.5
04-0+ 2004
4,5
08-01
2004
76106
(3.605)
72,301
627,907
3a051
60 7.0
02-01 7005
30
02-01
7005
30,1.6
166.050 135,904
70.,06
(!,6051
71.101
667,1!2
3,005
55 75
0601 20M
!s
Oa -01
1006
76.106
$
72.3011
844,491
3,0051
00 40
0)-01 2000
60
02-01
7006
30,146
165,050 135.004
70,106
(3.446)
7230+
6.0 133,
360!
65 85
0"1 2006
0.6
06-0,
2006
76106
(Leos)
721011
a"069
3.505
70 60
02-01 7007
70
02.0,
2007
30,146
+68.050 cal, 90.
76.106
(3,406)
77.101
7254671
3,6051
75 96
08-01 2007
1 7,5
08.01
2007
76,106
(3,005)
77,301
782007
7,605
60 100
07-01 2000 1
6.0
02-01
2004
30 1.6
166 030 136 004
78106
(3 003)
72 301 '
707 110
3,805
86 105
06-01 7004
a5
000,
2006
76,106
(3605)
7230+!
5310301
3.805
90 110
02-07 2000
0.0
07.01
2002
30.1.6
106050 13600.
76,100
(3.005)
73,30+
067,44]
3,8031
:6 1l s
(11-01 2009 1
0,
00-01
2000
76,106
(3.606)
77.3011
693,468
3605
100 120
02-01 2010
loo
02-01
2010
30.148
104,050 135,944
TO 106
(3.405)
72,701
926.0621
3,605
106 126
06-01 20+0
105
06-01
2010
76,+OG
(3.4041
72.10,
95!,671
3,4051
n 0 130
0:-01 IOt 1
1110
02-01
20,1
30.145
166,050 175,444
76,705
(3.005)
72701
064.101
3,406
11s 136
0601 20,1
116
W-01
201,
76100
(3.806)
72,2011
1.01 1,7761
3,605
120 140
02-01 7012
12.0
02-01
2017
30 146
IC4 030 135 904
78,106
(300s)
72301
1 , 436
%Zs
126 14 5
d-01 2012
1 126
060+
2017
76,106
13,605)
72301
t,064,,05
3,a"
130 150
02-0t )017
1130
02-01
2013
301.6
166,0!0 136,90.
T6100
(3,608)
72.3011
1,060,007'
1,6061
126 166
00-01 2013
135
011-0,
2013
1M1,100
(3,006)
72.1011
1,1131301
3,0061
140 160
02-01 1014
,4.0
02-0,
2014
36,46
166.050 Ua,00.
76,,06
3,805)
77.30+
1136,363
3,90
145 ,60.
08-01 201.
ue
0401
2014
76.106
7006)
72.301��tse,e111
3160l;
130 170
02.01 1015
__
Tp41p 831j
114,160)-
�,6Y 074
114,169
I
_
_
_
Lm..mm V"--
y
_1,710, 1--L YOOi 1.154,Iti�
--__
_
rt-. xN 441.M1r. K '14", P.C.,
The City wifl support maintenance and reinvestment in costing owner occupied and
rental housing and business properties so as to discourage blight. Blighting influences
on eiauing housing and businesses must be controlled.
Our city will have abundant parts and recreational spaces for its dtinm. Its streets
and neighborhoods should retain a park -lite atmosphere that takes advantage of the
city's location on the river and our developing pathway system.
As "quality begets quality", public facilities and spaces should rellect pride by their
construction and maintenance. Monticello should be dean, safe, well forested and
visually inviting. We will support pride in the place we all home.
SociallCommanity
I . The City will create and encourage opporturrit= for people to become involved and
connected to their community on an levels (i.e. civic, church, community
organizations, government, etc.).
2. We will encourage civic and community organizations that provide welcoming
opportunities for people to became actively and cooperatively involved with their
neighbors.
3. The City will seek coauant renewal through community vohmteerism and celebrations
that reflect our history, our oarem accompnsbmvus, and our vision of the future.
4. The City will promote partnerships with other communities and governing agencies to
sham a broader view of community.
S. The City will strive to gain regional rewpition as a desirable place to live and work
("Our kind of placd)
Cultural
The City will encourage and support Bequest and diverse opportunities to celebrate as
a community so citizens may c9crieeoe the unique and historic aspects of our
community culture.
Our history and the fine arts, including music and danca, will be promoted and
Bualitued in our city. They define who we are and what keeps us here.
Economia
The City will adapt and respond to the regional martetpleee and direst our resources
to dimadate the development of Monticello as a destination unity that is self-
atstaining and self-afficiern.
The City wn'B take economic adva uge of our atrea ve regional location that provides
ready access to tretnportatioo systema finking urs with huger etwaornic communities.
oovEnro.Vcr. oacr toper 2
Our support of economic development will be directed toward the creation of jobs
that are not just `9iveable" but prosperous, stimulate the local economy, and capable of
supporting our families and community.
4. The City wig encourage reinvestment in our community and support with our
resources the economic efforts of local businesses.
5. The City will save thrangh dedicated reserves, be prudent in its invents and
expenditures, and strive to maintain affordability of services to its citizens.
Recreational
1. The City will promote, build upon, and take advantage of our public, private, and
natural recreational amenities. We will seek to increase cooperative programming of
the community recreational facilities (civic, township, county, and school).
2. The City will seek to expand public and private rec: oral opportunities in the civic
core to ase downtown vitality. In providing for accessible recreation,
opportunities must be provided for people during normal leisure time. We willprovide
for eventing and weekend opportunities for community activities.
3. The City will maintain and promote pride in our existing necrtstional facilities while
continuing to develop neve recreational uses and facilities which take greater
advantage of the rives and our city/country setting. We will strive to link pathways
and trails to recreational destinations.
4. The City will promote "user ownership" of recreational 6eo7ities through volunteerism
such as "Adopt -A -Park".
5. The City will maximize year-round opportunities for organized and unplarmed
recreation for families and persons of all ages.
Spiritual
1. The City of Monticello must appreciate and celebrate the diversity of our faiths while
recognizing the omens and diversity of our moral and ethical beliefh.
2. The City win respax diversity in faiths and fackate cooperation to make our
community a place diet protects the vulnerable and helps those in need.
I. In governing our city, officials will uphold the highest moral and ethical standards that
reflect the values of our cuittg, compassionate community.
OeVER10.PM QW? Papp 3
HRA AGENDA
DECEMBER 3, 1997
6. Consideration to a== the Certificate of QmWetion for LAke Toot few,
A Reference and bwAumundi
TIF District No. 1-21 was created for lake Tool, Inc. Per the Private Redevelopment
Contract, the completion of the minimum improvements tuning 9,000 sq R mfg/office
facility was to ooar on or before October I, 1997. The Bddmg 016cial granted a
Ocmgmcy Permit for the ficky in early November: therefor, the HRA can consider
approval of the Catificate of Completion. Upon issuance of the Certificate, the developer
wriH be reimbursed the 55,000 upfront monies.
Once the developer gives written evidence of the completion and payment of the she
improvements, the rhburwment payment of $8,802 wifl be issued_
B. -
I . A motion to approve the Certificate of Completion for Lake Tool, Inc.
2. A motion to deny approval of the Catificate of Completion for lake Tool, Inc.
3. A motion to table any action.
C. RwM=MdwiQL
Alternative # 1.
D. $
Copy of the Catificate of Completion.
EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that T.J. Martin, Inc. (the "Developer") has fully
complied with its obligations under Articles III and IV of that document titled "Contract for
Private Development," dated Vker A \ . 1997 between the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota and the Developer, with
respect to conswction of the Minimum Improvements on the property described in Exhibit A
thereto in accordance with the Construction Plans, and that the Developer is released and forever
discharged from its obligations to construct of the Minimum Improvements under Articles III and
IV.
Dated: 199_ HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
THIS DOCUMENT DRAFTED BY:
Kennedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
(612) 337.9300
ur01113611 B -I
90190-511
Authority Rcprcscntative
EXHIBIT A
LEGAL DESCRIPTIONS
Lot 1, Block 1, Oakwood Industrial Park, Second Addition
nmiluu A,1
Milo -so
HRA AGENDA
DECEMBER 3, 1997
7. Consideration to review the ann®isal for Oudot A. Corm a Club Manor_ for
recommendation to the City Council-
A.
ouncil_A
At the November meeting, Rod Dragstad was authorized to complete an appraisal of
Outlot A for the HRA. Enclosed is a copy of the appraisal.
Also enclosed is a copy of a resolution, memorandum, and agreement between or by the
City and HRA relating to this parcel. In lieu of the agreements between the City and
HRA, it is the recommendation of Administrator Wolfsteller and Koropchak that the HRA
review and recommend a disposition price for consideration of approval by the City
Council. A few years ago when the City requested RFPs, the City was offered
approximately $225,000 for the 16-acre parcel. However, the project fell through. Of the
16-acre parcel, 10.4 acres is available for housing development as 2.5 acres is required for
parkland and 3.1 acres for storm sewer pond development.
Per the request of the HRA in November, RFPs were mailed on November 14 to ten
developers and Realtors and aro due back no later than December 12.
B. Alive Ate:
1. A motion recommending a disposition {rice of for City Council
consideration of approval.
2. A motion recommending a disposition price of without City Council
consideration of approval.
3. A motion to hold the property until development of West 7 Street creating a
Iutkage to County Club Road. (Perhaps lard value will increase)
4. A motion to table a decision until return of RFPs.
C. $ecommeWaticn:
In preparation of the anticipated return of RFPs and the desire to place the parcel back on
the tax roll, perhaps a recommendation of a disposition price is in order. Although it has
not been determined who will benefh from the sale. it is recommended that the Council
consider for approval any recommendation by the HRA: therefore, recommendation is
Alternative No. 1. The Council needs to be updated on this item.
HRA AGENDA
DECEMBER 3.1997
Appraisal and agreements.
HEARTLAND APPRAISAL
P.O. Box 312
lonticello, Mn 55362
,512)295-3300
Item
APPRAISAL P66 FOR SSRVICBS RBtmBRErM
XXX COUNTRY CLUB MANOR
NONTICSLLO, NN
TAonl, you
F---
INVOICE l 11/26/97 I 31031
DATE uUUBEa
Cll"t: S. R. A. MONTICELLO
Tolal
$ 400.00
Total 0 600.00
RESOLUTION 92- 25
SALE OF TAX FORFEITED LAND PARCELS
WHEREAS, parcels of land in the city of Monticello bearing tax ID
numbers 155-500-033400, 155-500-033402, 155-033-000010, 155-014-
003100, and 155-014-003080 have been forfeited to the State of
Minnesota for non-payment of property taxes and are being prepared
for public sale under tax forfeit land sale procedures of Minnesota
Statutes, Chapter 282, and
WHEREAS, the City of Monticello or its Housing and Redevelopment
Authority has an interest in acquiring Parcel •155-500-033400 and
155-500-033402 for the purpose of redevelopment of a non -conforming
and blighted area, and
WHEREAS, parcel 0155-033-000010 (Outlot A, Country Club Manor) has
outstanding special assessments with penalty and interest totaling
$554,494.73, and it is unlikely that a private developer would
acquire this property because of the magnitude of the assessments
owed, and
WHEREAS, the City of Monticello HRA has interest in acquiring
parcel 0155-033-000010 (Outlot A, Country Club Manor) for
residential development purposes.
NOW, THEREFORE, BE IT RESOLVEDS
I. The City of Monticello and its HRA requests that parcel #155-
033-000010, 155-500-033400, and 155-500-033402 be withheld
from public auction for one year.
2. That parcel #155-033-000010 (Outlot A, Country Club Manor) be
conveyed to the Monticello HRA for public purposes in
accordance with the conditions established in a memorandum of
understanding dated June 9, 1992, between the County of Wright
and the Monticello HRA.
3. That the City of Monticello approves of the sale of tax
forfeited parcels #155-014-003080 and 155-014-003100 by public
auction.
4. That the City of Monticello certifies that the unpaid special
assessments owing against tax forfeited parcels listed below
are correct and any remaining amounts remaining unpaid as a
result of public sale shall be reassessed for a period of 5
years at 8% interest.
Parcel #155-014-003080 $ 8,057.10
Parcel 0155-014-003100 $ 8,057.10
Parcel 0155-033-000010 $280,228.28
Resolution 92-25
Page 2
5. That, as of the date of this resolution, the following tax
forfeited parcels will be subject to additional special
assessments for 1992 with first year payable 1993 for blight
and weed removal costs.
Parcel #155-014-003100 i 543.25
Parcel #155-014-003080 $ 543.25
Parcel #155-500-033400 $ 660.51
Adopted this 24th day of August, 1992.
yor
City Admin iitrator
Ih
WHEREAS, The parcel of land known as Outlot A, Country Club
Manor, Parcel Po. 155-033-000010, is among those properties being
prepared for public sale under the tax forfeit land sales
Procedures of Minnesota Statutes Chapter 2S2; and
WHEREAS, Outstanding taxes through 1992 on this parcel total
$6,402.39, with penalties and interest; and.
WHEREAS, Outstanding special assessments on the property total
$554,494.73 with penalties and interest; and
WHEREAS, This parcel is contained within an R-3 medium density
residential zoning district of the City of Monticello; and
WHEREAS, The Monticello Housing and Redevelopment Authority
(HRA) is interested in seeing residential development occur on this
property; and
WHEREAS, It appears unlikely that a private developer would
acquire this property because of the magnitude of special
assessments owed to the City of Monticello;
NOW, TREREFORS, The County of Wright and Monticello HRA agree
as follows:
1. That the above described parcel is to be conveyed to the
Monticello BRA, as per Minnesota Statutes Section 282.01, Subd. 1,
contingent, of course, upon the approval of a State deed by the
Department of Revenue.
2. That the basic sale price for said parcel is to be waived,
with the understanding that the Monticello BRA may reconvey the
property to a private party in hopes of recovering the special
assessments due on the property.
3. That any fees for the State deed and any other
miscellaneous costs related to this conveyance shall be the
responsibility of the Monticello HRA.
4. That the outstanding real estate taxes, without penalties
and interest, totaling $4,327.26, shall be paid by the Monticello
HRA to the County upon issuance of the State deed for the property.
S. That, 1n light of the close proximity of this parcel to
Interstate 94, the City of Monticello may construct an earthen berm
on the property for the purpose of providing visual and sound
screening from the freeway.
6. That the construction of said berm may be undertaken prior 1
to the actual conveyance to the Monticello HRA.
7. That the fill material used to construct the berm may
include such items as brick, concrete, asphalt, and other inert
materials, but that any items such as appliances or tires must be
removed from the source of the fill prior to placement in the berm.
S. That the parties to this Memorandum of Understanding may
make such modifications and amendments as will properly carry out
the intent of this Agreement. Such modifications and amendments
shall be in writing.
Dated: June 9 , 1992.
Dated: June , 1492.
COUNTY OF WRIGHT
we$ wittkowski Chairperson
Bright County Board
Ric rd w. No
COun y Coordinat
MONTICELLO HOUSING AND
REDEVELOPMENT AUTHORITY
gn
Al Larson Chairperson
Monticello HBA
BY
011ie Eoropcbak
Executive Secretary
Monticello BBA
a
INDEMNITY AGREEMENT
BETWEEN THE CITY OF MONTICELLO AND
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF MONTICELLO
FOR RAW LANDS DESCRIBED AS
OUTLOT A, COUNTRY CLUB MANOR
WHEREAS, both the Housing and Redevelopment Authority (the
"Authority") in and for the City of Monticello. Minnesota and the
County of Wright (the "County"), Minnesota agreed to the terms of
the Memorandum of Understanding between the Housing and
Redevelopment Authority and the County of Wright relating to the
described raw lands; and
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Monticello held a public hearing for the acquisition of the
described raw lands and affirmed that the described raw lands lie
within Redevelopment Project Area No. 1 of the Modified Central
Monticello Redevelopment Plan; and
WHEREAS, both the City of Monticello (the "City"), Minnesota and
the Housing and Redevelopment Authority in and for the City of
Monticello shall agree to the terms of this Indemnity Agreement
between the City of Monticello and the Housing and Redevelopment
Authority relating to the described raw lands;
NOW, THEREFORE, the City of Monticello and the Housing and
Redevelopment Authority in and for the City of Monticello agree as
follows:
I. That the HRA is released of any obligation for repayment
of the special assessments or associated costs with the
acquisition of the described raw lands.
2. That the NRA is released of any obligation of expenses or
maintanence associated with the described raw lands.
3. That the NRA is released of any right of revenueo
associated with the described raw lands.
4. That the parties of this Indemnity Agreement may make
ouch modifications and amendments as will properly carry
out the intent of the Agreement. Such modifications and
amendments shall be in writing.
INDEMNITY AGREEMENT
PAGE 2
Dated: December , 1992. CITY OFA!! i+lfCEL
By
Maus, Mayar�
By
Rick Wolfsller,
Administrator
Dated: December 2 1992. HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO
By l,%wl-w.Nfiti1
Al Lpfrson, Chairperson
By O J .a' 0 'D�
011ie Eoropchak,
Executive Director
J
HRA RESOLUTION NO. 92-4
A RESOLUTION BY THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, AUTHORIZING
ACQUISITION FOR FUTURE DISPOSITION AND REDEVELOPMENT
OF LANDS DESCRIBED AS
OUTLOT A, COUNTRY CLUB MANOR
WHEREAS, the Housing and Redevelopment Authority (the "Authority")
In and for the City of Monticello, Minnesota shall affirm that the
described raw lands lie within Redevelopment Project No. 1 of the
Modified Central Monticello Redevelopment Plan; and
WHEREAS, both the Housing and Redevelopment Authority in and for
the City of Monticello and County of Wright (the "County") have
agreed to the terms of the Memorandum of Understanding between the
Housing and Redevelopment Authority and the County of Wright; and
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Monticello shall agree to Four Thousand Three Hundred
Twenty-seven Dollars and Twenty-six Cents ($4,327.26) as the
acquisition price and shall assume responsibility of associated
costs relating to the described raw lands; or
WHEREAS, the Housing and Redevelopment in and for the City of
Monticello shall propose the preparation of an Indemnity Agreement
between the Housing and Redevelopment Authority and the City of
Monticello; and
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Monticello and the City of Monticello (the "City") shall
agree to the terms of the proposed Indemnity Agreement between the
Housing and Redevelopment Authority and the City of Monticello
relating to the raw lands described as:
Outlot A, Country Club Manor.
NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing
and Redevelopment Authority in and for the City of Monticello finds
the early acquisition to be in the public interest because:
1. The proposed ac quisiton is necessary to carry out public
improvemento in the area, or that the acquisition will
contribute to the eliminination of blight or
deterioration within the area or that the acquisition is
necessary to relieve hardship; and
HRA RESOLUTION N0. 92-6
Page 2
2. There is a feasible method for the relocation of families
and individuals to be displaced by the proposed
acquisition.
The Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota, does hereby authorize acquisition for future
disposition and redevelopment of the said described raw lands.
Adopted by the Monticello Housing and Redevelopment Authority this
5th day of August, 1992.
ATTEST:
c)
HRA Executive Director
t
�y09
HRA Ch /person
HRA AGENDA
DECEMBER 3, 1997
W
Enclosed is a copy of the Option to Purchase and Purchase Agreement which was
prepared by Conine -Mmson of Kennedy & Graven. Because the documents were not
available until November 19, Mrs. Carlson received the offer on the 19th. In a follow-up
telephone cad, she indicated she would attend the HRA meeting of laniary 7 with a
response. The EMV iaaeased fi+om $125.600 payable 1997 to $132,600 payable 1998
according to the County Assessor's office.
Enclosed is a copy of the documents prepared
Cs
A.
Again because the agmeownt was not available until November 19, Realtor Kaley
Kjellberg received the HRA offer on November 19. She anticipates being at the January
HRA meeting with a response. She did note the offer of $50,000 for below the Assessor's
EMV for taxes payable 1998. Checking with the Assessor's office, the value inc�
fiom $49,500 payable 1997 to $55,700 payable 1998.
Enclosed is a copy of the prepared agreement.
C
OPTION AGREEMENT
Cl
This Agreement is made this day of , 1997, by and between
RICHARD CARLSON and MARION CARLSON, husband and wife ("Owners") and HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO. a
public body corporate and politic ("HRA").
Recital
A. The Owners are the fee owners of certain real estate (the "Option Property") located at
225 Front Street, Monticello, Wright County, Minnesota and legally descrixd as follows:
Lots 1, 2, 3, 4 and 5, Block 64, TOWNSITE OF MONTICELLO
B. The Owners and HRA desire to enter into this Option Agreement concerning the Property.
. Grant of Option. For and in consideration of the sum of One Thousand Dollars paid by
the HRA to Owners, the receipt and sufficiency of which is hereby acknowledged. and in
consideration of the mutual covenants and conditions herein contained, the Owners hereby grant
to the HRA the right and option to purchase from the HRA the Option Property.
2. Term of Option. The option to purchase herein granted shall commence on the date o
this Agreement and shall continue for a period of five years after the date hereof (the "Term")
3. Annual Payments for O to ion. HRA shall pay to Owners the sum of One Thousand
Dollars on or before each of the next four succeeding anniversary dates of this option agreement.
The stuns so paid shall not be applied to the purchase price of the Option Property.
4. Use of HRA Gomae. As additional consideration. Owners shall have the right to tue the
HRA's garage at 220 Front Street for storage of the Owners' vehicles and personal prorert%.
provided that no hazardous materials may be stored in the garage. Owners agree to accept the
use of the garage in its "AS IS" condition. Owners hereby release the HRA from any liabihi%
for damage or injury to the Owners' person or property which arises out of the Owners' u.c of
the garage. Owners agree to hold harmless, defend and indemnify the HRA against any claim..
CAW1111!]
Pal fit -f
judgments, or costs that result from the Owners' negligence in connection with the Owners' use
of the HRA's garage.
5. Purchase Price and Terms. The purchase price and terms of purchase for the Option
Property are set forth in the purchase agreement attached as Exhibit A to this Option Agreement.
6. Exercise of Option. HRA may exercise the option herein granted at any time during the
Term by the delivery of written notice of the exercise of the option to the Owners.
7. Closing. Unless extended by agreement of the parties, Closing on the purchase of the
Option Property shall occur not later than 180 days following the date of notification of exercise
of the Option.
8. Notices. Any notice, demand, request or other communication which may or shall be
given or served by the parties shall be deemed to have been given or served on the date the same
is deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
a. If to Seller:
b. If to Buyer: Monticello HRA
Atm: 011ie Koropchak
P.O. Box 1147
250 East Broadway
Monticello, MN 55362
9. Miscellaneous This Agreement represents the complete and final agreement of the parties
and supersedes any prior oral or wtitten understanding. This Agreement may be amended only
by a writing executed by both parties. This Agreement and the Option Property may be assigned
or transferred by the Owners only with the consent of the HRA. This agreement shall be binding
on the parties hereto, their successors and assigns. The HRA may record this Agreement and if
so shall pay all costs of recording. In the event any provision hereof shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect the remaining provisions hereof.
(remainder of page intentionally left blank]
c"'N a
will
IN WITNESS WHEREOF, the parties hereto have caused this Option Agreement to be
duly executed in their names and on their behalf on or as of the date and year first above written.
OWNERS
Richard Carlson
Marion Carlson
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of . 1996.
by Richard Carlson and Marion Carlson, husband and wife.
Notary Public
uwi»i»
rains
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
By
STATE OF MINNESOTA )
• ) sa
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 1996,
by , and , the O
_ and of Housing and Redevelopment Authority in and for the City
4 of Monticello, a public body corporate and politic under the laws of the State of Minnesota, on
behalf of the Authority.
Notary Public
awuu
wirer rr
Exhibit A
PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made this _ day of
by and between RICHARD CARLSON and MARION CARLSON. husband and wife ("Sellers")
and HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, a public body corporate and politic ("Buyer").
2. SUBJECT PROPERTY. Sellers are the owners of that certain real estate (the
"Property") located at 225 Front Street, Monticello, Wright County, Minnesota and legally
described as follows:
Lots 1, 2, 3, 4 and 5. Block 64. TOWNSITE OF MONTICELLO
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Sellers agree to sell and hereby grant to Buyer the
exclusive right to purchase the Property and all improvements thereon, together with all
appurtenances, including, but not limited to, garden bulbs, plants, shrubs, trees, and grass.
4. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal
property and fixtures owned by Sellers and currently located on the Property are included in this
sale: refrigerator, washer, dryer, storm windows and inserts, storm doors, screens, awnings.
window shades, blinds, curtain-ttnverse-drapery rods, attached lighting fixtures with bulbs.
plumbing fixtures, sump pumps, water heaters, heating systems, built-in appliances, water
softeners, garbage disposals, installed carpeting, work benches, television antennas and hood -fans
and the following personal property: . Upon delivery of
the deed. Sellers shall also deliver a Bill of Sale for the above personal property.
S. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price for the real estate and personal
property included in this sale is One Hundred Thirty Thousand and No/100ths
Dollars (S 130.000.00).
B. TERMS:
(1) EARNEST MONEY. Sellers acknowledge receipt of One Dollar (51.00)
as earnest money.
(2) BALANCE DUE SELLERS. Buyer agrees to pay by check on the Closing
Date any remaining Balance Due according to the terms of this Purchase
Agreement.
(3) ASSUMPTION OF EXISTING INDEBTEDNESS. The Buyer. in its
discretion and in partial payment of the purchase price, may, to the extent
assumable, assume or take tide subject to any existing indebtedness
ewf r»» A• 1
011111-6
encumbering the Property, in which case the cash to be paid at the time of
closing shad be reduced by the then remaining indebtedness.
(4) DEED/MARKETABLE TITLE. Subject to performance by Buyer. Sellers
agree to execute and deliver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordina nom state and federal regulations.
b. Reservation of minerals or mineral rights to the State of Minnesota.
if any.
C. Utility and drainage easements that do not interfere with existing
improvements on the Property.
(5) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the
Warranty Deed required at paragraph 5Ei(4) above, Sellers shall deliver to
Buyer:
a. Bill of Sale required at paragraph 4 above.
b. Standard form Affidavit of Seller. D
C. Waiver of Relocation Benefits, as required by paragraph 14 of this
_ Agreement.
d. Such other documents as may be reasonably required by Buyer's
title examiner or title insurance company.
6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Sellers shall pay at or prior to closing all real estate taxes due and payable in the
years prior to closing.
B. Buyer and Sellers shall prorate real estate taxers due and payable in the %car of
closing as of the Closing Date.
C. Sellers shall pay at or prior to closing all special assessments levied prior n1 the
Closing Date, including any deferred special assessments.
D. Buyer shall assume all special assessments levied after the Closing Date.
7. MARKETABILITY OF TITLE. The Seller, within a reasonable time after acceptance
of this agreement, shall furnish Buyer with an abstract of title or registered abstract of title to the
Property, certified to a current date and including proper searches covering bankrupts ao.
judgments and tax liens. Buyer shall have twenty (20) days after receipt of the abstract to
examine the same and to deliver written objections to title, if any. to Sellers. Sellers shall hate
sixty (60) days after receipt of written objections to cure title defects, at the Sellers' cost. In IIIc
event that title to the Property cannot be made marketable by the Sellers by the Closing I laic.
uwusna A-2
W116-•
then, at the option of the Buyer, this Purchase Agreement shall be null and void and the Earnest
Money shall be refunded to the Buyer.
8. CLOSING DATE. The closing of the sale of the Property shall take place on or before
or at such earlier or later date as may be mutually agreed upon by the
Sellers and Buyer. The closing shall take place at or such
other location as mutually agreed upon by the parties.
9. POSSESSION/CONDITION OF PROPERTY. The Sellers shall deliver possession of
the Property to Buyer by 4:00 p.m. on the Closing Date, in the same condition as the Property
existed on the date of this Purchase Agreement. reasonable wear and tear excepted. Sellers shall
remove all debris and all personal property from the Property prior to the date of possession.
10. DAMAGES TO REAL PROPERTY. If the Property is damaged prior to closing, Buyer
may rescind this Purchase Agreement by notice to Sellers within twenty-one (21) days after
Sellers notify Buyer of such damage, during which 21 -day period Buyer may inspect the real
property, and in the event of such rescission. Sellers agree to execute a cancellation of this
Purchase Agreement and return the Earnest Money to Buyer.
11. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Sellers disclose
that there (IS) (IS NOT) an individual sewage treatment system on or serving the Property. If'
there is an individual sewage treatment system on or serving the Property. Sellers disclose that
the system (IS) (IS NOT) in use, and Sellers further disclose that the type of systcm is a
system, and Sellers agree to furnish the Buyer with a map showing the
location of the system within five days of the date of this Agreement.
12. WELL DISCLOSURE. Buyer acknowledges receipt of a well disclosure statement.
which is attached to this Purchase Agreement as Exhibit A.
13. SELLERS' WARRANTIES. Sellers warrant that buildings, if any, are entirely within
the boundary lines of the property. Sellers warrant that there is a right of access to the real
property from a public right-of-way. Sellers warrant that there has been no labor or material
furnished to the property for which payment has not been made. Sellers warrant that there are
no present violations of any restrictions relating to the use or improvement of the Property.
These warranties shall survive the closing of this transaction.
II. RELOCATION BENEFITS. Sellers acknowledge that this Purchase Agreement is not
made under threat of acquisition by eminent domain proceedings and that the Purchase Price is
sufficient to cover Sellers relocation expenses. Sellers agree to waive any and all relocation
benefits, assistance and services, related to the Property. Sellers agree to provide to Buycr at
Closing a waiver of relocation benefits executed by all owner(s) of the Property.
13. NO BROKER INVOLVED. The Sellers and Buyer represent and warrant to each other
that there is no broker involved in this transaction with whom they have negotiated or to whom
they have agreed to pay a broker commission. Buyer agrees to indemnify Sellers for any and all
claims for brokerage commissions or finders' fees in connection with negotiations for purchasc
of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and
CM133377 A•3
W196 -s
Sellers agree to indemnify Buyer for any and all claims for brokerage commissions or finders'
fees in connection with negotiations for purchase of the Property arising out of any alleged
agreement or commitment or negotiation by Sellers.
16. NO MERGER OF REPRESENYiATIONS. WARRANTIES. All representations and
warranties contained in this Purchase Agreement shall not be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
17. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment shall not be effective unless it shall beset forth in writing and
executed by both parties or their respective successors or assigns.
I& BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, executors, administrators.
successors and assigns.
19. NOTICE. Any notice, demand. request or other communication which may or shall be
Oven or served by the parties shall be deemed to have been given or served on the date the same
is deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
a. If to Seller:
b. If to Buyer: Monticello HRA
Attn: 011ie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
20. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced
by the parties, provided that any action for specific enforcement is brought within six months
after the doe of the alleged breach. This paragraph is not intended to create an exclusive remedy
for breach of this agreement: the parties reserve all other remedies available at low or in equity.
IN WITNESS WHEREOF, the panics have executed this agreement as of the date written
above.
SELLERS
Richard Carlson
CW172122 A-4
oil$ 4
Marion Carlson
1111 ij
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
Its Chairperson
By
Its Executive Director
eariru» A•3
wins
® MINNESOTA OEPAiRTMkNT OF HEALTH
WELL OtSCLOSURE CERTIFICATE
PLEASE TYPE OR PRINT ALL INFORUVON
Pdrson filing deed must at= $10 fee payable to county reoordec
A. PROPERTY DESCRIPTFON
Attach a legal description of property 0 the property does not have a lot number, block number,
and addition name.
COUNTY I LOT NUMBER I BLOCK NUMBER I ADDITION NAME
STREETAORESS
CRY I STATE I ZIP CODE I
B. PROPERTY BUYER MAILING A100REU AFTER CLOSING
FIRST WIVE I MIDDLE INITIAL I LAST NAAAE
COMPANY NAME (IF APPUCA"
AGGRESS
ADDRESS
CITY I STATE I ZIP CODE I l LEPH NE NUUW
C. CERTIFICATION BY SELLER
I W" me IN Infoma" Praw on mN w"" n etxunts ad w ON to Me Oat of"kwalftpa.
Siem UM of Sella of Oee001111 RMesaWn of Saba Osp
D. CERTMCATIDN BY BUYER
Ttte hura m Person eltho M toad an~ Oft Olrya, m uo %W a Wd DlstSosure Ceroacm for as b0 pen m Willment at
s can= Por deed d Mn is a wd an the Drop".
In da atnala of s $eDs" sferq ^ df eater. Of Daus audrortad to an an fKgltll of Ute ww ffe to dq so conk".
No ap a" is rsduuee by the baro d de Mater hn "M am.
erred on dwosare fnIm'-w rl Irror1010 to me N me U* or OVW sun* n1}mmeoarl. I c r""dM owmabw an INs an,ncalf
I N curO W COWN t0ft0W0I1NM0wWP.
Soman at Sura or Otslpnaaad Rapr—u m of euro on
41110)
I
® MINNESOU DEPARTMENT OF HEALTH
WELL INFORMATION
PLEASE TYPE OR PRINTALL /NfORA100111
' Fill out a separate well information page if more than Mm wells are located on the property. �
WELL LOCATION N
COUNTY
I QUARTER
I SECTION NUMBER
I TOWNSHIP NUMBER
I RANGE NUMBER
WELL STATUS
YEAR wELL'NAS SEALED 4 0C
WELL IS: ❑IN USE 111
❑ NOT IN USE (2)
Q SEALED By LICENSED WELL CONTRACTOR 0)
I
WELL LOCATION 02
COUNTY
I QUARTER
I SECTION NUMBER I TOWNSHIP NUMBER I RANGE HUMBER
WELL STATUS
YEAR WELL WAS SEALED i4 4W"i
WELLS: ❑IN USE (t)
❑ NOT IN USE (2)
C SEALED BY LICENSED WELL CONTRACTOR (n
WEI L LOCATION Ila
COUNTY
I OUARTER
I SECTION NUMBER I TOWNSHIP NUMBER I RANGE NUMBER
WELL STATUS
YW WELL WAS SEALED OF OCWIVI
WELLS: ❑IN USE (1)
❑ NOT IN USE (2)
01 SEALED BY LICENSED WELL CONTRACTOR (7)
I
BKQTON MAP • BMntoh UM km a thn of the waMS) Ano bwk4v *Mbn@M disbucm from rwft str«n MW pu "S.
V MORE THAN ONE WELL ON PROPUM LISE THE WILL LOCATMU WMMM ASM TO IOE MPY BACH WELL
Inwinabon ProrRTAd an IIri ft" to Cltud" as "Ic Mfarma In ~ MYInum Statum Cham 13,
rew >ru a
e -_J \ 1- Not -C�q
PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made this _ day of . 1997
by and between IRWIN HAWKINS, a single person ("Seller") and HOUSING AND REDEVEL-
OPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, a public body corporate
and politic ("Buyer").
2. SUBJECT PROPERTY. Seller is the owner of that certain real estate (the "Property")
located at 225 West River Street, Monticello, Wright County, Minnesota and legally described
as follows:
South 1/2 of Lots I and 2. Block 54, TOWNSITE OF MONTICELLO
(Note: legal subject to verificattion)
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained.
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Property and all improvements thereon, together with all
appurtenances, including, but not limited to, garden bulbs, plants, shrubs, trees, and grass.
4. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal
property and fixtures owned by Seller and currently located on the Property are included in this
sale: refrigerator, washer, dryer, storm windows and inserts, storm doors, screens. awnings,
window shades, blinds. curtain -traverse -drapery rods, attached lighting fixtures with bulbs.
plumbing fixtures, sump pumps, water heaters, heating systems, built—in appliances, water
softeners, garbage disposals, installed carpeting, work benches, television antennas and hood -fans
and the following personal property: . Upon delivery of
the deed. Seller shall also deliver a Bill of Sale for the above personal property.
PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price for the real estate and personal
property included in this sale is Fifty Thousand and No/100ths Dollars
(550.000.00).
B. TERMS:
(1) EARNEST MONEY. Seller acknowledges receipt of One Hundred Dollars
($100.00) as earnest money.
(2) BALANCE DUE SELLERS. Buyer agrees to pay by check on the Closing
Date any remaining Balance Due according to the terms of this Purchase
Agreement.
(3) ASSUMPTION OF EXISTING INDEBTEDNESS. The Buyer. in its
discretion and ist partial payment of the purchase price, may, to the extent
assumable, assatme or take title subject to any existing indebtedness
Crura)
int\ -7
encumbering the Property, in which case the cash to be paid at the time of
closing shall be reduced by the then remairdng indebtedness.
(4) DEEDIMARKETABLE TITLE. Subject to performance b; Buyer. Seller
agrees to execute and d -,liver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal regulations.
b. Reservation of minerals or mineral rights to the State of Minnesota.
if any.
C. Utility and drainage easements that do not interfere with existing
improvements on the Property.
(5) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the
Warranty Deed required at paragraph 5B(4) above, Seller shall deliver to
Buyer:
a. Bill of Sale required at paragraph 4 above.
b. Standard form Affidavit of Seller.
C. Waiver of Relocation Benefits, as required by paragraph 14 of this
Agreement.
d. Such other documents as may be reasonably required by Buyer's
title examiner or title insurance company.
6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Seller shall pay at or prior to closing all real estate taxes due and payable in the
years prior to closing.
B. Buyer and Seller shall prorate real estate taxes due and payable in the year of
closing as of the Closing Date.
C. Seller shall pay at or prior to closing all special assessments levied prior to the
Closing Dau, including any deferred special assessments.
D. Buyer shall assume all special assessments levied after the Closing Date.
7. MARKETABILITY OF TITLE. The Seller, within a reasonable time after acceptance
of this agreement. shall fumish Buyer with an abstract of title or registered abstract of title to the
Property, certified to a current date and including proper searches covering bankruptcies.
judgments and tax liens. Buyer shall have twenty (20) days after receipt of the abstract to
examine the same and to deliver written objections to title, if any, to Seller. Seller shall ha%e
sixty (60) days after receipt of written objections to cure title defects, at the Seller's cost. In the
event that title to the Property cannot be made marketable by the Seller by the Closing Mite.
uwr r! rte
rarn•1
then, at the option of the Buyer, this Purchase Agreement shall be null and void and the Earnest
Money shall be refunded to the Buyer.
8. CLOSING DATE The closing of the sale of the Property shall take place on or before
May 1, 1998 or at such earlier or later date as may be mutually agreed upon by the Seller and
Buyer. The closing shall take place at or such other
location as mutually agreed upon by the parties.
9. POSSESSION/CONDITION OF PROPERTY. The Seller shall deliver possession of
the Property to Buyer by 4:00 p.m. on the Closing Date, in the same condition as the Property
existed on the date of this Purchase Agreement. reasonable wear and tear excepted. Seller shall
remove all debris and all personal property from the Property prior to the date of possession.
10. DAMAGES TO REAL PROPERTY. If the Property is damaged prior to closing. Buyer
may rescind this Purchase Agreement by notice to Seller within twenty-one (21) days after Seller
notifies Buyer of such damage, during which 21 -day period Buyer may inspect the real property.
and in the event of such rescission. Seller agrees to execute a cancellation of this Purchase
Agreement and return the Earnest Money to Buyer.
11. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses
that there (IS) (IS NOT) an individual sewage treatment system on or serving the Property. If
there is an individual sewage treatment system on or serving the Property. Seller discloses that
the system (IS) (IS NOT) in use. and Seller further discloses that the type of system is a
system, and Seller agrees to furnish the Buyer with a map showing the
location of the system within five days of the date of this Agreement.
12. WELL DISCLOSURE. Buyer acknowledges receipt of a well disclosure statement.
which is attached to this Purchase Agreement as Exhibit A.
13. SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within
the boundary lines of the Property. Seller warrants that there is a right of access to the real
property from a public right-of-way. Salley warrants that there has been no labor or material
furnished to the Property for which payment has not been made. Seller warrants that there are
no present violations of any restrictions relating to the use or improvement of the Property.
These warranties shall survive the closing of this transaction.
14. RELOCATION BENEFITS. Seller acknowledges that this Purchase Agreement is not
made under threat of acquisition by eminent domain proceedings and that the Purchase Price is
sufficient to cover Seller's relocation expenses. Seller agrees to waive any and all relocation
benefits, assistance and services, related to the Property. Seller agrees to provide to Buyer at
Closing a waiver of relocation benefits executed by all owner(s) of the Property.
IS. BROKER COMMISSIONS, The Seller represents and warrants that Seller's broker is
of that Seller hasno other
broker, and that Seller is responsible for paying any commission due to and
. Buyer represents and warrant to Seller that there is no broker
involved in this transaction with whom Buyer has negotiated or to whom Buyer has agreed to pay
eawr»>u
win. 3
a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage
commissions or finders' fees in connection with negotiations for purchase of the Property arising
out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to
indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection
with negotiations for purchase of the Property arising out of any alleged agreement or
commitment or negotiation by Seller.
16. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Purchase Agreement shall not be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
17. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment shall not be effective unless it shall be set forth in writing and
executed by both parties or their respective successors or assigns.
1& BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, executors, administrators,
successors and assigns.
19. NOTICE. Any notice, demand. request or other communication which may or shall be
given or served by the parties shall be deemed to have been given or served on the date the same
is deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
If to Seller:
If to -Buyer: Monticello HRA
Attn: 011ie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
20. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced
by the parties, provided that any action for specific enforcement is brought within six months
after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy
for breach of this agreement; the parties reserve all other restudies available at law or in equity.
.
wits 7
IN WITNESS W13EREOF, the parties have executed this agmnmt as of the date written
above.
SELLER
Irwin Hawkins
BUYER
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
Its Chairperson
By
Is Executive Director
Cmljrus
"no
® MINNESOTA DEPRRT1NkNT OF HEALTH
WELL DISCLOSURE CERTIFICATE
PLEASE TYPE OR PRINT ALL 1AMRAUnON
Parson filing deed must attach $10 fee payable to county recorder
A. PROPERTY DESCRIPTION
Attach a legal description of property if the property does not have a lot number, block number,
and addition name.
COUNTY I LOT NUMBER I BLOCK HUMBER 1 ADOITION NAME
STREET ADRESS
CITY I STATE I ZIP CODE
S. PROPERTY BUYER MARINO ADDRESS AFTER CLOSING
FIRST NAME I MIDDLE INIT1Al I LAST NAME
COMPANY NAME (IF APPLICABLE)
ADDRESS
-- ADDRESS
CITY I STATE I ZIP CODE I TELEWONE NUMBER
C. CERTIFICATION BY SELLER
I W" Nat Na itdOm wjcn ptor" an alb Wmatw a =All ll am mow to as batt of my YnoirMppA.
SWAtun of Sttrr or OM PONd Rapra V=W of SOW one
0. CERTIFICATION BY BUYER
The Mw► or pptott auftW m wax on OIhW tt ftN %W Must W a Walt ObayMN CVWIUU far CUM Ww m hdflllmem of
a Can= for dad darsraONanaNplow P.
In th abunce of a sown , aN hw or parson aualmt:ae t0 af! oM !lard of ITN baYwr mry aqn Nb was aarbtkatw.
No tuna fs is rw Aim by ar kw if ft W W w Kw am".
Base on dlsdosrw !"do,"" provided to nN by ttN WW at aft avid" baormla0fl. I ce" Me ft MdOrmew on tms CwridiUlf
n &=m a ane =no" to the batt of my mm".
` soton of BuW a Rwptamtat" of Bays an
Pte)
® MINNESOU DEPARTMENT OF HEALTH
WELL INFORMATION
PLEASE TYPE OR PROYTAU INFORA oMrION
Fill out a separate well information page if more than dnee wells are located on the property.
WELL LOCATION i1
COUIITY I QUARTER I SECTION NUMBER I TOWNSHIP NLWM' I RANGE NUMBER
WILL iTATUS I .t u w[u wwtuaFo.v aNOw n
WELLS: ❑IN USE (1) ❑ NOT IN USE 12) C1 SEALED BY LICENSED WELL CONTRACTOR Q)
WELL LOCATION 12
COUNTY I QUARTER I SECTION NUMBER I TOWNSHIP KOW I RANGE NUMBER
WELL STATUS I rf�ll�¢tn7s4ttClnKMorN�
VBL S: CIN USE (t) ❑ NOT IN USE (2) C SEALED BY LICENSED WELL CONTRACTOR (7)
WELL LOCATION N
COUNTY I QUARTER I SECTION NUMBER I TOWNSHIP KOS I RANGE NUMBER '
IIBL STATUS
"11[Llw1t SEAM 11' .%Z")WBL S: ❑IN USE (1) ❑ NOT IN USE 121 0 SEALED BY LICENSED WELL CONTRACTOR (3)
S WCH MW - Sworn SN 16e8000 of n.. WGW WW Yronr00 amI d&nWea fan =ft IloM. OW ewldht9L
IF MORE THAN ON! WILL ON PR0MM USE TINT MULL LOCATION NU &ItW ADM TO =NTIPV EACH WILL.
I
Immn on pmw m on Dos Wrm u dIEWWO as 0u0wo tntOrnyGon ~ MlivmotL SUUM CINAM Il
rw 3"t•
HRA AGENDA
DECEMBER 3, 1997
00111111 ..y lN :il,:
Steve Johnson of Monticello Ford/Mercury called to see if the EDA would create an
Economic Devekgnmt District to assist the dealer in the procurement of the clinic
building to the south. With the realignment of West Oakwood Drive, damage due to July
storm, and plans for redevelopment of a new facility came the request. It is my
understanding, the request was for the use of the EDA name only for purpose of
condemnation.
In discussion with Attorney Bubul, in order for the EDA to establish an Economic
Development District the same requirements must be met as for a Redevelopment District
established by an HRA; therefore, Bubul suggested the HRA hear the presentation
because of you knowledge and familiarity. Also, a City can create a Development
District; however, the City Council empowers an HRA or EDA to do so. If the HRA is
interested in the project. Bubul suggests no dollars assistance and to request escrow of
money for procurement of land.
1
1 did check with the Buffalo Clinic and an appraisal of the property was ordered and
expected complete within the day or two. It appears little conversation has taken place
between the potential seller "Buffalo Clinic" and the interested buyer "Monticello
Ford/Mercury". Ondthird of the building is occupied for a Home Care Program and the
property generates taxes.
QUESTIONS
As a concern for business retention and expansion, request a hst of curunt tenants within
the mall and describe the fume relocation of each tenant.
Peterson Ford -155-500.113413
land $302,400 4.7 acres t •
BuWing $208,600
Total $511,000
Buffalo Clinic - 5332,600 Lot I, Block 1, Sandberg South
BOW Clinic - $70,000 Lot 1, Block I, Sandbag South
HRA AGENDA
DECEMBER 3, 1997
Consideration to review for discussion the first draft of an Action Plan endorsnn the
Council vision aM MUcies.
A. Reference and backmvjnd-
This item was tabled from the November S meeting; therefore, the November 5 agenda
supplement is resubmitted.
Additionally, Chair Barger reported the IDC Chair Ken Maus has rued a joint
meeting with the IDC. Perhaps December 11, 7:00 Lm, This would follow the HRA
special meeting of December 10, 7:00 p.m. I suggest the HRA meet with the IDC after
consideration and endorsement of the proposed Action Plan. The text scheduled IDC
meeting is January 22, 7:00 a.m. They are open to suggestions, a.m. or p.m. Barger will
be out-okown January 13 to the 29.
HRA AGENDA
NOVEMBER S. 1997
PT-Mir.:._i r i;.i air is
A. Reference and Background:
After the joint meeting between the commissions and council and the commissions,
council, and IDC; the HRA selected Darrin Lahr and Bob Murray to begin drafting a work
plan which supports the Council's adopted visions and policies.
Lahr and Murray began by addressing the six priorities identified under HRA leadership as
ranked highest by the Council. Concentration centered around "develop and encourage
business retention and expansion.- (the revenue colurmt of the city budget). In the fust
draft which is enclosed the group asked the question: "How do we achiever' The fust
draft of the action plan is enclosed for discussion prior to moving ahead.
The six project descriptions Identified under the HRA leadership were:
Establish a reserve fund for acquisition of industrial land. EstabMed/in
PregM
2. Develop a loan program and guidelines encouraging remodeling of aging housing.
3. Develop and encourage business retention and expansion. Being addressed.
4. Land acquisition as available to carry out downtown riverfront redevelopment. In
P109121114
S. Explore the potential purchase of BN ROW in core city area. Explore shared use.
In pmgrm under tie City leadersblp for the National Guard Training and
Community Center.
6. Establish commcreial/rctail revolving loan program. E tabilsbed.
Within the proposed 1999 Chy Budget is the request for $75,INIt1 for industrial land
acquisition (matching). 530,000 for trwrketing, and SAWK) for land acquisition in
redevelopment arca. The Council directed the City Administrator to reduce the proposed
levy inaease of 13% by 5-6%. The next budget meeting of the Council has not been
scheduled.
HRA AGENDA
�- NOVEMBER 5, 1997
Est' ted Tax Rate per Rod Bunting, Wright County Is enclosed This assumes the
City's max levy imase of 13%.
EXAMPLES
1442 122$
Commerciaillndustrial Comrnercialllndustrial
EMV $750,000
EMV $750,0011
ASSESSED VALUE
ASSESSED VALUE
$32,900
$28,500 (classification change)
TR 112.618
EST TR 119.036
TAXES 537,051.32
EST TAXES $33,925.26
Residential (Homestead)
Residential (Homestead)
BMV $100,000
EMV $100,000
ASSESSED VALUE
ASSESSED VALUE
$1,280
$1,212.50 (classification change)
TR 112.618
EST TR 119.036
TAXES $1,441.51
EST TAXES $1,443.31
1
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DRArl' COPY
ECONOMIC DEVELOPMENT ACTION PLAN
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
(lousing and Redevelopment Authority
Economic Development Authority
199&2002
missio
The mission of the Economic Development Action Plan is to carry out the City of Monticello
Community Vision & Governing Policies adopted by the City Council on September K. 1997.
The Priority List developed by line City Council supports the community vision and governing
policies and establishes objectives for the HRA and EDA. The City Council will direct resources
to achieve the vision. The Economic Development Action Plan is a five-year pian and is drilled in
a realistic and measureable time franx.
VISION: Economic - Our support of economic development will be directed toward the creation
of jobs that are not just "liveable" but prosperous, stimulate the local economy, and capable of
supporting our families and wrmnunity.
Qaj>etivc -To develop and encourage business retention and expansion.
(How do we achieve?)
BUSINESS RG'1'EN'f10N (Existing Businesses)
A. Develop a good working relationship between the city and existing businesses.
1. Visit by Mayor and City Administrator to businesses to enhance elected official
and staff exposure.
2. Sponsor events between the businesses and the city (golf outing).
3. Feature a business, report current business events and new city policies, and
market the local financial assistance programs and others in either the City
Newsletter or Monticello Times or develop a Business Newsletter.
B.' lemongrate a fiscally responsible government.
1. Develop a City of Monticello Business Plan (including five-year proforam of
projected revenues and expenditures for planned development.)
2. Hold public forums.
3. Develop and utilize custonxr service feedback forms.
C. Address the work force issue.
1. Mayor cidurscincut of the Clamber of Conmtcrce Job Fair.
2. Mayor eitdommenl of the School District Youth Apprenticeship Program and
explore development of a city/school cooperation.
3. Develop a partnership with technical colleges and centers through the career
placement office.
a. Anoka, Hennepin. SI. Cloud and Staples Technical Colleges.
b. Wright Technical Center.
Host hnch and focus group discussion with technical colleges.
EXPANSION (New Businesses)
A. Establish definition of wages and tax base.
1. Tax base defuied by zoning ordinance.
2. Wages defined by the market.
B. Establish Marketing Program
1. Marketing Tools.
a. Brochure.
al. Identify marketing advantages.
b. Visit of prospect by elected and appointed officials.
c. Trade shows.
d. Tredcjoumah.
C. Internet.
E Welcome receptions.
One-year subscription to Monticello Times with wekosne letter and City mug.
g. Develop a five-year historical and five-year capita improvements plan as a
positive marketing tool. (Monticello Progressive Improvement Program.)
2. Targetcd•Mar ketiog.
a. Define industry by SIC. (Skilled or scni -skitled bbor)
Is. Define incentives.
C. Clarity of development process and expectations.
I . Define process for development in Monticello.
2. Friendly -cooperative attitude toward developers.
3. Lead person contact for follow-through. (One vu ice fur city and developer)
a. Site review.
Is. Building penal.
c. Financial assivance programs and packaging.
d. Estimate o f cey occupancy and development cow.
4. Manage expectations.
a. Cay expectations.
b. Developer expectations.
HRA AGENDA
�- DECEMBER 3, 1997
12. �,,,,�; ; ;,,,, to authorize Via= of the LJRAm9ndI4J&
Recommendation is to authorize the payment. Bills are just from Kennedy & Graven.
13. Consideration of Executive DirWor'it RM=
a) 3 Walnut Sum - The Commitment of Title Insurance obtained by the HRA indicated
some title objections. A letter was drafted to Mr. Schleif on November 10 and per the
Purchase Contract, the seller has 60 days to proaue the lite defects. I have talked to
Wry ry and thea attorney is in the process of clearing the title. Therefore, l have not
notified individuals for leasing and cleaning of carpet.
b) HRA garage - Mr. O'Connor did remove the motorcycles and some personal property.
1 requested the Public Works Department remove the rest of the junk, board up the
willows, and put a lock on the doors.
c) National Guard/Com®mity Cerner - No further cumber, on fmancing the facility. The
architect, AKA, is wttmg up meetings with various groups(mdividuals for additional input
into the use of the anter. The Task Force will tour 6 centers on Friday, December 5. m
�— 14. Other
b) Although, at the November mating, the HRA made a motion denying authorization to
obtain an appraisal for the property at 401 From Street, Realtor Bernie Kemp telephoned
to say they dropped the purchase price from $89,900 to $79,900. Wanted to know if the
HRA was interested? EW is $98.000.
Y MM®Y a GRAM
Chases
zoo Sow. Seth Saab wro Oro
L tyfw,e MW SS402
(61:) 337.93W
November 10, 1997
City of Monticello
"3199011ie Koropchk �
City Hall
P.O. Box 1147 G WYOF MOIVTICELLO
Monticello, MN 55362-9245
MN 190*0041: Redevelopment - General
Invoice # 19029
Through October 31, 1997
For All Legal Services As Follows:
10/31/97 SIB Phone call with O Koropchak re various 0.75 100.50
redevelopment and TIF issues
Total Services:
100.50
Total Services And Disbursements: S 100.50
1 o►-4am Wft OMWb a 4r
11i • �amuW dMn� a droved
11WWWoWffldWWMdWpWt
ar
Bernd
KENNEDY a GRAVEN
Ch.temd
200 Swd, Shah SuM Sulo 470
IUnnnoum KN 5M
(612) 337-9300
November 10. 1997 D NOV .1 1557 D
Monticello HRA rl
City Hall 4 a CITY OF MONTICELL0
250 East Broadway Al V
PO Box 83A
Monticello, MN 55362
MN195-00005: Sale of 3 Walnut Street
Invoice # 19031
Through October 31, 1997
For All Le8a1 Services As Follows:
10/06/97 CHT Phone call with 0 Koropchak re purchase 0.20
agreement
10/14/97 CHT Intntoffice conference with 0 Koropchak 0.20
10/16/97 CHT Phone calls with title company and 0 Koropchak 0.30
Total Services:
Total Services And Disbursements:
w, wdw c 1, claw
d" rowel dOm or #lord
MWo wdarroprt
dI
G1pa1w d
27.80
27.80
41.70
97.30
97.30
KENNEDY a GRAVEN
armed
200 Same Shap Sua1, Sulu 470
Mkneapok MN 55402
(612)337-9300
November 10, 1997
Citi of Monticello
011ie Koropchak l.!-'
City Hall
P.O. Box 1147
Monticello, hW 55362.9245
MN190-00066: Community Center Financing
Invoice # 19030
D l�
31-c,97,U
CITY OF MONtJCElLO
Through October 31, 1997
For All Legal Services As Follows:
10/21/97 DIG Phone call with J O'Neill re city hall financing 0.70 73.50
10/21/97 DIG Research national ward status re tax exempt bonds 2.80 294.00
10/21/97 SIB Phone call with J b Neill 1.00 134.00
10/24/97 DIG Travel to and attend meeting in Monticello 3.70 388.50
10/27/97 DIG Research taxability of armory bonds 1.40 147.00
/, Total Services: $ 1,037.00
Attorney Summary
Daniel J Greensweig 8.60 105.00/hr 903.00
Stephen J. Bubul 1.00 134.00/hr 134.00
For All Disbursements As Follows:
10/24/97 Travel expense (DJG) 11.78
Total Disbursements: S 11.78
Total Services And Disbursements:
I dedm. uno Dndb o1 br
'M sorra, MM or do w
�, A Ertl dql fb
ar
at
$ 1,048.78
November 10, 1997
MO TrICl w
Mr. Larry Schleif
122 Kamp Circle
Monticello, MN 55362
Dear Mr. Schleif:
As per the Purchase Agreement between Lxry Schleif ("Seller and the Housing and
Redevelopment Authority in and for the City of Monticello ("Buyer'), Item 7. Marketability of
Tule: The Buyer shall have twenty (20) days after receipt of the abstract to examine the same and
to deliver written objectiom to title, if any, to Seller. On October 23, 1997, one day following the
execution of the Purchase Agreement, the Buyer authorized Wright Title Guarantee to prepare a
Title Insurance Policy on their behalf.
The Commitment for Tule Insurance was received at the Office of the Buyer on November 10.
1997. Attached is a copy of the Count for Title Insurance inclusive of the written
objections to title (See Schedule B. of the Commitmem). The Seller shall have sixty (60 days)
after receipt of written objections to cure title defects, at the Seller's cost.
Should you have any questions, Please call me at 271-3208.
Sly,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Oso\4,k",
011ie Koropchak
Executive Director
Attachment
a: File
Monticello Clay Han 2" H. Broadway. PO So. 11.7. Monticello. nun 35362.924s • (612) 2+5.2711 • Fa,: (612) 295 a
omee of PtIWle WW" 909 Golf Coww Rd.. Monticello. MN 35362 • (612) M3170 • Fu: (612) 271-3272
INVOICE
WRIGHT TITLE GUARANTEE CO.
109 South Second Street
P.OBox 315
Buffalo, Minnesota 55313
0009900
Housing & Redevelopment
Authority of Monticello
Buyer : Housing and Redevelopment Authority
Seller: Schleif, Larry A.
Property address: 3 Walnut Street
Legal 1: Lot 6 & Easterly 33' of
Legal 2: Lot 7, Block 54, Townsite
Legal 3: of Monticello
Sales Amount: $ 83,000.00
Loan Amount : $ 0.00
11/05/1997 File Number: 97100113 Invoice #: 4508
....Description �ee.•--_.-•vee��vee�evevaeee�vee����e�Am
IncomeCodeount
owners premium 269.75
service charge 125.00
assessment search (seller) 35.00
abstract fee (seller) 151.70
Invoice Total $ 581.45
WRIGHT TITLE GUARANTEE CO.
A-- l TM. A..00Wpn C� - IM
�I COMMITMENT FOR TITLE INSURANCE
ISSUED BY
t f it
MEhART TITZ.F.
GUARANTY COMPANY
STEWART TITLE GUARANTY COMPANY, A Texas Corporation, herein called the Company, for a valuable
consideration, hereby commits to issue its policy or policies of title insurance, as Identified in Schedule A, in
favor of the proposed Insured named in Schedule A. as owner or mortgagee of the estate or interest covered
hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor;
all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof.
This Commitment shall be effective only when the identity of the proposed Insured and the amount of the
policy or policies committed for have been inserted in Schedule A hereof by the Company. either at the time
of the Issuance of this Commitment or by subsequent endorsement.
This Commitment is preliminary to the issuance of such polity or policies of title insurance and all liability
and obligations hereunder shall cease and terminate six months after the effective date hereof or when the
policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy
or policies Is not the fault of the Company.
Signed under seal for the Company, but this Commitment shall not be valid or binding until it bears an
authorized Countersignature.
IN WITNESS WHEREOF, Stewart Title Guaranty Company has caused its corporate name and seat to be
hereunto affixed by Its duly authorized officers on the date shown In Schedule A.
letTEWARCO TITLE
GUARANTY COMPANY
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WAIHT ITLE GUARANTEE CO.
C—"100 SOUTH SECOND STREET
BUFFALO, MINNESOTA 65313
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SCHEDULE A
Commitment No.: 97100113 ABSTRACT PROPERTY
Effective Date: October 09, 1997 at 8:00 a.m.
Prepared For: Housing and Redevelopment Authority
in and for the City of Monticello
Inquiries should be directed to:
Wright Title Guarantee Company
Buffalo: 682-2023 Metro: 477-6312
Elk River: 441-5465
Monticello: 295-6567 Metro 332-7102
1. Policy or Policies to be issued: Amount
(a) XXX ALTA Owner's Policy $83,000.00
Proposed InHured:
Housing and Redevelopment Authority in and for the City of
Monticello.
(b) ALTA Loan Policy
Proposed Insured:,
2. The estate or interest in the land described or referred to in this 1
Commitment and covered herein is a Fee Simple.
3. Title to said estate or interest in said land is at the effective
date hereof vested in:
Allan L. Schleif and Helen Schleif, husband and wife, as joint
tenants.
4. The land referred to in this Commitment is located in the County of
Wright, State of Minnesota, and described as follows:
Lot 6 and the Southeasterly 33 feet of Lot 7, as measured at
rights angles to the Southeasterly line thereof, Block 54,
Towneite of Monticello, Wright County, Minnesota.
Property known as: 3 Walnut Street, Monticello, MN 55362
STEWART TITLE
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SCHEDULE B
Commitment No. 97100113
Schedule B of the policy or policies to be issued will contain
exceptions to the following matters unless the same are disposed
of to the satisfaction of the Company:
1. Defects, liens, encumbrances, adverse claims or other matters,
if any, created, first appearing in the public records or
attaching subsequent to the effective date hereof but prior to
the date the proposed Insured acquires for value of record the
estate or interest or mortgage thereon covered by this
Commitment.
2. STANDARD EXCEPTIONS:
a) Facts which would be disclosed by a comprehensive survey
of the premises herein described.
b) Rights and claims of parties in possession.
c) Mechanics', Contractors' or Materialmen's liens and lien
claims, if any, where no notice thereof appears of record.
SPECIAL EXCEPTIONS:
3. Taxes payable in 1997 in the amount of $836.56, which includes
$100.34 for 77-3 street improvement are paid. 1996 and prior years
are paid in full. Tax I.D. No. 155-010-054060 (homestead)
4. Special Assessments.
NOTE: There are special assessments owing to the City of
Monticello in the amount of $182.94 for 77-3 street improvement,
which represents a balance owing after payment of the 1997 payable
taxes. (Subject to change if not paid by November 30, 1997).
5. Rights of LeRoy P. Christensen and Elaine M. Christensen, husband
and wife, and Gerald L. Christensen who retain an interest in a
portion of Lot 7 pursuant to Informal Deed of Distribution
recorded February 19, 1986 in Book 313 of Deeds, Page 574 as
Document No. 460156 and Quit Claim Deed recorded February 21, 1986
in Book 313 of Deeds, Page 607.
6. Rights of Michael I. O'Connor and Mary M. O'Connor, husband and
wife, who retain an interest in a portion of Lot 7 pursuant to
Contract for Deed dated September 1, 1982, filed for record
September 14, 1982 in Book 80 of Misc., Page 824 as Document No.
368239.
7. The legal description of record as to the portion of the property
in Lot 7, i.e., the Easterly 33 feet thereof, is open to
interpretation as to exact location as the Town of Monticello is
not laid out in a North/South direction. The legal description at
Schedule A, No. 4 has been created to more clearly define the
Continued on next page
STEWART TITLE
GUARANTY COMPANY
I
SCHEDULE B (Continued)
Commitment No.: 97100113
portion of the property lying within Lot 7. An exchange of Deeds
with the adjoining property owner of the balance of said Lot 7
required.
e. Subject to facts that would be disclosed by a comprehensive
survey.
9. Rights of Larry A. Schleif aka Larry A. Schlief who signed the
purchase agreement as seller.
10. If you should have any questions regarding this Commitment, please
contact Linda Ops&1 at 682-2023 or 477-6312.
STEWART TITLE
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