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EDA Agenda 01-10-2018AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Vice President Bill Tapper, Treasurer Steve Johnson, Tracy Hinz, Jon Morphew and Councilmembers Jim Davidson and Lloyd Hilgart Staff. Executive Director Jim Thares, Jeff O'Neill, Angela Schumann, Wayne Oberg and Jacob Thunander 1. Call to Order 2. Roll Call 3. Consideration of presiding officer 4. Consideration of additional agenda items 5. Consent Agenda a. Consideration of approving Regular Meeting Minutes — December 13th, 2017 b. Consideration of approving Special Workshop Meeting Minutes — December 13th, 2017 c. Consideration of approving payment of bills d. Consideration of Acquisition and Relocation Services Retainer Agreement with Wilson Development Regular Agenda 6. Consideration of 2018 EDA Work Plan 7. Consideration of revised Policy Statement for Available TIF Funds 8. Consideration of revised MIF (Minnesota Investment Fund) Loan Guidelines 9. Consideration of revised SCDP (Small Cities Development Program) Loan Guidelines 10. Consideration of Downtown Business Improvement Program Loan Guidelines 11. Consideration of Purchase Agreement for 224 East 4th Street, Monticello, MN 12. Consideration of Purchase Agreement for 255 East Broadway Street, Monticello, MN 13. Director's Report 14. Closed Session — Consideration of recessing to closed session to develop or consider offers or counter-offers for the purchase or sale of real or personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3). PID # 155010052131, 155010052110, 155010052120,155010052102,155010066010 15. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 1311, 2017 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, Jim Davidson, Lloyd Hilgart Staff Present: Jim Thares, Angela Schumann 1. Call to Order President Bill Demeules called the regular meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items None. 4. Consent Agenda TRACY HINZ MOVED TO APPROVE THE CONSENT AGENDA EXCLUDING ITEM B. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. a. Consideration of anuroving Regular Meeting Minutes — November 8th. 2017 Recommendation: Approve Regular Meeting Minutes from November 81h, 2017. b. Consideration of approving payment of bills Recommendation: ITEM WAS REMOVED FROM THE CONSENT AGENDA. 4A. Consideration of items removed from the Consent Agenda for discussion. Consideration of approving payment of bills Bill Tapper noticed that there were two bills from North Risk Partners for worker's comp insurance. Tapper asked if that was for Jim Thares. Thares confirmed. Tapper asked for clarification of the two bills. Tapper also asked about the bills from Kennedy and Graven, as it related to 220 West Broadway. Thares stated that was for the purchase of a vacant commercial property. He was also concerned why there were two bills for "EDA Matters". Tapper stated there are six bills for TIF management from Northland Securities. Thares stated he spread those charges out among the TIF districts. He stated that ten percent of the increment dollars could be used for administration fees. Tapper asked if monthly bills for $1,000 would be expected. Thares stated that he believed that the main reoccurring cost would be a monthly phone call with Northland, until such time as a specific development project begins to take shape and gather momentum. BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH NOVEMBER 2017. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Regular Agenda 5. Consideration of 2018 Wright County Economic Development Partnership Dues Jim Thares stated that the dues proposed for the Monticello EDA are $2,529, which is a 3.4 percent increase from the previous year. Duane Northagen, Wright County Economic Development Partnership (WCEDP) was invited to speak about the involvement of the partnership. Northagen stated that the dues are raised every other year to keep up with inflation. He stated that the cost stayed the same the past three years and would bump up again in the next year. Northagen stated the organization worked extensively on putting together a broker event that was held on September 19th in St. Michael. The event was to connect cities with key developers and commercial realtors. It was anticipated that this event would happen around every three years. A video was also created to help the communities promote and highlight the County. It is available on the website to display on various city websites. A community fact sheet was also created for every community in Wright County. In addition, Northagen explained that articles were published in national magazine companies (In -Focus and Business Expansion Journal) as well. Northagen also explained in cooperation with greater MSP, they completed business retention and expansion visits throughout the county. Thares and Northagen went on several visits throughout the past year. The 2018 annual meeting will be held in Rockford on January 19th to kick start the 2018 workplan. The state demographer will be speaking at the meeting. Luncheons throughout 2018 will be held with a focus on workforce. Bill Tapper asked how many cities are involved with the partnership. Northagen stated that all cities in Wright County are involved except for South Haven. Thereaare also 50 +/- businesses included in the membership. Tapper asked about how the dues are calculated. Northagen stated that the dues are set on a base rate plus population metric. Tapper also asked for the total budget of WCEDP. Northagen answered approximately $130,000 with the County picking up half of the amount. BILL TAPPER MOVED TO APPROVE THE 2018 ANNUAL WCEDP MEMBERSHIP DUES IN THE AMOUNT OF $2,529.00. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 6. Consideration of Business Recruitment Agreement with Tangible Consulting, LLC Jim Thares explained that Tangible Consulting, LLC. was one of the consultants that worked on the Small Area Study. Thares stated that Leighton ad a conversation with staff about getting a restaurant on Block 52. Leighton maintained that with his connections, he could help the EDA to identify restaurant contacts. Thares stated that the contract would not exceed $3,000. Leighton was asked to provide references, but was unable to as he hasn't specially done this type of work before. Jon Morphew asked what type of restaurants would be attracted. Thares stated it would be an independent restaurant. The EDA discussed staying away from franchise restaurants for Block 52. Bill Demeules stated that the EDA could do $1,500 base with $1,500 finder's fee. Tapper explained the importance of also having a developer that would build something on Block 52. Steve Johnson asked if expenses would be wrapped into the hourly fee that Tangible Consulting charges. Jim Thares confirmed. BILL TAPPER MOVED TO AUTHORIZE ENTERING INTO A BUSINESS RECRUITMENT AGREEMENT WITH TANGIBLE CONSULTING SERVICES TO IDENTIFY AND ENGAGE DESTINATION BUSINESSES AS POTENTIAL FITS FOR BLOCK 52 FOR $1,500 BASE AND $1,500 FOR PERFORMANCE. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 7-0. 7. Consideration of 2018 Work Plan Goals -Action Statements Bill Demeules noted that the item was for review and input. No motion would be required. Jim Thares asked the EDA to take the work plan home to review it and bring additions to the work plan at the January meeting. Tracy Hinz asked how the strategic plan is distributed to the community. Angela Schumann explained that it is available on the City's website and that it was discussed at a televised City Council meeting. Schumann added that a bulletin board is up in the Monticello Community Center and that it would likely be posted. Schumann stated that she would follow up with the Communication's Manager to find out the different ways the plan was distributed. 8. Consideration of Recommendation for 2018 EDA Appointment and 2018 EDA Officers Jim Thares stated that Steve Johnson's term would be expiring at the end of the month. Johnson indicated his wiliness to serve another six year term. Decision 1: Recommendation of Appointment of Commissioner BILL TAPPER MOVED TO RECOMMEND TO THE CITY COUNCIL THE APPOINTMENT OF STEVE JOHNSON FOR A NEW SIX-YEAR TERM ON THE EDA. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. Decision 2: Election of Officers BILL TAPPER MOVED TO TABLE ACTION ON THE ELECTION OF OFFICERS UNTIL THE JANUARY MEETING. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. Decision 3: Consider Resignation of Bill Demeules Jim Thares offered appreciation to Bill Demeules for his service on the EDA. BILL TAPPER MOVED TO ACCEPT THE RESIGNATION OF BILL DEMEULES. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Jim Thares stated that a posting for the position would occur in the next week. 9. Director's Report Jim Thares reviewed the Director's Report. He added that he attended a DEED workshop for Greater Minnesota Business Development and Public Infrastructure grant program. A maximum award would be two million dollars with a fifty percent match. The prospect list was attached. Thares explained that "Project Cookie" was interested in Monticello. The facility would be a cost of $30,000,000 with 300 jobs. Currently there are no available lots large enough in Monticello, but there is area in the orderly annexation area. 10. Closed Session — Consideration of recessing to closed session to develop or consider offers or counter-offers for the purchase or sale of real or personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3). PID # 155019007050 11. Adiourn BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:13 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: January 10th, 2018 Attest: Jim Thares, Economic Development Director 4 MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 1211, 2017 — 5:00 p.m. Academy Room, Monticello Community Center Commissioners Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, Jim Davidson, Lloyd Hilgart Staff Present: Jim Thares, Angela Schumann, Jeff O'Neill, Wayne Oberg, Sarah Rathlisberger 1. Call to Order President Bill Demeules called the special meeting of the EDA to order at 5:00 p.m. 2. Roll Call 3. MIF -Small Cities Jim Thares presented information about the Minnesota Investment Fund and Small Cities Development Program Loan Funds and allowed usage. Thares explained that there are and would be a number of prospects that will need loan funding requests. Thares stated that it was time to review the loan programs to see if any changes needed to occur. Thares stated that back in 2005, the EDA was approved for a request to be a Local Development Organization (LDO). Thares stated at that time, the City received $750,000 from the Small Cities Development Program. The City allocated the dollars to Twin Cities Die Cast. Thares stated the Minnesota Investment Fund is $500,000 and the federal program has $620,000 for uses such as housing and rehabilitation, public infrastructure, community and economic development, business expansion, and job creation and training. The federal funds would have strings including low to moderate income benefit, elimination of slum and blight, and imminent threat to health and safety and environmental review requirements for each funded project. Thares stated that with the LDO set up, the City should be able to use these funds with out these strings. As for the MIF (State dollars), the City could give 20 percent back to the State of Minnesota and keep 80 percent to invest in projects with absolutely no strings attached. Thares stated that these dollars could possibly go towards housing projects within the city. Thares explained that the City could meet with Central Minnesota Housing Partners (CMHP) to discuss project ideas. Angela Schumann stated that CMHP would complete a community analysis to understand the demand for housing and if residents want to see more residential development. Thares stated that updated policies would be brought to the EDA in January. 4. Industrial Land Inventory Jim Thares provided a draft of statistics of the Industrial Land Inventory Study. It is a work-in- progress and more information will be provided at a future workshop. 5. Adiourn TRACY HINZ MOVED TO ADJOURN THE SPECIAL MEETING AT 6:43 P.M. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: January 10th, 2018 Attest: Jim Thares, Economic Development Director EDA Agenda: 01/10/18 5c. Consideration of approving payment of bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through December 2017. 2. Motion to approve payment of bills through December 2017 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements EDA Agenda: 01/10/18 5c. Consideration of approving payment of bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through December 2017. 2. Motion to approve payment of bills through December 2017 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 12/06/2017 - 3:49PM Batch: 00202.12.2017 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431990 HARRY LANTTO EDA Meeting Recording 11/8/17 12/12/2017 0 60.00 Vendor Subtotal for Dept: 46301 60.00 213-46301-443990 MONTICELLO CHAMBER OF CC 2017 Chamber Banquet (JT) 12/12/2017 118424 32.50 Vendor Subtotal for Dept: 46301 32.50 The preceding list of bills payable was reviewed and approved for payment. Date: 1/10/2018 Approved by Steve Johnson - Treasurer Subtotal for Fund: 213 92.50 Report Total: 92.50 AP -Transactions by Account (12/06/2017 - 3:49 PM) Page 1 C)'lt.ECK REOUES CHECK AMOUNT: REQUEST DATE. I + Check to: Harry T. Lautto 907 — 2"d Aire S Buffalo, MN 55313 Mectiniz Warkcd: Planning CommisNion EDA Meeting Cih- Council 'Citi- Council Total Due - 41 .5Z Date 17 - Date 7 -Date Date 1 It 1 Vendor # Time - Amount Due Time -- Amount Due I LeD Time 3 - 25 Amount 1)u*0 -G-C> Date Time Planning Commission: ��.`�t°�l�•�-k31�1`1D EDA 2-1. 430 1•'+1'1q() City Council 101. x#-11 t D. 4 3 19cl p LVD Amount Due Authorized by : bate [7-- 114 t TIME SHEETS ATTACHED MO TICELLO COMMUNITY CENTER TIME SHEET Employee Name HARRY LAN170 Position PUBLIC MEETING RECORDER - CONTRACT DATE TIME rl T TIME OUT Hours Worked Meeting Meeting Payment $60 f()r first 3 hours Agreement: $10 per hour for every hour after MEETING R: Ha } T_ Lan SIGNATURE - DATE, AUT[ ORT FD BY: DATE: Imo' l'# I I -j Monticello Chamber of Commerce PO Box 192 205 Pine Street Monticello MN 55362 Date Invoice # 11/27/2017 11225a Accounts Payable Monticello City of 505 Walnut Street Suite 41 Monticello, MN 55362 Due Date 11/27/2017 Description Amount 2017 Annual Banquet: Tailgating & Touchdowns - Fri, 12/1117 --Monticello Community Center (Angela 455.00 Schumann) Additional Attendee 0.00 Additional Attendee 0.00 Additional Attendee 0.00 Additional Attendee 0.00 Additional Attendee 0.00 Additional Attendee 0.00 Additional Attendee .- -�'— — 0.00 i 4 Thank you For your commitment to the Monticello Chamber of Commerce & Industry. 'rhe Montioallo Chamber represents the interests of business and serves to strengthen businesses and stimulate regional prosperity. Monticello Chamber is proud to serve as the "Front door" to our time Community. The chamber is a resource for businesses, residents and visitors alike, providing information and insight about the area, encouraging economic And community growth in addition to enthusiastically welcoming visitors to the area. 763-295-2700 marry@monticellocci.com Total $453:0 http://www. onticellocci.com �v Julie Cheney From: Sarah Rathlisberger Sent: Tuesday, November 28, 2017 9:07 AM To: Julie Cheney Subject: FW: Chamber Banquet Julie, FYI, this if for the $455 Chamber invoice for the banquet. We will pay $65 split between EDA & FNM. The remainder of the balance will be paid from: 1. Jeff 2. Kim (Jeff's wife) -��. ap• �� 3. Eric (Rachel's husband) 4. Jennifer. S[� 5. Tracy 6. Angela Their checks to the Chamber will be sent in the envelope when we send the City's check. Thank you! Sarah Rathlisberger Finance Manager City of Monticello, MN Tel: 763-271-3201 Fax: 763-295-4404 NOTE: The contents of this E-mail may contain information that is legally privileged and/or confidential to the named recipient. This information is not to be used by any other person and/or organization. The views expressed in this document do not necessarily reflect those of the City of Monticello, Email correspondence to and from City of Monticello government offices is subject to the Minnesota Government Data Practices and may be disclosed to third parties. From: Sarah Rathlisberger Sent: Monday, November 27, 2017 4:44 PM To: Rachel Leonard <Rachel,Leonard @ci.monticello.mn.us>; Jim Thares <Jim.Thares@ci.monticello.mn.us>; Jeff O'Neill <Jeff.Oneili@ci.monticeilo.mn.us>; Angela Schumann <Angela.Schumann@ci.monticello.mn.us>; Jennifer Schreiber <Jennifer.Schreiber@ci.monticello.mn.us>; Tracy Ergen <Tracy.Ergen@ci.monticello.mn.us> Subject: Chamber Banquet The Chamber has invoiced the City for the table at the banquet on Friday. The check for Jim and Rachel's seats will be sent to them with the check batch in 2 weeks. By then, please give me a check made out to the Chamber for you (and guest) at $65 each to include in the envelope so the invoice is paid in full. Thank you! Sarah Rathlisberger Finance Manager 1 Account Number Vendor Description CL Date Check No Amount PO No 213-46301-436100 FOSTER WHITE AGENCY INC Insurance Commission 12/22/2017 118492 22.00 Vendor Subtotal for Dept: 46301 22.00 213-46301-443990 WRIGHT COUNTY ECONOMIC E Holiday Event 12/7/17 JT 12/22/2017 118541 25.00 Vendor Subtotal for Dept: 46301 25.00 213-46520-465110 LINDA SMITH Pay As You Go - 2nd 2017 12/22/2017 118529 2,558.44 Vendor Subtotal for Dept:46520 2,558.44 213-46529-465110 MICHAEL CYR Pay As You Go 2nd Pmt 2017 Principz 12/22/2017 118484 3,558.61 213-46529-465110 MICHAEL CYR Pay As You Go 2nd Pmt 2017 Interest 12/22/2017 118484 5,821.92 Vendor Subtotal for Dept:46529 9,380.53 213-46581-465110 BBF PROPERTIES INC Pay As You Go - 2nd Pmt 2017 12/22/2017 118475 18,416.12 Vendor Subtotal for Dept: 46581 18,416.12 213-46585-465110 LAXMI HOTEL INC Pay As You Go - 2nd Pmt 2017 Interes 12/22/2017 118505 4,335.39 Vendor Subtotal for Dept:46585 4,335.39 The preceding list of bills payable was reviewed and approved for payment. Subtotal for Fund: 213 40,621.64 Date: 1/10/2018 Approved by Report Total: 40,621.64 Steve Johnson - Treasurer AP -Transactions by Account (12/21/2017 - 1:36 PM) Page 2 Page: t Kennedy & Graven, Chartered 200 SoUth Sixth Street, Suite 470 Minneapolis, MN 55402 City of Mont+cella November 30, 2017 1 - 1 1 General EDA Matters MtV 90 �0 � � t Through November 30, 2017 rs For All Legal Services As Follows:°�" 1111412017 MNI Phone conversation with J Thares regarding FrosIie 0.80 property, potential developer of spec building for industrial use 11r14�2017 MNI Phone conversation with J Thares regarding Froslie 0.50 property and passible ocquisdion by third party developer, possible relocation issues; possibility of develope r-bu?A spec building for mertuFactunng1warehcuse purposes and whether TIF is an option 1111712017 MNI Review documents from J Thares for Monday finance call 0.40 regarding LDQ designation. review agenda for call 1112012017 N1N1 Monthly finance call with Mtn ti llo staff, Northland. 0.80 Total Services: Amount 152.00 9500 76.00 752.00 $ 475.00 7otat Services and Disbursements: $ 476.00 Kennedy & Graven, Chartered 200 South Sixth Street, suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 Decembef 1 1 , 2017 Statement No. 140552 City of Monticello Accounts Payable 505 Walnut Avenue, Suite 1 Monticello, MN 55362 Through Nevernber 30, 2017 MN190-00101 general EDA Matters 475.00 Total Current Billing: 475.00 I decGari�, Vnder penalty of law, that chis account, claim or demand is just and rorrecE and that no part of it has been paid. ignature of Claim a t Julie Cheney From: Jim Thares Sent: Thursday, December 14, 2017 3:54 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoice Julie, this is okay to pay. Please code to: 213-46301-430400. From: Julie Cheney Sent: Thursday, December 14, 2017 1:30 PM To: Jim Thares Subject: Kennedy & Graven Invoice Jim Attached is Kennedy & Graven Inv#MN190-00101. Okay to pay $475.00? Please provide coding. Thanks, ,Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticello.mn.us AP@ci.monticello.mn.us CITYof mc6tiMlo Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. I A WSB ily of Manti nello Attn: Wayne Oberg, Finance Director 505 Walnut Street, Suite 1 Klonticeilo, MN 55362-8831 701 Kenya Avenue SOL&- S-Jge 3X I MmineaPPIPS MN 55416 1 (763154 1 - 9:800 November 27r 2017 Project No'. R-010965-900 Invoice No: t Relocation Arslstanca Related to Downlown Redevelopment GL A= # 213.45301.431990 City+ Staff Reviewer - Jim Thares ProfessionW services from OcS er 1. 2017 to jQgtWnr 31, 2017 Phase 00 Relocation Asslslance Related to Downtow Project Management Fee Total Fr±e 30,T68.00 Percent Complete Billings to Date Fee TORN Comments: 2.4165 Total Eamed Previous Fee Billing Current Fee Billing Total Fee 743.50 0.00 743.50 743,50 Total ails Task $743.50 Total this Phase $743.50 Total this Invoice $743,50 Current Prior Total 743.50 D-00 743.501 743.50 0.00 743.50 i Approvied by_ � ✓� . Reviewed by- Bre( Weiss Project Manager_ Penny Rolf 6udbFng 2 legacy - your iegzcy Ec�u3! O[ip7r!jndy En' Player IKg¢ fig ruin wsB City of Monticello Attn: Wayne Oberg, Finance Director 505 WaIntit Street, Suite 1 Monticello, MN 55362-8831 2016-2017 Market Matching GL Acct #213.+46301 _Aa19J0 City Staff Rewlewef- Jim Thares 701 XL ria Avenue SaUSr SI, ite.-kM I k,1 - : ,,p , MN 5�,41i� l 17635 641--48W November 27, 2017 Project No; 0-002595-340 Invoice No., 13 V% PriTessional Services fr9m October 1. 21>MiT t* q_cfiober 31, 2017 Phase 01 Fee Total Fee Peroent Comprete Billings to Date 2016-2017 Market Matching Retainer Fee 9,100.00 100.00 Total Famed Previous Fee Billing Current Fee Billing Total Fee 9,100.00 8.400.00 700.00 Total this Phase 700.00 $ 700.00 Current Prior Total I -aa 70000 8,400.00 9.100.013 Totals 700.DO 8,400.00 9,100,00 Phase 02 Hourly Production Design Project Protect Mgrnt Hours Rate Amount Phillippi, Michael 10!10!2017 _50 76,00 38.00 ED Services- map for Jim Totals ,50 38.00 Total Labor 38.00 Total this Task $38.00 Total this Phase $38,00 Billings to Data Current Prior Total Labor Totals 3600 38 10,478.75 10,478.75 10,516 75 10,516.75 -OD Total this Invoice _ _ $x73$,00 Billings to Date Current Prior ToW 4 Fee 700.00 8,400.00 9.100.00 F . Ding € 4sgary - '. ;:. - Erwdi OPPO'Iu'rly Ernpu}*! Project 0-002596-340 MONT - 2016-2017 Market Matching Invoice 13 Labor 38.04 10,476.75 10,516,75 Totals 738.00 10,978.75 19,616.75 Comments, Approved by: f4 W� m- Revii2wed by, Bret Weiss Pra�eet Manager: James Gmmberg Rage 2 C)'lt.ECK REOUES CHECK AMOUNT: REQUEST DATE. I + Check to: Harry T. Lautto 907 — 2"d Aire S Buffalo, MN 55313 Mectiniz Warkcd: Planning CommisNion EDA Meeting Cih- Council 'Citi- Council Total Due - 41 .5Z Date 17 - Date 7 -Date Date 1 It 1 Vendor # Time - Amount Due Time -- Amount Due I LeD Time 3 - 25 Amount 1)u*0 -G-C> Date Time Planning Commission: ��.`�t°�l�•�-k31�1`1D EDA 2-1. 430 1•'+1'1q() City Council 101. x#-11 t D. 4 3 19cl p LVD Amount Due Authorized by : bate [7-- 114 t TIME SHEETS ATTACHED MO TICELLO COMMUNITY CENTER TIME SHEET Employee Name HARRY LAN170 Position PUBLIC MEETING RECORDER - CONTRACT DATE TIME rl T TIME OUT Hours Worked Meeting Meeting Payment $60 f()r first 3 hours Agreement: $10 per hour for every hour after MEETING R: Ha } T_ Lan SIGNATURE - DATE, AUT[ ORT FD BY: DATE: Imo' l'# I I -j LHB, Jnc. 21 West Superior Street, Suite 540 DuJuth, MN 55802 1218.727-8446 City of MontiGetlo November 6, 2017 Attn; .lin, Thares Invoice No: 770668,00 - 1 505 Walnut Street Suite #1 Monticello, MN 55362 Project 170668.D0 Monticello Fred's Gas Station TiF Analysis Hourly NTE 53,201) induding reJmbursabfe expenses Professlcnal Services from Sentomber 30, 2Q17 to IQctober 27. 017 Professional Personnel Net Due 30 days from Invoioe Date Hours Rate Amount Principal Fischer, Michael 6.00 265.00 1,590.00 .Administration Heck, Laura 1.00 70.00 70.00 Inspector Fisher, Phillip 10.00 126.00 1,260.00 Totals 17.00 2.920.00 Tolal Labor 2,920.00 Ri9i Mb u rsa ble Expenses Mileago 16.05 Total Reimbursables 16.05 16.05 Total this Invoice 320936,05 Riltings to bate Current Prior Total Labor 2,920.00 000 2,920.00 Expense 16.05 0. GID 16.05 Totals 2,S136.05 0.00 2,936.05 Net Due 30 days from Invoioe Date Julie Cheney From: Jim Thares Sent: Thursday, December 14, 2017 4:34 PM To: Julie Cheney Subject: RE: LHB Inv# 170668 $2,936.05 Yes, this is okay to pay. Please code to: 213-46301-431990. From: Julie Cheney Sent: Thursday, December 14, 2017 3:58 PM To: Jim Thares Subject: FW: LHB Inv# 170668 $2,936.05 Following up on this one. From: Julie Cheney Sent: Monday, December 4, 2017 1:59 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: LHB Inv# 170668 $2,936.05 Jim Attached is LHB Inv# 170668 for $2,936.05. Okay to pay? Please provide coding. Thanks! Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us i' ITS +?f �41tcefl Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 1 1 a ell. Appraisal & Consulting 12805 Highway 55, Suite 300 Plymouth, MN 55441 952-544-8966 Fax. q52-544-8969 BILL TO City of Monticello Jim Thares, Ecmamic Dcvdapnient Director 505 Walnut Street Monticc] Iu, MN 55362 N — Invoice LATE INVOICE # 12/01129;7 25425 i(1—+31TM TAX ID NUMBER 41-0941600 PLEASE - RETURN ONE COPi'' of INVOICE WITH PAYMENT 2017 EMPLOYEE REIMBURSEMENT VOUCHER CITY OF E4 ONTICELLO (El }l}I} 7} NAME � � � DATE OF R E UEST_ X7T) C Address it-.) MaiI (if necessary PURPO S E.. -D TE V0VI 0 - (see back for multiple requests) LWATIO T ' ? + (see brick For multiple requests) EX PENSES. (Please reference Trawl and KeiJllbursement Poij0-) Mileage 1.5,535 per milt} S 1(Total miles - Reimbursable defined on back. A city vehicle was not available. Traveling direction warranted personal vel,icie use_ Traveflrig conditions warranted pefsonal vehicle use_ Ther Parking Fee Meals Ludging SU BTOTA I. Other Description $ (include Mated, iiemized receipts) (include dated, item&vd motel bill) Account N uinber 1 - . 4 4 3CA-A33100 Account TOTAL TO PAV IGNED APPROVFD BY S j NOTE; Attach copies c doe uinentation,including invoices. receipts. seminar certificate, etc_ Police: Reimbursable rni Ieage ",il! be the lesser of actual iniles driven froin normal work location to imiiliitiglrncctiiig/confereiice location or the actual miles traveled from departure location to destination less the: myleage of commute to normal work location. Instructions: ] l'you are leaving and return iPg to work, skip boxes 2, 3 and 4. Otherwise, subtract 4 gram the lower of 1, 2 or 3 for miles claIMed, Date Where/Purpose Round trip miles, From horne to work Miles (4) claimed Work to destination M Home to destination (2) Home to de5tinatjDn to work to home (3) r,AA ------------- i, �+ 1 I � -44 Ud M YOUR TEMP TO : Ordway Center for 'the Performing Arls 57 MIN { 49.3 MI Trip time based on traffle conditlont as of 3=57 RM on Derernber 15. 2017_ Current Traffle; Modarate Print a futt health report of your car with HUM vehicte diagnostics {800) 905-2501L 1. Start out going southwest on Walnut St/County Hwy -58 toward W 6th St. Thea 0.03 miles 2. Take the 1st left onto W 8th St. if you reach W 71h St you've gone a little too far, Then 0.07 miles r+ 3. Take the 1st right onto Pine St/MN-25- Continue to follow MN -25. 1 Caribou Coffee is an the right. If you are on E 6th Si and reach Cedar St you've gone a love foo far. Then 0.30 miles 4. Merge onto 1-94 EIUS-52 E= toward MinneepolislSt Paul, Then 23.27 miles 5. Keep left to take 1-94 EIUS-52 E toward 1-694, Then 8,82 miles 6. Keep right to take 1-94 ECUS -52 E via EXIT 35B toward Minneapolis, Then 17.75 miles EkIT 7. Take the 5th St exit, EXIT 2418, lowerd 10th St. A Then 0.2E miles 8. Merge onto 51th Sit W, 'then 0,71 tulles r} 9. Turn right onto Washington St W 1 ' Washington St N is 0.1 miles past 7th S( W. If you reach Market St N you've gone a ltttje too far. Then 0.05 miles C 10. Ordway Center for The Performing Artsr 345 Washington St, Saint Paul, IVN, 345 WASHINGTON ST is on the left. if you reach 4th St W you've glome a Piffle too far. 0.03 total miles 0.10 total miles 0.40 total miles 23,67 total miles 30.49 total miles 48.24 total miles 48.50 total mites 49,21 total miles 49.26 total miles USe 01 diNctions end maps is aubieeL Lo Our TErms of Use. We den t guarantee KCurACy, route candiLion s 13r uasb,lrty. You ISSurhR all risk of use. Lrnl ' � S' FC3r1C 15 h (i.e'. C -Ove rA),_tr,'Arpbrrurrp Li -Kc RaMIcy � I ti SE MrCh8i3t_ y_ I �! IL if'� I 10 Lino, es 150,� C:harnpur, BSakr7$ .� Pa • * Brooks n N3Lr':�5{IQ'J! III�]��k w _ �, .{;' •I{4{ Lake EVe4r �4 ' Pl MOlJth ` 1 y/ 1 I Ocgkdale I�V I -'our,dtLL4uP,�'6 it UL Mei ",:'ir'�t.i Vr•w.pr, Wood Lij E7tIl�IP;f T Ef'1Prairie �—-- I Inui�rr{ir{,V� C=AIkHgF �tE]Oi'I"FlligtOr7 —,E -Ig an Book a hotel tonight and Car trouble mid -trip? save with some great deals! -4 MapQuest Roadside I1=877-577-7881 �-.; Assistance is here; Join your partners of GREATER MSP as we discuss how to drive our region's eoonomic prosperity in the future. Featured speakers will include Richard Davis, Michael Langley and others who will demonstrate that by working together, vire can achieve great results for the region. As the world grows increasingly faster and more complicated, partnership becomes our path to the future. Together we will drive to a GREATER MSP. We are pleased to welcome the Saint Paul Chamber Orchestra as they perform at GREATER MS P's AnnualMeeting- Arn Thares From: GREATER MSP <info greaterrnsp_org�- Seat: Tuesday, November 07, 2017 998 A To: Jim Thares Subject: Last Chance to Regiverr GREATER MSP Annual Meeting GREATER MSP Minneapolis Saint Paul Regional EConarnic Development Partnership 2017 GREATER MSP ANNUAL MEETING November 13, 2017 YOUR TRIP TO: Brainerd Public Library 1 HR 30 MIN 1 88.1 MI Trip tin1C based On traffic conditions as of 3:59 PM on December 95, 21197_ Curren# Traffic: Q;Il[ �9Prink a fuLL health report of your car with HUM vehicle cliagnostics (Soo) gob-25ol 1. S1arl out going northeast on Walnut S1fCounty Hwy -58 toward 51h St_ Then 0.13 miles 0.13 total miles 2. Take the 2nd right onto W 4th St_ W 4th St is 0, t miles toast 5th St. If you reach W 3rd Se you've gone a lrttfe too tar. Then 0.08 miles 0.21 total miles 1 3. Take the 1st left onto Pine SUMN-25. Continue to follow MN -25, if you are on E 41h St and reach Cedar .St you've gone a little too Tar. Then 0.58 miles 0.79 total miles 4. Turn left onto County Road 11 NWICounly Hwy -11 _ Continue to fatlow County Hwy -11 _ County Hwy -17 is 0.3 utiles past W fiver St. If you reach 200th St NW you've glove about 0.4 miles too far. Then 3.86 miles 4.64 total miles S. Turn slight left onlo Highway 10 SEIUS-10 WIMN-25_ Continue to follow US - 10 W. US -t0 W is 0.1 miles past 149th St SE. If you reach 142nd St SE yovViR gone about 0.5 miles too far. Then 54,43 miies 59.08 total miles G. Stay straight to go onto MN-37111-lighway 371 _ Continue to follow MN -371. Then 22.73 miles 61.81 total miles RM14F 7. Take the MN -371 ramp toward Brainerd. oA Then 0.39 miles 82 20 total miles 8. Turn Blight right onto MN -371 Bus. Then 5.83 miles 68.04 total miles I Mapre sr is iva ,vast Norwood St. It you reach Laura+ St you've gorse a tittle too far. Then 0.07 miles 10. Take the 2nd left onto S 5[h Bt. 5(h St is just past ,S 6th St. If you mach the and of Made St you've gone a ftttJe too far. Then 0.01 miles 4 11. Brainerd Public Library, 416 S 51h St, Brainerd, MN. 416 S 5TH ST is on the left. If you reach Norwood St you've gone a tithe loo far. 88.11 total miles 88.13 total utiles Use of direClionS Dnd mRpS r% subjett ko our Io rm5 of Use, We don't guarantee accuracy, mule eondid Dirks or isal uMIV. You assUme Akil risk of Wgo. C� S 010 Book a hoteL tonight and save with some great deals! (1-877-577-5766) ..;may;,,: �.� ; ,f .. - -'-• F�.f'j,e�.lr a.''�' =��r. mss.={'�i'•. 5 East &Ahet Lake Elk River S Parnsey 5t Michael Car trouble mid -trip? MapQuest Roadsidie Assistance is here: {1-888-461-3625} rr Fere' 61 Greater Minnesota Business Developmem Public Infrastructure (BDPI) Grant Program - — Page I of 3 4icp Economic Development ASSO€ ati on of Minnesota NEWS PRESS: I EI Ls Erred 10 a Krienij Greater Minnesota Business Development Public Infrastructure �13D.Pl) Grant Program -- Friday, November 3. 7017 rp Corlifnerfti Posted by sariaa NE�:s: Sll rl its i 000E MhlU Fnler search ciiteria. -- T?tC Minnesota Depar i-neM 01 Employment aflo E onomrc Uevelopment (DEED I wIH be co(lducbng a workshop for a Greater Mirmnesols BDPI Grar)t urogram Eli9ibie aPPIicaMF� include sitatutaiy 110 me rule [#garter titles arij =unties located outside ttie severt-cimty Metropolitar atea DEED will aksr, discuss athe pubhC tn"StruetUMgrant ptog rams, i.nrIoain9 tie InriovatMe Business Devaloprnent PubIIG lnfr�itstruc#ure ji8DP1) an Tfansporlattort Lmriomir- Development Irrfrastruature (TED] } The man Tows ofthiF,worksmOp is the B D P I program. Applicatic ris are accepted year round. No RSVP P required. DEED website: 13UP- Program Topics Covered Types of Businesses - Eligible Infrastructure F Match and Full Funding • Application forms review Sessions Tues., November 28, 2017 Time: 9.30-11.00 a m Location: South Central Service Cooperative. 2075 Lookout give, North Mankato. A4N 55003 Phone: 507-389-1425 Di c>t ns: Sough Central Servoces Coop Thurs.. November 30, 2017 bttp:llv4To+w.edam.c rglncwsl372963l treater-Mliinewta-Business-Development-Public-infr... 111712017 Greater Minnesota Business D3evelopm- -,nt PubIic Infrastructure (BDPI ) Grant Program - ... Pagc cel` 3 Time: 12:80 — 2.00 p.m. Location: Brainerd Library_ 416 S. 5th Street. Brainerd. MN 56401 Phone_ 216-829-5574 Directions: Braonerd Lobrgly Fri., December 1, 2017 Tfmio: 9:30-11.00 a.m. Location., Northbrest Ad oesota Poundation, 201 3rd Street. AW Bernidj}, MN 55601 Phone: 218-759-2057 Directions: NW ?0minesefa Foundaroon Add a Comment POST C010MENT W sack ro Index LATEST NEWS M.ORF EDAM EVENTS MORE 111,V2017 Greatei Minnesota 9u5ines5 Developrnr;nt Public lntrastructure rBDPI) Oran! Program 111121017 Conrorninition Cleanup arid Investigation Grants Program Annual Repori Now Available 1217!2017 Webinar CoMWi-cifil Real Estnle trends 8 Opportunilies in Minnesota 111912018 w ill 9MI0 2018 EDAM WjAter ConferenGe 1000 (of 1004 oharaders remaining) in !I O http://,Aww.edam-orglnewsf372963/Greater-Minnesota-Business-Development-Publie-Infr... 11/7/2017 YOUR TEMP T. 3t Michael Cinema 14MIN I 12.4M1 � Trip time based an traffic conditions as of 3:54 PIK *n (��?Print a full health report of your car with D.csmncr 15. 2017_ Current Traffic= Light HUM vehicle diagnostics (800) g06-2501 1. Start out going southwest on Walnut StiCounty Hwy -58 toward W 61h Sl_ Then 0.03 miles 0.03 total miles I 2, Take the 1 s left Onto W 6th St. If you reach W 7th St you've gone a h(fle too far. Then 0.07 miles 0A0 total miles �} 3. Take the Ist right onto Pine SUMN-2$_ Continue le follow MN -75, 1 ' Caribou Coffee is ori the rrghf. If yoLj aro on E 6th St anis reach Cedar St youVe gone a ilittte too far. Then 0,30 miles 0.40 total miles . Merge onto 1-94 EIUS-52 E toward MinneapotisM Paul_ Then 11,61 miles 12,01 total miles rxkt 5. Take the MN-241ICounty Hwy -36 exit, EXIT 205- A Then 0,25 miles 12,26 total miles r+ 6. Turn right onio 42nd St NEtMN-241, ti you reach 1-94 E you've gone about 0.1 mites too far_ Then 0.08 miles 12.34 total relies 7. Take the 1st left onto O Day Ave ISE, If you reach Oakwood Pkwy NE you've gone about U.2 miles too far. Then 0.09 miles 12.43 total miles " 8, 5t Michael Cinema, 4300 O'Day Ave NE. Saint Michael. MN, 4300 VDAY AVE NE_ Your destination is fust pas[ 41st St NE. Your des Vnation is at the and of O Day Ave NE. Use of directions and maps is aubjeet to pur Terms of Use. Wt dOr`'l gvbr*nlee btturaty, mule conditions orusabdily. You assume all ngk of,jae. bik Loki.'' to E 9S pp�� 35 is 10 Elk -River h, �tsega St Michael + - __ Book a hotel tonight and Car trouble mid -trip? save with some great deals! MapQuest Roadside Assistance is here: (1-911-677-6768) 2�lk {1-888-461-3626) p4h. ' You ar invited Thursday, December 7,, 2017 4:00 p.m. to 6:00 p.m. The WCEDP would like to invite your to. . � , fToliday Networking Event and Social! 0 �E€anornke Dave�npatant partplarSj;fp This evert is open to all Businesses! Place: St. Michael Cinema (4300 O'Day Ave. NE, .St. Michael) COST; $25.00/per person InclUdes appetizers! `ash Bor. (The 1st one is on us!) Ptease RSVP by Noy+. 3Oth: )strum@ Wrightpartner*hip,org 763.477.3035 Www.WrightPartnershlp.oirg Sponsored by: (Crs N5 Sarah RathGsberger From: lake <j0lingerf05ter-white-com> Sent, � `j Wednesday, May 31, 2O17 1:28 PM To: Saran Rathlisiberger Subject., RE: Insurance quotes $3,450 — Ao � W *, Jake Olinger �• (�U I�� 1111 Lie, # 20406071 Foster White ln5urznccAgency 114 Wes t3r1 Street, Monticello MN 55362 0: 763-295-3b1<4 IF: 763-295-30] 0 ]03JngerPFaster-White.rum www. hswr-wh ite-c Follow las; wbv - m FoAg LILA�� Dischirrtie%t. T65. message roRtains nWiidexi it idormation in tendrii only for the Auve fddresses anti may Co"ralri informtioo thax I5 proprtrtary or le jaJty prlv62Vd tf you received rias message In trror, please nobFy v58[Fd deletr tbk43npnat megxige, From: Sarah Rath Iisberger [mallto-S a rah, Bzthlis�erger ci.rrso�x�re1#tf.r��.�s� Sent: Wednesday, May 31, 2017 1:22 PM To: Jake <Lu l(ogtLLZLfqster-white.Co.m> Subject: FW: Insurance quotes Jake, See the below quote, Thank you l Sarah Rathlisberger Finance Manager City of Monticello, MN Tel; 763-271-3201 Fax: 763 -295-4404 NOTE_ The Corrtenft of this E -mo) rvuV rontolrr infOrrrmatiorr that is legally pfivfleged and or confidenriol to the Pam ed retipient- Th i5 information is not to be used by prry other person ar�d or organriatoon. The Vfews expressed in this O�XvWilt do 4q)t rieceSsordy reflect #hose of the Cr ty Qf Montrceiio- Erraif cot t� and frCri l Cl!y C51 Monticello po vernmeti I pj feees 8 subject to rhe 610ne5,01g GoPe r meat 'd [s Pro rt%es and may to tnrrd oart�5. From: Tony Ve[is hek [rrraIltn-t0rl V h a EtIlOirL5Ufaflue.toM Sent: Wednesday, May 31, 2017 1,11 PM To: Sarah Rath Iisberger<5arah- Rafhlnbr GeT2 d.montIce iIo.rnrl use Cc: JeffO'NeiII <eff-Qrleiil Pd.rnonticeIlo. mri-trp, Wayne Oberg eWa V ne- 0 be rg@ d.rnonticeIlo-mn-us>, Brian Stumpf <Briarl.STumpf @ ci.,muntice[Jo -mn-u5> Subject: RE; Insurance quotes S4,250 TiOnY Velishek. CIC Risk Advisor P: (763) 314-0634 1 TF; (885) 331-8684 j F- (855) 927-6655 tOnYv@aPolloingurance.com I www_norkhrEskpartnefs,corrk 611 Wainut t_, Suite 1 1 Monticello, MN 5536 NORTH FRISK PARTNERS" [nn APC.)LLQ DIVISION From: Sarah Rat h li sbe rge r mailto.Sarah.Rath Iistxer e r@ ci,montice[lo;,mn.u.s] Sent: Wednesday, May 31, 2017 11:05 A To: Tony Velishek Sub]ect: Insurance gtAotes Tony, The city is seeking quotes to be agent of record for its League of Minnesota property and casualty policy for the fiscal period starting on 7/15/2017. Attached is the current common coverage declarations. The city can add or subtract coverage from this policy at any time prior to or during the coverage period without additional compensation. Further, the city has the option to retain the successful agent for one successive year for the same compensation as the first. Compensation will be a flat amount paid directly to the agency witNn 60 days of commencement of the policy period_ Each agent will email their quotes to me starting at 1.15PM on Wednesday, May 31, 2017. The lowest quote will be forwarded to the otfler party for response, The response must be at least $500 lower and provided within 15 minutes of the forwarded quote. The city has the right to reject any (or all) quote(s). Thank you! Sarah Ftathlisberger Finance Manager ('IYY C}F i Monticeflo Tel: 763-271-3201 Fax: 763-295-44,04 NOTE. The contents of this E -mad may contain i4ormation that 1s iegoily privileged and/or confidential to the homed recipient, This information is no to be used by any other person andlor orgonira6on, The views expressed in this document do not necessarily reflect those of the City of Monticello. Entail carre.5pori den ce to and from City of Monticego government offices is subject to the Minnesota Governmenr Data Practices acrd may be disclosed to th ird parties. I "1141Y;Y 11I NYI IY"1"{'1'.- L SJ L:4�1F ()l FR1 CE, 1) CL R:'iTI /:�� C NIC 39 { Mcnar i. l'7o5 Xl j ny 1411: I F"ACUl' OFNiINNf'_ti[1TA CIT]FS �'rrt w.wk ( 1J1{'n.urS Nmkil er: I NSU RANCF TR -S1 .t ("Mc jume IIIVlainraIIV41IArvIr,Y I 1r417ti I. C, ITV A 1 1%I:1kII.INC: +Ixr)ltr N1;'k i�1C1i�rl('�;t.f.{}. c•rr� {.}J. 305 W' 4;rRFIi1 I rr!- ; I Jr�117 }. c•(WC:AACL VEK10D- hvm: {1 IN21]16 10; 117f151201? PAP k *Iae4ard I1imrmI 41 aI1i11+�.1L111p s.% n C Vulrrwrr I1"IAralil"n.N Jtc117 #'li1' CC1VERF:t) F:iRIA' IS: 1k: "r .1 COVERAGE PAR l"s: IN RETURN V()F{ I rll- 1`A1 ?ll -AT ()F THE PRO? QAL k N P SIVtr-,c.. ' Til 11,1. -r1ir: yERAIti [1J-' 1,1KlI-A(;RVF:ti'1()pk"%10F:7mF (Ark Fu#:3}PkRrl '�►ITIIC0VER.k{,e. ti#ICl1 ti KF.1.{11 JFM %% 11 1[ 11 A I,Rl-.%IIk M i I# Ali{:!: 1* I I r I D: Pie(}I`F k I i , ( RI II F:. Bo 1). ant PETRO I. k %'f1 1`re glllttil rrlJlYerf} � , #lJ{�IfirrlY:rl (inered IApss fpr I1ama C.% 'J 1_ r.=ili^'I.i 1t:11'el' Wad A1'1;k eknVfl U1 11434A C w cnige •, :.I,--, . {'rims' HIPI i1 —. Pc�ra�uu{� J':Ql II" IF. I IiFIF: kF 11{lk .ti — SII Ir rr 1. f I ISH I I 11e{IVa1 :l illi RdaW J-,t1Ji11ie frir. ir..f.[)MOMLEt."BIJ I'1} 4V,I'i},1t111i11.1'. IIIVs, l{ AI -11.1 N1 k(; F: Jlinr; 1; F: F.J#k!. til\r.til .t[:{.I;f.GJIT isUI['JJ1MF, Ix.xf.ti\ilf.lIMI' — Ilrm h, J1kL%III II IN, bt F: it }' 11 1l11.#: } �I :11 =1% klI% 1til'I ir4rn Y U ItNIN. k1`r`I.I( i111.F:'J'(1 ti.l ['frkJ-It.i[:};!'.kR,Iti; ['{'k1l11:0)Y t'l l) NN ti l" I'i .14 ' k 91.1--: 11 I':' DV�0Cp1-{AI DW: -?Ss11�1; #iC' r161 :)`I I , c,:Iis1 1)irvcli1r, 141{ r I — L1{ I I IJa c'-111 r iG ria V # al N� r J' -+'F Nas N o r O o O F'+ i+7[`y tv# t 4 Q ri P 4* W a+t a& u% W h iH ► 40 ib Y4 aK YF vooS EQ4 oC>0 ¢o oo oo vgvY 47 u-� e � - 41� m -- — r TT � T i�rw=*kC:xcDC] m LO e LD T rti r7 +ri ed cn rk CO 4r rD m 4 qa E x LMOm a5vr`iw coLM r- r7 � e*5�poxcOr7 - �rti+J?� rtipp a P7 9G D - C x L6 Cli rt"! t tr0 Com+ tr 4} Uj 9d {4 in h Y'*} 0 Cor tT_I uo P Fw 0?, M 4 N o 4 4 7 ##v i!} V} +f} z W {" jx 6 .g C rr� -4D } En 0 r o E! a w m of a pg a 3-1 u _ C C � a3 y C C g a ,4 w f 3 a_ rC G a a C aq c} C.3 �J }} y 5 CF�_ Q} c L � ro E 14 0 0 } a� o - m c SU 9 a as j7 aCLti a] QILLUC-'- 60a_uli' La K!] C+SC�J4i n -A{i0 V:2 11JZQYd � HOLIDAY PARTY • NETWORKING EVENT AND SOCIAL W right County Econornlc Development Partrnershkp PO 1 525 Rockf )rd MN 55373 763.477.3035 r: 7wuollett0wrlphkpartnersh III 4+3qq II, Z7— 4L301 Dake: 1211112017 Jim TII City of Monlirello Qt], aetal#s I Drscourrt L. Otte Tota0 F+01,10AY PARTY PAYMENT DECEMBER 7, 2017 Tots! Dia ppnr Subtotal S25,00 $alex Tsx To t a l $25,01) �� CoWrn� Fr-.. If you have any Questions please contact mer+ssa at 763,477,3035. Thank you for your partrc patio n? Prairie West Pay-as-you-go balance District: 24 Payment to: Lfnla m' (Nol Riverwood Bank) Description: TIF 1-24 pay as you go 1st or 2nd 112 Original Amount 65,004.00 213-46520-4 5110 Interest Rate 8.500% Payments Commence 811199 Ending no Later Than alilia Available TIF 4000% Correct Available TIF 36.00% State assessod fee No - county rerniltance represents whole district Fix rale to 36.00% 8 adlool for imurreat &1113 vendor pmt per V40 7fi16f13 (�� 1� 11 Increment Total Balance Date Received Prirmi al Inlerest Payment Remaining 1213111098 -6.60200 -6,602.40 71,602 00 1213111999 -6.216.01) -6,218.00 77.819.04 712812000 -3.902.00 2,853.00 -1,049.00 87.720.00 111112001 1.63700 1.637.04 8172000 7+2612001 -1,981.00 3406.00 1.42500 83.707.00 111512002 2,039.00 2,039.04 83,70140 711812042 -2,236.00 2,90400 668.00 85,937.40 111412003 284 00 2,430.00 2,314.00 85,653.00 712412003 -1,338.00 3,393.00 2,655.00 88,981.00 V2312D04 418.00 2,569.00 2,987.00 86,573.00 712212404 -710.00 4,145.00 3,435.00 87,283.00 112012005 152.04 3.709.00 3,861,00 87,131.00 712112005 190.00 3,704.00 3,894.40 86,94100 111412006 155.00 3,695.00 3,850.00 86,786.00 712012006 1.59700 3,68a.00 5,285.00 85,189.00 111812007 220.00 3.62000 3,840.00 84.96900 7119 2007 757.00 3611.00 4.358.00 84-21200 712812008 2700 3.379.00 3.606.00 84,165 00 &&2008 922.00 3,856 DO 4,778.00 83.263 DO 11912009 11,941.00 1.237 72 3.538.68 4 T76 40 82 025.28 81112009 11,867 96 1,301 11 3.48607 4.787.16 817.724 17 11111010 10,824 35 89896 3,430.78 4.32974 79,825,20 &412310 11,994.18 1.40510 3,992.57 4,797.67 76,42010 t1t12011 9.95066 64141 3,332.85 3.98026 77,772 89 81112011 10.435.67 868 93 3,306.34 4.17427 78,903.77 11112012 8,623.41 180.95 3.25841 344936 76 722 81 811.12012 8.288.08 5451 3260.72 3 315 23 76.668.30 V 1120 t 3 9,1349.85 601.54 32-58.40 3859.94 76.066 76 81112013 9,308.40 494.36 323254 64 3.723 20 75.5M 40 11112014 6,100.49 =1.015 82 3,212.00 2.19613 76.592.22 $ 112014 10,957.58 473.56 3,25517 3.728.73 76,176.$6 11112015 5,714.45 -1,177.84 3,235 04 2,057.20 77,296.50 81112015 11,022.27 582.32 3,285.10 3,96802 78,613.59 11112016 6,150.78 -1,041.80 3,256.08 2,21.4.28 77,5.55.38 8/112016 11.28811 763.37 3,300.35 4.063.72 75,892,02 11112017 6.303.99 -598.47 3.26791 2,269.44 77.890.49 81112017 10,967.63 638,00 3.310.35 77,252.49 11112018 7,106.78 -724,79 3,253.23 C2558.44D 77,977.28 81112018 7.106.78 -755.59 3.31403 44 78.732 87 (�� 1� 11 Front porch Assoc_ Pay-as-you-go District; 29 Payment to. iChael yr O IBox 1338. M0n6cello MN 5536 De,-,Option. TIF 1- pay as you go 1st or 2nd 112 Original Amount 22D,000.00 213-46529 465110 Interest Rafe 7,2508 Payments Camrnence 811104 Ending on Later Than 211120 Available TIF 80.0009 Mate assessed fee No - county remittance represents whale district Increment Taal Balance Vate Received Prinoppal Interest Paymen# Remaining 71'12+2004 (4 110.00j 3, 865.00 i 245.00) 224,110.00 112012005 (5.734.00) 2,390.00 4,3,34400) 229844.00 7121 r2005 t .052.00 8.332.00 9.384.00 226, 792.00 1(192006 {1,362.001 6,?32 OO 5,570140 230,154.00 712012006 3.614.00 6.34300 11.957.40 226.540.00 111812007 2S68.00 8 212 0O 10.900.00 223,862.00 71191+2007 5,240.00 8.11500 13,355,00 218,672.00 162612008 t 452.40 7.92500 9,377.00 217,980.00 8W2006 3,629.OG 7.$72.00 11,50100 213,531.04 1 1)2009 15,949 00 7,418.70 7.740.50 45,159.20 206,112.30 81112009 15-39035 4,840.71 7.471.57 12,312 28 201,271.59 11112010 14.464.64 4,272.42 7296.10 11,555.81 196,99917 8M2010 13,081.79 3,324.21 7.141.22 10,46543 193,674.96 11162011 13.081 74 3 444.67 7.020.72 10,465.39 19{x,2313 29 80/2011 t 12.064.21 2,755.52 5.5135.85 9,65137 18747477 1112012 12 054.88 2,847.94 6.795.96 9.643.0 1$4,526 82 81112012 fit 134.04 2,274.51 5.67J2.72 8.90723 18241231 1W2013 12.502.74 3,469.75 6.61245 10,082 19 178,942 57 81112013 8.98293 699.68 6 466 67 7t186.34 178,242.Bg 11112014 8.982 93 725.04 5461 30 7,18634 177.617 65 EV 112014 10.038 63 1,596.04 6,435.02 8,031 06 175.921.81 61192015 10,581 16 2,08776 5,377.17 8,46493 173.834 05 W V2015 11,406.13 2,82342 6, 301.46 9,12490 171 01063 111?2016 9,670.49 t,637 26 5,199.14 7.73639 169,47337 81112016 12,552,81 3.698.84 5,143.41 113.042.25 168.574 53 1W2017 112017 8.85 8.73 924.91 6.00208 6.925.98 16454963 81112017 12,516 82 4.044 91 5, 8 65 18.013. 460,604 7 11912018 11,725.66 3.558.61 6,821 9 9,381}_53 57.046 11 81112p15 11,72566 3.68761 569292 9780.53 tr-N3,358.50 11112019 11,725,86 3,821.28 5,659.25 9,380,50 149,537.22 Cub Pay-as-you-go blalance Distnct; Payment to. o�su1w 7escrption. TIF 1-22 p Original Arnaum 500,000.007 213-46581-465110 Interest Rate 7,500% Payments Commence 111101} Ending no Later Than 211120 Available TIP 90.DO% P10 155-076.001010 State assessed fee 0.0035 Increment Total Balance Date Received Principal Interest Payment Remaining V 1 12000 000 500, 000.00 W1=00 (30,808.00) 6.69200 (24116.007) 6307,$08 00 11112001 (13,713.001) 6,152.00 (7,521 40) 544,521 DO 81112001 (7,845.00) 12,574 00 4.72900 552,366.00 111120702 (8,133.00) 12,574.007 4,435.40 5603,505.DO 81112002 (21,019.00) 12.007 (21,007 DO) 581,52400 1012003 (21, 807.00) 000 J21.807 DO) 603, 331.00 81112003 (20,063.00) 2.56200 (17,501.003) 623,394.00 11112004 (20,815.00) 2,562.00 X18,253.001 644,209.00 W1 (20,401.00) 3,757.00 (16,644.130) 664,610 00 11112005 (21,166.40) 3,757.x0 (17,409 00) 655,776 DO 81112005 (20,599.00) 5,118.00 (15.4810}0) 7D6,375.D0 11112006 (21,371.00) 5.11600 (16,253.00) 727,746.D0 W-1 W06 (20522.00) 5,768.00 (13,754.00) 748,268.00 111J2007 (21,292.0031 5,766.DO (14,524.00) 769,560 00 81112007 (20,221.1)D) 8,63700 (11,59400) 789,781 DO 1J25i2006 (20,981.0071 8.63600 (12,345.007) 8107,762 DO &112008 �3,175.00:j 27,228.00] 24.053.00 813.937 00 11912009 29,697.00 126,295.00) 4,227.130 4,22730 840,232 00 SM2009 31,728.16 131,508.70) 6,055 34 0,0756.34 871,740 70 11112010 31,728 15 02,690 2€) 28.55534 28.5%34 904AX 98 80120103 32,032 69 133,916 16) -28.82942 28,829 42 938,347 14 11112011 32,43269 125;168.02) 28,82942 28.82942 973,53516 811120711 28,491.1-f 1 ,507,57) 25,541155 25,842.05 1.0 10,042.72 11112012 28,491 17 137,876 60) 2 ,542 05 25.642-05 1,047,91933 1151117012 29,335 51 t39,296.8r) 28,404 66 26,40466 1,087,215 30 11112013 29,338 51 14D,770-61) 26,404 66 26,40466 1.127.986 91 8Y112013 28.241-30 (42,299.61) 25,417 17 25,417 17 1,170,286 42 11112014 28,241.30 143,885.74 25,41717 25, 417.17 1.214.172.15 61112014 29227-51 149, 531.46) 26, 304.7 5 26.304.75 1.259.70362 "2015 015 P,227 51 CA7,238.89) 26,304 75 26,3074 75 1,346 942 50 811M15 23.25$07 149 010.34) 20,93226 20,9-3226 1,355 952 85 1112016 23,255.07 (60 848,23) 20,9 32 26 20,932 26 1,406.8031 08 811 fZ016 22.121 46 [52.755.04} 19.909-31 19.90931 1,459.556 12 V1124117 _22121.46 ( 1:733.15) 19,90931 19,90931 1,57428947 5/112017 20 462 35 (%785-86) 18 416 12 19 41 2 1.571 075.33 11112018 20 462.35 (56.915.32) 18.416.12 ,418.12 1,629.990.65 51112018 20.462,35 (61.124.65) 1 B 416.12 1,691 115.30 1(7(2019 207.412.35 (63.416.82) 18.416.12 18.416.12 1,754,53213 EVV2019 20.462.35 (65 794.95) 18.416.12 18.416.12- 1,520,32708 1(1/2020 20.462.55 168.282.271 18.416.12 18416.12- 1.588.5B935 Landmark Square Phase Pay-as-you-go blalance DistrICt: 225 ---- Payment to: �La cmi Motel Ino {fo erly Master's Fifth Avenue) Description: TIF 1 • per- or 2nd 112 Onginal Amount 185,000.00 213-46595-465110 Interest Rate 8.000% Payments 4mmer}ce 811103 Ending no later Than 211/23 Available TIP 90-00 PID 155,010,036130 & 155.010.036140 Skate assessed fee 0.0036 Increment Total Balance Date Received Principal Interest Payment Remaining 81112003 0.00 185.000.00 11112044 0.00 185,000-00 51112004 3,065.00 3.085.00 185,000.00 11112005 3,084.00 3,084.00 185,000.00 5!112005 6.393,00 5.393.04 185,000.00 11112006 6.393.00 6.393.Q0 185,000.00 81112008 6.530.00 6.83000 185,000.00 1/V2007 6.830.00 6.830.00 185.000.00 89112007 90.00 7,400.00 7,49000 184,910.04 1128120013 9400 7,395.04 7,490.00 184,615.00 81112008 5.10600 5,105.00 184,815.04 119(2009 6.332 00 6,698.60 5,698.80 184,816.00 Sl?12009 6,30490 5,674,41 5,674.41 184.818 00 11192010 6,304.90 5,874-41 5,574.41 184.316.00 81112010 6,26502 5.539.42 5,639.42 184.516 00 11112011 8,266.02 5,639.42 5,539.42 184,816.00 81112Dt1 5,568.11 5,101.30 5,101.30 184,81600 11112012 5,66811 5.101.30 5,101.30 184,816.00 8111 012 5.835 67 5.252.10 5.252 10 184,816-00 11112013 5.835.67 5.262.10 5.25210 184,816.190 81112413 561776 5.055 98 5,055.98 184,816.00 111120t4 .5.617 76 5 065 98 5,05596 184,816,00 89112014 5.978 59 5,350 T2 5,380.72 184,816.00 11112015 5,978 58 5,380.72 5,380.72 164.815.40 81112015 4,895.75 4,40s .8 4,409.78 184,81600 11112016 4.89975 4 409 78 4.409.78 184,816 00 81?x2015 4,962.46 4,466.21 4,466.21 184,81600 111!2017 4.9,62.46 4.46621 4,466.21 154.816 00 $1'112017 4,837.10 4.335-39 4.335.39 294,616.00 VU2016 4,817.10 9,33 39 4.335 39> rta4,836.40 811120/6 4.517-10 4.33539 39 184.616.00 11112019 4,817.10 4.335.39 4.33539 184,816.OD $1112019 4.81.7.10 4,335.39 4,335.39 184,815.00 11112620 4.81710 4,335.39 4,335.29 184.816.00 81112020 4.51710 4,335.39 4,335.39 184.816.00 11112021 4,817.10 4,335.39 4,335.39 184.816-00 81112021 4,817 10 4,335.39 4,335.39 134,816 DO '11112022 4,817.10 4,335,39 4,335-39 154,816.00 81192022 4,817.10 4,335-39 4.335.39 184,816.00 11112023 4,817,10 4.335.39 4.335-39 1a4,816.a0 Accounts Payable Transactions by Account User: Julie.Cheneye Printed: 12/14/2017 - 10:35AM Batch: 00201.12.2017 Account Number JT1� OF f iflo UC iz Vendor Description GL Date Check No Amount PO No 213-46301-433100 US BANK CORPORATE PMT SYS Allied Parking - Parking @ Greater M 12/06/2017 0 10.00 Vendor Subtotal for Dept: 46301 10.00 213-46301-438200 CITY OF MONTICELLO 7256-003 - 349 Broadway W 12/06/2017 0 13.66 Vendor Subtotal for Dept: 46301 13.66 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Oct Lunch (JT) 12/06/2017 0 15.00 213-46301-443990 US BANK CORPORATE PMT SYS Live Laugh Bloom - Flowers for IED( 12/06/2017 0 276.00 213-46301-443990 US BANK CORPORATE PMT SYS Target - Food for 11/8 EDA Meeting 12/06/2017 0 29.99 Vendor Subtotal for Dept: 46301 320.99 Subtotal for Fund: 213 344.65 The preceding list of bills payable was reviewed and approved for payment. Report Total: 344.65 Date: 1/10/2018 Approved by Steve Johnson - Treasurer AP-Transactions by Account (12/14/2017 - 10:35 AM) Page 1 Vendor Date ofTransaotion CITY OF MONTICELLO City Hall Carol Transaction Please attach the invoice/receipt and any other availahle documentation to this form. To be completed by purchaser. AmountrIM Circle purchaser name; Tracy Ergen Vicki Leerhoff Rachel Leonard Jeff O'Neill Wayne Oberg Sarah Rathlisberger Jennifer Schreiber Angela Schumann aM�re�s urian er frrrtp yee Signa e` Supervisor S -t 2p I ^ - Date approved Special ProJect # or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41840 101-41910 101-41920 1044 213-45500 213-46301 Circle expense code: City Council Administration ElE�rtion.5 Finance Human 8,�2saurces Planning and Zoning Data Processing City Hall Economic Developrne H 421990 General Operating Supplies 431950 Newsletter Services 431990 MiscellaneGus prof Services 432200 _ _ _ Posta 0 ravelj7rainir�g Expense �- 4433Q0 ues Membership u s rnp 443700 Licenses and Permits 443990 Misc. Other Expense Other � » |2 § z � LLI � 7\� 7 }§ a $Rƒ LU o 2\Q � § _ | £ \ f |2 § z ■� 7\� }§ a $Rƒ �\ 2\Q ■ z § © | £ \ f Jim Thanes From, judy.johnson@greatermsp,org Sent; Tuesday, October 31, 2017 8:59 A To: t+m Thares Subject: Confirmatinrw, GREATER MSP 2017 Annual Meeting - Ordway Theater Registration Confirmation Your regi$tration for GREATER MSP 2017 Annual Meeting - Didway Theater has been received_ Confirmation Number. e,9Q57_8_ ta66t Primary Contact: Jim Thares Billing Status: No Charge Add to Calendar Edit RegistraliQ Summary Item Description [Quantlityl Total Aural Total. 50.00 PAID GREATER MSP 2017 Annual Meeting - Ordway Theater J om your pawners of 13 R EATER M ISP as we discuss now to dfive cur fegian s wonom c prvspEPnty ill the future Featured speakers ON octude Rirhard a$vl& Michael Langley and olnef speakers whin swill d emonshrzie Mal by warkmg together, we can a otrieve great r9sults for the re,gilo - As tt,e woric grows increasingly faMur and more compll"ed. partnetsNp becomes our patty to the Uore TogWher e vAll drive to a GREATER MSP We are pleased to welcome the Saint Poul Chamber Orchestra as they perform at GREATER MS P's Annual Meeting. Thank you to our sponsors! Program Sponsor: ECOLAB"" Hospitality Sponsors: TRAVELERS <*: HealthPartners• Entertainment Sponsor- THE SAINT PAUL CHAMBER ORCHESTRA Dale: November 13, 2017 Time. 05:30 PM - 48:00 PM CST Location; The Ordway Theater - Concarl Hall 345 Washington Street Saint Paul, MN 55102 The Ordway is Iooaled downtown Saint Paul dire ly across from Rlae Park. Thera are numerous perking ramps within easy walk Ing dlsUwoa- The doses( ramps are Ri varCr nlrt, Srrenoe Museurn, 0wsan Commons, Kell oQa Street Rama, Landmark Towers, and Travelers Insuranre- There is no direct skyway conri gn 14 the Ordway, bul it you are coming t raigh the RiverCentre you can get very close to Ordwway's from doar- Contact, Judy Johnson, Vireotor of Investor Relations, 651-297-13.62 Small: ivavaothnsorjAaFeatelnlj$F Q!9 Da'ti Mims Details: 5.30 p.m. - Ragksifawn OpenE 6.04 to 7:00 p.m. - Formal Program 7.00 to 8.01} p.m. - Networking Reception with CpmpJlmenlary Hprs p"aeuvteS and Bar Serwoe FaoslAdmtssiorl: There Is no fee to attend this event Thank you to GREATER M$P'S ganerous IriweSlons af�d Sponsors for prDv+ng ihelr suppe+j to V%e portnemhip and Annual Meelrng- o here iDr MQrE Inturmatlon Aga to lerraar Thank you, Greater MSP Jain your partners of G BEATER MSP as we discuss how to drive our region's namic prosperity in the future. Featured speake€s will include R ichard Davis. Michael Langley and others who will demonstrate that In working together, we can achieve great results for the region. As the world grows increasingly faster and more complicated, partnership becomes our path to the future. Together we will drive to a GREATER IVISP. We are pleased to welcome the Saint Paul Chamber Orchestra as they perform at GREATER IVSP'�s Annual Meeting, Jim Thares From: GREATER RASP <info greatermsp.org> Sent: Tuesday. October 31, 2017 8-07 AM To: Jim Thares Subject: GREATER MSP 2017 Annul Meeting GREATER MSP Minneapolis Saint Paul Regional Economic Development Partnership 2017 G 1 ER MSP ANNUAL MEETING November 13, 2017 Jim Thares From; Judy .Johnson v greatermsp.org Sent- Friday, November 10r 2017 11:15 AM To, Arn Thares Subject. Reminder For upcoming event; GREATER MSP 2017 Annual Meeting - Ordway Theater GREATER MSP 2017 Annual Meeting - Ordway Theater * Date; November 13, 2017 5:30 P - 8:00 P Acid to Calendar + Location, The Ordway Theater - Concert Hail 345 Washington Street Saint Paul, MN 55102 The Ordway is located downtown Saint Paul directiy across From Rice Park. There am numerous parking ramps within easy walking distance. The closest ramps are Riverentre, Science Museum, Lawson Conimons, Keliu a Street R amp, Lap dMArk Towers, and Travelers Insurance. There is no direct skyway connection to the Ordway, but if you are coming through the Ri vcrC. entre you can get very close to Ordway's from door. Contact: Judy Johnson, Director of trrvestoT Relations, 651-287-1362 M Email: iudy.jnhnson eatermsp,or • Dategime: 5:30 p.m. -114stration Opms 6:00 to 7:00 p.m. - Formal Program 7:00 to 8:00 p.m, - Networking Reception with Complimentary Hors D'oeuvres and Bar Service Admission: There is no fee to attend this event. Thank you to GREATER MSP's generous Inveqtom and Sponsors for proving their support to the partnership and ArtrtuaI Meeting. Join your partners of GREATER MSP as w a discuss how to drive our region?s economic prosperity in the future. Featured speakers will include Richard Davis, Michael Luigiey and other speakers who wi I1 sier onstrate #hat by working together, we can achieuc great results Cor the region. As the world grows increasingly faster and more complicated, paAnership becAjmv,, OUT path to the future, Together we will drive to a GREATER MSP. We are pleased to welcome the Saint Paul Chamber Orchestra as they perform at GREATER MSP's Annual Meeting. Thank you to our sponsors1 Program Sponsor; Hos ita I ity Sponsors'. f�I ___ -._. -. Entertainment Sponsor: Debbie Davidson From: noreply@merchanttransact.com Sent: Tuesday, November 7, 2017 8:44 AM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 111171NSERTS.pdf City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading Serial 53321062 Current Charges 007256-003 MONTICELLO EDA (213-46301) 349 BROADWAY W 10/1/2017 to 10/31/2017 (31 days) 11/6/2017 12/1/2017 Previous Reading Current Reading Date Reading Date Reading 8/8/2012 188496 11/1/2017 188496 Water: Water: CITY WATER - NON-TXBL Water: ACH Credit - Auto Pay Water: E -Bill Credit Sewer: SEWER - COM/MONTHLY Sewer: SW DISCHRG FEE - COM MONTHLY 2% Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 12/1/2017 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Cons 0 $0.00 $6.45 ($0.50) ($0.50) $8.05 $0.16 $13.66 $0.00 $0.00 $0.00 $13.66 $13.66 Dv --We Davidson Jolie nor�ey Vendor Daze of Transaction i CITY OF MONTR ELLO Ghost Card Transaction Site/ receipt and any other available documentatlnn to this form. -ur€Maser; 6D— Expense Code e -P (,-t�. 4 Cq�. Monticello Chamber of Commerce PO Box 192 205 Pine Street Monticello MN 55362 1:1111M1117 Accounts payable Monticello City of 545 Walnut Street Suite #1 Monticello, MN 55362 Descnption 2017 Chamber Lunch - October 17,MC'C- {lien 77fares) "w -k yap F" yow corwrwiO"4-t to the ffo-t"fo Cs„r..bsr df & kAm". 7'h9 M4 ties& Charn&rr rareo, #hts the kueoets of bwsfn4n A..d sa.vss W str"ttian 6AEf &sses and stin.ufatt Ftgio d rUraspeerry. MantieeNa CAWber is y,raL d to esrve AS tlu "jro,t gaoe to our fi. tow�,Tq. 77w e+wi"jr is r nsaurrr For b�ingum rreidents and ws.tm alikx. prwLdirq i.dpr tio- IrLd i.wgat abgat the wren, enavanos—g ee8—ie ANd e6J4W4 FdtV gMWbK Ih aJdrtian enii'4ciaktieafh� wcica.x„"� r�Fit�+S #0 the AreA Date Invoice 0 10/3112017 11126a Due Date 1111512417 Amount 15.0) TOW S 15,Q0 763-295-2744 marry@ monticellocci-corn http://www.monticellocci.com Julie Chene From: Jim Thares Sent: Monday, November 6, 2017 8;33 A To: Julie Cheney Subject RE; Monticello Chamber Inv $15.00 Julie; this is okay to pay. Please code to; 213-46301,443990 From: Julia Cheney Sent: Friday, November 03, 2017 3;45 PM To: Jim Thares Subject: Monticello Chamber Inv $15.00 Jim Attached is Inv# 11125a from the Monticello Chamber of Commerce for the October lunch. Okay to pay $15.00? Please provide coding. Thanks! �`ir�L' il�'Li Finance Assistant City of Monticello 763-271-3205 Jul ie,Cltiency ci,rnontaoeilo_mn.us A P@ ci.mon ticeIIg. mn. u5 �If T 1 +i ]: mo �] 1 �efl Ernil cor mspondence to and from the City of Aont cello govermmnt offices is subject to the Minnesota 6overnment Data Practices Act and may be disclosed to third pantries, Julie Cheney From: Monticello Chamber of Com Merce < replyTo @ intuit-corn > Sent: Monday, November 13, 2017 3-06 PM To: AP Subject: RECEIPT for Invoice 11126a from Monticello Chamber of Commerce Attachments: Inv_111264_frorn_ Monticello_Chamber_of Commerce_15208_pdf Dear Accounts Payable ; Your receipt for your paid invoice is attached. WV sincerely thank you for your commitment to the Monticello Chamber and our events/activities. We look forward to providing you additional benefits that can help your business prosper. Sincerely, Marcy Anderson Monticello Chamber of Commerce 763-295-2700 To view your invoice Open the attached PDF file. You musk have Acrob9itck,Rg5jder installed to view the attachment, I Monticello tvhamber of Comrnme PO Box 192. 205 Pine Street Monticello MN 55362 Date Invoice # Evill To - OW 107+31 x'2017 11 126a ,'. Accounts Payable Monticello City of 505 Walnut Street Suite #1 Monticello, MN 55362 Dewotiion 2017 C Nasser I_unrh - Octobcr 17 -.MCC {J im Thant) _ 77wnk qwu foe 9ftr C"mmitment 89 the h mtn pwq. C4�unbrr of C&r fired # Jnduavy- Yhw wnlicgb L "ffmwts t7�s I-t#r'"L A bwincse Ar'd serves to 4reMgt6e„ "f.—MW and AEMWate Mgie+.a7 ff43jp n%� MomiceW [Yww,bCr K pro --d to i/rw aS th■ "Aron[ daoY' to aur Fy g C*—Vm iV Tkt tl�bmr is n re Poi �4dihdx S, &1d ✓aLPVF dikf, jF/9Vidiry in&o I.dM e.d i.$Let dO.0 04 4.4M, tncowrwginy ec Ani &o Wmicy growtF in addaGAA to 4-d.,U AwCwry w4ko yrul wiskan to t1'C IVCA Due Date 11/1512017 Total $15.00 763-295-2700 marcy rnonticellocd.com http./Iwvww.menticeIlocci.corn CITY OF MONTICEU0 City HaII Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser. Lir y Amount Circle purrhaser name: Jeff O'Neill Kerry Burn An ela 5 humane Vicki Leero Wayne Oberg Sarah Rath HY,berger Jennifer Schreiner Jird Thares Employee Signature Nte appmved SpedaI Project 9 or Description 1 i Circle department code: 101-41110 101-41310 101-X11410 101-41520 101-41900 101-41910 101-41920 101-41940 213-46500 213-46301 Circle expense code: 421990 431950 431990 432200 433100 443300 443700 443490 Other City Council Administration Elec#ions Firxance Human Resources Planning and Zoning Data Processing City Nall Economic Development HAA General Operating 5 applies Ne stetter Services Miscelfaneous Prof SEn+ices Postage TravetlTraining Expense Dues MernbershiP & 5udscrip Lice rRset and Permits Misc. Other Expense LIVE LAUGH BLOOM 108 CrEDAR ST. MONTICELLO, MN 55362 763.314-0552 SOLD TO. City of Monticello RNA ACCT. NO; COM PAYMENT- tiouselHousa CLERK; Kelly Lilllback COPY No, 6 INVOICE DELIVERY DATE: Tue, 1010312017 DELIVERY 71M E: After Noon DELIVERED TO. Mississippi Room MCC 6th St MONTICELLO. MN 55362 ORDER NO: 030156/1 CROER DATE: S J2017 8:20AM WMEREIDUY- VidKi PRINTED, 1112 017 10-09ANt PRODDCT ARC - Canterrp:eoe S" 0vs1/t=urxd, fa look with mum's anci aistro, leaven, CARDIOCCASION Other no ORDER NOTES CREDIT CARD INEORMATI0N ORDe NO: Mississippi Room 0301 sail of 1 DELkVERY ZONE' MCC Monticello 6th St City MONTICELLO, MN 55362 5 AMOUNT REMITTED DELIVERY DATE: Tue, 1010312017 DELIVERY TIME= Faker Naan ❑UANTTTf: PRJC, AUT I DISCOLW47 I EXtENDS!) 12 1 23.00 1 1 278-90 SUI-TOTAi. Sales Tax TOTAL DEUVERYDALTE: Tue, 1010312017 After Nooll.by Spm Tue, 10103/2017 LIVE LAUGM BLOOM COPY N0-5 RECEIVED BY 276. 0. Vendor Date orTransaction CITY OI' MONTICELLO City Hall Card Transaction Please attach the invoicalreceipt and any other available documentation to this farm_ To be completed by purchaser: 'C Amount Circle purchaser name: Tra y -fig icki Le.erhof , Rar,ertlean r Jeff O'Neill Wayne Obetg Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Jacob Thunander :.+ Date approveo SpLatial Prajeet It or description Circle department code: 101-41110 Circle City Council 101-41310 Administration 101-41410 Elections 101-41520 Finance 101-41800 Human Resources 101-41910 Planning and Zoning 101-41920 Data Processing 13-46500 Economic D 213 - 13 - Circle expense code: 421990 Gener�il Operating Supplies 431950 Newsletter Services 431990 Miscellaneous prof Services 432200 Postage 413100 Travel Training Expense 443304 Dues Mem bersNp & 50s€rip n5 rnits 4990 Miss. Otftier Experts Other G)TARGET MONTICELLO - 763-171-1100 11/08/2017 03:09 PH E01RES 02106x' l,� �Illq II I I I Igll I I In �� g l l l l GROCERY ;'1t3i341UU` AF APPETIZER FN $29.419 SUBTOTAL $29,99 NO TAX $0J0 TOTAL $29.99 *7045 VISA CHARGE $29,99 AID: A0000000031010 VISA CREDIT RFS 02-7312-2180-0086-1517-1 VCD#750--25'a (14,1 EF�eedbiack? foe ut, i* I Help make your Target Faun better. Idke a 2 minute survev ahuut today`s tr.iu= ! or'lllt�`g�t.001A User 768 782 0991 Password= 384 829 CUENI EN05 EN BRAWL Please take thi, ,wvev within 7 clays. Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 01/02/2018 - 10:39AM Batch: 00215.12.2017 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46522-438100 XCEL ENERGY ZCULPS-EXPENS - 51-0623082-8 -1 12/31/2017 0 16.60 Vendor Subtotal for Dept:46522 16.60 The preceding list of bills payable was reviewed and approved for payment. Date: 1/10/2018 Approved by Steve Johnson - Treasurer Subtotal for Fund: 213 16.60 Report Total: 16.60 AP -Transactions by Account (01/02/2018 - 10:39 AM) Page 1 Xcel Energy& RESPONSIBLE BY NATURE® YOUR MONTHLY ELECTRICITY USAGE N D J F M A M J J A S 0 N DAILY AVERAGES Last Year Temperature 48° F Electricity kWh 0.2 Electricity Cost $0.62 NORTHEBN STATES POWER COMPANY Page 1 of 6 SERVICE ADDRESS ACCOUNT NUMBER MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362-9356 51-0623082-8;$16.60 /30/2017 STATEMENT NUMBER STATEMENT DATE 7 567831372 11/01/2017 12 SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Electricity Service Non -Recurring Cha Current Charges ACCOUNT BALANCE Previous Balance Payment Received Balance Forward Current Charges 10/02/17 -10/31/17 7 kWh / Credits As of 10/02 Auto Pay 10/30 $17.29 -$0.69 CR $16.60 $18.00 -$18.00 CR M $0.00 $16.60 0 0 QUESTIONS ABOUT YOUR BILL? Amount Due $16.60 See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com INFORMATION ABOUT YOUR BILL Please Call: 1-800-481-4700 Thank you for your payment. r• Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 EAU CLAIRE WI 54702-0008 RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS ■/, ® ACCOUNT NUMBER DUE DATE r r r ENCLOSED Xcei Energy 51-0623082-8 11/30/2017 $16.60 Automated Bank Payment 31 51113017 06230828 0000000166000000001660 You rbill ispaidthrough anautomatedbankpaymentplan. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ------ manifest line --------- 19 20 21 22 23 24 25 I"I1III- IIIIIIIIIIII-III-IIIII--IIIIII-III'IIIIII' III ' 26 27 28 29 I MONTICELLO EDA 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 I..I�III"'I''�I'lllllll�ll�l'II�'lll�l��ll�lll�l�l'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 31 51113017 06230828 0000000166000000001660 Xcel Energy MAKING OUR COMMUNITIES A BETTER PLACE? E DILUNTEER! Charity is important. but to truly impirove a comrTmonlity, we believe you need to be a living, breathing part of it. That's why we're dedicated to give back by volunteering for the many great nonprofits in our communities. Learn more, visit xcolenorgy_com! Corpo rate Respo nsibi lit y. Page 2 of 6 SERVICE ADDRESS ACCOUNT NUMBER=1/30/2017: MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362-9356 51-0623082-8 STATEMENT NUMBER STATEMENT DATE 43179 Actual 567831372 11/01/2017 $16.60 SERVICE ADDRESS: 349 W BROADWAY ST MONTICELLO, MN 55362-9356 NEXT READ DATE: 12/05/17 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303657358 INVOICE NUMBER: 0696418062 INFORMATIONMETER READING METER 52995965 Read Dates: 10/02/17 -10/31/17 (29 Days) DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Delivered by Xcel 43186 Actual 43179 Actual 7 kWh ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 7 kWh $0.079650 $0.56 Fuel Cost Charge 7 kWh $0.024950 $0.17 Decoupling Adj 7 kWh -$0.000291 $0.00 Affordability Chrg $0.97 Resource Adjustment $0.09 Subtotal $11.79 City Fees $5.50 Total $17.29 NON-RECURRING CHARGES/ CREDITS DETAILS DESCRIPTION CHARGE Elec Interim Refund CR Premise # 303657358 $0.69 CR Total - $0.69 CR BUILDING A FOUNDATION STARTS WITH BUILDINGS AND FOUNDATIONS. We know a strong community needs to be built from the ground up. We work with nonprofit organizations, aoij invest in areas like STEM education and environmental stewardship to create communities that have the power to make tberrrseIves better. ALWArs defrVeting. Xcel Energy DEEP AN EIDE OUT FOR SCAMS AND SHADY PHONE CALLS. If someone calls threatening to turn off your power due to an unpaid balance, and asks you to pay with a prepaid or reloadable card, Bang up the phone Immediately. And if someone comes by claiming to be us, be sure to ask for identification. Call us any#ime at 800,89 5.4999, Page 3 of 6 SERVICE ADDRESS ACCOUNT NUMBER i 1 A MONTICELLO EDA 349 W BROADWAY ST MONTICELLO, MN 55362-9356 51-0623082-8 11/30/2017 STATEMENT NUMBER STATEMENT DATE 567831372 11/01/2017 $16.60 INFORMATION ABOUT YOUR BILL Your electric bill this month includes a refund, with interest. Part of the refund is for the difference between what you paid under interim rates and final approved rates in the recent rate case. Other portions are for certain 2016 capital project timing changes and for our use of a deferred tax asset. Your refund is shown on your bill as "Elec Interim Refund CR". For an average non -demand customer, 69% of your bill refers to power plant costs, 14% to high voltage line costs, and 17% to the cost of local wires connected to your M business. For an average demand customer, 79% of your total bill refers to power o plant costs, 13% to high voltage lines, and 8% to the cost of local wires connected to 0 your business THE SUN CAN BE THE MOST PRODUCTIVE MEMBER OF THE FAMILY BUSINESS. cp The sun is pretty darn povverful_ Use it. Open window _0ades and curtains during the day t0 hoat yQuf husini�ss with Sunlight. At dusk, close the shades and curtains to keep in the heat_ ALWAYS deflVefing, IA XcelEnergyp NESPONRIYLE IT NATURE• i OP 4A f it r i -.Maolow Boost savings with variable frequency drives (VFDs) � VFDs are used across a wide range of commefciall applications to increase the efficiency of VFD rebates motor -driven systerns- If you're interested in incorporating this en r:rgy•saving tr:chnology I n your HVAC system of industrial fans and pumps, keep in mind That we offer rjenefous rebate IE?vE?ls rebates from $400 to $8,000 per VFD, depending on horsepower- 1 $400 1.5 _ 400 $ $440 Industfies that can benefit from VFDs include_ - Agricultu re/if rigat ion - Hotels 3 $400 - Cold storage - Municipal water supply moo #750 * Food processing * Schools and universities 10 10 $1.400 • Grocefy stares e And many more 15 $1.250 * Hospitals 2u $1.Doa 25 $2,000 0 VFDs can also help extend the life of your motor equipment, reduce noise, and improve 30 $2.400 0 process control. 40 PRO 50 $3,50 Take advantage of our rebates to lower your up -front costs and set up energy savings X4,000 for the long term. You have 24 months from the in nice dare of the equipment purchased 7 $5.000 to submit your rebate application. Visit xeeIenergy.comlMoto rEfficiency for rules W 100 sa 000 0 and program requirements. 125 $7,000 150 $i3OU0 200 $8,000 IA EDA: 01/10/18 5d. Consideration to authorize entering into a Acquisition and Relocation Services Retainer Agreement with Wilson Development (JT) A. REFERENCE AND BACKGROUND: Staff is asking the EDA to consider entering into a Acquisition and Relocation Services Retainer Agreement with Wilson Development, Chaska, MN. The proposed agreement will allow staff to consult with Wilson Development as the need arises related to property acquisitions and potential tenant displacement and relocation situations. The complexity of the relocation statutes (Federal and State) is a concern for any public entity acquiring property and/or supporting community redevelopment efforts. By utilizing a firm that specializes in the business of providing relocation assistance services, the EDA can be confident that the required Uniform Relocation and Assistance Act (URAA) steps are being followed. Al. STAFF IMPACT: There are minimal staff impacts in considering the Relocation Services Retainer Agreement with Wilson Development. Relocation assistance requirements can be time consuming and daunting. In contracting with Wilson Development, it will allow staff to access the expertise and experience of a firm that specializes in relocation services on an on-call basis, and thereby ensure that the EDA is receiving good guidance and meeting the requirements of any applicable Federal and State laws. A2. BUDGET IMPACT: The expected budgetary impact from considering entering into a Acquisition and Relocation Services Retainer Agreement with Wilson Development is expected to be completely dependent on and related to the EDA's property acquisition activities. Since the proposed agreement is ongoing, the EDA will only be billed for actual time spent by Wilson Development providing services to the EDA. The funding required to cover this proposed expenditure is included in the 2018 EDA redevelopment activities line item budget. In the event a potential property acquisition that portends significant relocation impacts, a project -specific RFP can be issued to obtain the best economical services. B. ALTERNATIVE ACTIONS: 1. Motion to authorize entering into a Relocation Services Retainer Agreement with Wilson Development. 2. Motion to deny authorization to enter into a Relocation Services Retainer Agreement with Wilson Development. 3. Motion to table consideration of entering into a Relocation Services Retainer Agreement with Wilson Development for further review and discussion. 4. Motion of other. 1 EDA: 01/10/18 C. STAFF RECOMMENDATION: Staff recommends alternative 1. The EDA has prior experience in working with Wilson Development for downtown relocation projects. Entering into the Retainer Agreement will benefit staff and the EDA by allowing ready access to a firm that specializes in relocation services. Wilson Development's skill and expertise will ensure that appropriate relocation steps and processes are being completed in accordance with the Federal and State relocation laws. D. SUPPORTING DATA: a. Wilson Development Relocation Services Retainer Proposal N January January 4, 2018 Jim Thares IL Oh DEVELOPMENT SERVICES LLC Economic Development Director City of Monticello Re: Acquisition and Relocation Consultant Proposal On -Call Retainer Dear Mr. Thares: OFFICE 952.448.4630 800.448.4630 FAX 952.448.4676 510 N. CHESTNUT STREET SUITE 200 CHASKA, MINNESOTA 55318 WWW. WILSONDEVELOPMENTSERVICES.COM We are submitting the following proposal upon your request, for Wilson Development Services, LLC, to be available to the City of Monticello staff and its representatives (attorneys) to be able to make inquiries of us regarding Uniform Act acquisition and relocation matters, interpretations, and possible application to certain specific circumstances in Monticello, past and present. This is a time and materials actual cost proposal. We will only charge for those services specifically requested of us. There would be no additional monthly flat fee for such a service. 2018 Charge Rate Schedule: Dan Wilson Associates Office Manager Mileage Copies Postage/Other We will provide detailed, monthly invoices. Sincerely, WILS 7DEVELOPMENT SERVICES, LLC Dan Wilson DW/sh $150.00/hr. $120-$135.00/hr. $95.00/hr. IRS Rate $0.20 each Actual Cost EDA Agenda: 01/10/18 6. Consideration of 2018 EDA Workplan (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider adoption of the proposed 2018 EDA Workplan. Attached to this report is the proposed 2018 Workplan, the City's Strategic Goals and Objectives (compiled in 2017), the summary of the recent Downtown Small Area Study Implementation Workshop, the priority ranking of downtown implementation tasks - activities and a 2018 Workplan Worksheet. Staff is asking the EDA members to discuss the Workplan during the meeting and if comfortable, adopt the plan as is or with revisions. Al. Staff Impact: Preparation of the 2018 EDA Workplan required a fair amount of staff time of the Community Development Director and the Economic Development Manager. A2. Budget Impact: The review and editing tasks are included in the job descriptions of both of the EDA support staff and as such the costs are part of the EDA's routine operating expenditures. ALTERNATIVE ACTIONS: 1. Motion to adopt the 2018 EDA Workplan as presented. 2. Motion to adopt the 2018 EDA Workplan with revisions identified by the EDA. 3. Motion to table the adoption of the 2018 EDA Workplan for further research and discussion. B. STAFF RECOMMENDATION: If the EDA feels the 2018 Workplan is complete and meets their approval, then Alternative #1 is appropriate. If the EDA feels that the 2018 Workplan needs to revised, then either Alternative #2 or #3 is appropriate. C. SUPPORTING DATA: A. 2018 EDA Workplan B. 2017 City of Monticello Strategic Plan Goals C. Downtown Small Area Study Implementation Workshop Summary D. Small Area Study Prioritization Exercise E. 2018 Workplan Worksheet ECONOMIC DEVELOPMENT AUTHORITY 2018 ANNUAL ECONOMIC DEVELOPMENT WORK PLAN EDA Purpose: The EDA is charged with coordinating and administering the City of Monticello's economic development and redevelopment plans and programs. The EDA is also responsible for housing and housing redevelopment. EDA Work Plan Mission Statement: The EDA's work plan is adopted in support of achieving the goals of the Monticello Comprehensive Plan and the 2017/2018 City Strategic Plan. The EDA will be proactive by developing and undertaking actions for achievement of the Comprehensive Plan's Economic Development goals and will be reactive in responding to economic development opportunities as they arise in the most timely and effective manner possible. The EDA shall utilize the economic development strategies of the Comprehensive Plan, including the Downtown Small Area Plan as a guide for action. Comprehensive Plan Goals: Attracting & Retaining Jobs Expanding Tax Base Enhancing Downtown Facilitating Redevelopment Housing Choice for Life -Cycle EDA Objectives: 1. Continue to support redevelopment efforts for publicly -owned properties on Block 52. a. Focus on site control for targeted redevelopment area on the block b. Evaluate the opportunities for the future sale of properties on Block 52 and the value of engaging a partner to expedite redevelopment on Block 52. c. Support as needed the completion of transportation improvements as envisioned in the Downtown Small Area Study Plan. 2. Implement the recommendations of the Downtown Small Area Plan a. Support and advocate for improvements to the downtown as envisioned in the Small Area Plan b. Develop and support the appropriate policies, programs, and incentives that enable the type of development described in the Plan c. Continue to build a funding base for use in property acquisition and redevelopment efforts in targeted areas. d. Implement a fagade improvement program for desired revitalization areas. e. Meet with downtown property owners individually to understand their situation in terms of willingness to sell, partner, price, etc. f. Support opportunities for park and trail development as consistent with the Downtown Small Area Plan. 3. Engage as a partner in other redevelopment and revitalization opportunities as they arise, actively encouraging redevelopment within the Downtown. a. Fund studies that provide policy and strategy framework for desired land uses/or projects in the downtown and for other programs. b. Continue discussion on use of tax reimbursement/abatement, including development of criteria. 4. Support new multi -family housing development through the use of financing tools such as excess TIF dollars in TIF 1-6, TIF 1-22 and per adopted Policy Statement for Available TIF Funds. a. Develop marketing packets illustrating financial tools and available sites. b. Dialogue with multi -family housing developers and inform them of available resources to support MF development. c. Sponsor a multi -family housing developer expo providing site and financial assistance information facilitating relationship building. 5. Market industrial development at the Monticello Business Center (Otter Creek Business Park) to a broad variety of prospects. a. As guided by the Comprehensive Plan, target the following prospect areas: i. Businesses which will be a supplier, customer or collaborative partner to existing businesses within the community. ii. Businesses which would benefit from Monticello's utility and communications infrastructure. iii. Work with the CentraCare Health System to ensure the retention and to promote the expansion of health care services in Monticello. b. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets. c. Actively participate/network with current businesses to help establish external relationships. 6. Market EDA incentive programs in a more proactive manner, both within the community and beyond, beginning with the education on these resources at the EDA level. a. Continue to foster external networking opportunities. b. Present existing and new incentive programs to smaller community groups, local banks, realtors, and local businesses. c. Develop and communicate a "complete" development package program which provides support and assistance to prospects and developers from inquiry to construction. d. Prepare a multi -format (print, digital) summary resource piece. e. Explore the opportunity to develop an incubator building or pre -designed building shell plans with contractors ready for development. 7. Actively (aggressively) market for sale for development the EDA -owned properties at Cedar Street and Outlot A. a. Identify types of businesses sought for specific properties and market to these sectors accordingly. b. Identify commercial properties which should be held for larger redevelopment potential. 8. Encourage more proactive lead development and response in all market segments to support a diversified tax base. a. Develop relationships with local realtors and banks. b. Explore agent/broker relationships; evaluate the opportunity to engage a development facilitator. c. Develop a list of target properties and share with realtors and bankers. d. Research and communicate state and federal incentive programs for bringing businesses into community. 9. Examine housing stock for aging or blighted properties and research development of programs for redevelopment and/or revitalization. a. Understand the state of the current housing stock/inventory and areas of need. b. Identify and prioritize potential programs, such as: i. Program for acquisition for redevelopment ii. Program for revitalization iii. Program to encourage new development in in -fill areas c. Utilize available housing TIF dollars per Policy Statements for Available TIF Funds d. Establish clear criteria for "blight" and "cluster areas" for focus of programs. e. Identify and communicate state and regional programs which could be leveraged to support identified properties; identify programs applicable to each property. 10. Support the development of an economic development brand and implement in economic development activities. a. Migrate website to City site for more thorough and current site maintenance. b. Work with Communications Manager to develop coordinated economic development marketing plan c. Build value in development resources. d. Market amenities (including technology and recreation) in a more coordinated way 11. Re-engage in business retention and expansion efforts. a. Continue to engage the IEDC as the primary partner and lead in a the Business Retention and Expansion Program. Appendix: Monticello Comprehensive Plan, 2008 — Economic Development r i ., R. ,rte^ • STRATEGIC GOALS & OBJECTIVES: DTE CREA& PRESE RVESUSTAINABLE LIVABILITY Livability is a little word with a big meaning; it includes everything that contributes to quality of life. We will implement a variety of ideas to create and preserve livability within our community. -a Work to attract and develop a healthy mix of housing options. -� Develop a Parks and Recreation Department and programs. Develop and maintain a community beautification program. Develop Monticello as a walkable and bikeable community. Remodel & expand the current fire station. Update the assessment policy for the City of Monticello. -� Select future management of the Waste Water Treatment Plant. 2O BUILD A CONNECTED COMMUNITY We want to harness the power of connection. We will build a community that is connected to history, connected to place, and connected to each other. We can accomplish this by connecting through engagement and technology. --4 Build a new website for enhanced citizen engagement and greater consolidation of information. -> Implement a Laserfiche Public Portal for easier public access to city records. 3 STR E NGTH E N 0 U R I MAG E AS A D ESTI NATI 01\1 Monticello already has amenities that attract visitors. We have beautiful parks, miles of pathways, a fabulous community center, and a thriving commercial economy. We will promote what's here and incorporate new features to strengthen our image as a destination. -� Use the Mississippi River as a destination resource -develop activities, events, and uses which create additional connections to the river. -> Prioritize capital improvements throughout the city to enhance resident & visitor experiences. -moi Continue to invest in facilities by establishing a preventative maintenance program for current assets. 4 U % If 0�PP K I A V 1 BrRAN I E �0N0` N V IY The vitality of a city is directly related to the health of its economy. We will support a strong, diverse economy in our community. Expand City/EDA owned industrial land inventory in targeted areas. Support development & redevelopment efforts for publicly owned property. (D B E A REG I0I)'AL L E A D E R Success isn't achievable alone. We will build and strengthen relationships with other cities and organizations. We strive to lead by example and offer innovative ideas to our partners. -� Continue to foster partnerships with adjacent communities for regional planning. Cooperate with Wright County on common projects, including: Fenning Ave, Intersection of CR 39 and Gillard Ave, Intersection of CR 39 and Hart Blvd, and trail connections. 6 1 II VEST I NP ECS P LE People are the heart of a community, and we will show our commitment by investing in them. We will work to meet the needs of citizens, and we will provide training and opportunities for staff to grow and utilize their talents here. —� Invest in technology to support the Human Resources Department in recruitment, selection, and performance management. -� Complete security adjustments to city buildings. -4 Invest in resources to prevent firefighter gear contamination. -> Initiate and complete a needs study for all city facilities to enhance citizen access and best use of space. -> Complete succession planning for city staff. Next Steps... • City departments will review their work plans to incorporate projects and tasks associated with the objectives identified through strategic planning. ® The strategic objectives and their associated projects will be discussed during the budget process for 2018. ® At the end of 2017, staff will review the year and identify progress made toward the strategic goals and objectives. ® At the beginning of 2018, City Council and staff will review the strategic planning document and make any necessary adjustments for the coming year. Ultimately, our strategic plan is dependent on the conditions and resources in our com- munity. Objectives may be added or removed throughout the year, but we'll make these changes using the framework provided by our mission, values, and goals. Together, these elements will guide us toward the future we envision for our community. CITY OF MonticeRo Have a question or commert? We'd love to hear from you! Monticello City Hall 753-295-2711 www.d.monticello.mn.us Monticello is continuously evolving. As a city, it's essential for us to periodically evaluate where we are, where we want to go, and determine the best way to get there. This year City Council and city staff participated in a strategic planning process linking our mission and values with our goals and priorities for the next several years. Strategic planning encourages us to prioritize, to examine ideas and possible projects, and to plan ahead. It offers a connection between the immediacy of a budget and the distance of a Comprehensive Plan that spans more than a decade into the future. It focuses on medium range projects that we can accomplish in the next 3 to 5 years. Our hope is this document is strong enough to provide unity and guidance but flexible enough to adjust to changing circumstances in our community. Stardng the process... Before identifying our goals and priorities, city staff wrote a mission statement for the City of Monticello. While most departments have individual mission statements guiding their work, staff wanted to create a shared mission that would highlight our unity and affirm our purpose in the community. We also identified the shared values that guide our actions as we execute our mission. The mission of the City of Monticello is to responsibly use our resources to provide quality services and programs that foster a dynamic community rooted in history and preparing for a vibrant future. Leadership e., Stewardship* Responsiveness Integrity • Innovation ..... a .... • . • ... ..... ... . . . ... .. .............. 0.00 .... 0 ..... • ..... • . s . • .................. • • . s .... *0000 ...•.... The mission and values created the framework the city needed to move on to the next steps of the strategic planning process: Creating our goals and objectives. Downtown Small Area Study Implementation Workshop November 16, 2017 _._._._._._._._._._._..._._._._._._._._._._._._ Participants City Council: Brian Stumpf, Bill Fair, Jim Davidson, Charlotte Gabler, Lloyd Hilgart EDA: Tracy Hinz, Steve Johnson, Jon Morphew, Bill Tapper Parks & Recreation: Nancy McCaffrey, Larry Nolan Planning Commission: Katie Peterson Guests: Clay Sawatzke, Michele Hertwig Staff: Jeff O'Neill, Angela Schumann, Jim Thares, Jacob Thunander, Tom Pawelk, Rachel Leonard, Jennifer Schreiber Workshop Purpose Set a foundation for realizing the downtown plan by encouraging the various commissions to cooperatively review the elements of the plan, prioritize the components, and strategize implementation. Prioritization Exercise Organized by Highest Ranked Projects: Redevelopment: Pursue signature redevelopment on Block 52 with market rate housing and a destination restaurant that overlooks the park. Public Realm Improvements: Redesign riverfront parks to include more active events and programming in West Bridge Park (amphitheater, water feature, concessions) and passive uses in East Bridge Park. Broadway Street Commercial Vitality: Broadway Street Environment: Develop small pocket parks on vacant properties along Broadway, offering outdoor seating, and pedestrian connections to parking. Curb extensions at Walnut and Broadway to provide space for landscaping, seating, and gathering. Identity Building: Build Downtown's brand and identity by identifying the downtown core as the Broadway Walnut area, and naming it. Pursue marketing initiatives to build the new brand. Business Support & Development: Establish fagade improvement programs that offer financial support for improving building appearance and district identity. Organized by Survey Category High -Impact: 1. Pursue signature redevelopment on Block 52 2. Redesign riverfront parks... 3. Establish fagade improvement programs... Low -Hanging Fruit: 1. Improve bridge underpass... 2. Develop small pocket parks... 3. Curb extensions at Walnut & Broadway Personal Interest: 1. Redesign riverfront parks... 2. Pursue Signature redevelopment on Block 52... 3. Reconnected Walnut Street to River Street... East & West Bridge Park Improvements Foundation: Location on the river, high visibility, varied topography, existing assets, capable parks staff, dedi- cated volunteers, popular community events. Challenges: Limited automobile & pedestrian access, perception of noise and actual noise, potential river island flooding, limitations of adjacent land uses, ma- ture trees can block views, hard to change what's al- ready popular. Mitigation: Acquire surrounding land to allow redevelop- ment and growth, connect Walnut Street to River Street, use signage and rebranding to encourage ex- ploring downtown and connecting with the parks, en- hance underutilized assets like the southeast stairs and bridge underpass. Leadership: Parks staff, Park & Recreation Commission, City Council, and EDA with redevelopment. Key Decisions: Park design, connection of Walnut St. to River St, reconstruction of River St, redevelopment of Block 52. Priority Tasks: Park Design, remove understory plants for visibility to the river, programming & events, connect Walnut St. to River St. Block 52 Redevelopment Foundation: City owns a portion, another property for sale, high visibility, beautiful view, parks complement, EDA is engaged in acquisition. Challenges: Cost of acquiring property, getting the right developer, potential contamination, community confu- sion of public purpose, competition with completing Block 34, relocation costs. Mitigation: Continue acquiring land and empower eco- nomic development manager to meet with developers. Leadership: EDA for site control and incentives, staff for recruitment and negotiating, additional city staff from planning, public works, Wright County, etc. Key Decisions: Preliminary development agreement, zoning ordinance changes, incentives. Priority Tasks: Design for Walnut Street connection to River St., redesign West Bridge Park parking, acquire properties, reach out to developers to find the right partner, continue building relationships and communi- cating with property owners. Downtown Housing Development Foundation: Strong market, location has regional and local amenities, demographics, walkability, accessibility, site control, lender and council support, developers interested, jobs nearby. Challenges: Relocation development costs, water table, cost of quality construction, noise, traffic access, size of block divisions, developers have many options, zoning not currently aligned with plan, existing property & business owners. Mitigation: Gather better information on water table, shared equity solutions, create one TIF district, buying options. Leadership: EDA to lead land acquisition, TIF program, coordination with lenders & developers. Planning Com- mission for zoning review. City Council for final approv- als. Key Decisions: Determining one site or many, zoning approved that balances flexibility with predictability. Priority Task: Create package or feasibility for several sites so the city knows its limits and capacity, include aesthetic design expectations, get a more detailed un- derstanding of the downtown market, engage in out- reach to developers with marketing materials. Activating Broadway Street's Commercial Vitality Foundation: Proximity to parks and river, some business- es already making positive changes, changes will en- courage people to visit, opportunity to build relation- ships, high traffic area. Challenges: Not all buildings up to code, cost of rehabili- tation, lack of space for outdoor seating, lack of con- centration, need to agree on fagade style, traffic, busi- ness mix. Mitigation: Assess the state of properties, survey and encourage stakeholder participation, offer financial in- centives, help 1-2 businesses start to encourage others. Survey property owners to guide the focus. Leadership: Existing business group, Chamber, City Council, EDA, and city staff. Priority Tasks: Determine ownership of every parcel with contact information, reach out to property and busi- ness owners for their ideas, identify and build alliances, determine design standards. Other: Encourage EDA build relationship. CITY OF Monticello Economic Development Authority 2018 Goals & Objectives Worksheet Monticello 2017 Workplan Please list below any incomplete or in -progress objectives from the 2017 EDA Workplan which should be considered to carry forward. 2017 City of Monticello Strategic Plan Please list below any activities related to supporting 2017 Strategic Plan goals and objectives for workplan consideration. Comprehensive Plan An update to the Land Use Chapter of the 2008 Comprehensive Plan is anticipated for 2018. Please list below items which are of specific interest or concern which you would like addressed in the pending update. Although the update will be focused on the Land Use Chapter, feel free to include questions or feedback on the Transportation, Economic Development, or Parks & Pathways section of the plan. Link to Comprehensive Plan:_http://www.ci.monticello.mn.us/index.asl2?SEC=7E69C402- ED23-4BF2-8D63-B77887B3BC71&Type=B BASIC 1IPage Research Topics Please list below any economic development related topics for which you would like additional information or other policy development. Topic Industrial Land Absorption Study in NE Wright Count Feasibility Study of expanding Otter Creek Business Park Identification of industrial land development oortunities City-wide Identification of redevelopment site opportunities Technology center incubator in downtown area Downtown Housing Review -Stud Facade Loan Program (variation of) Survey of Employer and Workforce needs vis a vis daycare, housing, etc. Other (list): Other (list): Other (list): 21 Page EDA Agenda: 01/10/18 7. Consideration of Revised Available TIF Funds Policy Statements (JT) A. REFERENCE AND BACKGROUND: This item is a proposed revision to the recently adopted "Policy Statements for Available TIF Funds". Staff noticed that the recently adopted Policy Statements needed a revision to reclassify the "type of project" for the Masters Fifth Avenue item. It is actually a "redevelopment project" and not an "affordable housing project' in spite of the development's current PUD plan featuring housing. The EDA reviewed and adopted the Policy Statements at its regular meeting on October 11, 2017. There are also a number of smaller, clarifying language edits that have been added to the Policy Statements. These edits are nuances that slightly broaden the potential allowed improvements that are to be funded through the TIF dollars. The Preamble does not change at all in the revised Policy Statements. The adopted Policy is included so comparison of the language in the proposed revised Policy can be made. The workshop held on September 13, 2017 offered the EDA a chance to review the options and discuss preferences for the potential use of the funds. The attached policy statement is a first draft reflecting those points for consideration by the EDA. Al. Staff Impact: The City's Community Development Department staff along with Tammy Omdal, Northland Securities, and Martha Ingram, the EDA Attorney, have been involved in contributing to additional discussion and proposed revisions to the Policy Statements. A2. Budget Impact: The incurred consultant expenses to review and draft policy statements is modest. The costs will be allocated to the annual TIF District administrative expenses (10 percent) for each of the districts. B. ALTERNATIVE ACTIONS: 1. Motion to approve the proposed revised Policy Statements for Available TIF Funds. 2. Motion to deny approval of the revised Policy Statements for the Available TIF Funds 3. Motion to table approval of the revised Policy Statements for the Available TIF Funds for further research and information. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. By approving the revised Policy Statements, it will correct errors and minor omissions to the adopted Policy and make it more clear to users and decision makers. D. SUPPORTING DATA: A. Revised Policy Statements for Available TIF Funds DRAFT B. Current adopted Policy Statements for Available TIF Funds C. Previous EDA Staff Report from October 11, 2017 Meeting D. Estimated Available Funds Table 2 Policy Statements for Management of Available Tax Increment Financing (TIF) Funds The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy statements to guide both staff and EDA members to make consistent and informed financial decisions regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to be a guide. The EDA may determine to allocate funds to other types of projects, not included below, based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current and future projected dollars legally available within established TIF funds, and not committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF Act"). POLICY STATEMENTS: Redevelopment Projects The EDA will consider allocating available TIF funds, without priority order, to the following types of redevelopment projects: 1. Acquisition of property— Block 52 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study 2. Acquisition of Property — Block 34 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study 3. Acquisition of Property - Other downtown sites that provide relatively immediate development opportunities that support the objectives of the Comprehensive Plan and the Downtown Small Area Study 4. Masters Fifth Avenue site - Assistance for underground or structured parking improvements for a development consistent with the objectives of the Comprehensive Plan, the Downtown Small Area Study, the TIF Plan and the existing Contract for Private Development, and approved by the EDA Or 5. Downtown area - Assistance for installation of public or private infrastructure and value- added site improvements such as underground or structured parking for redevelopment Page 1 1 Rev. January 10, 2018 508678v2 M N I M N 190-101 projects consistent with the objectives of the Comprehensive Plan and the Downtown Small Area Study and approved by the EDA Affordable Housing Projects The EDA will consider the allocation of available TIF funds, without priority order, to the following types of affordable housing projects: 1. Assistance to lower overall project costs via reimbursement of TIF -eligible expenses related to projects that meet the EDA's value-added standards/criteria 2. Block 52 - Assistance for underground or structured parking and/or value-added site improvements in connection with market -rate, multi -family housing with an affordable component 3. City core - Establishment of a scattered -site owner -occupied rehabilitation program 4. Downtown area - Assistance for underground or structured parking and/or value added site improvements in connection with the development of market -rate, multi -family housing with an affordable component 5. City-wide for the installation of ni ihlir nr nrivatP infrastructure serving sites to be developed with market -rate, multi -family housing with an affordable component 6. Acquisition of property for purposes of facilitating development of market -rate, multi -family housing with an affordable component, consistent with the goals and objectives of the Comprehensive Plan. Page 12 Rev. January 10, 2018 508678v2 M N I M N 190-101 Policy Statements for Management of Available Tax Increment Financing (TIF) Funds The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy statements to guide both staff and EDA members to make consistent and informed financial decisions regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to be a guide. The EDA may determine to allocate funds to other types of projects, not included below, based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current and future projected dollars legally available within established TIF funds, and not committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF Act"). POLICY STATEMENTS: Redevelopment Projects The EDA will consider the allocation of available TIF funds, without priority order, to the following types of redevelopment projects: 1. Acquisition of property— Block 52 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study 2. Acquisition of Property— Block 34 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study 3. Acquisition of Property - Other downtown sites that provide relatively immediate development opportunities that support the objectives of the Comprehensive Plan and the Downtown Small Area Study 4. Installation of infrastructure and other property improvements directly supporting redevelopment projects that support the objectives of the Comprehensive Plan and the Downtown Small Area Study Affordable Housing Projects The EDA will consider the allocation of available TIF funds, without priority order, to the following types of affordable housing projects: 1. Financial support to lower overall project costs via reimbursement of TIF -eligible expenses related to projects that meet the EDA's value-added standards/criteria Page 1 1 October 6, 2017 508678v2 MNI MN190-101 EDA Agenda: 10/11/17 8. Consideration of approving 2016 TIF Management Plan Policy Statements (JT) A. REFERENCE AND BACKGROUND: Approximately one year ago, in August 2016, the EDA accepted the 2016 TIF Management Plan completed by Northland Securities. The Plan consisted of a management analysis with possible recommendations regarding compliance and action steps of the EDA's many TIF districts. As stated in the Plan Overview, it is "intended to be a practical guide ... for the ongoing management of the City's TIF Districts and available funds". The Management Plan outlined the history and the current status and funding level of each district along with management options. Some of the management decision points are procedural, administrative action steps. Other management activities consist of formulating general or specific guiding policy statements to help with fund allocation. That is where this report and attachments come into play. Outlined below are the TIF Districts that were identified in the Plan which have available funds. The goal is to enact a policy statement which guides the use of the funds via either an overarching guidance statement that outlines activities and/or projects to be considered for the use of excess TIF funds or some such similar document that lists specific projects with dollars amounts to be supported by the extra available tax increment. Policy direction is needed regarding fund balance from the following TIF Districts: Redevelopment Projects ➢ TIF District 1-06 - $707,603 or $845,651 by 2025 ➢ TIF District 1-20 - $89,628 or $117,795 by 2025 ➢ TIF District 1-22 - $46,167 or $337,550 by 2025 Total funds available by 2025 = $1,666,653 Affordable Housing Projects ➢ TIF District 1-19 - $176,382 or $337,550 by 2025 ➢ TIF District 1-24 - $58,025 or $472,057 by 2025 ➢ TIF District 1-29 - $100,824 or $254,232 by 2025 ➢ TIF District 1-30 - $73,679 by 2025 Total funds available by $2025 = $1,335,162 The workshop held on September 13, 2017 offered the EDA a chance to review the options and discuss preferences for the potential use of the funds. The attached policy statement is a first draft reflecting those points for consideration by the EDA. Al. Staff Impact: The City's Community Development Department staff along with Tammy Omdal, Northland Securities, and Martha Ingram, the EDA Attorney, have been involved in formulating and reviewing the policy statements outlining activities and/or potential projects to be supported with the available tax increment dollars. A2. Budget Impact: The incurred consultant expenses to review and draft policy statements is fairly modest. The costs will be allocated to the annual TIF District administrative expenses (10 percent) for each of the districts. B. ALTERNATIVE ACTIONS: 1. Motion to adopt the 2016 TIF Management Plan Available Funds Policy Statement. 2. Motion to deny adoption of the 2016 TIF Management Plan Available Funds Policy Statement. 3. Motion to table adoption of the 2016 TIF Management Plan Available Funds Policy Statement for further research and information. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1 wherein the EDA adopts the 2016 TIF Management Plan Available Funds Policy Statement. By adopting the policy statement, it will guide the expenditure of the available funds and help ensure the resources are allocated to the best possible activities and/or redevelopment and affordable housing projects D. SUPPORTING DATA: A. 2016 TIF Management Plan Available Funds Policy Statement DRAFT B. Estimated Available Funds Table 2 b" LO LO C`7 � O N C.0 LO O- N (D > 0) C� ti LO � C� CU T- 69� co ff} 'd 69- N Ef} 60�- C'7 � >1 a) � O U co 4-0 co Q N C E U > O Q LO LO 07 ~ O M LO U co ti N Co Lt L+_ c N �_ C'7 N O U CO � � -00 CU m O CU .O i � O E ON ONO N N M m O co O 00 N � O C Q 6i60- E NC 4) C U CU o O � cS1S Cl) 00 N I` ►� Oco U � Cid � r- C CO C6 OO "ru m 6�} 0 N 4-4' V- M O E C) O N C 4-- O N i C O �E O E O a) Cll i O N � y .� _ O rn � CU t� N ci U O Z � p m Ln A C - O +-� _r_: U) Z� C t6 cr . �O .ca p C w Lb OC: r O N O d' m O O CU "6 CU -0CN CN N N co N N F��I FS 0 � v u- F= u- F= LL P ii P LL P u- P F2 p Z N7. z("') C-� c z EDA Agenda: 1/10/18 8. Consideration of Modifying Minnesota Investment (MIF) Funds Loan Guidelines (JT) A. REFERENCE AND BACKGROUND: Staff is proposing to modify the MIF Loan Guidelines to better meet prospective borrower's needs and to be consistent with the recent changes in the GMEF Loan Program Guidelines. The proposed changes relate to the required equity contribution which is currently 10 percent of a total finance package and the payment term for equipment loans and the real estate balloon payment timeframe. The MIF Loan program is intended to be a gap funding resource. It helps to fill the 15 to 30 percent of funding that a bank cannot or will not fund. In June 2017, the EDA discussed making possible changes to the equity requirements to the GMEF Guidelines and then adopted those modifications during the July 2017 meeting. The specific changes consist of adjusting the equity requirement to a range of 5 to 10 percent. Interest rate tiers were also established to reflect a lower equity contribution as per comments from the EDA. The repayment term language proposal stems from feedback from businesses and bankers. The MIF's current term language includes a 5 -year balloon payment. Extending this out to 10 years will be more helpful to borrowers as it will allow additional time (60 additional months) to prepare to make a large balloon payment. The EDA amended the GMEF Loan Guidelines in early 2017 to make these exact term modifications. Both of these proposed changes will add more flexibility to the Guidelines and allow more borrowers to consider using the MIF Loan Program. It should be noted that standard credit and financial underwriting focusing on acceptable cash flow analysis for the loan repayments will still apply for application submittals. At the EDA workshop in December, it was noted that these funds retain their state requirements for all loans. As of 12-31-2017, the estimated available balance of these funds is $620,000 +/- Al. STAFF IMPACT: There is minimal staff impact in considering modifying the MIF Loan Guidelines. A2. BUDGET IMPACT: There is a no budgetary impact due to the EDA's consideration of modifying the MIF Loan Guidelines as proposed. B. ALTERNATIVE ACTIONS: 1. Motion to modify the MIF Loan Guidelines regarding repayment term and equity and interest rate language as presented. 2. Motion to deny the proposed modifications to the MIF Loan Guidelines 3. Motion to table modification of the MIF Loan Guidelines for further research. C. STAFF RECOMMENDATION: EDA Agenda: 1/10/18 Staff recommends the EDA modify the MIF Loan Guidelines as presented to provide greater flexibility for potential borrowers and also to offer consistency with the recent changes to the GMEF Loan program equity requirements, also approved by the EDA in July 2017. Standard credit and financial underwriting focusing on acceptable cash flow analysis for loan repayments will still apply for MIF application submittals. D. SUPPORTING DATA: A. Proposed MIF Loan Guidelines B. Current MIF Guidelines (Combined MIF and SCDP) 2 ��` Monticello MONTICELLO MINNESOTA INVESTMENT FUND REVOLVING LOAN FUND GUIDELINES I. PURPOSE: The City of Monticello ("City") has received a grant through the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLF. Fie Cit' Monticello Economic Development Authority (EDA) shall administer the RLF on behalf of the City of Monticello which serves to further the community and economic development needs and interests of the City. II. PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start-ups, expansions, and retention where jobs are created or retained. This may be accomplished by the following means: 1.) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2.) Investment in technology or equipment that increases productivity and provides for higher wages; 3.) Leverage of private investment to ensure economic renewal and competitiveness; 4.) Increase to the local tax base and diversify industry -business mix; 5.) Improve the quality of existing jobs, based on increases in wages or improvements in job duties, training or education associated with those jobs; 6.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 7.) Stimulation of productivity growth through improved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy -downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. The RLF is subject to State requirements, as described in Exhibit A. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out-of-state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 10.) Workforce training activities 11.) Working capital VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous MIF assistance. VII. WAGE GOALS A project receiving assistance from MIF RLF dollars must pay each employee in the organization total compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110 percent of the federal poverty level for a family of four. Each year's compensation level requirements can be found on DEED's Business Finance MIF website. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to EDA approval B. Terms and Conditions: 1. Leveragin: Minimum 60 private/Non-RLF, Maximum 30% RLF, Minimum ii Term: Personal property term not to exceed life of equipment _ 3. Interest Rate: Fixed rate not less than 2% below prime for loans that are structured with a 10 percent equity contribution or I% below prime rate for loans that have less than 10 percent equity injection - as published in the Wall Street Journal on the date of RLF loan approval, with a minimum interest rate of 2.0%. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee may be incorporated into project cost. The EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the EDA within 5 working days after EDA approval of RLF loan. The fee is non-refundable. C. Other: No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the EDA. Monthly payments may be deferred for a determined period of time upon approval by the EDA. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the EDA under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the EDA within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the EDA, and all such interest will be due and payable at the same time as the amount on which it has accrued. 3. RLF Loans are not assumable. 4. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 5. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to EDA approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 6. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. i. The 180 -day non-performance date can be extended up to an additional 120 days, upon approval by the EDA. ii. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. 7. Legal fees are the responsibility of the RLF applicant. 8. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the EDA and assist in carrying out the policies of the RLF as approved by the EDA. iii. Shall analyze the formal application and indicate, to the EDA, the level at which the lending institution will participate in the finance package. 9. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure EDA compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the EDA to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The EDA desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. City Staff: City Staff shall carry out RLF operating procedures as approved by the EDA. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the EDA shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 Revised January 10, 2017 Exhibit A STATE REQUIREMENTS State requirements are as on file with the City Clerk of Monticello and are hereby incorporated by reference. F a,.a S� CITY OF � Mont 6eo MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET- ASIDE REVOLVING LOAN FUND GUIDELINES I. PURPOSE: The City of Monticello ("City") has received a grant through the Community Development Block Grant Economic Development Set Aside program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLF. The City Council administers the RLF. IL PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start ups, expansions, and retention where jobs are created or retained. This may be accomplished by the following means: l.) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 5.) Stimulation of productivity growth through improved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy -downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. The RLF is subject to all of the state and federal CDBG requirements, as described in Exhibits A and B attached. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out-of-state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Lease or purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 9.) Workforce Development including job training and placement: a.) Training low skilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have; b.) Training a pool of low-income prospective employees for specific jobs being created as a result of a CDBG-funded industrial expansion, where the employer agrees to give first consideration to filling the new positions with people from this pool; c.) Re-training existing employees of a business as part of a project which qualifies as retaining jobs. 10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or developing a microenterprise, which is defined as a commercial enterprise that has 5 or fewer employees, one or more of whom owns the enterprise. If this assistance is federally funded, the business needs to be owned by an individual that is in a low and moderate income household VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 8.) For relocation of an out of state business. 9.) New housing construction. 10.) Planning for economic development projects. 11.) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. 12.) Working capital. VII. PUBLIC BENEFIT A project using RLF funds must show a minimum level of public benefit. The amount of the assistance must not exceed $50,000 per full-time equivalent, permanent job (created or retained). If the City finds, after a public hearing, that the primary purpose of the project is not job creation, this provision is not applicable. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to City approval B. Terms and Conditions: 1. Leveraging: Minimum 60% private/ Non-RLF, Maximum 30% RLF, Minimum 10% equity. 2. Loan Term: Personal property term not to exceed life of equipment (generally 5-7 years). Real estate property maximum of 5 -year maturity amortized up to 30 years. Balloon payment at 5 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of RLF loan approval, with a minimum interest rate of 3.0%. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee maybe incorporated into project cost. City retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the City within 5 working days after City Council approval of RLF loan. The fee is non-refundable. C. Other: 1. No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the City. 3. Monthly payments may be deferred for a determined period of time upon approval by the City Council. 4. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the City under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the City within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the City, and all such interest will be due and payable at the same time as the amount on which it has accrued. 5. RLF Loans are not assumable. 6. The City will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 7. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to City approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 8. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of City Council approval. i. The 180 -day non-perfonnance date can be extended up to an additional 120 days, upon approval by the City. ii. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. 9. Legal fees are the responsibility of the RLF applicant. 10. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the City and assist in carrying out the policies of the RLF as approved by the City Council. iii. Shall analyze the formal application and indicate to the City the level at which the lending institution will participate in the finance package. 11. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the City to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The City desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to City consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. Cit. Staff.- taf.- City Staff shall carry out RLF operating procedures as approved by the EDA and City Council. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the City consider approval of the preliminary application at the next regularly scheduled meeting of the City Council. 4. City staff shall analyze the fonnal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the City Council. A decision regarding the application shall be made by the City Council within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the City Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the City shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 ExhUt A STATE REQUff REMENTS State requTements are as on file with the Cft.y Cez-k ®f MonVicell® and are hereby �ncorporated by reference. Exhffift H FEDERAL REQUffREMENTS Federal requirements are as on file with the City CDerk of Monticello and are hereby incorporated by reference. EDA Agenda: 1/10/18 9. Consideration of Modifying SCDP Loan Guidelines (JT) A. REFERENCE AND BACKGROUND: Staff is proposing to modify the SCDP Loan Guidelines to better meet prospective borrower's needs and to be consistent with the recent changes in the GMEF Loan Program Guidelines. The proposed changes relate to the required equity contribution which is currently 10 percent of a total finance package and the payment term for equipment loans and the real estate balloon payment timeframe. The SCDP Loan program is intended to be a gap funding resource. It can help fill the 15 to 30 percent of funding that a bank cannot or will not fund. In June 2017, the EDA discussed making possible changes to the equity requirements to the GMEF Guidelines and then adopted those modifications during the July 2017 meeting. The specific changes consist of adjusting the equity requirement to a range of 5 to 10 percent. Interest rate tiers were also established to reflect a lower equity contribution as per comments from the EDA. The repayment term language proposal stems from feedback from businesses and bankers. The SCDP's current term language includes a 5 -year balloon payment. Extending this out to 10 years will be more helpful to borrowers as it will allow additional time (60 additional months) to prepare to make a large balloon payment. The EDA amended the GMEF Loan Guidelines in early 2017 to make these exact term modifications. Both of these proposed changes will add more flexibility to the Guidelines and allow more borrowers to consider using the SCDP Loan Program. It should be noted that standard credit and financial underwriting focusing on acceptable cash flow analysis for the loan repayments will still apply for application submittals. Clarifying documentation is also included with report regarding the City's request to transfer SCDP funds to the EDA and designate it as a Local Development Organization (LDO) to serve the community and economic development needs and interests in the City. The letter response from MN -DEED, dated January 3, 2006, indicates that the request to recognize the EDA as a LDO was approved. At the EDA Workshop in December, it was further noted that based on available information, these funds require one additional loan cycle prior to removal of the federal requirements. As of 12-31-2017, the estimated available balance of the funds is $502,000 +/-. Al. STAFF IMPACT: There is minimal staff impact in considering modifying the MIF and SCDP Loan Guidelines. A2. BUDGET IMPACT: There is a very minor budgetary impact due to the EDA's consideration of modifying the SCDP Loan Guidelines as proposed. Staff time to research and prepare reports is the primary cost of considering this item. B. ALTERNATIVE ACTIONS: 1. Motion to modify the SCDP Loan Guidelines regarding repayment term and equity and interest rate language as presented. 1 EDA Agenda: 1/10/18 2. Motion to deny the proposed modifications to the SCDP Loan Guidelines 3. Motion to table modification of the SCDP Loan Guidelines for further research. C. STAFF RECOMMENDATION: Staff recommends the EDA modify the SCDP Loan Guidelines as presented to provide greater flexibility for potential borrowers and also to offer consistency with the recent changes to the GMEF Loan program equity requirements, also approved by the EDA in July 2017. Standard credit and financial underwriting focusing on acceptable cash flow analysis for loan repayments will still apply for SCDP application submittals. D. SUPPORTING DATA: A. Proposed SCDP Loan Guidelines B. Current SCDP Loan Guidelines (Combined MIF and SCDP) C. Approved City Resolution requesting EDA be designated as LDO D. Letter from MN -DEED approving EDA as LDO 2 ��` Monticello MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET- ASIDE REVOLVING LOAN FUND GUIDELINES I. PURPOSE: The City of Monticello ("City") has received a grant through the Community Development Block Grant Economic Development Set Aside (SCDP) program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLFL. _WDecembel 2005, the City Council requested that Minnesota DEED designate the City of Monticello EDA as a Local Development Organization (LDO) so the Program funds could be transferred to the EDA as well as authority for the administration of RLF utilizing Program dollars. A letter response from MN -DEED, dated January 3, 2006, recognizes the EDA as a LDO and therein effectuates the transfer of the and the administrative authgy of those dollars. IL PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start-ups, expansions, and retention where jobs are created or retained. This may be accomplished by the following means: 1.) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 5.) Stimulation of productivity growth through improved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy -downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. The RLF is subject to all of the state and federal CDBG requirements, as described in Exhibits A and B attached. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out-of-state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Lease or purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 9.) Workforce Development including job training and placement: a.) Training low skilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have; b.) Training a pool of low-income prospective employees for specific jobs being created as a result of a CDBG-funded industrial expansion, where the employer agrees to give first consideration to filling the new positions with people from this pool; c.) Re-training existing employees of a business as part of a project which qualifies as retaining jobs. 10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or developing a microenterprise, which is defined as a commercial enterprise that has 5 or fewer employees, one or more of whom owns the enterprise. If this assistance is federally funded, the business needs to be owned by an individual that is in a low and moderate income household. VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 8.) For relocation of an out of state business. 9.) New housing construction. 10.) Planning for economic development projects. 11.) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. 12.) Working capital. VII. PUBLIC BENEFIT A project using RLF funds must show a minimum level of public benefit. The amount of the assistance must not exceed $50,000 per full-time equivalent, permanent job (created or retained). If the City finds, after a public hearing, that the primary purpose of the project is not job creation, this provision is not applicable. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to City approval B. Terms and Conditions: Leveraging: Minimum 60 % private/ Non-RLF, Maximum 30% RLF, Minimum 2. Loan Term:rsonal property term not to exceed life of equipment (possibly Up estate property maximum of 10 -year maturity amortized up to 30 years. Balloon payment at 10 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate or I% below prime if equity contribution is less than 10 percent of total financing - as published in the Wall Street Journal on date of EDA loan approval, with a minimum interest rate of 1.0% or 2% if equity contribution is less than 10 percent of total financing. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant within 5 working days after EDA approval of loan. The fee is non-refundable. C. Other: No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to by the EDA. 3. Monthly payments may be deferred for a determined period of time upon approval by the EDA. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the EDA under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the EDA within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the EDA and all such interest will be due and payable at the same time as the amount on which it has accrued. 4. RLF Loans are not assumable. 5. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 6. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to EDA approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 7. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. i. The 180 -day non-performance date can be extended up to an additional 120 days, upon approval by the EDA. ii. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. 8. Legal fees are the responsibility of the RLF applicant. 9. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the EDA and assist in carrying out the policies of the RLF as approved by the EDA. iii. Shall analyze the formal application and indicate to the EDA at the level at which the lending institution will participate in the finance package. 10. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure EDA compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the EDA to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The EDA desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. City Staff. City Staff shall carry out RLF operating procedures as approved by the EDA. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the EDA shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 Revised January 10, 2017 Exhibit A STATE REQUIREMENTS State requirements are as on file with the City Clerk of Monticello and are hereby incorporated by reference. Exhibit B FEDERAL REQUIREMENTS Federal requirements are as on file with the City Clerk of Monticello and are hereby incorporated by reference. F a,.a S� CITY OF � Mont 6eo MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET- ASIDE REVOLVING LOAN FUND GUIDELINES I. PURPOSE: The City of Monticello ("City") has received a grant through the Community Development Block Grant Economic Development Set Aside program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLF. The City Council administers the RLF. IL PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start ups, expansions, and retention where jobs are created or retained. This may be accomplished by the following means: l.) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 5.) Stimulation of productivity growth through improved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy -downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. The RLF is subject to all of the state and federal CDBG requirements, as described in Exhibits A and B attached. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out-of-state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Lease or purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 9.) Workforce Development including job training and placement: a.) Training low skilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have; b.) Training a pool of low-income prospective employees for specific jobs being created as a result of a CDBG-funded industrial expansion, where the employer agrees to give first consideration to filling the new positions with people from this pool; c.) Re-training existing employees of a business as part of a project which qualifies as retaining jobs. 10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or developing a microenterprise, which is defined as a commercial enterprise that has 5 or fewer employees, one or more of whom owns the enterprise. If this assistance is federally funded, the business needs to be owned by an individual that is in a low and moderate income household VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 8.) For relocation of an out of state business. 9.) New housing construction. 10.) Planning for economic development projects. 11.) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. 12.) Working capital. VII. PUBLIC BENEFIT A project using RLF funds must show a minimum level of public benefit. The amount of the assistance must not exceed $50,000 per full-time equivalent, permanent job (created or retained). If the City finds, after a public hearing, that the primary purpose of the project is not job creation, this provision is not applicable. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to City approval B. Terms and Conditions: 1. Leveraging: Minimum 60% private/ Non-RLF, Maximum 30% RLF, Minimum 10% equity. 2. Loan Term: Personal property term not to exceed life of equipment (generally 5-7 years). Real estate property maximum of 5 -year maturity amortized up to 30 years. Balloon payment at 5 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of RLF loan approval, with a minimum interest rate of 3.0%. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee maybe incorporated into project cost. City retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the City within 5 working days after City Council approval of RLF loan. The fee is non-refundable. C. Other: 1. No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the City. 3. Monthly payments may be deferred for a determined period of time upon approval by the City Council. 4. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the City under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the City within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the City, and all such interest will be due and payable at the same time as the amount on which it has accrued. 5. RLF Loans are not assumable. 6. The City will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 7. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to City approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 8. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of City Council approval. i. The 180 -day non-perfonnance date can be extended up to an additional 120 days, upon approval by the City. ii. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. 9. Legal fees are the responsibility of the RLF applicant. 10. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the City and assist in carrying out the policies of the RLF as approved by the City Council. iii. Shall analyze the formal application and indicate to the City the level at which the lending institution will participate in the finance package. 11. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the City to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The City desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to City consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. Cit. Staff.- taf.- City Staff shall carry out RLF operating procedures as approved by the EDA and City Council. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the City consider approval of the preliminary application at the next regularly scheduled meeting of the City Council. 4. City staff shall analyze the fonnal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the City Council. A decision regarding the application shall be made by the City Council within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the City Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the City shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 ExhUt A STATE REQUff REMENTS State requTements are as on file with the Cft.y Cez-k ®f MonVicell® and are hereby �ncorporated by reference. Exhffift H FEDERAL REQUffREMENTS Federal requirements are as on file with the City CDerk of Monticello and are hereby incorporated by reference. RESOLUTION NO. 2005-125 RESOLUTION OF CITY OF MONTICELLO REQUESTING DESIGNATION OF THE MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AS A LOCAL DEVELOPMENT ORGANIZATION WHEREAS, The City of Monticello (the" ") would like to better utilize the Small Cities federal funds; and, WHEREAS, if the City of Monticello retains these funds and their repayment, the funds retain the federal designation and guidelines forever; and, WHEREAS, the City of Monticello by resolution, can request from the Minnesota Department of Employment and Economic Development (MNDEED), authorization to transfer Small Cities Development Program Economic Development Set -Aside funds to a Local Development Organization (LDO); and WHEREAS, The Monticello Economic Development Authority is interested in being designated as an LDO and is a non-profit organization serving the community and economic development needs of a non -entitlement area; and WHEREAS, The Monticello Economic Development Authority has adopted procedures and guidelines for the use of the federal funds, the repayment of the federal funds plus any interest accrued, earned or paid thereon. NOW THEREFORE, BE IT RESOLVED by the City of Monticello that the City hereby requests approval from MNDEED to designate the Monticello Economic Development Authority as a Local Development Organization (LDO), serving the community and economic development needs of the City and, therefore authorize them to receive the repayments from the SCDP Set -Aside Loan to Revolving Loan Fund). and/or (a portion of the federal SCDP funds in the existing I CERTIFY THAT the above Resolution was adopted by the City Council of the City of Monticello on this 12th day of December 2005. SIGNED: WITNESSED: Nam-e7Title Name/Title GUIDELINES for the RE -USE OF LOCAL REVOLVING LOAN FUNDS (RLF) COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT PRQGRAM (CDBG-ED) INNESOTA INVESTMENT FUND STATE OF MINNESOTA DEPARTMENT OF EMPLOYMENTAND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION OFFICE OF BUSINESS FINANCE March, 2014 The Community Development Block Grant Program (CDBG) administered by the Minnesota Department of Employment and Economic Development (DEED) is funded annually by the U. S. Department of Housing and Urban Development. DEED's Office of Business Finance receives 15% of the states' CDBG annual allocation for the purpose of furthering economic development in the non -entitlement areas of Minnesota. This economic development set aside is operated within the Minnesota Investment Fund (MIF) program, which is supplemented with state funds. (For purposes of this document, the program will be referred to as "CDBG-ED" and the requirements apply only to the federal funds.) HUD establishes the CDBG regulations and requirements for the program and has oversight responsibilities for the use of these funds. CDBG-ED funding is provided to a unit of general purpose local government. (The local unit of government will be referred to as "the local government"). In turn, the local government provides a loan to a business to assist with its start up or expansion. DEED allows the community to retain the loan repayments, including principal and interest. Historically, local governments chose to use the repayments to capitalize a Revolving Loan Fund (RLF) for economic development purposes only. It has been found that for many reasons, (i.e., number of years it has taken to accumulate enough cash to actually use the funds, staff turnover, lost paperwork, confusion over the federal requirements, lack of projects, etc.) many RLF's have been inactive. Fortunately, CDBG rules provide flexibility on the reuse of these funds. To assist local governments in the administration of their RLF, CDBG-ED funds can be used for the following: 1) Revolving Loan Fund (RLF) for Business Financial Assistance; 2) Other CDBG Eligible Activities; and 3) Assistance to a Local Development Organization (LDO). These guidelines will provideeg neral guidance on the requirements for the reuse of the funds. For in-depth information the community must refer to regulations posted by HUD on their website. Before determining how these funds will be used, it is strongly recommended a thorough needs assessment of the community be undertaken. Through this process, the community will have a better understanding of its community and economic development needs and will be positioned to effectively address these needs. 2 SECTION I Revolving Loan Fund (RLF) for Business Financial Assistance The establishment of a Revolving Loan Fund within a community is one of several tools available to encourage business development. When establishing a RLF, the local government should begin by determining the economic development needs of their community from which they can develop policies, procedures and guidelines in response to those needs. There is no reason to "reinvent the wheel" as there is a wide array of RLF guidelines, samples of application forms, and legal documents on the web; or DEED's application(s) may be used. Upon completion of the policies and procedures, the grantee must submit them to DEED for approval. When a RLF is capitalized with repaid CDBG-ED loan repayments, the community takes on a major responsibility, as it will be functioning as a lender. The lending responsibilities are similar to those of commercial lenders and include loan marketing, application processing, credit analysis, lending decisions, loan closing and documentation, and loan servicing, in addition to meeting all of the federal, legal and administrative requirements of the CDBG-ED program. Because the RLF dollars are public funds, the local government must demonstrate to the taxpayers (as well as DEED and HUD) that their funds are being used wisely and for a public benefit. If a project fails, there may be a loss of public funds and external scrutiny of the local governments lending practices. It is important for the local government to mitigate these risks through prudent screening, underwriting, structuring and monitoring of business loans. It is strongly recommended that administrators of the RLF take RLF training through organizations such as the National Development Corporation (NDC) or the Council of Development Finance Agencies (CDFA). Local governments with CDBG-ED RLF's must keep the following in mind: The RLF never loses its federal identity. When loans are repaid, all CDBG regulations and requirements that applied during the term of the original project(s) will apply to the RLF. Some of these requirements include, meeting a national objective, public benefit standards, citizen participation, environmental review and Davis -Bacon (prevailing wage). The only exception is when loan repayments are made to a qualified Local Development Organization (See Section 111). In addition, the grantee must report to DEED on the use of the RLF on an annual basis as long as the funds continue to revolve. In compliance with HUD regulations and state rules, the State of Minnesota has chosen to permit the local government receiving CDBG-ED funds to establish a revolving fund to carry out specific, identified activities. A revolving fund, for this purpose, is a separate fund (with a set of accounts that are independent of other program accounts) established to carry out specific activities which, in turn, generate payments to the fund for use in carrying out such activities. These payments to the revolving fund are program income and must be substantially disbursed 3 from the revolving fund before additional grant funds can be requested from the State for revolving fund activities. Such program income is not required to be disbursed for non - revolving fund activities. Interest earned on the revolving fund is program income. When using the RLF for Business Financial Assistance, the community's RLF will continue the same activity that the original CDBG-ED assistance was addressed — "financial assistance to a for profit business that will create or retain permanent jobs, of which at least 51% will be taken by or made available to LMI persons." However, in addition to making a direct loan to a business, there are several other activities that are eligible for funding. Eligible Activities The financial assistance to businesses can be provided in the form of grants, loans, loan guarantees, or other assistance determined by the community and detailed in their RLF policies. Following are the activities that CDBG-ED RLF's can be used for: • Direct Financial Assistance to Businesses o Direct financial assistance can be provided to private, for profit businesses that intend to create or retain permanent jobs. o Funds under this activity can be used to assist a business with the following: • Project based land acquisition; • Building construction and other improvements; • Renovation of an existing building; • Purchase of capital equipment; • Purchase of an existing building; • Site improvements; • Working capital; • Railroad spurs or similar extensions; • Some types of downtown commercial rehabilitation. • Retail operations are eligible. o For example, a low interest loan can be provided to a business to assist with the purchase of equipment as part of a larger project. • Infrastructure o This includes public works projects necessary for the location, expansion, and/or retention of a specific for-profit business(es). Examples of eligible infrastructure projects are: streets, roads, water, sewer, bridges, sidewalks, parking facilities, drainage systems, railroad spurs, etc. • Microenterprise Assistance o The RLF may provide direct financial assistance, including loans, grants, etc. and technical assistance to assist with the start up or expansion of microenterprise businesses. o A microenterprise is defined as a commercial enterprise that has 5 or fewer employees, of which 1 or more is the owner. 4 Business Incubators o For the development, rehabilitation or property improvement of a building or the actual construction of a building to house the incubator; and/or o Provide assistance to businesses locating within the incubator. Job Training o This involves providing skill building classes to employees or potential employees and can be an important part of an economic development program. It can include: • Training unskilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have through a customized training program; • Re-training existing employees of a business as part of a project which qualifies as job retention. • Technical Assistance (TA) o CDBG-ED funds can be used to provide TA in either of the following ways: • To provide training to the local government to carry out the economic development activities; and • To provide technical assistance and training directly to businesses on topics such as business planning or accounting. • Administration o Administration is a one-time cost for items directly related to making the loan (consultant or legal fees, etc.), but cannot include staff time. o Costs will be capped at 10% of the loan amount or $5,000 — whichever is less. o If a loan should default at a later date, legal expenses and collection fees would be eligible, but please contact your DEED loan officer in this instance. o If a consultant is hired, the local government must follow the procurement process. Other Requirements Economic Development projects funded by the local government with CDBG-ED funds are subject to a wide range of requirements. The local government is responsible to ensure that the operation of the RLF is in compliance with a whole host of federal and state laws, regulations and executive orders. Following are the major requirements. Additional information on these and all other requirements are detailed on HUD's website. • National Objective o All projects must meet one of three national objectives: • Benefit to persons of low and moderate income (LMI); • To aid in the prevention or elimination of slum and blight; • To meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the 5 health or welfare of the community. In the CDBG-ED category, nearly all projects will meet the Benefit to LMI objective. • Public Benefit Standards o These standards ensure that at least a minimum level of public benefit is obtained from the expenditure of CDBG-ED funds. Use of these standards is mandatory. o This requirement is separate from the National Objective requirement that 51% of the jobs created or retained be taken by LMI persons. o Basically, the standards are a "cost per job" or "cost per goods and services" calculation used to determine if the financial assistance is appropriate. • "Anti -pirating" of Jobs o CDBG-ED funds cannot be used for employment relocation activities or "job pirating." o Job pirating refers to the use of federal funds to lure or attract a business and its jobs from one community to another. o Specifically, CDBG-ED funds may not be used to assist businesses if: • The funding will be used to assist directly in the relocation of a plant, facility or operation; and • The relocation is likely to result in a significant loss of jobs in the labor market area from which the relocation occurs. Environmental Review o All projects are subject to the National Environmental Policy Act (NEPA) which seeks to avoid adverse impacts on the environment by mandating careful consideration of the potential impacts on any project assisted with federal funds. o All projects must have an appropriate environmental review completed prior to project costs being incurred. • Citizen Participation o The local government must include the public in decisions about use of the RLF, as well as each project to be funded. • Acquisition/Displacement and Relocation Requirements o Applies to any acquisition of real property when CDBG-ED funds are used for the acquisition. • Davis Bacon and Related Acts o Includes the Federal Contract Work Hours and Safety Standards Act, and the Copeland "Anti- Kickback" Act; o Applicable when more than $2,000 of CDBG-ED dollars are used for construction, remodeling, site development and equipment installation. • Guidelines and Objectives for Evaluating Project Costs and Financial Requirements. These underwriting guidelines are designed to assist the local government to select economic development projects that are financially viable and will result in the most M effective use of CDBG-ED funds. The use of these guidelines is voluntary; however, local governments electing not to use these guidelines are expected to conduct basic financial underwriting of projects funded under this eligibility category. There are six criteria that must be evaluated: o Project costs are reasonable; o All sources of project financing are committed; o To the extent practicable, CDBG-ED funds are not substituted for non-federal financial support; o Project is financially feasible; o To the extent practicable, the return of the owner's equity investment will not be unreasonably high; and o To the extent practicable, CDBG-ED funds are disbursed on a pro -rata basis with other finances committed to the project. 7 SECTION 11 Other CDBG Eligible Activities The community may broaden the use of the RLF by establishing a program that supports other community development needs which combines a wide array of activities. These activities must continue to meet the requirements of the CDBG program. When converting CBDG-ED to CDBG- SCDP, the Program Income can only be used as leverage for open active grants or on new applications to SCDP. The community must receive approval from DEED's Office of Business Finance if it chooses to use some or all of its CDBG-ED loan repayments for "Other CDBG Eligible Activities." The written request must include the dollar amount to be transferred and a plan for the use of the funds. The request will be reviewed by DEED's Office of Community Assistance (SCDP) staff) and if approved, the community will transfer the agreed upon amount from its RLF to a "Program Income" account. The administration of the Program Income is then transferred to DEED's Office of Community Assistance staff. • Federal Objective o All projects must meet one of three national objectives: • Benefit to persons of low and moderate income (LMI); • To aid in the prevention or elimination of slum and blight; • To meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. Eligible Use of Funds for "Other CDBG Activities": Community Development is the primary focus of these funds. For more information see the SCDP A -Z guide on the DEED website. You can choose one or a combination of the following activities. • Housing Activities -rehabilitation of housing which includes Lead Based Paint and historical evaluation and remediation. o Homeowner Rehabilitation — to assist existing homeowners with rehabilitation of their homes. o Rental Housing —to rehabilitate rental housing.51% of the units must be occupied by low to moderate incomes at HUD Fair Market Rents. • Commercial Rehabilitation: Rehabilitation of non-residential building owned privately or by a non-profit. This activity must come in combination with another activity. IQ o Code Violations o Health and Safety Issues o Facade Improvements o Energy Efficiency o Accessibility Access • Public Facilities and Improvements: Activities that are necessary to improve public facilities for communities that have 51% or greater of low and moderate income persons by census or survey area. o Public Improvements include, but is not limited to water and sewer lines, water and wastewater treatment and storage. o Public Facilities such as community centers. • Assessment Abatement: The recovery of the capital costs of a public improvement. o Abatement assessments are provided to households whose family income is 50% or less of the county median income. • Clearance: Usually related to demolishing structures as a result of a disaster or urgent threat to health and safety in the community. o Removal of demolition products (rubble) and other debris. • Conversion —The conversion of a closed building from one use to another. o Conversion of a closed school building to residential or for use as an eligible public facility. • Program Administration — for the planning and execution of CDBG activities. o Eligible costs include staff and related costs required for overall management, coordination, monitoring, reporting, and evaluation. Application preparation is not an eligible activity with any CDBG funds. o This is not a stand- alone or separate budget line item and should be included within the main activity cost. Note: All Disaster activities will be addressed on a case by case basis. I: Other Federal Requirements under the SCDP-Program Income • Environmental Review o All projects are subject to the National Environmental Policy Act (NEPA) which seeks to avoid adverse impacts on the environment by mandating careful consideration of the potential impacts on any project assisted with federal funds. o All projects must have an appropriate environmental review completed prior to project costs being incurred. • Citizen Participation o The local government must include the public in decisions about use of the program income, as well as each activity or project to be funded. A public hearing is required and if funded a second hearing mid -project is required. • Davis Bacon and Related Acts -used in commercial rehabilitation, rental rehabilitation of 8 units or more and public facilities. o Includes the Federal Contract Work Hours and Safety Standards Act, and the Copeland "Anti -Kickback" Act; o Applicable when more than $2,000 of CDBG dollars are used. • Acquisition/Displacement and Relocation Requirements o Applies to any acquisition of real property when CDBG-ED funds are used for the acquisition. 10 SECTION III Local Development Organizations HUD has recognized the need to lessen the burden to local governments that are administering CDBG-ED funded Revolving Loan Funds (RLF's). Therefore, the Housing and Community Development Act (HCDA) was amended to allow grantees of CDBG-ED funds to sub -grant their award to a qualified non-profit organization to carry out community economic development projects. This process is referred to as "de -federalizing" the funds and by doing so, the RLF is exempt from the CDBG requirements. The local government selects the non-profit organization to carry out the activity and designates it as a Local Development Organization using a LDO agreement. Because of the large number of underutilized RLF's funded with CDBG-ED funds, as well as the complexity of the CDBG requirements, DEED is strongly recommending that local governments with CDBG-ED RLF's consider the use of this process. Advantages of de -federalization: o Decreases the administrative burden on local governments to comply with the onerous CDBG requirements; o Increased flexibility in the administration of CDBG-ED RLF's; o Maximizes the flexibility of use of CDBG-ED funds, including accommodating regional approaches to the administration of lending programs. o No annual reporting to DEED on the use of the funds. Local Development Organization Eligibility Requirements: The LDO must meet the requirements of 105(a)(15) of the Housing and Community Development Act. The local government and prospective LDO will be required to complete and submit to DEED a LDO Designation form (attached), indicating that the following requirements related to the eligibility of the LDO have been met: o The organization is organized as a non-profit under the appropriate Internal Revenue Service code for nonprofits; o The organization is organized under state or local law to serve the community/economic development needs of communities; o The organization is independent of the local government.- 0 overnment;o The LDO will be "carrying out" the specified activity. In order for loan repayments to become de -federalized, the LDO will be the beneficiary of the loan; and o The activity shall not be carried out until DEED has approved the LDO designation and Agreement. 11 • Process DEED awards the CDBG-ED grant to the local unit of government who, after executing the LDO Agreement, grants the funds to the local nonprofit organization that meets the above definition. This entity is now known as the Local Development Organization (LDO). The LDO lends the funds to the business and the loan repayments are returned to the LDO. This loan is subject to the CDBG-ED requirements; however, subsequent loans made by the LDO through the repayments of the original loan are not. The local government monitors the LDO for compliance. DEED monitors the local government. When the project is complete DEED administratively closes the project file. Reporting to DEED on the use of the RLF is not required. Though exempt from the CDBG requirements, the LDO must establish policies and procedures which further economic development in the community. To accomplish this, the local government must provide the following to DEED: o Citizen Participation documentation. A public hearing must be held to discuss the transfer of funds to the LDO. Information to be provided to DEED includes: the public hearing notice, public hearing minutes, passage of a resolution concerning the arrangement with the LDO including a stipulation regarding the de -federalization of the funds; o Draft agreement that is mutually acceptable to both entities, o IRS documentation establishing the "nonprofit" organization; o Copy of the LDO's proposed RLF policies and procedures; o LDO Designation form; Upon DEED approval, the agreement may be executed and the RLF policies and procedures finalized. A local government that has an existing RLF capitalized with CDBG-ED funds can also provide some or all of its RLF to an LDO. The LDO's initial use of these funds must meet all CDBG requirements and will not be de -federalized until repaid to the LDO. The process for the transfer of funds to the LDO is the same as outlined above. Once the transaction is completed and the LDO Agreement is executed, the Grantee cannot recall the funds nor can they instruct the LDO on the use of the funds. Responsibilities for the initial project o The Local government is responsible for the following: • Compliance with all CDBG-ED requirements on the initial use of the CDBG-ED funds; • Monitoring the LDO; • Obtaining any necessary records from the LDO; • Submittal of annual reports to DEED while the grant is open. 12 o Local Development Organization (LDO): ® Is responsible for "carrying out" the initial project. This primarily means it will undertake the activity of the project directly or through contracts with an entity other than the local government. In any case, the LDO must have and continue to have a direct and controlling interest in the project and have the capacity for ensuring that program requirements are met. It cannot be simply a passive "pass- through" participant for the local government that performs all of the work. ® Is responsible for the following minimum activities in "carrying out" the program: ® Owner of all program policies and processes for the implementation of the program; • To manage the program. If the LDO does not have adequate staffing to manage the program it can contract for these services with a private contractor. A solicitation process for the contractor must be conducted in accordance with the open and competitive requirements of the state's procurement requirements. These services may include but are not limited to performing the daily accounting, application processing, and construction management duties; ® To be in control of all decisions regarding the transferred CDBG funds, including final loan decisions; Compliance with all federal and state lending requirements; Owner of the resulting loans and loan repayments; To use any repaid funds as specified in the LDO agreement. If, for some reason the LDO dissolves and an asset reversion occurs, contact DEED for assistance. An asset reversion could change the federal identity of any repaid funds; and Final accountability for all CDBG funds received. No formal procurement process is required for the selection of a LDO. The local government negotiates terms with its selected LDO. It is recommended that the local government use DEED's draft LDO Agreement template. 13 LOCAL DEVELOPMENT ORGANIZATION (LDO) DESIGNATION Minnesota Department of Employment and Economic Development (DEED) NON-PROFIT IDENTIFICATION Applicant Contact Address City/State/Zip Telephone # Fax # Federal Tax ID Number Email Address PPORTING DOCUMENTATION Charter Articles of Incorporation By -Laws I RS Documentation Revolving Loan Fund Policies L DO Agreement Local Government Resolution Public Hearing notice and minutes I certify that meets the IRS definition of a non-profit organization and is organized (under state or local law) to serve the economic development needs of non -entitlement communities, per Section 105(a)(15) of the Housing and Community Development Act of 1974, as amended, and that the organization will "carry out" the project entitled directly or through contracts with an entity other than the grantee. To the best of my knowledge and belief, data and information included in this document are true and correct. Signature Typed Name and Title Date approved I certify that the has held a public hearing and passed a resolution naming as a Local Development Organization to "carry out" the project entitled I authorize the LDO to be the beneficiary of the loan and retain all loan repayments to further economic development in the I acknowledge that the cannot recall the funds from the LDO. To the best of my knowledge and belief, data and information included in this document are true and correct. Signature Typed Name and Title 14 Date approved RESOLUTION OF (Name of City or County) Requesting Designation of the (Non-profit Organization) as a Local Development Organization WHEREAS, the (Name of City or County). (herein, the "City" or "County") would like to better utilize the Community Development Block Grant Economic Development (CDBG-ED) Set -Aside federal funds; and, WHEREAS, if the ("City" or "County") retains these funds and their repayment, the funds retain the federal designation and guidelines forever; and, WHEREAS, the ("City" of "County") by resolution, can request from the Minnesota Department of Employment and Economic Development (DEED), authorization to transfer CDBG-ED Set - Aside funds to a Local Development Organization, herein, (LDO); and WHEREAS, the (Name of Non -Profit Organization) is interested in being designated as an LDO and is a non-profit organization, as defined in Internal Revenue Service regulations, serving the community and economic development needs of a non -entitlement area; and WHEREAS, the (Name of Non -Profit Organization) has adopted procedures and guidelines for the use of the federal funds, the repayment of the federal funds plus any interest accrued, earned or paid thereon. NOW, THEREFORE BE IT RESOLVED by the ("City" or "County") that the ("City" or "County") hereby requests approval from the DEED to designate the (Name of Non -Profit Organization) as a Local Development Organization (LDO), serving the community and economic development needs of the "Cit or "County") and, therefore, authorize them to receive the repayments from the CDBG-ED Set -Aside loan to (Name of Business). I CERTIFY THAT the above Resolution; was adopted by the (City Council or Board of Commissioners of the City of or County oQ on the_day of______, 20 . SIGNED: Name/Title 15 WITNESSED: Name/Title January 3, 2006 011ie Koropchak, Economic Development Director City Hall 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 RE: Local Development Organization Designation Monticello Economic Development Authority Twin City I)ie Casting, Inc. Dear 011ie: I am in receipt of your December 14, 2005 letter and resolution requesting that the Monticello Economic Development Authority {EDA} tx° designated as a Local Development Organization (LDO) for the city of Monticello. The city's EDA is an entity authorized under State law to engage in community and economic development activities. As such, the Minnesota Department of Employment and Economic Development has detennined that the Monticello EDA is a "non-profit organization serving the conlmuil ty development needs of non -entitlement areas" and hereby designates the EDA as an LDO. As indicated in our telephone conversations, all federal regulations will apply only on the first use of the federal funds, by die EDA. This information should be retained in the IrDA files for each new project. If you have questions, please call me at 651-296-3898. Sincerely, V Carol PreSsley-Olson Sr. loan Officer Business Finance Office cc: Rick Wolfsteller Business and Community Development Department of Employment and Economic Development 1st National Bank Bulldh4 • 332 Minnesota St., Salte E200 • Saint Paul, NN 65101-1351 • USA 651-297-1291 • 800-657.3858 • Fax 651-296-8833 • TTY/TDD: 651.296-39M • www.der&state.mn.us An epel oVortag;t y eallopee end tmice prodder. 424 KION rtCE1.1-u December ld. 2005 Ms. Carol Pressley -Olson Senior loan 01, icer Minnesota Department of T:mployment and Economic Development I" National Bank- Building I Minnesota Street St. Paul, h.1N 5 5 10 1 RE: CDAV-99-0122-H-11100 Dear Carol: The City ol'Nionticello request that the Monticello Uconomic Development ALI(hority he designated a Local Development On,anizalion (I.1)U). T1te- City desires to transtier $50U-000 plus interest from the City's fCdcral revolving loan fund to the LDO. Please Find a copy of the Resolution that requests the MN Department of Frnployment and [cononlic Developments approval liar the designation and translir of' hinds. Also. attached is a rope ofthe amended Monticello L:conomic Development Authority Business SLIhSId\' Criteria. please note page 7. Section V. 'l'hc Cit: 01"Vlonliceilo understands that by transi'erring, these funds to an I.DO. the City UiVes up control over the funds and cannot recall the funds from the 1.1)0. Sincerely. CH 1 OF i%•IUN I l(TI-1-0 C,)I" \,� (Y) 04;� 011ie Koropchal; Fconomic I tvelopment Director Auachmc�rlts c: C'DAP - 99 -01212 -1 -i -1=Y00 bile FDA File Al,mtice Ilo City 1 fall. 505 Walnut street. Suite I. Mowicellu, MN 5536-9831 • E7631 295-3711 • Fax: (7631 295.441X1 ollice oi' f'uhlic Works. I)N Gulf C'oursc Rd-, Monticello. ASN 5536'- • (763) -95.3170 • Fax: (763) -'71-3'7? UFS0lA1I.10N N(:). 200_5-1?.`' r2f:w()1.1) PION' (IIT, C1n' or Ill.:Otll::�"l'It�i(: r)l:fil(:Iti'AT1ON O1' "I'll#; rQ0N'T1('I!I,1.,O 1';MNOMl(' 1)F M,f MIEN`t AUT11O1 FUN" ASA LOCM. i)#itS'I':LOI':11Fyr (H?GANILA"1 100 H-1-1/if':dN, TIT (..:ity cel M oiiticclK (Tc. [;rantee �� !I::! IIh. t ht(ier util z; i!l: titll;l!I (_ itis fCdercll 'un,!,, cele, — -- 1i"H REAS, It LIC C Its o1 i\'loll1iC(-llo tjw:�C 1i111d.."'111e: Llc'I: !cp fl In.":]! . tl!e ilind - lc'iL:in ;.".0 li_•detal W , n:ahm awl gWdHhws Koncq und, II'll l:'RFAS. r,,- ("iii' c!('kionucelln h:, lutioli. call r.'::l! '.I Ir:nl Un' I'.Illj)l(-'�flWIlt (lilt( I'i0110111ii DC\L'1ol)IlleI1T f �Iwl)1_SI_'•Dl, ntliili)llZ:fllt'I, lil (I';I:iti:c.'.r 11:1:1!! l_ lil�'� DevelopmCill Plot ..lel Lcilnclnlic Dc1dop:una Set"W'e (Eads n, n I..•,,,' 1)cv;:,vrinn Or��"invatilltl H I) l} and WHEREAS, he klonticrlic, LCL)Ilonm I)caelopnleni Audumn-v is ulT,lc ,i l in bc.-:nl all LI)O ml is a iwn-pn lli or,'ammion ser\'ine illi' i'�1111111t111! ' ,:n ` � U!1i'•:"I. ;;�`.';'! l;'•I1! li. 11i''ii> t1� :1 1?iNl c'tlt i'. e':ll+.'ll'. ::rca: iMd I HEREAT ' -I he Momicello Economic Dcvelopmrnt Authority has adopted Inocedi res and p,uideiines for the use of the federal funds, the repayment of the iederal funds plus any interest aicrued: earned or paid thereon NOii THEREFORE, BE IT RESOLVED by the (Ty ol'Monticello iliac the. City he'c•hv requests approval fiom MNDHED to designate the Monticello 1-.eonutnic l.kvelollnlent Authority as a local De.ve1ol nloni Chgalli?ation (1:1)0). saOne the c'onununity and ewnomic: development needs ofle City and. therefole autllorii.r diens to receive the repaymems lronl the SCDP set-A"iJ: 1. pall to TWIN CTTYFS DIG CASTINGS COMPANY andhlrfa porticln of We Weral SCDP funds in the c\isting Pw%-oiving Loan 1.-und). I CERTUA I I IAT the above Resolution was ac opted byte CityCouncil ot"lite Ctt� ot'Monlic'ello on this 12th da'.' of December SI�iNI D: WT-l'Nl,.SS1-:1): Nanleil itic N.un�.Cl'itic.• EDA Agenda — 1/10/18 10. Consideration to review for comment draft Guidelines and Application for a Downtown Business Improvement Loan program. (AS/JT) A. REFERENCE & BACKGROUND The EDA is asked to review and provide comment on a set of guidelines and application materials drafted for a Downtown Business Improvement Loan program. The adopted Monticello Downtown Small Area study cites as an implementation strategy the "establishment of a facade improvement program that offers financial support for investments that improve the visual appearance of buildings and district identity." Further, in the joint Downtown Small Area Study Implementation workshop held by City policy boards in November, the group cited the implementation of such a program as one of the highest ranked priorities for accomplishment. Staff has therefore reviewed available materials from the City's past facade improvement program, as well as materials from other communities with similar programs. Staff used the information to prepare a set of draft guidelines and application documents. Key considerations for which EDA feedback is requested are outlined at the top of the draft guidelines document and includes the following: o Geographic Area o Loan Term o Loan Forgiveness o Minimum Private and Maximum Public Commitments o Loan Uses o Interest Rate o Loan Consideration Criteria o Application Requirements It is recognized that the program should be structured to attract participation, while protecting the EDA's interests in financial accountability and achievement of project goals. Staff will use the EDA's feedback to refine the loan program documents. With EDA comment, staff will also forward the documents to the EDA attorney for review. B. ALTERNATIVE ACTIONS At this time, comment only is requested. It would be staff's intention to bring forward a revised draft for review and possible adoption in February, along with an outreach plan and funding source recommendation. EDA Agenda — 1/10/18 C. STAFF RECOMMENDATION Staff recommends pursuing the implementation of a fagade improvements per the direction of the Downtown Small Area Study and implementation workshop. Staff would further recommend the development of a strong outreach program to the downtown business community regarding the program's availability. D. SUPPORTING DATA A. Draft Downtown Business Improvements Loan Guidelines B. Draft Downtown Business Improvements Loan Application C. Downtown Small Area Study, Excerpts D. Implementation Workshop Summary 0 Key considerations for EDA discussion: • Geographic area • Loan term: 5 years/10 years • Loan: Forgivable or loan • Minimum private sector commitment: 60% • Minimum borrower commitment: 5% or 10% • Primary loan source option • Loan cap: 45%/40% of project cost; up to $74,999; loan minimum? • Interest rate: 2% • Loan fund uses • Loan consideration criteria • Application fee amount: $1000 • Application requirements ■ �Monticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN BUSINESS IMPROVEMENT LOAN FUND GUIDELINES, POLICY & APPLICATION POLICY PURPOSE The Economic Development Authority for the City of Monticello (EDA) recognizes the need to encourage investment in the expansion and/or rehabilitation of commercial and retail buildings in the downtown area in order to maintain the economic viability of the city and in the Downtown/Central Community District (CCD). Subsequently, the purpose of this loan program is to provide low interest, long-term (i.e. greater than one year) forgivable loans to encourage commercial and retail business owners in the Downtown/Central Community District to rehabilitate their existing buildings. ELIGIBLE BUSINESSES 1IPage Any project located or proposed to be located within the CCD zoning district of Monticello as defined by this loan program, may be eligible for a loan as further defined herein: • Unless otherwise stated, business must be a for-profit corporation, partnership, or sole proprietorship. • Business must be a small business as defined by the Small Business Administration (SBA). • Religious, political, and adult -use enterprises are not eligible. LOAN FUND TERMS & CONDITIONS Loan Structure All Downtown Business Improvement loans shall be structured as direct loans unless otherwise approved by the EDA. If a participation loan is requested, an agreement will be signed by the borrower, primary lender and the EDA. The loan will be structured as a five-year deferred loan (grant). If the building is sold within five years, a pro -rated portion of the grant must be repaid at a rate of 20% forgiven each year. The applicant must have private -sector commitments for 60% of the project cost. Of the 60%, the Borrower must provide 5% or more of project cost, which must be matched dollar for dollar, not by equity. Optional Language: For exterior renovations and frontage improvements per items 2 and 3 of "Permitted Loan Uses" herein, the EDA will consider applications for funding up to 90% of the project cost. Applicant must provide 10% project cost. The EDA may require additional agreements to be signed by the borrower (i.e. security agreement, personal guarantees, business subsidy agreement). Eligibility Requirements The property must be the commercial tenant's principal place of business. The owner of the commercial property must be a co -signatory to the application and loan agreement. The Property Owner must carry current property insurance both at the time of application and through completion of rehabilitation. 2 1 P a g e Property taxes on the subject site must be current. Applicants are not eligible to receive funding it the property to be rehabilitated is in default of property mortgage, contract for deed or comparable obligation. An applicant is ineligible to receive assistance if currently involved in bankruptcy proceedings. Limited to one loan per business. Alt language: per building Amount & Rate Loan amount may be up to $74,999 of secondary financing not to exceed 45% of the total project cost. Interest rate is fixed at 2%. Permitted Fund Uses: 1. Renovation and modernization of buildings, including building code, energy efficiency and accessibility compliance improvements. 2. Exterior renovation of retail or commercial buildings, including windows, doors, siding, brick, stucco, masonry, painting, steps, parapets, roofing or structural roof components. 3. Exterior improvements such as awnings, canopies, wall or projecting signage (not including digital signage), physical site landscaping improvements, and shutters. 4. Parking improvements; must include a minimum of 40% of stalls for public use. Ineligible Fund Uses: • Land acquisition • New building construction • Inventory • Furniture, fixtures, and equipment (FF&E) • Refinancing of existing debt • Working capital Loan Use At a minimum, 20% of loan dollars must be used for the improvement of the building fagade, with exceptions to be considered when it appears the fagade improvements are not necessary. Simultaneous EDA Loans 3 1 P a g e The simultaneous use of different EDA loan programs by any one borrower or for any one project is prohibited. Repayment or Call of Loan A loan shall become due and payable in full if a business relocates outside of the city of Monticello prior to the maturity date of the loan. Late Payment Charge A late payment charge of 8% of the installment amount will be enforced following a grace period of 10 calendar days. REGULATIONS FOR CONSTRUCTION AND IMPROVEMENTS All buildings for which public funds will be used for construction or renovation are to be brought into conformance with city ordinances and state building codes. It is the intent of the Downtown Business Loan Program to comply with the City's building standards for the Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards govern this program's design guidelines. LOAN SECURITY AND GUARANTEES Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral equal to the amount of the loan. Applicant must demonstrate the financial means to repay the loans, as determined by the EDA. Whenever possible, personal, corporate, and/or entity guarantees will be made part of any loan agreement. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the loan application and the loan agreement is of record. Any costs incurred prior to the approval of the loan application and loan agreement execution are not eligible expenditures. No building construction may commence until the required city permits are secured. The applicant will be responsible for all legal, recording, and other fees required for protection of a security interest in the loan, payable by a $1000 processing fee, which is 4 1 P a g e paid at the time of application. In addition to the processing fee, all legal and filing fees shall be paid by the borrower at loan closing. Closing of the loan should be simultaneous with the borrower's primary funding, if applicable. The EDA should be given two weeks' notice before closing. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the loan program, discuss the project, and obtain application forms. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An application inspection may be required. The applicant shall complete and submit an application form to the city, along with a $1000 processing fee. The fee is used to cover processing expenses and any remaining funds will be returned to the applicant. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minn. Sat. Sections 13.59, Subd. 1, respectively. The application will be reviewed by the city staff to determine if it conforms to all city policies and ordinances and to consider the following: • The availability and applicability of other governmental grants and/or loan programs. • Whether the proposed project will result in conformance with building and zoning codes. • Whether it is desirous and in the best interests of the public to provide funding for the project. • The EDA Commissioners will review each application in terms of its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study and in relation to the project's overall impact on the community's economy. • The EDA will evaluate the project application in terms of the following: o Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans, time lines and a capacity to implement the project. 5 1 P a g e o Financial Feasibility - Availability of funds, private involvement, financial packaging and cost effectiveness, bid -quote submissions. o Appropriate ratio of private funds to loan funds. o Evidence of their ability to meet the 10% equity requirements o Sufficient cash flow to cover proposed debt service as demonstrated o by financial statements and projections. o Letter of Commitment from applicant pledging to complete the project during proposed project duration, if the loan application is approved. o Letter of Commitment from other financing sources stating terms and conditions of their participation in the project if applicable. o Sufficient collateral. o All other information as required in the application and/or additional information as may be requested by the Economic Development staff. o Project compliance with all city codes and policies. • The applicant must meet all Loan Fund criteria and demonstrate how the proposed activities will meet at least one of the following objectives: o The project contributes to the fulfillment of the city's approved and adopted economic development and/or redevelopment plans. o The project prevents or eliminates blight. o The project increases the local tax base. o The project brings a structure into compliance with an existing building code violation. • A written request for an extension shall be accompanied by a copy of current financial statements and a $1000 upfront processing fee. The processing fee is used to cover processing expenses. • The EDA will review the application for approval, denial, or request a resubmission. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. RIGHT OF REFUSAL The EDA may deny any application if it is found not consistent with the goals of the city's Comprehensive Plan and Downtown Small Area Study and in relation to the project's overall impact on the community's economy. COMPLIANCE WITH MN BUSINESS SUBSIDY LAW 6 1 P a g e All developers/businesses receiving financial assistance from the City of Monticello shall be subject to the provisions and requirements set forth by the City's Business Subsidy Policy as amended and Minnesota Statutes Sections 116J.993 to 116J.995 (the "Minnesota Business Subsidy Law") if applicable. AGREEMENT TO PAY COSTS OF REVIEW It is the policy of the City of Monticello to require applicants to pay costs incurred by the city in reviewing and acting upon applications, so that these costs are not borne by the taxpayers of the city. These costs include all of the city's out-of-pocket costs for expenses, including the city's costs for review of the application by the city's Financial Consultant and City Attorney, or other consultants, recording fees, and necessary publication costs. The application processing fees cover anticipated costs; costs incurred above the application fee will be invoiced as they are incurred, and payment will be due within thirty (30) days. Any unused portion of the application fee will be returned to the applicant. If payment is not received as required by this agreement, the city may suspend the application review process and may deny the application for failure to comply with the requirements for processing the application. Payment for costs will be required whether the application is granted or denied. LOAN AGREEMENT If the application for Downtown Business Improvement loan is approved, the applicant will be required to enter into a loan agreement to proceed. The agreement will specify the terms and conditions of the loan as identified herein. A subordinate mortgage agreement may also be required. DISBURSEMENT OF LOAN FUNDS Upon loan application approval, applicants are required to provide executed contracts for work per the approved loan plans. Contracts shall be per the procedures and requirements herein. Loan funds will be disbursed based on completion of work. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Business Improvement Loan program must have a 7 1 P a g e Contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration number. B. BID/QUOTE SOLICITATION: To participate in the Downtown Business Improvement loan program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The Contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the Property Owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 3. Project Completion Date; 4. General Conditions; 5. Special Conditions; 6. Project Warranties; 7. Change Order Procedures; 8. Payment Terms; 9. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. Failure to begin work within the first 60 days will be grounds to terminate the loan agreement. The 180 -day time period shall not be exceeded except through the issuance of a change order. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. No pre -payments by the EDA are allowable for any reason. 2. Lien Waivers are required for all contractors and sub -contractors before payment will be made. 3. Final payment for all work completed, including any retainage amounts, will be made after all work by a contractor is completed, 8 1 P a g e the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. 4. Payments will be made only upon presentation of the following documents: • Billing Statement; • Lien Waiver; • Sworn Contractors Statement; • Completion Certificate. F. CHANGE ORDERS: Change orders to the approved loan plans require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved loan plans. COMMUNICATION Success for project depends on the completeness of applications and good communication between all parties. The EDA wishes to provide a smooth process and to expedite the completion of investments. Applicants should feel free to reach out to EDA staff with any questions at any time. 9 1 P a g e Monticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN BUSINESS IMPROVEMENT LOAN FUND APPLICATION 1. CONTACT INFORMATION Legal Name of Business: Project Site Address: City / State / Zip: Contact Person(s): Business Phone: Home Phone: Check One: Federal ID # Email: ❑ Proprietor ❑ Corporation 2. LOAN REQUEST Amount Requested: $ State ID # ❑ Partnership Total Project Cost: $ 11Page Please give a brief summary of the project: Please describe how this loan will impact your project: 3. FINANCING Project Costs Renovation and modernization of buildings, $ including building code, energy efficiency and accessibility compliance improvements. Exterior renovation of retail or commercial $ buildings, including windows, doors, siding, brick, stucco, masonry, painting, steps, parapets, roofing or structural roof components. Exterior improvements such as awnings, $ canopies, wall or projecting signage (not including digital signage), physical site landscaping improvements, and shutters. Parking improvements; must include a minimum $ of 40% of stalls for public use. Total Costs Comments: F 2 1 P a g e Proposed Funding Sources Bank Loan Private Fund Commitment Applicant Commitment Other: Total Financing: Collateral Assignments Description of Collateral To Bank: To Private Funding Commitment: To Other: Value of Collateral Land Building Machinery & Equipment Other F Position Book Value Cost Existing Liens 3 1 P a g e 4. PROJECT GOALS Which project goals will the proposed activities meet (check all that apply): The project contributes to the fulfillment of the city's approved and adopted economic development and/or redevelopment plans, including the Downtown Small Area Plan. The project prevents or eliminates blight. The project increases the local tax base. The project brings a structure into compliance with an existing building code violation. Detail in more detail how the project will meet the objectives specified: 5. PROJECT CONTACTS Financing Sources (lenders, private funding source, partners, etc...) Name Address Phone Name Address Phone Parent Company 4 1 P a g e Name Address Phone Others (Attorney, Accountant, etc.) Name Address Phone Name Address Phone 5 1 P a g e 6. ATTACHMENTS CHECK LIST Please attach the following: A) Written Business Plan: 1. Description of Business 2. Ownership 3. Management 4. Date Established 5. Products/Services 6. Future Plans B) Financial Statements for Past Three Years and Year to Date 1. Profit & Loss Statements 2. Balance Sheets C) Financial Projections for up to Three Years D) A Project Proforma to include: 1. Projected revenues, 2. Operating expenses, 3. Net Operating Income, and 4. Annual Debt Service and Loan Payments. D) Resume of Owner/Management E) Personal Financial Statements of Proprietor, Partners, Guarantors F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration G) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project H) Project Plans I) Project Quotes/Bids J) Processing Fee of $1000 7. AGREEMENT I / We certify that all information provided in this application is true and correct to the best of my/our knowledge. I / We authorize the city of Monticello EDA to check 6 1 P a g e credit references and verify financial and other information. I / We agree to provide any additional information as may be requested by the city. The undersigned has received the city's policy regarding the payment of costs of review, understands that reimbursement to the city of costs incurred in reviewing the application will be required, agrees to reimburse the city as required in the policy and make payment when billed by the city, and agrees that the application may be denied for failure to reimburse the city for costs as provided in the policy. APPLICANT SIGNATURE APPLICANT FAME (Print): DATE 7 1 P a g e Frameworks Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, they all fail. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. Framework: Open Space and Parks (Primary recommednations) • Improve Riverfront Parks to accommodate more programming and events • Redesign Walnut Street and River Street to allow for park extention during events • Convert vacant lots on Broadway to small pocket parks • Utilize River islands for additional natural park space • Create pedestrian refuges or enhanced building entry ways on the corners of blocks along Pine Street • Enliven open spaces with public art wherever possible Framework: Access and Circulation • Emphasize connectivity throughout the Core, with pedestrian and bike friendly streets, a complete sidewalk system, and connectivity to the in -town neighborhoods. • Promote a "complete streets" policy that balances the needs of all users in the Downtown. • Manage and improve the grid system to support connectivity and access throughout Downtown • Work with MnDOT to improve Pine Street for users of Downtown Monticello, including additional signals, maintaining the River Street signal and supporting an additional river crossing • Improve pedestrian crossings of Broadway at Walnut and Cedar to improve access to the Riverfront • Reconnect Walnut Street with River Street Framework: Development and Land Use • Riverfront District with destination restaurant and entertainment uses, as well as housing • Broadway District with shopfront retail and restaurant uses beneath housing and offices • In -town neighborhoods extend to Walnut and Cedar Street with new infill housing 2-4 stories (apartments and townhouses) Additional recomendations are included in the Framewoirks Section pages 25-32 :N 9 Open Space and Parks J 7� Access and Circulation Development and land Use Immediate Next Steps and Implementation 1. Improve the physical environment with streetscape, benches, programming, and art. 2. Bolster Broadway with a facade improvement program and retail recruitment. 3. Aggressively market development opportunities such as Block 52 and infill housing on Walnut and Cedar Street 4. Enact the appropriate policies, programs and incentives that enable the type of development described in the Plan. How is This Plan Related to the Embracing Downtown Plan and the Comprehensive Plan? In 2010, the City of Monticello completed the "Embracing Downtown Plan". The full area considered to be "Downtown Monticello"extends from Interstate I-94 to the Mississippi River, and generally from Cedar Street to Maple Street. The Embracing Downtown Plan was adopted as an appendix to the Comprehensive Plan. Changes in the retail marketplace overall, and more specifically market changes and reinvestments in downtown Monticello, have created a need to develop a new planning perspective for the core blocks of the downtown. This document therefore is an update to the 2008 Monticello Comprehensive Plan and to the Embracing Downtown Plan for the Downtown. This Plan will replace the Embracing Downtown plan as an appendix to the Comprehensive Plan. City of Monticello Downtown Small Area Plan I Executive Summary 0 Retail Vitality National Retail Trends and Context The retail landscape is changing rapidly. As lives get busier, people do more shopping online, and when they actually go out to shop people want an experience - it's about more than just purchasing a product. This sentiment was reflected throughout many public comments. However, traditional storefront -style retail areas still have something to offer. The small spaces they offer are ideal for local businesses and start-ups. They offer a place for businesses that can't afford the rents in newer retail developments, or can't fill the large spaces in auto -oriented strip areas. Stores and restaurants can be social places where customers interact with others. People want to go out to businesses where they see people enjoying themselves, and where they can run into friends and neighbors, while drinking, dining, working out, or purchasing daily items close to home. The opportunity for downtown Monticello is to provide people with an experience. A future downtown Monticello may provide a place where many more people are shopping, eating, sitting by the Mississippi River, walking, biking and socializing. In the context of this new national retail reality, downtown Monticello has the bones to be a destination retail area. Retail Vitality Assessment and Strategies An assessment of Broadway Street retail conditions was conducted as part of this plan. Selected findings and strategies from that assessment are presented here. Much more detail can be found in the Retail Vitality Background Report, found in the appendix of this plan. Storefront Density. Storefront density is a key metric, because streets that are walkable have numerous shopping and dining choices within a small area. Monticello is fortunate to have a high density of storefronts, compared with retail districts in peer cities. Strategy recommendation. • Establish development guidelines that ensure small store density is built into any new development in the storefront district. Store mix An assessment of store types shows that too many storefronts are rented by businesses that don't contribute to the vibrancy of the area because they don't have much walk-up traffic. There is also a real lack of food and beverage businesses, which serve as important anchors in many comparison areas. Strategy recommendation. • Initiate a retail recruitment program for the district, which would identify and attract key retail stores and food/beverage businesses, that will be complementary to the existing stores. Walkability Broadway Street is highly walkable. The buildings extend to the sidewalk and have few gaps between them. The streetscaping is a bit dated, but it offers pedestrian scale lighting and pedestrian refuges. Many of the buildings have large windows that front the street, which draw one's eyes into the store and enhance the ease of walking by. The greatest challenge to Broadway Street's walkability is the automobile traffic which serves as a barrier to circulating comfortably through the district. Strategy recommendation. • Work with MNDOT and the County to add stop signs and crosswalks at Broadway and Walnut. Evaluate and improve the Pine Street crossing from a pedestrian perspective. Building Conditions Building conditions in downtown Monticello vary greatly. Deferred maintenance is evident. Building renovation is expensive, even if it will usually be more cost effective than wholesale redevelopment. In buildings that are occupied and cash -flowing, it can be difficult to justify tackling these improvements on a strictly market basis. Some outside financial incentives will probably also be needed to advance this goal. In the short run, some public support for improving facades may offer the most bang for the buck. Strategy recommendation. • Establish a facade improvement program that offers financial support for investments that improve the visual appearance of buildings and district identity. Visual Identity Many successful retail streets have recognizable visual themes that make them memorable and vivid. The buildings in downtown Monticello vary greatly in style, size and condition. Treatments of windows, signage and displays varies greatly as well. Patterns that establish a sense of identity are lacking. Strategy recommendation • Businesses on Broadway Street could agree to use signage improvements as an initial vehicle for improving the perceived condition of the district, and presenting some common visual elements (color, pattern, shape, creativity, etc) that build a sense of identity. Business Mix in Storefront District 80% 60% 40% ■ 20% Marketing and Activation The Broadway Street district can be animated via marketing, events, and the activation of public spaces. Promotion programs are most successful when there is committed ownership by the business community. They can have endless forms and variations, limited only by the creativity of those involved. The physical environment can also be animated by sidewalk merchandise displays, sidewalk seating, and the creation of public space and outdoor seating between buildings Strategy recommendations Organize building and business owner interest, within an existing organization or a new one, to pursue a coordinated and creative retail vibrancy program on Broadway Street. Activate sidewalks and new plaza areas as much as possible—so that the vibrancy of the area is visible to passersby. is Businesses per 500 lineal feet general merchandise, apparel and accessories Business Density Business density is the concentration of businesses in an area. When businesses are concentrated it is easier to walk among them and to visit several during one trip. Higher density of businesses also creates a vibrant environment that can feel busy and active with signs, storefront displays and outdoor seating. City of Monticello Downtown Small Area Plan I Character Areas e Non-contributing ' Non - retail destination food and beverage ' neighborhood goods and services i T h T @ M OC � w .O O C v a o a o"> o d o d o V C .0 Y O V C Y O O W O C O W O O m a N U general merchandise, apparel and accessories Business Density Business density is the concentration of businesses in an area. When businesses are concentrated it is easier to walk among them and to visit several during one trip. Higher density of businesses also creates a vibrant environment that can feel busy and active with signs, storefront displays and outdoor seating. City of Monticello Downtown Small Area Plan I Character Areas e Non-contributing ' Non - retail destination food and beverage ' neighborhood goods and services general merchandise, apparel and accessories Business Density Business density is the concentration of businesses in an area. When businesses are concentrated it is easier to walk among them and to visit several during one trip. Higher density of businesses also creates a vibrant environment that can feel busy and active with signs, storefront displays and outdoor seating. City of Monticello Downtown Small Area Plan I Character Areas e Frameworks: Purpose Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacted. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors to act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. — Required Retail Frontage — Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Pa rk/Open S pace/Cemetery �♦ 1 .♦ ♦• 1 Core Study Area Frameworks: Land Use and Development Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail/restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas N Downtown Small Area Study Implementation Workshop November 16, 2017 _._._._._._._._._._._..._._._._._._._._._._._._ Participants City Council: Brian Stumpf, Bill Fair, Jim Davidson, Charlotte Gabler, Lloyd Hilgart EDA: Tracy Hinz, Steve Johnson, Jon Morphew, Bill Tapper Parks & Recreation: Nancy McCaffrey, Larry Nolan Planning Commission: Katie Peterson Guests: Clay Sawatzke, Michele Hertwig Staff: Jeff O'Neill, Angela Schumann, Jim Thares, Jacob Thunander, Tom Pawelk, Rachel Leonard, Jennifer Schreiber Workshop Purpose Set a foundation for realizing the downtown plan by encouraging the various commissions to cooperatively review the elements of the plan, prioritize the components, and strategize implementation. Prioritization Exercise Organized by Highest Ranked Projects: Redevelopment: Pursue signature redevelopment on Block 52 with market rate housing and a destination restaurant that overlooks the park. Public Realm Improvements: Redesign riverfront parks to include more active events and programming in West Bridge Park (amphitheater, water feature, concessions) and passive uses in East Bridge Park. Broadway Street Commercial Vitality: Broadway Street Environment: Develop small pocket parks on vacant properties along Broadway, offering outdoor seating, and pedestrian connections to parking. Curb extensions at Walnut and Broadway to provide space for landscaping, seating, and gathering. Identity Building: Build Downtown's brand and identity by identifying the downtown core as the Broadway Walnut area, and naming it. Pursue marketing initiatives to build the new brand. Business Support & Development: Establish fagade improvement programs that offer financial support for improving building appearance and district identity. Organized by Survey Category High -Impact: 1. Pursue signature redevelopment on Block 52 2. Redesign riverfront parks... 3. Establish fagade improvement programs... Low -Hanging Fruit: 1. Improve bridge underpass... 2. Develop small pocket parks... 3. Curb extensions at Walnut & Broadway Personal Interest: 1. Redesign riverfront parks... 2. Pursue Signature redevelopment on Block 52... 3. Reconnected Walnut Street to River Street... East & West Bridge Park Improvements Foundation: Location on the river, high visibility, varied topography, existing assets, capable parks staff, dedi- cated volunteers, popular community events. Challenges: Limited automobile & pedestrian access, perception of noise and actual noise, potential river island flooding, limitations of adjacent land uses, ma- ture trees can block views, hard to change what's al- ready popular. Mitigation: Acquire surrounding land to allow redevelop- ment and growth, connect Walnut Street to River Street, use signage and rebranding to encourage ex- ploring downtown and connecting with the parks, en- hance underutilized assets like the southeast stairs and bridge underpass. Leadership: Parks staff, Park & Recreation Commission, City Council, and EDA with redevelopment. Key Decisions: Park design, connection of Walnut St. to River St, reconstruction of River St, redevelopment of Block 52. Priority Tasks: Park design, remove understory plants for visibility to the river, programming & events, connect Walnut St. to River St. Block 52 Redevelopment Foundation: City owns a portion, another property for sale, high visibility, beautiful view, parks complement, EDA is engaged in acquisition. Challenges: Cost of acquiring property, getting the right developer, potential contamination, community confu- sion of public purpose, competition with completing Block 34, relocation costs. Mitigation: Continue acquiring land and empower eco- nomic development manager to meet with developers. Leadership: EDA for site control and incentives, staff for recruitment and negotiating, additional city staff from planning, public works, Wright County, etc. Key Decisions: Preliminary development agreement, zoning ordinance changes, incentives. Priority Tasks: Design for Walnut Street connection to River St., redesign West Bridge Park parking, acquire properties, reach out to developers to find the right partner, continue building relationships and communi- cating with property owners. Downtown Housing Development Foundation: Strong market, regional and local amenities, demographics, walkability, accessibility, site control, lender and council support, developers interested, jobs nearby. Challenges: Relocation development costs, water table, cost of quality construction, noise, traffic access, size of block divisions, developers have many options, zoning not currently aligned with plan, existing property & business owners. Mitigation: Gather better information on water table, shared equity solutions, create one TIF district, buying options. Leadership: EDA to lead land acquisition, TIF program, coordination with lenders & developers. Planning Com- mission to lead zoning review. City Council responsible for final approvals. Key Decisions: Determining one site or many, zoning approved that balances flexibility with predictability. Priority Task: Create package or feasibility for several sites so the city knows its limits and capacity, include aesthetic design expectations, get a more detailed un- derstanding of the downtown market, engage in out- reach to developers with marketing materials. Activating Broadway Street's Commercial Vitality Foundation: Proximity to parks and river, some business- es already making positive changes, changes will en- courage people to visit, opportunity to build relation- ships, high traffic area. Challenges: Not all buildings up to code, cost of rehabili- tation, lack of space for outdoor seating, lack of con- centration, need to agree on fagade style, traffic, busi- ness mix. Mitigation: Assess the state of properties, survey and encourage stakeholder participation, offer financial in- centives, help 1-2 businesses start to encourage others. Survey property owners to guide the focus. Leadership: Existing business group, Chamber, City Council, EDA, and city staff. Priority Tasks: Determine ownership of every parcel with contact information, reach out to property and busi- ness owners for their ideas, identify and build alliances, determine design standards. Other: Encourage EDA to build relationships. EDA: 01/10/18 11. Consideration to adopt Resolution 2018-01 approving a Purchase Agreement for Acquisition of a vacant parcel located at 224 East 4th Street, PID155-019-007050 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider purchasing a vacant land parcel located at 224 East 4th Street. The parcel is located in a residential neighborhood and is adjacent to an undeveloped City street right of way (Palm Street). The site is flat and approximately 22,101 sq. ft. in size. It backs up to the BNSF Rail line to the south. Wright County has a 2018 valuation of $32,000 for this parcel. The seller has the property listed for $80,000. They accepted the EDA offer of $71,950. The lot is currently zoned R-2 which allows for development of a single family home or a twin home/duplex. Purchase of the parcel means that the EDA would hold this lot for future redevelopment plans. The exact timeline of such redevelopment is not yet determined. There may also be other properties in this area that if acquired that would facilitate assembly of a large land tract that could be suitable for a townhome or patio home development. Attached is a Purchase Agreement and EDA Resolution 2018-1 for the EDA's consideration. In February, the Planning Commission will be asked to consider the acquisition in conformance with the Comprehensive Plan as required by state statutes. This contingency is reflected in the purchase agreement. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution 2018-1 authorizing the purchase of the vacant parcel of land located at 224 East 4th Street. 2. Motion to deny approval of Resolution 2018-1 authorizing the purchase of the vacant parcel of land located at 224 East 4th Street. 3. Motion to table consideration of the purchase and direct staff accordingly. C. STAFF RECOMMENDATION: The broker of the property contacted staff to inquire about the EDA's interest in purchasing this lot. The ownership group is motivated to sell and recently lowered the list price substantially; to $80,000. The EDA offer of $71,900 was accepted by the seller. The EDA should establish a public purpose when purchasing property which has been identified in the draft resolution. City staff will support the desired direction of the EDA in this matter. D. SUPPORTING DATA: a. Resolution 2018-01 b. Purchase Agreement c. County Property Information and Aerial Photo of Property d. Zoning Map EDA RESOLUTION NO. 2018-1 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 224 EAST 4TH STREET BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and Raymond Fuller, as Personal Representative of the Estate of Marie Jamison (the "Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property located at 224 East 4th Street (the "Property") in the downtown area of the City of Monticello (the "City") from the Seller for economic redevelopment purposes related to the revitalization of the downtown area. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a total purchase price of $71,950.00 plus related closing costs. 1.03. The Authority finds that acquisition of the Property conforms to the City of Monticello Redevelopment Priorities and Policies, as approved by the City and Authority, and will facilitate the economic redevelopment and revitalization of the downtown area of the City. 1.04. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Planning Commission of the City will meet on February 6, 2018, to review the proposed acquisition and its conformity to the City's Comprehensive Plan. Section 2. Purchase Agreement Approved. 2.01. The Authority hereby approves the Purchase Agreement in substantially the form presented to the Authority, subject to the Planning Commission's finding that the acquisition of the Property conforms to the Comprehensive Plan and to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. Error! Unknown document property name. Approved this 10th day of January, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director EXHIBIT A PROPERTY Lots 5 and 6 in Block "G" in A.C. Riggs Addition to the Townsite of Lower Monticello, Wright County, Minnesota. PID: 155019007050 Error! Unknown document property name. PURCHASE AGREEMENT 224 East 4' Street, Monticello, MN 1. PARTIES. This purchase agreement (the "Purchase Agreement") is made this day of January, 2018 (the "Effective Date"), by and between Raymond Fuller, as Personal Representative of the Estate of Marie Jamison, single at the time of death (the "Seller") and the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota (the "Buyer"). 2. SUBJECT PROPERTY. The Seller is the owner of that certain real estate (the "Property") located at 224 East 4t' Street in Monticello, Wright County, Minnesota and legally described in Exhibit A attached hereto. 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, the Buyer offers and agrees to purchase and the Seller agrees to sell the Property pursuant to the terms and conditions of this Purchase Agreement. 4. CONTINGENCIES. This Purchase Agreement is contingent upon the following: A. Approval of this Purchase Agreement by the Buyer's governing body; B. Written findings by the Planning Commission of the City of Monticello that the acquisition of the Property conforms to the City Comprehensive Plan; C. The Buyer conducting an investigation on the Property and receiving a report that is satisfactory to the Buyer as provided in Section 8 of this Purchase Agreement; D. Condition of title being satisfactory to the Buyer following the Buyer's examination of title as provided in Section 11 of this Purchase Agreement. The Buyer shall have until the Closing Date (as defined in Section 7 of this Purchase Agreement) to remove the foregoing contingencies. The contingencies are solely for the benefit of the Buyer and Contingencies B and C may be waived by the Buyer. If the contingencies are duly satisfied or waived, then the Buyer and the Seller shall proceed to close the transaction as contemplated herein. If, however, if one or more of the contingencies is not satisfied, or is not satisfied on time, and is not waived by the Buyer, this Purchase Agreement shall thereupon be void, at the option of the Buyer. If this Purchase Agreement is voided by the Buyer, the Buyer and the Seller shall execute and deliver to each other a termination of this Purchase Agreement. 5. VACANT LAND/NO PERSONAL PROPERTY INCLUDED IN SALE. The Property is vacant land and there are no items of personal property included in this sale. 6. PURCHASE PRICE AND TERMS: A. CONSIDERATION: The Buyer shall pay the Seller $71,950.00 for the Property. 5142580 MMI MN325-36 B. TERMS: 1. Earnest Money. No earnest money is payable under this Purchase Agreement. 2. Balance of Payment. The entire purchase price of $71,950.00, as adjusted for closing pro -rations and adjustments as hereinafter provided, shall be paid to the Seller by the Buyer on the Closing Date. 7. CLOSING DATE. The closing of the sale of the Property shall take place on or before April 30, 2018 (the "Closing Date"), unless otherwise mutually agreed by the parties. The closing shall take place at Monticello City Hall, 505 Walnut Street, Monticello, MN or such other location as mutually agreed upon by the parties. 8. DUE DILIGENCE; ACCESS AND INSPECTION. Promptly upon execution of this Purchase Agreement, the Seller shall deliver to Buyer copies of any available environmental reports or studies on the Property known to Seller. Seller grants to Buyer a license to enter onto the Real Property at any time after the Effective Date, upon reasonable prior notice to Seller, at Buyer's sole cost, expense and risk, to conduct such investigations of the Property as Buyer in its sole discretion may desire. Buyer shall have a period of thirty (30) days after the Effective Date (the "Inspection Period") to complete such inspections and examine the Records and to notify Seller that Buyer, in its sole discretion, has found the condition of the Property to be unsatisfactory. In the event that Buyer gives such notice prior to the expiration of the Inspection Period, then this Agreement shall terminate. Buyer shall promptly restore the Property to substantially the same condition in which it existed immediately prior to any physical tests conducted by or on behalf of Buyer. Buyer shall indemnify and hold Seller and Property harmless from all loss, cost, damage and expense, including reasonable attorneys' fees, which Seller or the Property may suffer or incur as a result of such entry by Buyer, including without limitation the cost of defending against any claim for a statutory lien against the Real Property resulting from labor, materials, equipment, skill or services furnished with respect to the Property at the request of Buyer. This indemnification provision shall survive any termination of this Agreement. 9. DOCUMENTS TO BE DELIVERED AT CLOSING. The Seller agrees to deliver the following documents to the Buyer at closing and to Buyer's attorney for review at least five business days prior to closing: A. All documents required under the Uniform Probate Code to enable Seller to provide a duly recordable warranty deed conveying fee simple title to the Property to the Buyer, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to the Buyer; B. An affidavit from the Seller sufficient to remove any exception in the Buyer's policy of title insurance for mechanics' and materialmens' liens and rights of parties in possession; 5142580 MMI MN325-36 2 C. A non -foreign affidavit, properly executed, containing such information as is required by the Internal Revenue Code Section 1445 and its regulations; D. A Minnesota Well Disclosure Certificate delivered with this Purchase Agreement, or, if there is no well on the Property, this Purchase Agreement and the warranty deed must include the following statement "the Seller certifies that the Seller does not know of any wells on the described real Property;" and E. Any notices, certificates, and affidavits regarding any private sewage systems, underground storage tanks, and environmental conditions as may be required by Minnesota statutes, rules or ordinances. F. Any other documents reasonable required by the Buyer's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 10. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. The Seller shall be responsible for all real estate taxes, including any deferred real estate taxes, penalties or interest, for the years prior to the year in which closing occurs. The Buyer and the Seller shall prorate as of the Closing Date the real estate taxes for the Property that are due and payable in the year of closing. B. The Seller shall pay all special assessments levied or pending against the Property as of the Closing Date, including special assessments certified for payment with the real estate taxes and all deferred assessments. 11. EXAMINATION OF TITLE. The Buyer's examination of title to the Property shall be conducted as follows: A. SELLERS' TITLE EVIDENCE. Promptly after execution of this Purchase Agreement by the Buyer's governing body, the Seller shall provide the abstract of title and/or any prior title policy covering the Property. Upon receipt of such title evidence, Buyer shall order a title commitment for title insurance, at Buyer's sole expense. B. BUYER'S OBJECTIONS. The Buyer shall make written objections (the "Objections") to the form or contents of the title commitment or condition of title within 10 business days after receipt of the title commitment and this executed Purchase Agreement. The Buyer's failure to make Objections within such time period shall constitute waiver of the Objections. The Seller shall have 90 days after receipt of the Objections to cure the Objections, during which period the closing will be postponed, if necessary. The Seller shall use good faith efforts to correct any Objections. If the Objections are not cured within such 90 -day period, the Buyer will have the option to do either of the following: 5142580 MMI MN325-36 3 1. Terminate this Purchase Agreement, provided that if termination is due to the Sellers' failure to cure title objections or any other default of the Seller; or 2. Cure the Objections at the Buyer's expense and proceed to Closing. 12. CLOSING COSTS AND RELATED ITEMS. The Seller shall be responsible for the following closing costs and related items: (1) all recording fees and charges relating to the filing of any instrument required to make title marketable; (2) recording fee for the Warranty Deed; (3) state deed tax, conservation fee or other federal, state or local documentary or revenue stamps or transfer tax with respect to the deed to be delivered by the Seller; (4) one-half of the closing fees charged by the title company engaged in connection with this Purchase Agreement; (5) Sellers' own legal and accounting fees associated with this transaction. The Buyer shall be responsible for the following closing costs and related items: (1) the cost of any survey of the Property required by the Buyer; (2) any fees incurred for the title commitment; (3) the cost of all premiums required for issuance of the title insurance policy; (4) the fees for any soil tests, environmental assessments, inspection reports, appraisals, or other tests or reports ordered by the Buyer; (5) one-half of the closing fees charged by the title company engaged in connection with this Purchase Agreement (6) Buyer's own legal and accounting fees associated with this transaction. 13. POSSESSION/CONDITION OF PROPERTY. The Seller shall deliver possession of the Property to the Buyer on the Closing Date in the condition as the Property existed on the date of execution of this Purchase Agreement. 14. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. The Seller represents that there is no individual sewage treatment system on or serving the Property. 15. WELL DISCLOSURE. gSeller certifies that the Seller does not know of any wells on the described real property. OR ❑ A completed Well Disclosure Certificate accompanies this Purchase Agreement as Exhibit B. OR ❑ A completed Well Disclosure Certificate has been electronically filed as WDC number: 16. SELLERS' REPRESENTATIONS AND WARRANTIES. The Seller hereby represents and warrants to the Buyer as of the Closing Date that: A. Title. The Seller has good, indefeasible and marketable fee simple title to the Property. B. Intentionally left blank. C. Defects. The Seller is unaware of any latent or patent defects in the Property, 5142580 MMI MN325-36 4 such as sinkholes, weak soils, unrecorded easements and restrictions. D. Legal Compliance. The Seller has complied with all applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property and the Seller shall continue to comply with such laws, ordinances, regulations, statutes, rules and restrictions. E. Legal Proceedings. There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof; and the Seller has no knowledge that any such action is presently contemplated. F. Refuse and Hazardous Materials. The Seller has not performed and has no actual knowledge of any excavation, dumping or burial of any refuse materials or debris of any nature whatsoever on the Property, other than those disclosed by the Seller to the Buyer as of the date of this Purchase Agreement. The Seller has not received any notice or advice from any governmental agency or any prior owner of the Property or any tenant, subtenant, occupant, prior tenant, prior subtenant, prior occupant or person with regard to Hazardous Materials on, from or affecting the Property. The term "Hazardous Materials" as used herein includes, without limitation, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by any federal, state or local environmental law, ordinance, rule, or regulation including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S. C. Section 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq.) and in the regulations adopted and publications promulgated pursuant thereto. G. Legal Capacity. The Seller has the legal capacity to enter into this Agreement. The Seller has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against the Seller within the last year. H. Leases. There are no third parties in possession of the Property, or any part thereof; and there are no leases, oral or written, affecting the Property or any part thereof. I. Foreign Status. The Seller is not a "foreign entity" as such term is defined in the Internal Revenue Code. 5142580 MMI MN325-36 5 J. Methamphetamine Production. To the best of the Sellers' knowledge, methamphetamine production has not occurred on the Property. The Sellers' representations and warranties set forth in this Section shall be continuing and are deemed to be material to the Buyer's execution of this Purchase Agreement and the Buyer's performance of its obligations hereunder. All such representations and warranties shall be true and correct on and as of the Closing Date with the same force and effect as if made at that time; and all of such representations and warranties shall survive the closing and any cancellation or termination of this Purchase Agreement, and shall not be affected by any investigation, verification or approval by any party hereto or by anyone on behalf of any party hereto. The Seller agrees to defend, indemnify and hold the Buyer harmless for, from, and against any loss, costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim, demand, action or cause of action be instituted, made or taken, which is contrary to or inconsistent with the representations or warranties contained herein. 17. RELOCATION BENEFITS; INDEMNIFICATION. The Seller acknowledges that Seller is not being displaced from the Property as a result of the transaction contemplated by this Purchase Agreement and that Seller is not eligible for relocation assistance and benefits and that the Purchase Price includes compensation for any and all relocation assistance and benefits for which they may be eligible. The provisions of this paragraph shall survive closing of the transaction contemplated by this Purchase Agreement. 18. TENANTS. The Seller warrants that there are no tenants on the Property with a lawful leasehold interest. In the event any tenant comes forward and claims an interest in the Property at the time of or following the purchase, the Seller agree to fully indemnify the Buyer for any and all costs associated with terminating such tenancy and for any and all relocation assistance and benefits that may be due to such tenant together with attorneys' fees that the Buyer would have to incur in connection with legal action required to resolve any relocation assistance or benefits dispute with such tenant. For Sections 17 and 18 of this Purchase Agreement, "relocation assistance and benefits" shall have the meaning ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. Sections 4601- 4655 (the federal URA) and the regulations implementing the federal URA, 49 C.F.R. Sections 24.1-24.603. 19. BROKER COMMISSIONS. Seller has engaged Wright Sherburne Realty as its broker in this transaction. Seller shall be responsible for paying its broker's fees. Seller and Purchaser hereby represent and warrant to the other party that, in connection with this transaction, no other third -party broker or finder has been engaged or consulted by it or through such party's actions (or claiming through such party) and is entitled to compensation as a consequence of this transaction. Seller and Purchaser agree to indemnify, defend, and hold the other party harmless against any and all claims of brokers, finders, or the like, and against the claims of all third parties, claiming any right to commission or compensation by or through acts of the indemnifying party or its partners, agents, or affiliates in connection with this Agreement. The indemnifying party's indemnity obligations shall include all damages, losses, costs, liabilities, and expenses, including reasonable attorneys' fees and litigation costs, which may be incurred by the other party. 5142580 MMI MN325-36 6 20. ENTIRE AGREEMENT. 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. 21. AMENDMENT AND MODIFICATION. No amendment, modification or waiver of any condition, provision or term of this Purchase Agreement shall be valid or have any effect unless made in writing, is signed by the party to be bound and specifies with particularity the extent and nature of such amendment, modification or waiver. Any waiver by either parry of any default by the other party shall not affect or impair any right arising from any previous or subsequent default. 22. BINDING EFFECT. This Purchase Agreement binds and benefits the parties and their successors and assigns. 23. NOTICES. Any notice, demand, request or other communication which may or shall be given or served by the Seller on the Buyer or by the Buyer on the Seller, shall be deemed has been given or served on the date the same is hand delivered or the date of receipt or the date of delivery if deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows: A. If to Seller: Raymond Fuller Personal Representative of the Estate of Marie Jamison 2670 99t' Street NE Monticello, MN 55362 With a copy to: Jim Fleming Fleming Law Offices, P.A. P.O. Box 1569 Monticello, MN 55362 B. If to Buyer: City of Monticello Economic Development Authority Attention: Executive Director 505 Walnut Street, Suite 1 Monticello, MN 55362 With a copy to: Martha Ingram Kennedy & Graven, Chartered 200 South Sixth St., Suite 470 Minneapolis, MN 55402 or such other address as either parry may give to another party in accordance with this Section. 5142580 MMI MN325-36 7 24. NO PARTNERSHIP OR JOINT VENTURE. Nothing in this Purchase Agreement shall be construed or interpreted as creating a partnership or joint venture between the Seller and the Buyer relative to the Property. 25. CUMULATIVE RIGHTS. Except as may otherwise be provided herein, no right or remedy herein conferred on or reserved by either party is intended to be exclusive of any other right or remedy provided by law, but such rights and remedies shall be cumulative in and in addition to every other right or remedy given herein or elsewhere or existing at law, equity or by statute. 26. ATTORNEYS' FEES. If either party commences an action against the other to enforce any of the terms of this Purchase Agreement, or because of the breach by either party of the terms hereof, the prevailing party shall be entitled to its costs and expenses, including reasonable attorneys' fees, incurred in connection with the prosecution or defense of such matter. 27. DEFAULT; REMEDIES; SPECIFIC PERFORMANCE. If the Buyer defaults in any of the agreements herein, the Seller may terminate this Purchase Agreement. If this Purchase Agreement is not so terminated, the Buyer or the Seller may seek actual damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; provided that any action for specific enforcement must be brought within six months after the date of the alleged breach. 5142580 MMI MN325-36 8 IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date written above. SELLER Raymond Fuller, as Personal Representative of the Estate of Marie Jamison BUYER CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director 5142580 MMI MN325-36 9 EXHIBIT A Legal Description of the Property Lots 5 and 6 in Block "G" in A.C. Riggs Addition to the Townsite of Lower Monticello, Wright County, Minnesota. PID: 155019007050 5142580 MMI MN325-36 A-1 ' bea ;on Wright County, MN Summary Parcel ID 155019007050 Property Address 224 4TH ST E Primary Taxpayer MONTICELLO Sec/Twp/Rng 11-121-025 Brief Tax Description Sect -11 Twp -121 Range -025 A C RIGGS'ADDN LOWER MONTI Lot -005 Block-OOG LTS 5&6 BLK G Marie Jamison (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 206- (NON-HSTD) RES 1-3 UNITS District (1101) 1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 01/01/0001 Owner Primary Taxpayer Marie Jamison %Raymond Fuller 2670 99th St NE Monticello, MN 55362 GIS Acreage Parcel: 155019007050 Acres: 0.51 Acres USAB: 0.51 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 22,101.36 Land Unit Eff Seq Description Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Adj 4 Rate Div % Value 1 RES I UNIMPROVED LOT 0 0 0 1.000 LT 32,000.000 1.00 1.00 1.00 1.00 32,000.000 1.000 32,000 Tota 1 1.000 32,000 Valuation 2017 Assessment 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $32,000 $30,000 $30,000 $25,000 $20,000 + Estimated Building Value $0 $0 $0 $0 $0 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $32,000 $30,000 $30,000 $25,000 $20,000 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $32,000 $32,000 + Building Value $0 $0 + Extra Features Value $0 $0 = Total Value $32,000 $32,000 % Change 0.00 % 6.67% `laxation 2017 Payable 2016 Payable 2015 Payable 2014 Payable 2013 Payable Total Estimated Market Value $30,000 $30,000 $25,000 $20,000 $20,000 - Excluded Value $0 $0 $0 $0 $0 - Homestead Exclusion $0 $0 $0 $0 $0 = Taxable Market Value $30,000 $30,000 $25,000 $20,000 $20,000 Net Taxes Payable $401.12 $414.00 $352.00 $330.00 $326.00 + Special Assessments $664.88 $0.00 $0.00 $0.00 $0.00 = Total Taxes Payable $1,066.00 $414.00 $352.00 $330.00 $326.00 Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1409091 9/29/2017 2017 $0.00 $0.00 $0.00 ($533.00) 1372+83 5/8/2017 2017 $0.00 $0.00 $0.00 ($533.00) 1323695 10/11/2016 2016 $0.00 $0.00 $0.00 ($207.00) 1272456 5/2/2016 2016 $0.00 $0.00 $0.00 ($207.00) 1226891 10/6/2015 2015 $0.00 $0.00 $0.00 ($176.00) 1182411 5/5/2015 2015 $0.00 $0.00 $0.00 ($176.00) 1150401 10/20/2014 2014 $0.00 $0.00 $0.00 ($165.00) 1110195 5/15/2014 2014 $0.00 $0.00 $0.00 ($165.00) 1051207 10/8/2013 2013 $0.00 $0.00 $0.00 ($163.00) 1003825 5/3/2013 2013 $0.00 $0.00 $0.00 ($163.00) 957106 10/10/2012 2012 $0.00 $0.00 $0.00 ($281.00) 903627 4/23/2012 2012 $0.00 $0.00 $0.00 ($20.00) 902789 4/18/2012 2012 $0.00 $0.00 $0.00 ($261.00) Photos Map No data available for the following modules: Land GA/RP, Buildings, Extra Features, Sales, Transfer History, Sketches. Maps and documents made available to the public by Wright County are not legally recorded maps nor surveys and are not intended to be used as such. C"* Last Data Upload: 11/15/2017 5:11:18 AM Schneider Developed by The Schneider Corporation 224 East 4th Street January 4, 201 4:,, �, r , 1 inch = 752 feet Performance Agriculture - Single Family High Density Highway Light Industrial Based Overlay District Open Space and 2 Family Residential Business M Heavy Industrial Residential Residential Manufactured Regional Special Use Amentities Residential - Home Park Bu&Mft1§ttman Planned Unit District CITY OF District Planned Unit District Central Development MOritlCellO MN Wild and Single Family Development Neighborhood Community ROW Scenic River Residential Medium Density . Business District Split Districts Traditional Residential Limited Industrial and Freeway Bonus Neighborhood Business Business District Residence Area Campus Distri(;4apPoweredbyDataLink from WSB & Associates EDA: 01/10/18 12. Consideration to adopt Resolution 2018-02 approving a Purchase Agreement for Acquisition of a residential property located at 255 East Broadway PID #s 155010067100 and 155040002101 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider purchasing a vacant residential property located at 255 East Broadway Avenue. The property is situated next to EDA owned land that is being marketed for redevelopment. That parcel is a 1.12 acre site formerly known as the Fair Garden Center. The subject lot is the only residential parcel in this block. Just to the east of it is the Conroy Law Office building. The subject lot is unique in that it consists of a primary rectangular parcel and also a remnant triangular parcel. In acquiring the 10,195.19 sq. ft. residential lot (both the primary and the remnant parcels), the EDA could combine it with the 1.12 acre property thus making it a more attractive redevelopment site. There is currently a two-story house on the property that was built in 1920. If the EDA acquires this property, the house will require demolition at some point in the future. Services of a demolition contractor can be obtained fairly easily. The site elevation matches that of the EDA property adjacent to it. The property fronts on East Broadway Avenue and is an attractive site for multi -family development. The current zoning for this parcel is CCD, F-2. Residential uses in the sub -district currently require a conditional use permit, and as such the property is a legal, conforming use until such time as an expansion or other use is proposed. The Downtown Small Area Study recommends that this site, combined with the 1.12 acre EDA parcel, be redeveloped as a multi -family use. Wright County has placed a valuation of $107,500 on this property. The seller accepted the EDA offer of $106,000. If the EDA acquires this property, it means that the EDA would hold this lot for future redevelopment plans with the adjacent 1.12 acre parcel to the west. The exact timeline of such redevelopment is not yet determined. Attached is a Purchase Agreement and EDA Resolution 2018-2 for the EDA's consideration. In February, the Planning Commission will be asked to consider whether the acquisition is in conformance with the Comprehensive Plan as required by state statute. This contingency is reflected in the purchase agreement. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution 2018-2 authorizing the purchase of the vacant parcel of land located at 255 East Broadway. 2. Motion to deny approval of Resolution 2018-2 authorizing the purchase of the vacant parcel of land located at 255 East Broadway. 3. Motion to table consideration of the purchase and direct staff accordingly. EDA: 01/10/18 C. STAFF RECOMMENDATION: The EDA offer of $106,000 appears to be a fair price relative to the County valuation of $107,500. The EDA's offer was accepted by the seller. The EDA should establish a public purpose when purchasing property which has been identified in the draft resolution. City staff will support the desired direction of the EDA in this matter. D. SUPPORTING DATA: a. Resolution 2018-02 b. Purchase Agreement c. Property Information and Aerial Photo of Rectangular Parcel #1 d. Property Information and Aerial Photo of Triangular Parcel #2 e. Downtown Small Area Study Illustration f. Zoning Map W EDA RESOLUTION NO. 2018-2 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 255 EAST BROADWAY STREET BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and Owen Gossett and Erika K. Gossett (together, the "Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property located at 255 East Broadway Street (the "Property") in the downtown area of the City of Monticello (the "City") from the Seller for economic redevelopment purposes related to the revitalization of the downtown area. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a total purchase price of $106,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property conforms to the City of Monticello Redevelopment Priorities and Policies, as approved by the City and Authority, and will facilitate the economic redevelopment and revitalization of the downtown area of the City. 1.04. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Planning Commission of the City will meet on February 6, 2018, to review the proposed acquisition and its conformity to the City's Comprehensive Plan. Section 2. Purchase Agreement Approved. 2.01. The Authority hereby approves the Purchase Agreement in substantially the form presented to the Authority, subject to the Planning Commission's finding that the acquisition of the Property conforms to the Comprehensive Plan and to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. Error! Unknown document property name. Approved this 10th day of January, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director EXHIBIT A PROPERTY Lot Ten (10), in Block B of the Townsite (now known as City) of Monticello and that part adjoining said Lot Ten (10) described as follows: Beginning at the Southeast corner of said Lot Ten (10); thence Easterly along the Northerly line of Broadway Street to a point distant 57.00 feet Westerly of the Southwest corner of Lot One (1), in Block B of the Townsite of Lower Monticello; thence Northerly, parallel with the Westerly line of said Lot One (1), a distance of 165.00 feet to the Southerly line of Lot Eleven (11) of said Block B of the Townsite of Monticello; thence Westerly along said Southerly line to the Northeast corner of said Lot Ten (10); thence Southerly along the Easterly line of said Lot Ten (10) to the point of beginning, according to the plat and survey thereof on file and of record in the office of the County Recorder in and for Wright County, Minnesota. AND Lot Ten (10) in Block B of Monticello and those parts of Lot Two (2), Block B, Lower Monticello and Palm Street of Monticello according to the recorded plat thereof lying Northwesterly of a line drawn southwesterly from a point on the northeasterly line of said Lot Two (2) distant 57.00 feet northwesterly from the most easterly corner of said Lot Two (2) to a point on the Northeasterly line of Broadway Street of said Monticello distant 57.00 feet northwesterly from the most southerly corner of said Lot Two (2). Subject Property Address: 255 E. Broadway Street Monticello, MN 55362 Error! Unknown document property name. PURCHASE AGREEMENT 255 East Broadway, Monticello, MN 1. PARTIES. This purchase agreement (the "Purchase Agreement") is made this day of January, 2018 (the "Effective Date"), by and between Owen Gossett and Erika K. Gossett, married to each other (the "Seller") and the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota (the "Buyer"). 2. SUBJECT PROPERTY. The Seller is the owner of that certain real estate (the "Property") located at 255 East Broadway Street in Monticello, Wright County, Minnesota and legally described in Exhibit A attached hereto. 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, the Buyer offers and agrees to purchase and the Seller agrees to sell the Property pursuant to the terms and conditions of this Purchase Agreement. 4. CONTINGENCIES. This Purchase Agreement is contingent upon the following: A. Approval of this Purchase Agreement by the Buyer's governing body; B. Written findings by the Planning Commission of the City of Monticello that the acquisition of the Property conforms to the City Comprehensive Plan; C. The Buyer conducting an investigation on the Property and receiving a report that is satisfactory to the Buyer as provided in Section 8 of this Purchase Agreement; D. Condition of title being satisfactory to the Buyer following the Buyer's examination of title as provided in Section 11 of this Purchase Agreement. The Buyer shall have until the Closing Date (as defined in Section 7 of this Purchase Agreement) to remove the foregoing contingencies. The contingencies are solely for the benefit of the Buyer and Contingencies C and D may be waived by the Buyer. If the contingencies are duly satisfied or waived, then the Buyer and the Seller shall proceed to close the transaction as contemplated herein. If, however, if one or more of the contingencies is not satisfied, or is not satisfied on time, and is not waived by the Buyer, this Purchase Agreement shall thereupon be void, at the option of the Buyer. If this Purchase Agreement is voided by the Buyer, the Buyer and the Seller shall execute and deliver to each other a termination of this Purchase Agreement. 5. AS IS CONDITION/NO PERSONAL PROPERTY INCLUDED IN SALE. The Property is improved with a house in as is condition and there are no items of personal property included in this sale. 6. PURCHASE PRICE AND TERMS: A. CONSIDERATION: The Buyer shall pay the Seller $106,000.00 for the Property. 514380v1 CBR MN325-37 B. TERMS: 1. Earnest Money. No earnest money is payable under this Purchase Agreement. 2. Balance of Payment. The entire purchase price of $106,000.00, as adjusted for closing pro -rations and adjustments as hereinafter provided, shall be paid to the Seller by the Buyer on the Closing Date. 7. CLOSING DATE. The closing of the sale of the Property shall take place on or before February 28, 2018 (the "Closing Date"), unless otherwise mutually agreed by the parties. The closing shall take place at Monticello City Hall, 505 Walnut Street, Monticello, MN or such other location as mutually agreed upon by the parties. 8. DUE DILIGENCE; ACCESS AND INSPECTION. Promptly upon execution of this Purchase Agreement, the Seller shall deliver to Buyer copies of any available environmental reports or studies on the Property known to Seller. Seller grants to Buyer a license to enter onto the Real Property at any time after the Effective Date, upon reasonable prior notice to Seller, at Buyer's sole cost, expense and risk, to conduct such investigations of the Property as Buyer in its sole discretion may desire. Buyer shall have a period of thirty (30) days after the Effective Date (the "Inspection Period") to complete such inspections and examine the Records and to notify Seller that Buyer, in its sole discretion, has found the condition of the Property to be unsatisfactory. In the event that Buyer gives such notice prior to the expiration of the Inspection Period, then this Agreement shall terminate. Buyer shall promptly restore the Property to substantially the same condition in which it existed immediately prior to any physical tests conducted by or on behalf of Buyer. Buyer shall indemnify and hold Seller and Property harmless from all loss, cost, damage and expense, including reasonable attorneys' fees, which Seller or the Property may suffer or incur as a result of such entry by Buyer, including without limitation the cost of defending against any claim for a statutory lien against the Real Property resulting from labor, materials, equipment, skill or services furnished with respect to the Property at the request of Buyer. This indemnification provision shall survive any termination of this Agreement. 9. DOCUMENTS TO BE DELIVERED AT CLOSING. The Seller agrees to deliver the following documents to the Buyer at closing and to Buyer's attorney for review at least five business days prior to closing: A. A duly recordable warranty deed conveying fee simple title to the Property to the Buyer, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to the Buyer; B. An affidavit from the Seller sufficient to remove any exception in the Buyer's policy of title insurance for mechanics' and materialmens' liens and rights of parties in possession; 514380v1 CBR NM325-37 2 C. A non -foreign affidavit, properly executed, containing such information as is required by the Internal Revenue Code Section 1445 and its regulations; D. A Minnesota Well Disclosure Certificate delivered with this Purchase Agreement, or, if there is no well on the Property, this Purchase Agreement and the warranty deed must include the following statement "the Seller certifies that the Seller does not know of any wells on the described real Property;" and E. Any notices, certificates, and affidavits regarding any private sewage systems, underground storage tanks, and environmental conditions as may be required by Minnesota statutes, rules or ordinances. F. Any other documents reasonable required by the Buyer's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 10. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. The Seller shall be responsible for all real estate taxes, including any deferred real estate taxes, penalties or interest, for the years prior to the year in which closing occurs. The Buyer and the Seller shall prorate as of the Closing Date the real estate taxes for the Property that are due and payable in the year of closing. B. The Seller shall pay all special assessments levied or pending against the Property as of the Closing Date, including special assessments certified for payment with the real estate taxes and all deferred assessments. 11. EXAMINATION OF TITLE. The Buyer's examination of title to the Property shall be conducted as follows: A. SELLERS' TITLE EVIDENCE. Promptly after execution of this Purchase Agreement by the Buyer's governing body, the Seller shall provide the abstract of title and/or any prior title policy covering the Property. Upon receipt of such title evidence, Buyer shall order a title commitment for title insurance, at Buyer's sole expense. B. BUYER'S OBJECTIONS. The Buyer shall make written objections (the "Objections") to the form or contents of the title commitment or condition of title within 10 business days after receipt of the title commitment and this executed Purchase Agreement. The Buyer's failure to make Objections within such time period shall constitute waiver of the Objections. The Seller shall have 90 days after receipt of the Objections to cure the Objections, during which period the closing will be postponed, if necessary. The Seller shall use good faith efforts to correct any Objections. If the Objections are not cured within such 90 -day period, the Buyer will have the option to do either of the following: 514380v1 CBR NM325-37 3 1. Terminate this Purchase Agreement, provided that if termination is due to the Sellers' failure to cure title objections or any other default of the Seller; or 2. Cure the Objections at the Buyer's expense and proceed to Closing. 12. CLOSING COSTS AND RELATED ITEMS. The Seller shall be responsible for the following closing costs and related items: (1) all recording fees and charges relating to the filing of any instrument required to make title marketable; (2) state deed tax, conservation fee or other federal, state or local documentary or revenue stamps or transfer tax with respect to the deed to be delivered by the Seller; (3) one-half of the closing fees charged by the title company engaged in connection with this Purchase Agreement; (4) Sellers' own legal and accounting fees associated with this transaction. The Buyer shall be responsible for the following closing costs and related items: (1) the cost of any survey of the Property required by the Buyer; (2) any fees incurred for the title commitment; (3) the cost of all premiums required for issuance of the title insurance policy; (4) the fees for any soil tests, environmental assessments, inspection reports, appraisals, or other tests or reports ordered by the Buyer; (5) recording fee for the Warranty Deed; (6) one-half of the closing fees charged by the title company engaged in connection with this Purchase Agreement (7) Buyer's own legal and accounting fees associated with this transaction. 13. POSSESSION/CONDITION OF PROPERTY. The Seller shall deliver possession of the Property to the Buyer on the Closing Date in the condition as the Property existed on the date of execution of this Purchase Agreement. 14. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. The Seller represents that there is no individual sewage treatment system on or serving the Property. 15. WELL DISCLOSURE. Seller certifies that the Seller does not know of any wells on the described real property. OR ❑ A completed Well Disclosure Certificate accompanies this Purchase Agreement as Exhibit B. OR ❑ A completed Well Disclosure Certificate has been electronically filed as WDC number: 16. SELLERS' REPRESENTATIONS AND WARRANTIES. The Seller hereby represents and warrants to the Buyer as of the Closing Date that: A. Title. The Seller has good, indefeasible and marketable fee simple title to the Property. B. Intentionally left blank. C. Defects. The Seller is unaware of any latent or patent defects in the Property, 514380v1 CBR NM325-37 4 such as sinkholes, weak soils, unrecorded easements and restrictions. D. Legal Compliance. The Seller has complied with all applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property and the Seller shall continue to comply with such laws, ordinances, regulations, statutes, rules and restrictions. E. Legal Proceedings. There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof; and the Seller has no knowledge that any such action is presently contemplated. F. Refuse and Hazardous Materials. The Seller has not performed and has no actual knowledge of any excavation, dumping or burial of any refuse materials or debris of any nature whatsoever on the Property, other than those disclosed by the Seller to the Buyer as of the date of this Purchase Agreement. The Seller has not received any notice or advice from any governmental agency or any prior owner of the Property or any tenant, subtenant, occupant, prior tenant, prior subtenant, prior occupant or person with regard to Hazardous Materials on, from or affecting the Property. The term "Hazardous Materials" as used herein includes, without limitation, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by any federal, state or local environmental law, ordinance, rule, or regulation including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S. C. Section 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq.) and in the regulations adopted and publications promulgated pursuant thereto. G. Legal Capacity. The Seller has the legal capacity to enter into this Agreement. The Seller has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against the Seller within the last year. H. Leases. There are no third parties in possession of the Property, or any part thereof; and there are no leases, oral or written, affecting the Property or any part thereof. I. Foreign Status. The Seller is not a "foreign entity" as such term is defined in the Internal Revenue Code. 514380v1 CBR NM325-37 5 J. Methamphetamine Production. To the best of the Sellers' knowledge, methamphetamine production has not occurred on the Property. The Sellers' representations and warranties set forth in this Section shall be continuing and are deemed to be material to the Buyer's execution of this Purchase Agreement and the Buyer's performance of its obligations hereunder. All such representations and warranties shall be true and correct on and as of the Closing Date with the same force and effect as if made at that time; and all of such representations and warranties shall survive the closing and any cancellation or termination of this Purchase Agreement, and shall not be affected by any investigation, verification or approval by any party hereto or by anyone on behalf of any party hereto. The Seller agrees to defend, indemnify and hold the Buyer harmless for, from, and against any loss, costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim, demand, action or cause of action be instituted, made or taken, which is contrary to or inconsistent with the representations or warranties contained herein. 17. RELOCATION BENEFITS; INDEMNIFICATION. The Seller acknowledges that Seller is not being displaced from the Property as a result of the transaction contemplated by this Purchase Agreement and that Seller is not eligible for relocation assistance and benefits and that the Purchase Price includes compensation for any and all relocation assistance and benefits for which they may be eligible. The provisions of this paragraph shall survive closing of the transaction contemplated by this Purchase Agreement. 18. TENANTS. The Seller warrants that there are no tenants on the Property with a lawful leasehold interest. In the event any tenant comes forward and claims an interest in the Property at the time of or following the purchase, the Seller agree to fully indemnify the Buyer for any and all costs associated with terminating such tenancy and for any and all relocation assistance and benefits that may be due to such tenant together with attorneys' fees that the Buyer would have to incur in connection with legal action required to resolve any relocation assistance or benefits dispute with such tenant. For Sections 17 and 18 of this Purchase Agreement, "relocation assistance and benefits" shall have the meaning ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. Sections 4601- 4655 (the federal URA) and the regulations implementing the federal URA, 49 C.F.R. Sections 24.1-24.603. 19. BROKER COMMISSIONS. Seller has engaged Edina Realty as its broker in this transaction. Seller shall be responsible for paying its broker's fees. Seller and Purchaser hereby represent and warrant to the other party that, in connection with this transaction, no other third -party broker or finder has been engaged or consulted by it or through such parry's actions (or claiming through such party) and is entitled to compensation as a consequence of this transaction. Seller and Purchaser agree to indemnify, defend, and hold the other party harmless against any and all claims of brokers, finders, or the like, and against the claims of all third parties, claiming any right to commission or compensation by or through acts of the indemnifying party or its partners, agents, or affiliates in connection with this Agreement. The indemnifying party's indemnity obligations shall include all damages, losses, costs, liabilities, and expenses, including reasonable attorneys' fees and litigation costs, which may be incurred by the other party. 514380v1 CBR NM325-37 6 20. ENTIRE AGREEMENT. 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. 21. AMENDMENT AND MODIFICATION. No amendment, modification or waiver of any condition, provision or term of this Purchase Agreement shall be valid or have any effect unless made in writing, is signed by the party to be bound and specifies with particularity the extent and nature of such amendment, modification or waiver. Any waiver by either parry of any default by the other party shall not affect or impair any right arising from any previous or subsequent default. 22. BINDING EFFECT. This Purchase Agreement binds and benefits the parties and their successors and assigns. 23. NOTICES. Any notice, demand, request or other communication which may or shall be given or served by the Seller on the Buyer or by the Buyer on the Seller, shall be deemed has been given or served on the date the same is hand delivered or the date of receipt or the date of delivery if deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows: A. If to Seller: Owen & Erika Gossett 9897 Kaiser Ave. NE. Otsego, MN 55362 B. If to Buyer: City of Monticello Economic Development Authority Attention: Executive Director 505 Walnut Street, Suite 1 Monticello, MN 55362 With a copy to: Martha Ingram Kennedy & Graven, Chartered 200 South Sixth St., Suite 470 Minneapolis, MN 55402 or such other address as either parry may give to another party in accordance with this Section. 24. NO PARTNERSHIP OR JOINT VENTURE. Nothing in this Purchase Agreement shall be construed or interpreted as creating a partnership or joint venture between the Seller and the Buyer relative to the Property. 25. CUMULATIVE RIGHTS. Except as may otherwise be provided herein, no right or remedy herein conferred on or reserved by either party is intended to be exclusive of any other right or remedy provided by law, but such rights and remedies shall be cumulative in and in addition to every other right or remedy given herein or elsewhere or existing at law, equity or by statute. 514380v1 CBR NM325-37 7 26. ATTORNEYS' FEES. If either party commences an action against the other to enforce any of the terms of this Purchase Agreement, or because of the breach by either parry of the terms hereof, the prevailing party shall be entitled to its costs and expenses, including reasonable attorneys' fees, incurred in connection with the prosecution or defense of such matter. 27. DEFAULT; REMEDIES; SPECIFIC PERFORMANCE. If the Buyer defaults in any of the agreements herein, the Seller may terminate this Purchase Agreement. If this Purchase Agreement is not so terminated, the Buyer or the Seller may seek actual damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; provided that any action for specific enforcement must be brought within six months after the date of the alleged breach. 514380v1 CBR MN325-37 8 IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date written above. SELLER Owen Gossett Erika K. Gossett BUYER CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director 514380v1 CBR NM325-37 9 EXHIBIT A Legal Description of the Property Lot Ten (10), in Block B of the Townsite (now known as City) of Monticello and that part adjoining said Lot Ten (10) described as follows: Beginning at the Southeast corner of said Lot Ten (10); thence Easterly along the Northerly line of Broadway Street to a point distant 57.00 feet Westerly of the Southwest corner of Lot One (1), in Block B of the Townsite of Lower Monticello; thence Northerly, parallel with the Westerly line of said Lot One (1), a distance of 165.00 feet to the Southerly line of Lot Eleven (11) of said Block B of the Townsite of Monticello; thence Westerly along said Southerly line to the Northeast corner of said Lot Ten (10); thence Southerly along the Easterly line of said Lot Ten (10) to the point of beginning, according to the plat and survey thereof on file and of record in the office of the County Recorder in and for Wright County, Minnesota. AND Lot Ten (10) in Block B of Monticello and those parts of Lot Two (2), Block B, Lower Monticello and Palm Street of Monticello according to the recorded plat thereof lying Northwesterly of a line drawn southwesterly from a point on the northeasterly line of said Lot Two (2) distant 57.00 feet northwesterly from the most easterly corner of said Lot Two (2) to a point on the Northeasterly line of Broadway Street of said Monticello distant 57.00 feet northwesterly from the most southerly corner of said Lot Two (2). Subject Property Address: 255 E. Broadway Street Monticello, MN 55362 PIDS:155040002101 and 155040002100 514380v1 CBRNM325-37 A-1 f.Beacon'(t-V' Wright County, MN Overview Legend Roads ® CSAHCL ® CTYCL - MUNICL —~ PRIVATECL — TWPCL Highways Interstate State Hwy US Hwy City/Township Limits Q c t EF Parcels Parcel ID 155010067100 Alternate ID n/a Owner Address GOSSETT,OWEN & ERIKA Sec/Twp/Rng 11-121-025 Class 206- RES 1-3 UNITS 9897 KAISER AVE NE Property Address 255 BROADWAY E Acreage n/a OTSEGO, MN 55362 MONTICELLO District 1101 CITY OF MONTICELLO 882 H Brief Tax Description Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO LT10&TH PRTOF PALM ST LY NWLY OF LN DRWN SWLY FR PTON NELY LN OF LT2BLK B LOWER MONT157FT NWLY FR MST ELY COR OF SD LT2TO TO PTON NELY LN OF BROADWAY ST OF MONT157FT NWLY FR MST SLY COR OF SD LT2 (Note: Not to be used on legal documents) Da ie created: 6/9/2017 Last Data Uploaded: 6/9/20172:49:58 AM 44.1 Developed by Schneider The Schneider Corporation 6/9/2017 Beacon - Wright County, MN �B eacon'rht, Wright County, MN Summary Parcel ID 155010067100 Year Built 1920 Property 255 BROADWAY E Gross Living Area 1616 Address MONTICELLO Construction Quality D 6 Sec/Twp/Rng 11-121-025 Frame Type WOOD FRAME Brief Sect -1l Twp -121 Range -025 ORIGINAL PLAT MONTICELLO LT10&TH PRT OF PALM Exterior Walls *44 Tax Description ST LY NWLY OF LN DRWN SWLY FR PT ON NELY LN OF LT2BLK B LOWER Roof Structure GABLE Roof Cover MONT157FT NWLY FR MST ELY COR OF SD LT2 TO TO PT ON NELY LN OF r N/A Floor Cover HeatHeat BROADWAY ST OF MONT157FT NWLY FR MST SLY COR OF SD LT2 '. 1ltf N/A Bedrooms (Note: Not to be used on legal documents) ,. 2 Deeded Acres 0.00 Sales Class 206 -(NON-HSTD) RES 1-3 UNITS t U 12/04/2015 District (1101) 1101 CITY OF MONTICELLO 882 H N WD U 08/15/1994 School District 0882 Creation Date 01/01/0001 Owner Primary Taxpayer Owen & Erika Gossett 9897 Kaiser Ave NE Otsego, MN 55362 GIS Acreage Parcel: 155010067100 Acres: 0.23 Acres USAB: 0.23 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 9,943.09 Land =■ MW-'WTPq . ''""•. '" . t-,} ,fie:. Unit Eff Seq Description Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Adj 4 Rate Div 1 RES 1 0 0 0 1.000 LT 42,000.000 1.00 1.00 1.00 1.00 42,000.000 1.000 Total 1.000 Buildings Building 1 Seller Year Built 1920 Architecture 2 STORY Gross Living Area 1616 Finished Basement Sq Ft KIFFMEYER,RALPH Construction Quality D 6 Foundation Type N/A Frame Type WOOD FRAME Size/Shape SQUARE Exterior Walls STUCCO Windows DOUBLE HNG Roof Structure GABLE Roof Cover ASPHALT Interior Walls N/A Floor Cover HeatHeat N/A K in Air Conditioning 1ltf N/A Bedrooms 2 Bathrooms 2 Kitchen N/A Sales Multi Parcel IN Q Sale Date Y PD U 12/04/2015 Y WD Q 11/13/1998 N WD U 08/15/1994 N WD U 10/01/1983 Value 42,000 42,000 Buyer Seller Sale Price Adj Price OWEN GOSSETT ESTATE OF WILLIAM L EVERETT $60,000 $60,000 EVERETT,WILLIAM KIFFMEYER,RALPH $76,000 $76,000 KIFFMEYER PITT $45,000 $45,000 PITT PITT $30,000 $30,000 + There are other parcels involved in one or more of the above sales: https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&KeyVal ue=155010067100 1/3 6/9/2017 Beacon - Wright County, MN Transfer History Grantor Grantee Doc Date Transfer Date Doc Type Doc No Sale Price WILLIAM L EVERETT OWEN & ERIKA K GOSSETT 12/1/2015 12/23/2015 PER REP 1304770 $60,000 Valuation 2017 Assessment 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $42,000 $38,000 $30,000 $30,000 $30,000 + Estimated Building Value $65,600 $70,000 $64,800 $61,900 $57,000 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $107,600 $108,000 $94,800 $91,900 $87,000 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $42,000 $42,000 + Building Value $65,597 $65,597 + Extra Features Value $0 $0 = Total Value $107,597 $107,597 Change 0.00% -0.36% Taxation 2017 Payable 2016 Payable 2015 Payable 2014 Payable 2013 Payable Total Estimated Market Value $108,000 $94,800 $91,900 $87,000 $85,000 Excluded Value $0 $0 $0 $0 $0 Homestead Exclusion $0 $0 $0 $0 $0 = Taxable Market Value $108,000 $94,800 $91,900 $87,000 $85,000 Net Taxes Payable $1,444.00 $1,308.00 $1,292.00 $1,432.00 $1,383.39 + Special Assessments $0.00 $0.00 $0.00 $0.00 $456.61 = Total Taxes Payable $1,444.00 $1,308.00 $1,292.00 $1,432.00 $1,840.00 Taxes Paid Receipt# Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1322253 10/11/2016 2016 $0.00 $0.00 $0.00 ($654.00) 1289852 5/16/2016 2016 $0.00 $0.00 $0.00 ($654.00) 1226863 10/6/2015 2015 $0.00 $0.00 $0.00 ($646.00) 1183136 5/6/2015 2015 $0.00 $0.00 $0.00 ($646.00) 1151723 10/21/2014 2014 $0.00 $0.00 $0.00 ($716.00) 1116056 5/15/2014 2014 $0.00 $0.00 $0.00 ($716.00) 1043970 9/17/2013 2013 $0.00 $0.00 $0.00 ($920.00) 997590 4/22/2013 2013 $0.00 $0.00 $0.00 ($920.00) 948878 9/25/2012 2012 $0.00 $0.00 $0.00 ($1,139.00) 912596 5/9/2012 2012 $0.00 $0.00 $0.00 ($1,139.00) Photos Sketches 'awn Mr -"111111 https:Hbeacon.schneidercorp.com/Application,aspx?ApplD=187&LayerlD=2505&PageTypeID=4&PagelD=1310&KeyVal ue=155010067100 2/3 6/9/2017 ` sk«�pyay.Hsk«�n Maa Beacon - Wright County, MN No data available for the following modules: Land GARP, Extra Features. Maps and documents made available to the public by Wright County are not legally recorded maps nor surveys and are not intended to be used as such. Last Data Upload: 6/9/2017 2:49:58 AM 4.1 Schneider Developed by The Schneider Corporation https://beacon.schneidercorp.com/Appli cation.aspx?ApplD=187&Layer lD=2505&PageTypelD=4&PagelD=1310&KeyVal ue=155010067100 3/3 'v ,,, beacon Wright County, MN Summary Parcel ID 155040002101 Property Address Sec/Twp/Rng 11-121-025 Brief LOWER MONTI BLOCKS A,B,C & D Block- B TH PRT OF LT2 BLKB LY NWLY OF LN DRWN SWLY FR PT ON NELY LN OF SD LT2 57FT NWLY FR MST ELY COR OF SD LT2 TO PT ON Tax Description NELY LN OF BROADWAY ST OF MONTICELLO 57FT NWLY FR MOST SLY COR OF LT2 (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 201- (NON-HSTD) RESIDENTIAL District (1101)1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 01/01/0001 Owner Primary Taxpayer Owen & Erika Gossett 9897 Kaiser Ave NE Otsego, MN 55362 GIS Acreage Parcel: 155040002101 Acres: 0.01 Acres USAB: 0.01 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 252.10 Land Unit Eff Seq Description Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Adj 4 Rate Div % Value 1 NONAG LAND 0 0 0 1.000 LT 100.000 1.00 1.00 1.00 1.00 100.000 1.000 100 Total 1.000 100 Sales Multi Parcel IN Q Sale Date Buyer Seller Sale Price Adj Price Y PD U 12/04/2015 OWEN GOSSETT ESTATE OF WILLIAM L EVERETT $60,000 $60,000 Y WD Q 11/13/1998 EVERETTWILLIAM KIFFMEYER,RALPH $76,000 $76,000 +There are other parcels involved in one or more of the above sales: Transfer History Grantor Grantee Doc Date Transfer Date Doc Type Doc No Sale Price WILLIAM L EVERETT OWEN & ERIKA K GOSSETT 12/1/2015 12/23/2015 PER REP 1304770 $60,000 Valuation 2017 Assessment 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $100 $100 $100 $100 $100 + Estimated Building Value $0 $0 $0 $0 $0 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $100 $100 $100 $100 $100 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $100 $100 + Building Value $0 $0 + Extra Features Value $0 $0 = Total Value $100 $100 % Change 0.00% 0.00% Taxation 2017 Payable 2016 Payable 2015 Payable 2014 Payable 2013 Payable Total Estimated Market Value $100 $100 $100 $100 $100 - Excluded Value $0 $0 $0 $0 $0 - Homestead Exclusion $0 $0 $0 $0 $0 = Taxable Market Value $100 $100 $100 $100 $100 Net Taxes Payable $2.00 $2.00 $2.00 $2.00 $2.00 + Special Assessments $0.00 $0.00 $0.00 $0.00 $0.00 = Total Taxes Payable $2.00 $2.00 $2.00 $2.00 $2.00 Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1378467 5/12/2017 2017 $0.00 $0.00 $0.00 ($2.00) 1289851 5/16/2016 2016 $0.00 $0.00 $0.00 ($2.00) 1183132 5/6/2015 2015 $0.00 $0.00 $0.00 ($2.00) 1116058 5/15/2014 2014 $0.00 $0.00 $0.00 ($2.00) 997592 4/22/2013 2013 $0.00 $0.00 $0.00 ($2.00) 912598 5/9/2012 2012 $0.00 $0.00 $0.00 ($2.00) Map No data available for the following modules: Land GA/RP, Buildings, Extra Features, Photos, Sketches. Maps and documents made available to the public by Wright County are not legally recorded maps nor surveys and are not intended to be used as such. 441 Last Data Upload Data: 12/28/2017,3:50:41 AM Schneider Developed by The Schneider Corporation :,-��; eacon` Wright County, MN Overview Legend Roads CSAHCL CTYCL — MUNICL PRIVATECL TWPCL Highways Interstate — State Hwy US Hwy City/Township Limits c t Parcels Parcel ID 155040002101 Alternate ID n/a Owner Address GOSSETT,OWEN & ERIKA Sec/Twp/Rng 11-121-025 Class 201- RESIDENTIAL 9897 KAISER AVE NE Property Address Acreage n/a OTSEGO, MN 55362 District 1101 CITY OF MONTICELLO 882 H Brief Tax Description LOWER MONTI BLOC KS A,B,C & D Block- B TH PRT OF LT2 BLKB LY NWLY OF LN DRWN SWLY FR PT ON NELY LN OF SD LT2 57FT NWLY FR MST ELY COR OF SD LT2 TO PT ON NELY LN OF BROADWAY ST OF MONTICELLO 57FT NWLY FR MOSTSLY COR OF LT2 (Note: Not to be used on legal documents) Date created: 12/28/2017 Last Data Uploaded: 12/28/2017 4:50:41 AM Developed by Schneider The Schneider Corporation Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacted. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors to act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. I. Central Community Required Retail Frontage Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Park/OpenSpace/Cemetery sR� R � R t a R Core Study Area 4W \.ems 1 • �` � 7 Ripe - �� rStrPer . w 445StreQt pr,o F 'esc-f- Y L,P c Q+f or) Z5 L l Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail./restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas y4 District _� (CCD) I. Central Community Required Retail Frontage Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Park/OpenSpace/Cemetery sR� R � R t a R Core Study Area 4W \.ems 1 • �` � 7 Ripe - �� rStrPer . w 445StreQt pr,o F 'esc-f- Y L,P c Q+f or) Z5 L l Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail./restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas y4 Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacted. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors to act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. I. Central Community Required Retail Frontage Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Park/OpenSpace/Cemetery sR� R � R t a R Core Study Area 4W \.ems 1 • �` � 7 Ripe - �� rStrPer . w 445StreQt pr,o F 'esc-f- Y L,P c Q+f or) Z5 L l Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail./restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas y4 District _� (CCD) I. Central Community Required Retail Frontage Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Park/OpenSpace/Cemetery sR� R � R t a R Core Study Area 4W \.ems 1 • �` � 7 Ripe - �� rStrPer . w 445StreQt pr,o F 'esc-f- Y L,P c Q+f or) Z5 L l Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the City. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail./restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas y4 255 East Broadway January 4, 201 1 inch = 376 feet Performance Agriculture - Single Family High Density Highway Light Industrial Based Overlay Open Space and 2 Family Residential Business District Residential Residential Manufactured Regional Heavy Industrial Special Use Amentities Residential Home Park Buff 1man Planned Unit r Cl1Y °f- District District Planned Unit District ntral Development ` ontke O MN Wild and Single Family g y Development Neighborhoodmmunity FDistrict ROW -� - -- Scenic River Residential Medium Density Business Districts Traditional Residential Limited Industrial and Split Freeway Bonus Neighborhood Business Business District Residence Area Campus Distriq p Powered by DataLink from WSB & Associates EDA Agenda: 01/10/18 13. Economic Development Report (JT) A. Otter Creek Business Park Sign Update Staff will provide additional information to the EDA regarding progress on the marketing sign revamp at the regular meeting. B. Proposed Housing Rehabilitation Loan Programs Update provided at the meeting. C. Prospects — See attached A spread sheet with the active prospects is attached. D. Northland Securities Services Letter Refer to attached letter for proposed service offerings and charge rates PROSPECT LIST 1/10/2018 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 11/12/2016 MN DEED Prospect Metal Mfg. Exist Facility+ Equip 65,000 sq. ft. 0 S5-100 $2,500,000 Active Search 11/17/2016 Project Novus Precision Machining New Facility Constr. + Equip 105,000 sq. ft. 0 99-105 $10,000,000 Active Search 3/14/2017 Rustech Brewing, LLC Micro Brew -Tap Rm Exist Facility + Equip 2,000 sq. ft. +/- 0 3 $423,000 Site Secured 6/22/2017 Project #6580 Metal Mfg. New Facility Constr. 80,000 to 100,000 sq. ft. 0 80 $6,500,000 Active Search 6/26/2017 Project Basil Bio -Ag. New Facility Constr. + Equip 165,000 sq. ft. 0 77 $11,000,000 Active Search 8/29/2017 Bondhus Tool Mfg. Facility Expansion + Equip. 16,000 sq. ft. 69 10 $2,000,000 Active Prop. 10/4/2017 Project Shepherd Tool Mfg. Facility Expansion 18,000 sq. ft. 60 ? $1,350,000 Concept Stage 10/17/2017 Project Ted Equipment Mfg. New Equipment N/A 45 ? $650,000 Concept Stage 11/7/2017 Data Center #1 Data Center w LM New Construction + Equip. Bldg.? - Needs 15 ac. 0 ? ? Active Search 12/8/2017 Project Cookie Food Dist. Facility New Construction 30 ac. 250,000 sq. ft. 0 300 $30,000,000 Active Search NORTHLAND PUBLIC FINANCE December 21, 2017 Mr. Jeff O'Neill Mr. Wayne Oberg Ms. Angela Schumann City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 RE: Northland Public Finance Services Dear Mr. O'Neill, Mr. Oberg, and Ms. Schumann: Northland Public Finance, a division of Northland Securities, Inc. appreciates the opportunity to continue our services to the City of Monticello (the "City") and Monticello Economic Development Authority (the "EDA"). We value the work that we have done with the City and EDA in the past and look forward to the opportunity to continue to provide excellent service in 2018. Northland desires to furnish services to the City and EDA as described in this letter. The Planning Service fee is proposed to increase from $175 to $180 and the fees for debt issuance are proposed to increase by 2.0% or less. Nothing in this agreement limits the ability of the City and EDA to separately engage Northland as underwriter for a bond issuance. The City and EDA may decide to use Northland for any or all of the offered services at its sole discretion. Effective July 1, 2014, parties that provide advice to issuers of municipal securities must comply with Rules 15Ba1-1 through 15Ba1-8 of the Securities and Exchange Commission (SEC). The "Municipal Advisor Rule" requires firms that act as a municipal advisor to register with the SEC. Northland Securities is a registered municipal advisor. Effective June 23, 2016, Municipal Securities Rulemaking Board (MSRB) Rule G-42 took effect. Rule G-42 requires a firm to provide a written agreement and certain disclosures in order to serve as a Municipal Advisor for a specific bond issuance. Northland will provide the City an agreement on an issue -by -issue basis. An issue -by -issue agreement and disclosure ensures that when the City may determine to engage Northland as Municipal Advisor the City will receive timely and accurate information at the beginning of the bond issuance process. 45 South 7h Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 8514964 / Email: tomdal@northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRB Northland Public Finance December 21, 2017 Page 2 of 4 PLANNING SERVICES At the direction of the City or EDA, Northland will provide financial planning services including, but not limited to: 1. Creation and management of tax increment financing districts. 2. Creation and management of tax abatement programs. 3. Yearly preparation of tax increment financing payment calculations in a format that the City provides. 4. Creation and management of other public finance tools including special service districts, housing improvements areas, special assessments, and utility user fees. 5. Review and evaluation of proposals for public financial assistance for private development. 6. Assistance with the negotiation and management of development agreements. 7. Creation strategies and/or policies for the implementation of development and redevelopment projects. 8. Creation of capital improvement plans including the identification of funding alternatives and the analysis of financial implications. 9. Preparation of long range financial projections and plans. 10. Design and facilitation of group decision making and educational workshops. 11. Assistance with grants and other federal funding initiatives. Northland will provide a scope of work and budget for each Planning Service. From time to time, the City and EDA may at its discretion, authorize Northland to undertake Planning Services without a written scope of work and budget. DEBT ISSUANCE At the direction of the City, Northland will provide services for the issuance of debt. Northland shall provide all services necessary to analyze, structure, offer for sale and close the transaction. The services will be adjusted to meet the specific needs of each debt project. Examples of the services include the following: Planning and Development: 1. Meet with City officials and others as directed to define the scope and the objectives. 2. Assemble and analyze relevant statistical information. 3. Prepare a preliminary feasibility study or discuss with City officials possible funding options and the fiscal implications of each. 4. Assist with determining strategies to meet federal arbitrage exceptions or mitigating rebate exposure. 5. Prepare details on the elements of the bond issue including, issue structure, method of issuance, term, sale timing, and call provisions. Northland Public Finance December 21, 2017 Page 3 of 4 6. Prepare a schedule of events related to the issuance process. 7. Attend meetings of the City Council and other project and bond issue related meetings as needed and as requested. Bond Sale: 1. Prepare and provide the City with the Preliminary Official Statement for review and approval. 2. Recommend whether the issue should secure a bond rating. If the issue is to be rated, prepare and furnish to the rating agencies the information the rating agencies require to evaluate the issue and provide their rating. Serve as the City's representative to the rating agencies. 3. Assist the city and the development of investor interest for the purchase of the bonds. 4. Conduct bond sale process. 5. Coordinate with bond counsel the preparation and execution of required documents. 6. Prepare and post the Final Official Statement. 7. Coordinate with the purchaser and the City the closing process and the receipt of bond proceeds by the City. Post Sale Support: 1. Furnish to the City a complete transcript of the transaction. 2. Assist, as requested by the City, with the investment of bond issue proceeds. Investment Assistance: Should the City desire to invest the proceeds from the debt issuance or any other funds of the City through Northland in its capacity as a broker, Northland shall, at all times, transact such investments as principal. CONTINUING DISCLOSURE At the direction of the City, and under a separate agreement, Northland will continue to assist the City with all aspects of compliance with the Security and Exchange Commission's Rule 15c2-12 on continuing disclosure. Northland employs a full-time continuing disclosure specialist to collect information and to submit annual disclosure documents on behalf of our clients. We monitor changing regulations and industry practices to ensure that our services stay up to date. COMPENSATION Planning; Services: Northland is committed to establishing fair and manageable arrangements for consulting projects billed on an hourly basis. For every project, we will provide the City Northland Public Finance December 21, 2017 Page 4 of 4 with a description of work to be performed and a cost of services. We will not bill for costs in excess of the stated amount unless the City agrees to a revised scope of work and budget. We will not surprise the City with unexpected billing. We will not seek compensation for services not under contract. Planning services will be billed monthly at a rate of $180 per hour. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed and amount remaining under the approved budget. Debt Issuance: 1. Fees for debt issuance is based on the par amount of bonds issued and are proposed to be as follows: Par Amount $0 to $500,000 $500,001 to $1,000,000 $1,000,001 to $2,000,000 $2,000,001 to $3,000,000 $3,000,001 to $4,000,000 $4,000,001 to $5,000,000 $5,000,000 and Over Fee $8,050 $9,995 $13,975 $16,625 $19,075 $22,335 $22,335 plus $620/$500,000 in excess of $5 million 2. Fee schedule applies to the aggregate amount of debt issued that day - not on an individual series basis. 3. Revenue Bonds and Advance Refunding Bonds are billed at 1.25 times the above fee schedule. 4. Northland will not bill for any out of pocket expenses for debt issuance such as transcript, travel, copying, mail/shipping, and official statement printing. Thank you for the opportunity to submit this letter and for the opportunity to continue to provide service to the City and EDA. I would be happy to answer any questions regarding the proposal for service. Sincerely, Northland Securities Tammy Omdal Senior Vice President