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EDA Agenda 02-14-2018AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 14th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Vice President Bill Tapper, Treasurer Steve Johnson, Tracy Hinz, Jon Morphew, 011ie Koropchak-White and Council members Lloyd Hilgart and Jim Davidson Staff: Jeff O'Neill, Angela Schumann, EDA Executive Director Jim Thares, Jacob Thunander, Wayne Oberg 1. Call to Order 2. Roll Call 6:00 p.m. 3. Annual Business Meeting a. Consideration to elect EDA Officers b. Consideration to review EDA Bylaws and Enabling Resolution c. Consideration of EDA fund balance information 4. Consideration of additional agenda items 5. Consent Agenda a. Consideration of approving Regular Meeting Minutes — January 10th, 2018 b. Consideration of approving Special Workshop Meeting Minutes — January 10th, 2018 c. Consideration of approving payment of bills d. Consideration of 2018 Farm Lease with Tom and/or Matt Spike at $1,100 for 13.6 acres Regular Agenda 6. Consideration of Purchase Agreement for 103 Pine Street 7. Consideration of CMHP Redevelopment and Rehab Feasibility Analysis Proposal 7.5 Consideration of Authorizing Letter of Intent (LOI) to acquire 112 West River Street 7.6 Consideration of Authorizing Quotes for Phase I Environmental Studies at 103 Pine Street and 112 West River Street 8. Director's Report 9. Adjourn 3. A. B. C. 1a E. EDA Agenda: 02/14/18 Consideration of holding Annual Business Meeting (JT) REFERENCE AND BACKGROUND: The EDA is required to hold an Annual Meeting each year to elect officers, make appointments as needed and consider Bylaw changes. The EDA enabling resolution and the Bylaws are attached for review. Staff would entertain any questions or requested clarifications of the documents; some items may require consultation with EDA legal counsel. The Offices that need to be filled consist of President, Vice President and Treasurer. Staff can serve as the Secretary for recording minutes of meetings. Also attached for review and discussion is the 2017 Year End reports of the EDA Fund(s). Al. Staff Impact: There is minimal staff time involved in preparing for consideration of the Annual Business Meeting. A2. Budget Impact: No expected budget ALTERNATIVE ACTIONS: 1. Motion to elect 2018 Officers; as President, as Vice President, and as Treasurer. 2. Motion to table election of 2018 EDA Officers ALTERNATIVE ACTIONS: 1. Motion to direct staff to prepare draft amendments to the EDA Enabling Resolution or Bylaws as follows: (amendments to the Enabling Resolution require a public hearing). 2. Motion of other. STAFF RECOMMENDATION: Staff recommends approval of Alternative B-1. If needed, staff recommends approval of C-1 as appropriate. SUPPORTING DATA: A. EDA Bylaws B. EDA Enabling Resolution C. EDA 2017 Year -End Financial Reports 1 BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.108 1, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution") and Section 2-3-1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota. ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a 16167111111M-1[$IIN A Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and other instruments executed by the Authority; and in the case of the resignation or death of the 325599v6 MNI MN190-130 President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by any Authority -approved method, including without limitation check, wire transfer, or credit card; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or incapacitated. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator- shall be designated as Exeetitive Dir-eeter- of the Attther-ity-.- The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole 2 325599v6 MNI MN190-130 custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employ. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. 3 325599v6 MNI MN190-130 Section 3. Legal Services. The Authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing. The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution, the Enabling Resolution shall control. Section 3 Authority. Effective Date Dated: , 2014. These bylaws are effective upon their adoption by the Signed: President (Seal) 4 325599v6 MNI MN190-130 Executive Director 325599v6 MNI MN190-130 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2013-010 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ("City") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City. 1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title II, Chapter 3 (the "Enabling Ordinance"), the City established the City of Monticello Economic Development Authority ("EDA"), for the purpose of coordinating and administering economic development activities in and for the City. 1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution"), which superceded the Enabling Ordinance in all respects. 1.04. The City Council further amended the Enabling Resolution after a duly noticed public hearing on February 27, 2012. 1.05. The City Council has now determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.06. The City Council has, in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the proposed modifications to the Enabling Resolution. 1.07. This resolution constitutes an amendment and restatement of the Enabling Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects. Section 2. Enabling Authority. 2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated by this resolution. 2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the commissioners shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) commissioners shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non -Council commissioners shall be appointed for six-year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership, when any commissioner ends EDA membership prior to expiration of his or her term of office, on the day following the expiration of a commissioner's term of office, or when a commissioner is removed by the City Council subject to the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new term or the balance of the unexpired term, as applicable, in the manner in which the original appointment was made. 2.05. All of the commissioners who are not members of the City Council must be either residents of the City, business -owners in the City, or property -owners in the City. 2.06. All commissioners shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the EDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The other offices of the secretary and assistant treasurer need not be held by a commissioner. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each commissioner on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the EDA may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 5. Functions, Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act. 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the 'Fund") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the EDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, furnish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following: (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defined in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. ADOPTED BYthe City Council of the City of Monticello on this 25th day of March, 2013 CITY OF MONTICELLO Clint Herbst, Mayor ATTEST: Jeft,0XV11, City Administrator Schedule of Assets, Liabilities, and Fund Balances Economic Development Authority December 31, 2017 ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, AND FUND BALANCES (d) = decertified CITY OF MONTICELLO EDA TIF TIF TIF TIF TIF TIF General GMEF Future 6 (d) 19 20 22 24 $ 2,016,687 $ 1,164,742 $ $ 712,941 $ 217,51' $ 101,438 $ 652,603 $ 120,279 1,302 - - - � - - - - 740 799,452 879 - 34,632 'A 2,066,190 163,200 - $ 4,919,882 $ 1,164,742 $ $ ,941 $ 217,513 $ 101,438 $ 815,803 $ 120,279 $ 3,137 $ - - $ - $ - $ - $ - - 4 - 386,574 - - 163,200 3 "' 4 97 - 549,774 740 - - - - 2,C ',069 - - - - - 1,164,742 712,941 217,513 101,438 266,029 120,279 2,84 '- _ - (44,497) 4,91t,,05 1,164,742 (44,497) 712,941 217,513 101,438 266,029 120,279 $ 4,919,882 $ 1,164,742 $ - $ 712,941 $ 217,513 $ 101,438 $ 815,803 $ 120,279 (Continued) Schedule of Assets, Liabilities, and Fund Balances Economic Development Authority December 31, 2017 (Continued) ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, AND FUND BALANCES (d) = decertified TIF TIF 29 30 $ 107,592 $ 102,080 $ $ 102,080 $ $ 107,592 29,334 CITY OF MONTICELLO TIF TIF TIF TIF GAAP Total 34 35 38 39 Reconciliation EDA 4,131 $ 1,989 $ $ 57 $ $ 5,202,052 - - - 1,302 740 - (799,452) - - 879 34,632 - 2,229,390 $ ,989 $ $ 57 $ (799,452) $ 7,468,995 - $ $ - $ - $ 3,137 239,047 (799,452) - - (163,200) - 239,047 (962,652) 3,137 - ' - - - - - 740 2,067,069 1k 592 (27,254) 4,131 1,989 (238,990) 163,200 2,593,610 _ - - - 2,804,439 im "92 (27,254) 4,131 1,989 (238,990) 163,200 7,465,118 $ 107,592 $ 102,080 $ 4,131 $ 1,989 $ $ 57 $ (799,452) $ 7,468,995 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority For the Period Ended December 31, 2017 EDA TIF TIF TIF TIF TIF TIF General GMEF Future 6 (d) 19 20 22 24 Revenues Property taxes $ 280,592 $ $ $ $ - $ - $ - $ - Tax increments - ,j93 18,074 264,228 42,782 Investment earnings 27,395 15,844 9,698 2,747 1,659 8,313 1,349 Interest on intrafund loans 18,814 - - - - - - Other revenues 10,846 - Total revenues 337,647 15,844 -698 440 19,733 272,541 44,131 Expenditures: Current Salary and wages 75,683 - Benefits 28,689 - Supplies 79 Professional services - legal 15,247 P - - 57 - Professional services - other 85,781 459 459 1,449 459 LPV Insurance 1,824 - - - - Legal and general publications '"34 34 34 34 Property taxes db - Marketing 250 - - Dues and membership 5,763 - - Utilities 807 I - 236 IT services 3,212 - - Travel and conferences 033 - Land adjustment to market - Other expenses 1 - 52,138 - Excess increments - - - 134,114 Interest on intrafund loans - - - - PAYG payments to third parties - - 6,507 45,503 - Total expenditures 333,802 493 59,138 181,393 493 Excess (deficiency) of revenues over expenditures 3,845 15,844 9,698 33,947 (39,405) 91,148 43,638 Other financing uses Transfers out - - - - - - Net change in fund balances 3,845 15,844 9,698 33,947 (39,405) 91,148 43,638 Fund balance at beginning of year 4,912,160 1,148,898 (44,497) 703,243 183,566 140,843 174,881 76,641 Fund balance at end of year $ 4,916,005 $ 1,164,742 $ (44,497) $ 712,941 $ 217,513 $ 101,438 $ 266,029 $ 120,279 (Continued) Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority For the Period Ended December 31, 2017 (Continued) Revenues Property taxes Tax increments Investment earnings Interest on intrafund loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Supplies Professional services - legal Professional services - other LPV Insurance Legal and general publications Property taxes Marketing Dues and membership Utilities IT services Travel and conferences Land adjustment to market Other expenses Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Excess (deficiency) of revenues over expenditures Other financing uses Transfers out Net change in fund balances Fund balance at beginning of year Fund balance at end of year CITY OF MONTICELLO TIF TIF TIF TIF TIF TIF GAAP Total 29 30 34 35 38 39 Reconciliation EDA $ - $ - $ - $ $ - $ - $ $ 280,592 24,242 10,032 203,857 X68 42,455 648,031 1,425 1,385 164 28 3 0 1 70,011 - - - - - (18,814) - - - 1 ,280 - (109,280) 10,846 25,667 11,417 204,02128 1'. 951 42,456 (128,094) 1,009,480 •- - - 75,683 - 28,689 - - - - 79 - - - 171 - 15,475 459 459 - - 89,525 - - - - 1,824 34 34 34 378 - - - - 2,786 - - 250 - - 5,763 - - 1,043 - - 3,212 - - 2,033 (109,280) 54,434 134,114 - 3,375 4,612 10,827 (18,814) - 19,394 71,404 19,887 3,868 34 205 4,646 10,827 (128,094) 486,692 5,780 7,549 203,987 (177) 115,305 31,629 522,788 - - (200,000) - - - (200,000) 5,780 7,549 3,987 (177) 115,305 31,629 - 322,788 101,812 (34,803) 144 2,166 (115,305) (270,619) 163,200 7,142,330 $ 107,592 $ (27,254) $ 4,131 $ 1,989 $ $ (238,990) $ 163,200 $ 7,465,118 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, Jim Davidson, and Lloyd Hilgart Staff Present: Jim Thares and Angela Schumann 1. Call to Order Bill Tapper called the regular meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of presiding officer Bill Tapper recommended postponing elections for officers until the annual meeting in February. The EDA members were in consensus. 4. Consideration of additional agenda items Bill Tapper requested adding Item 8, 9, and 12 to the Consent Agenda. 5. Consent Agenda LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH NOTED ADDITIONS AND REMOVAL OF ITEM D. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 6-0. a. Consideration of approving Regular Meeting Minutes — December 13th, 2017 Recommendation: Approve Regular Meeting Minutes — December 13th, 2017. b. Consideration of approving Special Workshop Meeting Minutes — December 13th, 2017 Recommendation: Approve Special Workshop Meeting Minutes — December 13th, 2017. c. Consideration of approving payment of bills Recommendation: Approve payment of bills through December, 2017. d. Consideration of Acquisition and Relocation Services Retainer Agreement with Wilson Development Recommendation: ITEM REMOVED FROM THE CONSENT AGENDA. e. Consideration of revised MIF (Minnesota Investment Fund) Loan Guidelines Recommendation: Modify the MIF Loan Guidelines regarding repayment term and equity and interest rate language. L Consideration of revised SCDP (Small Cities Development Program) Loan Guidelines Recommendation: Modify the SCDP Loan Guidelines regarding repayment term and equity and interest rate language. g. Consideration of Purchase Agreement for 255 East Broadway Street, 1 Monticello, MN Recommendation: Approve Resolution 2018-2 authorizing the purchase of the vacant parcel of land located at 255 East Broadway. 5A. Consideration of Acquisition and Relocation Services Retainer Agreement with Wilson Development Lloyd Hilgart questioned being limited with only one option for service. Jim Thares explained that it is a professional service and not required to have more than one bid. Thares noted the amount of experience that Wilson Development has especially with the City of Monticello. Steve Johnson asked if there was a threshold to use these types of services. Morphew commented that Wilson Development and WSB's services would likely charge about the same, but recommended Wilson Development due to past relationships. Angela Schumann stated that these services would only be utilized on an as - needed basis. JON MORPHEW MOVED TO AUTHORIZE ENTERING INTO A RELOCATION SERVICES RETAINER AGREEMENT WITH WILSON DEVELOPMENT. STEVE JOHNSON SECONDED. MOTION CARRIED, 5-1 WITH LLOYD HILGART VOTING IN OPPOSITION. Regular Agenda 6. Consideration of 2018 EDA Work Plan Jim Thares stated at the last meeting, he received feedback from one commissioner and accounted for it in the proposed 2018 EDA Work Plan. Staff also made other additions to the plan. Thares reviewed the new items, but stated a primary focus would be on implementation of the Small Area Study strategies. TRACY HINZ MOVED TO ADOPT THE 2018 EDA WORK PLAN AS PRESENTED. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 7. Consideration of revised Policv Statement for Available TIF Funds Jim Thares stated the Master's Fifth Avenue project was identified in the adopted policy as a "housing" project, but should be identified as a "redevelopment" project. Adjustments were also made to the policy to make the document more professional. STEVE JOHNSON MOVED TO APPROVE THE PROPOSED REVISED POLICY STATEMENTS FOR AVAILABLE TIF FUNDS. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 8. Consideration of revised MIF (Minnesota Investment Fund) Loan Guidelines 2 -Added to the Consent Agenda - 9. Consideration of revised SCDP (Small Cities Development Program) Loan Guidelines Added to the Consent Agenda - 10. Consideration of Downtown Business Improvement Program Loan Guidelines Angela Schumann explained that staff were looking for feedback to better direct staff and CMHP. She stated that staff put together a proposed program that would accommodate fagade improvements for business vitality in the downtown. Schumann stated the importance of making an attractive and useful program for property owners in the downtown. Schumann explained the basics of the program and noted that the EDA could make changes. Under the proposal, the loan term would be five years. The loan would be forgivable based on the term set and pro -rated by years that they remained in the building. Property owners would need to have other financing as a primary source. Schumann stated it was written to require sixty percent private sector commitment and does not include equity in the building. The minimum borrower commitment is five percent with a loan cap of forty percent. There was not a minimum loan amount established and a loan interest rate is two percent. Loan participants would not be able to pair with other EDA loan programs. Loan fund uses include lease hold improvement items, renovations, and modernization of buildings. A criteria is also proposed to help the EDA in selecting loan participants. The geographic boundary for the program would include all properties within the CCD District. Bill Tapper commented that he'd like to see the EDA hire an architect to evaluate the downtown and provide a vision for what would be appropriate to modify the facades. Tapper also suggested putting together a very simple program to carry out the design. He also suggested renovations to buildings be placed in a different category where it could be determined if a building was worth being invested in. Tapper didn't want the EDA to rush into a program without fulling understanding the big picture. Steve Johnson explained his concern for small business owners being able to utilize the fund. Schumann stated that if a property owner was interested in making changes to their building they would likely hire an architect to help develop plans. Schumann also stated that a workshop may be an option to further walk through design guidelines and to provide a clearer scope for the program. Tracy Hinz echoed that she would like to see a workshop meeting set up and to also include downtown property and business owners in on this meeting. Steve Johnson explained the importance of talking with business and/or property owners prior to the workshop to showcase what the City would like to do in the downtown, but also asking these people what they wanted to do and the assistance they would need to make improvements. 11. Consideration of Purchase Agreement for 224 East 411 Street, Monticello, MN Jim Thares stated an email from the property owner was received on January 8th asking the EDA to be open to assuming the special assessments of $3,604.59 Thares explained that a purchase agreement has not been signed. LLOYD HILGART MOVED TO LEAVE THE OFFER AS STANDS (AT $71,950). JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 12. Consideration of Purchase Agreement for 255 East Broadway Street, Monticello, MN Added to the Consent Agenda - 13. Director's Report Jim Thares provided the Director's Report and noted the attached prospect list and Northland Securities services and charge rate update.. Thares also added that the large marketing sign in Otter Creek is currently being designed as a mock up by WSB. Thares also explained that he would be attending the annual Wright County Economic Development Partnership Meeting on Friday, January 19th and the Economic Development Association of Minnesota conference from January 18th to the 19th 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. Adiourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:54 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: February 14t", 2018 Attest: Jim Thares, Economic Development Director 2 MINUTES SPECIAL WORKSHOP—MEETING ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10, 2018 — 4:30 p.m. Academy Room, Monticello Community Center Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, Lloyd Hilgart, and Jim Davidson Staff Present: Angela Schumann, Jeff O'Neill, and Jim Thares 1. Call to Order Bill Tapper called the Special Workshop Meeting to order at 4:30 P.M. 2. Roll Call 3. Interview of EDA Commissioner Applicant The EDA interviewed Olive (011ie) Koropchak for the open EDA position. STEVE JOHNSON MOVED TO RECOMMEND TO CITY COUNCIL OLIVE (OLLIE) KOROPCHAK TO THE EDA. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 7-0. 4. Presentation by Central Minnesota Housing Partnership (CMHP), Jason Krebsbach, Overview of CMHP work in administering Housing Rehabilitation Programs Jim Thares introduced Jason Krebsbach from CMHP. Krebsbach provided a brief introduction and overview of CMHP. CMPH is a private housing, non-profit and incorporated in 1993 and serving 16 counties. It was originally created to develop and own affordable rental properties, but has since expanded to include pre -purchase counseling and homebuyer education for first time homebuyers, rehabilitation programs such as the Small Cities Development Program and the Home Rental Rehab program and working more closely with individual communities to meet housing and community development needs. Discussion pursued about past projects CMHP has helped communities achieve and how to potentially incorporate them into different housing projects and redevelopment interests in Monticello. 5. Adiourn STEVE JOHNSON MOVED TO ADJOURN THE MEETING AT 5:53 P.M. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: February 14th, 2018 Attest: Jim Thares, Economic Development Director EDA Agenda: 02/14/18 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 January 2018. 2. Motion to approve payment of bills through January 2018 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: 01/03/2018 - 3:37PM Batch: 00204.01.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-443300 INITIATIVE FOUNDATION 2018 Endowment Contribution 01/09/2018 118555 2,390.00 Vendor Subtotal for Dept: 46301 2,390.00 213-46601-181100 RUSTECH BREWING COMPANY GMEF Loan Disbursement #2 - Final 01/09/2018 118566 40,367.79 Vendor Subtotal for Dept:46601 40,367.79 The preceding list of bills payable was reviewed and approved for payment. Date: 2/14/18 Approved by Steve Johnson - Treasurer Subtotal for Fund: 213 42,757.79 Report Total: 42.757.79 AP -Transactions by Account (01/03/2018 - 3:37 PM) Pabe 1 Initiative F0UN0ATION Jim Thares, EDA City of TNon iccll0 505 Walnut St, $tel Mcmtieello MTS 55362-9922 Pledge ;Endowed} Pledge Reminder Invoice # Invoice Date Balance 1 hank You tcs Monikello-s UDA for imluding the lnitim veFouadation In tix--jr r.z90 01) ?019 budgeL WL were askrd To send all itivoiir in Deccmher 20 T 7. Your caetribl+ti()R v�:-' 14 ptavi difa rTT5FD-5rrimun—lry an eGoriomW dEVeIopnIetit in Central minnMia. Invoice Total 2,39U.00 F Arnount Due $2,390.00 iMPORTANT- Please milke payable to IniflaUve Foundation only and mail to; InitiatIve Foundation 405 First Street Southeast Little Falls, Mrd 56345 Phone, 32M32-9255 Julie Cheney From: Jim Thares Sent: Tuesday, November 28, 2017 5:40 PM To: Julie Cheney Subject: RE: Initiative Foundation Pledge Reminder $2,390.00 Attachments: 080917.EDAMinutes.pdf Categories: Red Category Hi Julie, please see the minutes of the August EDA meeting (4d). Payment in January of 2018 is fine. Thank you. From: Julie Cheney Sent: Tuesday, November 28, 2017 3:19 PM To: Jim Thares Subject: Initiative Foundation Pledge Reminder $2,390.00 Jim Attached is a pledge reminder received from the Initiative Foundation for 2018. In the past this has been approved by the EDA prior to payment. Payment is also usually made the first check run in January. Will that be the same? Keep me posted. Thanks, JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us CTY Ot R-Moi6&HO 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 MI UTI S RWULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (FDA) WedntSd,sy, Aug"[ 9th, 2017 - 6.00 p.m. 14-lir5is5ippi ROOM, ,1lcntiPe110 Con3nlu11it3' Center Commissioners Presernt= BiIl Dem eulcs, Bill Tapper. S(e 'e Johnson, Tracy Hinz, Jon lvinrTnccwJim D} ivids€}n, and Lloyd Hilgart Staf=f PresZnt- Jim Th ares. Angela Schurmmmand Jacob Thunander 1. Call to Order Bill Deme ulcs caIIed the tegu tar inceiing rrf the EDA IO order at 6:00 p. iii, ` - Roll Call I. Con &idcrstion of additional aP-tnda items, I ww. 4. C'nnscnt agenda BILI- TAPPER MOVED TO APPROVE. THE CONSENT AGENDA. TRACY HINT [:CONDED THEMOTION- MOTJON CARRIED. 7-0- a - -0_ a. Cam idieratiun of aV 100 Ving Regular N1cetinp, Miinutes- ,lulx. 12"1', V117 Reco aii n cndalion: Apps-v%:c i the Renoir Mecting [vli,iulcs - July 12 20 17. h. Considerstivu 01'gop roN ift JoistllS eciai N-1col in MhiuIeF,-Ju1-,- 12c11.2017 Rew mmel dation- A pivovLd llie loin 1: Special %J eel ijig M +'Idles — J U I v 12 01 7. c. C was i de rat i o n of aplrri)ving, payment of bills Recommundatik1n: Approved the pvin ent ofbillk through JUIV, 217. d. Cvnsidcrartion of a pUrEtying 2018 cant ril><ution to 1nitiati,4-- F43mndvktion R;ccopnpnendaficm- Approved 52.390 albacarioil tch t[le I�litia�i~ c F�Fualda�ic�«_ c. C'nnsideryboij 01' a rovirt ay ntient to C'unin bsr t 6rotill lkt eco men&tiow Approved paymcilt fbF $2_500. Regular Agends 5_ Con gidcra.fiell of APam vaJ ni'Sma]1 Area Stud %- Plan Angela 5 ch ommin stated th-21 a joint work-,41op was recomly field wifll IML' City Counc11. Ire fVS130nsc fiOnl die III eetin& chan6.es %%real- made to Tile dmfs SmalI Ar" StudypUin. Sdiumann staffed ifT-ccummcadL-d for aplxroval by ilie EDA. the plan would move to the PIall 11ijig Cllmmis fork wiTh si Pwl)[ic Hcaring do bt field and Then final decision c ouId h inade h the City Council. DIFtAW REQUEST TO: City of Itanticc'}lir Economic Development Authority 05 Walnut Street. Suite klontic:ello. MN 55362 Atm_ Executive Direr -tor DISBURSFtOFNT DIREC TION The undersigned Authorized Reprusentativ'e of Rustech Brewing Company LLC'_ a Minnesota lintited liability coni}pan` I; Ofic-'orrinver'1. hereby atithorizes ani} requests }ou to dishurse from provecds of the Loan. ill accordance with the terms of tilt Loan Agreement hetweet} the City of \Iollticello Economic Development AtahoritN ('-l-ender") and the Borrm er. dated as OfJUIN' 12. 2017 Ithe "Agreernent-;t, tile following amount to the tollov\ing person and for the tUllomving, proper cost of the EWuiptricm: I. Amount: 540.367.791 I Pavcc: Rustech I13'e\ ing COMIN111Y. I-1.(' 3. I'urpo,e_ Equipment Purchase per ,Lkbinitted lmoiee from Mika Breoving and Equipment Co. f wi�otce 001591-M-1. shoxirqu balance owed in the anzoUnt ot'w40,6-12.20) all as defined and provided in the :agreement. The undersigmed further cfrtific to the Lender that (a) none of the items li►r -Mitch the payment is proposed ter lie made has f6mied the basis #'()r any pav77yent previously made Under Section ; of' the Agreement (Or Ix tirre the date tit' the. Agreement); and (h) that eaLfi item for which the Imyttmil is proposed is F=tluil1mt:nt. c;ligibic For funding front the proccc& of the Loan. Dated; _ 1-3-2018 ► 13orrcrrtier's Author'iml Rcprc,,entcitive �3 C4U(ro61. ISII %I WNRJs' 1.116 IMN,323-7t i-- I IUviel [14 4 MTKA BREWING AND EQUIPMENT CO 6022 CULLIGAN WAY PAGE 1 MINNETONKA MN 55345 PHONE: (855)773-2337 INVOICE DATE 10/12/2017 FAX: (677)560-2337 INVOICE NO 00350692 S RUS000 S 0 ATTN: BILL BURT H RUSTECH BREWING COMPANY L RUSTECH BREWING COMPANY 1 105 W 3RD STREET D 105 W 3RD STREET P MONTICELLO MN 55362 MONTICELLO MN 55362 T T O 0 TOTAL DUE 40632.20 SLS 1 SLS 2 DUE DATE DISC DUE DATE ORDER NO ORDER DATE SHIP DATE SHIP NO MS AB 10/12/2017 00001978 10/06/2017 10/06/17 000001 TERMS DESCRIPTION CUSTOMER P.O.NUMBER SHIP VIA CUSTOM TERMS 5BBL 2-V BREWHOUSE BESTWAY ITEM ID c MEASURE UNIT OF ORDERED SHIPPED UNIT PRICE EXTENSION 00 1.00 1.00 37030.00 37030.00 5BBL 2 -VESSEL ELECTRIC BREWHO SE MASH/LAUTER TUN, KETTLE/WHIRLP DOL 10BBL HLT, 20L GRANT, 20L HOP BACK WORT/HLT/SPARE PUMPS, HEAT -EX 00 7 00 7 00 600.00 4200.00 ADD U S. ELEMENTS FOR KETTLE/HL 00 1.00 1.00 .00 .00 BREWDECK/PROCESS PIPING W/FITTINGSNALVES/ACCESSORIES INCLUDED IN BREWHOUSE COST 00 1.00 1 00 540000 5400.00 CIP SYSTEM W/PUMP CART INCLUDES PIPINGNALVESIACCESSO IF 00 3.00 3,00 4485-00 13455.00 5BBL JACKETED FERMENTER VESSEL WNALVES AND ACCESSORIES (continued on next page) TAXABLE NONTAXABLE FREIGHT SALES TAX MISC CHARGE TOTAL WWW.M[Ka-oec.corn Customer INVOICE MTKA BREWING AND EQUIPMENT CO 6022 CULLIGAN WAY PAGE 2 MINNETONKA MN 55345 PHONE: (855)773-2337 INVOICE DATE 10/12/2017 FAX (877)580-2337 INVOICE NO 00350692 S RUS000 S O ATTN: BILL BURT H RUSTECH BREWING COMPANY L RUSTECH BREWING COMPANY 1 105 W 3RD STREET D 105 W 3RD STREET P MONTICELLO MN 55362 MONTICELLO MN 55362 T T O O TOTAL DUE 40632.20 SLS 1 SLS 2 DUE DATE DISC DUE DATE ORDER NO ORDER DATE SHIP DATE SHIP NO MS AS 10/12/2017 00001978 10/06/2017 10/06/17 000001 TERMS DESCRIPTION CUSTOMER P.O.NUMBER SHIP VIA CUSTOM TERMS 5BBL 2-V BREWHOUSE BESTWAY ITEM ID Tx CL UNIT OF MEASURE ORDERED SHIPPED UNIT PRICE EXTENSION 00 1.00 1.00 337000 3370.00 5BBL JACKETED BRIGHT BEER TANK WNALVES AND ACCESSORIES 00 1 00 1.00 00 .00 BREW HOSE- SIZE/LENGTH TBD 00 1.00 100 6500.00 6500.00 FREIGHT(ESTIMATED) SHIPPING TO CUSTOMER LOCATION FULLY INSURED, INCLUDES ETIMATES FOR IMPORT DUTIESIFEES EST. 35 DAYS TRANSIT Payment in the amount of S34,132,21 rec ived n 10/121201 Aia4--- Controller. Minnetonka Brewing an I Eq pment Com any Subtotal 69955.00 TAXABLE NONTAXABLE FREIGHT SALES TAX MISC CHARGE TOTAL 69955.00 .00 .00 4809.41 .00 74764.41 Amount Paid: 34132.21 Net Due: 40632.20 Thank you for being our loyal customer!! WWW.m a- ec.com Customer Julie Cheney From: Jim Thares Sent: Wednesday, January 3, 2018 11:03 AM To: Sarah Rathlisberger; Julie Cheney Subject: Rustech Brewing Company, LLC - Funding Draw #2 Attachments: Equipment Invoice - Funding Draw #2.pdf; Fully Executed Funding Draw Request #2 - Rustech - 1-03-2018 SIGNED.pdf Sarah and Julie, this is the documentation for Rustech Brewing's Funding Draw #2 (final draw). The total amount previously disbursed was $34,632.21. This draw is in the amount of $40,367.79. Please code the same way as in Draw Request #1. 1 know Sarah reviewed this with me but I cannot find any information on it right now (looked high and low)!! This will be the final draw for this loan, so the next step that I will work on is the repayment schedule (with Sarah's help maybe..). Rustech has a principal and interest payment deferral until April 1, 2018. Accounts Payable Transactions by Account User: Julie.Cheney Printed: 01/18/2018 - 8:23AM Batch: 00206.01.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431990 WSB & ASSOCIATES INC 2016 - 2017 Market Matching - Nov 2 12/31/2017 0 700.00 Vendor Subtotal for Dept: 46301 700.00 The preceding list of bills payable was reviewed and approved for payment. Date: 2/14/18 Approved by Steve Johnson - Treasurer Subtotal for Fund: 213 700.00 Report Total: 700.00 AP -Transactions by Account (01/18/2018 - 8:23 AM) Page 1 WSB City of Monticello Attn: Wayne Qberg, Finance director 905 Walnut Street, S wte 1 Monticello, VIN 55392-8881 2015-2017 Market Marching CL Acct 9213.46301,431980 City Staff Reviewer: Jim Thares phase 0'. Fee Total Fee Percent Complete Billings to Date Fee Totals Outstanding Invoices Invoice Number 13 Total Billings to Dake Fee Labor Totals Comments; -r-' Xenia Avenj,e -';,j m. Sum 3A0 I Al iquap5w- MN a 16 17$:x'. �A 1 -'PA December 27, 2017 Traject No; 0-OOOti-4Q Invoice No - IV r t Li 17 to November 30. 21117 2016-2017 Market Matrhing Retainer Fee 9,600.04 100.00 Total Famed 9.800.40 Previous Fee Billing 9,1 DG. DO Current Fee Billing 700.30 Total Fee 700.00 Tetal this Prase $704,04 Current Prior Tata) 700.00 9,100,00 9,800.00 704.40 9,100.00 9,844,00 Total this Invoice $700.40 Date Balance 11 127!2017 738.00 7311AI) Total Now Due $1,43.00 Current Prior Total 700.00 9,100.00 9.80000 0,00 10,516.75 10.516.75 700.00 19,616.75 20,316.755 Approved by. B.iicing a legacy - youry Eauai 0pW.1j,iry Em..PLyer wSF3enq rc.' Project 0-002596-340 MONT - 016-2017 Market Matchipg Invoice 14 Reviewed by; Bret Weiss Project Manager_ James Gromberg P$ge 2 Accounts Payable i ITYO F Transactions by Account �� f User: Debbie.Davidson MontiC Printed: 01/17/2018 - 11:45AM oUP Batch: 00201.01.2018 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-433100 US BANK CORPORATE PMT SYS MN Econ. Dev. Assoc - 2018 Winter ( 01/15/2018 0 275.00 Vendor Subtotal for Dept: 46301 275.00 213-46301-438200 CITY OF MONTICELLO 7256-003 - 349 Broadway W - EDA 12/31/2017 0 13.66 Vendor Subtotal for Dept: 46301 13.66 213-46301-443300 US BANK CORPORATE PMT SYS Monti Chamber of Commerce - Nov L 12/31/2017 0 15.00 213-46301-443300 US BANK CORPORATE PMT SYS MN Econ. Dev. Assoc - 2018 Member 01/15/2018 0 295.00 213-46301-443300 US BANK CORPORATE PMT SYS Monti Chamber of Commerce - Dec L 12/31/2017 0 15.00 Vendor Subtotal for Dept: 46301 325.00 213-46301-443990 US BANK CORPORATE PMT SYS Domino's Pizza - Food for 12/13 EDA 12/31/2017 0 31.81 Vendor Subtotal for Dept: 46301 31.81 The preceding list of bills payable was reviewed and approved for payment. Subtotal for Fund: 213 645.47 Date: 2/14/18 Approved by Report Total: 645.47 Steve Johnson - Treasurer AP-Transactions by Account (01/17/2018 - 11:45 A" Page 1 Vendor Date of Tmnsaction t 1511? CITY OF MONTICELLO City Hall Card Transaction Please attach the i nvaicef receipt and any other available documentation to this form, To be completed by purchaser; Amount Orde purchaser name: Tracy Ergen Vicki Leerhoff Rachel Leonard Jeff O'Neill Wayne Oberg Sarah Rathlisberger Jennifer Schreiber ATigeia urnann Jim T res Jacob Thunander I -it -f Date apprDved 5peciat Project Circle department cede: 101-41110 101.41310 141-41410 141-41520 141-41800 141-41910 101-41920 141-41944 213-46301 Circle expense code: City Council AdminiStration Elections Finance Human Resources Planning and Zoning Data Processing City Half _ Economic Development 421990 General Operating Supplies 431950 N8w5letter Services 431990 miscellaneous Prof Services 432200 '1433Q0 Postage ra��443300u u sCr p 443700 Licerfses and Permit$ 4-43990 Mise. Other Expense Other Jim Thares From: EDAM <infv@edarn_org> Sent: Friday, January 05, 2018 4,42 PM To: Jim Thare�, Subject: Economic Development Association of Minnesota - Thank you for your order Dear Jim Thares, Confirmation for the er<ior placed on 115 2016 Click here for a printable view of the order. The following is a description of the order: Order Number is. 273972462 Ordered 1 products (see below): Product Number, L6J,0P9 Product: 2418 Winter Full Conference Quantity_ 1 PriCe Each: $275,00 Total Price: $275.00 Sales Discount (Early Bird Discount): (540,00) Total; $276.00 Thanks Economic Development Association of Minnesota This is an automated email seal from EDAM. Please do not reply to this email. It has been sent from an ernail account that is not monilored If you feel you have received this message in error, please feel free to oontacl us at .nioeda F, kkmojnlr- Developmem Associalion oi' Minnesota All r�gistrabons mast be accompanied by full paymentlpurchase order to reserve your place at the event Agenda p 7r1 rStii Fc.es Lodgi;7g Crodits Join us in January to connect with the EDAM cornmurfity and kickstart the year with dynamic educations Learn from te"ers ir the field with sessions focusing on Economic Development skiGfs and bijsiness incubatiorr I entreprenearship. and celebrate the red pients of the Excallence in Econ ornic Development Awards. Agenda View the s pea ker bias Thursday — January 18, 2018 7'30 - 8:15 am 8:30 - 8:45 am 8;45.9:45 am 9A 5 -10;00am 10:00-11:00 am Registration and Continental Breakfast Welcome by EDAM President Plenary Session: Planning for Change. The Minnesota Viking IEtffect _ - I I,._, ommunity Development Director, tiny of Eagan President. Vint Mankato. .� i t�n1 k-- -� r. President & CEO, Eagan Conver,tson & Visitors Bureau Break with Exhibitors Breakout Sessions: Choose One Selling & Marketing City Owned .and: Lessons Learned by the City of Ramsey Patrick Bfarna, Assistant City Administratorl Economic Development Manager. City of Ramsey The City of Ramsey closed 10 land transactions in me pas`, four years totaling 30 acrek and $5 14M n sales The Cizv has four other rand transactions under COr)tfaCt tOtlaY Business Incubation - Hutchinson Case Study {1.0 AICP Creditj fvtue�, Sepper., Ecarsemic Development Director. City of Hutchinson The ses5;iorn will examine two suc<:e5sful busrne5s development 'r9ifiatives Hutthinson's '-Juice Staft Downtown" raus'r)ess plan contest, a virtual business incubation caorrcept inat resulted In two new businesses on Main Street Hutchinson and the hup:flwww,edam.org/events/E-entDetaiIs,aspx?id=1001999 1/11/2018 Economic Developnient AsS ciation of Minne,, eta 11.00 - 11:15 am 11:15-12:15 PM totaling 14 ages, and $1.411+1 in sales. The Crly has over 140 -acres of additional land available fbf purchase today with a 13M asking price. Based on this experiernce, the City has learned plenty Df lessons over IN past four years. This presentation will dive into t11e lessons learned by Ramsey. including developing template purchase agreement documents, adopting closed -Session pricinglnegotiation strategies, obtaining development shovel -ready documentation, adopting marketing strategies, and establishing an effective process for reviewing land transactions by various public commissions. Break with Exhibitors Breakout Sessions: Choose One What it Means to Be "Shovel Ready" 0 A AiC P C red it) Kylle Joroan. Regional Business Development Manager, Minnesota Department of Employment and Economic Development DEED) :.=1, , ,r-.lw, Economic Development Coo rd1natnr, WSB & Associates Everyone t1as beard the term "shovel ready" in relation to a greenfield site, but what does that mean? How does being shovel read help a busineSS speed L* heir abAty to budd4 ' There are 5everat surveys arra reports required in a shovel ready program, bul most economic developers don't have engineering backgrounds that can help them understand why. This session will offer an overview of technical documents like: Page 4 of 1 I. newly built Hutchinson Enterprise Cinter, a 20,400 square foot "next generation" small business incubator in the city's industrial park_ The prasentatkon wait Include Int4rmation about business incubation as an economic development stbraleg y, key stepS in developing similar programs in your community, and pitfalls to avoid. Saint Pall Innovation Cabinet (1.0 MCP Credit) Uarc �+ Sure: , Senior Project Manager, City of Saint Paul This session will explore the Saint Paul Innovation Cabinet's work tttiat resulted In th8 creation of Fuli Stack Saint Paul. an action plan to implement targeted strategies to expand the technology and innovation sectors in the city. Full Stacy Saint Raul is a prnystetpsibficpartne4rshi.p co - led by the City of Sault Patel and the Saff,t Paul Area Chamber of omrnefoe U# at provides a full range of services to #yelp teeth and innovation businesses stark and scale up in Saint Paul prom helping a business find the perfect office space, to facilitating connections between btrsine?s leaders, to alignfng star: -ups Wit� http://v�ww.edain.org/events/EventDetaiIs.aspx?id=I001999 1/11/2018 Ei nnoinic Developmem Association of Minnesota 12:15 - 1:45 R 1:45 - 2:00 pm 2:00 - 3:00 P -Geotechnical reports -ALTA surreys -EAW vs. EIS yrs. AUAR -111me I & II Environmentals -Archealogical studies -Endangered species studies Each of these survey slreports is critical to companies looping to build in your industrial park. The speakers will discuss what each is, why a's necessary, and where you can save time, money and effort in commissioning them. Page 5 of 11 resources to grow their businesses, to supporting the next generation of tKh Went, Full Stacie Saint Paul helps establish Saint Paul as a place where businesses can locate and thrive. Goals of the action plan include 2,000 tech -related jobs added by 2020 and 200,000 square feet of additional modern office space in Saint Paul. EDAM U Lunch & Keynote: DocuMNtary Producer Nick Roseth Nva Rrr +,Chief Operations Officer, SWAT Soiutjon Posetti will explore tree local eritrepreneunal ecosystem, publicfprnvate partner0ips, Dus++gess an it :alenT attracti arVTetentio n. and more Beed on ht9 work cn '- - .. ' ' - , . a docurnentafy about The tech industry in Minnesota. Nick wild also di�cuss why Merl nesota is a great p;ace to set down foots. grow a taTeeT. and start a business. As we look at 2016 growth and new Challenges. Nick wrtr address tl�& value �if diversity, social equality, developing the greater Minnesota economy, and bridging the gap between small businesses acrd the enterprise. Break with Exhibitors Breakout Sessions: Choose One Economic Development and Strategic Planning in Low Income Com rrrunities 0.0 AICP Credit) N9vr[c 'vers, President. Northside Econornic Opportunity Network (NEON) Strategic Economic Development can improve the quality of life and ell - being within the community as well as Dade in Minnesota: The Growth of Three Local Entrepreneurs (1A Al P Credit) WeS" UMUS, Owner & Cc -Founder, Primp; 3or n Gvermeor, Co -Founder, WOODCHUCK USA. : _ son Dayton, Co -Founder, Minneapolks Cider Company http://A-ww.edam. orgJevenWEverrtDetaiIs.aspx?id=1001999 1/11/2018 Ecortotnic Development Association ofMinrie )ta 3,00- 3:15 pm build an infrastructure to sustain job creation. There are key elements othin the strategic ecunornic development ptocess that contribute toward suoss, one being how the data drives economic change This session covers the basics of understanding flow to navigate the creation of partner5hip5 and T-esvurces needed to create opportunities to ensure economic development Is feasible, data -driven and sustainable. Break with Exhibitors Page 6 of'[ L A moderated panel of three local entrepreneurs including the founders of PRIMP Boutpque, Woedehiick USA, and Minrteapolis Cider Company wiill speak to their experiences in business plan development. ske(s) selection. and working with cornmunities through permitting processes arrd brand piromQtion- http://www.edam.org/eveiits/EventDetai Is, aspx?id = I x{11999 1/11/2018 Economic Development Association of Minnesota 3:15 - 4:95 PM Breakout Sessions: Choose One How Much is Enough? Protecting Local Resources in Publicly Financed Development Projects (1,0 AICP credit) )&son Aarsvold, Municipal Advisor. Ehlers; jarrres Lvlr-r -,,Drf, Mar}icipal Advisor, Ehlers Public financial participation In private development prolects can be a challenging endeavor. Determining the appropriate tevet of public assistance, oegobating with developers, and articulating the need for assistance to thL- City CotimeH eind othef commr,nity members are just a few of the issues local economic development practitioner-} mus# navigate. This session will explore sofne of She best practra---s involved with fielding fegoests For public assistance that an txelp set your mrnfnunity on a path toward successful and fiscally responsible development ootcames. http:l/w�,w, edam -orale-env,'1:ve t(Delails.asp ?id=1001999 Page 7 cel` I 1 Business Incubation Programs Utilizing Existing Rental Properties 11.0 AICP Credit) Joxa S ;-2ison, Director of Marketing, Comrnun4 and Economic Development Associates (CERA), {3as3r S emor Vice President. Community and Econvrnic Development Associates (CERA) This session will provide relevant information about Stewartville. Minnesota's new Business incubaborp Program including research conducted, grant dollars received. prograrrm guidelines finalixea, and regional collabGrations establisttea. Tbe program was created to encourage the creation aria support of new fo(-pral businesses that --Antall and enhance a sustainable ane diverse ousiness chrratie Yvithin the City's business/commercial district. This goal is accomplished by providing business owners with education and rental asslstam:e to increase opportunities for long-term success while Filling currently vacant commercial properties In the community. As the first year of business can be the most difficult- the program is stnictured to last 18 months. The City partnered with Community and Economic Development Associates to provide education in busiriess core competencies in addition to receiving a $9,000 grant from the Southern Minnesota Initiative Foundation to implement the program. 1111/2(}18 Economic Developmtiu Association of Minnesota Page 8 of 9 1 4:15 - 6:00 Excellence in Economic Development Awards & Reception Pm Friday — Januaryl , 01 7:30 - 8.00 am 8'00- 8.30 am 13:30-9:30 am 9;30 - 9;40 am 9:45 - 10: 45 am Help us honor this years accomplished award winners! Drinks and hors if'cuevres will be served Continental Breakfast Conference Prue Entry Plenary Session: Legislative Update Kevin WaIli, Shareholder, Fryberger Law Firm; Sen Parra Anda -son IR1 Drstrier 44; Rep. Tim Mahoney (Lrl-L) LUistrict b,"A; H,�� P ?Y Scott {N) otstnr~t356; Sen David 7oma 5soni (DU LI C)iWICf 0 Break with Exhibitors Breakout Sessions: Choose One Land Use Planning Economic Development -A Practical Outline (1.0 AICP Credit) Atr8rr;�iir AIgad, Execufiv! Directar, Worthington Regional Econorrna Development Corp . Rr;�d C-hq;'01S, City Aaministratot. City of Baxter Public investments in transportation, water, sewar, industrial and commercial parks. energy and other Witities all must be- strategically ptanned to addresses Iorig-term impacts on land value, location in ttlationship to existing and fvtLff land uses, and the puWntial to coni riblite etfeclNeIV to the tax base and QuaJity of life. Irl fight of limited rasources. proper p4inrxing is needed naw more than ever to adapt blue prints that guide ! resource aIlocatinn to create the fiighest possible return on investment. From Start Up to Second Stage, Helping Entrepreneurs Grow Efrse Ducbi i , Eco Development Project Coordin-abr, Hennepin County Atter trying other economic development programs fof small businesses in the mid -2000s without mach success, Hennepin County began to invest in initiatives that placed strategic emphasis ori businesses with the hlgh8stjob growth potential white pravidirig for the continued cultivation of envepfenaum. In 2011 the County partnered with two etgarrr ations to provide programs to entrepreneurs with businesses from Mart up to second Mage. These programs have now 9ro fl to multiple counties in the metropolitan area. helping hundrads of local businesses with services technical assistance, http:/A&- .edai-n. orglevents/LventDetaiIs,aspx ?id =100IX399 1111/018 Fcopiv»62 Cie%-elr)pp- icni Association oi' Mir+ne ioia 10:45 - 11:00 am 11:00 - 12:00 PM 12:00 - 12:30 pm Fees EDAM Member Non -Member Platting of road right of ways and provision of infrastructure not only adds value to the tax base, but it puts the community ahead in terms of responding to business needs. Thinking and acting strategically about Land Use enables communities to be ready for growth while niinimizing adverse land use impacts. Break with Exhibitors page 9 01-11 access W capital. customized data and research, and peer ~earning. Plenary Session: Awards Recipient Project Presentations Conference Prize Giveaway Sponsorship & Exhibitor Opportunities There are a variety of choices available to fit any budget. Learn mors and reserve sporrsotship and exhotor opportunities. Lodging DoubleTree Minneapolis Park Place 1500 Park Place Boulevard Minneapolis, MN 55416 Cutoff Date: ,!angary 9, 2018 Doom Block; January 17-19.2016 Rate- 6119 - S139 per Tright depending ori room type EDAM has secured a special group rate of 5119 - 5139 per night at the DoubheTree Parc Place Minneapolls, for a limned number of rooms. http:lluW W'edZtr n'0rglevewgE-ventI3!tai Is.aspx?id= 1001999 1/11/2018 Econoinic Development Dissociation of Minnesota To reserve your room: • Book oniirle • 'Via phone- Call 1-500-245-9190 and mention the "EDAM 2018 Conference" roots block. Credits Page t 0 of 11 AICD: EDAM has received approval for credits through The AmerICan Institute of Certified Planrter5 (AICP) For selected sessions for Certification Maintenance (CSI) credits See session descriptions. NDC= Each day of participation in the EDAM 2018 Winter Confererlae has been approved by the hiational Development Council (NDC) far 1 recertification unit. IEDC: The 2018 EDAM Winter Conference is a recognized recertification event by the Internation8l Economic Development Councit (ILUC), Caacellatlon Policy: With written cancellatren riolice. received no lalerthan January 8. 2ff18. you will receawe. a full relund, less a 535 odlI5iT1121ratFwu charge CRm❑ellatron!t altet that date are rioniefun4able. Srrbslilulion{ wi1I lye allovied by €arrK--company attendees d EDAM is notified before their IrlivaI No -snows wall trot roCklve a refund PCI Carnp1mnce= F- [JAM has taken the approprialr~ steps to rnaintain PCI mrnpjianfe, In order 10 prou=d y❑ut p&acy. (lease do nos email your crecil raTd mrormation iv quT 0111ER Audrrx+Wtleo Policy= Registra4bn ansa atlo"danca at. or Darlicipalion Ar assooaIisn c -vents constlluaos an agrecmenl by the registrant Io asaooakvrCr, use and distribut+on of the reg i5lydnl or 21f@f1d2 5 image or voice in pho"raphs, vid4polap2s, Ncr clrbmc reprotluctrons and audiotapes Df such events and activities. LATEST MEWS MORE EDAM EVENTS MORE 115i2ols 1117Q1018 112&1 B St Pate I -1x Emerging Prgles5iunatS Chionges and EcDnarnlc MRterConreFence Kickoff lmpatts Happy Hour 1aw18 1111 i#018 * 1PIN2016 Custom Bagfitlers makes 2018 EDAM Winler plan to expand In mjgj>le Conrersnc& Lake http:lh;ivy+ .edam.orgleventslEventDetaiIs.aspx?id=1001999 1111/2018 Debbie Davidson From: noreply@merchanttransact.com Sent: Friday, December 8, 2017 8:58 AM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 121171NSERTS.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 11/1/2017 to 11/30/2017 (30 days) 12/7/2017 1/1/2018 Previous Reading Current Reading Date Reading Date Reading 11/1/2017 188496 12/1/2017 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: 1/1/2018 * 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 $13.66 $13.66 $0.00 $13.66 $13.66 Vendor__ftha' h�� Date of Transaction 20i1 CITY OF MONTICELLO Ghost Card Transaction Ice/ receipt and any other available documentation to this form. irchaser: Amount 4 Circle purchaser name; Debbie Davidson Juli�Che Expense Code 2-[S, W.3, ., f L4 re At 64 2-[S, W.3, ., f L4 Monticello Chamber of Commerce PO Bax 192 205 Pine Street [Monticello M1 55302 Bill To Accounts Payable Monticello City of 545 Walnut Street Suitt #I Monticello, MN 55362 Description 2017 Chamber Lunch- Dercmber I'l&-I CC (Jim Z'hares) V FEE I rn, ThAVA yew &e _WW {-0 ItlM t to- We MantiCfrfa ChAr•bdr aFCa Meree 6 4nduitV5, TI+r Honxralffa C9saMW • reftenu Nw s tteYth OI bmineu " WrrtF to "rLgowh Galin U29S and gtin LdU rR:OW.,CJ p/alpdrity_ Montce.RS [han+Htr it PFVwd to sore m the 'Front dyer to ~ r -t tawnnunity. Yke k -e 4ee it A M44rYi Far kgineilaF, mf -dg. s il—f Ni%ptJWE dikt. prariding ArLd irL"plt whew[ [Fe area, encadrmi.L'q tC0�41odc rtid caMrraruty - rawok in AaAVOi to 9nt7vsias6ea4 wereawiAo NFiwy to tki area Imvmcslel Date Invoice # 1212012417 11427a Due Date 11412018 Amount IS,OU Total $1 '00 763-295-2700 rnarcy@rnonticellocei.com http://www.monticellocci.com Julie Cheney From: hm Thares Sent: Friday, December 29, 2017 8-26 A Ta: Julie Cheney Subject: FSE: Monticello Chamber Inv# 11427a $15.00 Julie, yes this is okay to pay. Please code to, 213,46301-443990 From: Julie Cheney Sent: Thursday, December 28, 2017 3;55 PM To: Jim Thares Subject: Monticello Chamber Inv# 11427a $15.00 Jim Attaches! is Inv# 11427a from the Monticello Chamber for the December lunch you attended. Okay to pay $15.00? Please provide coding, Thanks, Julie C'heviev Fiwnce Assistant City of Monticello 763-271-3205 J+iIiP-,Cheney @ ct.monticeIlo_mn,us AP @ ci-Mori ticello, mn_us i 11F { Montl Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and nwy be disclosed to thirdpat-ties. Monticello Chamber of Commerce PO Box 192 205 Pine Street Monticello MN 55362 Bill To Accounts Payable Monticello Cominunit emer 505 Walnut Street Suite 4 Monticello, MN 55362 t�escr�tipn - - I 2017 Chamber Lunch - Llcccmbcr 146 --MCC (Ann Mdrsack) - ' rig M#Ak y"P FW yPNF rV MMfba t m the Ma tk Jrp 4 6WNF Of COFA tFtg & industF!j. The MuntitffIP GAAMW� rMV494-0! 04 an"gh Pf bWgM ss w d We I to rtraKftAg . 6K . gSW Mai Atim detr r"fi f rF pgrity- Ma tjegff4 GhAu bfr ityrowd to iirve ed the -(r lase' to a r 17nR fey.... itb. The tkPFn6eF is A MWNF1 far h4inerV4, rgFd4�t€ "yiPWS alils, P"Vie ing infer Abm a d :noir t 40,t 04 dimm. C+ owraying eaannrwic &Ad caMr.54niCJ3 .q Ok an Additi0. t4 weJcomiwg Mr:m+i to 0%.4reA I Total Date Invoice # 12i20i2017 11426a Due Date U4J2018 Afnount is.001 $15,00 763-295-2700 marcy monticellocci,corn http-://www.monticeilocci.com Julie Cheney From, Ann Mosack Sent. Monday, December 11r 2017 10;30 A To: Julie Cheney Subject; FW; Confirmation; 2017 Chamber Lunch - December 19th --MCC Categories- Red Category t7en they bill us please code to 226-45122.433100_ Thanks! From: info @montice Ilocti.com fmaiIto, info@monticellatci_com] Sent: Monday, December 11, 2017 10-28 AM To: Ann Mosack <Ann-M0s.ack ci.rnonticello_mn.us> Subject: Confirmation; 2017 Chamber Lunch - December 13th --MCC Registration Confirmation Your registration for 2017 Chamber Lunch - december 19th --MCC has been received_ Confirmation IN umber: e.1243-5660.49939 Primary Contact, Ann Mosack (AMonticeiio Comrrrtrrrrly Cerner) Add to Calendar Edit Registration Summary Item Description auanti ty Total Amt Chamber Lunch, Member Arm Mosack 515.00 Total- $16 06 2017 Chamber Lunch - December 19th --MCC TOPIC; Coreg LaVallee on the dangers of distractive driving Tuosday, December 19th join us for Chamber Lunch at Monticello Community Center from 11.30 am - 1 pm. CATERED BY: Von Hansen's Meats MENU- BUTCHERS CARVED HAM, SLICED $EEF AU JUS SANDWICHE 9, CREAM COR CASSEROLE, TOSSED SALAD GARLIC HERB MASHED POTATOES, FRESH BADGED DINNER ROLLS, POP, COFFEE, AND BOTTLED WATER. P MPKIN PIE, BROW HIES BUSINESS LUNCH SPONSOR: If you want to to be recognized as the Chamber Lunch Sponsor contact the Chamber Office - Fee $100. Treasure Chest Drawing hal sets our chamber apart from others? Our members become FRIENDS! Meet new rrrerrrbers of the business communify and dd friends face to Pace while you enjoy a delicious iurrch, We have a d ffereru speaker arra topic that pertains to busyness each month. Bring your staff or fnends, chamber L tinrch is open to all anyone. Bate: deCerober 19. 2017 Time: 11 -30 AM - 01:00 PM CST Website. Monticello Qhamber LoCdtion; Montio9110 Community Center 505 Walnut St. Mondoelfo, MN Contact- Monikello Chamber (763) 2WZ700 Email, infa{F monligtkprci com Dateffime datatls, Tuesday, december 19th 11:30 am Registration & Buffet dinner 12.00 Program Begin& FeeslAdmission, $15 00 per person Thank you for supporting our Chamber Pvew Marcy and Marie Quik lore for More 1nfoirn@tiQq Add to Calendar Thank you Mantwallo Chamber of Cornmerca and industry Merchant. Monticello Chamber of Cominerce & Industry 205 Pine Street PO Bax 192 Monticeflo, VIN 55362 76329527DO us Ord o, Inform e',un nescrlpifon' Monticello Chamber Dec lunches, Ann MasacK & JIrw Tha res Order Number: P_D_ Number Customer 11); Irwolce Nurnber-, 1'426a. 11i427a 1311 ling Information Shipping Information Julie Cheney Olty of ModMlerelb Paymeni Inform-_-.:; Datamme; Transaction ID; TraIsaction Type: Transonl'on Status: Authorization Code; Payment Method: 04-Jnn-2418 08:48'46 PST 60867629982 Authorization wf Auto Capture CaptuiedlPending Setltarnenr 071197 Vi &a XXXX8769 Shipping: 0.00 Tax; 0_04 Total: USD 30.04 Vendor Date of Transaction CITY OF MONTICELLO City Hall Card transaction Please attach the linvoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount Circle purchaser name; Tracy Ergen Vicki Leerhoff Rachel Leonard Jeff O'Neill Wayne Oberg Sarah Rathlisberger Jennifer Schreiber Angela Schum xu — Jacob Thunander - E loyeeSigna ture Superui r ignak re . . V Oate approved Special Proj40 # or Nscripti¢n Circle department code - 101 -41110 101.41310 101-41410 101-41520 101-41800 101-41910 101-41920 101-41 213-46301 City Council Administration Elections Finance Human Resources Planning and Zoning Data Procpsring City Hall Economic Development HRA Circle expense code: 421990 General Operating 5uppties 431550 Newsletter Services 431990 Miscellaneous Prof -Services 432200 Postage 433100 TraveJ/Trainin Expense - ���— � Dues Me-mitegrRrrnits�� — License an 443990 Misr. Other Expense Other Economic Development Association of Minnesota Bill To Jim Thares City of Monticello 505 Walaut Streel Suite #1 Monticello MN 55362 United States Individual Mernbership Invoice Date lnvaice # 1212712017 300000921 Member Information Jim Thares City of Monticello 505 Walnut Street Suite #1 Monticello, MN 55362 U411tad slates PO Terms Due Date Due on receipt 12127i2017 Description I Amount Payments/Adjustments $295.00 Total 1 $295.00 Descfiption Amount Payment via Credit Card (using card xxxxxxxxxxxx0490) Appiiedl a ++i voice on I1Y271WI T 5-46:79 PY ($295.00 Total Payments+Adjustments ($295,00 Balance Due 4246 Park Glen Road Minneapolis, MN 554ifi P: (952) $284 640 F: (952) 929-1318 VISA MasterCard uard Nurrher -ode (required} Naine on card_ Signature of card holder, Card holder Phorle Expiration No dlijlt SBCUFIty Date of Transaction CITY OF MONTICELLO Ghost Card Transaction Invoice/ receipt and any other available documentation to this form. >y purchaser: ......re: Debbie Davidson Fxpense Code /o/ qUI(f) qcl,-�300 - 4,�kz.60 Ami icel to Chamber of CDmmercc & lnduslry U1'** fq monticellct PO Box 192 ;e V. 20 Pine St C'M*01iUhMnpIlp4Ltln ML)LnLiCC[1U pita 35x62 Bill To Accounts Payable Mantic e1 to Citi° of 505, Walnut Stmt suite # L Monijcell0, MN 55362 OPTIONAL RFAYEW S- IYE,SRPRF.-PAIDLUNtrc14MtL66.wioaoialpk��4a u,1, SLINLChwWx LL-.NCFIhPUr4S0MFnP aesc6plipfl Mon tiu110 C-halnber Membershiir Docs 05wier an&or { I I -2U) EIlaployucs VIj l ' Fax Credit card information far immediate Ila ymeot to 763.295-2705 Business Name on Card: Name on CArd: t:ac--- --- Y—i— p.l}atemnunt• Thank y43u for 1,DUr oammot ICDE 14) the MouLICe lu ChemiM Of CornnKfea & rndugrV Thr Mantwel lu Cham2s r 10 present$ the In Lercsts of the business r&MMUnAY arid SW'MS Lo SIMI$dlm bLiprICSS and sumu12L12 regional praspenly MUnllceiJO Chamber Is Proud T.@ Serve as Lhe 'fron L doer' M i1Ur fine mMMUnity The CklAmber s a reSUlfce far bLlSmosscs, resi&nts and visitors o3jkc. pmIrldchg on forInallon and 305 JOE about the area and soelr huSlness IHvoIca Date Invoice # 12/4/2017 t 129a Due Date 12119/20t7 Amount 0U.00 Total $400.00 For quer on -t or oddifional inforr+orrtlun regarding chis inivictie, pfease call Manzi- An&ysys at 763-272-33 j6 .Mn). Julie Chene From: Jeff O'Neili Sent; Tuesday, December Sr 2017 7:45 PSA To: Julie Cheney Subject: RE: Monti Chamber of Camrrmerce lr)v# 11298a $400.00 Good to 80 From: Julie Cheney Sent: Monday, December 04, 2017 1-47 PM To; Jeff O'Neill �Jeff.Oneill a ci.montir-eilo_rnn,us> Subject: MuntJ Chamber of Commerce Inv# 11298a $400.00 Jeff Attached is Inv# 11298a from the Monticello Chamber of Commerce for the City'S membership renewal, okay to pay $400,007 FYi... same cost as last year. Thanks, Finance Assistant City of Monticello 763-271-3205 Julie.ChP-Ile ?ci-Monti cello.rnn.us A P e c i. moat i ce I I o_mn. us CIT {1F Montiuuflo Email cnrrespandence to and from the CitY of MOnticella government offices rs subject to the A'nResota 60vernment Dote Practices Act and may be disclosed to third p'ar'ties_ 4klnlice 110 Chalnber Of CoFnMMC & 1313 UStry U1 r manrcella ]'UFlvh 192 a�N s�� �M:Uu: 205 Pinc St ihd"b d6nF rAInAnq A9cultiecl10 4AN 53362 Bill To Accounts Pavable Monticello Department of Motor Vehicles i 19 3rd Street Cast Monticello, MN 55362 OPYU?NAL BENEFITS z 1 YEAR PRE -PAID LUNCH [�U S I#i.W is mni"j Pkaco- noit pwnhi% on 11-4 ine $ I Ixi Cheenrr LUNCH SP0NSQRSH1p Description 5Le[rnd 111I5i31eSs Chamber rrkcnkbL!rshjp-A'lotLritello Chamhcr Date Invoice 4 1214!2017 I1 ] Due Date I2/191`2017 Amouni Fax credit card infOrmadon for immelliate PaYtnent to 763-29--9-2705 Business Name on Name on Card. Exp, Date: '--- Amount - Thank too for vGur [omnntrnent ip ifw MonLrce11(p C7lambel of Cnnlmeree & Indusl.ry Ile 161L)A olu Chambsr reprek%jS the'n"reSGS C& Lhe-1US41ness CO1I1rl1L1P111V and Mrves to stfMaLhen hu9ine+Ss and stl nmulitc rcgjoftl Total Pnlsperl$ MunLeella Chamber Is 1)rrlud io serve as Rhc -000 door" Ip aut rnce €gmmLLnity The r:hnmher �s a resource far businesses, residcnU Arld vlslaKS :Ak-er providing in ForrAmq l and InsLS111 about til¢ Wei and your basing! Fvr grlesr orrs ara&itrorral 100—afron regarding fish, r+r►v+C , please raUAfarcyAndeirfan Rt 763-.2 72-3310 .coot,,, Julie Cheney From: Carolyn Granger Sent: Monday, December 4, 2017 1.51 PIVII Tot Julie Cheney Subject: RE; Monti Charnber of Ccrnmer[e Inv# 11302a $100.00 Okay to pay. 217-41' 90-443300 Thank you. From: Julie Cheney Sent: M enday, December 04, 2017 1,43 PM To: Carolyn Granger <Carolyn_Granger@ci_monticello_mn.us> Subject: Monti Chamber of Commerce Inv# 11302a $100,00 Carolyn Attached is Monticello Chamber of Commerce Inv# 11302a for annual membership, Okay to pay $10(),00? Please provide coding. Thanks, Julie Cheney Finance Assistant City of Mont ice I10 763-271-3205 Juhe.Cheney ci.rnonticello.rnrw5 A P@ ci_rnontitelIo_mn,Lis C"17V [ll Monticeflo Entlwif correspondence to and from the Cit} of mantrcello governrnent offices is Subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Monticello Chamber of Commerce PO Box 192 245 Fine Street Monticello MN 55362 Bill To Date Invoice 9 12111/2017 1139a Accounts Payable Monticello City of 545 Walnut Street Suite #1 Monticello, MN 55362 Due Date 121.12017 Description AmourYl — 2U17 Chamber 1-unch-Nowniber21si--MCC (lien"E}Sarc51 1� OU 0v p_� TF+Rr.k ru Fw your co. _ilment to " Mantis ro erj nfi r Of CaKt".Vd & Jndd€try 'Me MOntirrffa C1.b�bar e�FpNientF dw + Nt is of bwii.,. and Serves tO Ft-Nffd a $ai*n 99 41-4 1b'nwtetsf "w4 Cvth'fr++ty. h'18+� lrt��f6 �' Fn6or u prey fp srryi qF G+e 'front do". to'r Find [oxu.,anitys ThO Chw�ber i€ n ftsawr[e fOr b nines, rei�d#�ts end v Fitpr! at l e, prwo0lrny 'Ab—t-M qx! irsSight 4ftt the -ICA, #�caurv� .y Acana�nit and CC mmumiter lrewtk in Add.tron to a rkWiai[icdly wrtGonwy sMifars in dy area I— Total 763-295-2704 marcy0a Monti cellocci-corn http,/,'www.monticellocei.com Julie Chene From: Jim Thares Sent, Thursday, December 14, 2017 152 PM To: Julie Cheney *Subject: RE' Monticello Chamber Inv# 11369a $15.00 Julie, this is okay to pay. Please Code to. 213-463[}1-443990. From: Julie Cheney Sent: Thursday, December 14, 2017 1:29 PM Tio: Jim Thares Subject: Monticello Chamber Inv# 11369a $15.00 Ron Attached i5 inv# 11369a from the Monticello Chamber for your November lunch, Qk3Y to Pay 515.D0? Please provide cQdirig. Thanks, .10'ro Cheney Finance Assistant City of Monticello 763-271-3205 Julie.�hene C�c�_rnar�t�celJo,r�n.us APG Ci,monticeIJa.mn.us -� t IT111F Monticello Email ccr•resPorrdence to and from the City Of Monticello government offices is subject to the M'nnesota 60vernment Data practices Act and may be disclosed to third parties_ erchant: Mo nticelto Chammer of Commerce &r IYidu tr 105 Pine Street PO Boz 192 lblorH mato, MN 55362 7632952700 us GruE.- lnfcrfnallOr' D"Optlon' City member dues 2018, DMV member dues n19, Nov luncheon Order Number; P.0_ NLim aer Cusl4mer 11]. InvOlce Number 1129$, 113112, -1369 Billing lnf()rrnatj0n Jude Cheney City of Monticello Payrre r,l 1h14*Fnflli n r Transaol:an ID-, Tren!gadlon Typ¢: Transpctlon Status- Aulharization Code; Payment Method-, Shipping Information 22 -pec -2017 OBA9_01 PST 60848116912 Aukharization W+ AWO CaptUre CapturgdlPef�ding Settlernont 007083 Visa XX 8769 n Shipping: Q,00 Taz; coo Total: US $15,Q0 Vend«r Dite of -Transact] on 1:5 11 CITY OF MONTICELLO City Hall Carel Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount } Circle purchaser name: Tr4[y Ergen 'fVicki L. - � -�nrti Jeff O'Neill Wayne Oberg Saran Rathlisberger Jennifer Schreiber Angela Schumann JIM Thares Jacob Thu nander Date approved Special Prateit $10 r Description Circie department code: 1-4111 1 10-1 410 101-41520 101-41800 101-41910 101-41920 101-41940 13-46500 2 - 301 Circle expense code: 421990 431950 431990 432200 433100 44x300 443700 443950 Other City Council Administration Elections Finance Human Resources Planning and Zoning Data Pi oce55ing City Hall Economic Development HRA General Operating Supplies Newsletter Services MisrellarrevUs Prof Services Postage TraveVTraining Expe4ise Dues Membershij) & Subscrip Licenses and Permits Misr. Other Expense CREDIT CARD ORDER Payment :states: AF PI -11- ed 1341 Domino's pim (0163) 295-2424 11113r17017 4:47 PH Order 508908 Server 4267 Delivery VIGKI MRIEF!= 505 WALNU1 ST Gla" i;lt � i.rVT �NIP.AWF SMF WC {'1631 295-2711 Visa Ck�LOIi rAHD # XXXXXXXXXYXX7045 REFERENCE 6509281b815 AWROVAL COUL 0ti338G Await 1 iu -- .-, t o t a l ---- ------ -- -------- 40 Sll,i#AYI�RE i ACRE(. In PAY 'M A61M TWAL AMOUNli A(aHUM TO CARO ISSUEH A(I # ,11 W Thank You for btlii10 a piece of t hi; Pie Rewitr(6 Membe r W EXPO If+.. - - ... . - ._........ . ANY DEI.I'v M (;HAKf iS M01 A TV PAID TO YOUR DRIVER Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 02/01/2018 - 11:23AM Batch: 00215.01.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46522-438100 XCEL ENERGY ZCULPS-EXPENS- 51-0623082-8- 3� 01/31/2018 0 1731 Vendor Subtotal for Dept:46522 17.31 The preceding list of bills payable was reviewed and approved for payment. Date: 2/14/18 Approved by Steve Johnson - Treasurer Subtotal for Fund: 213 17.31 Report Total: 17.31 AP -Transactions by Account (02/01/2018 - 11:23 AM) Page 1 Xcel Energyo RESPONSIBLE BY NATURE® YOUR MONTHLY ELECTRICITY USAGE ' ------- D J F M A M J J A S 0 N D DAILY AVERAGES Last Year Temperature 39° F Electricity kWh 0.2 Electricity Cost $0.58 QUESTIONS ABOUT YOUR BILL? See our website: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 571624311 EAU CLAIRE WI 54702-0008 Xcel Energy NORTHERN STATES POWER COMPANY Page 1 of 6 SERVICE ADDRESS ACCOUNT NUMBER 114 MONTICELLO EDA 51-0623082-8 =/OZ/2018 349 W BROADWAY ST MONTICELLO, MN 55362-9356 STATEMENT NUMBER STATEMENT DATE 571624311 12/04/2017 $17.31 SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Electricity Service 10/31/17 -12/03/17 7 kWh $17.31 Current Charges $17.31 ACCOUNT BALANCE Previous Balance As of 10/31 Payment Received Auto Pay 11/30 Balance Forward Current Charges Amount Due INFORMATION ABOUT YOUR BILL Thank you for your payment. RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS ACCOUNT NUMBER I DUE DATE 51-0623082-8 01/02/2018 1 $17.31 Your bill is paid through anautomated bankpayment plan ------ manifest line--------- I"I�III"�'I'�'�I'Illllll�ll�l'Il�'Ill�l��ll�lll'I�I'I�IIII'I��' MONTICELLO EDA 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 $16.60 -$16.60 CR $0.00 $17.31 $17.31 Automated Bank Payment 1 03 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 I..I�III"�'I'�'�I'IIIIIII�II�I'II�'lll�l��ll�lll�l�l'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 31 51010218 06230828 0000000173100000001731 Xcel Energy MAKING OUR COMMUNITIES A BETTER PLACE? WE VOLUNTEER! Charity is important, but to truly improve a community, we believe you need to be a living, breathing part of it. That's why we're dedicated to {dive back by vol4inteerincd for the many great nonprofits in our communities_ Learn more, visit xcelenergy_com! 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Start off 2018 by being green. Signing up is easy_ N Go to xcelenergy.com{RenewaMeConnectBusiness to enroll. cp (2)Choose how much renewable energy you want to subscribe to. C3) Select from three subscription options with set pricing: month-to-month, 5 -year and 10 -year. xcelenergy.cam 9) 2017 kcal Energy Inc- I Xcel Energy is a regislered hademark of 7(cel Energy Ir r- I 17-11-4U7 IA EDA Agenda - 02/14/18 5d. Consideration of approving a 2018 Farm Lease Agreement for Outlot F, Otter Creek Crossing. (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to approve a farm lease agreement with Tom & Matt Spike for the 13.6 acres of land at Otter Creek Crossing. The proposed contract is consistent with the farm lease agreement entered into with the same tenant for 2016 and 2017. The proposed rental rate of $1,100 is the same as it has been for the past two years. The lease allows the tenant access to farm the property between May 1 st and November 30, 2018 to prepare the ground, plant seeds, treat for weeds and harvest the crop. The lease land area is not irrigated. It is directly adjacent to land owned by the proposed lease tenant. The proposed agreement is included in your packet for review. Although the amount for the lease is less than the 2018 tax payment ($1,696), it is required that the EDA establish ground cover to manage erosion and control weeds at the site. As such, farming the property is preferred for this year over an alternative planting at this time. B. ALTERNATIVE ACTIONS: 1. Motion to authorize the EDA Executive Director and President to execute the Farm Lease agreement for Outlot F, Otter Creek Crossing as drafted. 2. Motion of other. C. STAFF RECOMMENDATION: Staff recommends alternative 1. D. SUPPORTING DATA: A. Farm Lease, Outlot F, Otter Creek Crossing - Draft B Aerial Image FARM LEASE THIS LEASE (the "Lease"), made this 15th day of February, 2018, by and between the City of Monticello Economic Development Authority, a public body corporate and politic and a political subdivision of the State of Minnesota (the "Authority"), and Matt and Tom Spike (the "Tenant"). 1. Property Description. The Authority hereby rents to the Tenant in consideration of the rents and promises hereinafter described the property (the "Property") generally described as PID 155171000060 containing approximately 13.6 acres and located along 90th Lane next to Otter Creek industrial park. The Property is legally described and depicted on Exhibit A attached hereto. 2. Term. The term of this Lease is for 7 months commencing on May 1st, 2018 and terminating on November 30th, 2018. 3. Rent. The annual rent due under this Lease is $1,100. The annual rent for the lease year shall be payable by August 1, 2018. 4. Authority Obligations. The Authority shall peaceably allow the Tenant to occupy the Property for normal and customary farming practices. The Tenant shall have reasonable access to the Property 24 hours per day, seven days per week for such purposes. 5. Tenant Obligations. Tenant shall be responsible for paying or doing the following: a. The Tenant shall occupy the Property for agricultural purposes only. The Tenant agrees to use normal and customary farming practices in the care and maintenance of the Property and, without limiting normal practices, keep the Property free of noxious weeds to the extent possible; b. The Tenant agrees to comply with all statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, county, municipal and other units of government regulating the use of the Property; 402309v1 MNI MN190-101 1 c. The Tenant shall allow access to the Property by the Authority and its agents during all reasonable hours for the purpose of examining the Property to ascertain compliance with the terms of this Lease and for any other lawful purpose; d. The Tenant shall not remove or move any existing structures or improvements made to the Property by the Authority. The Tenant may not store equipment on the Property for periods exceeding one week without coordinating such storage with the Authority; e. The Tenant shall not commit waste on the Property; f. Tenant shall refrain from using or applying any chemicals or products on Property which contains phosphorous; g. The Tenant shall plow back the Property prior to the termination of this Lease; and h. This Lease does not entitle Tenant to allow or authorize use of Property by any party for recreational purposes, including but not limited to hunting or the riding of all terrain or similar recreational vehicles. 6. Independent Entities. The Authority does not retain the Tenant as an agent of the Authority. The Tenant does not retain the Authority as an agent of the Tenant. The Authority shall not provide to the Tenant, its agents or employees, any benefits or expenses, including, but not limited to, insurance for liability or property, or ordinary business expenses. 7. Costs associated with Lease. The Authority is not responsible for paying any of the Tenant's costs associated with this Lease, including preparation of the Property for farming. The Tenant shall pay all costs related to farming the Property, including the cost of plowing the Property back prior to the termination of this Lease. 8. Insurance. The Tenant shall acquire and maintain property and liability insurance adequate for the Tenant's use of the Property. The Tenant shall provide proof of insurance upon request by the Authority. The Tenant, while performing any service or function related to this Lease, agrees to indemnify, hold harmless and defend the Authority and all its agents and employees from any and all claims, demands, actions or causes of action of whatever nature or character arising out of or by reason of the execution or performance of this Lease or use of the Property. 9. Assignment and Sublease Prohibited. The Tenant intends to farm the Property himself. The Tenant agrees that no assignment or sublease of the Property shall be effective without the prior written consent of the Authority. 10. Surrender of Possession. The Tenant shall surrender the Property to the Authority in good condition and repair upon termination of the Lease, whether by lapse of time or otherwise. 402309v1 MNI MN190-101 2 11. Termination Prior to Expiration. The Authority may, at any time after providing 90 days' written notice, terminate this Lease and take possession of the Property for any purpose deemed in the best interest of the Authority. The Authority shall allow the Tenant to remove crops with normal and customary farming practices or, if time does not so allow, return all rents paid for the year and compensate the Tenant at rates not exceeding the current market rate per acre for any crop planted but not harvested. 12. Remedy. If the Tenant fails to pay the rent when due or fails to perform any of the promises contained in this Lease, the Authority may, after furnishing the Tenant with a 30 -day written notice specifying the default, re-enter and take possession of the Property and hold the Property without such re-entering working a forfeiture of the rents to be paid by the Tenant for the full term of the Lease. If default occurs during cropping season, the Authority will harvest any and all remaining crops and apply proceeds from the sale thereof to any rent payment due or other outstanding obligations of the Tenant to the Authority. 13. Tenant's Default. In the event of one of the following acts, the Tenant shall be in default: a. The Tenant fails, neglects, or refuses to pay rent or any other monies agreed to be paid, as provided in this Lease when those amounts become due and payable, and if such failure continues for five days after written notification by the Authority; b. Any voluntary or involuntary petition or similar pleading, under any section of any bankruptcy act shall be filed by or against the Tenant or should any proceeding in a court or tribunal declare the Tenant insolvent or unable to pay debts; c. The Tenant fails, neglects, or refuses to keep and perform any other conditions of this Lease and if such failure continues for a period of 30 days after written notification by the Authority; or d. Should the Tenant make or attempt to make any assignment or sublease of any interest in the Lease or the Property without the prior written consent of the Authority. In the event of any default or violation of this Lease continuing more than 30 days after written notification of default by the Authority to the Tenant, the Authority may terminate the Lease and enter into and take possession of the Property. Possession of the Property in these conditions does not relieve the Tenant of the obligation to pay rent and abide by all other conditions of the Lease. In the event of any default or violation of the Lease continuing more than 30 days after written notification of default by the Authority to the Tenant, termination of the Lease and possession of the Property by the Authority, the Authority may lease the Property to another party without further obligations to the Tenant. 402309v1 MNI MN190-101 14. Loss and Damage. Tenant assumes and bears the risk of all loss and damage to the Property from any and every cause whatsoever, whether or not insured, except in the case of gross negligence or intentional misconduct on the part of the Authority, its employees, agents or contractors. No loss or damage to the Property or any part thereof shall impair any obligation of Tenant under this Lease and the Lease shall continue in full force and effect unless Tenant is unable to use the Property for the purposes intended under this Lease. 15. Limitation of Warranties and Liability. In no event shall the Authority be liable for special, incidental or consequential damages, including but not limited to lost profits, lost business opportunity, or damages related to Tenant's use or intended use of the Property. 16. Lease is Binding. This Lease shall be binding upon the parties hereto and their heirs, successors and assigns. 17. Notification. Notices related to this Lease shall be sent to the following addresses: a) As to the Authority: City of Monticello Economic Development Authority 505 Walnut Avenue, Suite 1 Monticello, MN 55362 Attn: Executive Director b) As to the Tenant: Matt and Tom Spike or to such other address as either party may notify the other of pursuant to this section. 18. Entire Lease. It is understood that this Lease contains all agreements, promises, and understandings between the Authority and Tenant regarding the subject matter hereof. This Lease supersedes any prior agreements between the parties regarding the subject matter hereof and any prior lease related to the Property. No modification to this Lease is binding unless made in writing and signed by the Authority and the Tenant. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. 402309v1 MNI MN190-101 4 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: President By: Executive Director STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of February 2018 by and , the President and Executive Director, respectively, of the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the political subdivision. Notary Public 402309v1 MNI MN190-101 Tom Spike Matt Spike STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of February, 2018 by , Tenant(s). Notary Public 402309v1 MNI MN190-101 EXHIBIT A Legal Description and Depiction of Property Outlot F, OTTOR CREEK CROSSING, Wright County, Minnesota 402309v1 MNIMN190-101 A_1 Subject Parcel City Boundary AMonticello CITY OF yY �I t :�- :-.tfi . r. -- May 4, 2016 i inch = 752 feet Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS,AEX, Getmapping,Aerogrid, IGN, IGP, sWsstopo, and the GIS User Community Map Powered by DataLink from WSB & Associates EDA: 02/14/18 6. Consideration to adopt Resolution 2018-03 approving a Purchase Agreement for Acquisition of a commercial property located at 103 Pine Street, PID #s: 155010052110, 155010052120, and 155010052102 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider purchasing a commercial property in the downtown core area. The property, which consists of three parcels, is located along Pine Street (MN TH#25) and also abuts River Street to the north. West Bridge Park is located just north of the property (across River Street). The City of Monticello owns a parcel containing a public parking lot just to the west of the property. The site is fully improved featuring buildings and/or asphalt parking lot and totals approximately 22,687.92 sq. ft. +/-. Wright County has a 2018 valuation of $430,845 for the three parcels. The seller has the property listed with K -W Commercial Midwest for $685,000. The seller has accepted the EDA offer of $517,200. The offer is a global settlement for a voluntary sale of the real property and a payment negotiated by the seller for relocation of their residential and commercial possessions calculated under the Uniform Relocation Act (URA). Zoning in this area is CCD (Central Community District) which currently allows a variety of retail and service businesses. Purchase of the property means that the EDA would hold this lot for future redevelopment. The exact timeline of such redevelopment is not yet determined. The recently completed downtown Small Area Study envisions significant portions of Block 52 as being prime redevelopment sites. The Plan recommends future uses such as dining -entertainment, service, retail and multi -family housing (rental or owner occupied) in potential vertical mixed-use development and/or horizontal mixed-use projects. Attached is a Purchase Agreement and EDA Resolution 2018-03 for the EDA's consideration. In March, 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. There are several tenants (estimated at 13 or 14) located in the building and they will need to be provided relocation benefits under the URA. The EDA previously authorized entering into an agreement with WSB & Associates to assist in following the URA steps in regards to notices and payment calculations as related to property acquisition for this particular address. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution 2018-03 authorizing the purchase of the commercial property located at 103 Pine Street. 2. Motion to deny approval of Resolution 2018-03 authorizing the purchase of the commercial property located at 103 Pine Street. 3. Motion to table consideration of the purchase and direct staff accordingly. EDA: 02/14/18 C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The property is a key parcel in the efforts to implement the Small Area Study vision for the Downtown area. Block 52 is a prime redevelopment area due to its proximity to the public park and also because the City and EDA combined currently own approximately 30 percent of the block. By consolidating additional land area under the EDA umbrella, it will make marketing the site easier because it will have fewer complicated issues to work through in negotiating future development of the site. The Downtown Small Area Study Implementation Steps Summary also identifies acquisition of this property as an important/critical goal (see attachment). The seller approached the EDA and entered into a Letter of Intent (LOI) outlining key terms of the proposed sale of the property. The offer price by the EDA is considerably lower than the list price of $685,000 (24.5 percent less), yet is a fair offer based on the County tax valuation of the property ($430,845). The EDA should establish a public purpose when purchasing property which is identified in the draft resolution. City staff will support the desired direction of the EDA in this matter. D. SUPPORTING DATA: a. Resolution 2018-03 b. Purchase Agreement c. Key Terms d. Property Information and Aerial Photo e. Zoning Map f. Small Area Study Perspective Illustration g. Downtown Small Area Study Implementation Summary PA EDA RESOLUTION NO. 2018-03 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 103 PINE 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 Kathleen A. Froslie and Michael W. Froslie (together, the "Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property located at 103 Pine Street (the "Property") in 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 $517,200.00 plus related closing costs. 1.03. The Authority finds that acquisition of the Property conforms to the City of Monticello's Block 52 Small Area Study, as approved by the City and Authority, and will facilitate the economic redevelopment and revitalization of this portion 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 March 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 14th day of February, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director EXHIBIT A PROPERTY Lots 11 and 12, Block 52, City or Townsite of Monticello, Wright County, Minnesota; and that part of Lot 10, Block 52, City or Townsite of Monticello, Wright County, Minnesota described as follows: beginning at the northeasterly corner of said Lot 10; thence southerly along the southeasterly line of said Lot 10, a distance of 26.00 feet; thence westerly to a point on the northwesterly line of said Lot 10 distant 26.00 feet southerly of the northwesterly corner of said Lot 10; thence northerly along said northwesterly line to said northwesterly corner; thence easterly along the northeasterly line of said Lot 10 to the point of beginning. Subject to and together with an ingress and egress easement across the southwesterly 10.00 feet of the northeasterly 36.00 feet of said Lot 10, as measured at a right angle to and parallel with the northeasterly line thereof. PID: 155010052110, 155010052120, and 155010052102 Error! Unknown document property name. PURCHASE AGREEMENT 103 Pine Street, Monticello, Minnesota THIS PURCHASE AGREEMENT ("Agreement") is made and entered into this —day of February, 2018 (the "Effective Date") by and between Michael W. Froslie and Kathleen A. Froslie, married to each other ("Seller"), and the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of Minnesota ("Purchaser"). RECITALS A. Seller is the fee owner of certain property situated at 103 Pine Street in Monticello, Wright County, Minnesota, and being legally described in Exhibit A attached hereto (the "Property") B. Seller desires to sell and Purchaser desires to purchase the Property, subject to the terms and conditions of this Agreement. AGREEMENT In consideration of the mutual covenants made below and other good and valuable consideration, the parties agree as follows: 1. Offer and Acceptance. Seller agrees to sell and Purchaser offers and agrees to purchase the Property, subject to the terms and conditions of this Agreement in a voluntary transaction with no threat of any eminent domain action, together with all buildings, improvements and fixtures owned by Seller, free of all leasehold interests beyond month to month tenancy as provided in Section 11, all easements, rights and appurtenances thereto, and all of Seller's rights, title and interest in all public ways adjoining the same. The parties agree that Seller, as owner of the Property, has waived Seller's rights to and has no claim for relocation assistance, services and benefits ("Relocation Benefits") under Minn. Stat. § 117.52 et. seq. and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by the Surface Transportation and Uniform Relocation Assistance Act of 1987 (the "Relocation Act"), but that the parties have negotiated a Purchase Price such that a portion is allocable to negotiated Relocation Benefits as described in Section 2. Upon execution of this Agreement, Seller shall provide to the Purchaser all existing Lease Agreements and contact information of all tenants holding leases on the Property or any portion thereof. 2. Purchase Price. The purchase price for the Property ("Purchase Price") is Five Hundred Seventeen Thousand Two Hundred and no/100s Dollars ($517,200.00) and is payable as follows: (a) Earnest Money: $ -0-, payable upon execution of this Agreement 5165440 MMI MN325-35 1 (b) The balance of the Purchase Price of $517,200.00, payable on the Closing Date (as defined hereafter). The parties agree that the Purchase Price is comprised of $157,500.00 allocated to the homestead/residential portion of the Property, $294,665.52 allocated to the commercial portion of the Property, $62,909.48 allocated to negotiated Relocation Benefits in connection with Seller's business and payable to the Seller, and $2,125.00 allocated to negotiated Relocation Benefits in connection with Seller's residence. 3. Salvage Rights. None 4. As -Is -Basis. It is specifically agreed that the Property is being conveyed to Purchaser by Seller in "As -Is -Condition" (with all faults). 5. Evidence of Title. Promptly after execution of this Agreement by the Purchaser's governing body, the Seller shall provide the abstract of title and/or any prior title policy covering the Property. Purchaser shall obtain, within ten (10) days after execution of this Agreement, for examination by Purchaser's attorney, a title insurance commitment issued by Preferred Title ("Title"). Within fifteen (15) days after the later of receipt of such title insurance commitment or the Effective Date of this Agreement, the Purchaser shall give notice in writing to the Seller of any defects in or objections to the title as so evidenced and Seller shall thereafter use its good -faith efforts to clear the title of the defects and objections so specified at Seller's expense. If Seller fails to clear title to the extent herein required or to submit evidence of ability to do so within thirty (30) days of the delivery of the notice of defects, the Purchaser will have the option to do either of the following: (i) terminate this Agreement; or (ii) cure the defects in title at the Purchaser's expense and proceed to Closing; or (iii) waive the defects and proceed to Closing. Title to be conveyed as herein provided shall be marketable title, free and clear of all liens, encumbrances, restrictions, options to purchase, and easements which do not interfere with Purchaser's proposed use for the Property, except as may be expressly waived by Purchaser. 6. Conditions to Closing. Closing of the transaction contemplated by this Agreement and the obligation of Seller to sell the Property and of Purchaser to purchase the Property is subject to the following conditions: 6.1 Purchaser shall have determined on or before the Closing Date that it is satisfied, based upon the results of and matters disclosed by any environmental or soil investigations or testing of the Property as provided in Section 7, that there are no environmental or soil conditions that would interfere with the Purchaser's proposed use of the Property; 6.2 Purchaser shall have reviewed and approved title to the Property pursuant to Section 5 of this Agreement; 6.3 Purchaser's governing body shall have approved and executed this Agreement on or 5165440 MMI MN325-35 2 before February 14, 2018; and 6.4 Written findings by the Planning Commission of the City of Monticello that the acquisition of the Property conforms to the City Comprehensive Plan. The above contingencies are for the sole benefit of Purchaser, and Purchaser shall have the right to waive those contingencies by giving written notice to Seller. If the contingencies set forth in this Section 6 have not been satisfied or waived by the Closing Date, Purchaser or Seller may terminate this Agreement by giving written notice to the other on or before the Closing Date. 7. Environmental and Soil Investigation. Purchaser and its agents shall have the right, at its sole option and risk, to enter the Property at reasonable times after three (3) days prior written notice for the purpose of testing soils, boring, surveying, or doing other such work as may be necessary to determine the suitability of the Property for use by Purchaser. If Purchaser investigates and tests the Property pursuant to this Section 7, Purchaser shall pay all costs and expenses of such investigations and testing and shall hold Seller and the real estate harmless from all costs, damages and liabilities arising out of Purchaser's activities. Upon request by Purchaser, Seller shall also permit Purchaser to review all environmental reports and files, if any, relating to the Property and in Seller's possession or control. Purchaser 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 Purchaser, including without limitation the cost of defending against any claim for a statutory lien against the Property resulting from labor, materials, equipment, skill or services furnished with respect to the Property at the request of Purchaser. This indemnification provision shall survive any termination of this Agreement. 8. Costs and Prorations. Seller and Purchaser agree to the following prorations and allocation of costs in connection with this Agreement and the transaction contemplated hereby: 8.1 Purchaser shall be responsible for closing costs including: a. State deed tax applicable to the transfer of the Property to Purchaser. b. Well certificate filing fee, if applicable. C. Conservation fee. d. Recording fees related to filing the Deed. e. Title company closing fee and drafting of documents, if any. f. Title commitment and title insurance premiums. 8.2 Seller shall be responsible for: a. all recording fees and charges related to the filing of any instrument required to make title marketable. b. all outstanding and unpaid utility bills to the Closing Date. 5165440 MMI MN325-35 3 9. 8.3 Seller shall be responsible for payment of the Real Estate taxes due and payable in the year of sale prorated to the Closing Date. Seller shall pay all real estate taxes due and payable for the years prior to Closing Date, together with all special assessments levied or pending against the Property. 8.4 Each of the parties shall pay all of its own respective attorneys' and/or brokers' fees in connection with the negotiation, preparation and closing of this Agreement and the transaction contemplated hereby. Closin . 9.1. Closing shall occur on or before March 15, 2018 or at such other date as may be agreed to by the parties in writing ("Closing Date"). Closing shall take place at Monticello City Hall, 505 Walnut Street, Monticello, MN or such other location as mutually agreed upon by the parties. 9.2. On the Closing Date, Purchaser shall deliver to Seller the Purchase Price and Seller shall execute and/or deliver to Purchaser: (a) A duly recordable warranty deed conveying fee simple title to the Property to the Purchaser, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to the Purchaser. (b) A duly executed affidavit regarding Seller; (c) 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; (d) A non -foreign affidavit, properly executed, containing such information as is required by the Internal Revenue Code Section 1445 and its regulations; (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) Abstract, if in Seller's possession; (g) Property Management Agreement as provided in Section 11 hereof; (h) Escrow Agreement as provided in Section 11 hereof; and (i) Any other documents reasonable required by Title or the Purchaser's attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 10. Possession/Condition of Property. Seller shall deliver possession of the Property to Purchaser on the earlier of 105 days after the Closing Date or June 30, 2018 (the "Vacation Date"), in the same condition as the Property existed on the Effective Date of this Purchase Agreement, subject to normal wear and tear. 5165440 MMI MN325-35 4 11. Holdover by Buyer. 11.1. Seller shall be authorized to occupy the Property until the Vacation Date (the "Holdover Period"). Buyer waives any right to receive rental payments from the Seller during this Holdover Period. 11.2. During the Holdover Period, the Seller shall have the right to continue all existing month-to-month tenant leases, provided that all such leases must terminate on or prior to the Vacation Date, and further provided that any business activities carried out by the Seller on the Property must cease on or prior to the Tenant Vacation Date. The Seller shall perform all agreed property management responsibilities pursuant to a mutually acceptable Property Management Agreement to be executed by Seller and Purchaser on the Date of Closing. The parties expressly agree and understand that the Seller shall not enter into any leases with new tenants on or after the date of this Agreement. 11.3. At Closing, Seller shall deposit the sum of $4,000 into an escrow account to be held by Title, pursuant to an Escrow Agreement between the Seller, Title, and the Purchaser. Such Escrowed Funds shall be held by Title and applied to payment of (i) any legal costs incurred by the Purchaser in connection with prosecuting any unlawful detainer actions after the Vacation Date, (ii) any costs related to the nonperformance by Seller of any property management responsibilities under the Property Management Agreement, and/or (iii) any utility bills unpaid and outstanding as of the Vacation Date. 12. Damages to Property. If the Property is substantially damaged prior to the Closing Date, Purchaser may at its sole option rescind this Agreement by notice to Seller within ten (10) days after Seller notifies Purchaser of the damage, during which 10 -day period Purchaser may inspect the Property. 13. Personal Property Not Included. Seller shall remove all personal property not included in this sale, prior to the Vacation Date. 14. Covenants, Representations and Warranties of Seller. 14.01. Seller represents that it is the fee owner of the Property. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Seller. 14.02. The Seller is not a "foreign entity" as such term is defined in the Internal Revenue Code. 14.03. The Seller is unaware of any latent or patent defects in the Property, such as sinkholes, weak soils, unrecorded easements and restrictions. 5165440 MMI MN325-35 5 l 4.04. Seller agrees to take no actions, without the prior written consent of Purchaser, to encumber title to the Property between the date of this Agreement and the time the Deed is delivered to Purchaser. 14.05. 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 Purchaser 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. 14.06. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made. 14.07. Seller warrants that the Property is serviced by city water and city sewer. 14.08. To the best of Seller's knowledge, the buildings are entirely within the boundary lines of the Property. 14.09. Seller warrants that Seller has received no notice of any action, litigation, investigation or proceedings of any kind against Seller or against the Property, nor to the best of Seller's knowledge any action, litigation, investigation, or proceeding pending or threatened against the Property, or any part thereof. 14.10. To the best of the Sellers' knowledge, methamphetamine production has not occurred on the Property. The Seller's representations and warranties set forth in this Section shall be continuing and are deemed to be material to the Purchaser's execution of this Purchase Agreement and the Purchaser'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 5165440 MMI MN325-35 6 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 Purchaser 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. 15. Covenants, Representations and Warranties of Purchaser. Purchaser is a public body corporate and politic under the laws of the state of Minnesota and has the power to enter into this Agreement and carry out its obligations hereunder. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Purchaser. 16. 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: 17. Underground Storage Tanks. Seller is not aware of any underground storage tanks on the Property. 18. Broker Commissions. Seller warrants and represents to Purchaser that it has retained K- W Commercial Midwest as its agent or broker in connection with this transaction; and that it will indemnify, defend and hold harmless Purchaser against any claim made by an agent or broker for a commission or fee based on Purchaser's acts or agreements. Seller understands and acknowledges that WSB & Associates, Inc. has represented only Purchaser in negotiating this Agreement, and has not represented Seller in any way. Seller has not relied upon Purchaser or WSB & Associates, Inc. for legal, tax or financial advice. 19. Legal Representation. Seller acknowledges that Kennedy & Graven is the attorney for the Purchaser and does not represent the Seller or Seller's interest in this transaction. If Seller requires legal representation, Seller must contact an attorney of Seller's choosing and at Seller's own cost. Seller further acknowledges that although Kennedy & Graven may prepare documents in connection with the closing, these documents are being drafted only to facilitate the completion of the closing of this transaction and do not constitute a representation of Seller's interest in this transaction. 5165440 MMI MN325-35 7 20. Miscellaneous. This Agreement represents the complete and final agreement of the parties regarding sale of the Property and supersedes any prior oral or written understanding. This Agreement may be amended only in writing executed by both parties. This Agreement shall be binding on the parties hereto, their successors and assigns. 21. Notices. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To the Seller: Kathleen and Mike Froslie 103 Pine Street Monticello, MN 55362 To the Purchaser: Executive Director City of Monticello Economic Development Authority 505 Walnut Ave. Suite # 1 Monticello, MN 55362 With Copies To: Martha Ingram Kennedy & Graven 470 US Bank Plaza 200 South 6th Street Minneapolis, MN 55402 Notices shall be deemed effective on the date of deposit as aforesaid; provided, however, that the time for response to any notice by the other party shall commence to run one business day after any such deposit. 22. Assignment. Purchaser shall have the right to assign its interest under this Agreement, without first obtaining the consent of Seller, provided that Purchaser shall remain liable to Seller under this Agreement. 23. Survival. All of the terms, covenants, conditions, representations, warranties and agreements contained in this Agreement shall survive and continue in force and effect and shall be enforceable after the Closing Date for a period of one (1) year. 24. Specific Performance. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity provided neither Seller nor Purchaser will not be liable for damages. 5165440 MMI MN325-35 8 IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date written above. SELLER Michael W. Froslie Kathleen A. Froslie BUYER CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director 5165440 MMI MN325-35 EXHIBIT A Legal Description of the Property Lots 11 and 12, Block 52, City or Townsite of Monticello, Wright County, Minnesota; and that part of Lot 10, Block 52, City or Townsite of Monticello, Wright County, Minnesota described as follows: beginning at the northeasterly corner of said Lot 10; thence southerly along the southeasterly line of said Lot 10, a distance of 26.00 feet; thence westerly to a point on the northwesterly line of said Lot 10 distant 26.00 feet southerly of the northwesterly corner of said Lot 10; thence northerly along said northwesterly line to said northwesterly corner; thence easterly along the northeasterly line of said Lot 10 to the point of beginning. Subject to and together with an ingress and egress easement across the southwesterly 10.00 feet of the northeasterly 36.00 feet of said Lot 10, as measured at a right angle to and parallel with the northeasterly line thereof. PID: 155010052110, 155010052120, and 155010052102 10 516544v3 MMI MN325-35 February 9, 2018 Key Terms — Purchase Agreement, 103 Pine Street, Monticello, MN 1. Voluntary Sale 2. Purchase Price: $517,200; Global Settlement includes relocation benefits calculated under URA 3. Earnest Money: $ - 0 - 4. Closing Date: March 15, 2018 5. Holdover Period: Seller and Tenants may occupy property to conduct business for 105 days or no later than June 30, 2018 6. Property Management Agreement: To be executed between Buyer and Seller governing Holdover period property management responsibilities and rights 7. Escrow Agreement: Amount = $4,000; ensures final expenses payment and vacate date compliance 8. Seller grants Buyer access to property to conduct environmental inspections prior to closing date 9. Personal property to be removed from Real Property by Seller and Tenants prior to vacate date .' f Wright Count Overview Legend Roads — CSAHCL - CTYCL —° MUNICL -- PRIVATECL -- TWPCL Highways Interstate -= State Hwy US Hwy City/TownshlP LImits 0C 0 t a Parcels Parcel ID 155010052110 Alternate ID n/a Owner Address FROSLIE,MIC HAEL & KATHLEEN A Sec/Twp/Rng 11-121-025 Glass 201 -RESIDENTIAL 103PINEST PropertyAddress 103 PINE ST Acreage n/a MONTICELLO, MN 55362 MONTICELLO District 1101 CITY OF MONTICELLO 882 H Brief Tax Description Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Block -052 LTS11& 128LK52EX E32FTOF NLY100FT OF LT 12 (Note: Not to be used on legal documents) Date created 7t2Q=7 Last Data Uploaded: 7/2W2017 3"M- AM �• Dewbpedby Schnjidw The SduteWer Corporation I L ti ,� - - i 'y• �r •'4 L;_ � '••y * ? ,'r SIL r�I� ;Jxt _ 'a j 5 i jT 5f1 r It lk Iro At 4 i. _ fir' �" r ' i. h� • ti .� t .. i* ` 1+: r' • ti P. Z r _rte } .ti { '} .� 1 r h�J .v I%T iy 7 1�. ' j* T} •' I - � •. F , � 1 ' _ ti ~, y IR•� ■ L' -_ _ �.�ti .�' -F, tT�+l �` r '.�� � • it �• y ! .. ri 7Mi 06 . - I Beacon - Wright County, MN c o- " n Wright County, M N Summary Parcel ID 155010052110 Property Address 103 PINEST MONTICELLO Sec/Twp/Rng 11-121-025 Brief Sett -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Block - Tax Description 052 LTS11&12BLK52EX E32FTOF NLY100FT OF LT 12 (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 201- (HSTD) RESIDENTIAL; 233 - (NON-HSTD) COMM LAND & Units BLDGS District (1101)1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 01/01/0001 Owner Primary Taxpayer Michael & Kathleen A Froslle 103 Pine St Monticello, MN 55362 GIS Acreage Parcel: 155010052110 Acres: 0.43 Acres USAB: 0.43 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 18,621.42 Land Page 1 of 4 i Unit •N yam{ T i Buildings Building 1 Year Built Architecture Grass Living urea Finished Basement Sq Ft Construction Quallty Foundation Type Frame Type Size/Shape Exterlor Walls Windows Roof Structure Roof Cover Interior Wails Floor Cover Heat Air Conditioning Bedrooms Bathrooms Kitchen 1962 N/A 5140 AVERAGE WOOD WOOD D N/A FACE BRICK N/A GABLE/HIP N/A N/A CARPET; SHT VINYL HW RADIANT CEN.EVAP 0 0 WA https://beacon.schneidercorp.com/Appli,cation.aspx?ApplD=l 87&LayerID=2505&PageTy... 7/20/2017 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 HWY25 N 1 0 0 0 18,621.000 LT 5.600 1.00 1.00 1.00 1.34 7.504 0.040 51589 2 HWY25 N 1 0 0 0 18,622.000 LT 5.600 1.0D 1.00 1.00 1.34 7.504 0.960 134,142 3 COMM BT.50SF 0 0 0 10,200.000 SF 0.500 1.00 1.00 1.00 1.00 0.500 0.040 204 4 COMM BT.50 SF 0 0 0 10,200.000 SF 0.500 1.00 1.00 1.00 1.00 0.500 0.960 4,896 Total 57,642.000 144,831 Buildings Building 1 Year Built Architecture Grass Living urea Finished Basement Sq Ft Construction Quallty Foundation Type Frame Type Size/Shape Exterlor Walls Windows Roof Structure Roof Cover Interior Wails Floor Cover Heat Air Conditioning Bedrooms Bathrooms Kitchen 1962 N/A 5140 AVERAGE WOOD WOOD D N/A FACE BRICK N/A GABLE/HIP N/A N/A CARPET; SHT VINYL HW RADIANT CEN.EVAP 0 0 WA https://beacon.schneidercorp.com/Appli,cation.aspx?ApplD=l 87&LayerID=2505&PageTy... 7/20/2017 Beacon - Wright County, MN Building 2 2017 Assessment Year Bulk 1962 Architecture N/A Gross Living Area 5440 Finished Basement Sq Ft $144,800 Construction Quality AVERAGE FoundatlonType CONCBLOCK Frame Type WOOD D sbe/Shape N/A Exterlor Walls CONC BLOCK Windows WA RootStructure N/A Roof Cover N/A Interior Walls N/A Flw Cover WA Heat WA Alr Conditio ft WA Bedrooms 0 Bathrooms 0 Kitchen WA Extra Features Page 2 of 4 Seq Code Description Dim i Dim 2 Units UT Unit Price AdJ 1 AdJ 2 AdJ 3 AdJ 4 % Good Div % Value 1 000001 COMMERCIAL 0 0 254,600.000 UT 1.000 1.00 1.00 1.00 1.00 100.00 0.040 407.36 2 000001 COMMERCIAL 0 0 254,600.000 UT 1.000 1.00 1.00 1.00 1.00 100.00 0.960 234639.36 Sales Multi Parcel IN Q Sale Date Buyer Seller ^ Sale Price AdJ Price Y WD U 03/15/2001 FROSLIE,MICHAEL RIVERSTREETSTATION,LLP$303,486 $303,486 ^FICD Q 02/14/1997 �~ FROSLiERIVER STREET STATION, LLP $303,486 $303,486 + There are other parcels involved in one or more of the above sales: Valuation Valuation (Working 2018 Assessment) 2018 2017 + Land Value $_144,830 $144,830 �+ BuildingV_alue,w�- . ._ ..._...___..M._.�.._._.___ ._ �_..~�. M.` —.... �...�.._.... _.._._-......_.-.__�. + .Extra Features Value - - ..._ __. _..w ._.._. _._ __... $254.600 $254,600 ■ Total Value $399,430 s349,d30 % Change 0.00% 0.00% Taxation 2017 Payable 2016 Payable 2015 Payable 20i4 Payable 2013 Payable Total Estimated Market Value $399,400 $399,400 $399,400 $416,100 $416,100 Excluded Value $0 $0 $0 $0 .__ _._.. _._ __.. ._- _ 0 Homestead Exclusion ($24.700) ($24,700) ($24,700) ($24,700) $0 Taxable Market Value $374,700 $374,700 $374,700 $391,400 $416,300 Net Taxes Payable $10,331.33 $10,828.24 $11,139.97 $13,131.06 $13,436.28 + Special Assessments $4646_7 $1,757.76 $1,384.03 $948.94 $861.72 e Total Taxes Payable $10,796.00 $12,586.00 $12,524.00 $14,080.00 $14,298.00 Taxes Paid Receipt M 2017 Assessment 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $144,800 $144,800 $144,800 $144,800 $161,500 + Estimated 8Ui�,; Value $254.600 ' $254.600 $254,600 254,600 _ _ _254,600 __..._ ._ ._ + EstinuitedMachineryValue $0 _ .. _ _,. $0 $0 0 $0 Total Estimated Market Value $399,400 i $399,400 $399A00 $399,400 $416,100 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $_144,830 $144,830 �+ BuildingV_alue,w�- . ._ ..._...___..M._.�.._._.___ ._ �_..~�. M.` —.... �...�.._.... _.._._-......_.-.__�. + .Extra Features Value - - ..._ __. _..w ._.._. _._ __... $254.600 $254,600 ■ Total Value $399,430 s349,d30 % Change 0.00% 0.00% Taxation 2017 Payable 2016 Payable 2015 Payable 20i4 Payable 2013 Payable Total Estimated Market Value $399,400 $399,400 $399,400 $416,100 $416,100 Excluded Value $0 $0 $0 $0 .__ _._.. _._ __.. ._- _ 0 Homestead Exclusion ($24.700) ($24,700) ($24,700) ($24,700) $0 Taxable Market Value $374,700 $374,700 $374,700 $391,400 $416,300 Net Taxes Payable $10,331.33 $10,828.24 $11,139.97 $13,131.06 $13,436.28 + Special Assessments $4646_7 $1,757.76 $1,384.03 $948.94 $861.72 e Total Taxes Payable $10,796.00 $12,586.00 $12,524.00 $14,080.00 $14,298.00 Taxes Paid Receipt M Print Date BIII Pay Year _... _... _ . _ ....._. Amt AdJ _ _ ._ ... _ _ .. ._ ... Amt Wrke Off - _... _ _ •- _...... _ .. Amt rg _...... _ . Chae _... _ _ _ Amt Payment 1380788 _Receipt _ 5/12/2017 _._.... 2017 $0.00 $0.00 $0.00 ($5,398.00) 1322286 10/11/2016 2016 $0.00 $0.00 $0.00 ($6,293.00) 1277653 5/10/2016 2016 $0.00 $0.00 $0.00 ($6,293.00) 1230187 10/9/2015 2015 $0.00 $0.00 $0.00 ($6,262.00) httos://beacon.schneidercom.com/Application.aspx?AppID=187&LayerID=2505&PageTy... 7/20/2017 Beacon - Wright County, Jv N Page 3 of 4 Receipt # Receipt Print Date BIII Pay Year Amt Adj AmtWrite Off Amt Charge Amt Payment 1192911 5/13/2015 2015 $0.00 $0.00 $0.00 ($6,262.00) 1142154 10/10/2014 2014 $0.00 $0.00 $0.00 ($7,040.00) 1089341 4/23/2014 2014 $0.00 $0.00 $0.00 ($7,040.00) 1080572 2/19/2014 2013 $0.00 $0.00 $0.00 $422.00 1068159 10/24/2013 2013 $0.00 $0.00 $0.00 ($231.23) 1068152 10/24/2013 2013 $0.00 $0.00 $55.88 ($1,221.64) 1061734 10/16/2013 2013 $0.00 $0.00 $0.00 ($5,752.01) 997514 4/22/2013 2013 $0.00 $0.00 $0.00 ($7,149.00) 1080573 2/19/2014 2012 $0.00 $0.00 $0.00 $438.00 963888 10/15/2012 2012 $0.00 $0.00 $0.00 ($7,447.00) 904185 4/25/2012 2012 $0.00 $0.00 $0.00 ($7,447.00) Photos r s+ Sketches 44' z � o ua 1 i En https://beacon.schneidercorp. comlApplication.aspx?AppID=187&LayerlD=2505&PageTy... 7/20/2017 Beacon - Wright ,County, MN 9 Map Page 4 of 4 AW No data available for the following modules: Land GA/RP. Transfer History. Maps and documents made available to the public by Wright County are not legally recorded maps nor surveys and are not Qf intended to be used as such. 5drsfder Last Data Upload: 7/20/2017 3:06:33 AM Developed by The Schneider Corporation https://beacon.schneidercor.p.com/Application.aspx?AppID=187&LayerID=2505&PageTy... 7/20/2017 . Beacon - Wright County, MN Page 1 of 2 jopoul famc TV , on Wright County, MN Summary Parcel ID 155010052120 PropertyAddress Units 3,200.000 650.000 Sec/TWp/Rng 11-121-025 Brief Tax Description Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Block -052 E32FT OF NLY100FT OF LOT 12 BLK52 . (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 233 - (NON-HSTD) COMM LAND & BLDGS District (1101)1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 01/01/0001 Owner PrlmaryTaxpayer Michael & Kathleen A Froslie 103 Pine St Monticello, MN 55362 GIS Acreage Parcel: 155010052120 Acres: a07 Acres USAB: 0.07 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 3,199.99 Land Seq Description 1 HWY25 N 1 2 COMM BT.50SF Dim 1 Dim 2 0 0 0 0 - Dim 3 0 0 Units 3,200.000 650.000 Unit UT Price Ad) i Adj 2 SF 5.600 1.00 1.00 SF 0,500 1.00 1.00 Eff AQ 3 Ad] 4 Rate Div % 1.00 1.34 7.504 LOW 1.00 1.00 0.500 1.000 Value 24,012 $25 Total . 3.850.000 24,337 Sales Multi Parcel IN Q Sale Date Buyer Seller Sale Price Adj Price Y WD U 03/15/2001 FROSLIE,MICHAEL RIVERSTREETSTATION,LLP $303,486 $303,486 Y CD Q 02/14/1997 FROSLIE RIVER STREET STATION, LLP $303,486 $303.486 +There are other parcels involved In one or more of the above sales. Valuation 2017 Assessment 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $24,300 $24,300 $24,300 $24,300 $27,200 + Estimated Building Value $0 $0 $0 $0 $0 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $24.300 $24,300 $24,300 $24,300 $27,200 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $24,337 $24,337 + BulldingValue $0 $0 + Extra Features Value $0 $0 = Total Value $24,337 $24,337 % Change 0.00% 0.00% https.//beacon.schneidercorp.comlApplication.aspx?AppID=187&LayerID=2505&PageTy... 7/20/2017 Beacon - Wright County, MN Taxation Page 2 of 2 Map No data available for the following modules: Land GA/RP, Buildings, Extra Features, Transfer History. 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. LI , Last Data Upload: 7/20/2017 3:06:33 AM Developed by The Schneider Corporation https://beacon.schneidercorp.com/Application.aspx?ApplD=l 87&Layer1D=2505&PageTy... 7/20/2017 2017 Payable 2016 Payable 2015 Payable 2014 Payable 2013 Payable Total Estimated Market Value $24,300 $24,300 $24,300 $27,200 $27,200 Excluded Value $0 $0 $0 $0 $0 - Homestead Exclusion $0 $0 $0 $o $0 = Taxable Market Value $24,300 $24,300 $24,300 $27,200 $27,200 Net Taxes Payable $710.85 $747.71 $770.56 $969.42 $960.28 + Special Assessments $149.15 $154.29 $159.44 $16458 $169.72 = Total Taxes Payable $860.00 $902.00 $930.00 $1,134.00 $1,130" Taxes Paid Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1380790 5/12/2017 2017 $0.00 $0.00 $0.00 ($430.0) 1322264 10/11/2016 2016 $0.00 $0.00 $0.00 ($451.00) 1277851 5/10/2016 2016 $0.00 $0.00 $0.00 ($451.00) 1230188 10/9/2015 2015 $0.00 $0.00 $0.00 ($465'00) 1192913 5/13/2015 2015 $0.00 $0.00 $0.00 ($465.00) 1142156 10/10/2014 2014 $0.00 $0.00 $0.00 ($567.00) 1089339 4/23/2014 2014 $0.00 $0.00 $0.00 ($567.00) 1061732 10/16/2013 2013 $0.00 $0.00 $0.00 ($565.00) 997513 4/22/2013 2013 $0,00 $0.00 $0.00 ($565.0 904186 4/25/2012 2012 $0.00 $0.00 $0.00 ($11180.00) Map No data available for the following modules: Land GA/RP, Buildings, Extra Features, Transfer History. 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. LI , Last Data Upload: 7/20/2017 3:06:33 AM Developed by The Schneider Corporation https://beacon.schneidercorp.com/Application.aspx?ApplD=l 87&Layer1D=2505&PageTy... 7/20/2017 Beacon - 'Wright County, VIN Page I of 2 (10*' tl Wright County, MN Summary Parcel ID 155010052102 Property Address Sec/Twp/Rng 11-121-025 Brief Sed -11 Twp -121 Range -025 ORIGINAL PLAT MONTI CELLO Block -052 TH PRT OF LTIODES COM NE COR TH SLY26FTTH WLY TO W LN Tax Description TO PT26FTS OF NW COR TH NLY ALG NWLY LN TO SD NWLY COR TH ELY ALG NELY LN OF LT10TO POB BLK 52 (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 233 - (NON-HSTD) COMM LAND & BLDGS District (1101)1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 0101/0001 Owner PrimaryTaxpayer Michael & Kathleen A Froslie 103 Pine St Monticello, MN 55362 GIS Acreage Parcel: 155010052102 Acres: 0.02 Acres USAB: 0.02 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 85751 Land Unit Eff Seq Description Dim 1 Dlm 2 Dim 3 Units UT Price Adj i Adj 2 Adj 3 Adj 4 Rate Div % Value 1 DOWNTOWN 0 0 0 858.000 SF 8.250 1.00 1.00 1.00 1.00 8.250 1.000 7,078 Total, 858.000 7,078 Sales Mufti Parcel IN Q Sale Date Buyer Seller Y WD U 03/15/2001 FROSLiE,MICHAEL RIVERSTREETSTATION,LLP Y CD Q 02/14/1997 FROSLIE RIVER STREET STATION, LLP + There are other parcels involved in one or more of the above sales: Valuation Sale Price Adj Price $303,486 $303,486 $303,486 $303,486 Valuation (Working 2018 Assessment) 2018 2017 + Land Value 2017 Assessment ''. 2016 Assessment 2015 Assessment 2014 Assessment 2013 Assessment + Estimated Land Value $7,100 $7,100 $7,200 $7,200 $7,200 + Estimated Building Value $0 $0 $0 $0 $0 + Estimated MachlneryValue $0 $0 $0 $0 $0 Total Estimated Market Value $7.100 ' $7,100 $7,200 $7,200 $7,200 Valuation (Working 2018 Assessment) 2018 2017 + Land Value $7,078. $7,078 + Building Value $0 $0 + Extra Features Value $0 $0 R Total Value $7,078 $7,078 % Change 0.00% 0.00% https://beacon. schneidercorp.com/Application.aspx?AppID=18 7&LayerID=2505&PageTy... 7/20/2017 Beacon ;-:Wright County, MN 'Page -2-of ,2 -- Taxation 2017 Payable 2016 Payable 2015 Paya,bW. 2014 Paya -e 2613 Payable TotalI Estimated Market Value $ 70100 $7.200 $7,200 $7,200 $7,200 Excluded Value $0 $0 $0 0 $- $0 Homestead Exclusion $0 $0 $0 $0 lsp Taxable Market Value $7,100 $7,200 $5,200 '$7,200 7;200 Net Taxes Payable $290 .00 $222,00' J-1; 228.00 ', $154.00 SpeclalAssessments -1000 $0.00 TotalTaxes$208A0 Payable $=.00 5-�00 2. Taxes Paid Receipt # Recelpt Print Date BUIPay Year Amt M Amt Write Off AMfChwp A*PaYment 1380789 5/12/2017 2017 $0.00 $0.00 $0.00 ($104.00) 2-2-8-5 I0II1/20'1'6 2016 $0.00 $0.00 1277852 5/10/2016 2016 $0.09 $0.00 $000 is111.6) 1230189 10/9/2015 2015 $000 $0.OD 1 $0.00 1192912 5/13/2015 2015 $0.00 $0 .00 0,1100) 1142155. 10/10/2014 . 1 . . 2 01 4 $0.00 $0.00 50.00 ($12800) 1089340 4/23/2014 2014 $0.OD $0.00 $0.00 1061731 10/16/2013 2013 $000 $0.00 $0.00 997511 4/22/2013 2013 $000 $0.00 $0.00 µ ($127-.00) 904189 012 2012 $0.00 $0007. 40490) Map 14slats avallable for'thefolloWft modules: Land 6ANP, Buildings, Extrafeitures, Transfer*-Hlstory,Phplbs, 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. Last Data Upload: 7/20/100 3.06:33 AM Developed by The schnede'r Corporation https-.11beacon.schneidercorp.comlApplication.aspx?ApplD=187&LayerlD=2505&PageTy... 7/20/2017 103 Pine Street February 8, 20 1 inch = 376 feet Performance Agriculture - Single Family High Density Highway Light Industrial Based Overlay Open Space and 2 Family Residential Business Heavy Industrial DistrictResidential Residential Regional Special Use Amentities Residential _Manufactured — Home Park - BU#iX�ttman Planned Unit CITY OF _ = District District Planned Unit District Central -- Development =� Montl�llo MN Wild and Single Family Development Neighborhood Community ROW i-"" -- Scenic River Residential Medium Density Business District Split Districts Traditional Residential Limited Industrial and Freeway Bonus Neighborhood Business Business District Residence Area Campus Distriq P Powered by DataLink from WSB & Associates F r, � �-, 4-, C -), f �? r - O-t- ro r 1 e > 1 1 IN Downtown Small Area Study Implementation Workshop November 16, 2017 P --------------------------------------------------------------------------------------------------- articipants 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... "k1, `°��' i• �.,✓/�._ fir �' » ; y, .......................................................... Project Implementation Exercise 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 Tasks: 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: 02/14/18 7. Consideration to authorize entering into an Agreement with Central Minnesota Housing Partnership to conduct a Feasibility Analysis for a Redevelopment - Rehabilitation Program in targeted areas of the City for a fee of $1,000 (JT/AS) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider authorizing entering into an Agreement with the Central Minnesota Housing Partnership (CMHP) to conduct a feasibility analysis for a redevelopment -rehabilitation program in targeted areas of the City. The EDA recently had a workshop in which CMHP staff explained how they assist communities in administering redevelopment and rehabilitation programs for residential and commercial properties. CMHP has a proven track record of assisting in meeting key community needs in the development of affordable housing as well. The focus of the CMHP proposal for Monticello is to assess if there is merit to establishing a program to address declining conditions of - scattered through a loan -grant program. Staff would ask that within the scope of evaluation, CMHP also provide guidance as related to whether properties may be suited to redevelopment or rehabilitation. CMHP's scope also includes an initial evaluation of opportunities for commercial property rehabilitation or redevelopment in the downtown area. This component pairs well with the work staff is completing to determine interest and program framework for a downtown business loan -grant program. The attached proposal outlines the scope of work and the fees involved in the inspection. The benefit of conducting a feasibility report is that it will give an idea of weather there is a solid basis for establishing a redevelopment -rehabilitation program. Al. STAFF IMPACT: There is a limited staff impact in considering entering into a feasibility analysis with CMHP. Staff will assist in conducting a windshield survey in the community to determine volume of work. A2. BUDGET IMPACT: Per the email from CMHP, their charge rate for conducting a feasibility analysis where no SCDP application submittal is required (instead using local dollars to fund the program) is $1,000. This is a reasonable fee. The EDA has funds available in the 2018 budget under the "Miscellaneous Professional Services" line item to cover this expense. B. ALTERNATIVE ACTIONS: 1. Motion to authorize entering into a Feasibility Analysis Services Contract with CMHP to conduct an analysis of the merits of establishing a housing and commercial redevelopment -rehabilitation program in targeted areas of the City. 2. Motion to deny authorization to enter into a Feasibility Analysis Services Contract with CMHP to conduct an analysis of the merits of establishing a housing and commercial redevelopment -rehabilitation program in targeted areas of the City. EDA: 02/14/18 3. Motion to table consideration of entering into a Feasibility Analysis Services Contract with CMHP to conduct an analysis of the merits of establishing a housing and commercial redevelopment -rehabilitation program in targeted areas of the City. C. STAFF RECOMMENDATION: Staff recommends alternative 1. By completing the feasibility analysis, it will ensure that the EDA is headed in the right direction with it concept of establishing a redevelopment - rehabilitation funding program. The actual work of identifying potential properties and target areas is included in the feasibility scope. This will be very helpful in correlating with property valuations and further understanding the merits of the entire residential program concept. Based on the scope provided, CMHP's assistance will also provide insights for the downtown loan program concept. D. SUPPORTING DATA: a. CMHP email regarding the proposal for a feasibility analysis 2 Jinn Thares To: Jason Krebsbach Subject: RE: FW: Follow up on the potential of CMHP administering Loan Rehab Progrmas in Monticello From: Jason Krebsbach [mailto:jason@cmhp.net] Sent: Tuesday, February 06, 2018 7:52 PM To: Jim Thares Subject: Re: FW: Follow up on the potential of CMHP administering Loan Rehab Progrmas in Monticello Hello Jim: Below are details of our typical SCDP preliminary proposal services we provide to applying cities. Preliminary Proposal Prep & Submission b Work with city to define the proposed activities of the program • Conduct windshield surveys to determine condition of housing stock/commercial properties and estimate per unit rehabilitation cost • Conduct windshield surveys and review valuation data to determine condition of housing stock/commercial properties to evaluate redevelopment opportunities A Work with city and/or other local groups to program financing structure, eligibility and program requirements • Research and compile demographic data pertaining to residents and properties • Determine initial program budget based on average costs, matching resources and number of units proposed • Conduct community meetings and provide additional outreach to generate interest lists Write narrative section of preliminary proposal and organize demographic information r u r -a 1. r - r r •• r r r r r r ■ r ► r •• r • rMCM r We have a three-tier fee structure based on the distance of the city from our CMHP office. For a SCDP preliminary proposal we would charge the city of Monticello a fee of $1,750. However, with the potential rehab program being proposed we would not have to compile demographic data, or be writing/submitting a grant application. Therefore, a fee of $1,000 would be acceptable for CMHP staff to assist in the program feasibility process. This fee would be used to cover staff time, travel, materials, etc. associated with the program feasibility process. Please let me know if you have any additional questions. Thank you, Jason Krebsbach Central Minnesota Housing Partnership, Inc. Community Development Director 37 28th Ave. North Suite #102 - St. Cloud, MN 56303 CMHP main office: (320) 259-0393 Direct phone: (320) 258-0672 Email: Jason cmhp.net Web: www.cmhp.net amazon. You shop. Amazon gives. When you #StartWithaSmile, Amazon donates 0.5% of the purchase price to Central Minnesota Housing Partnership Inc. Bookmark this link AmazonSmile and support us every time you shop. On Fri, Feb 2, 2018 at 5:47 PM, Jim Thares <Jim.Thares@ci.monticello mn.us> wrote: Hi Jason, can you provide an answer to the question below regarding your charge rate? If so, let me know. Hope you had a great weekend! From: Angela Schumann Sent: Thursday, February 01, 2018 4:43 PM N To: Jim Thares Subject: RE: Follow up on the potential of CMHP administering Loan Rehab Progrmas in Monticello Thank you! Did he by chance provide information on what the flat rate might be to determine program feasibility? Angela Schumann, AICP Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. From: Jim Thares Sent: Thursday, February 1, 2018 8:18 AM To: Angela Schumann <Angela.Schumann ci.monticello.mn.us>; Jacob Thunander <Jacob.Thunander@ci.monticello.mn.us> Subject: FW: Follow up on the potential of CMHP administering Loan Rehab Progrmas in Monticello FYI From: Jason Krebsbach [mailto:jason@cmhp.net] Sent: Wednesday, January 31, 2018 2:19 PM To: Jim Thares Subject: Re: Follow up on the potential of CMHP administering Loan Rehab Progrmas in Monticello M Attached is a template administrative agreement that we've used with other cities. Of course it could be tweaked if needed, but this will give you an idea of what we usually have. EDA: 02/14/18 7.5. Consideration to adopt Resolution 2018-04 authorizing entering into Letter of Intent (LOI) and a Purchase Agreement Acquisition of a commercial property located at 112 West River Street PID #s: 155010052131 (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider authorizing entering into a Letter of Intent (LOI) to purchase a commercial property in the downtown core area. The property consists of a small, fully -improved parcel in the middle of Block 52. It is a flag shaped lot with access via River Street. The address is 112 West River Street. The City of Monticello owns a parcel containing a public parking lot just to the west of the property. Site improvements consist of a building, constructed in 1948, and utility services and an asphalt driveway connecting to River Street. The parcel is approximately 5,014 sq. ft. +/-. The 3,432 sq. ft. +/- building covers 69 percent of the parcel. Wright County has a 2018 valuation of $93,000 for the property. The seller purchased the property for $250,000 via a Contract for Deed in 2006 which was towards the top of the market prior to the Great Recession. The current EDA offer for the property is $390,000. This is a global settlement and includes all relocation benefits allowing the owner -occupant, Union Speed & Style, to move to another location with its equipment and supplies. Union Speed & Style manufactures custom high-end automobiles. All work is performed inside of their building. No outside storage is allowed at the site. Zoning in this area is CCD (Central Community District) which currently allows a variety of retail and service businesses. Purchase of the property means that the EDA would hold this lot for future redevelopment. The exact timeline of such redevelopment is not yet determined. The recently completed downtown Small Area Study envisions significant portions of Block 52 as being a prime redevelopment area. The Plan recommends future uses such as dining -entertainment, service, retail and multi -family housing (rental or owner occupied) in potential vertical mixed-use development and/or horizontal mixed-use projects. Attached is a LOI and EDA Resolution 2018-04 for the EDA's consideration. The LOI is a non-binding document that serves as a commitment to finalize a purchase agreement largely consistent to the terms included in that document. In March, the Planning Commission will be asked to consider the acquisition in conformance with the Comprehensive Plan as required by state statutes. The formal Purchase Agreement will be presented to the EDA at the regular meeting on March 14, 2018 for ratification. t. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution 2018-04 authorizing entering into the LOI for the purchase of commercial property located at 112 West River Street. 2. Motion to deny approval of Resolution 2018-04 authorizing entering into the LOI for the purchase of the commercial property located at 112 West River Street. EDA: 02/14/18 3. Motion to table consideration of the LOI and direct staff accordingly. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The property is a key parcel in the efforts to implement the Small Area Study vision for the Downtown area. Block 52 is a prime redevelopment area due to its proximity to the public park and also because the City and EDA combined currently own approximately 30 percent of the block. By consolidating additional land area under the EDA umbrella, it will make marketing the site easier because it will have fewer complicated issues to work through in negotiating future development of the site. The Downtown Small Area Study Implementation Steps Summary also identifies acquisition of this property as an important/critical goal (see attachment). The EDA's offer price of $370,000 reflects the appraised value of $290,000 that Nagell Appraisal placed on the property in its appraisal report dated December 15, 2017. It also includes an amount for relocation of Union Speed & Styles' equipment and its business reestablishment expenses in another location. The EDA should establish a public purpose when purchasing property which is identified in the draft resolution. City staff will support the desired direction of the EDA in this matter. D. SUPPORTING DATA: a. Resolution 2018-04 b. LOI c. Appraisal Report d. Zoning Map e. Small Area Study Perspective Illustration f. Downtown Small Area Study Implementation Summary PA RESOLUTION NO. 2018-4 A RESOLUTION AUTHORIZING NEGOTIATION OF A PURCHASE AGREEMENT FOR THE PURCHASE OF PROPERTY LOCATED AT 112 WEST RIVER STREET WHEREAS, Jordan Dickinson and Jesse Dickinson (together, the "Seller") owns real estate located at 112 West River Street (the "Property") in the City of Monticello; and WHEREAS, the City of Monticello Economic Development Authority (the "EDA") desires to purchase the Property from the Seller in a voluntary, arms -length transaction; and WHEREAS, EDA staff has caused to be prepared a letter of intent to acquire the Property for its assessed market value of $370,000 (the "LOI"), and if the offer is accepted by the Seller, EDA staff and consultants shall cause to be prepared a purchase agreement (the "Agreement") substantially consistent with the terms of the LOI. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: I . The recitals set forth in this Resolution are incorporated into and made a part of this Resolution. 2. The LOI is hereby approved, subject to acceptance of the LOI by the Seller and subject to formal approval of the Agreement by the EDA. 3. The President and Executive Director are hereby authorized and directed to execute all appropriate documents necessary to submit the LOI to the Seller and effectuate the transaction contemplated by this Resolution. 4. The President and Executive Director, staff and consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution, including, without limitation, negotiating the Agreement for approval by the Board. Approved this 14th day of February, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executive Director February 14, 2018 Jordan Dickinson Jesse Dickinson Biff's Garage LLC d/b/a Union Speed & Style DRAFT 112 West River Street Monticello, MN 55362 RE: Letter of Intent Dear Jordan and Jesse: The City of Monticello Economic Development Authority ("EDA") hereby makes an offer to purchase your commercial property located at 112 West River Street, Monticello, MN ("Property"). The purpose of this Letter of Intent ("Letter") is to establish basic terms and conditions of the proposed purchase of the Property, by the EDA. The terms in this Letter reflect a mutual understanding to effect a property purchase/sale, although it is further understood that the terms and conditions will not become binding until a Purchase Agreement substantially consistent with this offer is executed by the EDA as Buyer and as you as Seller, as contemplated below. Description of Property: The Property is located at 112 West River Street, Monticello, MN with the following PID #: 155010052131. Included in the sale of the Property are the building (Real Estate) located on the Property and all permanent fixtures and property that integrally belongs to or is part of the Real Estate, whether attached or detached, such as light fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, boilers, water heater, water softener, air-conditioning equipment, built-in items, outside television antenna, fencing gates and landscaping. Purchase Price; Closing Date: The EDA offers a Purchase Price of $370,000, which sum includes compensation for any and all relocation assistance and benefits for which the Seller may be eligible. to be paid as follows: $10,000 to be paid as earnest money deposit at the time of Purchase Agreement execution and the balance of $360,000 due at closing. Closing on the conveyance of the Property will occur on or prior to April 15, 2018 (the "Closing Date"). Closing Costs: At Closing, Seller will pay prorated real property taxes due through the Closing Date, any special assessments levied against the Property due and payable in the year of Closing, all recording fees and charges relating to the filing of any instrument required to make title marketable. Buyer will pay recording fees and charges related to the filing of the deed from the Seller, the cost of any survey of the Property, the fees of any title commitment and premiums required for issuance of a title insurance policy, fees for any environmental assessments or other tests ordered by the Buyer, closing fees charged by the title company engaged by the parties in connection with the Purchase Agreement, and Buyer's legal and accounting fees. Buyer shall pay Seller's legal fees relating to this transaction, whether Closing occurs or not, but in no event shall Buyer's 51709M MNI MN325-6 obligation to pay legal fees exceed the amount of $2,250. Seller shall be responsible for Seller's legal fees over and above the amount of $2,250. _ �- -- Formatted: Left Division of Real Estate Payment Amount and Relocation Payment Amount: The Seller, at Seller's sole discretion, will determine any portions of the Purchase Price allocable to Relocation, provided that the Seller agrees that the total Purchase Price fully compensates the Seller for any Relocation payable to the Seller. Possession Date/Seller Vacate Premises: Seller will vacate the Property within 365 days from date of Closing, but no later than March 31, 2019 (Vacation Date), unless the parties mutually agree to negotiate a month-to-month lease extending beyond the Vacation Date and allowing occupancy of the Property by the Seller beyond the Vacation Date. The lease rate for such month-to-month lease shall be sufficient to pay all costs of utilities, prorated property taxes, and other costs related to Seller's occupancy of the Property. Buyer will take full possession of the Property on April 1, 2019 or such later date agreed to in the month-to-month lease. Insurance and Risk of Loss: Following the Closing Date, the Buyer shall procure and maintain Property insurance, with a minimum coverage limit of at least $500,000. Buyer shall assume all risk of loss of damage for destruction of the Property following the Closing Date. Seller will continue to maintain adequate amounts of commercial general liability insurance coverage and renter's insurance for the time period between the Closing Date and the Vacation Date or such later date agreed to in any month-to-month lease. Waiver of Rent Payments: Seller shall be authorized to occupy the Property and conduct regular business activities until the Vacation Date. Buyer waives any right to receive rental payments during this period, except that Seller shall pay standard operating costs such as utilities, and prorated property taxes during the period of occupancy. Carry -Over Tenancy and Property Management Responsibilities: The Seller shall perform all agreed property management responsibilities pursuant to a mutually acceptable Property Management Agreement to be executed by Seller and Buyer on the Closing Date. Under this agreement, Seller shall be responsible for all property operating expenses and repair costs, provided that if a repair deemed necessary for continued occupancy of the Property is estimated to exceed $1,000, the Seller may refuse the repair after notifying the Buyer in writing, and shall vacate the Property as soon as practicable thereafter. Seller shall not enter into any subleases for any portion of the Property effective upon the execution of the Purchase Agreement. At Closing, Seller shall place $10,000 of the Purchase Price proceeds (the "Escrow Funds") in escrow with the title company handling the Closing to ensure performance of Seller's required property management responsibilities, prorated payment of property taxes assessed in 2018 and payable in 2019, and vacation of the Property on or before the Vacation Date. The parties shall enter into an escrow agreement outlining specific conditions for release of the Escrow Funds and the escrow fee, if any, shall be shared equally by the parties. 517090v2 MNI MN325-6 Property Inspections: After final acceptance of a binding Purchase Agreement, Buyer may have the Property and Real Estate inspected by a person/firm of Buyer's choice to determine if there are environmental issues or hazards or building contaminants. Seller understands the need to allow the inspections to occur on the property and will cooperate in this endeavor. The Buyer may terminate the Purchase Agreement at its sole discretion if environmental issues or contaminants are discovered. Buyer understands that Seller will make no representations or warranties regarding the environmental and physical conditions of the property and Buyer's purchase of the property will be on an as -is basis. Buyer shall defend, indemnify, and hold Seller harmless against any environmental claims or actions asserted by any governing bodies or third parties following the Closing. Personal Property: Personal property is not included in the purchase/sale and is to be removed by the Seller prior to the Vacation Date. Title Review: Seller will provide Buyer with existing Title information upon execution of a Purchase Agreement. Buyer will have 14 days to inspect the state of Title to the Property, and will provide written objections to Title if necessary. Seller shall have 30 days to cure any Title defects. If such objections are not cured following the 30 -day period or a longer duration if mutually agreed-upon, Buyer may terminate the Purchase Agreement at its sole discretion, or waive title objections and proceed to closing. Standard Provisions: the Purchase Agreement will include standard provisions that are customary under State and local law. • Buyer and Seller Commitment and Understanding of Responsibilities: This Letter does not and is not intended to, contractually bind the parties, and is only an expression of the basic terms and conditions to be incorporated into a binding Purchase Agreement. Furthermore, this Letter is an outline of key terms and conditions but is not all inclusive of the essential terms and conditions of any potential Purchase Agreement. The parties shall not be contractually bound unless and until they enter into a formal, written Purchase Agreement, which must be in a form and content satisfactory to each party. The Buyer and Seller hereby agree in good faith, to diligently work toward the completion of a written, formal Purchase Agreement that expresses the terms and conditions herein mutually agreed upon. Formal Approval Required by Buyer: The purchase offer is subject to formal approval by the governing body of the Buyer, findings by the City planning commission of compliance with the City comprehensive plan, and execution of a Purchase Agreement. Mutual Understandings: The above Letter of Intent reflects the mutual understandings and sets forth the basis for proceeding to negotiate a written, formal Purchase Agreement as outlined above. 51709M MNI MN325-6 Buyer: Seller _Biff's Garage, LLC By: Its: 51709M MNI MN325-6 DATE: DATE: File #G1710011 Report Type Restricted Appraisal Report Prepared BY: Erin VVaytos.Appraiser William R. Waytas, Appraiser Nagell Appraisal Incorporated 12805 Highway 55, Suite 300 55441 :ax: 952.544.8969 NAGELL APPRAISAL INCORPORATED 12805 Highway 55, #300 Minneapolis: 952-544-8966 Plymouth, MN 55441 St. Paul: 651-209-6159 Established in 1968 Central Fax: 952-544-8969 City of Monticello December 15, 2017 Attn: Jim Thares, Economic Development Director 505 Walnut Street Monticello, MN 55362 To Jim Thares: In accordance with your request, a Restricted Appraisal Report for internal specified use only (less extensive collection, verification, analysis, viewing, etc., used in the valuation approaches) has been made on the following described property. See scope of work within report. Subject Property: Auto Shop Property 112 River Street West Monticello, MN 55362 Described below is a summary of the appraisal report contained herein. Progerty Overview The subject is an auto shop property located in Monticello. Monticello is a community situated along the banks of the Mississippi River and the Interstate 94 corridor approximately half -way in-between the metro and St. Cloud. The subject is 3,432 SF and has a small office area and the rest of the space is used for shop space for working on vehicles and motorcycles. The subject site is 5,014 SF with majority of the yard being encumbered by the building and the remaining areas is flagpole access to River Street West, see aerial. Typically, auto shop properties require adequate to good onsite parking for storage for vehicles that are being worked on, employee parking, and customer parking. However, this is somewhat offset due to the subject being located adjacent to the City public parking lot. Current owner purchased the subject for $250,000 in 2006, which was towards the top of the market prior to the Great Recession. Majority of markets and larger communities are back to pre -recessions values with slight increase. Overall the subject is rated to have average appeal and to be in average condition. Report Use Decision making purposes regarding a potential property swap lnfPnrlPrl 11QPr City of Monticello Attn: Jim Thares, Economic Development Director 111 Letter of Transmittal — Continued Extraordinary Assumptions None Hypothetical Conditions None Property Rights Appraised — Fee Simple Interest: The subject is 100% owner occupied Property Components Appraised — Real Estate: The appraised value includes the real estate value opinion. — Furniture, Fixtures, & Equipment (FF&E): The appraised value does not include personal property or FF&E. Appraised value does not include any tanks, pumps, equipment, etc. Appraised value reflects real estate only. — Business Value: The appraised value does not include any business value. Highest and Best Use Conclusions — As Vacant: Assemble with adjacent properties for development — As Improved: Current office/shop related use Valuation Methodology Given the highest and best use, the following approaches are used: — Cost Approach: Not applied due to subjective depreciation estimates and scope of assignment — Sales Comparison Approach: Competing industrial properties will be considered. — Income Approach: Not applied due to owner occupancy and scope of the assignment. iv Letter of Transmittal — Continued The following value is concluded: FINAL VALUE OPINION (as -is, effective December 5, 2017, fee simple): $290,000 Exposure Time / Marketing Time Our company has 11 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment. The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Please contact us if you have further questions. Sincerely, Erin Waytas Trainee Appraiser MN 40368620 www.nagelimn.com William R. Waytas Certified General MN 4000813 V Final values reflect "market exposure" time of under 1 year before the effective Exposure Time: date of the appraisal. Changes in the market, use, lease and/or building subsequent to the effective appraisal date could impact value. Marketing Time: Marketing times for appropriately priced properties is generally 12 months or less after the effective date of the appraisal. Our company has 11 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment. The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Please contact us if you have further questions. Sincerely, Erin Waytas Trainee Appraiser MN 40368620 www.nagelimn.com William R. Waytas Certified General MN 4000813 V TABLE OF CONTENTS SUMMARY OF IMPORTANT FACTS & CONCLUSIONS ............................................... 7 VALUE TYPE, CONDITION & STABILITY OF PROPERTY ........................................... 8 INTENDED USE OF THE APPRAISAL........................................................................... DATEOF APPRAISAL....................................................................................................8 PROPERTYRIGHTS APPRAISED................................................................................. 9 PROPERTY COMPONENTS APPRAISED.................................................................... 9 SCOPE OF THE APPRAISAL REPORT.......................................................................10 IDENTIFICATION..........................................................................................................11 REALESTATE TAXES.................................................................................................11 SUBJECT SALES & BUILDING HISTORY...................................................................12 SUBJECTMARKET OVERVIEW..................................................................................13 LOCATIONMAP...........................................................................................................14 SITEDESCRIPTION.....................................................................................................15 PLATMAP....................................................................................................................16 AERIALVIEW...............................................................................................................17 DESCRIPTION OF IMPROVEMENTS..........................................................................18 BUILDINGSKETCH......................................................................................................20 SUBJECTPHOTOGRAPHS.........................................................................................21 HIGHESTAND BEST USE...........................................................................................24 COSTAPPROACH.......................................................................................................24 INCOMEAPPROACH...................................................................................................24 SALES COMPARISON APPROACH............................................................................25 RECONCILIATION........................................................................................................32 EXPOSURE TIME / MARKETING TIME.......................................................................32 DEFINITIONS...............................................................................................................33 ENVIRONMENTAL & STRUCTURAL ISSUES.............................................................34 EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS ..................... 34 ASSUMPTIONS AND LIMITING CONDITIONS............................................................ 35 CERTIFICATION...........................................................................................................37 QUALIFICATIONS........................................................................................................38 ADDENDA TO APPRAISAL REPORT.......................................................................... 41 vi SUMMARY OF IMPORTANT FACTS & CONCLUSIONS ,tt r yt. J r _ • ,�. ••� '�u.w4� ?we'_ � ,moi. - r!�,,,- , ,�':,. General Description: Auto Property Appraisal Report: Restricted Appraisal Report Current Use: Auto Shop Special Assumptions: None; see rear of report for standard assumptions. Site Size: 5,014 SF, 0.12 acres Building Size (GBA): 3,432 SF Age: 1948 Quality/Appeal I Condition: Average ( Average Zoning: CCD — Central Community District Current office/shop related use Highest and Best Use: Property Rights Appraised: Fee Simple Interest Property Components Appraised: Real Estate Only f Cost Approach Not applied Sales Comparison Approach $290,000 Income Approach Not applied FINAL VALUE OPINION (As -Is) $290,000 VALUE TYPE, CONDITION & STABILITY OF PROPERTY Type of Value: This report provides an opinion of Market Value. Condition of Value: This report provides an opinion of the as -is value. Occupancy of The subject is 100% owner occupied. Property: use or rely upon any part of this report without the prior written INTENDED USE OF THE APPRAISAL DATE OF APPRAISAL Effective Date: The client intends to use the appraisal for decision making re_gardin_g Inspection Date: potential property swap. This appraisal assignment was requested by Date of Report: the named client for its sole use. No party, other than the client, may Intended Use: use or rely upon any part of this report without the prior written authorization of both the named client and the appraiser. This report is not valid unless it contains the original signatures in blue ink. Any unauthorized third party relying upon any portion of this report does so at its own risk. City of Monticello Intended Users: Attn: Jim Thares, Economic Development Director DATE OF APPRAISAL Effective Date: December 5, 2017 Inspection Date: December 5, 2017 Date of Report: December 15, 2017 PROPERTY RIGHTS APPRAISED Real property ownership consists of a group of distinct rights. There are two primary property rights, Fee Simple and Leased Fee (as defined by The Appraisal of Real Estate, 13 Edition, Appraisal Institute). Fee Simple Interest: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Note: This would typically reflect an owner -occupied property. When the property rights appraised are the unencumbered fee simple interest of the real estate, the appraised value is subject to normal easements for drainage, public streets and utilities, if any. The effect of any existing mortgage or delinquent taxes on the subject property has not been considered in this appraisal. Leased Fee Interest: The ownership interest held by a lessor (landlord), which includes the right to the contract rent specified in the lease plus reversionary right when the lease expires. The lessor's interest in a property is considered a leased fee interest regardless of the duration of the lease, specified rent, the parties to the lease, or any of the terms in the lease contract. A leased property, even one with rent that is consistent with market rent, is appraised as a leased fee interest, not as fee simple interest. Even if the rent of lease terms are not consistent with market terms, the lease fee interest must be given special consideration and is appraised as a leased fee interest (rhe Appraisal of Real Estate, 13"' Edition, Page 114). The subject is 100% owner occupied, therefore fee simple interest is appraised. PROPERTY COMPONENTS APPRAISED Real Estate: The appraised value includes the real estate value opinion. The methods utilized for the real estate valuation include: i Sale Comparison Approach FF&E: No FF&E or personal property is included in the appraised value. Appraised value reflects real estate only. Business Value: There is no business value included in the appraised value. Z SCOPE OF THE APPRAISAL REPORT USPAP defines Scope of Work as: The type and extent of research and analyses in an assignment. For each appraisal, appraisal review and appraisal consulting assignment, an appraiser must: 1) Identify the problem to be solved, 2) Determine and perform the scope of work necessary to develop credible assignment results; and 3) Disclose the scope of work in the report. 1) Provide a reasonably supported opinion of value as it relates to the intended use. Per assignment request (see addenda for engagement letter), the following degree of research 2) and analysis has been made. The narrative format used is a Restricted Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-213 of USPAP. See individual approaches for further detail. The scope of work for this appraisal includes: • a) Property Identification: Public record, plat maps, zoning maps and aerial photographs were used to identify the subject property. • b) Property Viewing: A viewing of the subject property (exterior and interior), and neighborhood by the appraiser. Physical factors: Based on property viewing and conversations with the client, city and county officials. Lot size is based on county records. Economic Factors: Consisted of gathering of information from market experts, city and/or county offices, and internet about the region, community, neighborhood, zoning, utilities, and any pending projects in the area that may affect the subject property. • c) Extent of Data Researched: Sales data of competing properties within the subject market area were given primary consideration. The most relevant data is used in this report. 3) Sources include, appraiser data files, assessor, internet, developers, agents, MLS, etc. In addition, during the course of appraisal practice and of this appraisal process, the appraiser has had ongoing discussions with market participants (buyers, sellers, property managers, real estate agents/brokers, appraisers, etc.) and/or viewed market data in relation to how the current real estate market may impact the subject value. The appraiser has not researched the title or ownership records. • d) Type and Extent of Analysis Applied at Opinions or Conclusions: The most recent, similar and proximate data has been used. The data used will be analyzed qualitatively. Less extensive collection, verification, analysis and viewing has been used in the valuation approaches, given the purpose and intended use of the report. Although a restricted report typically has brief statements and conclusions, with most data and analysis retained in the appraiser's work file, however, for purposes of this assignment, most of the appraiser's work file is within the report as the data, analysis (qualitative grid) and conclusions are included in the report and are briefly summarized to assist the client in understanding the opinions and conclusions set forth. A final value opinion will be discussed and correlated. The data used was obtained from sources considered credible, yet its accuracy is not guaranteed. If found to be otherwise, appraised value given in this report could change. 10 IDENTIFI CA TION Street Address (per County): 112 West River Street Payable 2017 Monticello, MN 55362 PID # (per County): 155010052131 N/A Sect -11 Twp -121 Range -025 ORIGINAL PLAT MONTICELLO Block -052 TH PRTS 2.3%1$0.61 OF LTS13,5&6 DES BEG AT MOST ELY COR OF LT13 TH S 25D16'44"W ALG Special Assessments / Solid Waste Fee/Other SELY LN OF LT13 165.36FT TO MOST SLY COR OF LT13 TH N64D58'26"W ALG N/A N/A SWLY LN OF LT13 3.06FT TO OUTSIDE BLDG LN TH S24D18'51"W ALG SD COUNTY ASSESSOR'S VALUE OUTSIDE BLDG LN .27FT TO BLDG COR TH N65D40'10"W ALG SD OUT SIDE Legal Descriptions: BLDG LN 44FT TO BLDG COR TH N24D18'51"E ALG SD OUTSIDE BLDG LN Land 78FT TO BLDG COR TH S 65D41'09"E ALG SD BLDG LN 3.33 FT TO NWLY LN $39,300 OF SELY 45FT OF SD LT13 TH N25D59'31 "E ALG SD NWLY LN 3.11 FT TO If 3 700 SWLY LN OF NELY 85FT OF LT13 TH S65D E ALG SWLY LN 30FT TO NWLY LN TOTAL OF SELY 15FT OF SD LT13 TH N25D 16'44"E ALG SD NWLY LN 85FT TO NELY $93,000 LN OF LT13 TH S65D E15FT TO POB The Fee Owner Biffs Garage, LLC (taxpayer) (per County): Bruce & Marilyn Springborg (fee owner) Census Tract #: 1002.03 REAL ESTATE TAXES Taxes, per County Records a Payable 2017 Payable 2018 Tax $2,092.97 N/A Tax ratio /per SF 2.3%1$0.61 NIA Special Assessments / Solid Waste Fee/Other 615.03 $2,708.00 N/A N/A Total Tax & Assessments: COUNTY ASSESSOR'S VALUE Payable 2017 Payable 2018 ! Land $39,300 $39,300 Building If 3 700 IL3.700 TOTAL $931000 $93,000 $/SF of GBA $27.10 per SF $27.10 per SF Typical Tax Ratios by Property Type Commercial (retail, office, industrial, hotel, other, etc.) 3.0%-4.0% Residential (multi -family, apartment, etc.) 0.9%-1.5% Single-family dwellings 0.8%-1.5% The appraised value given in this report assumes any/all special assessments, and/or liens are paid in full and that there are no delinquent taxes, fees, payments, association dues, etc. Should it be found that any of these exist the amount should be deducted from the appraised value. Appraiser did not research these items; typically, a title search would reveal any of these. Appraised value assumes the street improvements are complete. Comments: Taxes appear to be on the lower end of range given appraised value. 11 SUBJECT SALES & BUILDING HISTORY Listing History: The subject does not appear to be actively listed for sale. Sales History: Pending Sale: Sale Price: n/a Sale Date: n/a Buyer: n/a Seller: n/a Terms: Typical Source: Realist Current owner purchased the subject in 2006 for $250,000 which was near the top of the market prior to the Great Recession. No known or reported sales were found within the past 3 years. None reported Building History: Per county sketch the subject was constructed in 1948; however prior listings for the subject (2005 and 2006) report the age of the subject being 1980 and 1999. Lease History: The subject is 100% owner occupied, no reported lease. Leasehold Interest: Association Dues: None apparent, subject is currently owner occupied. The subject does not appear to be a part of a CIC. 12 SUBJECT MARKET OVERVIEW City & Neighborhood: Monticello is located about 45 minutes northwest of Downtown Minneapolis and 40 minutes southeast of St. Cloud. Access to Interstate 94 is conveniently located near the subject parcel. Interstate 94 provides direct access to the Twin Cities Metro Area, St. Cloud, and surrounding communities. Monticello has a reputation as a stable community, with nearby shopping and access to many major roadways. Access to Downtown and surrounding communities is considered average. Major shopping and commerce are located within the City of Monticello. No other apparent adverse influences. Market Conditions: Local (Wright county) Industrial Property Listings: 0 active listings listing Industrial Property Sales in the subject area: 4 sales (past year) The current subject market is considered to be relatively balanced. Not uncommon for sales to be between related parties or word-of-mouth transactions, as such limited active listings. Market Conditions: State / National: The macro economy (international, national, state, etc.) was deemed to be poor since its peak in 2006, but is showing signs of bottoming out in 2010. Many economists have termed the economic decline as the "The Great Recession." Many property types did j experienced significant decline during the recession. While total recovery is expected to span several years, recent trends indicated some recovery is taking place. Since mid -2010, the economy has shown slow/stable recovery, the unemployment rate has improved, most property types have shown stabilized pricing, with some value growth in good/close-in markets. However, since, many properties have largely recovered. Current Market List Current $/SF Location GBA Cate List Price 16783 Toronto { Prior Lake 5,700 SF October 2017 $510,000 $89.47 Auto shop property with onsite parking. Market participant comments/observations: Prime auto shop properties require good frontage on a busy road. Including good frontage, buildings with an appealing fagade stand out. Generally, up kept and visually pleasing neighborhood facilities have stronger appeal for market participants. Demand is approximately four times more than the supply. Most sales are never listed on the market due to related parties purchasing, employing purchasing, tenant purchase, being approached, etc. It can be difficult to get a foot hold into the auto shop market. Commercial/shop properties with good yard space have strong appealing in the market per Wayne Elam. Auto shops in particular require adequate onsite parking for parking cars that are being worked on. 13 LOCATION MAP ColdRodcvi9e, – C H I S A 0 0 Balsam 4 t . • t0.r 0mocl, i 4Ce ntW � °.hfleervvetx � ; Taylo' i........_........_ ............... ...... .C._... '_,_ Becker C.•...�.. Llnastra+n nCenterCRV a St. Francis .• t - 9A*Ct 8etlted i CRY Promm ' Lake 1M o9 .e ...... ............ • Y Oak .. Ot0�0 .`O.scede Wretld� �' 1 s ♦ .. X24! .a ..:. .....y...; .� : .. ...... Atr,Ondaie 's Otsego s- A N O K aA LAe a East i NRm Forest Leke FarrNgton ` W R 1 O K T f�bertv®a + ti I *pie Lake' _.. St. Allrileel` r • • t 14 � 'c� +Ford%—r Adm Cantere6utfab .. t0Ai #A N N E S O T A NortA .Litchfield : Fork Grow `• �r,�, 10 .D—vin Corcoran. a E F. r' E R "L2> s • .�Ccdtford Maple lake Deseel '�_, Waverly. + Eagle ke ,M1Tasningbr HDWWdLde Martroae Lake e.A Pe' ace H E N N E P �.N�Delen ..... ....��s ........ldaPxldOlnce ��a �Orono° ..._............ i ..._..........._... (All .. �!LargLeew,fPl n Mkbte� _ t >rs Mound. 1° or�Caa, ��L paA1 d72' m +StverLOke "Q4YWood,. MbrhgtrFata+ ' + `TMlCrr�.9 H,tcFrtaOrs Lester Pferie......................... °Liir¢ds10r r .. y' Lake so o ~ t Far* Cram ,Yrts ChenMeean 'den ���1 M C L E O D 212 glOdidnpton C A R V E R { Tj +Yo%xV Ams1ca oW Wmpels'..u.. Gbncae Ruo u"{ �9uRalr aNmwood DeWgr4n e Lake_a5te vert 211 GreeA Hem" i •-' 161 *&owrtm ..... + - . Prior Laim. New Auburn —^ Oneka Lake Ide , c t or L.atwA rk. :... Bear Sonl6rad is ! X36 ` a I-' c se fair• Mehlaned, .. a�piwata< Be S t N vood o eke Brtlo . Noft WASH6uOTON T Lakekmde?, Hudsm a Roberta, Hm a 18 . + i1A0 L Cattapa i *Mw Faf!s i se ion °a � Rosemou±t ��e- Tri D A K O T A 35 lift- St N' A? 4 it at W 1610 r 1 Y '� f CDw,tq-Raart 14 NWet 1e ski stn st w 033�°V � 'a0°�' � ter`.`` � '�,�� .,. t �, .. ,•�•' • -. or etw or Dundes Rd 95rtn St NE a Q ,,Meadow + 14 SITE DESCRIPTION Dimensions: Irregular, flagpole access Gross Site Area: 5,014 SF, 0.12 acres, per Realist and aerial GIS measure Useable Site Area: Appears 100% Topography / Shape / Low: Mostly level / Rectangular with flagpole access / None apparent Soil conditions: Assumed to be stable Utilities: City Water / City Sewer Off -Site Improvements: Typical street & utility improvements; Frontage: River Street West Access to site (#): River Street West (1) Visibility: Average for use Flood hazard zone: Appears no, Zone X, Map #2705410005B, Date November 1, 1979 Apparent Easements: Typical utility and drainage assumed; appears there may be some driveway/access easements to subject property; if found to be otherwise appraised value could differ Encroachments: None apparent Unusual Conditions: None apparent Zoning: CCD, Central Community District — it appears the current use may be grandfathered under zoning. Appraised value assumes the current use can continue going forward, if found to be otherwise appraised value could differ. Current Use: Office / Shop — Auto Bus Line: None apparent. Excess / Surplus Land None apparent; smaller land to building ratio Functional Adequacy: Average Surrounding Uses: N City public parking E Church S Commercial W City public parking Distance to Major Road: Less than a block to Highway 25 which connects to interstate 94 Subject is located on the fringe of the downtown commercial area. The subject is rated to have average overall visibility for use. Limited to nil onsite parking available for the subject however, adjacent to the subject is city public parking. Reportedly no vehicles can be parked in the parking lot overnight. No apparent adverse influences. 15 PLAT MAP Per county. 16 r { r Ad �. )f Davlee , 3 Salon ` 0o ng Its Sit Ie �...- Lucille Murray s%% 4 /ti Studio-Dane'°�r f •,� i i % Walk in GI n t II Monticellon OF t - s Tax ServiceA t$� = f DESCRIPTION OF IMPROVEMENTS Subject Data Type of Building: Gross Building Area: Office / Shop — Auto 3,432 SF, per county Year Built: 1948, per county Quality / Condition: Average / Average Type of Construction Structure: Concrete block, concrete slab Roof: Flat rubber roof, approximately 15 years old per owner Exterior: Concrete block Doors / Windows: Metal & glass / Casement, glass block, ages unknown Basement / Mezzanine: None / Small storage mezzanine not included in GBA due to no finish, and very low clear height Stairs / Elevator: None / None Mechanical / Plumbing / Insulation HVAC / Insulation: GFA/AC, office, approximately 10 years old per owner; overhead heaters shop Electrical / Plumbing: Adequate, 3 phase 220 amp / Adequate Hot-water heater / Sprinkler: Adequate / None in Description of Improvements — Continued Interior Finish Office 15% Shop 85% Size: 515 SF approximate 2,917 SF approximate Ceiling: Composite board Composite board Lighting Fluorescent Fluorescent Walls / Floors: Drywall / Concrete Concrete Restrooms: 1, concrete floor; Layout: Typical single user office/shop (auto) related property Site Improvements Parking / Other: Limited to nil onsite parking; public parking located adjacent to subject, however, cannot park over night / Flagpole access to street Depreciation Effective age: 25 years Est. Remaining Econ Life: 25 years Deferred Maintenance: None apparent or reported Functional: Functional design for current use and/or office/shop related user; limited to nil parking onsite External: Yes; cost & value not presently equal Physical: Slight, cost and value not presently equal Subject property supports a single user layout and has limited to nil available parking onsite. Limited parking somewhat offset due to public parking lot located adjacent to the subject property, however, cars that are being worked on may not be parked in parking lot overnight. Recent Updates: Typical maintenance and updating throughout assumed; Strengths: Appealing neighborhood situated along the Interstate corridor; broad appeal for office/shop users Weaknesses: Limited to nil onsite parking; WE BUILDING SKETCH 44 II li CO BAS1948 ao 3432 44 Per county. 20 SUBJECT PHOTOGRAPHS r I � Looking west on River Street West Driveway access 4 ;• - 1 b, Y 1 n s� Front / Side view Rear / Side view 21 I �•`1e � rA F'�+moi ( Z 'F r�i• f •Xe / * t \ fl � a Xo' t r4i bo w rkkNb, rim I 4A HIGHEST AND BEST USE As Vacant: The highest and best use is considered for assembly with adjacent properties for development. As Improved: There appear to be two options for the subject: 1. Raze the Improvements: This option is not logical, as the existing improvements are substantial and have remaining economic life. 2. Current use: The current use as a single user auto shop property is logical and appears to have functioned as such for some time. Continued ongoing use is logical. Based on the above discussion, option two appears to be the most logical. Therefore, the highest and best use of the subject property is the auto shop related use with updating as necessary as zoning allows and market demand warrants. COST APPROACH The Cost Approach will not be utilized due to subjective depreciation adjustments. As such, the Cost Approach is considered to be the least reliable approach and is therefore not applied. INCOME APPROACH The Income was considered however was not applied due to the owner occupancy, and scope of the assignment. 24 112West River Street February 14, 21 Performance Agriculture - Based Overlay Open Space District Residential T Special Use Amentities District District iiAoMN Wild and AM-Woo. Single Family Scenic River Residential Districts Traditional Freeway Bonus Neighborhood District Residence Area 1 inch = 94 feet Single Family High Density Highway Light Industrial and 2 Family Residential Business Residential Manufactured Regional Heavy Industrial Residential --- Home Park Buftt%%ttman Planned Unit Planned Unit District Central Development Development Neighborhood Community ROW Medium Density Business District Split Residential Limited Industrial and Business Business Campus DistrichapPoweredbyDataLink from WSB & Associates F r, � �-, 4-, C -), f �? r - O-t- ro r 1 e > 1 1 IN Downtown Small Area Study Implementation Workshop November 16, 2017 P --------------------------------------------------------------------------------------------------- articipants 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... "k1, `°��' i• �.,✓/�._ fir �' » ; y, .......................................................... Project Implementation Exercise 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 Tasks: 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 Agenda: 02/14/18 7.6. Consideration to authorize solicitation of quotes for a Phase I Environmental Site Assessment (ESA) and further approving staff to select of the lowest most economical quote for investigation of two properties: 103 Pine Street and 112 West River Street (AS/JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider authorizing quotes and approving a contract for the lowest most economical quote for a Phase I ESA for property located at 103 Pine Street and 112 West River Street. As the EDA is aware, the Phase I Environment Site Assessment is wisely completed study when entering into property purchase transactions. The two referenced parcels are located in Block 52 adjacent to each other and it may be prudent to complete the Phase I study as soon as possible, contingent on EDA approval of Purchase Agreements for both properties. The scope of work would be consistent with the Minnesota Pollution Control Agency (MPCA) standard scope of work for Phase I investigations. Al. Budget Impact: The cost for a Phase I for a property in size area similar to the two referenced parcels is typically in a range of $2,600 to $4,200. The expense would be coded against the 2018 EDA General Fund budget line item for "Redevelopment Activities". A2. Staff Workload Impact: Minimal; limited to consultation with environmental consultants in preparation of this report. B. ALTERNATIVE ACTIONS: 1. Motion to authorize solicitation of quotes and further authorize staff to enter into a contract for service with the entity that provides the lowest, most economical quote for service in completing a Phase I for property located at 103 Pine Street and 112 West River Street. 2. Motion of other. C. STAFF RECOMMENDATION: City staff recommends Alternative #1. The analysis proposed will provided additional clarity on the conditions of the two sites in terms of preparation for future redevelopment. D. SUPPORTING DATA: None EDA Agenda: 02/14/18 8. 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. An illustration of the proposed sign will be provided at the meeting. B. I-94 West Corridor Coalition: The Legislative Preview Breakfast is coming up on Friday, February 16, 2018 — 8:00 a.m. to 9:30 a.m. at the Rogers Community Center C. Downtown Business Group Meetings — Downtown Plan Implementation Process: An update will be provided regarding the status of the first downtown business property - business meeting D. Prospects — See attached A spread sheet with the active prospects is attached. PROSPECT LIST 2/14/2018 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 Jim Thares From: Charlotte Gabler Sent: Friday, February 09, 2018 10:00 AM To: Jeff O'Neill; Rachel Leonard; Angela Schumann; Jim Thares; Brian Stumpf; Shibani Bisson; Outside Lloyd Hilgart; Jim Davidson; Bill Fair Subject: Fw: Attend I94 West Corridor Coalition Legislative Preview Breakfast HI All! If you are planning to attend please make sure you RSVP by clicking the REGISTER NOW below. Let's see if we can have lots of Magic City faces present! THANK YOU!! Charlotte Thank you and have a productive day! Charlotte Gabler Monticello City Council Member Term Expires Dec 31st, 2018 NOTICE: Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Data Practices Act and may be disclosed to third parties. From: 1-94 West Corridor Coalition <kim@velocitypublicaffairs.com> Sent: Wednesday, January 17, 2018 7:31 AM To: Charlotte Gabler Subject: Attend 194 West Corridor Coalition Legislative Preview Breakfast rrtaa�n Y� St C O R R I D O R 194 West Corridor Coalition Legislative Preview Breakfast When The 1-94 West Corridor Coalition would like to extend an Friday, February 16, 2018 from invitation to attend our Legislative Preview event. 8:00 AM to 9:30 AM CST 1 Add to Calendar This annual event allows for coalition supporters to directly engage with transportation leaders, hear legislators' perspectives, and learn about the 1-94 West Corridor Coalition's priorities. Where Rogers Community Center We experienced major success over the past years with the 21201 Memorial Drive opening of additional lanes between Highway 101 in Rogers Rogers, MN 5574 and Highway 241 in St. Michael, which included a 55% J reduction in total travel time and the completion of nearly 3 million square feet of industrial development in the region. We hope to continue making lane capacity expansion L. improvements onto St. Cloud and complete the Brockton/610 m Interchange with your help and the help of our supporters. 29th Ave N 2018 will be an exciting year for the Coalition! During the 2017 legislative session, the legislature added an additional $300 million in trunk highway bonds spread over four years and $25 Fletcher et.. million per year in cash to the Corridors of Commerce program. In response, MnDOT decided to select $400 million of projects 2018 Microsoft Garporatiar � 2018 HERE in the next round of Corridors of Commerce funding. The 1-94 g Driving Directions West Corridor Coalition intends to submit our eligible priority projects, the 1-94 capacity expansion from St. Michael to Albertville, 610 Interchange and Brockton Interchange, for the Corridors of Commerce funding selection which would greatly increase capacity and reduce congestion along the 1-94 Corridor. We are hoping that you are able to join us for our Legislative Preview event. Register Now! I can't make it Sincerely, Steve Bot Chairman 194 West Corridor Coalition I94 West Corridor Coalition, PO Box 95, Rogers, MN 55374 SafeUnsubscribeTM charlotte.gabler@ci.monticello.mn.us Forward email I Update Profile I About our service provider Sent by kim@velocitypublicaffairs.com in collaboration with CmsWnt Cbt#Wt', 01 Try it free today EDA Terminology Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible with the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenue to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments, net pension liabilities, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. Proceeds from long-term debt are reported as other financing sources. Proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds focus on the determination of operating income, changes in net position, financial position, and cash flows. S. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted — Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. • Committed — Consists of internally imposed constraints that are established by resolution by the city council, which is the city's highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless the city council modifies or rescinds the commitment by resolution. • Assigned — Consists of internally imposed constraints. These constraints consist of amounts intended to be used by the city for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to city council resolution, the council, city administrator, or finance director are authorized to establish assignments of fund balance. • Unassigned — The residual classification for the General Fund which also reflects negative residual amounts in other funds. The lower -of -cost -or -market (LCM) method is an inventory costing method that values inventory at the lower of its historical cost or its current market (replacement) cost. 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