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EDA Agenda 04-11-2018AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 11th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Staff. Executive Director Jim Thares, Jeff O'Neill, Angela Schumann, Wayne Oberg and Jacob Thunander 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda a. Consideration of approving Regular Meeting Minutes — March 14, 2018 b. Consideration of approving Special Workshop Meeting Minutes — March 14, 2018 c. Consideration of approving Special Workshop Meeting Minutes — March 28, 2018 d. Consideration of approving payment of bills e. Consideration of Preliminary Development Agreement with BP -Pines I, LLC Regular Agenda 5. Consideration of Bondhus Corporation EDA-SCDP Loan Application 6. WSB Update Report 7. Director's Report 8. 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, Subdivsion 3(c)(3). Address: 209 WALNUT ST., PID #: 155010036041 Address: 207 WALNUT ST., PID#: 155010036061 Address: 200 BROADWAY W., PID#: 155010036060 9. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 14th, 2018 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares and Angela Schumann 1. Call to Order Steve Johnson called the meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA EXCLUDING ITEMS A, B, C, AND F. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0. 4. Consent Agenda a. Consideration of approving Regular Meeting Minutes — February 14, 2018 ITEM WAS REMOVED FROM THE CONSENT AGENDA. b. Consideration of approving Special Workshop Meeting Minutes — February 14, 2018 ITEM WAS REMOVED FROM THE CONSENT AGENDA. c. Consideration of approving payment of bills ITEM REMOVED FROM THE CONSENT AGENDA. d. Consideration of Escrow Agreement between Michael W. Froslie and Kathleen A Froslie and City of Monticello EDA Recommendation: Approve Escrow Agreement related to the purchase of 103 Pine Street as presented. e. Consideration of Lease and Property Management Agreement with Michael and Kathleen Froslie Recommendation: Approve Lease and Property Management Agreement related to the purchase of 103 Pine Street as presented. f. Consideration of Northland Securities, Inc. contract for preparation of Affordable Housing TIF District materials and plan Economic Development Authority Minutes — March 14, 2018 Page 1 1 6 ITEM WAS REMOVED FROM CONSENT AGENDA TO ITEM 8.5. 4a. Consideration of approving Regular Meeting Minutes — February 14, 2018 Steve Johnson recommended changes to the regular meeting minutes for the adjournment of the meeting with the motion made by Steve Johnson. BILL TAPPER MOVED TO APPROVE THE REGULAR MEETING MINUTES FROM FEBRUARY 14, 2018. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. 4b. Consideration of approving Special Workshop Meeting Minutes — February- 14,2018 ebruary14,2018 Steve Johnson recommended changes to the adjournment of the meeting with the motion made by Bill Tapper. BILL TAPPER MOVED TO APPROVE THE SPECIAL WORKSHOP MEETING MINUTES FROM FEBRUARY 14, 2018. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. 4c. Consideration of approving payment of bills Jon Morphew asked why there were two separate charges for two of the same addresses from Kennedy and Graven. Jim Thares explained that it was an additional amount that was charged. TRACY HINZ MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH FEBRUARY, 2018. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. Regular Agenda 5. Consideration of Purchase Agreement for 112 West River Street Jim Thares explained that the property is located in a redevelopment area. The parcel is just above 5,000 square feet, with a building of 3,432 square feet. The County Market Value is listed as $93,000 for 2018. In 2006, the seller purchased the property under contract for deed for $250,000. The EDA authorized to make a purchase for the property at $370,000 with global settlement including all relocation benefits. The current owner is Union Speed and Style and would be allowed to remain in the building for one year with no rent charge. Lloyd Hilgart recalled from a previous meeting that the current owners would be moved by the end of the year. Thares indicated that they pressed to stay until March, 2019. Thares stated that the direction by the EDA was to negotiate with the owner to state that if a developer was interested in the land that Union Speed and Style would vacate the premises. Thares stated it would be unlikely that a developer would be ready for construction by March, 2019. Thares also indicated that all maintenance, utility bills, and Economic Development Authority Minutes — March 14, 2018 Page 2 16 all other charges for occupying the building would be the responsibility of Union Speed and Style until March, 2019. It was indicated that any unexpected charge under $10,000 (to be changed from $1,000 in the agreement) would be the responsibility of Union Speed and Style. Thares also added that they would pay property taxes until they vacated the building and any residual costs after their departure would be consumed by the EDA. Thares would verify. Angela Schumann stated that the EDA wanted it to be clear that in the purchase and lease agreement that the seller is responsible for all property management responsibilities, however the EDA would not be making any additional repairs or maintenance to the building. The seller could leave at any time and turn the building over to the EDA prior to March, 2019. Steve Johnson asked if there are any assessments against the building. Thares indicated he would check on that. BILL TAPPER MOVED TO APPROVE RESOLUTION 2018-05 AUTHORIZING THE PURCHASE OF THE COMMERCIAL PROPERTY LOCATED AT 112 WEST RIVER STREET WITH REVISIONS AS NOTED ABOVE. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0-1 WITH STEVE JOHNSON ABSTAINING. 6. Consideration of Downtown Business Improvement Program Group Meeting Findings Jim Thares indicated per direction at a previous EDA Meeting, staff was authorized to meet with downtown property and business owners to talk about potential loan and grant programs for fagade improvements, renovations and remodels, and energy efficiency. Meetings were held on February 12th and 26th and were well attended. A summary of the feedback was provided in the staff report. Thares hoped that during the April EDA meeting a proposal of loan or grant program would be further considered. Steve Johnson asked about the format of the program. Thares stated that staff would utilize Central Minnesota Housing Partnership's process and forms to administer the program. Thares explained the EDA would need to identify a funding source and approve the terms of the program. Additional discussion ensued. Thares indicated at the next EDA meeting, potential funding sources would need to be discussed. 7. Consideration of Downtown Building Facade Design Template Proposal Angela Schumann explained that the Cuningham Group has prepared a proposal in response to potential loan program offerings for areas such as facade improvements. Schumann indicated that the Cuningham Group watched the January EDA meeting in developing a proposal to match the EDA's discussion. Schumann understood from previous discussions that the EDA would like to provide examples of improvements that are consistent to the Small Area Study. Schumann reviewed the Cuningham proposal. She noted that the cost of the services for a Economic Development Authority Minutes — March 14, 2018 Page 3 1 6 visual companion to the Small Area Study would be $4,000. Steve Johnson asked if there would be multiple design concepts developed. Schumann indicated that they would provide a block template instead of individual design guidelines for buildings in the scope area. Schumann also stated that the City recently hired a Creative Art's Consultant that could also provide ideas to individual property owners. Bill Tapper requested that Cuningham be asked to provide design layouts to individual building property owners on an as requested basis. Schumann indicated that she would check with Cuningham Group to provide an itemized proposal to work with individual property owners as requested. Discussion continued regarding how prescriptive a building and facade improvement program should be for loans or grants. Schumann explained that the City also received a proposal for a walkability improvement program. Schumann stated that more information would be provided at the next EDA meeting. BILL TAPPER MOVED TO APPROVE THE PROPOSAL BY CUNINGHAM GROUP FOR DESIGN GUIDELINES FOR DOWNTOWN FAQADE IMPROVEMENT PROGRAM. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 8. Consideration of Concept Review of Multi -family "Affordable Housing TIF" Proposal Jim Thares explained that Briggs Properties would provide a presentation for a multi- family development proposal at the Master's Fifth Avenue site. He indicated that the development site concept was recently reviewed by the Planning Commission and City Council for preliminary comments. Patrick Briggs, Briggs Properties introduced himself and provided an overview of the project. A written narrative was provided explaining the general design concept and the amenities. Briggs indicated that the property currently is under a redevelopment TIF district, but that there is a restriction on utilizing increment dollars for the project due to the amount of time the land has been undeveloped. Briggs indicated that building materials and construction costs are increasing and he would not be able to proceed with the project without TIF assistance. Ideally, he would like to start building by July or August. Lloyd Hilgart asked for clarity on the redevelopment district. Discussion pursued. Angela Schumann explained that there is a five year rule that effects how a TIF district can be modified including the budget and the amount of TIF the developer is eligible for. The five year window was extended to ten years, however the ten years has since past. The buildings were demolished to begin that ten year window. The only funds the developer could seek is 25 percent of anything in excess of $170,000. Economic Development Authority Minutes — March 14, 2018 Page 4 16 Briggs explained that with a new TIF affordable housing district, it allows a new slate to start. Briggs stated the project would not be feasible under the current TIF district. Jim Davidson asked if a new TIF district offers a new TIF value. Briggs confirmed stating that it's based on the value of the project itself. Steve Johnson clarified that the current redevelopment TIF district would be decertified and an affordable housing district would be replaced. Briggs confirmed and stated a bank would not finance the project under the current TIF district. Tracy Hinz asked if there would it be enough time to set up the district by the July/August construction schedule. Thares confirmed that is generally possible. Additional discussion ensued regarding income restrictions for a set amount of units in the facility. JIM DAVIDSON MOVED TO CALL FOR SPECIAL MEETING TO REVIEW FINANCIALS AND PROCESS FOR PROPOSED TIF PROJECT. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. Thares clarified the date and time of the Special Workshop meeting as being Wednesday, March 28th at 4:30 p.m. 8.5 Consideration of Northland Securities, Inc. contract for preparation of Affordable Housing TIF District materials and plan Steve Johnson indicated that this item would allow work to begin that is pertinent to the information that needs to be discussed at the Wednesday, March 28th at 4:30 p.m. meeting. Thares confirmed. TRACY HINZ MOVED TO APPROVE NORTHLAND SECURITIES FINANCIAL PLANNING AGREEMENT FOR SERVICES RELATED TO THE CREATION OF AN AFFORDABLE HOUSING TIF DISTRICT AS PRESENTED. OLLIE KOROPCHAK- WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0. 9. Director's Report Jim Thares provided an overview of the Director's Report. Thares provided the EDA general fund balance, but noted that there are additional dollars that can be spent from TIF districts on the acquisition of property. Steve Johnson also explained that the tax levy dollars would be added by the end of June. Thares confirmed. Thares added that Phase I — Environmental review documents were completed by Braun Intertec for 103 Pine Street. No recognized environmental conditions exist on the property. Thares reviewed the prospect list with the EDA. Economic Development Authority Minutes — March 14, 2018 Page 5 1 6 10. Adiourn OLLIE KOROPCHAK-WHITE MOVED TO ADJOURN THE MEETING AT 7:42 P.M. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: April 11, 2018 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes — March 14, 2018 Page 6 1 6 MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 14th, 2018 — 4:30 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Bill Tapper, Tracy Hinz, Jon Morphew, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares, Angela Schumann, and Wayne Oberg 1. Call to Order Steve Johnson called the workshop meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Overview of Services and Charge Rates - Buxton (Jacob Davis) Jim Thares introduced Jacob Davis, Buxton, to the EDA and stated they would provide an overview of their services and charge rates. They are a retail recruiter and have their own proprietary demographic income database. They target retailers based on available income in the community. Thares stated that their fees are typically $50,000 per year and they prefer City's sign a three year contract. Jacob Davis indicated that Buxton has worked in communities as small as 5,000 people and as large as Los Angeles, California. He reviewed the potential services that Buxton could bring to Monticello. It was stated that they partner with retailers on site selection and cities to discuss their needs. Further discussion occurred about the cities that Buxton has successfully helped. Buxton is currently working with the City of Wadena on their economic development needs. Steve Johnson stated that the EDA would look more into the services that Buxton can offer. A future meeting will be scheduled to consider a contract with Buxton. 4. Adjourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 5:42 P.M. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: April 11, 2018 Economic Development Authority Minutes — March 14, 2018 Page 1 1 2 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes — March 14, 2018 Page 2 12 MINUTES SPECIAL WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 28th, 2018 — 4:30 p.m. Boom Island Room, Monticello Community Center Commissioners Present: Steve Johnson, Bill Tapper, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Commissioners Absent: Jon Morphew Staff Present: Jeff O'Neill, Angela Schumann, Jim Thares, and Wayne Oberg Consulting Staff Present: Tammy Omdal, Northland Securities and Martha Ingram, Kennedy & Graven, LLP 1. Call to Order Steve Johnson called the meeting of the EDA workshop to order at 4:30 p.m. 2. Roll Call 3. Consideration of Briggs Properties Affordable Housing TIF District, 1-40, Application Jim Thares stated that Patrick Briggs submitted a TIF application for an affordable housing TIF district. A concept proposal was presented to the EDA at the March 14th, 2018 meeting. Discussion ensued about the history of the TIF projects for the property including previous, current, and proposed districts and uses. Thares explained that the amount of increment generated by the current TIF district would very likely not be sufficient for the proposal, which includes four stories with underground parking. Angela Schumann explained how the proposed apartment complex conformed to the Small Area Study. She stated that a joint meeting between the City Council and Planning Commission occurred on March 6a', 2018 to discuss the Concept Stage Planned Unit Development proposed by Briggs. Comments were received by the boards and provided to the applicant. The proposal was amended by Briggs to consist of 44 units with 80 parking spaces. Discussion continued about the EDA's reaction to the revised concept. Tammy Omdal, Northland Securities presented various possible financial scenarios related to the Redevelopment TIF District and a potential new Affordable Housing TIF District. Differences in increment yield were explained. Jim Thares provided a schedule and stated if the EDA is comfortable with the schedule, that it could move forward with authorizing preparation of preliminary development agreement and asking the City Economic Development Authority Minutes — March 14, 2018 Page 1 1 2 Council to call for a Public Hearing to consider establishing Affordable Housing TIF District # 1-40. 1-A. TRACY HINZ MOVED TO AUTHORIZE THE EDA ATTORNEY TO PREPARE A PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE EDA AND BRIGGS PROPERTIES/BP-PINE 1, LLC, IN CONNECTION WITH THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. 1-B. BILL TAPPER MOVED TO ADOPT RESOLUTION #2018-06 RECOMMENDING THAT THE CITY COUNCIL CALL FOR A PUBLIC HEARING FOR THE CREATION OF AFFORDABLE HOUSING TIF DISTRICT #1-40. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. 4. Review of Block 36 Land Use Development Patterns and Small Area Study Intentions Jim Thares provided a map with Block 36 and discussed the owners and the uses of each parcel. Angela Schumann provided the goals of the Small Area Study and noted that Block 36 was meant to include convenience retail, entertainment, restaurants, and retail to get people in the downtown. 5. Adiourn OLLIE KOROPCHAK-WHITE MOVED TO ADJOURN THE MEETING AT 6:04 P.M. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander Approved: April 11, 2018 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes — March 14, 2018 Page 2 12 EDA Agenda: 04/11/18 4d. 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 March 2018. 2. Motion to approve payment of bills through March 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 CITY OF Transactions by Account � o• 6effo User: Debbie.Davidson Printed: 03/07/2018 - 2:58PM 111 111 Batch: 00202.03.2018 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-157010 PREFERRED TITLE INC Closing on Property @ 103 Pine Street 03/13/2018 118812 517,200.00 213-00000-157010 PREFERRED TITLE INC Fees - Closing on Property @ 103 Pin( 03/13/2018 118812 596.30 Vendor Subtotal for Dept: 00000 517,796.30 213-46301-431990 WSB & ASSOCIATES INC 2018 Economic Development Service: 03/13/2018 0 1,170.00 213-46301-431990 WSB & ASSOCIATES INC Relocation Assistance Related to Dow 03/13/2018 0 1,833.75 Vendor Subtotal for Dept:46301 3,003.75 213-46301-431990 HARRYLANTTO EDA Meeting Recording 2/14/18 03/13/2018 0 60.00 Vendor Subtotal for Dept:46301 60.00 Subtotal for Fund: 213 520,860.05 The preceding list of bills payable was reviewed and approved for payment. Report Total: 520,860.05 Date: 4/11/18 Approved by Jon Morphew - Treasurer AP-Transactions by Account (03/07/2018 - 2:58 PM) Page 1 American Land Tide Association ALTA Settlement Statement - 6orrowerjBuyer Adopted 05-01-2015 Preferred Title, Inc. ALTA Universal ID 113 West Broadway, PO Box 727 Monticello, MN 55362 File No./ Escrow Na_ 02017-18 Print Date & Time: March 6, 2018 at 03:16•PM Officer/ Escrow Officer: Kelly Erickson Settlement Location: 113 West Broadway Monftella, MN 55362 property Address: MQnticeho, MN 55362 Borrower: City of MwiJeeko Econornic and Development Authority Seller: Michael W, Frg6lie and Kathleen A. FrMlie Lender: Settlement [lake: March 15, 2018 Disbursement Date: March 15, 2018 Description Borrower{ Buyer Fiaarr[9al Debit Credit Sale Price of Property Assessments Cert to 2018 Tax Prorations hd'ustinents Cat," Taxes 0t/01/19 tD 03/15{1$ Loan Charges to Fther Loan Ciriarges ImPounds Title Charges A Escrow / 5ettlenimint Chanes Title - Owner's Title Insurance to Preferred Title, Inc. Coverage; $ 517,200.40 Premium: $ 1,344.00 Title - Closing Fee Title - Exam Fee Title - Name Search TMe - Recording Servile Fee to Preferred Title, Inc., to Preferred Title, Inc. to preferred Tide, Inc. W Preferred Title, Inc. $ 517r200.00 $ 1,344.00 $ 250.00 $ 150.00 $ 30.00 $ 30.00 $ 592,66 $ 2,372,80 Copyright 2015Amerlcan LanOTrtle Aswdation (02017.1$.PFp}¢261T 16!17} All nght5 reserved Printed on 03{Mj19 at 03:16 -PFT ALTA Settlement Statement BorrowerlBuver - Continued ❑obit Credit Commission Government Recording and Transfer Char Recording Fees to Wright County Recorder S 46,00 Conservation Fee LLP Wright County Tremrer $ S00 0 State Deed Tax to WRIGHT COUNTY TREASURER 51,706.76 Miscellaneous Subtotals gatance Due FROM TOTALS S 520,761.76 $ 524,751.75 5 2,965.46 $ 517,796.30 5 520,761,76 Acknowledgement 1VeJl +rave e4Fiaiuiay +-eviewed Irre ALTA Seltiement Statemenr arra find it rn be a me and accurate statement o€ all fweipts and disbursements mace on my 3ccounl OF 5y mQ in tt„i, transaction and #urtTMtx clertify that I have mceived a copy of the ALTA Battlement 5talemem. Well aumorrw #relerred TkW lne_ to causo tt•efr,nds m bedrsbrrsed tri aceanlance witb 1:11ligstalernant. City of Mcndcello Economic Development Auftrity Kelly Erickson, Escrow Officer Copyright 2015 American Land Title Association 17) Al I rights reserved Print donOW06p}b at 03; 6l, PM Julie Chemo From: )irn Tha res Sent: Tuesday, March 6, 2018 7:26 PIV To: Julie Cheney; Sarah Rathlisberger; Wayne Oberg Cc: Angela Schumann Su4ject; Deoirnentation for Check to process for t )A acquisition of 103 gine Street Attachments, Closing Notice. docx proposed Settlement Statement 3-6-2018,pdf fully ExerUtea PA.vdf. v2 -Cash Position after land Purchases 3-6-208.xtsx Julie, Sarah and Wayne, please see the settlementstatemexrt and the bar -cup documerft, the fully executed purchase agreement for Chas property. The correct amount of funds needed to bring to the closing is $517,75130, please process and debit the appropriate account for this purchase {same as prevlous transactions}. Let me know if you have any questions_ Preferred Title, Inc. The Preferred Way to Close CLOSING NOTIFICATION Dear City of Monticello Economic and Development Authority, RE: File No. O2017-18 - Purchase of- Monticello, MN 55362 Congratulations on the purchase of your new propertyl We would like to share with you a few items that will be important for you to know regarding your upcoming closing. Closing Date and Time: 03{15{18 @ 11;00 AM tocation of Closing: Preferred Title, lnc 113 West Brcadway Monticello, MN 55362 You will be required to bring along 2 forms of ID, one of which needs to be a picture I D - We will need your social security number and/or Federal Tax ID No. Cashiers or Certified Funds made payable to Preferred Title, Inc. for the balance of the down payment and closing costs. We look forward to working with you and making your experience with Preferred Title, Inc, a great onel Please feel free to contact us if you have any questions. Respectfully, Preferred Title, Inc. �j City of Monticello Attn: Wayne Oberg, Finance Director 505 Walnut Street, Suite 1 MontiCeJlo, Mdr1 55362-86.31 2018 Econor„ ic Development Services City Staff Reviewer - Jim Thares CSL ACCE # 213.46341.431990 Phase 001 MOM* Retainer Fee Total Fee Percent Complete SDeciai Projects Maass, Eric Billings to Date Fee f,abor Totals Gornrnents, Totals Total Labor 70* 'Ell a Aver%L a aoudh. 5,11e 3iJn M nneapc us (Oti i t afYJC February 22, 2018 PFoisv No; R-01 1 121-400 lr)VdCe No' 1 2018 Econornie Development Services 8,400.40 8.3333 Total Earned Previous Fee Billing Current Fee Billing Total Fee 000 740.00 700.00 Tatar this Task $701}.00 4- Approved by; } B,, 9 a legacy yAx "acy Equal OPPOrlunly Emaic"r I wgbgr,p ccm Hours Rate Amount 5.00 94.00 474-00 5.100 470.00 470,00 Total this Task $474-00 Total this Phase $1,170.00 Total this Invoice $1,170-100 Current Prior Total r {+� 700.00 470.44 0.fl0 0.00 700.00 470.04 1,170.00 4,00 1,170.00 Approved by; } B,, 9 a legacy yAx "acy Equal OPPOrlunly Emaic"r I wgbgr,p ccm Project R-011121.000 MONT - 2018 Economic Development Service Invoibe 1 Reviewed by- Bret We! SE Project Manager: James Gromberg PELp 2 A WB City of MdrGlicella Attn: Wayne Qberg, Finance director 505 Walnut Street, 5uile 1 MonCiceily, FAN 55362-0831 ]t Xenia Awer%ue S41.l1' ic.XQI Minneapes,s WN 55416 1 r 511 4 -C-0 February 22, 2018 Project Na; R-010965-000 Invoice No, 2 Relocation Assistance Related to Downtown Redevelopment GL Acct 9 213-46301,431990 City Staff Reviewer • Jim Thares Professional Serviegsirarn Janu -1, 2010 to January 31, 2018 Fee Total Fee 30.766-00 Percent Complete 6,3764 Total Earned 2,577.25 Previous Fee Billing 743,50 Current Fee Billing 1,833.75 Total Fee 1.033.755 , Total this Invoice _ 51,833-T5" Billings to Date J I Current Prior Total Fee 1,833.75 743.50 2,577.25 Totals 1,833.75 743.50 2,5577.25 Comments; Approved by; Reviewed by- Bret Weiss Project Manager: Penny Ralf Building a wgacy - your lega4 V Ewa Opow -inly Employer J .iberg -rm CHECK REQUEST CHECK AMOUNT: * j 9-7- aD REQUEST DATE: A " a-1" / Check to: Meeting Worked: Planning Commission EDA Meeting City Council City Council Total Due 4 Planning Commission: EDA 9 13 Harry T. Lantto 907 — 2" Ave S Buffalo, MN 55313 Date Time Date " i`1 I Time • 5 Date 2 M I Time 3 Date Time Le O City Council !b I. 4-1110 . 43 1 q -t D 42-. c Authorized by: Date r ;�-7 " 1 Vendor # Amount Due Amount Due i! D Amount Due ipD AmountDue 7" TIME SHEETS ATTACHED MONTICELLO COMMUNITY CENTER TIME SHEET Employee Name HARRY LANTTO Position PUBLIC MEETING RECORDER - CONTRACT DATE TIME IN TIME OUT Hours Worked Meeting yw, ig u l Meeting Payment $60 for first 3 hours Agreement: $10 per hour for every hour after MEETING RECORDER: Harry T. SIGNATURE: DATE: Z r. AUTHORIZED BY: DATE: Accounts Payable Transactions by Account User: Julie.Cheney Printed: 03/21/2018 - 3:45PM Batch: 00203.03.2018 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-430400 KENNEDY AND GRAVEN CHAR] 224 East 4th St thru 2/28/18 03/27/2018 118855 213-46301-430400 KENNEDY AND GRAVEN CHAR] 103 Pine St thm 2/28/18 03/27/2018 118855 213-46301-430400 KENNEDY AND GRAVEN CHAR] 255 East Broadway St thm 2/28/18 03/27/2018 118855 213-46301-430400 KENNEDY AND GRAVEN CHAR] 112 W River Street thru 2/28/18 03/27/2018 118855 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA Matters thru 2/28/18 03/27/2018 118855 213-46301-430400 KENNEDY AND GRAVEN CHAR] Landmark Square thru 2/28/18 03/27/2018 118855 Vendor Subtotal for Dept:46301 213-46301-431990 CENTRAL MN HOUSING PARTNI Feasibility Assessment Agreement 03/27/2018 118841 Vendor Subtotal for Dept:46301 213-46301-443990 DEMVI LLC April Parking Lot Easement MaintAgi 03/27/2018 118844 Vendor Subtotal for Dept:46301 The preceding list of bills payable was reviewed and approved for payment. Date: 4/11/18 Approved by Jon Morphew - Treasurer Subtotal for Fund: 213 Report Total: 406.00 1,894.00 849.75 1,494.75 266.00 361.00 5,271.50 1,000.00 1,000.00 121.60 121.60 6,393.10 6,393.10 AP -Transactions by Account (03/21/2018 - 3:45 PM) Page 1 Rage: 2 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 65402 MOnticello BDA February 28, 2018 MN325-00036 224 East 4th Street Through February 28. 2018 For All Legal Services As Follows: Hours Amount 2121}201$ CBR Save document to system; email to lisle 0.25 31.75 212312018 CBR Reuieuu pro -forms; aMai I to title'. entail to cliant 0.25 31.75 212512018 CBR Review closing statement. ernaiIs to closer 025 31 75 D26f2018 MNI Menkello pre-closing matters 0.80 152.00 2/2712018 CBR Review pro -Forma and final closing stafernent, email to 1.00 127.D0 client; drafi claisng instruction letter 21 $ 018 CBR Review a -mall and documents from closer. save to file 4.25 31 45 Total Services: S 406.06 Total Services and Disbursements: S 406.00 Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn 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. MoritiwHo EDA February 28, 2018 MN325-00035 103 Pine St. Through February 28r 2018 For All Legal Services As Follows Page: t Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 21$12018 CBR Interoffice conference with M Ingram 21612018 MNI Draft PA for Froslie property 21MOIS MNI Draft Froslie PA 21712018 CBR EMai Is regarding contract; ❑rder fide cornMitment 21712018 MNI Finalize and send PA for J`rosIie property 2f712016 MN1 DT3ft [annblg comm +and EDA reso4ikions approving ourdhase of 103 Pine 2J912018 MIDI PhoRe miff a Ma it discuSSlprr WItPr EDA staff regafding proposea changes !a PA, revise aria firnaarze 212312D18 MR Ema+llsvuithetlent and title regarding dosing, same Purctrase Agreement to system 2120!2018 MINI Review finalized PA 212612018 CBR Review title commitment 212612018 MNI Review title commitment; office conference with C Rocklitz regarding title objection letter Total Services- HOUrS 0.25 2.50 2.30 0.26 1.20 0.80 190 0.25 0.20 0.25 0.40 S Amount 31.76 475.00 437.00 31.7"5 22600 152.00 361 00 31.75 38.00 31 75 76.00 1,894.DD Total Services and Disbursements; $ 1,894.00 Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Page; 3 Kennedy & Graven, Chartered 244 South Sixth Street. SURe 470 Minneapolis, MN 55402 Monticello Ef]A February 28. 2018 MN325-00037 255 East Broadway St, Through February 28, 2018 Fcr Ail Legal Services As Follows: Hours Amount 2112J2018 CBR RevFew cloisng statements: emaft with closer, request 1.25 158.75 proforma: draft inmruetierj letter 211312018 CBR Review and revise Preform; interoffice conference. 0.50 63.50 emails with title company 2/131201$ MNI Monticello clospng matters for 255 East Broadway 2.80 437.00 211412018 CBR ErnaiI5 regarding closing; review revised proforma and 1.50 190.54 settlement statements Total Services= $ 849.75 Tota! Services and Disbursements' $ 849.75 Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn 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. P,ge: 4 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 Monticello EDA February 28, 2018 MN325-00038 112 W. River Street Through February 28, 2018 For All Legal Services As Fallows: Hours Amount 2113}2018 MNI VOriticeIIo new 1-0I for 112 West River Street - review and 0.60 114.00 revise 2114!2015 MNI Revise LOI for purchase of 112 West River Street; draft 200 380,00 resolution approving negotiation of PA; circulate 2/2012018 MNI Review final Ldl. comments on same to J Thari�s 0.30 57.00 212812018 MNI Draft PA 1 80 342.00 2/28/2018 CBR Order title commitment 0.25 31.75 2 2812016 MNI 112 River PA 2.40 456.00 212&20118 MNI Planning comm resp 112 River Street acquisition 0.60 114.00 Total Services: 1,494.75 ;'I Total Services and Disbursements: 1,494.75 Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn 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. Page- 1 Kennedy & Graven, Chartered 200 South Sixth Street. Suite 474 Minneapolis, MN 55402 City of Montice !c February 28, 2018 MN190.00101 General EDA Matters Through February 28, 2018 For All Legal Services As Follows: Fours Amount 212 W2 018 MNI Monthly finance call with EDA staff, North ami 1.40 266.Dp Total Services: $ 266,00 Total Services and Disbursements: $ 266,00 s LE 'I Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn 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. Page Kennedy & Graven, Chartered 244 South Sixth Street. Suite 470 Minneapolis, MN 55402 City of Monticello February 28, 2018 MN190-00115 Landmark Square (Commercial Development) Through February 28. 2018 For AlI Legal Services As f=ollows: Hours 212812018 11 NI Masters f=ifth assignment - phone convematiorl with J 1 9a Thares and draft assignment of conlracl to $ngg5 Total Services Total Services and Disbursements: 5 DV Amount 361.00 361.04 36'1.00 Julie Cheney From: Jim Thares Sent: Tuesday, March 20, 2018 1:52 PM To: Julie Cheney Subject: RE: Kennedy & Graven Invoices (6) Julie, these invoices are all okay. See below for coding. From: Julie Cheney Sent: Friday, March 16, 2018 3:41 PM To: Jim Thares Subject: Kennedy & Graven Invoices (6) Jim Attached are the following invoices from Kennedy & Graven: MN190-00115 —Landmark Square - $361.00 213-46301-430400 MN190-00101 —General EDA Matters - $266.00 213-46301-430400 M N325-00038 —112 W River St - $1,494.75 213-46301-430400 M N325-00037 — 255 East Broadway St - $849.75 213-46301-430400 M N325-00036 — 224 East 4th Street - $406.00 213-46301-430400 MN325-00035 —103 Pine St- $1,894.00 213-46301-430400 Okay to pay? Please provide coding for each. Thanks! JuCte Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.monticel lo.mn.us AP@ci.monticello.mn.us city of '- �c1Xwn 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. Jim Thares From: Jason Krebsbach <jason4cmhp.net> Sent: Tuesday, March 20, 2018 11,26 AM To: Jim Thares Cr. Ed Zimny (ed@cmhp.net) Subject: Re: Map of Valuations Attachments: r -MHP -CITY feasiblity assessment agreement -draft 3_20_18.docx Hello Jim - I've attacht~d a dira€t F asibility Assessment Agreement for VoiAr review, This woUtd table the piElce of the Grant Applicaboo Agreement that we 0xectJte with cities when writing ars SCDP giant appNcatian. Piease lat me know if you have any qu8stl0l's Or cornrrlPM . OnCe we �ava an weculed agreement arta are in receipt of our $1.000 fee we would bQ ready to conduct tt-iry windsihield survey and start the Proce55 As of rig hi now, the weeks of 112 2rtd or April 9th work best For Ed and i Thank you, ,Jason Krebsbacti _ — -- Central Minnes❑la Housing Partnership, arts. Community Devetopmeut Director 37 28th Ave_ Norlh Suite 4142 - St. Gaud, MN 5a 303 CMHP main office: (320) 259-0393 Direct phone; (320) 258-0872 Emajf: Jason*crnhP.ne! Web: www.cmhp.net _,4�I -)qVC When yuu #Startl ithaSmile, Arnazon donates 0.5% of the purchase price b Central Minnesota Hausing Partnership ine. Bookmark this link AmazonSm[le and support us every time you shop, Ort Mon, Mar 19, 2018 at 4:51 PM, Jiro Thares <Jim.Thares(m—ci,monticello inn us> wrote: Jason and Ed, here is one map that may yet he tweaked again_ It is a starting paint for potential properties that are possibly in need of rehab work_ Z inay have a couple more snaps to send to you later this week as well. When do you think you will want to (x)nduct a windshield survey? Let me know, ''hanks, CONTRACT FOR SERVICES FOR FEASIBILITY ASSESSMENT SERVICES FOR POTENTIAL COMMERCIAL REHABILITATION PROGRAM THIS CONTRACT for Feasibility Assessinent Services is entered into on by and between the City of Monticello Economic Devela mens Authority, a public body corporate and politic under the laws of the State of Minnesota, hereinafter referred to as "EDA", and Central Minnesota Housing Partnership, Inc., a non-profit corporation under the laws of the State of Minnesota. hereinatler referred to as "CMHP". WHEREAS, The EDA has meet with CMHP to discuss the need for commercial rehabilitation in areas of their residential and commercial district(s); WHEREAS, The EDA has requested that CMHP provide feasibility assessment servicers for the proposed residential and commercial rehabilitation program. WITNESSED. In consideration of the mutual covenants and agrcemcnts containing herein, the EDA and CMHP a ves as ioliows: A. CMHP Feasibility Assessment R"ponsibilities: I . CMHP wil l work with EDA to define the proposed activities of the program; to create initial program parameters pertaining to proposed rchabiIitatien activities, target area(s) and funding, 2. CMH P wiI l conduct windshield surveys and review valuation data of properties in proposed target arca(s) to determine the Condition of properties, calculate esti matcd per project rehabiIitatian costs and eva]uate redevelopment opportunities, 3. CMHP will work with the EDA anchor other local groups to detennine program financing structure{terms, applicant eligibility and other program requirements, 4. CMliP w[II Wann research to collect demographic data of proposed target areas). 5. C M HP will assist in determining initial program hudget based on average rehabilitating costs, leverage funds resources and number of proposed projects. 6_ CMHP will conduct community ineetings and provide additional outreach to generate a program interest list. D_ EVA Feasibility Assessment Responsibilities, 1, The EDA will submit to CMHP a payment of S 1.000.00 to covor costs associated with feasibility assessrnent activities_ Payment shall be received before initial windshield survey is conducted. 2. The EDA will provide to CMHP all relevant available data and/or inforinatinn to assist in the feasibility assessment process, and Participate in other activities such as windshield surveys) and community meeting.5. C. Cancellation This contract may be canceled by the EDA or CMHP at any time, with or without cause, upon thirty (30) days written notice to other party. D. Feasihi14 Assessment Completion Upon completion ofThe feasibility assessment for the proposed contrnercial rehabilitation progT m, the EDA and C M H P shall determine the program implantation steps and executed a Program Administrative Agreement. if applicable. CITY OF MONTICELLO ECONOMIC DUVELOPMENT AUTHORITY A thorized Official Signature e<�-<q4 tiJ e-��or Printed Name & Title &-Ld- Zef Date CENTRAL MINNESOTA ROUSING PARTN IERSHIP, INC., C~MHP Authorized Official Signature Deanna Hemmesch Executive Director Printed (Paine & Title Date 2 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 14th, 2018 — 6:00 p.m. Mississippi Roam, Monticello Community Center C Drnmissiuners Prtscnt: Bill 'Tapper, Steve Johnson, Tracy Hintz, Jon 'uloillbew, 011ie K-oropchak-White, and Jim Davidson Commissioners Absent. Lloyd Hilgart Staff Present; Angels Schumann, Jim Thares, and Wayne Ohcrg 1_ Call to Order Hill Tapper called the regular tneelirtg of the IrDA to order at 6 PM. ?. Rall Call 6:00 ii.m. 3. Annual Business Meetin a. Consideraiation to elect LDA Officers TRACY HINZ MOVED TO ELECT 2018 OFFICERS. STEVE JOHNSON AS PRESIDENT, BILL TAPPER AS VICE PRESIDENT, AND JON MORPHED AS TREASURER. JIM DAVIDSON SEC0I4DED TILE MOTION- MOTION CARR IED, 6-0- b. Con sidc tion to review EDA Bylaws and Enabling Resolution 71ere was questions about Article IV Executive Director, ofthe Bylaws, Jim -Iliares netted that the changc was accepted a the previous yeal''s meeting. 11 would work wish the City Clerk to ensure the final version would he cA)II-ect. c. CUnsidentlion of EDA fund balance inforntatlon Wayne Oherg provided an overview of the EDA Fund balance, Bill Tupper commented on the amount of expenditures for consulting services It ways noted that the Ieasl restrictive amowtt of money tha EDA could spend is $2,051,D00. 4. Consideration of Addidolial a e da iterm Bill Tapper asked Io add 7.5 and 7.6 c the agmdar were added by staff. 31M DAVIDSON M OVER TO ACCEPT THE ADDITION OF ITEM 7.5 ANI] 7-6. OLLIE ICC?ROPCHAIC-WHITE SECONDED THE MOTION. iv10TiON CARRIED, 6- 0. 5. Consent Aaendn BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0, a. Can 5idera#ion ofavilirovinip Reg ular Meeting Minutes — Jan etary 10'h,24188 Recommendaiiun. Approve regular meeting minutes — January 10'h, 2418. h. Consideration of apprGvin Serial Workshop M Wing Minutes — jam aa ry 10".2018 Recornrnendation: Appt'[rve special workshop meeting minutes — January 10'", 2018. C. Consideration of appraving PaYment of bills Recommendation: Approve payment of bills through January, 2018. d. Consideration of 2018 Farm Lease with Tom andfor Matt Spike at S1 100 far 13,6 acres Recominendation: Authorize the EDA Executive Director and President to execute the Fami pease agreement for Outlot F, Otter Creek Crossing as drafted. Regular Agenda 6. Consideration of Eur+cbase Atereement for 103 Puke Street Jim Tbates explained that the address covers three parcels {approximate] y totally 22,687 square feet) and is a core; block locaied in the Small Area Study. Thates stated the market value of the property per Wright County is $430,800. The seller has the property listed with KW Commercial Midwest for 5685,000 and the EDA put forward an offer S517,200 global offer to also include relocation costs for residential and commercial tenants in addition_ The site is intcxkde;d for mixed use development. There is no development proposed at this point. The property would be held for future devetopment proposals. Thares mentioned in March the Planning Commission would consider wnsistencyof the purchase with the Monticello Comprehensive Plan. BiII 'Tapper asked about the closing. Thares slated rbe closing would be proposed for March 15"' with a simultaneous closing of the home the seller is purchasing, Thares also added Ihal the seller is not asking for earnest money. The sellera and the tenants would be a]lowed to occupy the space until June 301" Tracy Hinz asked if the EDA would be landlords after the signmed purchase agreement. Thares confirmed, but added that no rent would be collected. At closing, a property management agreement executed with the seller to take erre of the property as they have been. The escrow amount the Cily requested would be used to cover legal fees iften$ntc are not out of the building by June 3& or to pay for any unexpected costs (e.g. unpaid utility bilis). The seller will also grant the buyer access to tl7e property to conduct environmental tests prior to the closing date. There is a Int of personal property on the site and would need to be removed prior to June 30`h. Steve 10hns011 asked if relocation activities have been initiated witi� tenants in the building. 11hares stated that the consultant — W 5B — has asked for a list of tenants. A discussion regarding eligibiIity would be set up. BILI, TAPPER MOVED TO APPROVE RESOLUTION 3418-03 AUTHORIZINO THE IDURCHASE OF THE COMMERCIAL PROPERTY LOCATED AT 103 PINE STREET. JIM DAVIDSON SECONDED THE MOTION. Tracy Hinz asked what would happen i f a developer was interested in developing the land prior to June 30"'. Angela Schumann responded that even if developer expressed interest immediately that they woulld need tt,� complete environment a] review and apply for land use applications. MOTfON CARRIED. 5-0-1 WITH STEVE JOHNSON ABSTAINING. 7, Consid ratio of M Redevelo me t and Rehab Fees] Arial sis PrQ osal Jing Th ares reminded the EDA of a spacial meeting with C M H p that was lied in January. Thaivs stated the CMHP outlina l a possible scope of work (atta& d I tbt, staff repori). Ci 1Y staff would wnrk with CMHP to provide data and conduct surreys. The total cost of the Services would be S 1.000. Steve Johnson asked what the specific goal of he service. Thanes stated it was 10 1 00 at the cote grid 0 f Mont i cel lo. The goal would be to address huiIdirib, code issues 4nd improve the duality of the homes. This servicc would be a rehabilitation provarn only and would not include affordabie housing. BIL4 TAPPER MOVED TO AUTHORIZE ENTERING INTO A FEASIB] UTY ANALYSIS SERVICES CONTRACT WITH CMHP TO CONDUCT AN ANALYSIS OF THE MERITS OF ESTABLISFIING A HOUSING AND COMMERCIAL REDEVELOPMENT -REHABILITATION PROGRAM 1N TARGEMED AREAS OF THE CITY. JON MORPHEW SECONDED THE MOT]ON Steve Johnson asked if staff could also research CMIIF`s services for alLnrdable housing!, while entering the proposed contract, Angela Schumann stated dvep in the scope that C'MH13 provide evaluation of red evelow tent porential aver rehabilitation. In building a relationship with CM it will help the EDA to understand their strength as a partner for a redevelopment project. Motion carried, 6-0, 7.5 Consideration n Axtboriz ing Letter of Intent 1.01 to ase hire 112 West River Street Jim 'I'll ares a xplairted that the latest draft of the Letter of Intent was provided in the staff' report. 11e explained that the parcel is located in the redevelopment area of Block 52. It is a sinafl lot, with access to River Street. Thares said that the seller authorized an appraisal of their property, which the EDA completed and paid for. The seller acquired the property in 2006 for $250,000, The current offer by the EDA is $370,€!00 with a global settlement with all relocation expenses included. The goal of the property is to red eve] op the area with entertainment, restaurant, or mixed uses. Tracy Hier stated that the seller has a year to vacate the property, Thares confirmed that they would have until March 3l ", 2019. The closing would occur on April I", 2018. Hinz a]so asked what would happen if a developer was ready to develup the site prior to the end of March, 2019. Thares stated the Purchase agreement states the seller's need to vacate by March 31' . 2019, but that environmental review and land use application process would need to occur prior. Angela Schumann stated that if properties would be combined, they parcels would need to Platted. Schumann also added that if the EDA felt strongly they could request a notification, timeline. Hinz recommended adding language that if a developer was ready to develop,, thal the timeline for the sella In vacate would be sooner. TRACY HINZ MOVED TO APPROVE RESOLUTION 2018-04 AUTHORIZING FNTERING INTO THE LOI FOR THE PURCHASE OF COMMERCIAL PROPERTY LOCATED AT 112 WEST RIVER STREET, JIM DAVIDSON SECONDED THE MOT[ON. MOT[ON CARRIED, 5-0-1 WITH STEVEJOHNSON ABSTAINING. 7.6 Consideration of Autharlizing.Quotes for Phase I Environmental Studies at 103 Pine Street and 1]2 West River Street Jim Thares stated that it was important for the I;DA to un&rsland environatentai issues. There is nioney in the EISA general fund budget in the redevelopment activities line item. Bill Tapper moved to $uthorize solicitation of quotes and further authorize staff to enter into a contract for service with the entity that Provides the lowest, most vwnomiCal quote for service in wrnp]eting a Phase I for pruperty located at 143 Pine Street and 112 West River 5trw. 011ie KoA)pchak-Whig seconded the motion. Jon Morphew asked how many quotes would he anticipated. Th ares responded three quotes. Steve Johnson stated that the EDA would give authorization to staff to compl�-te the review if the cost was between 52,60044,200. The final quote would not need to be approved by the EDA at an upcoming meeting. 4 _ Director's Re port Ain 1114�res provided the Economic Development Director's Report_ AngeIa Schumann statod that the EDA would be sent via email the final veisi()a Of1he sign with land far sale in Oiler Creek Business Park. Thares also explained that staffinet With downtown business and property owners. A lot of fccd back wow, received regarding pant or roan Fund progams to reoiavate their buildings. Another rnaeting would be held an February 260'. Thares reviewed the proSPW 1W with the PDA- diourn Fit I _i. 'TAPPER MOVED TO ADJOURN THE MEETfNG AT 7.07 P.M, OLLIE WROPCHAK-WHITE SECONDED THE MOTION, MOTION CARRIED_ G -U. Recorder- Jacob Thun ander Approved: March 14", 2018 f,f Attest. Jird T rLs, Economic Dcvelopment Director t1l Julie Gene From: Jim Thares Sent: Tuesday, March 20, 2018 4:52 PM To: Julie Cheney Subject: Payment Request from CMHIP far Feasibility Services Work Attachments: Payment documentation Requuest Packet.pdf Julie, see attached coding and documentatiDn for $1,000 payment to CMHP. Per the email from Jason Krebsbach, CMH P, they wiil need the check prior to starting any work on the Rehabilitation Program feasibility assessment. Let me know if you have any questions, Julie Chene From- 0uIIseye Property Management < rn a ii @)mana ge b u 1 Idi ng.co rn > Sent: Monday, March 12, 2018 106 AN} To., AP Subject- Lease statement #o( Broadway Parking Easement - COMMERCIAL • 2 a; of 3I' 2f2-1)18 � BUIISeye PF0perty MarlageMerrt Lease statement as of 3/12/2018 City of Monticello Economic Development Authority 35 Lace St Suite 500 Big Lake, MN 55309 Date Memo Prior balance 0.00 12129/2017 Payment 1/1/2018 Common Afea Maintenance 21112018 Common Area Maintenance 211612019 Payment 31112018 Common Area Maintenance 31112018 Payment 41112018 Common Area Maintenance Account #: 00405914 Amount Balance 0.00 ($97.09) ($97,99) 5121.50 $23.61 $121.60 $145.21 (5145.21) $0.00 $121.60 $121.60 ($121.60) $0.00 $121.60 5121 60 Balance due: $121.60 i C4trj6k Lqk'(:S1 C7 Pavment is due by the 28th of the month. Manage ,your account online: littp:flbullseveproperties.m2nagebuilding.com Bk lseye Property Management 763-295-6566 admin a bullseve41 l ,com 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 03/16/2018 - 8:48AM Batch: 00201.03.2018 Account Number Vendor Description Monti"cello GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-003 - 349 Broadway W EDA 03/15/2018 0 14.38 Vendor Subtotal for Dept:46301 14.38 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - January Lunch (JT) 03/15/2018 0 15.00 Vendor Subtotal for Dept:46301 15.00 The preceding list of bills payable was reviewed and approved for payment. Date: 4/11/18 Approved by Jon Morphew - Treasurer Subtotal for Fund: 213 29.38 Report Total: 29.38 AP -Transactions by Account (03/16/2018 - 8:48 AM) Page 1 Debbie Davidson From: noreply@merchanttransact.com Sent: Wednesday, February 7, 2018 9:30 AM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 2118WEBINSERTS6.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 1/1/2018 to 1/31/2018 (31 days) 2/6/2018 3/1/2018 Previous Reading Current Reading Date Reading Date Reading 1/1/2018 188496 2/1/2018 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: 3/1/2018 * 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 $6.95 ($1.00) ($0.50) $8.75 $0.18 $14.38 $13.66 $13.66 $0.00 $14.38 $14.38 ate of Transaction — ra n5action CITY OF MONTICELLO Ghost Card Transaction Please attach the invoice f receipt and any other available doctirnentalion to this form. To he completed by purchaser: Amount Ll 5 `(Z) Cirde purchaser name; Debbie Davidson Expense Code a A3 . 4ca�oi Is OZ) QV) Merchant: Monticello Chamber of Commerce industry 20.5 Pine Street PO Bax 192 I Mani aello, MN 55362 7632962700 us Older InfarrnH!ian Dmcdplion: MOn#Joello Chamber lunches fay Jim, Ann, Rachel Order Number. P_O_ Number: Customer ID: invoice Ntunber 17489, 11499, 17507 B1NInN Information ShWing Information _ JOe Cheney City of Mon1IG0110 I �4� Payment InfOfm8tior. batemme; Trensoctron la- Trensactlon Type: Trans=icn Slaius,. Authodzatk)n Code: Payment Nlathod- 12-Feb,2016 08:4x;16 P Sr 60937848288 Authorization wf Auto Capture t,aPltrre,QV%rkding Settlemem 058489 Ursa XXXXViSS Shipping, a,DU Tax: 0.00 Toted. USO 45A Monticello Chamber of Commerce PO Box 192 205 Fine Street Monticello MN 55362 Bill TO Rachel l.audenbach FiberNet 150 Second St SW Perham, MN 56573 --Description- 20 escfiption2018 Chamber L U& - January 161h at we (Raclxl Leonard) ,:H�eaLEE-1 Ii'l4vr Date invoice # 1!23!2018 11507a Due Date 2/712018 15.00 Trw+k yew For y .e e—ibm—t to the ma..patfro Cj- ber d CawvnerCL a +wdeu61y. 71.e M—tf944 C✓. -bar rrpruer.;; " �t-LLtt6 of WgNd a r,d ;-YAF ro strl..60,M. 8aciine:eFes a.d tGawiGte ragiond P-Fpfn(y hianiiee♦ao Cha.. w is ",.A & wV. as U.r •irant daor- N fwr fine 7f.0 CPW-b.r is a M. -Ca fdt iwv'nessee, residents and W -i t -1 AI kf. F idkg ixfanr. t— dnd —igFt about tlti a.Y9, f++[t4rayiny aaanawue ati! aawunanehj �awhF ... R��f+Pn {p d+.t+w1io}[KArfy welcomi..y re+lars !a tkl area. Total $ 15.40 763-295-2700 marcy@rnonticcIlocci.com http://www.monticellocci.com Julie Chene From. Rachel Leonard Sent: Thursday, January 25, 20TS 10:52 AM To: Julie Cheney Subject: Re; Monti Chamber Inv# 11507a $15.00 Yes, this is okay to pay_ Thank you, Rachel Leonard Communications Coordinator City of Monticello 763-271-3275 ww .ci-monticello,mmus Email correspondence to acrd from the Qty of Monticello government offices is subject to the M+nnesata Government Data Proctices Act acrd may .be disclosed to third parties. From: Julie Cheney - - Sent: Thursday, January 25, 2018 10:4$ AM To: Rachel Leonard Subject: Monti Chamber invit 11507a $15.00 Rachel Attached is the current invoice from the Monticello Chamber for your January lunch. okay to pay Please provide coding_ Thanks, _ U(Io (Ii 0?C, Finance Assistant City of Monticello 763-271-3205 ,Tul i e. Ch eoey @ci.monticeIlo.mn.us APGci.rnantpcello, mn.us C11Y 01 Monticello Email correspondence to and from the Oty of Monticello government offices is subject to the MV n resota 60verrFment Data Practices Act and may be disclosed to third parties, Montieel to Charnber c Commerce PQ Box 192 245 Pine Street Monticello MN 55362 Bill To Accounts Payable Monticello City of 545 Walnut Street Suite 91 Monticella, NII*! 55362 Description 2018 Chamber Lunch _January 16th as MCC (Jim Thar") -- — Thank yrw for yaw r —Utlnt..t to" Mone€€Na C-kbmi mol ca k,4.tt & In"Uy. rr,e kmrieeno c1wrn6dr -P"F—CF CFO ir'td dM aF k-ckwax a..d 10— tv 91"Vtk— b-1-4145 nra IN—Fnt€ +"fp—f p—,pperity M11an[i�eNo CYwrn6er a proud eo- sew€ ii YIw "frond dour tO axe fin, r,ro. ,,jLy. r— d.,ra6er a a re 'ro For bairRdsiei, rrsidrn a..d rm— ariY . prowwry infun Ifd and insight Abs f rka mmk eneor "" atvn—L and rarnx5unity gruwdA i.. dddidion Eo eniArdi4LaigdN wrJror.Si..y rrptvm , tMr •"a lftvazeliev Date Invoice 4 1123/2418 11499a Due date 2/712418 Amount 15,00 Total $15M 763-295-2700 marcya monti�elloccixom http-1/ v� w,rnoliticellocei.com Julie Chene From: Jim Thares Sent: Friday, January 26, 2018 1011 AM To: Julie Cheney Subject: RE= Monti Chamber Inv# 11499a 515.00 Hi Julie, this is a 2D18 expense item. It is fine. Please code to: 213-46301-443990. From: Julie Cheney Sent: Thursday, January 25, 2018 1050 AM To: Jim Thares Subject: Monti Chamber Inv# 11499a $15,40 Jim Attached is the current invoice from the Monticello Chamber for you January lunch. Okay to pay $15.007 Please provide coding. Thanks, . utie Cheney Finance Assistant City of Monticello 753-271-3205 ,Ju i i e.Ch eney@ c i.moflt i ce I I a.mn , u s APci.ntont ice.11c_mn.u5 Mont ic-xe-'110 Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government pato Practices Act and may be disclosed to third parties. Mont iceiIo Chamber of Com rnerce PO Box 192 205 Pine Street Monticello MN 55362 Bill Tip Accounts Payable Monticello Community Center 505 Walnut Street Suite 4 !Monticello. MN 55362 Deseriplion 2018 Chamhcr t:aincli - January 161h al MCC (Ann Mbsack) Tkawk you for your eCn1.Wp.+ervf to O i M—tN.,Jfa zrka..,$ r t? Cannrn _ % rnd"trf THe MLwmfc,Vo Ch&—LOr .Yp-Wg1 Jx tile int rats 4f 6rsr;.ele er.( serves to ctrrngrh - 6. mdlxs and F6—r Oge .1"a f pray {drib. IAIvvi4& Date Invoice 1123'2018 11489a Due Date 2171201$ Amount 2 5.01) rxe..tieeffa Ckornfaer is proved to W -O As " I'mt drar to ai.r {,..e sow.. un iy TU Jwn.fwr e ■ Rsaurce for fblfi. fim, rbawfmt and rrsito afike. f v,,WhW Wm—.V— &.d i. ;.Jj.t mbout bk. aret enfq q:. g KanoN,ir a.�d eOr..M4nily growhk in addrfio.. to -A-ai 1Fg CH tFe Total WIN 763-295-2700 niarcy@monticellacci.corn http://www.monticellocci.com Julie Chane From: Ann Mosack Sent- Tuesday. January 2, 2019 1237 PM To: Julie Cheney Subject: FW: Confirmation: 2018 Chamber Lunch - January 16th at MCC Categories: Red Category FYI- Chamber lunch bill - 226,45122-433100. 1 believe they invoice us correct? Thanks! Ann From: infc@monticellocci.com [mailto:info i9rllonticellocci.cornj Sent: Tuesday, January 02, 2018 12-31 PM To: Ann Mosack <Ann.Mosack@ci,monticello.rnn.us> Subject: Confirmation: 2018 Chamber Lunch - January 19th at MCC Registration Confirmation Your registration for 2418 Chamber Lunch - January 16th at MCC has been received. Confirmation Number: e.12d3 5892.49966 Primary Contact: Ann Mosack (Uant+cehb Qommunity Cenjer) Add to Calendar Edit Registration Summary Item Descripftri Lunch. Member Ann Mosacx 2018 Clamber Lunch - January 16th at MCC Quantity Total Amt 1 $15.1 Total: $15,1 TOPIC; Monticello Chamber Sponsorship and Member Opportunities 2418 On Tuesday. January ,6th join us for Chamber Lunch at Monticello Community Center from 11:30-1 pm. CATERED BY: A Catered Event MENU: BUSINESS LUNCH SPONSOR; Monticello Travel -Dean Smith Treasure Chest Drawing What sets our Chamber apart from ofhers? Our members became FRIE;VDS± Meet new rr tubers of Me business cvmmunily and ofd Mendrs face to face whlfe you e4oy a deficious lunch_ W,- have a dffi mni speaker and top+c that pertains to business each month. Bre your staff or (fiends. chamber LunCh rs open to all anyone. I Ontm: Jarkuary 16, 2018 Timm: 1 1.30 AM - 01:00 PM CST 1Nebsite: Montre tl0 Chamber Location; Monticalic Commungy Center 505 Walnut St. Monticello, MN. Contact, MMUC0110 Chamber (7$3)295-2700 Small: i-ifmon r ellocci.corn DatelTirne details: Tuesday. January 16th t 1;30 am "istraticn & @uffel Dinner 12:00 Plpgram 8e9ins FeeslAdmissloa, $13 .00 per person Thank you forsupporlirgour Chamberevent. Margand Marie Click H, -re #or More Inf am lion 6A 10lendar Thank youl Monticello Chamber of Commerce and Industry Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 04/02/2018 - 10:55AM Batch: 00215.03.2018 Account Number Vendor Description Monti"cello GL Date Check No Amount PO No 213-46522-438100 XCEL ENERGY ZCULPS-EXPENS-51-0623082-8 ED 03/31/2018 0 17.54 Vendor Subtotal for Dept:46522 17.54 The preceding list of bills payable was reviewed and approved for payment. Date: 4/11/18 Approved by Jon Morphew - Treasurer Subtotal for Fund: 213 17.54 Report Total: 17.54 AP -Transactions by Account (04/02/2018 - 10:55 AM) Page 1 7 xcelEnergy RESPONSIBLE BY NATUREm NORTHERN STATES POWER COMPANY Page f of 2 SERVICE ADDRESS ACCOUNT NUMBER ' 'IA I MONTICELLO EDA 51-0623082-8 03/05/2018 349 W BROADWAY ST 1-800-895-4949 Fax: MONTICELLO, MN 55362-9356 STATEMENT NUMBER STATEMENT DATE r ' ACCOUNT BALANCE 579225603 02/05/2018 $17.54 YOUR MONTHLY ELECTRICITY USAGE SUMMARY OF CURRENT CHARGES (detailed charges begin on page 2) Email us at: Customerservice@xcelenergy.com Please Call: Electricity Service 01/04/18 - 02/04/18 7 kWh $17.54 1-800-895-4949 Fax: Current Charges $17.54 11 12 13 --- ACCOUNT BALANCE 16 17 F M A M J J A S 0 N D J F Previous Balance As of 01/04 $17.31 DAILY AVERAGES Last Year Payment Received Auto Pay 02/02 -$17.31 CR Temperature 17° F Balance Forward $0.00 Electricity kWh 4.4 ' Current Charges $17.54 Electricity Cost $1.09 ' Amount Due $17.54 0 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 EAU CLAIRE WI 54702-0008 Xcel Energy® INFORMATION ABOUT YOUR BILL Different fuel sources are used to generate electricity, and they produce different air emissions. For updated environmental information forth e year ended 2016, go to: www.xcelenergy.com/Rates, under Rates, go to Learn More, then Rates: Brochures & Resources, and select Inside Your Electric Bill -Environmental Disclosure & Costs. If r you don't have internet access, please contact us at 1-800-895-4999 and we can }= provide you with this information. Thank you for your payment. RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS ACCOUNT NUMBER DUE DATE AMOUNT r I i ' ' 51-0623082-8 03/05/2018 $17.54 Automated Bank Payment o 31 51030518 06230828 0000000175400000001754 Your bill is paid through anautomated bank payment plan. 1 2 3 46 7 8 9 10 11 12 13 14 15 16 17 ------ manifest line --------- 18 19 20 21 22 23 24 I"I�III"'I'I'II'IIIIIIII --IIIIII' 25 26 27 28 29 30 31 MONTICELLO EDA 505 WALNUT ST STE 1 MONTICELLO MN 55362-8822 I..I�III"�'I'�'�I'lllllll�ll�l'IIS'lll�l��ll�lll'I�I'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 31 51030518 06230828 0000000175400000001754 Xcel Energy Ms CAN HELP DRIVE SAVINGS Variable frequency drives. (VFDO are used across industries to increase the efficiency of HVAC and motor -driven systems, including water well pumps. 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Page 2 of 2 SERVICE ADDRESS ACCOUNT NUMBER IT I MONTICELLO EDA 51-0623082-8 03/05/2018 349 W BROADWAY ST MONTICELLO, MN 55362-9356 STATEMENT NUMBER STATEMENT DATE 579225603 02/05/2018 $17.54 SERVICE ADDRESS: 349 W BROADWAY ST MONTICELLO, MN 55362-9356 NEXT READ DATE: 03/08/18 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303657358 INVOICE NUMBER: 0709468341 ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 7 kWh $0.079650 $0.56 Fuel Cost Charge 7 kWh $0.028571 $0.20 Decoupling Adj 7 kWh -$0.000291 $0.00 Affordability Chrg $1.19 Resource Adjustment $0.09 Subtotal $12.04 City Fees $5.50 Total $17.54 INFORMATION ABOUT YOUR BILL Effective January 15, 2018, the monthly Affordability Charge on your bill increased by $0.23 to fund an electric Low Income Energy Discount Program supplementto provide assistance to qualifying customers with certified medical circumstances. For an average non -demand customer, 69% of your bill refers to power plant costs, 14% to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand customer, 79% of your total bill refers to power plant costs, 13% to high voltage lines, and 8% to the cost of local wires connected to your business. POP QUIZ! Dimmer switches can help bulbs last up to times longer if dimmed tr) half the brightness. Fill in the blank, and learn haw installing dimmer switches could help take your hgme or business W the bank. A: 5 B: 10 iv; 20 D: 50 EDA: 3/28/18 4e Consideration of Adopting Resolution #2018-07 Approving Preliminary Developmenmt Agreement with BP -Pines 1, LLC for Development of Multi -Family Housing (JT) A. REFERENCE AND BACKGROUND: This item is for EDA consideration of a Preliminary Development Agreement (PDA) with BP -Pines 1, LLC (Briggs Properties, Elk River) in connection with the development of a 44 - unit market rate, multi -family project with an affordable housing component. At the March 28, 2018 Special EDA, action was taken to authorize preparation of a PDA. The Preliminary Development Agreement is essentially an agreement by both parties to continue working toward a final formal Development Agreement setting out the terms and performance requirements of both parties in relation to the development of the proposed apartment project. Al. STAFF IMPACT: There is a limited staff impact in considering the PDA. The EDA attorney drafted the resolution and the PDA. The Economic Development Manager and reviewed and organized the prepared materials for consideration by the EDA. A2. BUDGET IMPACT: The TIF application fee of $10,000 covers the cost of staff involvement in reviewing and preparing the materials for consideration by the EDA B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2018-07 approving a PDA between BP -Pines 1, LLC and the EDA in connection with the development of a 44 -unit market rate, multi -family development with an affordable component. 2. Motion to deny adoption of Resolution #2018-07 approving a PDA between BP -Pines 1, LLC and the EDA in connection with the development of a 44 -unit market rate, multi -family development with an affordable component. 3. Motion to table adoption of Resolution #2018-07 approving a PDA between BP -Pines 1, LLC and the EDA in connection with the development of a 44 -unit market rate, multi -family development with an affordable component for further research and discussion. 4. Motion of other as determined by the EDA. C. STAFF RECOMMENDATION: Staff recommends that the EDA proceed per Alternative #1. The EDA reviewed and commented on the proposed multi -family development project at the previous meetings and directed staff to prepare a PDA for consideration at the April 11, 2018 meeting. The PDA, if approved, it is an initial agreement wherein the EDA and BP -Pines 1, LLC, have and understanding for continued discussion and negotiation to reach a formal development agreement for consideration by the EDA at a future date. EDA: 3/28/18 The proposed multi -family housing development meets a number of community objectives outlined in the Downtown Small Area Plan and the City 2017 Strategic Plan. Primary among those is that, if the project moves forward, it will provide additional housing units within the downtown area and contribute to community and economic vitality. D. SUPPORTING DATA: a. Resolution #2018-07 b. Preliminary Development Agreement CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2018-07 APPROVING PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND BP-PINESI, LLC BE IT RESOLVED by the Board of Commissioners of the City of Monticello Economic Development Authority ("Authority") as follows: Back rg ound. 1.01. BP-Pinesl, LLC (the "Developer") is in negotiations to acquire certain property in the City, legally described as Lots 1, 2, 3, 9, 10, 11, 12, 13, 14, and 15 and the West 16.00 feet of Lot 8, all in Block Thirty-six in the TOWNSITE OF MONTICELLO as of public record, Wright County, Minnesota (the "Property"), which Property has been the subject of certain preliminary negotiations with the Authority for purposes of constructing a multi -family residential development on the Property and related parking (the "Development"). 1.02. The Authority and the Developer have determined to enter into a preliminary development agreement (the "PDA"), providing for negotiation of a definitive development contract that will address (among other things) terms under which the Developer will construct the Development on the Property, and the Authority may provide certain financial assistance if warranted to make development by the Developer financially feasible. 1.03. The Board has reviewed the PDA, and has determined that it is in the best interests of the Authority to approve and execute the PDA. 2. Approval of PDA. 2.01. The Authority approves the PDA, and authorizes and directs the President and Executive Director to execute same in substantially the form on file, subject to modifications that do not alter the substance of the transaction and are approved by the President and Executive Director, provided that execution of the PDA by such officials will be conclusive evidence of their approval. 2.02. Authority officials and consultants are authorized to take any other actions necessary to carry out the Authority's obligations under the PDA, and to bring a proposed definitive development contract before the Authority. Approved this 11th day of April, 2018, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Secretary CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY PRELIMINARY DEVELOPMENT AGREEMENT (Briggs Multifamily Housing) THIS AGREEMENT, dated this _ day of April, 2018, by and between the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of Minnesota ("Authority') and BP -Pines], LLC, a Minnesota limited liability company ("Developer"): WITNESSETH: WHEREAS, the Developer is negotiating the purchase of certain property within the City of Monticello ("City"), which property is legally described in Exhibit A attached hereto ("Property"); and WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal") for the development of the Property (the "Development"), a portion of which proposal is attached hereto as Exhibit B; and WHEREAS, the Developer has requested the Authority to explore the use of certain public assistance to assist with the Development; and WHEREAS, the Authority has determined that it is in the Authority's best interest that the Developer be designated sole developer of the Property during the term of this Agreement; and WHEREAS, the Authority and the Developer are willing and desirous to undertake the Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment for public costs necessary for the Development; (ii) satisfactory mortgage and equity financing, or adequate cash resources for the Development can be secured by the Developer; and (iii) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the Authority is willing to evaluate the Development and work toward all necessary agreements with the Developer if the Developer agrees to make the nonrefundable deposit described herein, which is intended, in part, to reimburse the Authority for its costs if the Development is abandoned by Developer or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive contract for private development ("Contract") based on the following: (a) the Developer's Proposal, which shows the scope of the proposed 520543v1 MNI MN190-156 Development in its latest form as of the date of this Agreement, together with any changes or modifications required by the Authority; (b) a mutually satisfactory Contract to be negotiated and agreed upon in accordance with negotiations contemplated by this Agreement; (c) such documentation regarding economic feasibility of the Project as the Authority may wish to undertake during the term of this Agreement; and (d) other terns and conditions of this Agreement. 2. It is the intention of the parties that this Agreement: (a) documents the present understanding and commitments of the parties; and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Development prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, the Developer shall: (a) Submit to the Authority a design proposal to be approved by the Authority showing the location, size, and nature of the proposed Development, including floor layouts, renderings, elevations, and other graphic or written explanations of the Development. The design proposal shall be accompanied by a proposed schedule for the starting and completion of all phases of Development. (b) Submit an overall cost estimate for the design and construction of the Development. (c) Submit a time schedule for all phases of the Development. (d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections, and such other economic information as the Developer may desire to further confirm the economic feasibility and soundness of the Development. (e) Submit to the Authority the Developer's financing plan showing that the proposed Development is financially feasible, and, to the extent Developer seeks public financial assistance in any form (including reduced land cost, waiver of fees, and tax increment financing), evidence that such assistance is reasonably necessary to make the Development financially feasible. (f) Furnish satisfactory financial data to the Authority evidencing the Developer's ability to undertake the Development. (g) Furnish any other information reasonably requested by the Authority in connection with the Development, including without limitation information concerning noise, environmental factors, and conformity with the Declaration of Restrictive Covenants governing the Property. 520543v1 MNI MN190-156 2 4. During the term of this Agreement, the Authority agrees to: (a) Commence the process necessary to undertake such public assistance as is necessary pursuant to the terms of the Proposal, including without limitation commencement of actions necessary to terminate all existing agreements and tax increment financing districts related to the Property, and to create a new housing tax increment financing district that includes the Property. (b) Proceed to seek all necessary information with regard to the anticipated public costs associated with the Development. (c) Estimate the Authority's level and method of financial participation, if any, in the Development and develop a financial plan for the Authority's participation. 5. It is expressly understood that execution of the Contract shall be subject to: (a) A determination by the Authority in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the Authority (to the extent requested by Developer); (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Development, if any, including the determination that such assistance is reasonably necessary in order to make the Development possible; (iii) the best interests of the Authority. (b) A determination by the Developer that the Development is feasible and in the best interests of the Developer. 6. This Agreement is effective from the date hereof through August 31, 2018, unless extended with approval of the Authority's board of commissioners. After expiration of the term of this Agreement, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. 7. The Developer shall be solely responsible for all costs incurred by the Developer. In addition, the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined. For the purposes of this Agreement, the term "Administrative Costs" means out of pocket costs incurred by the Authority and City attributable to or incurred in connection with the negotiation and preparation of this Agreement, the Contract, and other documents and agreements in connection with the Development, including without limitation all costs in connection with replatting of the Property and the cost of financial advisors, attorneys, and planning, engineering, and environmental consultants. In order to secure payment of the Administrative Costs, the Developer has delivered to the Authority funds in the amount of $10,000 upon submission of Developer's application for tax increment assistance. If at any one or more times during the term of this Agreement, the Authority determines that Administrative Costs will exceed $10,000 and that additional security is required, the Authority shall notify the Developer of the amount of such additional security. Within ten calendar days of receipt of this notice, the Developer shall deliver to the Authority the required 520543v1 MNI MN 190-156 3 additional security. The Authority will utilize the funds delivered by the Developer to pay or reimburse itself for Administrative Costs. Upon termination of this Agreement, the Authority will return to the Developer the funds paid by the Developer to the Authority pursuant to this Section 7, less an amount equal to the Administrative Costs incurred by the Authority through the date of notice of termination. For the purposes of this paragraph, Administrative Costs are considered to be incurred if they have been paid, relate to services performed, or are payable under a contract entered into, on or before the date of the notice of termination. This Section 7 shall survive termination of this Agreement and shall be binding on the Developer regardless of the enforceability of any other provision of this Agreement. 8. This Agreement may be terminated upon ten (10) days written notice by either party to the other of any of the following events of default, only if such events of default shall remain uncured during the aforementioned notice period: (a) an essential precondition to the execution of the Contract cannot be met; or (b) if, in the sole discretion of the Authority, an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract. 9. During the term of this Agreement, the Authority agrees that it will not negotiate or contract with any other party concerning the development of the Property. The Developer shall not assign or transfer its rights under this Agreement in full or in part, or enter into any subcontracts to perform any of its obligations hereunder, without the prior written consent of the Authority. 10. In the event that the Developer, its heirs, successors or assigns, fail to comply with any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and if the Authority is the prevailing party, the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable attomeys' fees. 11. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 12. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. 13. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the Authority: City of Monticello Economic Development Authority 404 Walnut Street, Suite 1 Monticello, MN 55362 Attn: Executive Director 520543v1 MNI MN 190-156 4 (b) As to the Developer: BP-Pinesl, LLC 633 Upland Avenue, Suite C Elk River, MN 55330 Attn: 14. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. 15. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 16. The Developer hereby agrees to protect, defend and hold the Authority, the City and their officers, elected and appointed officials, employees, administrators, commissioners, agents, and representatives harmless from and indemnified against any and all loss, cost, fines, charges, damage and expenses, including, without limitation, reasonable attorneys fees, consultant and expert witness fees, and travel associated therewith, due to claims or demands of any kind whatsoever caused by Developer or arising out of actions of Developer (and excluding those caused by or arising out of the Authority's or City's own acts or conduct) with regard to (i) the development, marketing, sale or leasing of all or any part of the Property, including, without limitation, any claims for any lien imposed by law for services, labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the violation of any permits, orders, decrees or demands made by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste on the Property deposited or released by Developer; and (iii) or by reason of the execution of this Agreement or the performance of this Agreement. The Developer, and the Developer's successors or assigns, agree to protect, defend and save the Authority, and its officers, agents, and employees, harmless from all such claims, demands, damages, and causes of action and the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys fees, consulting engineering services, and other technical, administrative or professional assistance incurred by the Authority as a result of the actions of Developer. This indemnity shall be continuing and shall survive the performance, termination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of or waiver by the Authority of any immunities, defenses, or other limitations on liability to which the Authority is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466. 520543v1 MNI MN 190-156 5 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year first above written. DEVELOPER: BP -PINES -I, LLC By Its: AUTHORITY: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director 520543A MNI MN190-156 EXHIBIT A Description of Property Lots 1, 2, 3, 9, 10, 11, 12, 13, 14, and 15 and the West 16.00 feet of Lot 8, all in Block Thirty-six in the TOWNSITE OF MONTICELLO as of public record, Wright County, Minnesota. 520543v1 MNI MN 190-156 A_1 EDA Agenda: 4/11/18 5. Consideration of Authorizing Public Hearing Notice and Preparation of Loan Agreement and Related Documents in Connection with Bondhus Corporation's EDA- SCDP Loan Application the amount of $195,000 (JT) A. REFERENCE AND BACKGROUND: Bondhus Corporation has submitted an application for a $200,000 loan from the EDA-SCDP program to help finance a two-story, 10,200 sq. ft. expansion to its existing 60,000 sq. ft. manufacturing facility located at 1400 East Broadway. As part of the expansion project, Bondhus plans to purchase approximately $500,000 of new equipment and also create 15 new jobs. It recently submitted a Job Creation Fund (JCF) grant application in the amount of $195,000 to MN -DEED for reimbursement of its real property capital expenditures and a portion of wages related to 15 new jobs to be created over a three (3) to five (5) year period. The JCF application required City Council support through a Resolution endorsing the expansion project. A nearly 53 year old company with origins in Monticello, Bondhus is a manufacturer of hex hand tools and screwdrivers. It makes 14,000 SKUs of hex and screwdriver oriented tools per day. The 85 workers at its Monticello production facility make and ship about 170,000 tools per day. Customers include Fastenal, Northern Tool, Mid -States Supply, etc. Bondhus has seen steady growth over the decades because of its high quality products with greater torq strength. It sells products internationally to 44 countries worldwide. Bondhus is just one of two hex hand tool makers left in the U.S., with Eklind of Chicago, being the other manufacturer. The need for the expansion area is to accommodate the launch of a new line of tools. Bondhus has examined purchasing other firms in locations outside of Monticello to pursue this line of work and has come to the conclusion that it makes the most sense to establish this work in Monticello and grow it here. The total cost of the proposed expansion project is expected to be $2,304,000. Bondhus is indicating that it will need both the EDA-SCDP loan and the State JCF funding in order to fill a funding gap to allow the total project investment to cash flow. The SCDP loan dollars will be used for equipment purchases while the JCF dollars will be used to reimburse Bondhus for real property improvements at a rate of 5 percent of expenditures. Additional JCF dollars will be paid to Bondhus over three (3) to five (5) years as it verifies annually that it has hired and retained 15 new jobs. Bondhus indicates that it planning to contribute $120,000 (5.6 percent equity) toward the project and has already spent approximately $75,000 on feasibility planning design and engineering studies to accommodate the proposed expansion. Those expenditures are not included in the total costs noted above. The expansion project's funding sources and uses are shown below. Prosect Sources and Uses Source of Funding Amount of Funding % Security Position Harris Bank $1,984,000 86.2 RE Mort-Equip./Assets 1 EDA Agenda: 4/11/18 EDA-SCDP Loan $ 200,000 8.7 Purc Money -Equip. Lien Owner -Equity Capital $ 120,000* 5.3 N/A Total Amt. $2,304,000* #Minnesota DEED - JCF Grant $ 195,000 Reimb. N/A *Bondhus has provided additional owner equity funds totaling $75,000 as necessary project feasibility and design costs to move forward with the expansion. The total project size increases to $2,379,000 when included, thereby resulting in Bondhus contributing approximately 5.1 percent in owner -equity capital toward the expansion project. # JCF is a grant provided a performance reimbursement by Minnesota DEED Since the loan request is in excess of $150,000, the State's Business Subsid public hearing requirement is triggered. At this time, staff is asking the EDA to consider its interest in participating in closing the identified gap financing needs in the amount of $200,000. If the EDA determines that it is interested in providing an EDA-SCDP loan to Bondhus, then follow-on steps will be taken to publish the Hearing Notice for the May 9, 2018 EDA meeting and complete the underwriting process for the loan request and assess the ability of Bondhus's project to comply with the Federal SCDP loan requirements along with authorizing preparation of a loan agreement between the EDA and Bondhus Corporation. Land use applications are likely necessary to support the expansion project and are a separate consideration by the Planning Commission and City Council. Al. STAFF IMPACT: Community Development Department staff has spent considerable time working with Bondhus over the past several months (estimate of 16 to 20 hours +/-) reviewing concepts and exchanging ideas regarding funding programs and a best fit structure for the expansion. The EDA-SCDP loan program is an appropriate source of funding for the project due to planned equipment purchases. When those dollars are used for equipment, the Federal strings attached to the funds that were passed to Monticello through the State can be minimized and ultimately released at the time of repayment back to the EDA. The JCF application is submitted by the Company directly to the State with some collaboration and oversight by City staff. The JCF grant agreement (if approved) will be between Bondhus and the State, so there is minimal City staff follow up involvement in tracking expenditures, verifying job creation and wages and requesting reimbursement payments from the State. The loan, if the EDA approves will result in staff follow up and tracking of payments, etc. A2. BUDGET IMPACT: The budgetary impact related to consideration of the EDA-SCDP loan request is to the loan fund itself. The fund currently has $505,000 +/- available to loan out. This request is for $200,000 or approximately 39 percent of the available dollars in the EDA-SCDP program. The balance of the fund after the loan is completed would be $305,000 B. ALTERNATIVE ACTIONS: IA. Motion to authorize publishing a Public Hearing Notice to consider an EDA-SCDP loan 2 EDA Agenda: 4/11/18 in the amount of $200,000 for Bondhus Corporation's expansion proposal at the May 9, 2018 EDA meeting. 113. Motion to authorize preparation of a Loan Agreement between the EDA and Bondhus Corporation for consideration at the May 9, 2018 EDA meeting. 2A. Motion to deny authorizing a Public Hearing Notice to consider an EDA-SCDP loan in the amount of $200,000 for Bondhus Corporation's expansion proposal at the May 9, 2018 EDA meeting. 2B. Motion to deny authorization of preparation of a Loan Agreement between the EDA and Bondhus Corporation for consideration at the May 9, 2018 EDA meeting. 3A. Motion to table consideration of the Public Hearing Notice related to the EDA-SCDP loan request from Bondhus Corporation in the amount of $200,000. 3B. Motion to table consideration of preparation of a Loan Agreement between the EDA and Bondhus Corporation for consideration at the May 9, 2018 EDA meeting. C. STAFF RECOMMENDATION: Staff recommends Alternative #1 to the EDA. The public hearing notice is a requirement under state statute. It fits in with the completing the underwriting process for the loan request along with the preparation of a Loan Agreement detailing the terms involved in the loan. Community benefits from the expansion include increased economic activity, additional spin- off business for area manufacturers and suppliers, 15 new FTE (full-time equivalent) jobs and additional property tax base. Staff have determined that Bondhus' application is complete. The EDA-SCDP Fund has sufficient dollars to easily consider the $200,000 loan request. An initial review of the project proforma indicates an ability for repayment of th loan SUPPORTING DATA: A. Bondhus Corporation's EDA-SCDP Loan Application B. EDA-SCDP Loan Guidelines Adhl---- )�wCelebrating 50 Years 1965-2015 March 21, 2018 Jim Thares City of Monticello 505 Walnut Street Monticello, Mn 55362 Re: Small Cities Economic Development Loan Fund Dear Mr. Thares, Please accept this application and request for a loan from the Small Cities Economic Development Loan Fund to assist us with the expansion planned for 2018. We have an opportunity to bring the manufacturing of a hand tool product line to Monticello, Minnesota. These tools are currently almost exclusively made in China. We are asking for help to expand our existing manufacturing plant in Monticello, Minnesota in order to manufacture these tools in the US. We are asking for $200,000 from the Small Cities Economic Development Fund to help enable this project to move forward. If there are any questions about this application, please don't hesitate to contact me. Kind regards, Mike Blackston President Bondhus Corp 1400 East Broadway Monticello, MN 55362 763-295-2162 Tel: 763-295-2162 U.S. Toll Free: 800-328-8310 Fax: 763-295-4440 Bondhus Corporation 1400 E. Broadway, P.C. Box 660 Monticello, MN 55362 USA www.bondhius.cotit CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicantBondhus Corporation ., Address: 1400 East Broadway Telephone number: 763-295-2162 Name of contact person: Mike Blackston (President) REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: L A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s). business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and bow the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created, hourly wages and other community assets. 6. A written description of the developer's business, principals, history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. SIGNATURE Applicant's signKt-u're: Date; e .2 0 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Business Assistance Financing GENERAL INFORMATION: Business Name: Bondhus Corporation Address: 1400 East Broadway Monticello, MN 55362 Type (Partnership, etc.): Corporation Authorized Representative: Mike Blackston Description of Business: Manufacturer and seller of hand tools Legal Counsel: Stoel Rives Address: 33 South 6`h Street Minneapolis, MN 55402 FINANCIAL BACKGROUND: 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? No 3. Have you applied for conventional financing for the project? Yes Date: March 21, 2018 763-295-2162 Phone: 612-373-8800 Phone: 4. List financial references: a. BMO Harris Bank NA 50 South 6t' Street Suite 1000 Minneapolis, MN 55402 b. 1 5. Have you ever used Business Assistance Financing before? If yes, what, where and when? PROJECT INFORMATION: 1. Location of Proposed Project: 1400 East Broadway No 2. Amount of Business Assistance requested? $200,000 Part of plant addition and equipment purchase totaling $2.3 3. Need for Business Assistance: million 4. Present ownership of site: Mary Kay Bondhus 5. Number of permanent jobs created as a result of project? 15 to start, during the first 3 years 6. Estimated annual sales: Present: $21 million Future: $25+ million 7. Market value of project following completion: $2 million + 8. Anticipated start date: July 2018 FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition b. Site development c. Building cost d. Equipment e. Architectural/engineering fee f. Legal fees g. Off-site development costs Completion Date: December 2018 $ 0 $176,000 $1,630,000 $498,000 Included in building cost 0 0 2 2. Source of financing: a. Private financing institution $ 1,984,000 b. Tax increment funds $195,000 (JCF grant c. Other public funds possibility) d. Developer equity $120,000 1 -Business overview, company history and ownership Bondhus Corporation is a manufacturing company located in Monticello, Minnesota. The company produces a very wide range of hex -based hand tools; Hex keys (commonly known as "Allen wrenches"), ballpoint keys and screwdrivers, T -handles of all types, folding tool sets and many other specialty tools. The company was founded in 1965 by John Bondhus. John sought to commercialize an idea he had for machining a ballpoint tip at the end of a hex key. The idea and the tools John initially made turned out to be time savers for tool makers who regularly removed and reinstalled socket head cap screws on tooling in manufacturing plants. After some success, and to expand his capabilities, John started manufacturing tools in a small, rented retail store in downtown Monticello. As time went on, John made and sold, more and more tools. To support his growing business, John built a small, one story manufacturing plant, at the site of the current Monticello Bondhus facility, in 1974. This original building still stands today, but has been supplemented by four additions since. In 2017, Bondhus' product line of 14,000 items, supported sales to customers in the US, Canada, Mexico and more than 40 additional countries. When John Bondhus passed away 11+ years ago, his widow, Mary Kay Bondhus became the majority shareholder. The company has an ESOP which owns about 13% of the stock, and a few other shareholders own a small portion of the company (less than 10%). Mary Kay is active in the business and chairs the Board of Directors. The day to day operations of the company are attended to by a corporate staff which includes; Mike Blackston (CEO), Polly Grell (VP Finance), Nick Marchuk (VP Domestic Sales), Fred Leers (VP International Sales), Shannon Pramman (HR Manager). 2.Product or industry outlook Bondhus has been able to grow steadily,, in part= because of its' promotion of "Made in USA" products. The company also has developed a specialized steel alloy and a custom heat treat process to give its tools the greatest strength and ductility possible. Bondhus tools typically generate 20% more torque than competitor tools, especially tools make in China. The company expects the new product line that will be added when this expansion is complete to grow sales by at least $3 million within the first five years after introduction. Bondhus has also been very successful consolidating the sales of their types of products with a customer and gradually eliminating virtually all competitor products from the customers' offering. Any new product lines that are added to its' offering will, after some effort, likely replace products that -are currently supplied by foreign manufacturers to customers Bondhus will target with these products. 3.Proiected sales The company projects sales of its' new product line to reach the $500,000 level by the end of the first years and then grow to $3,000,000 by the end of the fourth full year. Based on the breakdown of direct sales to Minnesota distributors plus estimated sales from large retailers such as Amazon, MSC, McMaster Carr and Grainger directly to customers in Minnesota, the company projects overall sales and sales within Minnesota as follows: Total sales by year end _Sales to Minnesota users by year end Year 1 $500,000 $2000 Year 2 $1,000,000 $4000 Year 3 $2,000,000 $80,000 Year 4 $300,000 $12000 4.Markets The company has a strong sales presence throughout the US and internationally, in 44 countries. 2017 sales to domestic customers totaled 52% of total sales, sales to international customers totaled 28% and sales to private label customers totaled 20%. Domestic markets, percentage of US sales and Key customers include: • Industrial 49% (McMaster Carr, MSC, Amazon, Production Tool) • Hardware 14% (Fleet Farm, Northern Tool, Mid States, Orchard Supply) • Construction supply 11 % (Fastenal, Anchor, ORS Nasco, Iintegrated Supply) • Automotive 7% (Weisser, JB Tool, Sturdevants, Mac Tool) • Private label 19% (Park Tool, Stanley, Snap -Oen, Klein) International market breakdown: • Industrial 61 % • Hardware 8% • Construction supply 12% • Automotive 11 % • Private label 8% Minnesota distributors of Bondhus products are many in number and include: Mills Fleet Farm, Fastenal, Runnings, Northern Tool, Mac Tool, Blackhawk, Acme Tool, Viking Electric, Bomgaars, Applied Industrial, Ace Hardware, Border States, Delegard Tool and many others. 5.Philanthrony Bondhus employees are quietly, but actively involved in support of the local community. The subject of their support varies from year to year, but recent support has been given to the following groups: • Monticello Help Center/Food Shelf • Monticello School District Back Pack Program • One Warm Coat • Monticello Middle School Robotics Club • The Dream Machine at Sts. Peter and Paul School • Operation Minnesota Nice • Bondhus was named a "Difference Maker" by Options Inc (Big Lake). • Additionally, Bondhus supports approximately 40 individuals and families in the Monticello area by subcontracting simple assembly operations directly with them. These are virtually all unskilled people, many with circumstances, such as medical conditions which that -prevent them from maintaining steady employment. Bondhus provides training and ongoing coaching and allows them to do as little or as much subcontract work as they are able. 6.Financials (see attachments for more comiDlete information 7.Proiect Details To accommodate the manufacturing and packaging of an additional product line, the company is planning to add a 10,200 square foot addition onto the East end of the current building. Extensive regrading and shaping of the East lot will be required to provide easy access to delivery and pickup services. The West parking lot will be expanded to accommodate additional staff and to facilitate the separation of employee vehicle traffic, which will be clustered on the West end of the building, from the truck traffic which will be confined to the east end of the building. Mary Kay Bondhus owns the current building and land. The company has a long term lease in place with Ms. Bondhus. Once the construction of this addition is complete she will assume ownership of the mortgage for this addition and the company will lease the additional space on a long term lease. The company will own all of the equipment and machinery purchased for this addition and will be indebted for any loans related to those purchases. Building and Grounds a. East addition: Two floors, heavy construction @10,200 sq ft total 1,500,000 (Including basic electric service, lighting and HVAC) b. New West parking lot plus mill & recoat existing lot 13600 c. Re -side West and North faces of existing building (stop at new precast) 100,000 d. Extensive grading and contouring 40,000 e. Replace main entrance doors and glass above 10,000 f. Additional restrooms 20,000 Sub Total Building $198069000 EQuiument and Machine g. Compressor + electrical 60,000 h. Tormax turning machines _125,000 i. Cut off system _ 4800 j. Milling machines _ _ 90,000 2016 2017 2018 (Prof) 2019 (Prof) Net Sales 19,343,198 21,338,446 21,901,542 23,000,000 Cost of Goods 12,094,134 13,463,971 13,845,701 14,540,123 Operating Expense 5,996,804 6,146,441 6,327,541 6,430,000 Misc Income/Exp 336,370 365.811 563,623 681,613 Net Income _ 915,890 1,362,223 1,164,677 1,348,264 7.Proiect Details To accommodate the manufacturing and packaging of an additional product line, the company is planning to add a 10,200 square foot addition onto the East end of the current building. Extensive regrading and shaping of the East lot will be required to provide easy access to delivery and pickup services. The West parking lot will be expanded to accommodate additional staff and to facilitate the separation of employee vehicle traffic, which will be clustered on the West end of the building, from the truck traffic which will be confined to the east end of the building. Mary Kay Bondhus owns the current building and land. The company has a long term lease in place with Ms. Bondhus. Once the construction of this addition is complete she will assume ownership of the mortgage for this addition and the company will lease the additional space on a long term lease. The company will own all of the equipment and machinery purchased for this addition and will be indebted for any loans related to those purchases. Building and Grounds a. East addition: Two floors, heavy construction @10,200 sq ft total 1,500,000 (Including basic electric service, lighting and HVAC) b. New West parking lot plus mill & recoat existing lot 13600 c. Re -side West and North faces of existing building (stop at new precast) 100,000 d. Extensive grading and contouring 40,000 e. Replace main entrance doors and glass above 10,000 f. Additional restrooms 20,000 Sub Total Building $198069000 EQuiument and Machine g. Compressor + electrical 60,000 h. Tormax turning machines _125,000 i. Cut off system _ 4800 j. Milling machines _ _ 90,000 k. One small heat treat furnace 10000 1. Contingency 75,000 Sub Total Machinery $4989000 Projected Project Total $293049000 8.Effects Of This Project On The Local And State Economies The addition of a new product line to the Bondhus offering will result in new job opportunities in Monticello and sales opportunities throughout Minnesota. The additional product line not only results in a sales increase related to these new items, but sales of existing Bondhus products will increase, as some distributors replace existing products provided by other suppliers as part of the effort to take on the new product line. Purchases from suppliers located in Minnesota should increase sales of the new product line. The company does quite a bit of printing locally. Its plastic injection molding supplier is located in Maple Grove, Minnesota. Its_plating supplier is in Isle, Minnesota. The company's steel hauler is Long Haul Trucking, located in Albertville, Minnesota. Local subcontract machining suppliers such as Accura Automatics and Ellison Machining would also benefit. All of these companies and many others will see increased business activity as a result of this project. LLJ xiY LLJ LLJ M I F ---j CnJ LLJ xiY LLJ LLJ M XIV -1 u X1611 UP 1111:n I 0 TY A�Monticello MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET- ASIDE REVOLVING LOAN FUND GUIDELINES L PURPOSE: The City of Monticello ("City") has received a grant through the Community Development Block Grant Economic Development Set Aside (SCDP) program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLF. In December 2005, the City Council requested that Minnesota DEED designate the City of Monticello EDA as a Local Development Organization (LDO) so the Program funds could be transferred to the EDA as well as authority for the administration of RLF utilizing Program dollars. A letter response from MN -DEED, dated January 3, 2006, recognizes the EDA as a LDO and therein effectuates the transfer of the Program funds and the administrative authority of those dollars. II. PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start-ups, expansions, and retention where jobs are created or retained. This maybe accomplished by the following means: 1.) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 5.) Stimulation of productivity growth through unproved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy -downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. The RLF is subject to all of the state and federal CDBG requirements, as described in Exhibits A and B attached. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out-of-state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Lease or purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 9.) Workforce Development including job training and placement: a.) Training low skilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have; b.) Training a pool of low-income prospective employees for specific jobs being created as a result of a CDBG-funded industrial expansion, where the employer agrees to give first consideration to filling the new positions with people from this pool; c.) Re-training existing employees of a business as part of a project which qualifies as retaining jobs. 10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or developing a microenterprise, which is defined as a commercial enterprise that has 5 or fewer employees, one or more of whom owns the enterprise. If this assistance is federally funded, the business needs to be owned by an individual that is in a low and moderate income household. 11.) Housing Rehabilitation — Owner Occupied or Rental. VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 8.) For relocation of an out of state business. 9.) New housing construction. 10.) Planning for economic development projects. 11.) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. 12.) Working capital. VII. PUBLIC BENEFIT A project using RLF funds must show a minimum level of public benefit. The amount of the assistance must not exceed $50,000 per full-time equivalent, permanent job (created or retained). If the City finds, after a public hearing, that the primary purpose of the project is not job creation, this provision is not applicable. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to City approval B. Terms and Conditions: 1. Leveraging: Minimum 60 to 65 % private/ Non-RLF, Maximum 30% RLF, Minimum 5 to 10% equity. 2. Loan Term: Personal property term not to exceed life of equipment (possibly up to 10). Real estate property maximum of 10 -year maturity amortized up to 30 years. Balloon payment at 10 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate or I% below prime if equity contribution is less than 10 percent of total financing - as published in the Wall Street Journal on date of EDA loan approval, with a minimum interest rate of 1.0% or 2% if equity contribution is less than 10 percent of total financing. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant within 5 working days after EDA approval of loan. The fee is non-refundable. C. Other: 1. No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to by the EDA. 3. Monthly payments may be deferred for a determined period of time upon approval by the EDA. i. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the EDA under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the EDA within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the EDA and all such interest will be due and payable at the same time as the amount on which it has accrued. 4. RLF Loans are not assumable. 5. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 6. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to EDA approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 7. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. i. The 180 -day non-performance date can be extended up to an additional 120 days, upon approval by the EDA. ii. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. 8. Legal fees are the responsibility of the RLF applicant. 9. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the EDA and assist in carrying out the policies of the RLF as approved by the EDA. iii. Shall analyze the formal application and indicate to the EDA at the level at which the lending institution will participate in the finance package. 10. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure EDA compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the EDA to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The EDA desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. Cit Sy taff. City Staff shall carry out RLF operating procedures as approved by the EDA. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the EDA shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 Revised January 10, 2018 Exhibit A STATE REQUIREMENTS State requirements are as on file with the City Clerk of Monticello and -are hereby incorporated by reference. Exhibit B FEDERAL REQUIREMENTS Federal requirements are as on file with the City Clerk of Monticello and are hereby incorporated by reference. ■ WSB — 701 Xenia Avenue South I Suite 300 1 Minneapolis, MN 55416 1 (763) 541-4800 Memorandum To: Jim Thares, Economic Development Director From: Jim Gromberg, Economic Development Coordinator Date: April 6, 2018 Re: Project Updates WSB Project No. 011121-00 Thank you for the opportunity to continue to assist the City of Monticello in their continued efforts to provide economic vitality for the community and the residents. Below are updates on some of the projects that we have discussed for the city with regards to the economic development efforts. IRT Site: The company has relocated to another community providing an opportunity to redevelop the site with a use that will be more compatible with the surrounding uses. Based upon the past use of the site Monticello should consider the use of DEED's Contamination Cleanup and Investigation Grant Program. This program allows for a grant of up to 75% of the costs of the investigation not to exceed $50,000. A grant for the cleanup could be for 75% of the total project cost. The remaining 25% would be covered by a match from the City. The grant fund currently has $4 million and the applications for this round of funding are due on May 1St for the first round of funding. The second round of funding would be on November 1St. If Monticello decides to apply for the funding it should have an application in the first round for the investigation and if clean-up is required apply during the second round for additional funding for the completion of the project. • Xcel Energy: Xcel Energy has approached the city concerning a possible manufacturing project that would also include a data center in the lower level of the building. The proposed project would be located in or near the industrial park to take advantage of the available utility infrastructure. The project is currently on hold due to the recent uncertainty of the economic outlook. Childcare Needs: I recently met with First Children's Finance to discuss the current shortage of daycare providers and spots for children in the wright County area. As the attached chart shows the City of Monticello currently has a shortage of 580 spots for childcare. While Wright County currently has a shortage of 1,222 spots for childcare. The shortage creates a problem for families to be able to have childcare available to allow for them to take advantage of employment opportunities. The EDA may want to consider having First Children's Finance attend the next EDA meeting to discuss the problem and possible steps to alleviate the shortage of spots. First Children's Finance is a non-profit that is funded by federal and state grants and has a grant program that could allow for Monticello to develop a long-term plan for providing the needed spots. Downtown Block 52 Redevelopment: Monticello has closed and is in title on the River Street Station Antiques building and will possession on July 1, 2018. The tenants have received a notice to vacate by June 30, 2018. Relocation assistance services are being provided to the tenants. Referral have been sent to several of the tenants with research on additional referrals in process. All tenants have been contacted and estimates of their relocation benefits will be sent to them in by mid-April. Building a legacy — your legacy. Equal Opportunity Employer I wsbeng.com Project Updates April 6, 2018 Page 2 • WSI and Project Novus: As some of the members may be aware a firm has proposed the purchase of WSI. WSI has responded that they want to make sure any change of ownership does not adversely affect the city of Monticello or their employees. The Project Novus site search is currently on hold due to uncertainty in the international markets and product volume volatility. Please let me know if you have any questions concerning the above projects or require additional information on the projects. In addition, let me know if you have additional projects that should be reviewed and included. F.\Economic Develop me nt\Boards\EDA\EDA Age nda\2015\April\Item 6. Consideration of WSB Update Report. rpt.docx 1 FIRST CHILDREN'S FINANCE Maple Lake Area Child Care Supply / Demand / Gap Analysis Summary The Zip Code Analysis provides insight into zip codes that are experiencing a negative gap in care availability for expected number of children seeking care. These totals will be slightly different than the area view due to zip codes extending beyond area boundaries. First Children's Finance Supply / Demand / Gap Analysis Maple Lake Area Zip Code Analysis Zip Code City 55302 Annandale CCC # 2 CCC Capacity 180 FCC # 11 FCC Capacity Total 126 Capacity 306 Exptcl Capacity* Under'6'Working 263 360 Expected Under'5'** 302 Plus/Minus/Total -39 55313 Buffalo 6 706 37 436 1142 970 1002 842 128 55320 Clearwater 0 0 12 142 142 120 340 286 -166 55321 Cokato 1 35 4 50 85 70 256 215 -145 55349 Howard Lake 0 0 5 60 60 50 104 87 -37 55358 Maple Lake 0 0 8 84 84 80 188 158 -78 55362 Monticello 1 97 42 504 601 502 1289 1083 -580 55363 Montrose 0 0 8 94 94 80 350 294 -214 55382 South Haven 0 0 8 94 94 80 131 110 -30 55390 Waverly 0 0 8 86 86 80 167 140 -60 Total 10 1018 143 1676 2694 2295 4187 3517 -1222 *Expected capacity is an internal calculation of First Children's Finance based upon historical data collection. **Expected Under '5' is the adjusted calculation from the US Census totals of children with all parents working Under V The Zip Code Analysis provides insight into zip codes that are experiencing a negative gap in care availability for expected number of children seeking care. These totals will be slightly different than the area view due to zip codes extending beyond area boundaries. First Children's Finance Supply / Demand / Gap Analysis 1 FIRST CHILDREN'S FINANCE First Children's Finance Supply / Demand / Gap Analysis EDA Agenda: 04/11/18 7. Economic Development Report (JT) A. Phase 1 Environmental Assessments Authorized by the EDA The Phase 1 Environmental Assessments have been completed for 103 Pine Street and 112 West River Street. More information about the results of the studies will be provided at the meeting. B. Regional Housing Forum Sponsored by the Initiative Foundation See the attachment regarding the Governor's Task Force on Housing listening and discussion session. The Initiative Foundation is taking the lead to convene a group discussion to identify and consider recommendations for securing Minnesota's housing future. It is a free forum where you can share ideas related to home ownership, rental housing and opportunities for housing suitability in Central Minnesota. Questions to be asked include: How can we do better in providing sufficient affordable rental options? How can we improve stability for individuals and families in transition? How can we help more people achieve home ownership? Time 6 to 9 p.m. Date: Thursday, April 5 Place: Initiative Foundation, Little Falls C. Housing Article from fedgazette, Federal Reserve Bank in Minneapolis, MN See the attached link and click on to read article in the Fedgazette, Minneapolis Federal Reserve Bank, addressing affordable housing in the upper Midwest. https://www.minnegpolisfed. org_/publicationslfedgazette/the-vanishing-starter-home D. 103 Pine Street Relocation Expenditures Projection (see attached report from WSB) E. Signage at 103 Pine Street Staff believes that is makes sense to place for sale signage on the site indicating its availability to the development community. A mock-up of a proposed sign is attached. Staff is asking the EDA to consider authorizing $2,500 to create and place a sign on the property. F. Block 52 Marketing Brochure The first of three brochures promoting development assets and opportunities in the downtown core is complete. The brochure will be provided to the EDA and reviewed at the meeting. G. Prospects — See attached A spread sheet with the active prospects will be provided to the EDA for review and discussion at the regular meeting. City of Monticello EDA Project 61802027 - 103 Pine Street March 14, 2018 Page 20 According to the User, the Phase I ESA was conducted in association with the purchase and redevelopment of the Site. Opinions expressed herein are influenced by the stated reason for conducting the Phase I ESA. Furthermore, the expressed opinions might not be applicable to alternate reasons for reliance on the content of the Phase I ESA. A recognized environmental condition is defined by ASTM Practice E1527-13 as: "the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: 1) due to any release to the environment, 2) under conditions indicative of a release to the environment, or 3) under conditions that pose a material threat of a future release to the environment. De minimis conditions are not recognized environmental conditions." This assessment identified no recognized environmental conditions in connection with the Site. • • • • •11,1161flifr4i•. •A•.:`. A controlled recognized environmental condition is defined by ASTM Practice E1527-13 as "a recognized environmental condition resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority, with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls." This assessment identified no controlled recognized environmental conditions in connection with the Site. A historical recognized environmental condition is defined by ASTM Practice E1527-13 as "a past release of any hazardous substances or petroleum products that has occurred in connection with the Site and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the Site to any required controls." This assessment identified no historical recognized environmental conditions in connection with the Site. BRAUN INTERTEC City of Monticello EDA Project B1802027 - 103 Pine Street March 14, 2018 Page 21 A de minimis condition is defined by ASTM Practice E1527-13 as "a condition that generally does not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies." The following findings are considered de minimis conditions: ■ The Site was used for residential purposes from at least 1914 until the 1970s. It is our opinion that the use of the Site for residential purposes is considered a de minimis condition for the Site. ■ The Site is currently used as a retail antiques store, beauty salon, and a building contractor's office. Based on the absence of indications of significant use, storage, or release of hazardous substances and/or petroleum products, it is our opinion that the current Site uses are considered a de minimis condition for the Site. ■ Small stains were observed in the parking lot. Based on appearance, the stains do not represent an indication of a significant release and are therefore considered de minimis conditions. ■ The government database records review identified several regulated facilities in the vicinity of the Site. Based on mitigating factors that affect the apparent significance of the identified facilities on the Site, such as regulatory status, distance from the Site, location of the facility in relation to the groundwater flow direction, and/or the database(s) the identified regulated facilities are listed on, it is our opinion that the identified regulated facilities are considered de minimis conditions. ,• •.WIMM117.1• An additional consideration is a condition that does not meet the definition of a recognized environmental condition, controlled recognized environmental condition, or historical recognized environmental condition but, in our opinion, should be brought to the attention of the User. The following additional considerations were identified during the Phase I ESA. Historically, a residential dwelling was located on the Site. The dwelling (former parsonage associated with the former church on the Site) was reportedly moved from its foundation and transported offsite in the 1970s. It is unknown if the foundation of the former building was removed. The potential exists that BRAUN INTERTEC City of Monticello EDA Project B1802027 - 103 Pine Street March 14, 2018 Page 22 buried materials are present at the Site that may require management as solid or hazardous waste if encountered during future earthwork or redevelopment activities. If fill soils, which could include demolition debris and other wastes, are encountered during such activities, then additional evaluation of the fill soils might be required to assess appropriate management and/or disposal requirements. Based on our historical review, the potential exists for a well and/or septic system to be located at the Site. Wells that may be encountered during future redevelopment must be properly abandoned in accordance with Minnesota Department of Health regulations. Septic systems that may be encountered during future redevelopment must also be properly abandoned in accordance with local codes and state regulations. Prior to building demolition, a Minnesota Department of Health (MDH) licensed asbestos inspector should conduct a destructive survey to identify and locate asbestos -containing materials (ACM). An MDH licensed asbestos abatement contractor should remove all friable and potentially friable ACM prior to building demolition. Non -friable ACM (if any) left in place during demolition should be segregated and disposed of as ACM. In addition, all hazardous substances and building components containing hazardous substances should be properly disposed of prior to demolition. We have conducted this Phase I ESA of the Site in general conformance with the scope and limitations of ASTM Practice E1527-13. Any exceptions to, or deletions from, this practice are described in Section F of this report. This assessment identified no recognized environmental conditions in connection with the Site. This assessment identified no controlled recognized environmental conditions in connection with the Site. Additional Considerations Historically, a residential dwelling was located on the Site. The dwelling was reportedly moved from its foundation and transported offsite in the 1970s. It is unknown if the foundation of the former building was removed. The potential exists that buried materials are present at the Site that may require management as solid or hazardous waste if encountered during future earthwork or redevelopment activities. If fill soils, which could include demolition debris and other wastes, are encountered during such activities, then additional evaluation of the fill soils might be required to assess appropriate management and/or disposal requirements. BRAUN INTERTEC City of Monticello EDA Project B1802027 - 103 Pine Street March 14, 2018 Page 23 Based on our historical review, the potential exists for a well and/or septic system to be located at the Site. Wells that may be encountered during future redevelopment must be properly abandoned in accordance with Minnesota Department of Health regulations. Septic systems that may be encountered during future redevelopment must also be properly abandoned in accordance with local codes and state regulations. Prior to building demolition, a Minnesota Department of Health (MDH) licensed asbestos inspector should conduct a destructive survey to identify and locate asbestos -containing materials (ACM). An MDH licensed asbestos abatement contractor should remove all friable and potentially friable ACM prior to building demolition. Non -friable ACM (if any) left in place during demolition should be segregated and disposed of as ACM. In addition, all hazardous substances and building components containing hazardous substances should be properly disposed of prior to demolition. References are listed in Appendix I. We have the specific qualifications based on education, training, and experience to assess a property of the nature, history and setting of the subject property. We have developed and performed the all - appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312. Qualifications of the environmental professional and the qualifications of the personnel conducting the site reconnaissance and interviews, if conducted by someone other than an environmental professional, are attached in Appendix J. BRAUN INTERTEC City of Monticello EDA Project 61802027 - 112 West River Street March 21, 2018 Page 18 G. • The findings include identified known or suspect recognized environmental conditions, controlled recognized environmental conditions, historical recognized conditions, de minimis conditions and additional issues in connection with the Site. The following findings are based on the results of our assessment: ® The building observed on the Site at the time of the reconnaissance for this assessment was constructed in 1948. The building was used as a warehouse from 1948 until 2006. It appears that this was the first developed use of the Site. From 2006 until the time of this assessment, the Site was occupied Union Speed and Style (a shop that specialized in customizing and restoring parts for vintage automobiles and motorcycles). ■ Small stains were observed in the shop floor and in the parking lot. The government database records review identified regulated facilities within the vicinity of the Site; however, none were identified on adjoining properties. According to the User, the Phase I ESA was conducted in association with the purchase and redevelopment of the Site. Opinions expressed herein are influenced by the stated reason for conducting the Phase I ESA. Furthermore, the expressed opinions might not be applicable to alternate reasons for reliance on the content of the Phase I ESA. A recognized environmental condition is defined by ASTM Practice E1527-13 as: "the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: 1) due to any release to the environment, 2) under conditions indicative of a release to the environment, or 3) under conditions that pose a material threat of a future release to the environment. De minimis conditions are not recognized environmental conditions." This assessment identified no recognized environmental conditions in connection with the Site. BRAUN INTERTEC City of Monticello EDA Project B1802027 - 112 West River Street March 21, 2018 Page 19 A controlled recognized environmental condition is defined by ASTM Practice E1527-13 as "a recognized environmental condition resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority, with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls." This assessment identified no controlled recognized environmental conditions in connection with the Site. .3. Mstoroca0 Reco nu xe ] EnAvanmentaG Conditions A historical recognized environmental condition is defined by ASTM Practice E1527-13 as "a past release of any hazardous substances or petroleum products that has occurred in connection with the Site and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the Site to any required controls." This assessment identified no historical recognized environmental conditions in connection with the Site. A de minimis condition is defined by ASTM Practice E1527-13 as "a condition that generally does not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies." The following findings are considered de minimis conditions: ■ The Site was used for a warehouse from approximately 1948 until approximately 2006. It appears that this was the first developed use of the Site. The Site was used by a custom fabricator of metal parts and upholstery for vintage cars and motorcycles from approximately 2006 until the time of this assessment. Based on available historical information and Site observations, it is our opinion that the uses of the Site for warehousing and for custom fabricating of metal parts and upholstery are considered a de minimis condition for the Site. BRAUN INTERTEC City of Monticello EDA Project B1802027 - 112 West River Street March 21, 2018 Page 20 Small stains were observed on the shop floor and in the parking lot. Based on appearance, the stains do not represent an indication of a significant release and are therefore considered de minimis conditions. ® The government database records review regulated facilities within the vicinity of the Site; however, none were identified on adjoining properties. Based on mitigating factors that affect the apparent significance of the identified facilities on the Site, such as regulatory status, distance from the Site, location of the facility in relation to the groundwater flow direction, and/or the database(s) the identified regulated facilities are listed on, it is our opinion that the identified regulated facilities are considered de minimis conditions. An additional consideration is a condition that does not meet the definition of a recognized environmental condition, controlled recognized environmental condition, or historical recognized environmental condition but, in our opinion, should be brought to the attention of the User. The following additional considerations were identified during the Phase I ESA. Prior to building demolition, a Minnesota Department of Health (MDH) licensed asbestos inspector should conduct a destructive survey to identify and locate asbestos -containing materials (ACM). An MDH licensed asbestos abatement contractor should remove all friable and potentially friable ACM prior to building demolition. Non -friable ACM (if any) left in place during demolition should be segregated and disposed of as ACM. In addition, all hazardous substances and building components containing hazardous substances should be properly disposed of prior to demolition. I. Conclusions We have conducted this Phase I ESA of the Site in general conformance with the scope and limitations of A AM HJ o ivi rraciice E-1527-13. Any exceptions to, or aeietions from, this practice are described in Section F of this report. This assessment identified no recognized environmental conditions in connection with the Site. This assessment identified no controlled recognized environmental conditions in connection with the Site. BRAUN INTERTEC City of Monticello EDA Project 81802027 -112 West River Street March 21, 2018 Page 21 Additional Considerations Prior to building demolition, a Minnesota Department of Health (MDH) licensed asbestos inspector should conduct a destructive survey to identify and locate asbestos -containing materials (ACM). An MDH licensed asbestos abatement contractor should remove all friable and potentially friable ACM prior to building demolition. Non -friable ACM (if any) left in place during demolition should be segregated and disposed of as ACM. In addition, all hazardous substances and building components containing hazardous substances should be properly disposed of prior to demolition. J. References References are listed in Appendix I. K. Environmental Professional Statement and Qualifications We have the specific qualifications based on education, training, and experience to assess a property of the nature, history and setting of the subject property. We have developed and performed the all - appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312. Qualifications of the environmental professional and the qualifications of the personnel conducting the site reconnaissance and interviews, if conducted by someone other than an environmental professional, are attached in Appendix J. We declare that, to the best of our professional knowledge and belief, we meet the definition of Environmental Professional as defined in §312.10 of 40 CFR 312. BRAUN INTERTEC CORPORATION Matthew P. Erickson Senior Scientist Ja s E"�. Stephan` Associate Principal — Senior Scientist RA INTERTEC FVaErtl. Jeff O'Neill SeM: Monday, March 12, 2018 8:31 AM 70. Angela Schumann; Jim Thares subed.- FW: Forum on Minnesota's Housing Future - In Little Falls on April 5 - might be worth attending. Jeff O'Neill City Administrator Monticello, MN 763-271-3215 vvww.cl.monticello. mn.us 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. From: The Initiative Foundation & the Governor's Task Force on Housing <info@ifound.org> Sent: Monday, march 12, 2018 8:00 AM To: Jeff O'Neill <Jeff.Oneill@ci.monticello.mn.us> Subject: Forum on Minnesota's Housing Future A April 155) Forum an Minn� 's Huslo g UtL 11 The Governor's Task Force on Housing wants to hear from you as it identifies and considers recommendations for securing Minnesota's housing future. There is a wealth of expertise and knowledge in Central Minnesota. Please join us for a free regional forum at the Initiative Foundation and share your ideas related to home ownership, rental housing and opportunities for housing stability in Central Minnesota. How can we do better in providing sufficient affordable rental options? How can we improve stability for individuals and families in transition? How can we help more people achieve home ownership? Your voice matters. Time: 6 to 9 p.m. Date: Thursday, April 5 Place: Please forward to elected officials, community leaders, developers, housing advocates, economic development organizations and anyone else who would benefit from this discussion. Questions? Contact the Initiative Foundation 1 (877) 632-9255 I E-mail ( Website You are receiving this message because you have opted to receive email communications from the Initiative Foundation. If you'd rather not receive future messages, please feet free to click and follow the "Unsubscribe" link at the bottom of this message. Thank you! Initiative Foundation 1 405 First St. SE, Little Falls, MN 56345 Unsubscribe jeff.oneill@ci.monticello.mn.us Update Profile I About our service provider RELOCATION BENEFITS 207 891 Monticello - Downtown Redevelopment Project Estimated Relocation Benefits April 4, 2018 Prepared by Penny Rolf - 763-231-4868 Displacee Type of Move Personal Property Move Only Residential Rent Fixed Payment Business or Residential Supplement Move Benefit Business - Searching Benefit Business Re-establishment Bethany Froslie Residential $725 $15,666 Ann Smith Personal Prop. $3,000 Christopher Weber Personal Prop. $1,500 James Brinker Personal Prop. $3,000 James Quentin Young Business $3,000 $2,500.00 $10,000 Joan Bondus Personal Prop. $1,000 John & Sharon Hendricks Personal Prop. $3,000 Mare Ferrell Business $1,500 $2,500.00 $10,000 Mary Swenson Business $2,500 Shiloh Thompson Personal Prop. $1,500 $2,500.00 $10,000 Terry Forner Personal Prop. $1,500 Lanners Construction Business $40,000 Going in Style Business $40,000 $2,500.00 $50,000 River Street Station Antiques Not an Eligile Business SUB - TOTALS $21,500 $40,000 $40,725 $15,666 $10,000 $80,000 RELOCATION BENEFITS 207 891 Staff is seeking funding to create a marketing sign at the site of 103 Pine Street, with good visibility from MNTH#25. The sign will be effective in marketing essentially the north half of Block 52. This is a draft of the sign. Feedback from the EDA is appreciated. Recommendation is to authorize $2,500 to create and place two faced sign on the property, with the possibility of using the existing common sign on the site. Sign colors have not been determined. The City of Monticello Communications Director will be involved in selecting colors and signage nuances. FOR SALE EDA REDEVELOPMENT SITE ASSISTANCE AVAILABLE CONTACT: JIM THARES &V# 4 ?&Wtd d& c� 2-x-2 +rM �ne� 763-271-3254 _2 tiF h yl Y+'L LL• ?y1C_ Combine View with Visibility Monticello's busiest intersection. Get seen by 35,000 daily! MN -DOT County Traffic Count Maps, 2014 Perspective from Walnut Street looking across a redesigned West Bridge Park. Illustrations by U C I � ' — " CUNINGXRM lonticeflo ... For development opportunities contact: dim Thares I Economic Development Manager Direct: 763-271-3254 City Hall: 763-295-2711 Fax: 763-295-4404 Jim.Thares@ci.monticeIIo.mn.us City Hall: 505 Walnut Street, Monticello, MN 55362 www.ci.monticel lo.m mus - .4 _ ;"moi•_ ; 1• DEVELOPMENT INCENTIVES: O10th fastest growing market in the Greater MSP area OGreat access:) -94, Hwy. 25, Cty. Rd. 75 and Hwy. 10 OLowest taxes in Wright County OFinancial incentives Extensive fiber-optic networks to every household and business O Competitive utility rates 0 Full-service hospital and health care clinics 0 Talented and available workforce OExtensive park and pathway system —41 High MonticelloAft _ _&_a iii ► iii✓iv • Gateway to Monticello 1y Desirable! J Mississippi River views Downtown Riverfront Development OPPORTUNITIES 14.0 / V • ' , � , �M+ite Pfieae foleX 1 , ► Bandl t SiN FW tic fS P. M P�amG4 Monticello is the sub -regional center for Sherbume health care services, dini - recreation �4 ,'l°ffav p=an« between St. Cloud and da $pnn� Refugerove. ,. MWT'OWNTOWN'S TRADE AREA 931500in 2010 andIIS+population was estimated at arinanW4 is projected to have an annual growth rate of 2.2/0.' Burial* • Large anchor stores in Monticello (Fleet Farm, Cub Foods, ° Walmart, SuperTarget, and Home Depot) create a; SECONDARY TRADE AREA. _�`°°� The combined population of the 12 719 0 i � �����n Downtown and secondary trade areas was 1 in 2010. � �"=� • Monticello's 121759 population was in the 2010 census. POPULATION GROWTH PROJECTIONS FOR WRIGHT COUNTY TOTAL POPULATION PERCENT CHANGE 2010 2020 2030 2040 124,700 147,422 171,416 193,679 2010-2020 2010-2040 18.2% 55.3% Monticello is conveniently located between St.Cloud and Minneapolis along 1-94 and Highway 25, and two miles from Highway 10. • Minutes from the Northstar Commuter Station • 51 miles northwest of the Minneapolis/St. Paul International Airport & 23 miles from the St. Cloud Regional Airport WHAT YOU WANT: Located along the scenic Mississippi River, Monticello boasts: • Extensive DUAL FIBER-OPTIC NETWORKS to every household and business • 29 PARKS AND 17 MILES OF PAVED PATHWAYS, including a 1200 ACRE REGIONAL PARK. • EXCELLENT SCHOOL DISTRICT - ranked 26th of 441 Minnesota districts • PROGRESSIVE MEDICAL FACILITY and Cancer Center • AFFORDABLE HOUSING `- — QUALITY WORKFORCE •COMMUNITY CENTER with pool, fitness area, gym, meeting and banquet rooms • 600 seat ICE ARENA Monticello will work with businesses to analyze project requirements including: planning, zoning, finance and marketing. Depending on the nature of the project, the following business incentives may be available: LOCAL ASSISTANCE PROGRAMS • Acquistion of land • Preparation of sites for development • Fiber subsidy - Gigabit speeds available • Tax increment financing, tax abatement, or other financial tools available to the city. • Revolving loan programs REGIONAL ASSISTANCE PROGRAMS • Wright County Enterprise Fund • Minnesota Investment Fund • Small Business Development Loan Program TRAFFIC COUNT 35,000 per day COQ 'r • High visibilty - 35,000 vehicles travel Highway 25 across the Mississippi River bridge on their daily commute, and vacationers heading to the lake pass this way every weekend. • Beautiful city park to the north offers views of the river to ground floor commercial businesses and "park -facing" housing units. ftl BLOCK 52• is located in the northwest corner of State Highway 25 and County Highway 75 c n r V) U 0 u u + u W e i l�D •p O t cn-1 0000 cN-I 4 i i L1 i i a O O N +ru Q Z Z 0 O' N L) O «-0 O N d V) V) co m V) N v V) V)w +, v v c. 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