HRA Agenda 07-11-2001
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AGE DA
MONTICELLO HOUSING AND R DEVELOPMENT AUTHORITY
Wednesday, July 11i 2001 - 7:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Dan Frie, Vice Chair rad Barger, Steve Andrews, Darrin Lahr, and
Bob Murray.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lo i Kraemer.
Guests:
Brad Johnson, Lotus Realty Servie s, Inc.
Barry Fluth, Masters Fifth Avenue, Inc.
Pat O'Donnell, Smith & Associate.
Mike Cyr, MLC Building and Rem deling
Mark Rull, Ehlers & Associates
Sheri Harris, Central Minnesota H using Partnership, Inc.
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5.
Call to Order.
Consideration to approve the June 6, 2001 1RA minutes.
Consideration of adding or removing item from the agenda.
Consent Agenda.
Consideration of an update on the impact t TIF relative to the Legislative Tax Bill and a
recommcndation to thc City Council to co sider issuing a Temporary Bond. (Mark Ruff)
6. Consideration to re~review and re-affirm t e level of TIF assistance for the proposed
Housing District associated with the MHF Monticello application.
7. Consideration to approve the preliminary c I1cept fix use of TIF relative to thc
redevelopment of a portion of Lots 4, 5, 6, 7, and 8, Block 36. (Mike Cyr)
8. Consideration to adopt a resolution enterin -,- into the Contract for Private Development by
and between the HRA and Masters Fi1lh ^ enue, Inc.
9. Considcration to accept a counter-offer for the property located at 218 Front Street.
10. Consideration to authorize soliciting bids l' r demolition/clcanup of the properties located
at 3 Walnut Street, 220 Front Strcet, and 8 .oeust Street.
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11.
Consideration to discuss amending the wa re level criteria within the Business Subsidy
Criteria of the HRA and calling f()r a publ c hearing.
12. Consideration of authorizing payment of onthly HRA bills.
13. Consideration of Executive Director's Re
14. Committee Reports: None.
15. Other Business.
16. Adjournment.
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MINU ES
MONTICELLO HOUSING AND R DEVELOPMENT AUTHORITY
Wednesday, .June 6 2001 - 7:00 p.m.
505 Walnut Stree - Bridge Room
Commissioners Present:
Chair Dan Frie, Vic Chair Brad Barger, Darrin Lahr, Bob Murray
and Council Liaison Brian Stumpf.
Absent:
Steve Andrews
Staff Present:
Ollie Koropchak an Lori Kraemer.
Guests:
Brad Johnson, Lotus Realty Services, Inc.
Barry Fluth, Masters Fifth Avenue, Inc.
Mike Cyr, MLC Bui ding and Remodeling
I. Call to Order.
Chair Frie called the meeting to order at 7:
2.
RA. minutes.
A MOTION WAS MADE BY BOB MUR A Y AND SECONDED BY DAN FRIE TO
APPROVE THE MINUTES OF THE MA 2,2001 HRA MEETING. Motion carried
unanimously.
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Consideration of addino or removin items rom the agenda. None
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Consent Agenda.
A. Consideration to adopt a resolution pproving decertification of TIF District No.
1-12 (Aroplax). Recommendation: Adopt resolution decertifying TIF
District No. 1-12 (Aroplax).
B. Consideration to approve reschedulil g the July regular meeting date of the HRA..
Recommendation: Approve resch duling the HRA meeting from July 4,
2001 to July 11,2001.
C. Consideration to approve a resolutio adopting the modification to the
Redevelopment Plan for Central MOl ticello Redevelopment Project No. I; and
establishing TfF District No. 1-28 wi hin Central Monticello Redevelopment
Project No.1 and adopting the TIF PI n therefore. Recommendation: Approve
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HRA Minutes - 06/06/01
the resolution adopting the modificaiton to the Redevelopment Plan for
Central Monticello Redevelopm nt Project No.1; and establishing TIF
District No. 1-28 with Central M nticello Redevelopment Project No.1 and
adopting the TIF Plan therefor.
D.
Consideration to approve authoriz tion to enter into a Contract for Private
Redevelopment among the HRA, t e City. and Integrated Recycling
Technologies, Inc. Recommenda ,ion: Approve authorization to enter into the
Contract for Private Developme t among the HRA, the City, and Integrated
Recycling Technologies, Inc.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY DARRIN
LAHR TO APPROVE THE CONSENT AGENDA. Motion carried unanimously.
5.
Consideration to extend the effective date l' the Preliminar Develo ment Agreement
between the HRA and Barr Fluth and to a Ithorize drafhn of the Contract for Private
Redevelopment.
Ollie Koropchak provided the staff report dvising that since the May 2 BRA meeting,
Johnson, O'Neill, and Koropchak met twic relative to the parking requirements and the
WAC/SAC fees. Koropchak provided co ies of the proposed terms and conditions for
purchase of the Amoco site via Johnson as ated May 7, 2001. Koropchak suggested to
include a section entitled Termination of Lase to avoid business relocation costs.
Johnson said the demolition/acquisition co tare $170,000. According to Johnson, the
first floor 5,700 sq ft of the building has be n rented.
Koropchak advised the HRA to consider It ms for the HRA to consider whether to extend
the agreement: review proforma and cashfl w projections; review level of pay-as-you-go
TIF assistance: and authorize the HRA Att rney to draft the contract.
Brad Johnson, Lotus Realty, advised that t ey had met with the City regarding the
WAC/SAC tees and other city fees and adv sed that their potential renter may pick up the
WAC/SAC fees in with the rent. Also disc ssed parking and the fact that adjacent
property owners seemed to be willing to dis uss vvorking with them. Johnson stated the
proposed parking would continue all the wa down the block eventually. Johnson added
that he had spoken with Paulsen. Hammond & Coppey . but stated it is too early to be
talking with them at this stage. Johnson als stated that if they could get free land from
the City and be allovved to be short on parki g. they could do the project.
Johnson stated they needed $45.000 to assis them in building public parking, which
could also be used as available cross parkin( in that area. Also. Koropchak suggested
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HRA Minutes - 06/06/01
that once the developer is firmed up, the ity may chose to lend the money for
acquisition of the Amoco site as an interi loan, with the developer stating they would
pay this loan back at closing. Johnson sta ed they would try to secure financing and
leasing in the next 60 days if the HRA ga e the go-ahead. At that time they would look
into demolition of the Amoco site.
In further discussing the parking issue, Da Frie asked about an alternate plan for parking
if one the current owners were not willing 0 give an easement to them. Johnson stated
they felt confident that they could find the arking.
Koropchak provided the members with a c py of the previous proforma, noting the only
change is that they are putting two units 0 er the carriage house and the purchase prices
have increased. Also increased amount of IF. Koropchak pointed out to HRA that
based off the market values that were prov'ded by Rut I, unlike what their numbers show,
projected TIF - net present value is $127,0 0, a difference of$14,500 annually, their
numbers state $19,300. Koropchak questi ned the proposed rate of return at 18+%.
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Koropchak read the motion from April noti g the difference in the dollar amounts. The
additional amount is the $45,000 for parking. SAC/WAC will be assessed by the city.
Brian Stumpf stated that he was not comfo able with up-fronting the $45,000 for the
parking development. Koropchak noted th parking dollars are from TIF District No. 1-
22 excess fund.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY BOB
MURRA Y TO EXTEND THE EFFECTIV DA TE FROM JUNE 6, 2001 TO AUGUST
1,2001, WITHIN THE PRELIMINARY D VELOPMENT AGREEMENT BETWEEN
MASTER'S FIFTH A VENUE, INC. AND UTHORIZ1NG THE HRA ATTORNEY
TO DRAFT A CONTRACT FOR PRIV A T REDEVELOPMENT. THE PAY -AS-
YOU GO TIF ASSISTANCE IN THE AM UNT OF THE LESSER OF A) THE COST
TO ACQUIRE THE AMOCO SITE AND EMOLITION OF THE STRUCTURE, B)
NOT TO EXCEED $185,000, OR C) THE MOUNT OF THE "A V AILABLE TAX
INCREMENT" GENERATED FROM TH PROJECT FOR THE DURATION OF THE
LIFE OF THE DISTRICT. IN ADDITION, THE HRA APPROVED UP TO $45,000
FOR PARKING DEVELOPMENT ON ADJACENT PARCELS FROM SURPLUS
FUNDS WITHIN TIF DISTRICT NO. 1-22. Motion carried unanimously.
6. Consideration of an u date of the ro
approve necessarv action to proceed.
Koropchak also provided updated cash no,v rojections regarding TIF Dist 1-22. The
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HRA Minutes - 06/06/01
TIF District No. 1-22 excess fund is $690, 00 NPV including Front St. acquisition cost.
Koropchak advised that via Ken Helvey, r location advisor, and O'Connor's attorney,
John Peterson, it appears O'Connor does ot accept the HRA offer of$145,383 which
includes the business relocation benefits. rior to the added relocation benefits, the
HRA's offer was $130,352. Mr. Helvey i formed me this a.m., Mr. O'Connor is looking
for $165,000 to $175,000. With the City ouncil's position to not condemn property, the
Mr. Helvey has had no leveraging power fi r negotiation. From Mr. Helvey's
prospective, to do a 90-day quick take at tl is point may not be worth it when considering
time and cost. Mayor Belsaas was invited 0 the meeting with Mark Ruff on Monday,
June 4, and HRA Chair and myself will ag in address condemnation with the Mayor. If
the HRA were to adopt a resolution author'zing condemnation at June HRA meeting, the
90-day quick take begins the day the petiti n is filed at the County. This brings us into
September. In the meantime, the HRA has lost tax increment revenue due to reduction of
classification rates; with no demolition by une 30, 2001, the parcels will be reinstated at
a higher market value (tax capacity) causin 1 less tax increment generated from the
project; and a one-year delay in the project, again reduces the amount tax increment
collected. The Preliminary Contract with ans Hagen is effective through October 2001.
A letter dated June 5, 2001 from Attorney eterson noting O'Connor's firm offer of
$169,500 was submitted to the commission rs. Koropchak did ask several of the CC
members who were not in favor of condem ation, but thought the HRA could go back to
O'Connor with half of the difference in the ffer from the HRA & the counter otfer from
O'Connor. Brian did advise that he would e in favor of condemnation versus paying
that much extra to O'Connor as the feeling s that O'Connor is trying to gain from the
city. Also noted that if condemnation did n t occur on this property, this could set
precedence for Block 52 as well.
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They also discussed the possibility that the ity would end up with O'Connor's attorney's
fees as well and they were aware of this.
A MOTION WAS MADE BY BRAD BAR ER AND SECONDED BY DARRIN
LAHR TO ADOPT A RESOLUTION AUT ORIZlNG 90-DA Y QUICK TAKE
CONDEMNA nON FOR THE PROPERT LOCATED AT 218 FRONT STREET,
SUBJECT TO COUNCIL'S BLESSING. otion calTied unanimously. A motion to
adopt a resolution authorizing 90-day quick ake condemnation for the property located at
218 Front Street. subject to the approval oft e City Council. BB/DL. Unanimous.
There was further discussion by Darrin Lahr asking Koropchak to advise Mr. O'Connor
and his attorney of the HRA's decision. So oted.
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HRA Minutes - 06/06/01
Koropchak also updated the HRA regardi g the Schlief house and plans to close on the
contract for deed the week of June 18, 200 I.
Koropchak reviewed the action taken by t e HRA at their April meeting in that the
commissioners approved a motion to dem lish the Bostic, O'Connor, Schlief, and HRA
structures. The Public Works to move theSchlief garage and the Fire Department
requesting use a of structure(s) for purpos of a "test burn". At the BRA meeting in May
and upon the request and interest of Rich line to acquire and move the O'Connor house,
a motion was made to table any action as as premature given the BRA did not own the
property and noting the HRA requirement 0 hold a public hearing upon the sale of
property. Koropchak did check with legal ounsel relative to the need for a public
hearing. Since it is the structure only and 1 ot the property, and given a city employee is
interested as well as the seller and perhaps thers. the recommendation by legal counsel is
for the HRA to solicit bids and award it to he highest bidder. Again. the Building
Official determined the parcels met the sub tandard test for establishment of a
redevelopment district and the intent was t remove substandard structures not move
substandard structures. A bidding process ould not guarantee the whereabouts of the
new site location (city or township) or who the highest bidder. No action required as
authorized condemnation.
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Koropchak went on to state that currently t e HRA owns the Bostic property with a
possession date of June 15, as well as the R ed garage. In conversation with Fire Chief
Scott Douglas, it takes the Fire Department minimum of two weeks to prepare and .tile
the necessary permits for a "test burn". Therefore, Koropchak asked the HRA to make a
motion to authorize either demolition or for the Fire Department to test burn.
A MOTION WAS MADE BY BRAD BAR .JER AND SECONDED BY DARRIN
LAI-IR TO AUTHORIZE THE FIRE DEP RTMENT TO EXERCISE THE "TEST
BURN" ON THE BOSTIC AND REED PR PERTIES, AT NO LIABILITY TO THE
CITY/HRA, BETWEEN JUNE 18 AND JU E 29,2001, WITH
DEMOLITION/CLEANUP THEREAFTE ; ADD SCHLIEF PROPERTY TO LIST IF
CLOSING DATE COINCIDES. Motion ca ied unanimously.
Koropchak advised that Rod Dragsten was a ked to complete an appraisal of the raw land
of the Carlson property. She also advised t at Carlson had left a voice mail regarding
Imvn mowing as they no longer have garage 0 store mower. and she was advised that it
was her responsibility as stated in the House Lease.
Regarding the Front Street public improvem nts. Koropchak ad'l/ised that vvithout an
executed Purchase Agreement with O'Conn r. the Council has not been requested to
authorize plans and specs tor replacement of he water and sewer lines and Front Street.
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HRA Agenda - 6/6/0 I
With the proposed classification rate redu tions, Koropchak contacted our financial
consultants for advise relative to the need 0 issue a bond for the properties acquired by
the HRA along Front Street. At one time, the proposed legislation read to qualify for a
state grant to recover for any proposed tax increment deficiency caused by the reduction
in class rates, bonds needed to be issued b June 2. The HRA has invested about
$500,000 of up-front dollars along Front S reet without the acquisition of O'Connor, it
was the intent to issue a bond about compl tion of acquisition in order to repay the City
loans. As legislation has not a addressed t e issue, the Attorney advised a wait and see
approach.
7.
Consideration of an u date of the
necessary action to proceed.
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Chair Frie advised that they have met, or h d conversations with all of the property
owners, except for Kathy Froslie, but inclu ing Pat Sawatzke. He did note that there was
one property owner not interested in reloca ing.
Additionally, Frie and Koropchak met twic with proposed owner Pat O'Donnell and
builder Mike Cyr. On Monday, June 4, M k Ruff, Frie, Cyr, and Koropchak met to
determine site option one or two and gather information for preparation of a proforma.
Also noted was that the attorneys working ith Mike Cyr may want to do a smaller
project on Walnut Street. They advised tha Springborg, Johnson, Poier and Heaton were
all interested, although Heaton was interest d in something in the future, and not right at
this time.
Mike Cyr noted that the project on River St eet that he had previously proposed would
still work and is in compliance with the do ntown redevelopment plan and it is a mix of
commercial/residential. Working as well 0 Walnut Street on a project that the
attorney's currently own without the housin
Koropchak advised that Mark Ruff s recom endation was to move this onto the City
Council at this time.
Cyr stated that his project will work regardless of the Froslie building being there or not,
although the City planner's sketch showed t e proposed project with a smaller building.
Cyr stated that if the River Street site is not vailable, his clients would move it to the
Walnut Street site.
Cyr also noted another group of bui lding ow ers who may work with the project on the
Broadv,iay and Pine corner \vhere the city COl ncil indicated they would rather see a
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HRA Agenda - 6/6/01
project started. Cyr also noted that one of the building owners had a nonconforming use
and this could be used as a bargaining tool as well.
The members did discuss the possibility 0 - acquiring Steve Johnson's property now. It
was also stated that the attorney's should e advised of the HRA' s thoughts. Cyr did also
state that it really is the unwillingness oft e city council to sell or condemn that they are
unable to go forward with the River St. pI' ject. HRA members recommended to advise
Cyr's clients that the city would be unable to acquire the properties in that time frame to
meet the September deadline.
Dan Frie stated he would be willing to res arch further the properties that are willing to
sell on Block 52. The HRA would focus t eir efforts on the willing sellers.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
CONTINUE RESEARCH THE PROPER" IES THAT ARE WILLING SELLERS.
JOHNSON AND SPRINGBORG, AND T IE HRA TO FOCUS THEIR EFFORTS ON
THE WILLING SELLERS ON BLOCK 5 . Motion carried unanimously.
8.
Consideration of authorizin J a ment of monthl HRA bills.
A MOTION WAS MADE BY BOB MUR Y AND SECONDED BY DARRIN LAHR
TO AUTHORIZE PAYMENT OF THE M NTHL Y HRA BILLS. Motion carried
unanimousl y.
St. Henry's - In checking with John Komarek, it appears there is nothing new to
report on the proposal to redevelop his site.
Scattered Housing Grant - In talkin with Sherri Harris, the next round of MHF A
applications are due July 13,2001. It is the intent to re-submit the Monticello
application for the proposed afforda Ie housing project along 6th and Minnesota.
The City Council did approve the p rchase of the KaufImann property (raw land)
at $45,000 or $4.13 per square foot. This parcel within the targeted project area.
9.
Consideration of Executive Director's Re
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Small Machine Shop - Koropchak \ orking to find a small one acre lot for
construction of a 10,000 sq ft buildi g. lake Tool not interested in selling extra
lot. Winkelman construction lot will build to suit, and checking with PfefTer
relative to PUD or subdivision to in lude the potential relocation ofSpringborg.
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Twin City Die Castings Company - RA members received an invitation to join
the Commissioner of Trade and Eco omic Development on a tour of the facility.
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HRA Agenda - 6/6/01
The State invested a $500,000 gra t and sold industrial revenue bonds for this
project.
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Wage Levels - Dan Frie submitted an article from the St. Cloud paper relative to
wage levels.
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Industrial Land Purchase - Council elected to table any action to purchase the
Chadwick property at this time. A you recall, the Council adopted a resolution in
June 1999 to actively pursue acqui ition of Chadwick land. The resolution
drafted by the HRA, EDA, and 10 . encouraged the Council to purchase the land
at a low price prior to inflation. T e HRA and City each committed $150,000 for
a total of $300,000 toward industr alland development and the HRA's plan was
to commit the remaining tax incre ent ($400,000 NPV) generated from District
No. 1-5 towards the industrial land development. The combination of these
dollars would nearly have covered he gap of the initial swap offer. Both, the City
Comprehensive Plan and the MOA Plan have the Chadwick parcel identified as
industrial use.
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Production Stamping - Koropchak et with Les Wurm and presented him with a
uses and sources statement. He w ted her to check out the State and Initiative
funding sources. Looking at a 40, 00 sq ft building on 4 acres. Have talked with
Pfeffer. Process seems to be very efficient, Koropchak noted she, Herbst, Mary
Barger, and Ron Hoglund had visit d them. May be a 2002 project.
10. Committee Reports: Marketing, Brad Barg r. Nothing new to report.
Koropchak noted she wanted to call a mee ing for the Marketing Committee sometime in
the next 2 weeks.
11. Other Business. None
12. Adiournment
A MOTION WAS MADE BY DARRIN L HR AND SECONDED BY BRAD
BARGER TO ADJOURN THE MEETIN AT 8:45 PM. Motion carried.
HRA Chair
Recorder
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HRA Agenda - 7/11/01
5.
Consideration of an u date on the im a t to TIF relative to the Le islative Tax Bill
and a recommendation the Cit Council consider issuin a Tern ora Bond.
A. Reference and background:
Mark Ruffwill update the lIRA on the iml act to TlF relative to the tax hill passed by the
Legislators.
First: Attached arc the reduction in prope y classification rates.
Second: Future City tax rate unknown.
Third: lIACA Penalty deleted after 2003.
Fourth: Tax rate unfrozen.
Fifth: Pooling restrictions deleted.
Sixth: Must sell a Bond hy August 1,2001 n order to qualify for TIF Grant.
On July 3, 2001, Ruff, f3uhul, Wolfsteller, nd Koropehak had an conference call relative
to whether the City should sale a bond by ugust 1,200 I, to qualily for a TIF Grant. In
order to quality for the grant, the HRA wou d need to expend all their pooling revenue
(meaning tax increment and HRA General und dollars). "A city or development
authority will be required first to implement "local solutions" before they will be
permitted to apply for the 'state solution'." Outstanding deht includes shortfall on
existing bonds and notes hetween City andRA, but docs not include internal HRA
loans. Rick/Koropchak are researching the emaining balance of the outstanding debt. In
addition. future revenues li'Oll1 tax incremen may be less. In the case of pay-as-you-go
methods, the developer pays less taxes there ore is reimburscd less tax incrcment. The
qucstion is whether there is a projected shor fall on existing debt? Within the Midwest
District Contract, the $1 S 1,000 note betwee the City/I IRA is guaranteed by the
developer to pay the shortfall; however, this becomes an enforcement issue for the lIRA
Is therc a hcnefit to the City/lIRA to issue a ond in order to qualily for the grant?
Rcmember, the HRA committed $150,000 fi l' industrial development and the intent was
to use the tax increment from TIF District N . 1-5 lor industrial development.
Commitments or intents do not qualiJy as ou standing debt.
Relative to the Downtown Tlf District, the I st TIF cash flow projections indicated a
district surplus after the Front Street expendi ures. However, these numbers may change.
During the conference call, Attorney Bubul ointed a bond sold for the notes between the
city/HRA for acquisition of properties along ~ront Street, for future proposed
expenditures within the district such as the a quisition of the Johnson and Springborg
building on Bloek 52 or for future expenditu s outside the district would give the I IRA
an additional three years from the date of the bond sell to expend those bonded dollars
rather than the 5-year rule date of June 30, 20 2. This appears to make sense to
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Wolfsteller and Koropchak.
HRA A~enda - 7/11/01
Although the City Council docs not need a recommendation from the liRA to issue a
bond, Council recognizes the HRA direct i lvolvement with T1F and may appreciate the
request or input from the HRA.
B. Alternative Action:
I. A motion recommending the City ouncil consider selling a Temporary Bond to
qualify lor TIF Grant.
2. A motion recommending the City ouncil consider selling a Temporary Bond for
TIP District No. 1-22.
3. A motion of no request for the City 'ouncil.
4. A motion to table any action.
C. Recommendation:
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After preliminary review orthe TIF Fund a d I IRA General Fund, it appears the lIRA
would not gain anything by selling a tempo ary bond for the purpose of qualifying for a
TIF grant. The district most al1ected is the etcalf & Larson District which has been on
the border of not cash-Jlowing. At one tim, the consultant recommended the HRA
negotiate with the developer relative to the hortfall. In a worst case scenario, the
Construction 5 District could pay-off the M L principal balance due today. The other
question, is the HRA willing to enforce the:ontract with Midwest Graphics (Right
Choice Fullillment). Recommendation is Iternative No.2.
D. Supportinl! Data:
Class Rates..
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Class Rates under the Omr ibus Tax Bill
Proposed
Class Rates
Current I Local State
Property Classification Law Tax Tax
Residential Homestead:
Up to $76,000 1.0% 1.0%
$76.000 - $500,000 1.65% 1.0%
Over $500,000 1.65% 1.25%
Residential Non.homestead;
Single unit:
Up to $76,000 1.2% 1.0%
$76,000 - $500,000 1.65% 1.0%
Over $500,000 1.65% 1.25%
2-3 unit and undeveloped land 1.65% 1.5% 1
Apartments;
Regular 2.4% 1.8% 2
Small city 2.15% 1.8% 2
. Low-income 1.0% 0.9% ~
Commercial.lndustrial.Public Utility;
Up to $150,000 2.4% 1.5% 1.5%
Over $150,000 3.4% 2.0% 2.0%
Electric generation machinery 3.4% 2.0% nla
Seasonal Recreational Residential:
Up to $76,000 1.2% 1.0% · 0.4%
$76,000 - $500,000 1.65% 1.0% · 1.0%
Over $500.000 1.65% 1.25% · 1.25%
, Rate red uced to 1.25 % in pay 2003 and then al'ler.
2 Rate reduced to 1.5% in pay 2003 and 1.25% in pay 2004 and thereafter.
, Rate increased to 1.0% in pay 2003, classific !tion abolished in pay 2004.
· Exempt from referendum market value tax.
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6.
HRA. Agenda - 7/11/0 I
Consideration to re-assess and rc-affir the level of 1'1 F assistance for the ro osed
Housin District associated with the M FA Monticello a Iication.
A. Reference and backe:round:
As you recall, the Monticello application 1 r Minnesota Housing Finance Agency funds
was not awarded in the first-round of applications in April 200 I. With excess
applications submitted, the metro area rec ived the greater portion of the dollars.
According to Sheri Harris of the Central innesota Housing Partnership, Inc., the
Monticello application will be re-submitte in the second-round of applications due July
13,2001. The l-IRA is asked to re-assess t e level ofTIF assistance f{)r the proposed
I lousing District.
The project consists of 10 units of zero lot-line single residential dwellings located along
Minnesota Street betwecn 5th and 6th Street', On March 7, 2001, the HRA commissioners
approved the following motion: "To appr vc the preliminary concept for use ofTIF in
the amount of $125,000 NPV to assist wit a scattered housing project and to waive the
$5,000 application fee. The selling pricc p r unit was sct at $131,000, an increasc from
the $120,500, the ditTerence to be used as ap financing to recover any '1'1 F shortfalL to
finance any acquisition costs over-runs, an lor to reimburse city fees. The deposit fee
was waived because the CMHP is a non-pr fit state agency. The financc method is up~
front and the security is the homes are consructed. The dwellings to be owner-occupied
(Qualified Housing District) and income re trictions apply to the original occupants
only."
PLEASE note the TIF cash-flow numbers I' n by Ehlers in March. Based on a market
value per unit of $95,000 and the 1 % and I 65% class rates, the tax increment (NPV)
over the 25 years was $89,202 for a gap 01'$35,798. The HRA needs to re-assess and re-
aHirm the level ofTIF assistance based on 0 inflation factor was used on the market
value, the now reduced e1ass ratc of 1%, th proposed local rate is unknown, and the
finance method is up-front. Perhaps, more ill be known on Wednesday night as to the
impact on TIF rcIative to the class rate redu tions.
B. Alternative Actions:
1. A motion to re-atIirm the HRA moti n of March 7, 2001.
2.
A motion to amend the level ofTIF ssistance to $
NPV.
3. A motion to rescind the use ofTIF.
.
4.
A motion to table any action.
C. Recommendation:
HRA Agenda - 7/11/01
Recommendation is alternative no. 1 or 2. If alternative no. 1 is chosen be conscious of
the potential gap. What is the source of fi nding for the up-front finance method?
D. Supporting Data.
TI F Cash-flows of March 2001 .
.
.
2
.
.
.
MAR. 2.2001
OIIll2IOl
~.nd~..e.sllne.
4:34PM
EHLERS & ASSCU:IATES
NO. 9632-P, 2
CITY OF
l.U". CASH FLO
ASSUMPTIONS
Inl...... R.la
T... E.le~8Ion RIlla,
InftBllon ReM:
7.000%
1.211176 Pay tlO
0.??oo%
BASE V ALVEI FORMATION
P",,-.laQtl TotIol..,., Pay 2001
._-_!I.~ .__. . alPgrw, ....--'!"!.!!!!--}(P!1.i8
165-01C/.OOllll3O 100.00% .700 33.700
.16~.o1~ -:-=_=__ ..' loo.qo~=-~: . .800 ___i1iL'l99.
156:0 1 0-DIl9059.. .____.,00.00%, ___. ,100 _.._.~,'OCI_.
,'55-0'~L... .--L00Q(l% Z,'O!l. 1~,.1~..
'S~1o.oollll8' 100.00% 1.00 .1,100
.:rOIll! ... ..---- . . ~=_=_=:,": 1 ..1!Xl !~.!.22....-.~'.
T;:Il\
.. Cll(l.!'.;i\Y_
SSll E"'_,
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- --- - &28 'C-;';;;;--
. ---"'262 ~ii;';;;-
"-'-Ji3' Eo~l;'-'
::. .~_ ~~37 u~'conV.,~n
VI"' ofT_ lnct8m.nl Oillricl:
Type of lRvll'opmen~
N........' of UnI18
lNFORMA TION
Hou&ing
Owner Oeeu,:>iad HO~8Ing
10
EI~m..."d MIlrlceI Vajo.lll Dr N_ p"'J8Ct;
CIllU R.t. on flrIl $76,000 '" ....rlIel Vaj""
Ci6U RalII hlario:llI vak... ,. S78.OOO
e.lIm....lT8>; Ciop&Qly;
!sdmlll811 Tue8:
Assessor's Marlllll VllIueI...it
TU16l1ill~
iSO.OOO
PayOoll
1.1:10%
185%
, D, 735
1!,8157
595.000.00
$1,3e6.70
PlIY 04
Aaeuma. 5 hoIl5.. oompJ_ ClI'15tr\1Cl/on In 2001"nd rome It 1112002
P"l/O 1 .fhou.iI'lIlJl~O~O'.1~3
MAR. 2,2001
4:34PM
EHLERS & ASSOCIATES
NO. 9632
P. 3
=0,
. em OF M NTICELLO. MINNESOTA
-----. TAX INCREME CASU FLOW
. .p,;;j;,;;-----c..,red --S;;";hArwlual I , . ... -----
I PERIOD BEGIHNIHC B8&l1 HIlA Somi.Am1l81 Local Y....rl
T... Tall r.... Cross Ta.: '" H.' T... . Mal"" at I Of PERIOD ENDING
...!tL-Mil', Yr. ~?IY---~~____.J;lll?J~.l~ . h:tem.,l Q,O'lI I~----_--. 5.00% I~'!"t. Yrs, MlI1. Yr
0.0 08-01 :2001 3,137 3. 137 Cl 0 0 0 0.0 0.50 D.<l-01 2002
0.$0 02.(l1 2002 ~,1~7 3.137 0 0 0 0 0.0 1.00 08.01 ~
100 08.(1, 2002 0 0 0 0.0 1..50 02-01 2003
1.50 02.01 ;wD3 3.137 5,366 2,231 1...., 0 1.29~ 72 0.5 2,00 OB,,(ll 2003
I 200 Oll.o1 2003 1,441 0 1.283 72 1.0 2.50 02.(1, 20D.4
250 DUll 2DO.Il 3,137 10.'/'3$ 7.5iB . .9OIl 0 .......06 245 1.5 3.00 08001 200<1
, 300 08-01 2004 .,&06 Q .,.lIS 245 2.0 3.50 02-01 2005
I 3.50 02-01 2005 3.137 11:1.736 7.598 .,806 0 .,.05 2<15 2.5 400 08-01 2005
..00 08-01 2005 ..DOll Q ..4105 2451 3.0 "ISO 02-D1 2006
..SO 02-01 :2008 3,137 '0.735 7,M ., ilOll 0 4,4O/i 2'" ! :1.6 5.00 08.01 2006
5.00 08..01 200i .,808 0 4.<105 245 4.0 5.50 02-01 2007
6.50 02.(1, 2007 3,'37 10, 735 7,5911 4.908 0 .,.05 2451 4.5 6.00 ~1 2007
(i.CO 0&-01 2C07 '1.908 0 ..~ 2o45! 5,0 6.50 02.(11 2008
UO 02.01 2DOll 3.137 ,O,7J5 7,S9ll 4, !/Os 0 4.405 2'5 5$ 7.00 os.o, 2008
7.00 0~1 2008 ..9Oe 0 .,.OS 2.5 s,O 7.50 02-01 2009
7.50 02'()1 2009 3,'37 10,735 7,588 ".1lO6 0 ".405 245 6.5 8.00 06-01 2009
6.00 08-0, 200e .,9OIl 0 "..05 245 7.0 9.SO 02-0' 2010
9.50 02.01 20'0 3,137 10,73$ 7,5iB <l.fIDI.l Q 4,4OS 245 75 1i.00 08-01 20'0
1100 OB.ol 2010 <l.QOO 0 .,405 245 BO Uo 02-<l' 2011
9.50 02..0, 2011 3.137 10,735 7,596 4.9OIl D 4.405 245 6.5 10 00 0&01 20"
10.00 OIl.ol 201' 4,9OIl 0 4,.05 2.45 ~,O 10 SO 0.-0' 2012
10.50 02-<l1 2012 3,'37 10,735 7,5$11 .....09 0 ....os 2.45 9.5 ,,00 Dlt..ol 201~
11.00 08.(l1 2012 4,soe 0 "I."IDS 2'l5 10.0 lHIO 02-<l1 2013
11.50 ON" 2013 3,137 10,735 7,5&8 4,_ 0 4,"05 2"15: 10.5 12.00 08.()1 20'3
12,00 oa..ol ~0'3 4.900 0 .,405 2451 ".0 '2.60 02-01 ;10'4
12.50 02-01 2014 3,137 10,735 7,5ge "I,90S 0 "I."I1l.li 2"15 ' ".5 1::1.00 OB-<l1 2014
13.00 Oll-Ql 201"1 <l.9OB Q 4,"101> 245, 12,0 13.SO 0:2-01 20,5
13.SO 02-01 2015 3,137 10, 735 7,SIlI! "',908 0 4.<105 245 12,!i 14.00 08..01 201S
'4,00 oe.o, 2016 ".llO6 0 ....405 2<15 13,0 ,.,50 02-01 2016
1450 02-01 2016 3.,37 10,735 7,S9ll ...iOll 0 ",405 245 13,5 15.00 08-01 2016
1500 08-01 20'6 "90S 0 4,405 245 ,.0 15.SO 02-<l1 2017
. 15,50 02.01 2017 3.,37 10.735 7.596 ".1iOIl 0 ","OS 245 14,5 lS.00 08-01 2017
115.00 08-01 2017 4.SlOi 0 4,406 2451 150 16.50 02-01 2018
18.50 Q2.01 2018 3.137 10.735 7,598 "',IOEI 0 .,4oS 245 1S5 1700 OBoUl 20'8
17.00 08-01 :/,019 4,IiOIl D "',"OS 245 160 1750 02-01 2019
17,50 02-01 2019 3,137 10,735 7,596 ..908 0 .,"'OS 245 165 le,OO DS.ul 2019
18,00 QlI.Ol 2019 4,iDe 0 "1.405 246 170 1650 02-ll1 2020
i8,50 02-01 2020 3,137 10,735 7,596 .,a 0 4.405 245 17.5 1900 06-0, 2020
19,00 0i..01 2020 ..lIOIl 0 4.405 2-45 18.0 1950 02-01 2021
1950 02..01 2021 3,137 10,735 ?,5911 "',5OS 0 4,"'OS 2...5 lB 5 20,00 08-01 2021
2000 oe.o, 2021 ..908 0 4..05 245 ,9.0 20.50 02..0, 2022
2050 02-01 2022 3,137 10.735 7.5iB ..908 0 4,.1.05 2<15 19.5 21.00 06-0, 2022
21.00 011..01 2022 .,906 0 "I....OS 24$ 20.0 21.50 02-<l1 2023
21,50 02.01 2023 3,137 10,735 ?sse "I.90e 0 "I....0S 241> 20.S 22.00 08.01 2023
22.00 08-01 2023 4,Q08 0 4.405 245 [ 2'.0 22.50 02-01 202.
22.50 02.()1 202'" 3,137 10,735 7.598 4,1106 a 4,4OS 245. 21.5 23.00 oe-o, 2024
23.00 08-01 2024 ",908 0 "1,"105 246' 22.0 23.50 02-1>1 2025
i:': 02.(), 2025 3.137 10,735 7,598 .,808 0 .,.OS l!.I.S' 22 5 24.00 Oa-ol 2025
OB-O, 2025 4,OOB 0 4,405 2451 23 0 24.50 DUll me
2".50 02.01 2026 3.137 10,ns 7,598 ",1106 0 4,40.5 2451 235 25.00 08-01 2026
25.00 00.01 2Q2tl 4,90B 0 <1.405 2451 24 0 25.50 02.01 2027 1
25.50 02-01 2027 a.137 10,735 7.589 .,ellS Q 4,-'105 24~1 2"1 5 26,00 08.01 2027 ,
2600 011.01 2027 ..908 0 "..1.05 2451 25 0 26.50 02-<l1 .2026
28.50 02..01 2028 3,137 10,736 7.6ge 4,908 ( 03) 0 ..405 2.5, .255 27.00 08..01 2028
27,00 08.(11 .028 ~.!...-____~ ._3) 0 .,40S 2.1.5' 260 27.50 02..0, 20.29
._____.__---T~.I~. ---,---_~;!L.__(~.. 7) 0 222,B\6 12,4'31
. --.-.--._.___.____ _u_ _ _ ~e..~!.v:,!u2:!..._.__ ._..__.___J2:~~_ __~1P,~~71 ,.. 0 89..202 ,
~IIIjKtIoM ANI ~ltl ....~ IJpeln .xpacIA,:II AtIlt y..r or ln~l, I'ftIWII(al WIAuM, ... .....j ete. ., ~"'nl" r.EtNYld ... 2bOi. II,. at the mlU)c:.l ""'I t. rMucld b)' OM ,..,..
.
Ehl"" onG Anooi_. In.
PI;e.2 .lhwIing 030201 12~
.
.
.
liRA Agenda - 7/11/01
7.
t for use of TIF relative to the
7 and 8 Block 36.
A. Reference and back!:!:round:
Attached is a copy of a letter addressed to at 0' Donnell relative to the discussion of the
BRA in June for Block 52. Given the situ tion of Block 52 and the interest of the
developers to redevelop their property locaed in the 200 block of Walnut Street,
Contractor Mike Cyr will present a redevelopment proposal for preliminary approval for
the use ofT!F. Assuming the HRA gives reliminary concept approval, the City Council
will hear the proposal on July 23, 2001. A this point, the developers have not executed a
Preliminary Development Agreement nor aid the $5,000 application fee, therefore, no
TIF cash-flows have been run by Ehlers. he target date for commencement of
redevelopment is September.
The two parcels for redevelopment are:
155-010-036061
155-010-036041
Sly 40 ft Lots 6 & 7, BLK 36 & sly 40 ft of Ely 17 ft of Lot 8.
No 60 ft Lots 4 & 5, BLK 36.
It is my understanding the project will cons'st of a two-story office building consisting of
4,500 sq ft per floor with basement. Ajoin parking plan with property owners of the
northerly side of Block 36 is underway. R member, the HRA authorized up to $45,000
for parking development behind the Palmer Hamond, and Kopy parcels associated with
the Amoco redevelopment project. These arking spaces then become "shared" parking
spaces. The remaining parcels for parking evelopment under the O'Donnell project are
owned by the City, I lamond, and Greg Smi h.
Some questions lor the HRA:
Are the existing buildings going to be sold, moved or demolished?
Need to see a profcmna. "But for" test. W 11 the project move forward without TIF?
Are additional parking spaces necessary for redevelopment of this site? Is there a public
benefit?
General uses ofTIF for redevelopment: acq isition, demolition/removal, relocation costs,
site or public improvements.
B. Alternative Action:
]. A motion to approve the preliminary conce t for use ofTIF relative to the redevelopment
of a portion of Lots 4, 5, 6, 7 & 8, Block 36 and for additional parking development.
.
2.
^ motion to deny approval of the p eliminary concept for use of TIF relative to
the redevelopment of a portion Blo k 36 and for additional parking development.
3. A motion to table any action.
C. Recommendation:
HRA Agenda - 7/11/01
Without the Building Department calculati g the number of parking spaces necessary, it
may be premature to address the use of TIt-< for additional parking.
Assuming the proposed project meets the 0 ~ective of a redevelopment district and the
"but lor" test, the recommendation is alter ative no. 1.
D, SUDllortine Data:
Letter from MLC Building and Remodelin
.
.
2
June 13 2001
.-
MONTICELLO
Mr. Pat O'Donnell
Smith and Associates
207 Walnut Street
POBox 668
Monticello, MN 55362
Dear Pat:
On behalf ofthe Monticello Housing and Redevelo ment Authority (BRA), I want to express our
appreciation of your time and interest to explore th potential of redeveloping a portion of Block
52.
.
After the joint meeting of the HRAlCouncil, BRA hair Frie and myself met or spoke with all
property owners of Block 52 with the exception of athy Froslie and including Pat Sawatzke to
discuss their short and long term plans. Based on e conversation with property owners and the
direction given by Council, the commissioners agre d to continue researching the potential to
acquire parcels from the willing sellers.
Via Mike Cyr, the lIRA was informed of your firm' preference: 1) To redevelop along River
and Walnut Street, or 2) To redevelop at your exist' g site along Walnut Street. Given your time
frame and need for space and the decision of the the commissioners were encouraged to
hear of your willingness to redevelop and expand 0 your existing site. Your business is
important to the City of Monticello. Again, our ap reciation.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORI
IN AND FOR THE CITY OF MONTICELLO, M
C) ~ \~ eFl" ~-.SL
SOTA
Ollie Koropchak
Executive Director
.
c: File
Monticello City HalI, 505 Walnut Street, Suite I, MonticelIo, M 55362-8831. (763) 295-27] ] . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, N 55362. (763) 295-3170. Fax: (763) 271-3272
.
M C Building & Remodeling
Design - Construction - Project Management
Residential - Commercial
MN Lie. # 20054618
Ph: 76 .295.0717 Fax: 763.295.3227 Cell: 612.366.0717
722 West 5th Street
Monticello, Minnesota 55362
5 July 2001
HRA Board
Monticello City Council
505 Walnut Street South
Monticello, Minnesota, 55362
Re: 1. Request for Concept Approval for Redev lopment and Construction
2. Request for Funding Approval for Redev lopment and Construction
3. Request for Funding Approval for Share Parking Development - Block 36
Projects:
1. Office Building for
Investor Group - Developer
207 Walnut Street South
2. Shared Parking Development - BI ck 36
Interior of Block 36
.
Greetings,
Project 1.
It is the intention of MLC Building & Remodeling to Ian and construct a building for clients at
207 Walnut Street South. The clients will be a gro p of investors that will own the building
and lease it to Smith, Paulson, O'Donnell & Associ tes and other service and professional
businesses. For the purposes of identification in th se documents, MLC will hereafter be
referred to as the builder and the investor group wil hereafter be referred to as the developer.
The proposed building will be two stories in height 'th a full basement beneath. Each level
will be approximately 4500 square feet in area. Th two levels above ground level will consist
of office space. The basement level will be used fo mechanical equipment for the building
and for storage. There will be an elevator in the bui ding. The design of the building will
follow the guidelines of "The Bridge", the redevelop ent study commissioned by the HRA, and
the comprehensive plan of the City of Monticello.
In order to construct this facility, two smaller buildin s currently located at 207 and 209
. Walnut will be removed or relocated. These buildin s are residential in nature and do not
conform to current downtown redevelopment standa ds. One building is currently occupied by
"
1 of 3
.smith, Paulson, O'Donnell & Associates as their I offices. The second building is a
residence that is currently rented to the occupants The occupants of the second building are
planning to vacate because they are moving into a new home.
Due to the extra costs involved in redeveloping a roperty, the developer is seeking T.I.F.
assistance to cover eligible costs. Those costs in lude but may not be limited to:
Building acquisition and demolition or remo al
Utility right of way relocation
Cost of temporarY quarters for the current 0 cupants of one of the existing buildings
Cost of moving occupants to temporary qua ers
Perimeter fencing of construction site
Excavation and removal of basements and ther below grade obstacles to construction
Relocation I upgrading of hookups to City 0 Monticello services
Curb and sidewalk reconstruction adjacent t Walnut Street
Patch and repair work on Walnut Street righ of way
Curb, sidewalk, concrete, paving and lands ping construction in shared parking areas
Construction financing and long term financing costs
Attached to this document is an estimated cost of t e work (Exhibit A) and a proforma financial
statement (Exhibit B). Also attached is a prelimina site plan of Block 36 (Exhibit C) and an
. architects rendering of the proposed new building (Exhibit D).
Project 2:
To address parking availability on Block 36, MLC P oposes to develop shared parking areas
within the interior of Block 36. The objective is to btain cross property easements,
construction easements and a long-term maintena ce agreement amongst the affected
property owners. These agreements would allow demolition, grading, paving and landscaping
of the affected properties to allow construction of p rking that will be shared by all of the
participating property owners.
To achieve this objective, MLC has discussed the i sue with all of the existing and potential
property owners on the north half of Block 36. Atta hed to this document is a letter of intent
drafted by Smith, Paulson, O'Donnell & Associates and signed by all of the affected property
owners. One of the property owners, John Koppy, wns a storage building that is situated
next to the back property line of his lot. This buildi g will obstruct Project 2 if not removed.
Mr. Koppy has valued this building at $50,000.00. his amount will compensate him for
constructing a new building of similar size, loss of r ntal income from a tenant that currently
leases part of the building, and the costs of relocati g the property that is currently stored in
the building. MLC has an option to purchase and r move the building contingent on HRA
approval of funding for Project 2. The option docu ent is included and is identified as Exhibit
.E.
20f3
. The area affected by Project 2 is from the West p operty lines of Project 1 and the area
immediately adjacent to Project 1 on its North bou dary, westerly to the East property lines of
the project currently known as Amoco Away. Par ing within the boundaries of the Project 1
and Amoco Away projects is addressed within the scope of those projects.
In exchange for the cross property easements an the construction easements, the owners of
the affected property are requesting 100% covera e of costs for the development of the
shared parking through T.I.F. and City of Monticel 0 parking development funds. The affected
owners will form an association to take care of ma ntenance once the project has been
completed. MLC will administer the project but wil need to be paid in full for all costs
associated with the shared parking work. Those c sts include but may not be limited to:
Building acquisition and demolition or remo al (Koppy storage building)
Utility right of way relocation if needed
Relocation of City of Monticello utility servic s if needed
Curb and sidewalk construction
Patch and repair work on city or county righ of ways
Curb, sidewalk, concrete, paving and lands ping construction
Construction financing and carrying costs
Builder Overhead and Profit
.Attached to this document is an estimated cost of t e shared parking development. It is
identified as Exhibit F.
Time is of the essence. The builder's and the dev loper's goal is to begin construction on the
new building during September of this year. In ord r for that to happen, we need approvals at
the July 11, 2001 meeting of the HRA. Developme t of Project 2 - Shared parking, will not
begin until April 1 of 2002.
Sincerely,
/ucAcJ4-
Michael Cyr
MLC Building & Remodeling
.
3of3
.
.
.
8.
lIRA Agenda - 7/11/01
Consideration to ado t a resolution ent rin into the Contract for Private
Develo ment b and between the HRA nd Masters Fifth Avenue Inc.
A. Reference and baek2:round:
Attached are excerpts from the draft copy f the Contract between the HRA and Masters
Fifth A venue, Inc. as drafted by HRA Att rney Dan Greensweig. A copy was forwarded
to Barry Fluth for review and at this time, 0 comments have been received from Fluth.
One item which needs some clarification i the parking development costs. The up to
$45,000 is for costs associated with develo ment of the parking on the sites identified as
"E, F & G" (Palmer, I lamond, and Kopy) er the proposals submitted to the HRA by
Rrad Johnson. Though the 60% parking s ace f()ffllUla used by the Building Department
and the use of public dollars, these parking spaces are available as "shared" parking
spaces. The developer is responsible for 0 taining easements and for construction and
future maintenance of the spaces. The H will reimburse the developer up to $45,000
upon evidence of completion and payment of the parking improvements.
Other than the parking development costs larification, the remaining Contract is
consistent with the HRA motion of June 6, 2001.
B.
Alternative Actions:
1. A motion to adopt a resolution ente ing into the Contract for Private Development
by and between the HRA and Mast rs Fifth Avenue, Inc. subject to the f()llowing
clariflcations ................
2. A motion to deny adoption of a res lution entering into the Contract for Private
Development by and between the I I and Master Fifth Avenue, Inc.
3. ^ motion to table any action.
C. Recommendation:
Recommendation is alternative no. I or ifp emature, recommendation is alternative no. 3.
The 11 RA' s motion in June included extend ng the efTective date of the Preliminary
Agreement to August 1,2001.
D. Supporting Data:
Excerpts Ii'om the Contract.
.
.
.
CONT
t:0~~\:s
PRIVATE DEV LOPMENT
een
MASTERS FIFTH VENUE, INC.
HOUSING AND REDEVEL PMENT AUTHORITY
IN AND OR
THE CITY OF M NTICELLO
Dated as of:
This document was drafted by:
KENNEDY & GRA. VEN. Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
DJG-199189VI
MN 190-95
,2001
.
Ac
Financial Assistance
Section 3.1. Status of the Develo ment P 0 ert . As of the date of this Agreement the
Developer has acquired or entered into a purchase greement with a third party for the Development
Property. The Authority shall have no obligatio to purchase the Development Property or any
portion thereof.
Section 3.2. Soil Conditions. (a) The De eloper acknowledges that the Authority makes
no representations or warranties as to the conditio of the soils on the Development Property or its
fitness for construction of the Minimum Impro ements or any other purpose for which the
Developer may make use of such property. Th Developer further agrees that it will protect
indemnifY, defend. and hold harmless the Authorit ,the City, and their governing body members,
officers, agents. and employees, from any claims or actions arising out of: (i) the presence, if any, of
hazardous wastes or pollutants on the Developme t Property, including but not limited to toxic or
hazardous substances or wastes. pollutants. or conta inants (including, without limitation, asbestos,
urea formaldehyde. the group of organic com ounds known as polychlorinated biphenyls.
petroleum products including gasoline, fuel oiL cru e oil and various constituents of such products,
and any hazardous substances as defined in t e Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (ltCERCL It) 42 U.S.c. SS 9601-9657, as amended); (ii)
the status of the Development Property as a trea ment storage, or disposal facility within the
meaning of, or other status of the Developmen Property within the ambit of the Resource
Conservation and Recovery Act of 1976 (ltRCRA')42 U.S.c. S 6901 et seq., or any similar federal
or state law or regulation. or local ordinance; (iii) a release or threatened release of toxic or
hazardous wastes or substances. pollutants or conta inants, from the Development Property within
the meaning of. or other status of the Development Property within the ambit of CERCLA. or any
similar federal or state law or local ordinance, (iv) he discharge of pollutants or effluents into any
water source or system or the dredging or filling 0 any waters or the discharge into the air of any
emissions, that as the case may be, \Nould requir a permit under the Federal Water Pollution
Control Act 33 U.S.C. ~ 1251 et~.. or the Clean ir Act. 42 U.S.C. S 7401 et~.. or any similar
federal or state law or local ordinance: (v) any ther claim or cause of action under RCRA,
CERCLA, or any other federaL state, or local envir nmental statute, regulation, ordinance, or other
environmental regulatory requirement including b t not limited to the Minnesota Environmental
Response and Liability Act tv[innesota Statutes, hapter 115B (ltMERLAIt) and the Minnesota
Petroleum and Release Cleanup Act Minnesota Stat Ites, Chapter l15C.
.
(b)
Agreement
The Deyeloper' s obligations under t is Section 3.2 shall survive termination of this
Section 3.3. Pel\'ment of Administrative Costs. The Developer agrees that it will pay upon
demand by the Authority, Administratiye Costs (a hereafter defined). For the purposes of this
Agreement the term u,-\Jministrati\e Costs" means out-of-pocket costs incurred by the Authority'
and attributable to or incurred in connection with the negotiation and preparation of this Agreement
. and other documents and agreements in connection vith the development contemplated hereunder.
D.lG-1991119vI
MNI9IP)5
7
.
.
.
Out-of-pocket Administrative Costs shall be evide ced by invoices, statements. or other reasonable
written evidence of the costs incurred by the Au hority. As of the date of this Agreement the
Developer has deposited $5,000 with the Authorit to be applied toward Administrative Costs. The
amount by which this deposit exceeds the Autho ity's actual Administrative Costs, if any, shalL
upon demand by the Developer, be returned to the eveloper, but no earlier than the date on which
the Developerreceives a Certificate of Completion ursuant to Section 4.4 of this Agreement.
Section 3.4. Land Ac uisition and Oem lition Costs; Parkin Costs. In order to make ~~)..::..\
development of the Minimum Improvements eco omically feasible.. the Authority will reimburse- ~ f
the Developer, in the manner and amounts set 1'0 h herein, for up to: (i) $185,000 of the "Land ~ ~ 0-~'-'
Acquisition and Demolition Costs", hereby defi ed as the Developer's cost of acquiring the
Development Property and demolishing the existin structure located on the Development Property; -
and ~ii) $45,~00.of the "Parking Improvc;~~ fG,lle~r~v..defille~s lb~J2.ey~~er"s cost. of
makmg parkmg improvements on and designed to serve the Development~ty \,the "'Parkmg
Improvements"'). Any costs in excess of these amo mts shall be the responsibility of the Developer.
The Authority shall have no obligation to the Dev loper or to any third party with respect to any
defects in the construction of the Minimum Improv ments. c;..--+ -e.. e-. ~ .. ca- ..
Section 3.5. Financing of Land Ac l isition and Demolition Costs and Parking
Improvement Costs. The Authority will reimburse the Developer for the Land Acquisition and
Demolition Costs and the Parking Improvement C sts in accordance with the following terms and
conditions:
(a) Subject to the terms and condition of this Agreement, the Land Acquisition and
Demolition Costs will be paid with simple int rest thereon at 8.00% per annum.. interest
commencing to accrue on the date that the D veloper complies with the cost certification
requirement described in Section 3.5(h). The Land Acquisition and Demolition Costs will be paid
by the Authority to the Developer in semi-annual installments payable on each February 1 and
August 1 ("Payment Dates") commencing Augu t 1. 2003 and concluding no later than the
Termination Date. These payments will be made fi m Available Tax Increment as defined in this
Section 3.5 and from no other source.
(b) The term "Available Tax Increment' means 90% of the Tax Increment with respect
to the Development Property as calculated by the C unty and paid to the Authority during the six
months preceding any Payment Date.
(c) If on any Payment Date there is avail ble to the Authority insufticientA vailable Tax
Increment to pay the amounts due on such date.. the mount of such deficiency shall be deferred and
shall be paid, without interest thereon.. on the ne. t Payment Date on which the Authority has
available to it Available Tax Increment in excess of t e amount necessary to pay the amount due on
such Payment Date.
(d) Subject to the terms and conditions of this Agreement the Parking Improvement
Costs will be paid. without interest thereon. within tl irty (30) days after the date that the Developer
complies with the cost certitication requirement des ribed in Section 3.5(h). This payment \vill be
made from Excess Tax Increment as defined in this S ction 3.5 and from no other source.
DJG-199189v I
MN190-95
8
. (e) The term "Excess Tax Increment" eans tax increment paid by the County to the
City prior to the date of this Agreement with respect to the TIF District, but only to the extent that
such tax increment: (i) may lavvfulIy be used for t e purpose of paying the Parking Improvement
Costs; and (ii) has not, prior to the date of this Ag eement. been paid or pledged to the payment of
any person other than the Developer.
(f) The Authority shall have no obliga ion to pay any portion of the Land Acquisition
and Demolition Costs or Parking Improvement C sts that remains unpaid after the Termination
Date. The Authority may prepay all or part of he Land Acquisition and Demolition Costs or
Parking Improvement Costs at any time.
(g) The Authority shall not be obligate to make any payment under this Section if: (i)
there is an Event of Default on the Developer's pa under this Agreement that has not been cured;
or (ii) the Developer has failed to comply with the ayment procedures described herein.
(h) At least 30 days before becoming ntitled to receive any payment hereunder. the
Developer must submit to the Authority:
.
(i) a payment request certifica e signed by its duly authorized representative
stating that: the Developer has paid Land cquisition and Demolition Costs in at least the
amount of $185,000 and has paid Parking Improvement Costs in at least the amount of
$45,000; that no Event of Default has occu ed and is continuing under this Agreement; and
that the Developer has received a Certificae of Completion pursuant to Section 4.4 of this
Agreement. The payment request certificat must be accompanied by evidence satisfactory
to the Authority that the Land Acquisi ion and Demolition Costs and the Parking
Improvement Costs have been incurred and aid by the Developer;
(ii) Either a No Action Letter, a Closure Letter, other similar representation, or
some combination of the foregoing (as app opriate) from the Minnesota Pollution Control
Agency that in the sole judgment of the Authority offers adequate assurance that all
pollution and contamination on the De elopment Property has been appropriately
remediated, or documentation from a repu able engineer that in the sole judgment of the
Authority offers adequate assistance th t all pollution and contamination on the
Development Property has been appropri tely remediated, such engineering report, if
provided, to be accompanied by a reliance 1 tter from the engineer in favor of the Authority;
and
(iii) Documentation acceptable t the Authority that the Developer has obtained
all easements necessary for the constru tion, maintenance, and use of the Parking
Improvements.
(i) The Authori ty makes no warranties r representations that Available Tax Increment
will be sufficient to pay the Land Acquisition and Demolition Costs. The Developer agrees and
understands that Available Tax Increment is subje t to calculation by the County and change in
State law, and that a significant portion of Land cquisition and Demolition Costs may remain
.
DJG-199189v I
MN 190-95
9
.
.
.
unpaid after the Termination Date. The Develope further agrees and understands that estimates of
Available Tax Increment provided by the Auth rity and its agents, officers, or employees are
estimates only and not intended for the Developer' reliance.
Section 3.6. Use of Tax Increment. Exce t as set forth herein, the Authority shall have no
obligation to the Developer with regard to its use f Tax Increment or Excess Tax Increment and
may use Tax Increment and Excess Tax Increment or any lawful purposes, whether set forth herein
or otherwise.
Section 3.7. Leases. At all times during
provide the Authority with copies of all leases in e
the Minimum Improvements.
DJG-199189v I
MN 190-95
10
e term of this Agreement, the Developer shall
ect with regard to the nonresidential portions of
.
.
.
ARTIe E IV
Construction of Mini
rovements
Section 4.1. Construction of 1m rovement . The Developer agrees that it will construct the
Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and will operate and maintain, preserve and keep the Minimum Improvements
or cause them to be maintained, preserved and k pt with the appurtenances and every part and
parcel thereot~ in good repair and condition. The uthority shall not have any obligation to operate
or maintain the Minimum Improvements.
Section 4.2. Construction Plans. efore commencement of construction of the
Minimum Improvements, the Developer shall su mit to the Authority Construction Plans. The
Construction Plans shall provide for the constructio of the Minimum Improvements and shall be in
conformity with the Redevelopment Plan, this Ageement, and all applicable State and local laws
and regulations. The Authority will approve he Constmction Plans in writing if: (i) the
Construction Plans conform to the terms and con itions of this Agreement; (ii) the Construction
Plans conform to the goals and objectives of the R development Plan; (iii) the Construction Plans
conform to all applicable federaL state and local I ws, ordinances, rules and regulations: (iv) the
Construction Plans are adequate to provide for cons ruction of the Minimum Improvements: (v) the
Construction Plans do not provide for expenditures n excess of the funds available to the Developer
from all sources for construction of the Minimum I provements; and (vi) no Event of Default has
occurred. Approval may be based upon a review by the City's Building Official ofthe Construction
Plans. No approval by the Authority shall relieve he Developer of the obligation to comply with
the terms of this Agreement or of the Redevelopme t Plan, applicable federaL state and local laws,
ordinances, rules and regulations, or to construe the Minimum Improvements in accordance
therewith. No approval by the Authority shall c nstitute a waiver of an Event of Default. If
approval of the Construction Plans is requested by the Developer in writing at the time of
submission, such Construction Plans shall be dee ed approved unless rejected in writing by the
Authority, in whole or in part. Such rejections sh II set forth in detail the reasons therefore, and
shall be made within 10 days after the date of their r ceipt by the Authority. If the Authority rejects
any Construction Plans in whole or in part, th Developer shall submit new or corrected
Constmction Plans within 10 days after written notification to the Developer of the rejection. The
provisions of this Section relating to approvaL reject' on and resubmission of corrected Construction
Plans shall continue to apply until the Constructio Plans have been approved by the Authority.
The Authority's approval shall not be unreasonab y withheld. Said approval shall constitute a
conclusive determination that the Construction Plan (and the Minimum Improvements constructed
in accordance with said plans) comply to the Auth rity' s satisfaction with the provisions of this
Agreement relating thereto.
(b) If the Developer desires to make any aterial change in the Construction Plans after
their approval by the .'\uthority. the Developer shall s Ibmit the proposed change to the Authority for
its appron.l. If the Construction Plans. as modit ed by the proposed change. conform to the
requirements of this Sectiun 4.2 of this Agreeme t with respect to such previously approved
Construction Plans. the A.uthority shall approve the proposed change and notify the Developer in
D.lG-1991 X9v I
MN 190.95
11
.
.
writing of its approval. Such change in the Con'truction Plans shall. in any event, be deemed
approved by the Authority unless rejected, in whol or in part by written notice by the Authority to
the Developer, setting forth in detail the reasons th refor. Such rejection shall be made within ten
(10) days after receipt of the notice of such change. The Authority's approval of any such change in
the Construction Plans will not be unreasonably wit eld.
Section 4.3. Commencement and Com I tion of Constmction. Subject to Unavoidable
Delays. the Developer shall complete demolition f the existing gas station on the Development
Property by August 31. 2001. Subject to Unavoi able Delays, the Developer shall complete the
constmction of Minimum Improvements by . 20~. All work with respect to the
Minimum Improvements to be constructed or pI' vided by the Developer on the Development
Property shall be in conformity with the Construction Plans as submitted by the Developer and
approved by the Authority.
The Developer agrees for itself, its successo s and assigns, and every successor in interest to
the Development Property, or any part thereof, that t e Developer, and such successors and assigns,
shall promptly begin and diligently prosecute to co pletion the development of the Development
Property through the constmction of the Mini urn Improvements thereon, and that such
construction shall in any event be commenced and completed within the period specified in this
Section 4.3 of this Agreement The obligation 0 construct the Minimum Improvements in
accordance with this Section touches and concerns t e land, and shall run with the property and be
binding upon all successors and assigns to the D velopment Property. After the date of this
Agreement and until- construction of the Minim m Improvements has been completed. the
Developer shall make reports, in such detail and at uch times as may reasonably be requested by
the Authori ty, as to the actual progress of the Develo er wi th respectto such construction.
Section 4.4. Certificate of Completion. (a Promptly after completion of the Minimum
Improvements in accordance with those provisio s of the Agreement relating solely to the
obligations of the Developer to construct the Min mum Improvements (including the dates for
beginning and completion thereot). the Authority ill furnish the Developer with a Certificate
shown as Exhibit B. Such certification and such etermination shall not constitute evidence of
compliance with or satisfaction of any obligation of he Developer to any Holder of a Mortgage, or
any insurer of a Mortgage. securing money loaned t finance the Minimum Improvements. or any
part thereof.
(b) If the Authority shall refuse or fail t provide any certification in accordance with
the provisions of this Section 4.-1- of this Agreement t e Authority shall. \vithin thirty (30) days after
written request by the Developer. provide the Dev loper with a written statement indicating in
adequate detail in what respects the Developer has filed to complete the Minimum Improvements
in accordance with the provisions of the Agreement or is otherwise in default and what measures
or acts it \vill be necessary. in the opinion of the Aut ority. for the Developer to take or perform in
order to obtain such certification.
(c) The construction of the Minimum In provements shall be deemed to be complete
upon issuance of a certificate of occupancy by he City for all portions of the NIinimum
. Improvements.
O.lG-1991 S9v I
MN190-95
12
.
.
.
9.
Consideration to acce t a counter-offer
A. Reference and background:
HRA Agenda - 7/11/01
located at 218 Front Street.
At the liRA June meeting, the eommission'Ts adopted a resolution authorizing eminent
domain proceedings to acquire property 10 ated at 218 Front Street subject to support by
the Council and directed the Executive Dir ctor draft a letter of buyer's intent to the seller
and seller's attorney. At the Council meetilg of June 11,2001, the members
unanimously supported the resolution ofth liRA. Neither the seller or the seller's
attorney were present at the Council meetil g.
O'Connor has made a counter-offer 01'$15 ,000 according to Ken Helvery, Conworth,
Inc. Koropchak has requested the counter- ffer in writing. The HRA is requested to
consider the counter-offer of $155,000.
The following outlines the negotiation step to acquire the 218 Front Strcet property:
Lahr/Koropchak meet with O'Connor
I-IRA Appraisal
II RA Offer
Eligibility of replacement housing payment
O'Connor Letter
HRA Counter-Otter
O'Connor retains legal services
HRA amends Purchase Agreement languag
via HRA Attorney and Seller Attorney
Evidence of business relocation and
eligibility
HRA Counter-Offer
O'Connor Counter-Otfer
HRA adopts eminent domain resolution
Council supports HRA resolution
0' Connor Counter-Offer via Conworth
Eminent Domain Petition Filed
New reasonable comparable via
Conworth, Inc.
Total potential exposure wlo interest/
condemnation/consultant costs
$92,200
$92,200
$14,700
$175,000
$130,352
September 25, 2000
October 10, 2000
November 28, 2000
November 29, 2000
December 12, 2000
January 3, 2001
March 21,2001
April 27, 2001
$15,031
$145,383
$169,500
May 3, 2001
May 15,2001
June 5, 2001
June 6, 200 I
June 11,2001
June 22, 2001
July 2, 2001
$155,000
$129,900
July 5, 2001
$153,900
July 5, 2001
It is the opinion of the HRA Attorney and R~locati()n Consultant that the counter-offer of
$155,000 may be reasonable considering th ERA may incur an additional $5,000 to
HRA Agenda - 7/11/01
.
$10,000 costs to continue the eminent don ain process. At this time, the petition process
continues.
B. Alternative Actions:
1. A motion to accept the counter-offi r of $155,000 for the property located at 218
Front Street. The $155,000 is a pa kage deal to include all eligible residential
and business relocation benefits.
2. A motion to deny acceptance of th counter-offer of $155,000 for the property
located at 218 Front Street and to c ntinue with the 90-day eminent domain
process. Final HRA offer remains 145,383.
3. A motion of a counter-offer in the' mount of $ , a package deal to
including all eligible residential an business relocation benefits.
4. A motion to table any action.
C. Recommendation:
.
HRA other expenditures: Bostic, $109,400; Reed (raw land) $30,000; SchlieC $83,000;
and Carlson, $275,000.
D. SupportiOl! Data:
Letter to seller and seller's attorney, copy fthe petition filing correspondence and
comparable cost analysis from Conworth, nc.
.
2
.
.
June 7, 2 01
1--1
MONTICELLO
Michael I. and Mary M. O'Connor
Route I
MonticellO; MN 55362
Re: Property located at 218 Front Street, Monticello,
Dear Michael and Mary 0' Connor:
At the Monticello Housing and Redevelopment Authority HRA) meeting of June 6, 2001, the
Commissioners considered the letter dated June 5, 2001, om your legal counsel, Attorney John T.
Peterson.
After much discussion, the Commissioners approved the Bowing action: The HRA adopted a resolution
authorizing eminent domain proceedings to acquire certa' real property interests described as Lot 7, Block
54, Townsite of Monticello, except therefrom the Easterly 33 feet; according to the plat and of record in the
Office of the County Recorder, in and for the County of right, State of Minnesota. The motion was
subject to the approval of support by the City Council. e adopted resolution will be considered by the
City Council of Monticello at their regular meeting ofMo day, June 1 1,2001, at 7:00 p.m. in the Council
Chambers located at 505 Walnut Street, Monticello, MN.
In addition, the Commissioners directed the Executive Dir ctor of the HRA to draft a letter to the said
property owners and the legal counsel of the said property owners informing of the action taken by the
HRA on June 6, 2001. Please be advised of the action tak n by the Monticello HRA on June 6, 2001, and
the forthcoming meeting date of the Monticello City Coun il.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNE OT A
Q)~ ~t.\~,~
Ollie Koropchak
Executive Director
c:
Attorney John T. Peterson, Johnson, Larson, & Person
Attorney Dan Greensweig, Kennedy & Graven
Ken Helvey, Conworth, Inc.
HRA File
Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, M 55362-8831. (763) 295-2711 . Fux; (763) 295-4404
Office of Puhlic Works, 909 Golf Course Rd., Monticello, M 55362. (763) 295-3170 . Fax; (763) 271-3272
Kennedy
470 Pillsbury Center
200 South Sinh Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
hcrp:llwww.hnnedy-graven.com
.CHARTERED
Graven
ROBERT J. LINDALL
Attorney at Law
*Certified Real Property Law Specialist
Direct Dial (612) 337-9219
July 2, 2001
Mr. Scott Grey
Metro Legal, Inc.
Suite 150 Towle Bldg.
330 Second Avenue South
Minneapolis, MN 55401
HAND DELNERED
RE: Monticello Housing and Redevelopment Aut, ority v. Michael I. O'Connor, et aI.
Wright County District Court
Our File No.: MN190-89
Dear Scott:
.
Enclosed please find an original and one copy of the P tition and an original and one copy of the Notice of
Intent in the above matter. Please arrange for the Peti on and Notice of Intent to be filed with the Wright
County District Court Administrator's Office. Please eturn the copy of the Petition and Notice of Intent
. stamped with the filing information. Also, please insert the District Court File Number on the Notice of Lis
Pendens and file the original Notice of Lis Pendens .th the Wright County Recorder. Please have the
enclosed copy ofthe Notice of Lis Pendens stamped wit the recording information and returned to me.
I am enclosing a check in the amount of$122.00 to pay t e filing fee to file the Petition ($132.00 minus the
$10.00 library fee), and a check in the amount 01'$19.50 0 pay the filing fee to file the Notice of Lis Pendens.
I will call to arrange service when we obtain the judge as ignment. Thank you for your assistance.
Very truly yours,
~
Robert J. Lindal
RJL:gak
Enclosures
cc: Ollie Koropchak (with enclosures)
Rick Wolfsteller (with enclosures)
Daniel J. Greensweig (with enclosures)
.
RJL-199285vl
MN19Q-89
*Certified by Minnesota State Bar Association
Kennedy.
"
470 Pillsbury Cenrer
200 Somh Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
C H ART ~ R ~ 0
ROBERT J. LINDALL
Attorney at Law
"Certified Real Property Law Specialist
Direct Dial (612) 337-9219
July 2, 2001
TO ALL INTERESTED PARTIES LISTED ON THE ATT CHED SERVICE LIST
RE: Monticello Housing and Redevelopment Author ty v. Michael I. O'Connor, et al.
Wright County District Court File No,
Dear Interested Parties:
The Monticello Housing and Redevelopment Authority ('HRA") has undertaken to acquire the real estate
described in the above matter for redevelopment purposes. You are a party who may claim an interest in this
property. In order to facilitate this project, the HRA has fi ed a condemnation petition with the Wright County
District Court. The condemnation petition is being served u on you separately.
.
The purpose of this letter is to advise you that the HRA inte ds to acquire title to and possession of the described
property pursuant to Minnesota Statutes, Section 117.042, so-called "quick.take" statute. A Notice of Intent to
Take Title and Possession is enclosed and served upon you. As described in the enclosed Notice, the HRA will
move the court to issue an order, transferring title to and p ssession of the described property to the HRA as of
October 2, 2001. You will be notified in the future of the c urt hearing on that motion. If the HRA obtains the
court order, on or before October 2, 2001, the HRA will pa. to you or deposit with the court an amount equal to
the HRA's approved appraised value of the property being acquired.
The "quick-take" procedure affects only the timing of the 's acquisition of the property. You retain the right
to present evidence to the condemnation commissioners con eming the amount of damages to be paid as a result
of the taking.
Notwithstanding the filing of this proceeding, the HRA rema ns willing to negotiate concerning the amount of just
compensation which each owner should be paid due to the ta .ng of the property.
If you have questions, please contact me at (612) 337-9219.
Robert 1. Lindall
RJL:gak
Enclosures
cc: Ollie Koropchak (with enclosures)
Rick W olfsteller (with enclosures)
Daniel J. Greensweig (with enclosures)
.
RJL-199278v 1
MN19Q-89
"Certified by Minnesota State Bur Association
.
Service
MN19 ).
Michael L O'Connor
218 Front Street
Monticello, MN 55362
Mary M. 0' Connor
218 Front Street
Monticello, MN 55.362
GMAC Mortgage Corporation
Agent: CT Corporation System, Inc.
405 Second A venue South
Minneapolis, MN 55401
County Auditor
Wright County
Ten Second Street NW
Buffalo, MN 55313
Dawn Grossinger
City Clerk
City of Monticello
505 Walnut Avenue, Suite 1
Monticello, MN 55362-8822
RCX=~C-199768vl
MN I 90-89
..- - .-- ..u_
.
.
List
-89
.
.
.
STATE OF MINNESOTA
COUNTY OF WRIGHT
Housing and Redevelopment Authority in and for th
City of Monticello, a public body corporate and poli c
under Minnesota law,
Petitioner,
v.
Michael 1. O'Connor; Mary M. O'Connor; GMAC
Mortgage Corporation, a Pennsylvania corporation;
Heirs and Devisees of Peter R. Christensen; City of
Monticello; County of Wright; all other parties
unknown, together with unknown heirs or devisees d
spouses, if any,
Respondents.
TO THE RESPONDENTS HEREIN:
Case Type: Condemnation
DISTRICT COURT
TENTH JUDICIAL DISTRICT
Court File No.
NOTICE OF INTENTION
TO TAKE TITLE
AND POSSESSION
PURSUANT TO
MINN. STAT. ~ 117.042
YOU WILL PLEASE TAKE NOTICE that petitioner requires title to and possession of the
property that is the subject of the above-entitled con emnation action prior to the filing of the award
therefor by the court-appointed condemnation co 'ssioners. The real estate to be acquired is
described in the attached Exhibit A.
Therefore, you are hereby notified that petiti ner intends to take title and' possession of said
real estate on October "3-: 2001, pursuant to Minn. Stat. ~ 117.042 (2000).
Before taking title to and possession of said eal estate, petitioner will pay to you or deposit
with the court an amount equal to petitioner's appro ed appraisal of value for said property.
ROCKLC-199272v I
MN 190-89
.
.
.
Dated: July z..,2001.
By:
ROCKLC-199272vl
MN190-89
KEN EDY & GRA YEN, CHARTERED
Robe J. LindaU, (# 7)
Danie J. Greensweig, (0238454)
470 p. lsbury Center, 200 South Sixth Street
Minn apolis, MN 55402
(612) 37-9300
2
.
.
.
EX HI IT A
Address of Property:
218 Front Street, Monticello. Minnesota
(PID No. 155-010-054070) (Abstract)
Lot 7, Block 54, Townsite of Monticello except therefrom the Easterly 33 feet
thereof, and Lot 8, in Block 54, of the Village of Monticello, Wright County,
Minnesota.
Names and Description of Interests to be Acqui ed
Notwithstanding the foregoing attempt to identify 11 interests held by a party named herein, it is
Petitioner's intention herein to acquire or encumber all interests owned by the named respondents in
the above-described real estate.
Name
Michael I. O'Connor
M M. O'Connor
GMAC Mortgage Corporation, a Pennsylvania
co oration
Heirs and devisees of Peter R. Christensen
Cit of Monticello
Count ofWri ht
All other parties unknown, together with
unknown heirs or devisees and souses, if an
ROCKLC-199272vl
MN 190-89
ature of Interest
ee Owner
choate interest
ortgagee
ossible holder of an interest
ecial Assessments
eal Estate Taxes
ossible Holders of an Interest.
A-I
.
.
.
JUL.OS'2001 14:25 952 929 0568
CONWORTH NCORPORATED
#0048 P.002/002
Me 0
REVIS D
To: Ollie Koropchak
HRA of Monticello
From; Ken Helvey, Conworth. Inc.
Date: 7/5/01.
Subject: O'Connor Property
On 1/3/01 Conworth. Inc. viewed a number of pro ies that are available for sale in Monticello.
to potentially use as a comparable for O'Connor. se properties were located at 3209 88m
Street, 312 E. River Street, 7137 Co. Rd.. 39, and 1 1 Hillcrest.
We mer that the property at 101 Hillcrest is a reaso ble comparable for O'Comor. This house
lists for $129,900. The MLS sheet is attached. Thi property has 3 bedrooms (same as
displacement site), 1.75 baths (greater than displace nt site), has 1,41.8 finished square-reet
(greater than displacement site), 2 car attached gara e (more than displacement site), newer
house, and a deck.
This house appears to be the most reasonable camp able on the market right now. Therefore, it
is our opinion that tms house should be listed in the ligibiHty letter. We can draft this up if you
wish. Let me know.
Using this house as a comparable would create a pri e differential payment of $37,700.00.
Closing costs are usually in the range of$2,OOO.00 t $3,000.00. Interest differential payments
can be just about anything. Moving costs can vary om about $l,S50.00 for a self move to
56,000.00 if a mover is used. Also, a Fixed Payment in Lieu of Actual Expenses would be
$15,000.00.
Therefore. total potential exposure under tbilS scenar. is
S 129,900+$3 ,000+$6,000+$1 5,000-$ 153,900 (plus y possible in,terest payment+condemnation
costs+ Con worth costs)
cc: Bob LindaU
CONWORT ,INC.
.
.
.
10.
HRA Agenda - 7/1l/01
Consideration to authorize solicitin bi s for demolition/cleanu of the
located at 3 Walnut Street 220 Front St eet and 8 Locust Street.
A. Reference and background:
The closing of the contract for deed on the Schliefproperty took place mid June and
Sandy Bostic vacated the property at 8 Lo ust Street on June 15. Attached is the
information given to Public Works and th fire Department relative to the above sites.
The Quiet Title Action [or the Bostic prop rty is scheduled in court on July 10. The plan
is to have the judge execute the necessary apers on the 10111 as Sandy Bostic's brother did
agree to sign necessary documents, this w uld allow the Fire Department to proceed with
their scheduled "test burn" on Sunday, Jul 15. The lIRA Attorney advised no "test
burn" until clear title although the HRA is he owner. Assuming a July 15 "test burn",
the fire Department has been requested to [ence the area following the burn until such
time for cleanup.
In lieu of the "test burn" on Sunday, July 15, the HRA is requested to authorize
solicitation of bids for demolition/cleanup or the said sites including compaction testing.
It would be the intent to award the bid to t e lowest bidder at the August 1, 2001 HRA
meeting. A meeting with I-Ians Hagen is a so being scheduled.
B.
Alternative Actions:
1. A motion to authorize solicitation I' bids for demolition/cleanup of the properties
located at 3 Walnut Street, 220 Fro t Street, and 8 Locust Street.
2. A motion to deny authorization to "olicit bids for demolition/cleanup of the
properties located at 3 Walnut Stre t, 220 front Street, and 8 Locust Street.
3. A motion to table any action.
C. Recommendation:
Alternative No.1.
D. Supporting Data:
Copy of information to P.W. and Fire Dep rtment.
TO: Matt Theisen - Public Works
. Scott Douglas - Fire Chief ?-q, S q \ \ \
.
.
FROM: Ollie Koropchak
Date: June 21, 2001
I'm on vacation .June 22 through July 2, 2001. Here's some direction relative to the
properties the HRA now owns.
3 Walnut Street (Schlie!) - HRA owns and pro erty is vacated. Public Works to move
detached garage and remove air conditioner, f rnace, and hot water heater. Fire
Department to use house for "test burn". Scot, please notify surrounding property
owners prior to test burn. Please get burning ermit from Fred Patch dated prior to .June
30,2001 for purpose ofTIF rules. Larry Schli f may remove stain glass window and
cabinet doors.
8 Locust Street (Bostic) - HRA owns and prope ty is vacated. In basement is a fuel oil tank
about 1/4 full and an underground empty fuel il tank outside (Matt Theisen knows about
these). Fire Department to use house and if ot er dwellings, for test burn. Scott, please
notify surrounding property owners prior to te t burn. Please get burning permit from "\
Fred Patch dated prior to .June 30, 200 I for pu pose of TIF rules. ~~ ~ ~ OL_ l \e----
220 Front (Reed) - HRA purchased vacant lot ith garage only. Marian Carlson wants
windows, to be removed by July 6.
I called for the following for the removal of utirties for purpose of burn/demolition at the
above addresses. Utilities scheduled to be rem ved by July 6, 2001.
Minnegasco - Stephanie
Xcel - Sharon
Charter Communication - Chris
TDS Telecom -
City water/sewer - Matt Theisen to remove.
Attached are copies of the warranty deeds per r quest for Fire Department.
Plan to burn the week of July 16, 2001. I'll be ack in office .July 2 to solicit bids for
cleanup/demolition and compaction testing.
Thanks,
Ollie
July 5, 001
MONTICELLO
Kathy Rocklitz
Kennedy & Graven
470 Pillsbury Center
Minneapolis, MN 55402
Re: Escrow account for 8 Locust Street, Monticell , MN
Dear Kathy:
This letter is to notify Kennedy & Graven that the ater and Sewer Department Supervisor of
the Monticello Public Works Department made a Ik-through oCthe property located 8 Locust
Street following the vacation of the property by Sa dy Bostic on June IS, 2001. The Supervisor
tound the property clear of debris and personal pro erty and anticipates no vacated clean-up
costs to the Housing and Redevelopment Authority (HRA) of the City of Monticello.
.
The HRA requested all utility services be removed s of July 6, 200 I in anticipation of the
upcoming "test burn" or demolition of the improvel ents.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORI Y
IN AND FOR THE CITY OF MONTICELLO, MI ESOT A
o~~~~~~
Ollie Koropchak
Executive Director
c: File
.
Monticello City Hall. 505 Walnut Street, Suite I, Monticello, N 55362-8831. (763) 295-2711. Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax: (763) 271-3272
.
.
.
11.
HRA Agenda - 7 Jll10 1
Consideration to discuss amendin y the a e level criteria within the Business
Subsid Criteria of the HRA and eallin for a ublie hearin .
A. Reference and background:
The l-iRA is being asked to discuss amendi g the wage level criteria within their Business
Subsidy Criteria. The current wage level i at least $9.00 per hour without benefits.
Most recently ajournal article was attache to the HRA agenda relative to the S1. Cloud
II RA increasing their wage level standards to at least $] 2.25 per hour on an average for
business' looking f(Jr a tax break. The WI' ght County Partnership guidelines are at least
$ I 0.00 per hour.
This item appears on the HRA agenda after this question raised at the IDe meeting: If a
local person asked the question: Why does the City give a tax break to a business who
doesn't pay livable wages? What is the res onse? The Mayor agreed, that was a good
question. Therefore, the lIRA is requested 0 discuss their wage level criteria. Some but
very few authorities, have a point system tl I' amount of TIF assistance based on building
size, building material, acreage, number of obs, wage levels, etc. Some time ago, the
BRA reviewed that scenario and elected to (eep the criteria simple to allow flexibility on
a case by case basis. If I remember correct y, it takes an income level of $14 per hour to
qualify tlX a $90,000 house mortgage. As t e cli classification rates are reduced, the
wage level has a greater impact to the com unity.
Prior to amending the criteria, the liRA nee s to call a public hearing lor publication in
the local newspaper. What is the desire of he HRA?
B. Alternative Action:
I. A motion to increase the wage level 'riteria to at least $_._~_ per hour
without benefits and calling for a pu lie hearing date of_____
2. A motion to further research wage Ie el criteria of other communities.
3. A motion of no interest to modify th current wage level or at least $9.00 per hour
without benefits.
4. A Inotion to table any action.
C. Recommendation:
Recommendation is no. 2. Perhaps, further esearch on the overall costs to develop in
.
HRA Agenda - 7/11/01
Monticello compared to other communitie is due. Is TIF being used in Monticello in
order to be competitive, as an incentive, or as gap financing?
D. Sunportint! Data:
Copy of S1. Cloud HRA journal article.
.
.
2
ho was stopped
tly June 10,
Jolice said they
~ked his license
Matthews' case is gaining
attention outside St. Cloud,
with local and state black
leaders keeping a close eye
-::: motor Wednesday while working at his
rs are busy this week.
'5
Look out for dams
Minnesota Power re-
minds those participating
in the fishing opener to
be cautious of dams on
local rivers.
As a result of high wa-
ter conditions. restraining
buoys are not in place up-
stream from the Little
Falls and Blanchard dams
on the Mississippi River
and the Sylvan and Pil-
lager dams on the Crow
Wing River.
People fishing should be
more aware of their loca-
tion when near the dams.
ast 21 years
dn reach of
eople 12 to
in operate
:lan 25 hp
3ft opera-
with some-
older
".on-
. r than
;n oper-
'"e than 75
11 adult on
Jngerthan
:'ate per-
. ft, even
)n board.
:18n 13
~...,,...._....... ~.J.
opener. We probably have
sev:..n pe?ple w~o came, i~
RA'sets
new ag
stan ard
/
sinesses getting
tax bre a at
least $12.25 per hour
)
By Lawrence Schumacher
Times staff writer
Businesses looking to
build in St. Cloud who want
tax hreaks\ must pay new
employees at least $12.25
per hour on average,St.
Cloud development officials
decided Wednesday.
Calling it "about time;" St.
Cloud Housing and Rede-
velopment Authority Board
members created a thresh-
old minimum average wage
for new job creation as a pol-
icy to judge whether city tax
dollars should help a busi-
ness locate or expand in St.
Cloud.
"It seems like prudent
public policy not to be out
creating jobs that are going
to require public assistance
for people to be able to af-
ford housing," said board
member Mike Podawiltz.
Board members based the
policy on federal fair market
rent estimates for a family of
four renting a three bed-
room apartment in Stearns
County - $637 per month,
or $7,644 per year in 2001.
Assuming 30 percent of
gross income is spent on
rent payments, the wage-
earner from a single-income
family would have to make
$25,480 per year, or $12.25
per hour, to afford rent.
The new criteria will ap-
ply whenever a business
seeks tax increment financ-
ing on a new or expanding
economic development
project, though not redevel-
opment projef~, said board
memb~.r:4nd City Council
Pr.esident John Ellenbecker.
- Tax assistance granted in
the past for the Grandstay
Hotel downtown, Target de-
partment store or upcoming
Eastgate II office complex
would not be subject to this
wage test, because redevel-
opment of blighted areas is
the main goal there and not
employment, he said.
But city assistance for the
New F1yer USA and Finger-
hut -compa-
nies would
have . been
subject to this
new require-
ment, Ellen-
becker said.
"If this pol-
icy had been
in effect, we
probably still
would've done New Flyer,
but I don't think we
would've done Fingerhut,"
he said.
The criteria applies to
wages, not total compensa-
tion packages, but only on
average - entry-level, part-
time and low-skill jobs can
still pay less than $12.25
per hour, but average of all
jobs created must meet
that target.
The wage policy will be
revised yearly, based on an-
nual revisions of the fair
market rent estimates.
'Thx incentives are becom-
ing less effective as econom-
ic development tools, but the
policy still should be applied
flexibly, said Jack Happe of
St. Cloud Opportunities, a
nonprofit economic devel-
opment organization.
Mike
Podawiltz
HRA board
member
I
!I
.
.
1;
.
I-IRA Business Subsidy Criteria
(2) The proposed subsidy must resul in improvements to public infrastructure or
public facilities, including without limitati n, sewers, storm sewers, streets, parks,
recreational facilities, and other City facili ies; or
(3) The proposed subsidy must remo e physical impediments to development of
land, including without limitation poor soi s, bedrock conditions, steep slopes, or similar
geotechnical problems.
4:07 For any business subsidy that does not me t the requirements of Section 4:06, the
recipient must create or retain jobs as dete mined by the Housing and Redevelopment
Authority, and must meet the minimum w ge thresholds described in Section 5:03 C or 0
(whether or not the source of the subsidy i tax increment financing).
5. T AX INCREMENT PROJECT EV ALVA ION CRITERIA
5:01 The Housing and Redevelopment Authorit will utilize Tax Increment Financing to
support the community's long-term econo ic, redevelopment and housing goals.
5:02 Each Tax Increment Financing subsidy wi I be analyzed and evaluated by the Housing
and Redevelopment Authority. Each proj ct shall be measured against the general
criteria in Sections 1 through 6 and the specific criteria in this Section 5 applicable to tax
increment financing business subsidies.
5:03 Following are the evaluation criteria that 'ill be used by the Housing and Redevelopment
Authority.
A. All business subsidy requests shall meet the .-but for" test. The '.but for" test
means that the project would not d velop solely on private investment in the
reasonable future. The developer hall provide findings for the ..but for" test.
B. Business subsidy requests should c eate the highest feasible number of jobs on
site from date of occupancy where eemed appropriate.
c.
For manufacturing and warehousin ) business subsidy requests, at least 90% of the
jobs created must pay a wage of th higher of $9.00 per hour. or at least 160% of
the federal minimum wage require ent for individuals over the age of 20.
Annual written reports are required until termination date. Failure to meet the job
and wage levcl goals require partial or full repayment of the assistance with
interest.
D.
For otht.:r business subsidy requests jobs created must meet as a minimum the
federal minimum wage requiremen. Annual written reports are required until
termination date. Failure to meet t e job and \vage level goals require partial or
3
.
.
.
HRA Business Subsidy Criteria
full repayment of the assistance wi h interest.
E. All business subsidy requests shou d create the highest possible ratio of property
taxes paid before and after redevel pment.
F. Business subsidy requests should l' cilitate redevelopment or elimination of
"substandard" or "blighted" areas here deemed appropriate.
G. Business subsidy requests should f: cilitate the "clean-up" of environmentally
unsound property where deemed a propriate.
H. Business subsidy requests should i crease moderate priced housing options for
area residents where deemed appro flate.
1. All business subsidy requests shou d be deemed to promote additional desired
"spin-off' development.
1.
All business subsidy requests shou d demonstrate "community involvement"
including demonstrated degrees of he various factors:
a) Local residency of the com any's owners and employees, or
b) Local residency of the cont actors involved in the project, or
c) Membership in local business organizations, or
d) Other similar factors.
6. PROCEDURES
*
Meet with appropriate Staff to disc ss the scope of the project, public
participation being required, and ot ler information as may be necessary.
*
The request shall be reviewed by S afT on a preliminary basis as to the feasibility
of the project.
*
The project concept shall be placed on the Housing and Redevelopment Authority
agenda for concept review. The ap licant will make a presentation of the project.
StatT will present its findings.
*
If the Housing and Redevelopment Authority's concept review is positive. Staff
will provide the City Council with n informational concept review.
*
The applicant will execute and sub it the Preliminary Development Agreement
accompanied by a non-refundable f e of $5.000.
*
Building and site plans submitted t the Chief Building Official.
4
.
.
.
12.
BRA Agenda - 7/11/01
Consideration of authorizin a ment 0 monthl HRA bills.
Recommendation is to authorize payment f bills.
Kennedy & Grav n, Chartered
200 South Si h Street
Suite 4 0
Minneapolis, N 55402
.
(612) 337- 300
June 20,
Statement N
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through May 31,2001
MN190-00088 Acquisition of 8 Locust Street/Bostic
MN190~00089 Acquisition of 218 Front Street/O'Connor
MN 190-00090 Acquisition of 225 Front St./Carlson
MN190-00091 TIF 1~28 (Economic Development)
Expenses
.
I declare, under penalty of law, that this
account, claim or demand is .
and that no part of i een paid.
Signature of Claimant
.
Total Current Billing:
135.00
207.00
63.00
1,984.50
59.16
2,448.66
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
.
June 20,
Invoice #
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
~ \ ':> . '-\'
MN190-00088 Acquisition of 8 Locust Street/Bostic
Through May 31,2001
For All Legal Services As Follows:
5/1/2001 CBR Arrange recording
s~:, ·
I -F1
/].,...." ,
y?oY 0
Hours
Amount
18.00
27.00
0.20
5/1/2001
JQS Phone call with Wright Cou ty Recorder's Office; procure 0.30
checks to pay filing fees, et ; draft letter to County
Recorder
5/7/2001 CBR Phone call with Sandy Bos ic 0.20 18.00
. 5/22/2001 NKE Conference with Bonnie Wi kens regarding quiet title 0.50 45.00
action
5/23/2001 CBR Phone call from client; intra ffice conference 0.30 27.00
T al Services: $ 135.00
For All Disbursements As Follows:
Photocopies 3.60
Postage 1.44
4/30/2001 Catherine B. Rocklitz - Mil age Expense 26.52
5/2/2001 Wright County Treasurer; onservation fee 5.00
5/2/2001 Wright County Recorder; 19.50
T tal Disbursements: $ 56.06
Trust Account
5/1/2001
.
B ginning Balance:
0.00
2,000.00
.
.
.
Page: 2
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
City of Monticello
May 31, 2001
Ending Balance:
z,uuu.uu
T al Services and DIsbursements: $
191.06
.
Page: 3
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, N 55402
City of Monticello
s~~.'?oYO
May 31,2001
?-\
~~
MN190-00089 Acquisition of 218 Front Street/O'Connor
Through May 31,2001
For All Legal Services As Follows:
5/9/2001 CBR Review abstracts; intraoffic conference; phone call and
letter to title company
5/15/2001 CBR Intraoffice conference; pho e call to title company
.
To al Services:
Hours Amount
1.00 90.00
0.20 18.00
0.30 27.00
0.80 72.00
$ 207.00
5/16/2001
5/29/2001
CBR Review document; phone c II
CBR Review document; intraoffi e conference; phone call to
client; review title
For All Disbursements As Follows:
Photocopies
To al Disbursements:
$
0.60
0.60
To al Services and Disbursements: $
207.60
.
.
Page:
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, MN 55402
City of Monticello
?\? Ylo SC?3. 60'-/V
May 31,2001
MN190-00090 Acquisition of 225 Front St./Carlson
Through May 31,2001
For All Legal Services As Follows:
5/22/2001 CBR Phone call re real estate ta es
Hours
0.30
OAO
$
5/30/2001
CBR Phone call re taxes; e-mail e taxes
To al Services:
.
To al Services and Disbursements: $
.
Amount
27.00
36.00
63.00
63.00
.
.
.
City of Monticello
May 31,2001
Page: 5
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
u V S? <6 · :,t) '1 '0
?\'O . ,
MN190-00091 TIF 1-28 (Economic Development)
Through May 31, 2001
For All Legal Services As Follows:
5/21/2001 DJG Draft TIF contract.
5/24/2001
5/24/2001
5/29/2001
5/30/2001
DJG Draft TIF contract.
DJG Draft TIF contract.
DJG Draft TIF contract.
DJG Review draft TIF plan.
For All Disbursements As Follows:
Fax
I-~\ r")
T tal Services :
T tal Disbursements:
Hours Amount
3.10 418.50
2.80 378.00
4.10 553.50
4.30 580.50
0.40 54.00
$ 1,984.50
$
2.50
2.50
T tal Services and Disbursements: $
1,987.00
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
.
(612) 337 9300
June 20, 001
Statement N . 38197
Monticello HRA
City Hall
505 Walnut Street
Suite 1
Monticello, MN 55362
Through May 31,2001 0-ft-:"" 1\
MN 195-00007 Purchase of 22:::; WC:3t River 'itrilel ~ L c.-u~ ~
Expenses
.
I declare, under penalty of law, that this
account, claim or demand is just and ect
and that no part of it has been paid.
.
Total Current Billing:
379.75
0.00
379.75
.
.
.
Monticello HRA
City Hall
505 Walnut Street
Suite 1
Monticello, MN 55362
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
June 20,
Invoice #
~ L C) c..- u q..
MN195~00007 Purchase of 22€i West Rivor Str~~t
V7;, 0 '-\ ()
1...1. \..0 S l6 ~ ·
?-\'?J.
Through May 31,2001
For All Legal Services As Follows:
5/22/2001 BLW Intraoffice conference and esearch re quiet title issues
5/24/2001
5/24/2001
BLW Review summons, complai t, affidavit and intraoffice
conference with N England re same
BLW Intraoffice conference with N England re revisions to
pleadings and procedure
T tal Services :
Hours
1.30
0.75
Amount
201.50
116.25
0.40
62.00
$
379.75
T tal Services and Disbursements: $
379.75
.
QUICK TIF 4.0 INVOICE
?-\~
L,\ \.c "? c \
.~\q q
BILLING DATE: JUNE 28, 2001
City of Monticello
Ollie Koropchak
505 Walnut St. Suite 1
Monticello, MN 55362
Item Cost
1 Copy of Quick TIF 4.0 ---Up rade $225.00
. Minnesota State Sales Tax (6.5 Yo) 14.63
TOTAL $ 239.63
Please rem't payment to:
EHLERS & SSOCIATES
3060 Centr Pointe Drive
Roseville, M nnesota 55113
.
E LERS
& ASSOCIATES INC
* City of Monticello
. 505 Walnut Street. Suite #1
Monticello, MN 55362
~ 763 295-2711
WATER/SEWER BILL
19 _ 39
~. ~I bon Ir. I HI}( _
C/O HRA - OLLIE KOROPCHAK
505 WALNUTS ST STe #
MONTICELLO MN 55362
4% Penalty Added After Due Date
FINAL BILLED ACCOUNT
AMOUNT PAID
DETACH AND RETURN THIS PORTION WITH YOUR PAYMENT.
RETAIN THIS PORTION FOR YOUR RECORDS.
CITY OF MO TICELLO
505 WALNUT STREET, SUITE #1 - MONTICELLO, MN 55362
SERVICE ADDRESS SERVICE PERIOD ACCOUNT NUMBER .
3 WALNUT ST
4/01 2001 - 6/21/2001
001-0043-00-05
Previous Balance
Penalties
PAYMENT - THANK YOU -
eiustments
112.75
1 1 2 . 7 5 Meter Read!f~/18 ~P,'t~, 6/2 1 /2 0 0 1
Period: 0:
CURRENT METER READINGS _ USAGE
SERVICE BILLED CHARGES PREVIOUS PRESENT TYPE USAGE SAME PERIOD
. '. w w w
1 f 5GIWte "GII fWtePeD USAGEX75 (Glp Qtr)d--dedb 90d .,
WATER - Res
SEWER - Res/Com
Garbage Cart
Tax
Current Charges
7.43
9.00
2.'70
.26
19.39
34100
34490 F
390
390
sq,~.
L-\lo
L\ '3 q<l
~\
~
THIS STATEMENT REFLECTS PAYMENTS AS OF
6/22/2001
utility payments.
BilliNG INQUIRIES CA L (763) 295-2711
.
. Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
July 3,2001
INVOICE
~ t ~, .y to S '6 l/ 4 ':, '\ q 't
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, :MN 55326-8831
JUNE SERVICES - MONTICELLO PROJECT
.
O'Connor
Talk with O'Connor ith information.
Research comparabl s.
Fax information to a orney.
Send information to .
Talk with HRA and 'th claimant's attorney regarding settlement.
Talk with HRA chair regarding settlement.
Leave phone messag for O'Connor regarding settlement.
Leave message for cl imant's attorney regarding offer.
TOTAL HOURS E ENDED
AT $70.00 PERHO R
3.75
$262.50
.
ACQUISITION AN RELOCATION
File Number: 174401
CITY OF MONTICELLO
Borrower :
Invoice #:
Order Date :
Reference/Case # :
PO Number:
HEARTLAND PPRAISAL
P.O. BOX 312 MONTI ELLO MN. 55362
?- \ '0 _ '-\ \.; S ~
l!L ~ 9
.
??$
FRONT STREET
MONTICELLO, MN 55362
Terms:
FOR APPRAISAL SERVICES
Invoice Total
State Sales Tax @
Deposit
Deposit
Amount Due
Please Make Check Payable To:
HEARTLAND APPRAISAL
Fed. 1.0. #:
File No. 174401
"??l4fg
$
$
($
($
$
$
250.00
250.00
0.00
)
)
$
250.00
.
.
.
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Grav n, Chartered
200 South Si h Street
Suite 4 0
Minneapolis, N 55402
(612) 3379300
May 10, 001
Statement N . 37786
Through April 30, 2001
MN190-00041 Redevelopment - Genei"al
MN190-00084 DTED Loan - Twin City Die Casting
MN190-00088 Acquisition of 8 Locust Street/Bostic
MN 190~00089 Acquisition of 218 Front Street/O'Connor
MN 190-00090 Acquisition of 225 Front St./Carlson
MN190-00093 Block 52 Redevelopment
Expenses
I declare, under penalty of law, that this
account, claim or demand is just and correct
and ~riiJfjJP
Signature of Claimant
Total Current Billing:
'124.00
0.00
1,849.50
121.50
0.00
573.50
51.04
2,719.54
.
.
.
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis. N 55402
May 10. 001
Invoice # 7786
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello. MN 55362
\ :,oYa
-::'0 \.. I
? \ "'='; ~ L\ ~
M N 190-00041
Redevelopment - General
Through April 30. 2001
For All Legal Services As Follows:
4/5/2001 SJB Telephone message from Koropchek regarding conflict
question; telephone confer nce with D Fried regarding
same.
Hours
0.50
Amount
77.50
4/10/2001
SJB Telephone conference with 0 Koropchek regarding various 0.30
TI F matters.
46.50
T tal Services :
$
124.00
T tal Services and Disbursements: $
124.00
.
~ of Monticel~
April 30, 2001
Page:
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, M 55402
~.. _tr-~
~'(\
MN190-00084 DTEO Loan ~ Twin City Die Casting
For All Disbursements As Follows:
.
.
Postage
Photocopies
~~~
To I Disbursements:
Tot I Services and Disbursements: $
$
0.34
0.60
0.94
0.94
.
Page:
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, M 55402
~\'3. 4
c,~3.~o~a
City of Monticello
April 30, 2001
MN190-00088 Acquisition of 8 Locust Street/Bostic
Through April 30, 2001
For All Legal Services As Follows: Hours Amount
4/2/2001 CBR Intraoffice conference; pho e call to client; review 0.30 27.00
documents
4/4/2001 CBR Phone call to client; phone all to Conworth 0.30 27.00
4/6/2001 DJG Phone call with O. Koropch k re 8 Locust Street 0.20 27.00
4/18/2001 CBR Phone call from client; pho e call to abstract company; 1.70 153.00
phone call to owner; phone call to lender; draft closing
documents
. 4/23/2001 CBR Phone call to abstract com any; phone call to lender 3.90 351.00
4/24/2001 CBR Phone call to title company re le~al description; intraoffice 2.00 180.00
conference; phone calls fr m Se ler
4/25/2001 DJG Review Bostic agreement nd abstract re title issues 1.20 162.00
4/25/2001 CBR Draft documents; intraoffic conference; phone calls; 3.00 270.00
e-mails; fax; prepare for cl sing
4/26/2001 DJG Prepare title opinion 2.30 310.50
4/30/2001 CBR Phone call from S Bostik; hone call to client; phone call 3.80 342.00
to K Helvig; attend Closing in Monticello
$ 1,849.50
For All Disbursements As Follows:
T tal Disbursements:
15.20
9.09
4.50
28.79
Photocopies
Postage
Fax
$
.
Page:
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, MN 55402
.
City of Monticello
April 30, 2001
.
.
To al Services and Disbursements: $
1,878.29
.
Page:
Kennedy & Grav n, Chartered
200 South Sixt Street
Suite 47
Minneapolis, M 55402
City of Monticello
Q.\~. ~~ c;%3. 301-/0
April 30, 2001
MN 190-00089 Acquisition of 218 Front Street/O'Connor
Through April 30, 2001
For All Legal Services As Follows:
4/25/2001 DJG Review John Petersons co ments re purchase
agreement; phone call with Korgpeheak re same
To al Services:
Hours
0.90
$
.
To al Services and Disbursements: $
.
Amount
121.50
121.50
121.50
.
Page:
Kennedy & Grav n, Chartered
200 South Sixt Street
Suite 47
Minneapolis, M 55402
City of Monticello
April 30, 2001
Yl-S&~' ~()L{D
~\'7.
MN190-00090
Acquisition of 225 Front St./Carlson
For All Disbursements As Follows:
3/27/2001
4/3/2001
Postage
Photocopies
Federal Express - Delivery harge
Wright County Treasurer; gricultural Preservation fee
Tot I Disbursements:
$
0.97
1.80
13.54
5.00
21.31
.
Tot I Services and Disbursements: $ 21.31
.
.
Page:
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, M 55402
City of Monticello
April 30, 2001
1-).1'3,
L, <:; <2 q, ~O t-tO
MN190-00093 Block 52 Redevelopment
Through April 30, 2001
For All Legal Services As Follows:
4/23/2001 SJB Review materials for HRA an City Council meeting;
telephone conference with 0 Koropchek regarding same.
4/25/2001 SJB Attend joint CouncillHRA me ting.
Tota Services:
.
Hours
0.70
3.00
$
Total Services and Disbursements: $
.
Amount
108.50
465.00
573.50
573.50
.-
Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis. MN 55416
June 6,2001
INVOICE
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
?-t?:>4 t<. S2~. ~t'tq
Ollie Koropchak:
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, :MN 55326-8831
MAY SERVICES - MONTICELLO PROJECT
.
O'Connor
Review documentati n received regarding business and forward
to HRA with conun nt.
Talk with lIRA and .ce with O'Connor's attorney regarding
issues and offer.
Fax information to 'Connor and their attorney.
Talk four times with regarding offer and status of Purchase
Agreement.
Talk with lIRA atto ey regarding status.
TOTAL HOURS E
AT $70.00 PER HO
3.25
$227.50
.
ACQUISITION AN RELOCATION
.
.
.
13.
HRA. Agenda - 7/11/01
Consideration of Executive Director's R ort.
a) Sehlief House - Closed on Contrac for Deed on June] 9,2001. Copies of checks
attached.
b) TIF District No. 1-12 (Aroplax) - P yment received on TIF loan with City
(lIACA Penalty reimbursement). I voice on second payment due for the TIF
Deficiency. Due date May 23, 200 . I need to call on this. Didn't call in May
due to Jerry's death.
c) 225 Front Street - Copy of the appr isal for land only.
d) Integrated Recye]ing Technologies ~orporation - We closed on the project at the
2] th Century Bank, Rogers, on .Iun 29. Pfeffer, myselt~ and closer were present.
The EDA loan closed also. No ground-breaking reception held per request of
owner. Time frame issue.
e) Red Wing Foods, Inc. - It is my un erstanding, the company has elected not to
purchase the H- Window or Fay-Ma building nor construct in Monticello.
Looking at sites closer to market or metro.
1) EDMA Corporation - A smallmac ine shop in Eden Prairie. Has Purchase
Agreement with Carl and Eric Bon hus for construction of a 10,000 sq n
building. Three new jobs to Monticello, one at $10.00 - $1 ] .99 and two at over
$18. No TIF, applying f(Jf $30,000i-MEF loan. Prospect Team visited
company.
g) Production Stamping - Wi]1 contact next week.
h) International Cup - Lead from Ron Hoglund - Referred to Fay-Mar building for
lease or sale. Company decided Monticello too far out.
i) Industrial Molded Rubber - Plymou h light rubber coating manufacturer. Lead
from Xcel Energy. Decision on-hol . Two companies- selling one. First option
to stay put. Second option for existi Ig building or to construct. 20,000-30,000 sq
ft with expansion capabilities to 50, 00 sq ft. 3 acres. Jobs? Fay-Mar building or
to build.
j) Quick TIF 2000 is here so will begi working on that.
k) Tax increment for fIrst-half of 2001 :vailable but have questions of the County.
Payments due developers August 1, 001.
I) Notification of Fay-Mar HACA Pen lty - Upon receiving TI, it may be beneficial
to payoff debt and decertify district. Maybe not, no more HACA Penalty. Hate
to pay ofT early if Musich sells real estate and reduced job creation.
m) Previous St. Ileory's site - It appears the concept presented by John Komarek is
not materializing as Tom St. Ililaire s presenting a new concept to the Planning
Commission.
n) Marketing Committee may meet this Friday or the following.
0) FDA may meet Tuesday, July 17,4: 0 p.m.
p) If the BRA accepts the O'Connor ofer, the HRA should consider authorizing
whether to proceed with demolition r going out for bids.
\
e
CITY OF MO TICELLO
GENERAL F ND AlP
505 WALNUT ST., SUITE 1
MONTICEllO, N 55362
763-295-2 11
75-166"
----g;-o
NO.
63791
DATE
CHECK NO.
MARQUETTE BANK - MONnCEllO
P.O. BOX 729
MONTICELLO, MN 55362
763.295-2952
AMOUNT
-19-2001
63791
$32.436.58
eThirty Two Thousand Four Hundred Thirty Six an
58/100 Dollars * * * * *
PAY 10
THE Larry A. Schlief and Kathleen M.Schlief
ORDER
OF
~-J
-'et?JLdCC~
.~
1I'01;:i 79 _"' 1:09 _0 _I;I;L. 71:
7 I; 0 00 _ 711'
ACCOUNT I P.O. I INVOICE I DESCRIPTION I AMOUNT
213.46583.5101
Contract for Dee
Schlief Property
$32.436.58
e
CITY OF MONT CELLO
\
.
CITY OF MO TICELLO
GENERAL F NO AlP
505 WALNUT S ., SUITE 1
MONTICELLO, N 55362
763-295- 11
75-166':
---g-;Q'
NO.
63790
MARQUETTE BANK - MONTICEllO
P.O. BOX 729
MONTICEllO. MN 55362
763.295.2952
AMOUNT
DATE
CHECK NO.
.
Thirty Two Thousand Four Hundred Thirty Six an
-19-2001
63790
$32.436.58
53/100 Dollars * * * * *
PAY 10
THE
ORDER
OF
Janice E. Boyd and Terrance C. Boyd
~~,,-~.
~WI~a ~/l ~:_'-<1
II'Ob j 711011' 1:0'1 1.0 I.bb~ 71:
7 bOO 0 I. 7 II'
ACCOUNT I P.O. I INVOI,CE I DESCRIPTION I AMOUNT
213.46583.5101
Contract for Deed
Schlief Property
$32.436.58
.
CITY OF MONT CELLO
\
.
CITY OF MaN ICELLO
GENERAL FU 0 AlP
505 WALNUT ST., SUITE 1
MONTICEllO, M 55362
763-295-2711
75.' 664
---g;o-
NO.
63789
DATE
CHECK NO.
MARQUETTE BANK - MONTICELLO
P.O. BOX 729
MONTICEllO. MN 55362
763.295.2952
AMOUNT
.
6-19-2001
63789
$273.90
Two Hundred Seventy Three and 90/100 Doll rs_* * * * * * * * *
PAY TO
THE Wright County Treasurer
ORDER
OF
~~~/~
~tVJd Ct . dA./.'--.
1110 b ~ ? B gill I: 0 g ~ 0 ~ b b ... 71:
? bOO 0 ~ ? III
ACCOUNT I P.O. I INVOIGE I DESCRIPTION I AMOUNT .
213.46583.5101
State Deed Tax
Schlief Property
$273.90
.
CITY OF MONTI ELLO
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