HRA Agenda 06-06-2001
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AGE DA
MONTICELLO HOUSING AND R "DEVELOPMENT AUTHORITY
Wednesday, .June 6, 2001 - 7:00 p.m.
505 Walnut Stree - Bridge Room
Commissioners:
Chair Dan Frie, Vice Chair Brad Barger, Steve Andrews, Darrin Lahr, and
Bob Murray.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and L ri Kraemer.
Guests:
Brad Johnson, Lotus Realty Servic s, Inc.
Barry fluth, Masters Fifth ^ venue. Inc.
Pat O'Donnell, Smith & Associate
Mike Cyr, MLC Building and ReI odeling
Call to Order.
Consideration to approve the May 2, 2001 HRA minutes.
Consideration of adding or removing item from the agenda.
Consent Agenda.
^' Consideration to adopt a resolutim approving decertification of TIF District No.
1-12 (Aroplax).
B. Consideration to approve resehedu ing the July regular meeting date of the I IRA.
C. Consideration to approve a resoluti)n adopting the modification to the
Redevelopment Plan for Central M ntieello Redevelopment Project No.1; and
establishing TIF District No. 1-28 ithin Central Monticello Redevelopment
Project No.1 and adopting the TIF Plan therefor.
D. Consideration to approve autorization to enter into a Contract for Private
Development among the I-IRA, the City, and Integrated Recycling Technologies,
Inc.
5. Consideration to extend the effective date fthe Preliminary Development Agreement
hetween the I [RA and Barry fluth and to . uthorize drafting of the Contract for Private
Redevelopment.
6. Consideration of an update of the propose Front Street redevelopment project and
approve necessary action to proceed.
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7.
Consideration of an update of the propose Block 52 redevelopment projects and approve
necessary action to proceed.
8. Consideration of authorizing payment of n onthly HRA bills.
9. Consideration of Executive Director's Rep rt.
10. Committee Reports: Marketing, Brad Barg r.
11. Other Business.
12. Adjournment.
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MINU ES
MONTICELLO HOUSING AND R DEVELOPMENT AUTHORITY
Wednesday, May 2, 2001 - 7:00 p.m.
505 Walnut Street - Bridge Room
Members Present:
Chair Dan Frie, Steve Andr ws, Bob Murray and Council Liaison Brian
Stumpf
Members Absent:
Vice Chair Brad Barger an Darrin Lahr
Officers:
Executive Director Ollie K ropchak and Recorder Lori Kraemer.
Guests:
Mike Cyr, MLC Building Remodeling, Inc.
1 . Call to Order.
Chair Dan Frie called the meeting to orderat 7 pm.
2.
Consideration to a rove the II RA minute of A ri I 4 2001.
[t was noted the motion of April 4 to appoint Steve Andrews to the Monticello
Community Center Advisory Board was s bject to research of the ordinance establishing
the Board. In doing the research. the ordil anee established reads: Board members are
appointed for three-year staggered terms. ob Murray was appointed by the Council for
a term ending December 2003. Also, the rdinance does not specify that a MCC member
must be representative of the liRA.
Therefore, A MOTION WAS MADE': BY TEVE ANDREWS TO AMEND AND
APPROVE TIIE MINUTES OF THE HR MEETING OF APRIL 4, 2001 TO READ:
liRA COMMITTEE APPOINTMENTS S MCP - STEVE ANDREWS AND
MARKETING COMMITTEE - BRAD B RGER.. MOTION WAS SECONDED BY
DAN FRIE. Motion carried with Bob Mu ray Abstaining.
3. Consideration to add or remove items fron the a Jenda.
Koropchak advised that Rich Cline was pr sent to approach the HRA members regarding
the house at 218 Front Street. This was pI ced with Item 5 on the agenda.
4. Consent Agenda.
A. Consideration to approve the Certi Icate of Completion for Cedrus Creek
Craftsman, Inc.
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HRA Minutes - 05/02/01
A MOTION WAS MADE BY STEVE A DREWS AND SECONDED BY BOB
MURRAY TO APPROVE THE CERTIFIATE OF COMPLETION OF THE
CONTRACT FOR PRIV ATE REDEVEL PMENT BEI'WEEN THE I IRA AND
CEDRUS CREEK CRAFTSMAN, INC. otion carried unanimously.
5.
Consideration ofu. date and action relativ to a ortion/whole of Blocks 54 and 64 all
located within TIF District No. 1-22.
. Ollie Koropchak, Executive Direct 1', updated the members regarding the
Preliminary Development Contrac which has been executed by Hans Hagen and
noted that the $5,000 deposit fee as submitted. A project description was
provided. WSB, Inc. has provided information relative to street elevations as
req uested.
. Koropchak stated that the HRA di close on the Bostic property on Monday,
April 30,2001. Howcver, to obtai1 legal or clear title, it is necessary to go
through quiet title action. It appe" s we can get on the court calendar and still
demolish after June 15,2001, and he seUcr is responsible for clear title. Public
Works requested to cheek out und rground fuel tank, 48-hour notice of
authorization obtained. Koropeha advised that they did do the testing and it
appears to be okay.
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Koropchak advised that they have not obtained a signed purchases agreement on
the O'Connor property at this tim , but a target date to close is set for May 31,
2001, and the attorney has ordere the abstract updated. Koropchak addcd that
they are hoping to reach an agreerr ent but have not yet heard back from Mr.
O'Connor regarding his business ( vidence of incomc tax). We received a
counter-oiTer from O'Connor via is attorney requesting to rcmain in house
another year, relocation benefits f l' his business, to move the house, and other
items. Response: Planned c10sin date and possession date, May 31,2001;
business relocation compensation 1egotiated upon evidence of business income
tax filed; and no to moving the hOlse. Other minor adjustments made to the
purchase agreement. Purchase pI' ce $130,352.
. Rich Cline, City Public Works employee, inquired as to the possibility of
acquiring and moving the O'C0111 or house to restore and fix-up. Koropchak
advised the members that she and Chair Frie had previously made an executive
decision to reaffirm the HRA 's di ection to allow the fire department to use
homes for test burn. The HRA m 1st keep in mind the objective of a
redevelopment district is to remo e substandard structures, not move substandard
structures.
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Rich Clinc approached thc HRA rn mbers to reconsider their dccision and statcd
that he had worked diligently to w rk on plans to get the house moved, had
spoken to a movcr who stated hcould need 3 days to move thc housc, had
gotten some estimated costs, and h d initially wanted to bring a letter from his
bank stating he has sufficicnt finan'es to acquirc and move this housc, but timc
did not pcrmit this. He also statcd I e had spokcn to a member of the Fire
Dcpartment regarding their request to test burn all three houses and was advised
that it would bc acceptable to them to get two of the three houses. He also stated
he felt this house was structurally. ound cnough to warrant moving.
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Frie asked where Cline would pro ose to move thc house to and he stated that it is
not his intention to move it to anot ler location in Monticello just to crcate anothcr
blight and also noting he has not fund a lot in Monticcllo at this point but had
been looking at possibly moving it to Clearwater, although he statcd he would like
to keep it in town and his intentions are to fix it up so it is not a blight. hie stated
that this had been discussed at the revious mceting and that they felt they didn't
want to move the house due to a ti e line as well. Koropchak also provided
information from the owncr's alto .ney asking to allow the O'Connor's to rent the
house attcr the closing date, but al 0 noting they did realize the City was not
willing to do this. Koropchak stat d thc Attorncy's question was what is the
City's intent of the house, stating t lC client's intent would be to moving thc house
to another property if the City wotld not bc razing it.
It was discussed that the HRA wo Id have to advertise thc housc ft)r sale if they
so chose to which would involve public hearing, and this would still havc to be
done by June 30, ifat all possible. If the HRA's intcrest is still having the Fire
Department tcst burn, the Buildin Official stated this may not be a good location
due to the number of large trees a d the need to preserve them. Murray asked
Cline ifhe had determined the cos, s to bring the house up to code and he stated he
had, and also that he does most of lis own work. Again Cline stated that if there
was a chance in moving the house out of there he would like to have a chance at
doing so. Cline noted some savin's in him moving the house rather than the City,
noting the need to getting rid of al the debris if it cannot be burned. Koropchak' s
concern is that the O'Connor's ha asked the same question and she had told them
no.
Brian Stumpf stated he was a liltl afraid of them going back to the Attorney at
this time without the purchase agr ement signed. The members felt it was
premature to make a decision oft is kind at this time. Frie stated the HRA could
not act on this without a purchase agreement, stating the !-IRA's goal of
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redevelopment, not buying and sell 'ng homes, Frie added that the HRA may be
able to look at this again at a later dote. Murray stated that if this structure were to
be made livable, it would be less expensive to renovate the house versus building
new. He also asked how long it wo lid take to come to an agreement with the
O'Connor's and Koropchak advise they do not know at this time. Koropchak
also stated that the Building OfficiI had stated that the structure was substandard
and therefore qualified for TIF assi tance. Again, they stated that the hOLlse is
structurally sound.
The HRA asked Cline ifhe would e able to move on this in a short period of
time if it was the decision of the H to allow the house to be moved, and he felt
he could, stating he would do what he could. Steve Andrews stated that Cline
may be bidding against others at a ublic hearing, no guarantees, and he stated he
understood that and was still intere'ted. It was advised that this will be looked at
again next month at the HRA's JUle meeting.
A MOTION WAS MADE BY BOB MU RAY AND SECONDED BY STEVE
ANDREWS TO ADOPT A RESOUJTIO REQUESTING A LOAN FROM THE CITY
TO ACQUIRE THE 218 FRONT STREE PROPERTY. Motion carried unanimously.
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Koropchak advised that she had ta ked with Larry Schlief about the HRA' s plan
to pay-off the Contract for Deed D r the property located at 3 Walnut Street.
Assuming the I-IRA has a signed P lrchase Agreement on the O'Connor property,
the remaining principal balance as of August 2000 which is $61,619.43 would
need to be paid. Public Works re uested to check property after tenants \cft. The
Public Works Department wants t. e garage as they re-roofed it, and also
requested the furnace and water hater for Public Work's use as they are fairly
new. i
A MOTION WAS MADE BY BOB MlJ , RAY AND SECONDED BY STEVE
ANDREWS TO ADOPT A RESOLUrI N REQUESTING A LOAN FROM THE CITY
TO PA Y OFF THE CONTRACT FOR D!:ED ON THE 3 WALNUT STREET
PROPERTY. Motion carried unanimousy.
Koropchak stated she will put this item n the City Council agenda for May 14,200 I.
. Koropchak authorized Rod Drags en to complete an appraisal of the raw land only
on the Carlson property. This to stablish a selling price of the raw land in
anticipation of selling the land to he City in 2002.
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BRA Minutes - 05/02/01
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The Feasibility Study authorized b the City Council for replacement ofthe
water/sewer lines and street was ac epted by the Council on April 23. However,
the Council did not call for plans a d specs as this as it may be premature without
a signed Purchase Agreement on th O'Connor property. However, it appears
staff may now view this as a devel pment improvement and not a replacement
improvement which means a differ nt assessment policy. Cost $146,193.35
including 10 lot extensions.
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Per Hans Hagen's project descripti n it appears he's looking for the lIRA to
demolish and this needs to be wor ed on. Timing with Fire Department is
critical. Koropchak advised that g nerally the City does not provide building pads
but a clean site. She noted that Ha en is looking to the City to the demolitions
and Koropchak has moved fl)fWar on drawing up the requests for proposals.
This assumes demolishing the stru tures, not burning. Steve Andrews asked if
this was indeed helping the Fire D partment by giving them these houses for
burning and he stated absolutely. hey again discussed the trees there and if they
could be saved, Scott Douglas wo ld have to look at this. Koropchak asked if the
Fire Department would be okay with 1 or 2, and he stated yes. They also
discussed asbestos and he stated tl t is worked out through Anoka Tech. Dan
Frie stated that the trees may be destroyed anyway when town houses are put in
but Koropchak stated that the tree near the apartment site would be saved as far
as she knew. She also said they w uld need cleanup after a burn as well and then
request f(x proposal may need to be revised. Can address this at the June meeting.
6. Consideration to summarize the direction f Cit Council for redevelo ment of I3lock 52
and outline plan to proceed.
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Koropchak noted that Jeff O'Neill had ta en the minutes at that meeting and are not
available at this time. She also thanked Dan Fire and Steve Grittman for keeping the
meeting on focus. The workshop provide i a good exchange of information and
discussion between key players: property )wners, potential developers, TIF counsel,
planning, Council, and I-IRA.
Summary of direction to HRA from COUI cil:
"Work with interested property owners. ot interested in condemnation.
Appears good start. Proceed with part or '111 of Block 52 as long range.
Evaluate progress at end of year for need 0 pursue Legislative extension.", meaning that
Steve Bubul had advised htat there are ot er communities that are in the same situation,
not able to spend the TIF dollars in that tille frame & had gone to the Legislature for an
extension and Bubul felt it was a 50/50 cl ance.
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HRA Minutes - 05/02/01
Mayor - Not interested in reducing parkin space. Go ahead with redevelopment. Mixed
use of retail, office and housing OK.
Herbst - Start with interested seller like .10 nson. No reduction in parking.
Stumpf - Explore all of Block 52. Not int rested in condemnation.
Carlson - Agrees perhaps the useful life of the building are at end. Northwest corner
parking lot not convenient location as a pa king lot today. An improved plan for the use
of the (wer-all existing public parking sho Id be considered. Move forward.
Parking was the big issue, in all likelihood anything done in that area would need
extended property. llis impression is that he city council wants them to work with
owners in that area who may be interested in redevelopment. Their feeling is that we
would use TIP for a start up but not neeess rily for all of it, to get a project going and
then maybe private redevelopment take 0 er from there. Stumpf stated that maybe the
existing owners have an idea of what they'd like to see done in the future with their
property. Koropchak proceeded in calling property owners (some), left voice mails with
several, no calls back yet, have arranged a neeting with the proposed project and some of
the owners, have a party of who is interest d in this project, what is owners Hexibility in
location and how they tit in/options. Frie, tated that possibly at the next monthly meeting
they would have more information.
Pat Sawatzke, business owner, asked whatithe process is to get on the agenda and present
a project to the HRA. It was noted to Saw tzke by Dan Frie that Koropchak had only
contacted people on Block 52 at this point, some others have also stated they would like
to discuss options. hie stated questions that would be asked such as what the property
owner's interest is, arc they willing to part cipate and would they like to meet. Sawatzke
states that possibly some private development would occur as a result of these meetings.
He also appreciated that the members wer listening to their concerns.
Koropehak provided an outline of the plan to proceed as follows:
Who's in and who's out?
I. Frie and Koropchak to talk with intere, ted party owners: Poirier, Johnson, and
Ileaton.
2. Call Barney Gustafson for meeting of i terest.
3. Call others Kjellberg, Springborg, and'roslie.
4. Inter-grade Cyr project.
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At a previous HRA meeting, the Executive Director's report indicated the Economic
Development Goals for 200 I included the 'ity of Monticello to explore combining the
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HRA Minutes - 05/02/0 I
powers of the HRA and EDA. The coml issioners were asked at that time to give some
thought ahout the idea for discussion at a I tel' meeting. The BDA discussed the items at
their annual meeting of April 24, 200 I. A report of their discussion was presented. The
following arc advantages and disadvantag s discussed hy staff.
Advantages
Simplicity (one stop for developer.)
Improves communication with Council
assuming EDA would prevail.
One less meeting fiJr staff.
EDA expand powers for development.
Hopefully improves attendance.
Koropchak noted that she had spoken with
EDA can own and rent, EDA can levy, hut
noted the lIRA is morc complex, harder to
Disadvantages
Less puhlic participation.
HRA has power to levy.
Reduces checks and balances
as was original reason.
TIF more complex.
eff O'Neill as staff. She advised that the
he liRA has more independencc. She also
nderstand.
EDA felt the meetings would gct too long, vcn though it would cut the numbcr of
mcctings down; discussed to improve atten ance may change meeting time to 2 pm or 4
pm, asked Rick Wolfsteller to look into bac 'ground of what was previously discussed
regarding a merge. Decision maker would e the Council.
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Dan Frie stated he felt the city council shall d do whatever they want, he has no feelings
either way. Koropchak stated it may notjLLt be what the individuals lee I, but how does
this all work, legal, mechanical. Frie also satcd long agendas (my not make good
decisions ifmeetings get too long). Murra asked why the JIRA couldn't approach the
EDA by offering them properties the HRAeels interested in, he also stated that if this
was not fiJr the same functions, they should lot be combined. Koropchak advised of all
the differences. FDA was established JlJr se ting up industrial loans, but from MN
Statutes point, their powers can be greater.
Steve Andrews qucstioncd where the push t mergc was coming fl:om. Koropchak
advised that it canle hom when sitting down each year and looking at the roles of the
lIRA and FDA with .lefT O'Neill who had b ought this matter up and Celt it needed to be
researched. O'Neill also had had some disc ssions with the previous chair and it nlay
have come as a suggestion from hinl as well. Andrews stated this was talkcd about
previously, hut that it came hack now and Iw doesn't understand why. Koropchak
advised that she needed comments showing 'he has explored and researchcd this matter
to hring hack to O'Ncill. Frie stated he was. illing to absorb the FDA, but Murray
advised the length of the meetings again. M Irray also asked if we are duplicating efforts
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HRA Minutes - 05/02/01
and Koropchak stated no stating that the HRA does TIF and redevelopment, the EDA
handles industrial loans. Murray states if e arc not duplicating any efforts, we should
keep them separate. Andrews states he do s not want to have this item come back again
and again, stating he is not interested, nor as anyone else.
8.
Consideration to authorize payment ofthe monthly 11 RA hills.
A MUrION WAS MADE BY BOB MURAY AND SECONDED BY STEVE
ANDREWS '1'0 PAYMENT OF Tl-IE M( NTHL Y HRA BILLS. Motion carried
unanimously.
9. Consideration of Executive Director's Re
Amoco site - Brad meeting with restaurant owner on Tuesday. Bjorklund selling price
$170,000. Council accepted preliminary c )ncept for use of l' If. WAC/SAC to be
assessed and parking yet to be addressed. oropchak advised that this was brought up to
the counci I, Brian Stumpf was upset that tl e WAC/SAC and parking had not been
resolved. Getting closer. Also, John Sim la stated someone had been doing somc tcsting
there.
St. Henry's - Preliminary concept f()f use fTIF accepted. Concerned ahout amount of
TIF and number of years. (Number of TIF District in City). Komarek working with St.
Ilenry's. Council has concerns about this t keep a watch on the amount of l' IF we arc
doing, number of districts, feeling is that e arc getting quite a few TIF districts.
Scattered Housing Grant - Word has been eceived that the Monticello application for a
$500,000 grant from the MHFA was not a arded to Monticello. The intent is to re-
submit the application at the next round of applications. She spoke with Shari who stated
there were lots of appl icants, basically ran ut of money, she said we may do this for first
time home buyers and that if we would ha e stated that, it may have been a stronger
application. Next round is in July, Shari h IS concerns about construction season, would
definitely come hack to the HRA before re 'uhmitting.
Small Machine Shop out of Eden Prairie - rhree employees at $20 per hour without
benefits. Looking to construct 8,000 to 10 000 sq 11. metal/wood hame structure.
Referred him to Lake Tool for land acquis'tion. Did not market TIF, only loan program.
They have 3 lots in the second addition, blt heard that they may have sold one of them.
St. Hens - St. Bens suhmitted the necessar inf(mnation as cvidence for this TlF Housing
District to remain a "Qualified Housing District." This means there is no LGA Penalty or
Local Match for the City. The 60-unit ind pendent facility has 39 units occupied with 24
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!-IRA Minutes - 05/02/0 I
of those units meet the income and rent Ie els necessary f(x a qual i fied housing district.
IRTI - Decision on lender not made. Final and preliminary plat on Council agenda June
11, 2001. Waiting on submission of TIF P an to Wright until further moved along.
Freedom Development, Inc. - David Bell c lied and requested to be on the May lIRA
agenda f(x acquisition and '1'1 F assistance for development of the Country Club Manor
property. As you will recall, a few years go he and David Hornig presented proposals
to the City Council for development. This in response to the City's request for
proposals. Bell requested TIF and Hornig id not. Neither project proceeded. Mr. Bell's
current idea is to construct 75 - 80 owner- ccupied market rate and affordable
townhomes. Selling price $115,000-$120, 00 for affordable units. At City site review,
Administrator Wolfsteller indicated he ha received two other telephone calls from
developers interested in acquiring the prop rty. At this point, no mention ofTIF. Mr.
Bell was informed that Mr. Wolfsteller wi 1 request the City Council to authorize again
going out for request for proposals. 'fhis s'heduled for the May 14 Council meeting;
therefore, it is premature for Mr. Bell to at end the HRA meeting. Given the Council's
concern relative to the number of TIF Dist icts, the HRA authorized a Housing Plan, and
the interest of developers in the property; , IF may not be the answer. Technically the
HRA owns the property; however, previo s HRA commissioners authorized the Council
to manage and benefit from the property. arket rate atTordable townhouses.
10.
Committee Reports:
MCP - Steve Andrews: Nothing to report
MCC . Bob Murray: Things are going vel' well.
Marketing is meeting this Friday per Koro chak; she also noted she had been to Big Lake
earlier that day and they had asked for insi rht regarding downtown redevelopment.
] 1. Other Business. None
] 2. Adjournment.
A MOTION WAS MADE BY S'fEVE A DREWS AND SECONDED BY BOB
MURRAY TO ADJOURN THAT MEET NG AT 8 PM. Motion carried unanimously.
HRA Chair
Recorder
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4A.
Consideration to ado t resolution decer'f in
A. Reference and Background:
HRA Agenda - 6/6/01
TIF District No. 1-12 was certified as a ten year Economic District in 1991 to assist with
the land write-down and site improvement costs for the Aroplax Corporation project. Up-
front assistance is the amount of $85,000. Required decertification date is June 10,2001.
It is expected the HRA will receive tax inc cment for the first-half of2001. Assuming
the HRA receives tax increment for the fir. t-half of2001 and the HRA receives the tax
increment deficiency payments of2001 an 2002, the district will cash-flow. The
deficiency resulted from the reduction in c assification rates in 1998 and 1999 and the
one~year delay of the construction.
B. Alternative Action:
1. ^ motion to adopt a resolution dec rtifying TIF District No. 1-12 (Aroplax).
2. A motion to deny adoption of the r solution decertifying TI F District No. 1-12
(Aroplax).
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A motion to table any action.
C. Rccommendation:
Alternative No.1. Required by the Statut s. Housekeeping item.
D. Supporting Data.
Copy of resolution for adoption.
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HOUSING AND REDEVEL PMENT AUTHORITY
IN AND FOR THE CITY F MONTICELLO
ST ATE OF MI NESOT A
Resolution No.
BEING A RESOLUTION APPROVING HE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. -12 OF THE CITY OF MONTICELLO.
WHEREAS, on June 10. 192.L the Housing nd Redevelopment Authority (the
"Authority") in and for the City of Monticello (the' City") created Tax Increment Finance
District No. 1-12 (the "District") within the Centr I Monticello Redevelopment Project No. 1
(the "Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the
District have been pledged have been paid in full 0 defeased and all other costs of the Project
have been paid; and
WHEREAS, the Authority by this resolution to cause the decertification of the District after
which all property taxes generated by property wit in the District will be distributed in the same
manner as all other property taxes.
NOW TI-IEREFORE, BE IS RESOL VED by tl e Commissioners of the Housing and
Redevelopment Authority in and for the City ofM nticello. Minnesota, that staff shall take such
action as is necessary to cause the County Auditor f Wright County to decertify the District as a
tax increment district and to no longer remit tax in rement payable 2001 from the District to the
City.
DATED:
June 6, 2001
(Seal)
HOUSING NO REDEVELOPMENT AUTHORITY
IN AND FO THE CITY OF MONTICELLO
Chair
ATTEST:
Executive Director
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4B.
Consideration to a
A. Reference and Backl!round:
liRA Agenda - 6/6/01
ular meetin date ofthe HRA.
Due to the fact the regular meeting date of he lIRA falls on Wednesday, July 4, it is
suggested to reschedule the meeting date to the following Wednesday, July 11, 200 I,
7:00 p.m.
B. Alternative Actions:
1. A motion to approve rescheduling t e HRA meeting from July 4,2001 to July 11,
2001.
2. A motion to deny rescheduling the RA meeting from July 4,2001.
3. A motion of other suggestion.
C. Recommendation:
Alternative No. 1
D.
Supportin~ Data:
None.
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4C.
HRA Agenda - 6/6/0 1
e.
A. Reference and backl!round:
Sometime ago, the liRA and Council appr ved the preliminary concept for TIF
assistance for the Integrated Recycling Technologies, Inc. project. A public hearing for
establishment of TIF District No. 1-28 has been called for June 11, 200 I by the City
Council. The TIF Plan was distributed to the taxing jurisdictions on May 10,2001, for
compliance with the 30-day notice to com ent. The Planning Commission approved the
final plat and TIF resolution on June 5. T e City Council has elected to make the up-
front local 10% contribution in the amoun of $9,000 (WAC/SAC fees). Attorney Dan
Greenswcig, Kennedy & Graven, has draft d the Contract for Private Development (next
item) and theEDA loan closing document . The committed lender is 21 th Century Bank
in Rogers, MN. The HRA received letter from the lender relative to the "but for" test
and lender commitment and the credit wo hiness of the company. A copy of the land
purchase agreement has been provided. owever, at this time, the City has received no
building or site plans from the contractor r review.
As you recall the project will create 5 new jobs for Monticello ranging between $12 to
over $18 per hour excluding benetits and onstruct a 10,000 sq ft metal with brick trim
office/manufacturing facility. Constructi n is expected to commence mid to late June.
B. Alternative Action:
1. A motion to approve the resolutiOl adopting the modfication to the
Redevelopment Plan for Central onticello Redevelopment Project No.1; and
establishing TIF District No. 1-28 within Central Monticello Redevelopment
Project No. 1 and adopting the TI Plan therefor.
2. A motion to deny approval oUhe esolution ..........
3. A motion to table any action.
C. Recommendation:
Recornmendation is alternative no. 1
HRA Agenda - 6/6/01
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D.
Suooortin2 Data:
Copy of resolution for adoption and excerp s of the TIF Plan.
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MONTICELLO HOUSING AND R DEVELOPMENT AUTHORITY
CITY OF MO TICELLO
WRIGHT C UNTY
STATE OF MI NESOT A
RESOLUTION N
RESOLUTION ADOPTING
REDEVELOPMENT PLAN
REDEVELOPMENT PROJECT NO.
INCREMENT FINANCING DISTRIC
MONTICELLO REDEVELOPMENT PR
T AX INCREMENT FINANCING PLAN T
MODIFICATION TO THE
CENTRAL MONTICELLO
1; AND ESTABLISHING TAX
NO. 1-28 WITHIN CENTRAL
JECT NO. 1 AND ADOPTING THE
EREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Monticello Housing and Redevelopment Authority (t e "HRA") and the City of Monticello (the "City")
that the !-IRA adopt the Modification to the Redevelo ment Plan for Central Monticello Redevelopment
Project No. 1 and establish Tax Increment Financing District No. 1-28 and adopt the Tax Increment
Financing Plan therefor, (collectively, the "Plans"), all pursuant to and in conformity with applicable law,
includ ing Minnesota Statutes, Sections 469.001 thr ugh 469.047, and Sections 469.174 to 469.179,
inclusive, as amended (the "Act"), all as reflected in th Plans and presented for the Board's consideration:
and
WHEREAS, the HRA has investigated the fa ts relating to the Plans and has caused the Plans to
be prepared: and
WHEREAS, the HRA has performed all act ons required by law to be performed prior to the
adoption of the Plans. The HRA has also requested t le City Planning Commission to provide for review
of and written comment on Plans and that the COUI cil schedule a public hearing on the Plans upon
published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Boa d as follows:
1. The HRA hereby finds that Tax Inc ement Financing District No. 1-28 is in the public
interest and is an "economic development district" Ul der Minnesota Statutes, Section 469.174, subd. 12,
and tinds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need
to develop an area of the State of Minnesota whic 1 is already built up and that the adoption of the
proposed Plans will help provide employment opp rtunities in the State and in the preservation and
enhancement of the tax base of the City and the Stat because it will discourage commerce and industry
from moving their operations to another state or municipality and thereby serves a public purpose.
2. The HRA further finds that the Plan will afford maximum opportunity, consistent with
the sound needs for the City as a whole. for the de elopment or redevelopment of the project area by
private enterprise in that the intent is to provide only that public assistance necessary to make the private
developments tinancially feasible.
3. Conditioned upon the approval thereof by the City Council following its public hearing
thereon. the Plans. as presented to the HRA on this ate, are hereby approved. established and adopted
and shall be placed on file in the office of the City Cl rk.
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4. Upon approval of the Plans by the Ci y Council, the staff, the HRA's advisors and legal
counsel arc authorized and directed to proceed with th implementation of the Plans and for this purpose
to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions,
documents and contracts necessary for this purpose. pproval of the Plans does not constitute approval
of any project or a Development Agreement with any eveloper.
5. Upon approval of the Plans by the Cit Council, the City Clerk is authorized and directed
to forward a copy of the Plans to the Minnesota Depa ment of Revenue pursuant to Minnesota Statutes
469.175, subdivision 2.
6. The City Clerk is authorized and dire ted to forward a copy of the Plans to the Wright
County Auditor and request that the Auditor certify th original tax capacity of the District as described in
the Plans, all in accordance with Minnesota Statutes 4 9.177.
Approved by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this day of ,200 I.
ATTEST:
Secretary
Chair
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SEC~ ON /I
TAX INCREMENT FINANCING P AN FOR TIF DISTRICT NO. 1~28
Subsection 2-1. Foreword
The Monticello Housing and Redevelopment Autho ity (the "HRA"), the City of Monticello (the "City")
staff, and consultants have prepared the following inti rmation to expedite the establishment of TIF District
No. 1-28 ("the District"), an economic developmen tax increment financing district, located in Central
Monticello Redevelopment Project No.1.
Subsection 2-2. Statutory Authority
Within the City, there exist areas where public i volvement is necessary to cause development or
redevelopment to occur. To this end, the HRA a d City have certain statutory powers pursuant to
Minnesota Statutes ("MS. ''), 469.00 I through 469. 0 7, inclusive, as amended, and MS., Sections 469.174
through 469.179, inclusive, as amended (the "Tax I crement Financing Act" or "TIF Act"), to assist in
financing public costs related to this project.
This Section contains the Tax Increment Financing Plan (the "Plan") for TIF District No. 1-28. Other
relevant information is contained in the Modificatio to the Redevelopment Plan for Central Monticello
Redevelopment Project No.1.
Subsection 2-3. Statement of Objectives
The District currently consists of one parcel of land nd adjacent and internal rights-of.-way. The District
is being created to facilitate 10,000 s.f. structure for ntegrated Recycling Technologies, lnc.'s production
and office space in the City of Monticello. Contra ts for this have not been entered into at the time of
preparation of this Plan, but the date when develop ent is likely to occur is 2001. This Plan is expected
to achieve many of the objectives outlined in the Redevelopment Plan for Central Monticello
Redevelopment Project No.1.
The activities contemplated in the Modification to t e Redevelopment Plan and the Plan do not preclude
the undertaking of other qualified development or red velopment activities. These activities are anticipated
to occur over the life of Central Monticello Redeve opment Project No. 1 and the District.
Subsection 2-4. Redevelopment Plan Ove
I. Property to be Acquired - Selected prope located within the District may be acquired
by the HRA or City and is further describe in this Plan.
2. Relocation - Relocation services, to the ext nt required by law, are available pursuant to
MS.. Chapter I I 7 and other re levant state nd federal laws.
3. Upon approval ofa developer's plan relating 0 the project and completion ofthe necessary
legal requirements, the BRA or City may s II to a developer selected properties that they
may acquire within the District or may lease land or facilities to a developer.
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4. The HRA or City may perform or provi e for some or all necessary acquIsItion,
construction, relocation, demolition, and req ired utilities and public streets work within
the District.
5. The City proposes infrastructure facilities ithin the District, no additional open space
within the District, no environmental contro s specific to the District, proposed reuse of
private property as a manufacturing facility, a d continued operation of Central Monticello
Redevelopment Project No.1 after the capit I improvements within Central Monticello
Redevelopment Project No. 1 have been co pleted.
Subsection 2-5.
Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent ights-of-way identified by the legal description (the
parcel is to be known as) listed below. The Coun has not issued a parcel number at this time, but is
expected to do so before the District is certified. A S e the map in ,Appendix B for further information on
the location of the District.
Parcel umber
A 2.00 acre portion 0 PID 155-011-000171
A private developer currently owns the property in he District.
. Subsection 2-6. Classification of the Distri
The HRA and City, in determining the need to creat a tax increment financing district in accordance with
MS, Sections 469.174 to 469.179, as amended, in lusive, find that the District, to be established, is an
economic development district pursuant to MS, Se tion 469.174, Subd. 12 as defined below:
"Economic development district" means a type of tax increment financing district which consists of
any project, or portions of a project, not meting the requirements found in the definition of
redevelopment district, renewal and renovatio district, soils condition district, or housing district,
but which the authority finds to be in the public interest because:
(1) it will discourage commerce, indu try, or manufacturing from moving their
operations to another state or municip lity; or
(2) it will result in increased employment n the state; or
(3) it will result in preservation and enha cement of the tax base of the state.
The District is in the public interest because it will eet the statutory requirement from clause 2.
Pursuant to MS, Section 469.176, Subd. 4c reve ue derived from tax increment from an economic
development district may not be used to provide mprovements, loans, subsidies, grants, interest rate
subsidies, or assistance in any form to developments onsisting of buildings and ancillary facilities, if more
than 15 percent of the buildings and facilities (dete nined on the basis of square footage) are used for a
purpose other than:
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(1) the manufacturing or production of tangible ersonal property, including processing resulting
in the change in condition of the property;
(2) warehousing, storage, and distribution ofta gible personal property, excluding retail sales;
(3) research and development related to the act vities listed in items (1) or (2);
(4) telemarketing if that activity is the exclusiv use of the property;
(5) tourism facilities; or
(6) qualified border retail facilities;
(7) space necessary for and related to the activi ies listed in items (1) to (6)
In meeting the statutory criteria the HRA and City r Iy on the following facts and findings:
The facilities in the District meet the conditions of urposes 1,2, and 7.
The District is being created to assist in the cons ruction of a manufacturing facility for Integrated
Recycling Technologies, Inc. The proposed facility ill be used for recycling platinum group metals from
spent auto catalyst and related activities.
Pursuant to 469.176 Subd. 7(a), the City may reque t inclusion in Tax Increment Financing District No.
1-28 and the County Auditor may certifY the origi al tax capacity of a parcel or a part of a parcel that
qualified under the provisions of273.111 or 273.11 or chapter 473H for taxes payable in any of the five
calendar years before filing of the request for certifi ation only for
(1) a district in which 85 percent or more of the planned buildings and facilities (determined on the
basis of square footage) are a qualified manufac uring facility or a qualified distribution facility or a
combination of both; or
(2) a qualified housing district as defined in ~ 2 3.1399, subdivision 1.
(b) (I) A distribution facility means buildings and ther improvements to real property that are used to
conduct activities in at least each of the followil g categories:
(i) to store or warehouse tangible personal p operty;
(ii) to take orders for shipments, mailing, or delivery;
(iii) to prepare personal property for shipme t, mailing, or delivery; and
(iv) to ship, mail, or deliver property.
(2) A manufacturing facility includes space use for manufacturing or producing tangible personal
property, including processing resulting in the ch nge of condition of the property, and space necessary
for and related to the manufacturing activities.
(3) To be a qualified facility, the owner or opera ,or of a manufacturing facility must agree to pay and
pay 90 percent or more of the employees of the acility at a rate equal to or greater than 160 percent
of the federal minimum wage for individuals ov r the age of20.
District No. 1-28 does contain a portion of a parcel that qualified under the provisions of Section 273.111
or 273.112 of Chapter 473H for taxes payable in an of the five calendar years before the filing of the
request for certification of Tax Increment Financing istrict No. 1-28. The facility will assisted by District
No. 28 is a manufacturing facility and the developer as agreed to pay and pay 90 percent or more of the
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employees of the facility at a rate equal to or greate than 160 percent of the federal minimum wage for
individuals over the age of20.
Subsection 2.7. Duration of the District
Pursuant to MS, Section 469_175, Subd. 1, and MS, ection 469.176, Subd. 1, the duration of the District
must be indicated within the Plan. Pursuant to MS, S ction 469.176, Subd. 1 b, the duration of the District
will be 8 years after receipt of the first increment by t e HRA or City, The date of receipt by the City of
the first tax increment is expected to be 2003. Th s, it is estimated that the District, including any
modifications of the Plan for subsequent phases or oth r changes, would terminate after 2011, or when the
Plan is satisfied. If increment is received in 2002, the term of the District will be 2010, The HRA or City
reserves the right to decertify the District prior to the legally required date.
Subsection 2-8. Original Tax Capacity, Tax R te and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Pia ned Improvements
Pursuant to MS, Section 469.174, Suhd. 7 and M ,Section 469.177, Subd. 1, the Original Net Tax
Capacity (ONTC) as certified for the District will be b sed on the market values placed on the property by
the assessor in 2000 for taxes payable 2001.
Pursuant to M.S., Section 469.177, Suhds. 1 and 2, the ounty Auditor shall certifY in each year (beginning
in the payment year 2002) the amount by which the 0 iginal value has increased or decreased as a result
of:
I. change in tax exempt status of property;
2. reduction or enlargement of the geographic b undaries of the district;
3. change due to adjustments, negotiated or cou -ordered abatements;
4. change in the use of the property and classific tion;
5. change in state law governing class rates; or
6. change in connection with previously issued uilding permits.
In any year in which the current Net Tax Capacity valu ofthe District declines below the ONTC, no value
will be captured and no tax increment will be payable 0 the HRA or City.
The original local tax rate for the District will be the I
request for certification is made before June 30, 200 I.
Tax Rate for the District appear in the table below.
cal tax rate for taxes payable 2001, assuming the
he Original Tax Capacity and the Original Local
Pursuant to MS., Section 469.174 Subd. 4 and MS., ection 469.177, Subd. /,2, and 4, the estimated
Captured Net Tax Capacity (CTC) of the District, with n Central Monticello Redevelopment Project No.
I, upon completion of the project will annually approximate tax increment revenues as shown in the table
on the following page. The HRA and City request 100 ercent of the available increase in tax capacity for
repayment of its obligations and current expenditures, b ginning in the tax year payable 2003. The project
tax capacity listed is an estimate of values when the pr ~ect is completed.
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Project Estimated Tax Capacity upon Completion (PTC)
15,160
Original Estimated Net Tax Capacity(ON C)
Estimated Captured Tax Capacity (CTC)
Original Local Tax Rate
Estimated Annual Tax Increment(CTC x ocal Tax Rate)
Percent Retained by the HRA
2,160
13,000
1.28606
16,719
Pay 2001
100%
Pursuant to MS, Section 469.177, Subd. 4, the H shall, after due and diligent search, accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to MS.,
Section 469.175, Subd. 4, with a listing of all properti s within the District or area of enlargement for which
building permits have been issued during the eightee (18) months immediately preceding approval ofthe
Plan by the municipality pursuant to MS., Section 4 9.175, Subd. 3. The County Auditor shall increase
the original net tax capacity of the District by the ne tax capacity of improvements for which a building
pennit was issued.
The HRA is reviewing the area to be included in the District to determine if any building permits
have been issued during the 18 months immediat Iy preceding approval of the Plan by the City.
Subsection 2-9. Sources of Revenue/Bond d Indebtedness
Public improvement costs, acquisition, relocation, u ilities, parking facilities, streets and sidewalks, and
site preparation costs and other costs outl ined in the ses of Funds will be financed primarily through the
annual collection of tax increments. The HRA or C ty reserves the right to use other sources of revenue
legally applicable to the HRA or City and the Plan including, but not limited to, special assessments,
general property taxes, state aid for road maintenan e and construction, proceeds from the sale of land,
other contributions from the developer and investm nt income, to pay for the estimated public costs.
The HRA or City reserves the right to incur bonded ndebtedness or other indebtedness as a result of the
Plan. As presently proposed, the project will be manced by a pay-as-you-go note and/or interfund
loan/transfer. Additional indebtedness may be requ red to finance other authorized activities. The total
principal amount of bonded indebtedness or other ind btedness related to the use of tax increment financing
will not exceed $100,000 without a modification to t e Plan pursuant to applicable statutory requirements.
This provision does not obligate the HRA or City to i cur debt. The HRA or City will issue bonds or incur
other debt only upon the detemlination that such acti n is in the best interest of the City. The HRA or City
may also finance the activities to be undertaken purs ant to the Plan through loans from funds ofthe HRA
or City or to reimburse the developer on a "pay-as-y u-go" basis for eligible costs paid for by a developer.
The estimated sources of funds for the District are c ntained in the table on the following page.
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SOURCES OF FUNDS
Tax Increment
Local Contribution
PROJECT REVENUES
Interfund Loans/Transfers
TOTAL
$150,000
$15,000
$165000
$100,000
$265,000
TOTAL PROJECT AND FINANCI G REVENUES
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a pro osal to facilitate 10,000 s.f. structure for production
and office space. The HRA and City have determine that it will be necessary to provide assistance to the
project for certain costs. The HRA has studied the feasibility of the development or redevelopment of
property in and around the District. To facilitate the stablishment and development or redevelopment of
the District, this Plan authorizes the use of tax incre ent financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of unds associated with the District is outlined in the
following table.
USES OF FUNDS
Land/Building Acquisition
Site Improvements/Preparation
Public Utilities
Parking Facilities
Streets and Sidewalks
Administrative Costs (up to 10%)
Interfund Loans/Transfers
Loan Interest
TOTAL
$35,000
$20,000
$20,000
$20,000
$5,000
$15,000
$100,000
$50,000
$265,000
TOTAL FINANCING AND PROJEC COSTS
The above budget is organized according to the OSA eporting forms.
Estimated costs associated with the District are subject to change among categories without a modification
to this Plan. The cost of all activities to be considered r tax increment financing will not exceed, without
formal modification, the budget above pursuant to the pplicable statutory requirements. Pursuant to MS.,
Section 469.1763, Subd 2, no more than 20 percent of the tax increment paid by property within the
District will be spent on activities related to develop ent or redevelopment outside of the District but
within the boundaries of Central Monticello Redevelop ent Project No.1, (including administrative costs,
which are considered to be spent outside of the District subject to the limitations as described in this Plan.
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Subsection 2-11.
State Tax Increment Financing Aid (Local Contribution)
Pursuant to MS., Section 273.1399, for tax incre ent financing districts for which certification was
requested after April 30, 1990, a municipality inn rs a reduction in state tax increment financing aid
(RISTIF A) applied to the municipality's Local G vernment Aids (LGA) first and, Homestead and
Agricultural Aid (HACA) second, in an amount equ I to a formula based upon the equalized qualifying
captured tax capacity (QCTC) of the District.
Pursuant to MS., Section 273.1399, Subd. 6, the H or City may choose an option to the LGA-HACA
penalty. The District is exempt from the LGA- CA reduction if the HRA or City elects to make a
qualifying local contribution at the time of approvin the Plan. To qualify for the exemption in each year,
the HRA or City must make a qualifying local contrib tion to the project of a certain percentage. The local
contribution for an economic development distric is 10 percent. The maximum local contribution for
all districts in the City in any year is limited to two p rcent of the City's net tax capacity, after which point
the HRA or City must make an additional contributi n equal to the lesser of (a) 0.25 percent of the City's
net tax capacity or (b) 3 percent of tax increment re enues for that year.
The amount of the local contribution must be made 0 t of unrestricted money of the HRA or City, such as
the general fund, a property tax levy, or a federal r state grant-in-aid which may be spent for general
government purposes. The local contribution may n t be made, directly or indirectly, with tax increments
or developer payments. The local contribution mus be used to pay project costs and cannot be used for
general government purposes.
The HRA elects to make the annual local contribu ion to the project to exempt itselffrom the LGA-
HACA penalty. The HRA or City will pay for cos s of the project described in this Plan, in an amount
equal to 10 percent of annual tax increment for the istrict, subject to the limitations described above, in
any year in which such amount exceeds 2 percent 0 the City's net tax capacity. Such contribution may
be in form of either lump sum or annual payments (i addition to tax increment payments) towards costs
identified in this Plan or other costs related to that de elopment. The contribution may also be made in the
form of public improvements financed by the HRA r City or other unit of government with unrestricted
funds.
The City anticipates making its local contribution to\ards public utilities hook-up fee from the unrestricted
funds.
Subsection 2-12. Business Subsidies
Pursuant to M.S. Statutes 116J.993, Subdivision 3, the following forms of financial assistance are not
considered a business subsidy:
(I) a business subsidy of less than $25,000;
(2) assistance that is generally available to all usinesses or to a general class of sim ilar businesses,
such as a line of business, size, location, 0 similar general criteria;
(3) public improvements to buildings or lands owned by the state or local government that serve a
public purpose and do not principally ben fit a single business or defined group of businesses
at the time the improvements are made;
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(4)
redevelopment property polluted by conta in ants as defined in section 116J.552, subdivision
3;
assistance provided for the sole purpose of enovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts, provided that
the assistance is equal to or less than 50% of the total cost;
assistance to provide job readiness and tm ning services if the sole purpose of the assistance is
to provide those services;
assistance for housing;
assistance for pollution control or abateme t, including assistance for a tax increment financing
hazardous substance subdistrict as define under 469.174, subdivision 23;
assistance for energy conservation;
tax reductions resulting from conformity
workers' compensation and unemployme
benefits derived from regulation;
indirect benefits derived from assistance t educational institutions;
funds from bonds allocated under chapter 74A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organiz tion described in section 50 I (c) (3) of the Internal
Revenue Code of 1986, as amended throll h December 31, 1999;
assistance for a collaboration between a innesota higher education institution and a business;
assistance for a tax increment financing soils condition district as defined under section 469.174,
subdivision 19;
redevelopment when the recipient's invest ent in the purchase of the site and in site preparation
is 70 percent or more of the assessor's cu ent year's estimated market value;
general changes in tax increment financing law and other general tax law changes of a principally
technical nature.
Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
Funds from dock and wharf bonds issued
Business loans and loan guarantees of $7
Federal loan funds provided through the
Development Administration.
(5)
(6)
(7)
(8)
(9)
(10)
(11 )
(12)
(13)
(14)
ith federal tax law;
t compensation;
( 15)
(16)
(17)
( 18)
(19)
(20)
(21)
(22)
y a seaway port authority;
,000 or less; and
nited States Department of Commerce, Economic
The HRA or City is providing tax increment financ ng for the purpose of economic development or job
growth and therefore the provisions of MS., Sectio 116.1993 to 116.1994, which states that a local unit
of government granting financial assistance to a usiness for economic development or job growth
purposes, including tax increment financing, mus establish business subsidy criteria and approve a
business subsidy agreement with the business recei ing the assistance, do not apply.
Subsection 2-13. County Road Costs
Pursuant to MS., Section 469.175, Subd. I G, the cou ty board may require the HRA or City to pay for all
or part of the cost of county road improvements if the roposed development to be assisted by tax increment
will, in the judgement of the county, substantially in rease the use of county roads requiring construction
of road improvements or other road costs and if the oad improvements are not scheduled within the next
five years under a capital improvement plan or with n five years under another county plan.
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In the opinion of the HRA and City and consultants, he proposed development outlined in this Plan will
have little or no impact upon county roads. If the cou ty elects to use increments to improve county roads,
it must notifY the HRA or City within forty~five day of receipt of this Plan.
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions a sumes that the redevelopment contemplated by the
Plan would occur without the creation of the District. However, the HRA or City has determined that such
development or redevelopment would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0. Thl estimated fiscal impact of the District would be as
follows if the "but for" test was not met:
IMP ACT 01' TAX BASE
2000/2001 Estimated Captured
Total Net Tax Capacity (CTC) Percent of CTC
Tax Capacity Upon Completion to Entitv Total
Wright County 68,635,494 13,000 0.0189%
City of Monticello 13,854,411 13,000 0.0938%
Monticello ISD No. 882 18,950,539 13,000 0.0686%
I IMP ACT ON TAX RATES
2000/2001 Percent Poten tial
Extension Rates of Total CTC Taxes
Wright County 0.313110 24.35% 13,000 4,070
City of Monticello 0.365760 28.44% 13,000 4,755
Monticello ISD No. 882 0.586500 45.60% 13,000 7,625
Other (Hospital) 0.020690 1.61% 13.000 269
Total 1.286060 100.00% 16,719
The estimates listed above display the captured tax c pacity when all construction is completed. The tax
rate used for calculations is the 2000/Pay 200 I rate. he total net capacity for the entities listed above are
based on Pay 200 I figures. The District will be cert fied under the actual 2000/Pay 200 I.
Subsection 2-15. Supporting Documentation
Pursuant to MS. Section 469.175 Subd la, clause 7 he Plan must contain identification and description
ofstudies and analyses used to make the determinatio:l set forth in MS. Section 469.175 Subd 3, clause (2).
Following is a list of reports and studies on file at th City that support the authority's findings:
A list of applicable studies, if any, will be listed here prior to the public hearing.
,
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Subsection 2-16. Definition of Tax Increment Revenues
Pursuant to MS., Section 469. J 74, Subd. 25, tax increl ent revenues derived from a tax increment financing
district include all of the following potential revenue sources:
1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under
MS, Section 469. J 77;
2. the proceeds from the sale or lease ofprope , tangible or intangible, purchased by the authority
with tax increments;
3. repayments of loans or other advances ma e by the authority with tax increments; and
4. interest or other investment earnings on or from tax increments.
Subsection 2-17. Modifications to the Distric
In accordance with MS, Section 469. J 75, Subd. 4, ny:
1. reduction or enlargement of the geographi area of Central Monticello Redevelopment Project
No. 1 or the District;
2. increase in amount of bonded indebtedness 0 be incurred, including a determination to capitalize
interest on debt if that determination was n t a part ofthe original plan, or to increase or decrease
the amount of interest on the debt to be ca italized;
3. increase in the portion of the captured net tax capacity to be retained by the HRA or City;
4. increase in total estimated tax increment xpenditures; or
5. designation of additional property to be a quired by the HRA or City,
shall be approved upon the notice and after the dscussion, public hearing and findings required for
approval of the original Plan.
Pursuant to MS Section 469. J 75 Subd. 4(b), the geographic area of the District may be reduced, but shall
not be enlarged after five years following the date 0 certification of the original net tax capacity by the
county auditor. If an economic development distric is enlarged, the reasons and supporting facts for the
determination that the addition to the district me ts the criteria of MS, Section 469.174, Subd. 12,
paragraph (a), clauses (1) to (5), must be document d in writing and retained. The requirements of this
paragraph do not apply if (I) the only modification is elimination of parcel(s) from Central Monticello
Redevelopment Project No. 1 or the District and 2) (A) the current net tax capacity of the parcel(s)
eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's
original net tax capacity or (B) the HRA agrees that notwithstanding MS.. Section 469.177, Subd. 1, the
original net tax capacity will be reduced by no m re than the current net tax capacity of the parcel(s)
eliminated from the District.
The HRA or City must notify the County Audit r of any modification that reduces or enlarges the
geographic area of Central Monticello Redevelopm nt Project NO.1 or the District. Modifications to the
District in the form of a budget modification or an ex ansion ofthe boundaries will be recorded in the Plan.
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Subsection 2-18. Administrative Expenses
In accordance with MS., Section 469.174, Subd. 14, and MS, Section 469.176. Subd. 3, administrative
expenses means all expenditures of the HRA or City other Ihan:
I. amounts paid for the purchase of land;
2. amounts paid to contractors or others providi g materials and services, including architectural and
engineering services, directly connected wit the physical development of the real property in the
project;
3. relocati6n benefits paid to or services provi ed for persons residing or businesses located in the
project; or
4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to MS. Section 469.178; or
5. amounts used to pay other financial obligatio s to the extent those obligations were used to finance
costs described in sections I to 3.
For districts for which the request for certification ere made before August I, 1979, or after June 30,
1982, administrative expenses also include amount paid for services provided by bond counsel, fiscal
consultants, and planning or economic development consultants. Tax increment may be used to pay any
authorized and documented adm inistrative expens s for the District up to but not to exceed 10 percent
of the total tax increment expenditures authorized b the Plan or the total tax increment expenditures for
Central Monticello Redevelopment Project No.1, w ichever is less.
Pursuant to MS, Section 469.176. Subd. 4h, tax in rements may be used to pay for the county's actual
adm inistrative expenses incurred in connection with t e District. The county may require payment of those
expenses by February IS of the year following the y ar the expenses were incurred.
Pursuant to MS. Section 469. 177, Subd. 11, the c unty treasurer shall deduct an amount equal to 0.25
percent of any increment distributed to the HRA or City and the county treasurer shall pay the amount
deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment mancing infonnation and the cost of examining and
auditing authorities' use of tax increment financing.
Subsection 2-19. Limitation of Increment
Pursuant to MS., Section 469.176. Suhd. la, no ta, increment shall be paid to the BRA or City for the
District after three (3) years from the date of certi fi ation of the Original Net Tax Capacity value of the
taxable property in the District by the County Audit r unless within the three (3) year period:
(a) bonds have been issued in aid of the proj ct containing the district pursuant to MS.,
Section 469.178, or any other law, except re enue bonds issued pursuant to lvlS. Sections
469.15210469.165, or
(b) the HRA or City has acquired property within the District, or
(c) the HRA or City has constructed or caused t be constructed public improvements within
the District.
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The bonds must be issued, or the HRA or City ust acquire property or construct or cause public
improvements to be constructed by approximately June, 2004 and report such actions to the County
Auditor.
The tax increment pledged to the payment of bonds a d interest thereon may be discharged and the District
may be terminated if sufficient funds have been irr vocably deposited in the debt service fund or other
escrow account held in trust for all outstanding bond to provide for the payment of the bonds at maturity
or redemption date.
Pursuant to MS., Section 469.176, Subd. 6:
if, ajier jour yearsfrom the date oj certification 0 the original net tax capacity ojthe tax increment
financing district pursuant to MS., Section 469. 77, no demolition, rehabilitation or renovation
of property or other site preparation, including ualified improvement oj a street adjacent to a
parcel but not installation ojutility service includ ng sewer or water systems, has been commenced
on a parcel located within a tax increment fin an ing district by the authority or by the owner oj
the parcel in accordance with the tax increment mancing plan, no additional tax increment may
be taken from that parcel and the original net t capacity of that parcel shall be excluded from
the original net tax capacity of the tax increment mancing district. If the authority or the owner
of the parcel subsequently commences demo lit on, rehabilitation or renovation or other site
preparation on that parcel including qualified im rovement of a street adjacent to that parcel, in
accordance with the tax increment financing pia the authority shall certify to the county auditor
that the activity has commenced and the county uditor shall certify the net tax capacity thereof
as most recently certified by the commissioner of revenue and add it to the original net tax
capacity of the tax increment financing district. 'he county auditor must enforce the provisions
of this subdivision. The authority must submit t the county auditor evidence that the required
activity has taken placefor each parcel in the dist ict. The evidence for a parcel must be submitted
by February 1 ofthefifthyear following the year in which the parcel was certified as included in
the district. For purposes ojthis subdivision, qua ified improvements of a street are limited to (1)
construction or opening of a new street, (2) relocation of a street, and (3) substantial
reconstruction or rebuilding of an existing street
The HRA or City or a property owner must improve t e parcel within the District by approximately June,
2005 and report such actions to the County Auditor.
Subsection 2-20. Use of Tax Increment
The HRA or City hereby determines that it will use I 0 percent of the captured net tax capacity of taxable
property located in the District for the following pur
I. to pay the principal of and interest on bonds ssued to finance a project;
2. to finance, or otherwise pay public redevelop. ent costs of the Central Monticello Redevelopment
Project No. I pursuant to the MS., Sections 69.001 to 469.047;
3. to pay for project costs as identified in the bu get set forth in the Plan;
4. to finance, or otherwise pay for other purpos s as provided in MS., Section 469.176, Subd. 4;
5. to pay principal and interest on any loans, ad ances or other payments made to or on behalf the
HRA or City or for the benefit of Central Mon icello Redevelopment Project No. I by a developer;
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6. to finance or otherwise pay premiums and ot er costs for insurance or other security guaranteeing
the payment when due of principal of and in erest on bonds pursuant to the Plan or pursuant to
MS, Chapter 462C. MS, Sections 469.152 trough 469.165, and/or MS, Sections 469.178; and
7. to accumulate or maintain a reserve securing the payment when due of the principal and interest
on the tax increment bonds or bonds issue pursuant to MS., Chapter 462C, MS, Sections
469.152 through 469.165, and/or MS, Secti ns 469.178.
These revenues shal1 not be used to circumvent any evy limitations applicable to the City nor for other
purposes prohibited by MS, Section 469.176, subd.
Tax increments generated in the District wil1 be paid y Wright County to the HRA for the Tax Increment
Fund of said District. The HRA or City wil1 pay to t e developer(s) annual1y an amount not to exceed an
amount as specified in a developer's agreement t reimburse the costs of land acquisition, public
improvements, demolition and relocation, site prepara ion, and administration. Remaining increment funds
wil1 be used for HRA or City administration (up t 10 percent) and the costs of public improvement
activities outside the District.
Subsection 2-21. Excess Tax Increments
Pursuant to MS, Section 469.176, Subd. 2, in any y ar in which the tax increment exceeds the amount
necessary to pay the costs authorized by the Plan, in luding the amount necessary to cancel any tax levy
as provided in MS, Section 475.61, Subd. 3, the H or City shal1 use the excess amount to do any of the
following:
I. prepay any outstanding bonds;
2. discharge the pledge of tax increment therefi r;
3. pay into an escrow account dedicated to the ayment of such bonds; or
4. return the excess to the County Auditor for r distribution to the respective taxing jurisdictions in
proportion to their local tax rates.
In addition, the HRA or City may, subject to the limi ations set forth herein, choose to modify the Plan in
order to finance additional public costs in Central Mo ticello Redevelopment Project No.1 or the District.
Subsection 2-22. Requirements for Agreeme ts with the Developer
The HRA or City will review any proposal for privat development to determine its conformance with the
Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the
following documents may be requested for review a d approval: site plan, construction, mechanical, and
electrical system drawings, landscaping plan, gradin and storm drainage plan, signage system plan, and
any other drawings or narrative deemed necessary b the HRA or City to demonstrate the conformance of
the development with City plans and ordinances. The HRA or City may also use the Agreements to address
other issues related to the development.
Pursuant to MS, Section 469.176, Subd. 5, no mor than 10 percent, by acreage, of the property to be
acquired in the District as set forth in the Plan shall t any time be owned by the HRA or City as a result
of acquisition with the proceeds of bonds issued purs ant to M.S., Section 469.178 to which tax increments
from property acquired is pledged, unless prior to a quisition in excess of 10 percent of the acreage, the
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HRA or City concluded an agreement for the develo ment of the property acquired and which provides
recourse for the HRA or City should the developmen not be completed.
Subsection 2-23. Assessment Agreements
Pursuant to MS, Section 469.177, Subd 8, the HRA 0 City may enter into a written assessment agreement
in recordable form with the developer of property wit in the District which establishes a minimum market
value of the land and completed improvements for th duration of the District. The assessment agreement
shall be presented to the assessor who shall review t e plans and specifications for the improvements to
be constructed, review the market value previously as igned to the land upon which the improvements are
to be constructed and, so long as the minimum ma ket value contained in the assessment agreement
appears, in the judgment of the assessor, to be a rea onable estimate, the assessor shall also certify the
minimum market value agreement.
Subsection 2-24. Administration of the Distri
Administration of the District will be handled by the xecutive Director of the Monticello HRA.
Subsection 2-25. Annual Disclosure Require
Pursuant to MS. Section 469./75. Subd 5. 6 and 6a t e HRA or City must undertake financial reporting
for all tax increment financing districts to the Office fthe State Auditor, County Board, County Auditor
and School Board on or before August I of each year MS.. Section 469.175, Subd 5 also provides that
an annual statement shall be published in a newspaper f general circulation in the City on or before August
15.
If the City fails to make a disclosure or submit a report ontaining the information required by MS. Section
469.175 Subd. 5 and Subd. 6. the Office of the State A ditor will direct the County Auditor to withhold the
distribution of tax increment from the District.
Subsection' 2-26. Reasonable Expectations
As required by the Tax Increment Financin~Act, in e tablishing the District, the determination has been
made that the anticipated development would not reas nably be expected to occur solely through private
investment within the reasonably foreseeable future nd that the increased market value of the site that
could reasonably be expected to occur without the us of tax incrementfinaricing would be less than the
increase in the market value estimated toresult from th proposeddevelopmentafter subtracting the present
value of the projected tax increments for the maximu duration of the District permitted by the Plan. In
making said determination, reliance has been placed pon written representatives made by the developer
to such effects and upon HRA and City staff awarenes of the feasibility of developing the project site. A
comparative analysis of estimated markel values both with and without establishment of the District and
the use of tax increments has been performed as des ribed above. Such analysis is included with the
cashflow in Appendix D, and indicates that the inc ease in estimated market value of the proposed
development (less the indicated subtractions) exceed the estimated market value of the site absent the
establishment of the District and the use of tax increments.
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Subsection 2-27. Other Limitations on the Us of Tax Increment
1. General Limitations. All revenue derived from ta increment shall be used in accordance with the Plan.
The revenues shall be used to finance, or othe ise pay public redevelopment costs of the Central
Monticello Redevelopment Project No.1 pursua t to the MS., Sections 469.001 to 469.047. These
revenues shall not be used to circumvent exist ng levy limit law. No revenues derived from tax
increment shall be used for the acquisition, consruction, renovation, operation, or maintenance of a
building to be used primarily and regularly for onducting the business of a municipality, county,
school district, or any other local unit of gove ment or the state or federal government or for a
commons area used as a public park, or a facility sed for social, recreational, or conference purposes.
This provision shall not prohibit the use of reven es derived from tax increments for the construction
or renovation of a parking structure or of a privat Iy owned facility for conference purposes.
2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on
activities in the District or to pay bonds, to the xtent that the proceeds of the bonds were used to
finance activities within said district or to pay, or secure payment of, debt service on credit enhanced
bonds. Not more than 20 percent of said tax incre ents may be expended, through a development fund
or otherwise, on activities outside of the District xcept to pay, or secure payment of, debt service on
credit enhanced bonds. For purposes of applying his restriction, all administrative expenses must be
treated as if they were solely for activities outsid of the District.
3. Five Year Limitation on Commitment of Tax In rements. Tax increments derived from the District
shall be deemed to have satisfied the 80 percent est set forth in paragraph (2) above only if the five
year rule set forth in MS., Section 469.1763, Sub . 3, has been satisfied; and beginning with the sixth
year following certification of the District, 80 percent of said tax increments that remain after
expenditures permitted under said five year rut must be used only to pay previously committed
expenditures or credit enhanced bonds as more f lIy set forth in MS., Section 469.1763, Subd. 5.
Subsection 2-28.
Summary
The Monticello Housing and Redevelopment Authori is establishing the District to preserve and enhance
the tax base, and provide employment opportunities in the City. The Tax Increment Financing Plan for the
District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-
1105, telephone (651) 697-8500.
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APPENDIX
APPEN DIX F
BUT/FOR QUA IFICA TIONS
Current Market Value - Est. 90,000
New Market Value - Est. 490,000
Difference 400,000
Present Value of Tax Increment 94,077
Difference 305,923
Value Likely to Occur Without TI F is Less Than: 305,923
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4D.
HRA Agenda - 6/6/01
ies
A. Referencc and backuround:
The Contract for Private Redevelopment 0 ltlines the terms and conditions ofTIF
assistance to the developer, Integrated Rec cling Technologies, Inc. (IRTI). The
Contract was drafted by Dan Greensweig, ennedy & Graven, and a copy provided to the
developer. Generally, the Contract is exec Ited or agreed upon between the parties, prior
to the City Council approving the establisl ment of the TIF District. The HRA agreed to
assist with land-write in the amount of $40,000 and the Council agreed to make the 10%
local contribution of $9,000 toward the W C/SAC fees thereby eliminating the IIACA
Penalty. The bank and EDA closing is ten atively scheduled for June 18,2001. The TIF
assistance is the pay-as-you-go finance me hod at an annual interest rate of 8.m'll.
Number of new jobs and wage levels to M nticello as outlined within the Contract.
Because no site or building plans have been submitted to the City, the construction
commencement date is July 31, 2001 whi 'h allows time rather than amend the Contract.
The construction completion date is Nove ber 30, 2001, to allow completion for full-
assessment on January 2, 2002, for the ilL t tax increment payment to the liRA in July
2003. The Council will be asked to appn ve the Contract on June 11,2001.
B. Alternative Action:
1. A motion to approve authorizatiOl to enter into the Contract for Private
Development among the HRA, th City, and Integrated Recycling Technologies,
Inc.
2. A motion to deny authorization to enter into the Contract .............................
3. A motion to table any action.
C. Recommendation:
Recommendation is Alternative No.1.
D. Supportinf.! Data.
Excerpts of the Contract.
.
Acquisition of Pro er . Financial Assistance
Section 3.1. Status of the Develo ment P 0 ert . As of the date of this Agreement, the
Developer has entered into a purchase agreement ith a third party for the Development Property.
The Authority shall have no obligation to purch - se the Development Property or any portion
thereof.
Section 3.2. Soil Conditions. The Develo er acknowledges that neither the Authority nor
the City makes any representations or warranties as 0 the condition of the soils on the Development
Property or its fitness for construction of the Mi imum Improvements or any other purpose for
which the Developer may make use of such prop rty. The Developer further agrees that it will
indemnify, defend, and hold harmless the Authorit ,the City, and their governing body members,
officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous
wastes or pollutants on the Development Property. The Developer's obligations under this Section
3.2 shall survive termination of this Agreement.
.
Section 3.3. Pavment of Administrative C sts. The Developer agrees that it will pay upon
demand by the Authority, Administrative Costs ( s hereafter defined). For the purposes of this
Agreement the term "Administrative Costs" meat s out-of-pocket costs incurred by the Authority
and attributable to or incurred in connection with tl e negotiation and preparation of this Agreement
and other documents and agreements in connectio with the development contemplated hereunder.
Out-of-pocket Administrative Costs shall be evidet 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 Authority 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 Developer receives a Certiticate of Completion ursuant to Section 4.4 of this Agreement.
Section 3.4. Land Acquisition. In or er to make development of the Minimum
Improvements economically feasible, the Authoriy will reimburse the Developer, in the manner
and amounts set forth herein, for up to $40,000 oft e Land Acquisition Costs, hereby defined as the
Developer's cost of acquiring the Development Pr perty. Any costs in excess of this amount shall
be the responsibility of the Developer. The Autho ity shall have no obligation to the Developer or
to any third pm1y with respect to any defects in the onstructionofthe Minimum Improvements.
Section 3.5. Financing of Land Ace uisiti n Costs. In order to make development of the
Minimum Improvements economically feasible, th Authority will reimburse the Developer for the
Land Acquisition Costs in accordance with the foll wing terms and conditions:
.
(a) Subject to the terms and condition' of this Agreement the Land Acquisition Costs
will be paid \vith simple interest thereon at 8.00% er annum. interest commencing to accrue on the
date that the Developer complies with the cost cer itication requirement described in paragraph (f)
of this Section. The Land Acquisition Costs will b paid by the Authority to the Developer in semi-
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annual installments payable on each February 1 nd August 1 ("Payment Dates") commencing
August I, 2003 and concluding no later than the T rmination Date. These payments will be made
from Available Tax Increment as defined in this Se tion 3.3 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 ounty and paid to the Authority during the six
months preceding any Payment Date.
(c) If on any Payment Date there is ava"lable to the Authority insufficient A vailable Tax
Increment to pay the amounts due on such date, the amount of such deficiency shall be deferred and
shall be paid, without interest thereon, on the n xt Payment Date on which the Authority has
available to it Available Tax Increment in excess 0 the amount necessary to pay the amount due on
such Payment Date.
(d) The Authority shall have no obliga ion to pay any portion of the Land Acquisition
Costs that remains unpaid after the Termination Da e. The Authority may prepay all or party of the
Land Acquisition Costs at any time.
(e) 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 t under this Agreement that has not been cured;
or (ii) the Developer has failed to comply with the ayment procedures described herein.
.
(f) At least 30 days before becoming entitlcd to receive any payment hereunder. the
Developer must submit to the Authority a paymen request certificate signed by its duly authorized
representative stating: (i) that the Developer has paid Land Acquisi tion Costs in at least the amount
of $40,000; (ii) that no Event of Default has occur ed and is continuing under this Agreement; and
(iii) that the Developer has received a Certificate of Completion pursuant to Section 4.4 of this
Agreement. The payment request certificate must be accompanied by evidence satisfactory to the
Authority that the Land Acquisition Costs have be n incurred and paid by the Developer.
(g) The Authority makes no warranties or representations that A vailable Tax Increment
will be sufficient to pay the Land Acquisition Co ts. The Developer agrees and understands that
Available Tax Increment is subject to calculation b the County and change in State law, and that a
significant portion of Land Acquisition Costs may remain unpaid after the Termination Date. The
Developer further agrees and understands that est mates of Available Tax Increment provided by
the Authority and its agents, officers, or employes are estimates only and not intended for the
Developer's reliance.
Section 3.6. Business Subsidv Ae:reemen. The provisions of this Section constitute the
"business subsidy agreement"' between the Develo er and the Authority and between the Developer
and the City. for the purposes of the Business Subs dy Act.
(a) General Terms. The parties agree and r present to each other as follows:
.
( 1) The subsidy provided to the Developer by the Authority consists of payments to
thc Developer for Land Acquisition Cost. pursuant to this Agreement which paymcnts
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represents a forgivable loan that is repay ble by the Developer in accordance with this
Section. The payments under Section 3.5 a e payable from a portion of the Tax Increments
from the TI F District an economic develop lent tax increment financing district.
The subsidy provided to the Develo er by the City consists of waiver of certain fees
as described in Section 3.8, which waiver epresents a forgivable loan that is repayable by
the Developer in accordance with this Secti n. Those payments may be indirectly financed
by tax increments from the TIF District, as escribed in Section 3.8.
(2) The public purposes of the s bsidy are to promote development of a metals
recycling facility in the City, increase net j bs in the City and the State, and increase the tax
base of the City and the State.
(3) The goals for the subsidy re: to secure development of the Minimum
Improvements on the Development Prope y; to maintain such improvements as a metals
recycling facility for at least five years as escribed in clause (6) below; and to create the
jobs and wage levels in accordance with Se tion 3 .6(b) hereof.
(4) If the goals described in claus (3) are not met, the Developer must make the
payments to the Authority and City deserib d in Section 3.6(c).
.
(5) The subsidy is needed because land acquisition costs make development of the
Minimum Improvements infeasible withou public assistance, all as determined by the City
upon approval of the TIF Plan.
(6) The Developer must continue operation of the Minimum Improvements as a
metals recycling facility for at least five ye rs after the date of issuance of the certificate of
completion.
(7) The Developer does not have a arent corporation.
(8) In addition to the assistance rovided under this Agreement, the Developer
expects to receive additional assistance in connection with the Minimum Improvements,
specifically a loan from the Monticello Ec nomic Development Authority CEDA") in the
amount of $72,500. Notwithstanding the fi regoing, nothing in this paragraph constitutes a
contractual obligation by the Authority, the ity, or the EDA with respect to such assistance.
(b) Joh and Wage Goals. Within two yea s after the date of issuance of the certificate of
completion of the Minimum Improvements (the "ompliance Date') the Developer shall cause to
be created at least 5 new full-time equivalcntjobs n the Development Property (the "New Jobs")
and shall cause the wages for the New Jobs to be as follows: (i) at least :2 New Jobs shall pay no less
than $12.00 per hOUL exclusive of benefits; (ii) at last 1 New Job shall pay no less than $14.00 per
hour, exclusive ofbeneiits; (iii) at least I New Job hall pay no less than $16.00 per hOUL exclusive
of benefits; and, (iv) at least I New Job shall pay n less than $18.00 per hour, exclusive ofbenctits.
Notwithstanding anything to the contrary herein if the wage and job goals described in this
. paragraph are met by the Compliance Date, t ose goals arc decmed satisfied despite the
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Developer's continuing obligations under Sections .6(a)(6) and 3.6(d). The Authority may, after a
public hearing, extend the Compliance Date by up t one year, provided that nothing in this section
will be construed to I imit the Authority's legislative discretion regarding this matter.
(c) Remedies. If the Developer fails to m et the goals described in Section 3.6(a)(3), the
Developer shall repay (1) to the Authority upon ritten demand from the Authority a "pro rata
share" of the amount of any payments made to the Developer under Section 3.5 hereof, (2) to the
City upon written demand from the City a pro rata share of the amount of any fee waivers granted
under Section 3.8, and (3) to the Authority and City respectively, interest on the amounts in clauses
0) and (2) at the implicit price deflator as defined 'n Minnesota Statutes, Section 275.50, subd. 2,
accrued from the date of issuance of the certificate f completion to the date of payment. The term
"pro rata share" means percentages calculated as tol ows:
(i) if the failure relates to the numb I' of jobs, the jobs required less the New Jobs
created, divided by the jobs required;
(ii) if the failure relates to wages, t e number of jobs required less the number of
jobs that meet the required wages, divided b the number of jobs required;
.
(iii) if the failure relates to mai tenance of the Minimum Improvements in
accordance with Section 3.6(a)(6), 60 less he number of months of operation as a metals
recycling facility (where any month in whic the facility is in operation for at least 15 days
constitutes a month of operation), commen ing on the date of the certificate of completion
and ending with the date the facility ceas s operation as determined by the Authority.
divided by 60; and
(iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable
percentages, not to exceed 1 00%.
Nothing in this Section shall be construed t limit the Authority's or City's remedies under
Article IX hercof. In addition to the remedy de cribed in this Section and any other remedy
available to the Authority or City tor failure to eet the goals stated in Section 3.6(a)(3), the
Developer agrees and understands that it may not re eive a business subsidy from the Authority, the
City or any grantor (as defined in the Business Subs. dy Act) for a period of five years from the date
of the failure or until the Developer satisfies its repa ment obligation under this Section, whichever
occurs first.
(d) Reports. The Developer must submit to the Authority a written report regarding
business subsidy goals and results by no later than anuary 25 of each year. commencing January
25.2002 and continuing until the later of (i) the dat the goals stated Section 3.6(a)(3) are met; (ii)
30 days attcr expiration of the five-year period descr'bed in Section 3.6(a)(6): or (iii) if the goals are
not met. the date the subsidy is repaid in accordanc with Section 3.6(c). The report must comply
with Section 116.1.994, subdivision 7 of the Busin ss Subsidy Act. The Authority will provide
information to the Developer regarding the required forms. If the Developer fails to timely tile any
report required under this Section, the Authority will mail the Developer a warning within one week
. after the required filing date. If. aftcr 14 days of the postmarked date of the warning, the Developer
D'/(j-I9R129V2
MN 190-91
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fails to provide a report, the Developer must pa to the Authority a penalty of $100 for each
subsequent day unti I the report is fi led. The maxim 1m aggregate penalty payable under this Section
$1,000.
(e) Audits. Upon written request of the A thority or City in any year, the Developer shall
retain at its expense an independent, third party accountant to audit any job and wage report
submitted by the Developer under paragraphs (d) 0 (f) of this Section. The Developer must deliver
to the Authority a written report from the accountan promptly upon completion of such audit.
(f) Green Acres Wage Requirements. The eveloper acknowledges that the Development
Property qualified for "green acres" status under innesota Statutes, Section 273.111 within five
years prior to the request for certification of the Di 'trict. and Developer is therefore subject to the
requirements of Section 469.176, subd. 7 of the TIF Act, in addition to the wage goals described in
paragraph (b) of this Section. The Developer shal cause at least 90% of the jobs located on the
Development Property to pay a rate equal to or grea er than 160% of the federal minimum wage for
individuals over the age of 20. This requirement 'ommences upon occupancy of the Minimum
Improvements (before the Compliance Date f(.)f the 'ob and wage goals described in paragraph (b)
of this Section), and continues through the Terminafon Date (after the goals under paragraph (b) of
this Section have been satisfied). If the Developer fils to comply with the terms of this paragraph
at any time during the period before or after the requ rements of paragraph (b) of this Section apply,
the Authority may exercise any remedy available nder Article IX of this Agreement. including
without limitation termination of this Agreement 0 withholding of payments under Section 3.5
hereof. However, the parties agree and understand hat the requirements of this paragraph do not
constitute wage goals for the purposes of the Business Subsidy Act, and are not subject to the
remedies described in paragraph (c) of this Section. Notwithstanding anything to the contrary in
paragraph (d) of this Section, the Developer shall ubmit a written report to the Authority upon
initial occupancy of the Minimum Improvements nd on each March I thereafter through the
Termination Date, describing compliance with the w ge requirements of this paragraph. Failure to
complete such report will constitute an Event of D fault under this Agreement, but will not be
subject to the penalties described in paragraph (d) oft is Section.
Section 3.7. Use of Tax Increment. Except s set forth herein, the Authority shall have no
obligation to the Developer with regard to its use of ax Increment and may use Tax Increment for
any lawful purposes. whether set forth herein or other ise.
Section 3.8. Fee Waivers: Local Contribution The City will payor forgive up to $9,000 of
the water and sevver access fees (the "Fees") that vvo Id otherwise be due to the City and borne by
the Developer in connection with development of th Development Property, subject to the terms
and conditions of Section 3.6 hereof
OJ(j-198129V2
MN 190-91
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Construction of Mini
rovements
Section 4.1. Construction of Improvements The Developer agrees that it will construct the
Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and at all times during the ter of this Agreement will operate and maintain,
preserve and keep the Minimum Improvements or cause such improvements to be maintained,
preserved and kcpt with the appurtenances and ev ry part and parcel thereof~ in good repair and
condition. The Authority shall not have any ob igation to operate or maintain the Minimum
Improvements.
Section 4.2. Construction Plans. (a) B fore commencement of construction of the
Minimum Improvements, the Developer shall sub lit 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 Agr ement, and all applicable State and local laws
and regulations. The Authority will approve t e Construction Plans in writing if: (i) the
Construction Plans conform to the terms and cond tions of this Agreement; (ii) the Construction
Plans conform to the goals and objectives of the Redevelopment Plan: (iii) the Construction Plans
contorm to all applicable federaL state and local la s, ordinances, rules and regulations: (iv) the
Construction Plans are adequate to provide for const uction of the Minimum Improvements: (v) the
Construction Plans do not provide for expenditures i excess of the funds available to the Developer
from all sources for construction of the Minimum r provements: and (vi) no Event of Default has
occurred. Approval may be based upon a review by he City's Building Official of the Construction
Plans. No approval by the Authority shall relieve t e 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 construct the Minimum Improvements in accordance
therewith. No approval by the Authority shall co stitute a waiver of an Event of Default. If
approval of the Construction Plans is requested y the Developer in writing at the time of
submission, such Construction Plans shall be deem d approved unless rejected in writing by the
Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and
shall be made within 10 days after the date of their re eipt by the Authority. If the Authority rejects
any Construction Plans in whole or in part the Developer shall submit new or corrected
Construction Plans within 10 days after written notit cation to the Developer of the rejection. The
provisions of this Section relating to approval, rejecti nand resubmission of corrected Construction
Plans shall continue to apply until the Construction Plans have been approved by the Authority.
The Authority's approval shall not be unreasonabl_ withheld. Said approval shall constitute a
conclusive determination that the Construction Plans and the Minimum Improvements constructed
in accordance with said plans) comply to the Authority's satisfaction \vith the provisions of this
Agreement relating thereto.
(b) I f the Developer desires to make any aterial change in the Construction Plans after
their approval by the Authority, the Developer shall submit the proposed change to the Authority tor
its approval. If the Construction Plans, as modifi d by the proposed change, cont()rm to the
requirements of this Section 4.2 of this Agrcemen with respect to such previously approved
DJG-198129V2
MNll)()-91
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Construction Plans, the Authority shall approve th proposed change and notify the Developer in
writing of its approval. Such change in the Con truction Plans shall, in any event, be deemed
approved by the Authority unless rejected, in whole 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. "he Authority' s approval of any such change in
the Construction Plans will not be unreasonably wit eld.
Section 4.3. Commencement and Com Ie ion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements by July 31,
2001. Subject to Unavoidable Delays, the Develop I' shall complete the construction of Minimum
Improvements by November 30, 2001. All work wi h respect to the Minimum Improvements to be
constructed or provided by the Developer on the De elopment Property shall be in conformity with
the Construction Plans as submitted by the Developer and approved by the Authority.
The Developer agrees for itsel( its successor 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 construction of the Mini! um 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 to 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 such times as may reasonably be requested by
the Authority. as to the actual progress of the Develo er with respect to 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 Mini urn Improvements (including the dates for
beginning and completion thereof), the Authority -ill furnish the Developer with a Certificate
shown as Exhibit B. Such certification and such d - termination shall not constitute evidence of
compliance with or satisfaction of any obligation of t e Developer to any Holder of a Mortgage. or
any insurer of a Mortgage. securing money loaned to finance the Minimum Improvements, or any
part thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance with
the provisions of this Section 4.4 of this Agreement. t1 e Authority shall. within thirty (30) days after
written request by the Developer. provide the Deve oper with a written statement. indicating in
adequate detail in what respects the Developer has failed to complete the Minimum Improvements
in accordance with the provisions of the Agreement. r is otherwise in default. and what measures
or acts it wi Il be necessary. in the opinion of the Auth )rity. for the Developer to take or perform in
order to obtain such certitication.
(c) The construction of the Minimum 1m rovemcnts shall be deemed to be complete
upon issuance of a certificate of occupancy by the C ty for. and the opening for business of. the
. Minimum Improvements.
DJei-198129V2
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HRA Agenda - 6/6/01
5.
Consideration to extend the effective dat of the Preliminar Develo ment
A reement between the HRA and Bar Fluth and to authorize draftin of the
Contract for Private Redevelopment.
A. Reference and backuround:
Since the May 2 HRA meeting, Johnson, O'Neill, and Koropchak met twice relative to
the parking requirements and the WAC/SA ~ fees. Based on the restaurant seating, retail
space, and residential units and assuming d velopment of parking behind the Hamond
and Palmer buildings, the parking deficien y is 9 stalls times the $1 AOO equals $12,600.
The WAC/SAC will be assessed and picke up the proposed tenants.
Attached is a copy of the proposed terms a d conditions for purchase of the Amoco site
via Johnson as dated May 7, 2001. Koropc ak suggested to include a section entitled
Termination of Lease to avoid business reI cation costs. Johnson said the
demolition/acquisition cost are $170,000. ccording to Johnson, the first floor 5,700 sq
ft: of the building has been rented. Questio: lias a Purchase Agreement been signed by
Bjorklund?
Items for the HRA to consider:
1.
Whether to extend the e1Tective dat of the Preliminary Development Agreement
which expires June 6, 2001.
Review proforma and cashflow pro ections based on proposed, reduced
classification rates.
Review level of pay.as.you.go TIF assistance previously approved (review
minutes), will or can the HRA pro v de financing for the entire gap? Will the
HRA provide up.front interim fina cing for the purchase of the Amoco site?
It appears the gas station will not b demolished by June 30, 2001. However, it is
an advantage to the HRA as the pro erty market value has deceased since 1997;
therefore, a reduction in the tax cap city.
Authorize HRA Attorney to draft C ntract for Private Redevelopment between
the HRA and Barry Fluth. The Pr liminary Agreement exists until the Contract
has been executed.
2.
3.
4.
5.
B. Alternative Action:
1. A motion to cxtcnd the effective dae frol11 June 6, 200 I until within
the Preliminary Dcvelopment Agre ment with Master fifth A venue and
authorizing the HRA Attorney to d . aft a Contract for Privatc Redevelopmcnt.
Reaf1irm thc level of pay.as.you.g "1'1 F assistance in the amount of
.
HRA Agenda - 6/6/0 1
.___ (Acquisition/demolition and parking development
.) Will the HRA rovide a one-year loan for acquisition
demolition of the Amoco? Rate and Terms.
2. A motion to deny extending the effective date of the Preliminary Development
Agreement for use of '1' IF.
3. A motion to table any action.
C. Rccommendation:
Koropchak will be meeting with Mark Ruff on Monday, lune 4, and review the
new projected TIF cashflows for th District along with the committed debt
within thc District. My assumptiOl is the I IRA should be able to at least complete
the Front Street and the Amoco sit projects.
D. Supporting Data:
Copy of parking requirements, lett r to Bjorklund, and 10hnson.s proforma.
.
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2
HRA Minutes - 04/04/01
.
to go before the Planning Commission pos ibly in May'. Koropchak reminded the
members of a target date for the HRA to ha e the Amoco site demolished is by June.
Johnson asked that the HRA extend their aJeement for 2 months and would be looking
for a preliminary design to be ready by the
.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY STEVE
ANDREWS TO EXTEND THE EFFECTI E DATE OF THE PRELIMINARY
DEVELOPMENT AGREEMENT TO JUNE 6, 2001 FOR PHASE I AND AGREED TO
A LEVEL OF TIF ASSISTANCE AS FOL OWS: PAY-AS-YOU-GO TIF
ASSIST ANCE IN THE AMOUNT OF TH LESSER OF A) THE COST TO ACQUIRE
THE AMOCO SITE AND DEMOLITION OF STRUCTURE, B) NOT-TO-EXCEED
$166,800 OR C) THE AMOUNT OF THE "A V AILABLE TAX INCREMENT"
GENERATED FROM THE PROJECT FO THE DURATION OF THE LIFE OF THE
DISTRICT. SUBJECT TO ACQUISITIO AND DEMOLITION OF THE AMOCO
SITE PRIOR TO OR ON JUNE 30, 2001 ND EXECUTION OF THE CONTRACT
FOR PRIVATE REDEVELOPMENT BE WEEN THE HRA AND MASTERS FIFTH
AVENUE,INC. THE UP-FRONT $35,00 SUBJECT TO NEGOTIATION. Motion
carried unanimously.
7.
revious St.
Koropchak introduced John Komarek, Ced us Creek Craftsmans, Inc., who presented to
the HRA members a preliminary design co cept for redevelopment of the previous St.
Henry's property. Komarek is looking for reliminary concept approval for use ofTIF
assistance. Koropchak advised that at this tage, if the HRA approves the concept, the
concept is then presented to the Council 1'0 approval and the level of TIF assistance
occurs after execution of the Preliminary evelopment Agreement and $5,000 deposit.
Komarek briefly described his concept pIa and its similarity to his previous project at
Prairie West, stating the Planning Commis ions approval of his concept at their meeting
the previous night.. He also stated he has een working with the Land of Lakes Choir on
a private, for profit business campus, advis ng that at this stage it is important to first get
all partics involved to agree upon what sho Ild happen in this area.
.
Komarek suggested that Block 28 be devel ped as a parking space/green space area with
possibly a playground, freeing up the bloc across the street for redevelopment which
would drive the TIF district with potentiall 22 town houses that could fit in where the
current parking lot is. Koropchak provide an aerial photo of the St. Henry's site and
stated that redeveloping parking lots quali for improvements in regard to establishing of
redevelopment TIF district. Mark Ruff of hlers and Associates reviewed this as well
and stated it does qualify for a redevelopm nt district in regard to the requirements of the
70% and 15% improvement rules. This al 0 assumes the City Building Official can
determine that more than 50% of the build'ngs (excluding outbuildings) are structurally
3
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City Planner Comments - Amoco Redevelopment site
Parking Demand
.arking Demand
Restaurant
Commercial/office
Subtotal
60% of subtotal
Residential - based on 2-1 ratio
Spaces needed
Net new spaces developed
Deficiency
61
11
72
43
12
55
46
9
11>
~ \!;4 b'O
~'J "\ll~ 0
How to handle deficiency
Buy a ditionalland and develop on-site parking
Redu e 2-1 parking ratio for residiential
.
SACIWAC fee discussion---
.
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May 7, 2001
Mr. Paul Bjorkland
607 Lake Blvd.
Buffalo, MN 55313
,',' . I "
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Re: Purchase Amoco site Monti~ell~, MN
Dear Paul:
The following are the terms and conditions w~ propose to purchase your Amoco site in
Monticello, MN: -'
Property Address
Dimensions
Legal
Purchase price,
Earnest money
Closing ,
Terms -
365 Broadw y West
165 x 99 "
Lats13, 14, 14, Black 36
<$166,000
$500
.""j \
September 1, 200 I,
_ $500 eaInes maney, $165,000 cash
." .
buyer agree ta work with City and owner ta ar,range a '
purchase in ieu ,of condemnatian. , '
Canditions precedent to closing:, ,
Special terms
Title
Environmental
Demalitian
Cantingencies:' -
'. buyer appro ing title, seller ta provide titlec,ommitment
satisfaction t,o buyer ' '
Seller will arrant no existing con~amination and provide
, evidence si e is free from any contamination once tanks
have been maved.'
price inclu es, the cost of demalitian ,of existing facility. .
- 1. Buyer arranging financing
_r'
.J
__.. ...___ _~_. I ....._......._,......- _ -. _' _""'1 ....~,... ..-'....... I" it. II I ^t"" I~I .AIIJI,lklr-C""^T^ C'C''''''I~ - fnc:lI"')\ n~A A.c:.~a - r::AV ((u:::.")\ O"JA_"....7t')
.
!. /
2. Buyer obtains a building 'permit for an icipated retail/housing developmel}t.
3. Buyer obtaining tax increment assist ce from City of Monticello
4, Buyer entering into a lease for aJ500 q. foot restaurant
5. Environmental report showing no con ination exists on site
6. Buyer,obtains sufficient. parking on or offsite for restaurant.
This letter is a non-binding letter' of intent onl Written to clarify conditions of purchase,
only signed purchase agreement can legally b'nd both parties, .
If you agree with the above terms and canditi ns please sign below,.
. Agreed upon by:
Paul' B j orkland
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oS'.
Mar 02 01 10:44a
Lotus Rea 1 t::f Serv i C4 S, I nc (952) 934 -5472
p.2
Rtd..O ft/\Y- ~ t> A ~ ,.. I
FoR'
,A"", I> c..o S,~ ~ -----{" ~
PROFORMA J Alternate 11 PROFORMA Altemate 2
INCOME-NET ~ -, ~____- ________._____f-.___.----
Retail/office 5700 s.f. @ $15/5.f. 1 $ 85,500.00 Retad/office 8125 s.t."@ $15/s.f. $ 121,875.00
~apt. units 5700 sJ.-@ $7.20/S.f. $ 43,200.00 8 ap . units 8125 s.f. @ $7.20/s.1. $ 58.500.00
~ I ---
~ carriage units 800 sJ. @ $7.20/5.f. I $ 6,912.00 8 ca mage units 1800 sJ. @$7 20/s.f. $ 21,600.00
TOTAL INCOME S 135.612.00 . $ 201.975.00
Less vacancy 5% S (6.780.60)ILeS! vacancy 5% $ (10.098.75)
i
:$
'$
TI ANALySiS-----r-- ----
11.200.00 Rc tail taxes@ $2.50/5.f. $ 20.312.00
8,064.00 AI t. taxes $50,000 x 10 x 2.4 x 1.12 : $ 13,440.00
--j----. -
(3,408.00) L~ ss current base - $ (4,400.00)
15.856.00):n AVA/U\BLE $ 29,352.00
~
\~City provide parking for Restaurant required of site .........;=>--
Total Spots = 75 for Restaurant I j
3500 sq. feet of Restaurant I !7
HRNCity pay Restaurant SACIWAC $4~ggg 4 S n 0 .~~
.~ ..~
.
~T INCOME
TIF/year
TOTAL INCOME WITH TIF
Less TIF note - 9% 20 years
Less mortgage at 9% - 25 yearn
~
NET INCOME
~
SOURCES-
Mortgage @ 80% of cost
Equity
;T"IF fo.. 8-1-'
RA GAp Financing
TOTAL SOURCES
USES
AcquisitiOnlDemo/Site prep A . c, ~ ~(I:r
~onstruction costs:
RetaiVoffice 5700 sJ. @ $100/s.f.
Apt. 5700 s.f. @ $90/s.f.
Carriage House
Total Construction
Soft. Costs @ 15%
TOTAL USES
......
TIF ANALYSIS
Retail taxes@ $2.50/sJ. x 5700
Apt. taxes $50,000 x 6 x 2.4 x , .12
Less current base
TIF AVAILABLE
~
'\<=;,
..? \ -
'). L.\
~
AMOCO AWAY PF OJECT
MONTICELLO. MN
DEVELOPMENT AL T RNATIVE
03/02/2001
128,831.40 NE INCOME : $ 191,876.25
15,864.00 T1Fi Jear to yield 11 %retum---T$-26.693.00
$ 144,695.40 .rro AL INCOME WITH TIF $ 218,569.25
$ (15,864.00) I es TIF note - 9% 20 years $ -c26,693.00)
i$ (104,280.00), _e5 mortgage at 9% - 25 years $ (159.917-00)
i$ 24,551.40 ! E INCOME i$ 31,959.25
,
~ ! OJRCES
$ 1.079.200.00 I 1110 gage @ 80% of cost $ 1,588.000.~
S 122,900.00 I ~QI ity 1$ 148,000.00
$ 146.900.00' IF for Gap ,$ 249.000.00
1$ '10,000.00 'fa AL SOURCES $ 1.985.000.00
$ 1,459,000.00
$
--~_._------+------
USES
- ----=-
211,000.00 ,Ac uisitionlDemo/Site prep A.E,F.G ; $ 280.000.00
1=__-
$ 738.000.00_
$ 745.000.00
I $ 570,000.00
$ 456,000.00
$ 60,000.00
$ 1,086,000.00
Co lstruction costs:
RetaiVoffice 8125 s,f.@$90/s.1.
Apt. 9925 s.f: @ $75/s.f.
Total Construction
i $ 1.483.000.00
$ 162.000.00 $( ft Costs @ 15%
$ 1,459,000.00 T( TAL USES
$ 222,000.00
$ 1.985,000.00
i$
1$
$
$
--I.....
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MQNT\CEll.OAWAYPI'l-l. XL::
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6.
Consideration of an u date of the ro
approve necessary action to proceed.
A. Reference and background:
O'CONNOR PROPERTY
HRA Agenda - 6/6/01
Via Ken Helvey, relocation advisor, and OConnor's attorney, John Peterson, it appears
O'Connor does not accept the HRA oiler J $145,383 which includes the business
relocation benetits. Prior to the added relo ation benefits, the HRA' s offer was $ I 30,352.
Mr. Helvey inl()rmed me this a.m., Mr. O'onnor is looking for $165,000 to $ 175,000.
With the City Council's position to not co demn property, the Mr. Helvey has had no
leveraging power J()r negotiation. From M . Helvey's prospective, to do a 90-day quick
take at this point may not be worth it when considering time and cost. Mayor Belsaas is
invited to the meeting with Mark RufJ on onday, June 4, and HRA Chair and myself
will again address condemnation with the ayor. If the HRA were to adopt a resolution
authorizing condemnation at .Tune BRA me ting, the 90~day quick take begins the day the
petition is filed at the County. This brings l s into September. In the meantime, the HRA
has lost tax increment revenue due to reduc ion of classification rates; with no demolition
by June 30, 200 I, the parccls will be reinst ted at a higher market value (tax capacity)
causing less tax increment generated from t e project; and a one-year delay in the project,
again reduces the amount tax increment col ected. The Preliminary Contract with Hans
Hagen is effective through October 200 I.
Action:
I. A motion to adopt a resolution authorizing 90-day quick take condemnation for
the property located at 2 18 Front Str et.
2. A motion authorizing a counter-otIc. in the amount of___._._ f()r
acquisition including all relocation b' ncfits for the property located at 218 Front
Street with a closing and possession ate of June 20,200 I and requesting the City
Council fl)[ an interim loan in said mount.
3. A lllotion to table any action.
4. A motion of other option.
Reconlmendation is alternative no. 2.
Attached is a copy of the evidence provided elative to relocation benefits. Mark Ruffis
.
HRA Agenda - 6/6/01
using a general rule of a 30% reduction in ax increment. If the House and Senate
has agreed, revised TIF eashflows may be resented at meeting.
SCHLIEF HOUSE
In conversation with Mr. Schliefthis a.m., his attorney, Tom Ilolker was advised last
month to prepare for the closing on the co tract for deed. As you recall, this property is
in an estate. Kathy Rocklitz, HRA closer, as been given Mr. Holker's name and phone
number. Plans are to close the week of Ju. ell. Public Works will move the garage and
retain usable appliances. Non~usable appl'ances were removed and discarded at Junk
Amnesty Day. The HRA Attorney is revi wing the Contract for Deed to see if the Public
Works can proceed to remove the garage prior to the closing date.
MOVE DEMOLITION OR BURN STR CTLJRES
MOVE:
.
At the HRA meeting in April, the commis ioners approved a motion to demolish the
Bostic, O'Connor, Schlief, and lIRA struc ures. The Public Works to move the Schlief
garage and the Fire Department requesting use a of structure(s) for purpose of a "test
burn". At the HRA meeting in May and u on the request and interest of Rich Kline to
acquire and move the O'Connor house, a lotion was made a table any action as was
premature given the II RA did not own the property and noting the II RA requirement to
hold a public hearing upon the sale of pro erty. Koropchak did check with legal counsel
relative to the need for a public hearing. S'nce it is the structure only and not the property
and given a city employee is interested as ell as the seller or perhaps, others, the
recommendation by legal counsel is for th HRA to solicit bids and award it to the
highest bidder. Again, the Building On-ic al determined the parcels met the substandard
test fix establishment of a redevelopment istrict and the intent was to remove
substandard structures not move substand I'd structures. A bidding process would not
guarantee the whereabouts of the new site ocation (city or township) or whom the
highest bidder.
Action:
I.
A motion to authorize solicitation f bids fix sale and removal of the structure
located at 2] 8 Front Street.
2.
A motion to table solicitation of bi s for sale and removal of the structure located
at 2] 8 Front Street.
.
2
.
HRA Agenda - 6/6/01
3.
A motion to deny solicitation ofbi s for sale and removal or the structure located
at 218 Front Street giving clcar dir ction to Rich Kline and HRA staff
4. A motion of other option.
Recommendation is alternative no. 2.
DEMOLITION OR BURN:
Currently, the HRA owns the Bostic prope y with a possession date of June 15 and owns
the Reed garage. In conversation with Fir Chief Scott Douglas, it takes the Fire
Department at a minimum two weeks to p:r pare and file the necessary permits for a "test
burn".
Action:
1. A motion to authorize going out fo demolition bids for the Bostic and Reed
properties to commence no earlier tlan June 18 and completed no later than June
29.
.
2.
A motion to authorize the Fire Dep rtment to exercise the "test burn" on the
Bostic and Reed properties at no Ii ' ility to the City/HRA between June 18 and
June 29, 200 I with demol ition/clea up thereaher. Add Schlief property to list if
closing date coincides. Upon exec tion of the Purchase Agreement by O'Connor
authorize Public Works to obtain p rmit for site preparation on O'Connor
property (remove tree) to meet the June 30, 2001 tl1Ur-year rule date.
Demolition/cleanup can take place 'n July.
3. A motion to table any action pcndil g purchase of O'Connor property and closing
on Schlief property.
Attached is a copy of the 1997 and 2002 m rket values. Recommendation is Alternative
No.2. This givcs the Fire Department dire tion, allows the HRA to meet thc June 30
date, and delays the decision for demolitiOl , burn, or removal of O'Connor property and
cleanup of other parcels.
CARLSON PROPERTY
Rod Dragsten was asked to complete an ap raiSed of the raw land of the Carlson property.
It is my understanding, the completed appr' isal will be submitted to the HRA office prior
to the HRA meeting of June 6.
.
..,
-,
HRA Agenda - 6/6/01
.
Thought you'd like to know, Mrs. Carlson alled (voice-mail) asking if the City would
mow their yard since they no longer have a place to store a lawn mower or snow plower.
Although I recognized they no longer had, garage, I noted the House Lease and the
tenant's responsibility to repair and mainta'n the property at their expense including the
lawn maintenance. Koropchak suggested 1 uch as myself, perhaps the need to hire a
lawn service to mow the lawn.
FRONT STREET PUBLIC IMPROVEME TS
Without a executed Purchase Agreement ith O'connor, the Council has not been
requested to authorize plans and specs for eplacement of the water and sewer lines and
Front Street.
ISSUANCE OF BOND
.
With the proposed classification rate reduc ions, Koropchak contacted our financial
consultants for advise relative to the need t issue a bond for the properties acquired by
the HRA along Front Street. At one time, he proposed legislation read to qualify for a
state grant to recover ~ 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 dol1ars along Front S Teet without the acquisition of O'Connor, it
was the intent to issue a bond about campi tion of acquisition in order to repay the City
loans. As legislation has not a addressed he issue, the Attorney advised a wait and see
approach. Update at the HRA meeting.
.
.
.
.
MAY-04-01 FRI 10:03
CONWORTH. INC
M~Y' ~4-~1 1~;4a ~M JOHHSON L~RSOH P TERSOH
FAX NO. 9529290568
7...3fi,E:l~44os.=,
P.l)2
P.03
-
JOHNSON, LARSO & PETERSON, P.A.
ATTOllNl SATLAW
JAN C. LARSON+
JOHN T. PI:TJ:RSON+
aNDIS.MAn
0' COt.'1'tIlI.L
TIlOM.U w. RICRAJU)S
.."..", "'.".-fJIl- ~
C..,;r...161 NUt,,_. S",. .., A"NiMl,,,.
Mr. Ken Helvey
Relocation Consultant/Owner
Conworth, Inc.
4725 Excelsior Boulevard, Suite 200
Minneapolis. MN SS416
Re' My Client; Mike O'Connor
Your Client: HRA of Monticello
Dear Ken:
May 3, 2001
.. COMMlF,JilClAL DRIVE
IVPrALO, ~1l"fl"fU01'A ~lJ
(71S.1) ,a:Z-4!SQ
"AX: <1'3) 68,2..4"'5
WI.: W1W1J,n...P.I!l
>>:'J}.UBLX.cmrJC.1
(SIr A.,..."'Ml"'" 0Ny)
WALTER S. JOHNSON
fEN/Olf. 'ARTNF.RI1U:T/REl>
Pursuant to my telephone message left on our voice mail earlier today, please find
enclosed a copy of my client's tax teturnA reffecrin income generated as s r,suh of the pmaJl
engine repair business operated on his property, w ich the lIRA is interested in purchasing:.
Please get back to me at your earliest convenience concerning a r.vis~ proposal for purchase of
my client's property. Just a reminder. I will be out of the office from May 6 through MllY 18.
2001 on annual military training. Consequently. w should try to wrap this matter up in the next
couple dllYs if possible.
May I remain,
JTPljah.
Enclosure
cc; Mike O'Connor
lo
.
.
.
MAY-04-01 FRI 10:04
CONWORTH, INC
FAX NO. 9529290568
M~Y-Q4-~1 1~:4~ AM JOHHGON LftRSON ~ TERGON
7C.~G:g:::::~4~:;
474-66-9895
MAY 03, 2 01
MICHAE~ O'CONNOR
218 W FRONT ST
MONTICELLO MN 55JG2
Your return w.s prepared by PAT HI~L.
FORM NAME
ORM 40
SCH!Dt.1LE A
SCHEDULE C
SCti.l!:DULE SE
FORM Ere
FORM 456;]
FORM 1040V
WKSHT Ere PG2
WKSHT EIC PGl
DEPR ATTACHMENT
DSPR ATTACHMENT
FORM 8867
MNl
MN' WFC
SCHEDULE 13
-v Individual Income ax Return
-Itemized O@ductions
-Profit or Loss from b sineas
-Self-Employment Tax
-Earned Income Credit
~Depreciation ~ Amorti ation
-Electronic paymenc vo cher
-EIe workahaec Page 2
-Ere worksheet page 1
-Depreciation Attachme 1
-Depreciation Attacrun@ 1
-Verification of EIe
-Income Tax Return
-working Family Credit
-Interest ~ Dividend I
Ol"Ali 15 FORMS
OWED
P, 04
".03
CHARGE
34.00
21. 00
J..3.00
3.00
5.00
10.CO
----"a~:oo
$
r.lG.OO
to
MAY-04-01 FRI 10:04
CONWORTH. INC
FAX NO. 9529290568
P, 05
""OIIt~OO~1 LAl'!SOH PI TEP.60~1
,62:.;.Q:2.... .1115.5
P.........
':&Im
MAY-e4-~1 t~~4e AM
1040
0"."111,"1 of III. T r~18UlY ..lnl"'n.1 R'lItInue S.fVlct
U.S. Individual Income Tax Re11.1f
2000 I (J'l
1"5 II." Only" 1:10 n:lI Wille t)lI 'laF"' In Inll $P~~l!,
,20 I OMS, ~o. 1.~;.O~
,..... _lal-.:l..lty ,...........
474-60-9595
, $pel_'a -..I............, "''I''bol'
For I"' y""r Jill. I-klte.:n .20110, '"~ "lITe. "'" Y.~' ....,,"",'"
y""" Ir~l n"nee"d Inllie' I.." .,,,..
MI CHAEL 0 · CO mOR
. Label
(SM
IMCT\lClI""' l
011 pal' , t,) ^
'iI
U_I_ .... II;
- l
.2000. anding
l..a'MoI .
If a 101.., ,......... .,UIU,,"" II"., II""" 1M rNllal
101...... 8I/d,....
Ot..~I'P, ~
pl.... p,I", It
.. ".... !
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S/.dll!lll e."'palO"
(!n ~iI;" T9.)
218 W FRONT S'I'
City. 10,"" go ....., ..II..,.. .'loa. .nd II,. ClOd'. If ~II """.. "'..I.., ,...... Ii....,.,. ,..
MONTICELLO l~
~
55362
Nate. ehAek;"g 'V.c' wlU n&t ena"ll8 )'"ur lllll ~ "dllo, ~ou' r.,..."d.
OQ )Iou. ." y'Ololf spouse- If filing III joint Tlflur", wal'lt $3 10 ;0 L'Q this fu"d'. ...
~ Sins!e
i-- Ma'rlld tiling joim ""n,," (evlln if only 0 I'll had ince",.)
~ Ma,nu fnl", .,pirille retlllll. !"III.. .,..""... 51 N ..II......, filII name M'e. ""
I-II,. It of Nll.lllhllld ("ith QII&Ii!YlnSl per em l. (Su p.llg. 1!lJ tr ''':-''''''''"V'''!l ~"....I"" .""d wI ~.., )'Ou. 01.,............
~ ant., In'- c"lld-' ""... he"'. ..
. Qualif)'i"g wid~w(.,) ...;Ih dependern e nd (Y"" ~,."U" dil.'d .. ). (se~ Dlae 19.)
. I -2- YD\lrself. II your Plr-"t (or so",.one .In) e." chI", ~I)U as il dep,nlt.", on hi'S Clr h'}'" "...Dfl\tl......
tilll ,,1111""1. c1. not ehtck boll ill . . . . . . . . . I . . . . . . . , . , ;.~~ oM\
It 0 S'l!lu.. -....................,..........,...., ".....rr''''''
, -*" .... r- ",IlIldn'n..., 1\('
. Do,.,n<lll."I.: p!J "'~ml"n'" p, t!,,,."<I~",'" (~,~f!",'[~~i Wnl)' . ,
(1)FIHiI rYlTlD lUl nlme "....11 <MIl)" "~-, 'ol..I!~~:.nlp l<l Io:n;~~ ~~~;~lId .ll...~ ..n".,.... _L
BENJAMIN 0 I COr..'NOR 475-19-295CSON 1 "rIIdF'lll,,,,,,,..lIh
.. """n t'""",,,, Ill"'......
r, ... ."",~'~II_
. '.-'I'-M- l"" p<'gt!zOJ
T
LJ
1
I'II/ng Status
C_Io""'1)<
e". ball.
Ex&mplions
II mDr. IhAn sl:o;
"""..-d.",.,
see pos' 2Q.
.
JnCQI'rt-
Att.eh
Form. ",.z and
W-tG II......
Allo IlIlIct!
Porm(s) 10't-R
If 1n "..
wl'l!l~.ld.
II ~eu dId "01
,,01 a W-.".
SII I'IgIJ 21.
€"CI".. !lUt 0110
net aftuh. ""~
pa,,,,,,nl. Also.
~....nlol".
Fo.,., 1D40-V.
AdJust.d
Gros:s
Income
.
I "",. "..
A
Important!
Y 011 ",IUlt "nfa,
your SSN(lI) .h""o.
.
1
2
::I
4
You ~p""'se
~ nY.sf}{lNo n'y~
---.L
""""".......nf....,,~
_ ~.,..rll'lilt'l.'~_
d 'fa'lll nUmD.r of 9X9mQllOnS r:lailTl'Jd. . - . . .
7 W~9.'O$. $ill.,;,u. lip.. .-e. Attach Forrn(,,) W-O!
_""'~ Q
_ fW'91~l!'''
n.- ~bo"'" '" 2
" , J I oj i , ~ . I .. I
..
b
.
,0
11
12
13
14
15.
"ll
17
18
l'
20.
'1
7
. . , 4~,_...._,'n.,
. ~:i::!i.'i: :::
!I
10
-"-,'31r:
T...ltr. Inl.r"~. "nlct! Schedul. B It r.qllirlCl ..., I. . . " . . I · . .
TIll-.lIe",pt im.IYS1. Po not inclucl. an tine Ba .... lliI
Ordinary divid,,,ds. Aft.'!lch Soil.dule B if r,qllir'~ ..... - . . . - .... "':
TIlllbl. ,.'ll"ds, c."dil:l. Clr 0ff20" 01 tlat_ a"d Ie cal'ncoms lillln (su F'9' 27.) .
^lImony reeelVecl ......,..... , , . . . . . . . . . . . .
alol$i1l.;s inco"... er (10"). Al~ch Sck_d\.lle C g C.EZ . . . , .. .....,.. I .
Capital gIIin ar (rClU). Attach Schlld\l'- elf flquiT d. It "01 reQlli,ed. check h.r." 0
Olr:., t;I"i~ ~, (Ion.,). AII.ch Fo.", .791 -. ". , .
TohlllRA di,"ibu,lons r 151 I .. i" Talla~l~ ~~~~r(~':';.~.~:1;
To...I"""",,,,,.....,,..III... 111. I I It TI..bl'll"'Mlrtl{ooepa,oU}
R."tal ,0..1 "lare. royalties. partn.rship,:, S eorDC nlionl. nUN. 'Ie. Atl:ach Sen'dlolll e .
Farm In~o".,. orllGssl. Mach Sc:heQIAII F .. ..,........,.,.. - . . .
U".mp!oymonl c:omp.nIl"tlo" ...,...........,........."..
$0c:;.,1 '~lIrfty b..,.lits lID' I I b Tax"bl. amot,mr ("'D P~IJ~ 28)
0'''.' Inc.o"....
11
12
13
H
1Sb
fib
11
18
t9
20b
1.5,031
R
23
2.
%5
2.
2'1
II
2"
30
:\1.
Add rnll "moUnts in th. far right calumn fo' ~nn lhrough 21. This Is YOU' tolal ineemll ..
IRA O.lluCllon (SI" pOlS' 2Jl ." ,.....,.. ~ ,~,"'.'_' n'
Sludcr'\llolln inleresl d,duc:tiQn (5". Fag. 27) .... 1 204
M.ttlC:111 ,;""i,,9'" ~C:l:eU"1 dllduelle". Artar;n Form 1153 ...!! ".. .,_...
M(I..ing .""."~,,. "u.sc:h FOlm "'03 ......',. 21
On..""" of lll!lf..mploym."t till\. Attlch Sc:hllclul SIi 27
S.lJ,olT'f'lol".d heelt'" '"wraMII <:I....clio" (n. fl go :ZO) ZI
S..lf."lY1pl..,.ord 51::1", 'iM"Lf:. .nd qualifllPCl pl;o"s ... 29
',,,/llly (In l!'jIIrly .,-lIrn1rllwal of !llvi/l9' ....,.." ~Q
","-,.,. p!llo ,. RlICipl."t'1 S9N _ $1,
21
ZZ
lS,38L
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)..1.:.-.,.......
.....'.....
, ".:........;..
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I: ' .' . . ~ I
1.0 ~~=i:~jr
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J:)::,::;.:,":~;'~
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32 AtJd Ii".!!' Z3 ll'1rolol,h 31,. ....... - . . . , , . . . , . . .
33 Subt'i"t ';"0 32 "0"'" r,,.,. 22, T"~ III yg.... ""I~I! R'O"," l""vm"
'or Ol.clo.ur., Prlll_01 Act. .,,_ p.,.rwor. Ihcludilllln Act Nalle.. !I_ pl'l iI. Ii:U
..
n
Sf
1,06~
1 '1 . 3 1 B
Fe,," '040 (2000)
Co
MAY-04-01 FRI 10:04
M A 'r' - C:f.1 - a 1 1 ~ : -1 S'
,"UI," rUIIV llUOD)
MICHAEL
Tax ilnd
Cr.dlfs
.
O'CONNOR
'i74-66-9395
=H A"",,u~tlromJine 33 (adjuSl~ grOts lncomeL. .................... ~1 J4, 318
J5. Chvd i(~Ovouwlrl 65 or olderO SliM: [Jt "'.s 65 or oIcI.,.[] e~nd. r 'i~\Y' _ _
Add I". "lImb" of b(l_ c:hec:lcltCl .bon end .", r tn. relill ~.,.. . . . . . . .. 3~:~<~~t
h " yoU a.. ITllIIrriad Ining Ctplilrllely ancf ~ur SpOilt Illmlz" dnUClions. or "-- }1~r,\M
. ,"":i.";Il"."
yow w.rt i dU'~-stiitU$ iJ~. See P'g. 31 ~nd eh. k ".re . - . . . . . . . . "'3!$b 0 X,:VX;
Enl"" )lClur ltePlt"wd 4tdwclloft. from $ch.cflllll! A, in. 28, or lIb1f1dard decllolctio" -,iii:!V'r"
shown en I,,", ,.". B~t :c:. "::I~. 31 TO find )lllur ,'. ci.rd citducllo" it yell enllck,d ""y "xnit~,
bOll con fin' 36, 0' 3Sb Dr II 50rn..,", ~n claim)lel liS B ~.,.'nd.m . . . . . . . . . '31'"
Sublrlct 1;1'10 ]6 '",m Jlr:e 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n
tr line 31 is U6.700 or Ins. "'ulli~l)' 12.100 b)' 'nel ft.1 n",,~bo, or exemptiens clilimlld 011 ';;'7'>
Iln. 6d If line )4 is over 19',700. s.. r"e wtlrllth-"t 0" page ;32 ro, 1m IIrYlOun, !o e,,19'
Tall.hl.lnco",,_ SullllaCI 'ine 38 from IN 37. II Ii . e 38 is 'Y1Q'lIlhlln II..... 31. .,,~, -0.
T'll Cu. PltgE' 32). Cneck If IIInylu ill rrl.lm I O~ 's) 18'" -OFO"" 4!l72 ..
Altetn'1Ti\le Tl'Iinlmu.." '..:. Altlcn F'g,m 1251 . . .
Add Ilh.... "0 and 41 . . . . . . . . . . . . . . . . . . .
Fgr.lgn rail e:rt'tflr. ""...n Fo,"" 1118 If "qllir.d . . . . , _. 43 I
Credillo, .."ild & d";t,.,d,,nl eilr. .ll~n.~n, AUaen 0/11'1 24141 <<T
Crtdil If" tho tldorly Of tt>. db...OI'd. Al",cn Sch.dll , R 15
Edue:lItion CTldits. Affllcn Jl'orrn 8863 . . . 41
Child tat eledi( (.." j:'otge J'l. . . - . . . . . . . . . . "7
.6,dopllon clod:!. Attilch Ferm 8839 . . . . . . . . . . . 18
O'''.r. 'hull If from a B Form 3800 It 0 For 8J!l6 ::~?::;:M~,:
f! 0 Fo,m $801 ~ Fllr,." (llpeclty) 49
Add rr".s 43 IhfCII.Igh 49. Thq, i.,. Your Iolal e....,t. .. . . . . . . . . . . . .
Swbllilct lin. 50 from line 42. /I JIrt.. SO Ilr mer" ri'rll/'lll "2. enmr -0- . . . . . " " '"
5tlt-.~'ioym.n1 tn AtI~ch Sl:hed~r. II .... ......,........
SOei"l H<t:Urily and Mf'CIic.... IlIIll on flp IMO"" nof r' om4 ra '~'oyer. All.c" ""'" ~1" .
Tit) On IRAs, other reli"",,"f pial'll!, .,,.1 MS",. Attic Form "29 If reqUired. . . .
Advanc. ".'mld Inco""" e,.dft pay""'"I. frorM Fof'rfl(, W~2 .. .
tlou:o;.,I'IoJd .mplcymO"l ~lflIll, MACh Sehoelullllol . . .
Ar.ld 'inOl !1lhrou ~ 56. This is your lelll' ta: . . . . .
Federal income !all with",rd from Farms W~Z and 10S 5'
7.;00 ."'....,.,, \.. p;ly~"1S 'nd oIlmllWll ~CI~II"d f...... 'MI........ .., 511
r.,,,... ltle.",. c,edlt (EIC). . . . . . . . . . . . .. 6g..
~:::b: eamed incC/me: amou"' .. ~~~
s:"-..,cW'-CII',ly.,,.""TAI.....'tllll.wr_'.""O). . . . . " If
Additional c;hl'o:;I ta. c:recll\, AnllCh Form 8812 . . . . . . . .. U
Amoul'lt ~~id wit'" r.~u'll 10' "JIlt,",kl" tll' ,,!. (s~. SO).. 13
C't""'/NY"l"nl', Cto-"r'lll'll. OFOr"'ZoIl!lI b U""""lU. 64
Add lines 50. 51, 60.. and 61 lhrough 64. ]'hue I,. Ur tol.' I men III
If /1118 '5 It ""'te th," Oil. 57. Syblr~II'"" '7 f,om II... II. "h/:O. r. J . ._...., y.... overp.ld
Amount of ~n. 60 you vrtlrtt re"",d.4 10 YOII
"olllin; r:umb.r
AC:~OIl"f /'lwmb.r
Amounlofll"t"you"'nl ~hod~rw2OQ'_'""ltd_
If II... 57 r. :!IOI'll th.n IIn,es. ...tll,-=r iIJl. iC .,.... II"" 1f1. Till. I. tr,
For dlll.ll~ on Imw to paV, _0 ~'iI' 51 .......
7D E..sllrnlltelil ItllI' ~."a ,"I~ Include on Ill'll 69. . . . _ .
Un"., ~"..11I.. 01 """""1. I ",""I.'.II<I~I , ,.....--..., lJIIS..1Imt arod...,
""lief, 'Pl-V .,. """, ce'l'ItCl. .rldllllnlpl"ror. ~d_"otI of PI"".' (III"" I
~ YOU, "lIn.t..'~ 0...
~ Spc"".'lltl""",,,,,,, 11101111 rI.IL/I'", e.otll musl~"g", 0.'.
Other
TlXe'
.
".fund
MIIVQ il
direil:f/r.
d'~'lt~)
s." Pllg., 50
ilnd Ii" In &'b.
67e. and 67d.
Amount
YQU Owe
Sign
Her.
",oin' r"lurn?
s.. 11.0. 1'.
1<""" .. 1:"1'1'
for YO...I
r_eotdlf,
Pllll~
. Prel)o),er's
Usa Only
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I'
II
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'4
85
65
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.. It
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..
FAX NO. 9529290568
CONWORTH. INC
J'OHI'ISOH U~RSON PF"TJ:::~SON
AM
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37
31
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41
42
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x
11:;/01
/Ph",,_ no. 76'3 - :2 9 5 - .Q 1 i :2
Form 1a40 (~QOQJ
~
CONWORTH, INC
MAY-04-01 FRI 10:05
M""r'-~~ -~ 1 111': $~
LfIl r.::SO Ii PE EP.50N l'Eo36e.2446::5
FAX NO, 8528280568
AM ,101 tt~"'OH
.
SCHEDULes A&B
(Form 1040)
Schedule A - Itemized Deductions
P,O?
....0...
e......."'.m..f '''-''N'''",
'''ttllll!l A...._ ,,,we,, tt9)
JII"m-!-: tll\",..".o" ".r", 10.0
OMS Nq. 15115-0074
2000
!l1'!;'lC~In'I"t
· s.. Ins ruttlonl rer Seh.,hIIlt!l A "lid b (Form 10.,0). S~qUMc" No. 01
T_ _at-../cy..._
MICHAEL
MHlnl
.""
DenAI
!lcpen...
Tex.. Y'lI'U
".'d
(5...
P"!t" A -:!,)
'nl.ral
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(S.III
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not
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'1
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",.,. Lnl.. 19
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en. MOil
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h.,"i~."
DlloJlldlone
· Aneeh tll Fo,m 10.,0.
O'CONNOR
C"utla". Do "et rncll.lc:l' .llpltr'jse, ,\I;mburuCl or paid If lllk.,It.
1 M.dlcal linG d.ntallllPlnsllI (soo p.ge A-a) . . .
;2 c,,,., a_I f,o... ,...... .'040, "....:u '" I a I
J MlJhlply iii'll 2 .boy. by 1.S% (.01s1 ,.. ... .
.. S..bl,acl Ifno 3 'rom line 1. II lin. 3 15 ,,",or. Ihan 111\11'. 1'110' ..g_
, Stale and local I"co""o I".."s _ ... ..... . .
· l'leal \I!llllre IllX9S (,.. pa;e A-2) . ., . ..
7 "'''0"'1 PfOP$rty '.:OlllS. '" . '" '"
I 0,,,.., !~JCIIS. Li~ type and 'fT\OUf\t II>
!II Add liMe, 5 lhrouiiha., . .
10
'1
. ,
l:!;gi~i
,
~i~r.4
3
. r .
.
6
7
4it~:rfii
.
HI
3.225
",,"'. """11191I Int.,... 'I'!O "DlIft!l I'D"",.., to y,,,..... Fo,", ''''II.
.....-l!'IOI'taag.lnl....'l'lCt ~,.'"' IDyay on F'~r'" lC!8, If ,.l~
... ''''.~" 1",", ...,,,,... ",,, beVf"' rM ""11I_, _.....4-5
~ aho....lhlIIMII'llOll" ...""'. flf...Ufyl"r.,... ""of .~.. _ . .
ft'tCtfltl ... .a.g. A-4, , " io ,.. to
Oll'lor than by cash or c"'tc~. If ""y gilt or t2~ or ",",rll,
1I,", pilat A.4. You ",u.I $".,," F.,,,,, 821i3 if o...w ISOO
Ca'ryo......,l'Om prior )'"a,. .. .... _ ,
Add lines 1S through 17. .
C;uya/ty 0' l"~'t 10u("J. Anach Fotl'l'l 4684. (S.. Di1~ ^ S,) . . I
U",.imbutstd """ploy.. exp.nslS - job Ir3V81, Ul'\ie"
illY",. job "dull. lIon, etc. Yc>~ "''let "nach Form 2106
or 2'06-1:2 fr required. (See pag" ..5.) .
T... pr.p"r..,j"" foe., .. . . ,. . .
O,".r 8Xpom"" . Jnv"s~nl. sa" deposit bell:, "Ie.
ryp. ;and amount ..
. . I
LiS!
-I
:~;~:),;~~'
11
15
:2 761
Al:ltf "n&5 20 Ihro~h '-:l .
.."..... .mo....t '"'r.1 ~lI!'1I'I100l0,1l". 3~
Multiply I1n_ 24 Abc"l by 2"1. (.02). ,. . .
Subtracl liM 25 IMm 1IF1. 2J. Ir fi". 2i I:: mort than /in. D, anter .g.
Other. from list on p.V' A-I!. LiillYpe ::Itld amount ..
. : i ~~ i .
, . .
:~:f~ij~~
,.
'7
, I .
II
20
.,
. . I I
\I
22
23
.~~t~.til:
25
.. ,
21 Is Form 1040. Ii",O 34. "...., $128.950 (0'1" Ifi4.475II marritc filing S'p:"':rtll~)7
[ig No. 'Y~II' dedllctio" I, no! RmJl.d. Add d'l. amounts In . fa, rIght lI:olumn
fe, fin" 'I thrtJug/'l il7. Ar!O, 'n1et thi, .mount en' olm 1040, 11n" 3'.
o T<q. You, d.duclion n'Io1y ~'!' Ilmi."ol, s." lIt.g. A-I> fco"M """'''''''0 '"'Of.
] ~
.
For P,p'rwork ".ductlan Act NOl/ce, ... Form 1040 In.'f1.ctiOflC.
"...
474-66 9!2.S
I
4
al~I'
lJ
81e
i;;i:W~H
j!~;;I~:
I
i~.:;i,~r3;i:
~!;~.f:~~,::
14
3, 215
, ,.,~ ~,;\.;, .
j.~!:~~:]~'i;
Ii
l'
~,76~_
,,,
I:
.;! .~'y~;}~t
:f:~);;;j.:
:1
2&
ii!i;~~rf\:
'l7
zei '179-.
.;~j~1;;~tjf)~f:i;:[~';;t~:.:W~::::; ;::,\;~,~j':~~i~}:\~r
3e/'t"u/_ . (FlIrm ra..O) ::lOGG
~
,
FAX NO. 9529290568 P.
-01 FRI 10:05 CONWORTH, INC F'.13T
PtT IZ RS 0''''' T6:56e~~'1oqo:.::l
J'lV-04-1iI1 le:5e ~M .Jt;lHI-lSOI-l LAR$OH
CCHEOU~~ C ProfIt or Lo! S From BuslnA$S OM8 No. '5~',ac74
(P'orm 1040) r--.;.- ,-
(Sol_ ,o"rI.tgrlhlp)
D~~,.",,", M 1".1'....11')I .. P~rt".,.hip., J.'nt v_"*W'., k., rnnt 'fl. Il'olm 10&5 or Fo,," 10IS-S. 2000
'nl.mall\'........ue Sel'Yic:. (V9) ... Attach to F"1'I'II1040 0' 1'0"", 1IM1, ~ S.. InstructIon. for SChedl,lr. , (Form 1V40), g~1~:~:n~". 09
NilI'M 01 proprielor $o(:I./..e\lritl" "Wr;;b;, (SSN)
MICHAEL O'CONNOR 474 - Gs -98 9!;
A p,,,,t'ip,t bws""" or prQI.ssIGn. 'ncll/cling IJfadl,lCI rlr ,el'\llce C.,. PS! e --
C.l of lhe fllSlIVcliolU) I I!'_..... rl"llm...... e-1.. 1
AUTO REPAIR .
C Q\,/lIi"nl nllm.. I' /'lO S.p3r:lI.le bUtINl!t!C "''-. NYe eo'.nk. D 1i".q...ID~IEIH),I1''''''Y
E 9\1$1"05'5 ad;,... Clncludll"l1:lluit. or lOOITII\O.) 219 W FRO~ T ST '.-
City. 10"1'1 .r 1'051 office, slet.. and ZIP' codv .. MONTICELLC MN 5536.2 ---
, AecDu"""liI met"od: (f) L2! Ces/\ (2) U A\:\:rual (3 I U Oll,.r (c,.ec:iry) .. ---- ------.-
G Did )'.... "mOla,i"'17 1M1tic:1~11'.'n \he operallon of thill bu"i"llU d\'/Ao\g !C007 If 'N~" ".e plgtl C-2 for Hmlt Dr! 10!S&s ~: _~~~P"
H " rOil l'Iarted or 3CQUINlc1 ,''''s ~u,ines' dlolrinq ZOOO, ch"~ ~'re . , . I .i II. . . . It" r I . I f. II I , " t ,
\'Pai':fI <; Inc:om,
1 Cress ",celpts or ",les. C.WI/on! lIll'lis inCCIl'W ....as 'v~c"od Iv yoU on F gr"., W-Z inl:lIM "Slillllrery
IImp/oYte" !::lOll 0" Ihllt form wes el1'l;:k.d, SlID p.ge C-2 .nd chick hII . . . , . " . . . . . . .. 0 1 .2 Q.~ 6GS
:z "I:turns and lIlIOWances t .. . .. , , . . . .. _ . . . " . I , .. . .. I' . " ~ . . .. . 'I . . .. " r II . . . 2
3 S\lbl,aCI fin. 2 Ir"m line 1 . . . . . . . . . . . .. .. . . I ; .. _ _ .,. , . . .. .. ,. III I . . . . .. " .. . . . . ~ '20,665
4 CO!t 01 9QO~llal4 (lrom lin. 4z on page 2) . . , ....I'I' i . . . , . . . - .. .. . . , . . . . . ..
5 GRIn profit. Subtract fin. 4 frOm iii'll 3 . jI t .. . . 4 . . _ . ~ . . . . . . . r " ~ . . . . . 5 20,665
· Other meo",.. incll.ldlnv F.aer",llnd slat, gUllS". ", lUll tax credit 0' r \lnd (s.. FlaS9 C-2) . . Ii .'..---
7 cr~.~ incom.. Add li~es S_IM 8. , . . . . , , . . . . . . . . . . . i . .. I I . . to . I ~ I . . _ T ... 1 20,1')65
[P.rt: rr, Expon..s. En'" up""se, f~ bll~rnns WS' Of YOUr no",. nlV' on IIn, 30, '-
· A.;/,.ootisil'lg .......... I . 1 Plnelon "nd .l'rofic.s",,.,lnl,1 .'Inl ~ .'
S Bad dvblS frDm ,;,.fo:l or at Aenl Qr 10115. (5'8 P;l9' C-4); ;;:;;~.'f"
~trvites [lIee P-'lg. C -3) , . Vgnreret.lllehJne'Y. .~. eqlll~menl 20a ---
10 C.r .nd Ir\.lC" ex~-~s<es b Olhllr blolsi"'1t plOpeny . . IQ!:r
(s\Ov pRge C-3) . . . . 10 943 21 Fl.".ll11 and m;l;nllllanC8 . . 21
.._-...
U Comrllisslans 'nd re.s p .. . , '..l!- 22 sup,... (nClllllelud,d '" P'rllIl) , . =2 ~
~_.~
'2 Ceplelion. , . . , . . . , _ _ 12 13 Tallu Il"d lie,"s." , . , . . 2~
-
13 D"Il,.er..,lon and ""clion 179 14 'tn",'. .....1'. .".. ..",.''''......."1: ~~L~~';;i:f.
e.p'l'Ilo d.dlolcllon (not inolLlded . Travel. . . , . . . . .. .. . ill Z~I ,-
--.-
I" rarllll) (.v" P1l9' C-3). . . . 13 :2 282 ~ "'e.l. end
111I EfTlpJ"YVIl b'",,'it prollr.."" v"te""''',","l 185
(ol"'r tha" on II",. 19), . . . . 14 Ent., ""'''~@~e-
In!l1,lr."ce (oln." Ihan "e"'tll) , IIbfe ~1!I"u"ll no
15 ,. CIUol."." """
:~i~t:~ ,,*b(llee 92
15 Inler'5l: ,o~c.t) , .
I Mo "1111 ill (paId to blnks, lite). 1'. SUblri'let Ii". 2-4e ',\;1m Iin. ~~b. 24d 92
"'1__-
It ou,,,. 0 . . , _ , , . . . . leb 25 UI~lli'''1 . . . . . . . . " ~ . ZS
17 ',- 2C Wages I'''''G amp1llrmonl C1elflls) 21
L.e;al lI"d FlrOI"~$ional . --
,,,,,,jees 01 , Ii " " _ _ . . 17 27 01"''' tJlIDenses (f,o," r."., 48 .."
111 OHie_ ."I)en"e . . . , . . . ,. 161 ~O~ 2) ... ~ . II . . . . . . 21 2,156
28 Total ',.".ne" berore .llpvns_s tar blolSinHll u_ "f home. Add nl"l's e tI "l\lQ" Zllt'l eo""mns. . , ... tS S~,~L
II T.,,,,..,i.... .,'efit (Iou). $ubtr.C:1 I;n9 2. f'om IIn.. 7 I. . II . . . . . . . , 11II. .. I . . , . . 29 ~S, 031
0 El<pcl'lSOIS fo, busin"s UlIV 01 Y"UI Mom.. .Attach 10'," I82t . , , . . . . . . . t . . . 30
-..---
, N.t ",..nt lOr (I""",. Sw..17act lin. ~o fro,., lin. i9,
'11. pr..til, en,er on "a'm 1040, lI"e f~. .nd .Isa on Setl.tlUI. $1;. nn. iZ MM"'Y lrmpfQyges. } ~3L_li~
~r Pig" C.S), e't.:Il(lll "nd "....1::1. e!'lMll;ln'otm 1041,1I1'l.3.
e [' .. los" yOlol "'1.11/1 ClIO 0/'\ to Ji..... ~2.
2 ,t Y"'" h..~ /I ,."", check 111- lt01l111111 d'3erlbel ]fal.l, i'\lI.d,..,,~ in II'd" lOCI ;..1)' (,., ,,"p C-S).
"IT )'OU crt.eklrd 32a. ."Ier lh. 1011 D" "or", 1040, """ 12, .nd ""'0 0" $e fcllll. SE'. line Z } 32_ B ^!II"v.~I'''.", III ~, rl~",
(SlilUIOry employ.." lI. "ag. C-S), ri.llIle! 1M VV:rI" Inf'!lr Oil 1'O/Trl 1 0.. .lin, 3. 32b $e~ h\"b'",,,,,, I i~ ,.~t
- If )lOY eh.~k.d 32b, YClU m".t allac'" I"ann 1191. "1,1~Ic,
-
For '",..,werk ReductIo" 4et Notl~.. ... For'" 10111 1"..'.,...1""", CIA Setle~..r.. C (Fa,,,. 11"'0) zaOQ
n__
08
MAY-04
M
.
.
3
:I
.
o
.
.
.
MA
Y-04-01 FRI 10:06 CONWORTH, INC FAX NO. 9529290568 P. 09
M""......c;o....-G1 1'21;051 AM .J"OH"'I';:O~~ LAR!'::nl-l F'~ T":P.SO~I 763Ge?.446S 1"'.138
So;~."d",l, c: (rQlll'l 10"10)2000 AUTO RE~AXR P~g. 2
NiltnG(S) ISSN
MICHAEL O'CONNOR 4"14-66 - 9895 .
~1tJ'::tlt: Cost of G~d' Soltr (:,... pllg. c-6l ....-' ~
33 Mlllhod(:s llols.d 10 o CoSI o LClwsr al COCI a U Olhl!'r (.allallh "F/.n~lliO")
..illu. dcsirl9 itw.nlory: . It r markql c
34 Was there IflY cl'I:!Iflll' In determining qu..,tidtl!l. COSIS. ar valuallons _IWl:lon opctf\lng and closing Inv."cory111 Drill: ON/)
"y,~: .ltlth 'll:pl""~llo". . . . . . . . . . . . . . . . . . . . . . , , . . . . I . . . . . . . .. . . . . I ~ . .
35 "w'nIClOY ill b<rginning of Y.." If ditf."nll,om 1411 Y'Il(5 cl05lnllln~ ,,\ory. attach lI11plan.lion . . . . 35
311i 1'.....:""'..... '-.~ ':Olt eI /c.PrIS wittld..wn fot !"t'IO".r UIII . . . . . . . .. . . . to . . . . ill . . I . . 3.
37 Co,t a{ tabe". Do "'11 inc:1uo;l'll ""r llmount\t p.;d to l""uooelf . .. . .. , . . . . . I " . .. . .. .. . - '7
3' M.,tfl,al' Ind l'uF'PlWls . . " . ,. It .. . . " .. .. ~ - - - .. .. . . , \ .. <I .. I , . . , , . , - . - - " 38
3J 01"'" cost'! , . . . .. . . ". , . . .. I . It II I" .. . .. . . I . . . . , . . . . . .. , , . .. . II .. " , 3'
a Atltl 11,,0'1: 3& IMCUgh 39 . . . . . - - . - - .. . .. .. II . II . . . . . II . . II '" . . .. . II I ~ . . . . ..!P-
41 ln~t\lo'Y ~I and or yn, . . . . ~ 10 . . . ... II II . . . I . . " " . , l1li" .. " I I . . .. . . .. . . ". '" . 41
._-'-
42 e"lt of 1l~<<I1 told. Sublrltet 1m!! oi, from nn. 40 Enltl1 \h, ,.su~ tit ,. and on P!lq, 1. fine 4 . , . 42
:~P,..'lV:; lnlo"",..tion on Yo",r V.hlCT.. -
Camp'.I. \hit p"n canl,. if you jl~ clliming elll or Iruek OllPO:";C-; on
lin' 10 llnd .,. Plot ,.~ui,.d V,) tilo Form 4562 fal this businesl. ,.ma irlCIIUc!icms fe' tine 13 on FeSl'
C~3 t!:l 'lr'ld out ir you must fill. -----..-...-
43 wm.n did )Iou plaell ~...., VDhlclg In nrviell lor tll.n:lnns IIl1rpo n'? (mon:h. day. yl!!lll ~ OS-Ol~2000
.~ 01 lh. tela I nu...b.., 01 ...ll., you ~rev. Y"'" ..."iclo dUli"g ZQIO, ol'lt8, rho numb.r 0' mil.. you 1.1".01 youI ".1\7,,1.. r~r~
. Su,inus 2,900 It Co.,..rnuling c Olhe,
.. 00 yeu (or youI Ilpou'l.l "IV. aneth.r vehic/. ..v.:aRabl. fot p.' onlll use1 . . . . . . . . . " . . .. .. 0'1'.. ON"
~I Was yOIJr '<<thiel. llvllilabl, for us. duri"", oil-dulY hou,s? . . . . . . . I , " it . . .. .. . . . " I' . Dr., ON"
047. 00 you tlilv~ evid"nc. 10 s;"ppo.1 )'0"" d.d",eti,,"1 .. . . ~ . . It. , . . r Ii I I . . . . . . . . . , .. . o y". o Nil
.. If "Yn.'" i, I.... ovith.nu wrltt_"? , , j .. . . .. I. . . _ I J . ,. . . . . . ~ , , . i' , . I J . I .. . . . . nY"l! ~
':l,P,ar,t VL.J; Other I!xpenses. Lm Billow &l.l$lntn hJItnstlS net i"cl~d d 01'1 Ii"", 8.26 ~ 30.
I ---
UNIFOR.MS 375
CELL PHONE ,_~O7
EDtlCATION ,._.~',. ,_....1..L
PART); - ! ~,~
V!i:HICLE REO I 5 TM.T I ON __.-1.L
-
- ,...,-- --
----..-
41 Tol,1 011,.., ..,.".... e,.,t.., h.,. ....d on ",ag. t. 61'1,27. . . . . . . I II Ii . . J '" ~ . ". . ~ - . . . I 4& 2,156
ilEA Sc;h.""I. c: (I'o,m 1010) IOVO
..-..--- --.-.---...--- ._. .'_n_.
kJ
MAY-04-01 FRI 10:06
t1~'(-04-el lA:~l
CONWORTH, INC
JOI n~30N L"'F<;SUM PE ERSOH
r-.0~
.:aM
.
SCIiI!DUL.E S!
(Fa,,.,, 10-40'
s.rr-EmpJ: yment Tax
~ l~18'ao1t
.. 5.. IltItructionll 'or 'Gheclul. 51 (Jlo"" 1040).
O.lHrI",."t rxf'M r'"~llU'Y
In1"'l1.' "_nw Servle. ... AtladJ "or", 10413,
N"mo of plt$on wltl'l ,."-,,,,,'o)'''',,,r in~Drne (as shown c)I\ FC)rlT\ 1040)
MICHAEL O'CONNOR
Who MIlSI File scnedule $;
Y'OIl/nllSIIil. SCMtll.l'" SE if:
· You "-td ",r ..'nill;. f,om ""-tmploymel'll Ire,., ath., '1,1/1 churl:tr wm loye. ineol'Nl (line 4 af Shen Schedule SIi or li'1II, "e 01
LOllS Sek.aulo SE) of '400 or ,.".". .f
· You hId ""'1r...h employ,. Income of fHIS.21l or more. Inco,"' lID"'" - ts )'OU ptlrtormod ~s. ""nilll'!', or a Membllr ot "
"'lsliollw D'd"I. /tet enurch .mplore. IncorN. Sa, pIg. $E-1.
Note: ,"y,,, II you ked.li loA 1M' Il"IlIlil i1/TlO"""1 ollflCc"" tro", .d-.mIlIDy
IIse eitMtr 'opr/DNlI ""hld~ I" P"rt rrot L.O"9 Sd'lotdule SE, 5". page Sf-3,
lbel,IIOII, II )'0\11 O"'y '.If-~mpletY"""1 J/lI:O/Yle '"I: "et'" "''''["9''' . "ilolOl', ,.,.m~.' e, 1II ,.Ii;io..." old.r, or Ch,ifll.." Sc:i."clI
pracfilio/'l.r Inti yow tiled Fo"",, 438' lIInd ,.ctiv,d IRS apPlovllI MIlO bB hi on tho" .,rni/'lgs, do nol file Seh9dulo S~. 1",,,IlIad,
wrilll"!!.ftITlpI-Fo,rn "3G1" on '0.1'1"1 10040, fin. 52.
FAX NO. 9529280568
p, 10
7G36lil244,.,=:;
f!OOO
"'111~"_",
S.q"e"~.. No, 17
'.f7 '!.:.2E. - 9 Q g S
FIt. it ~y bll to YO"" 1>..".lil 10 lile Sc"edule S! and
May I U.. St)OPt Seh4tdule se or MUST I Use Lang Sd1. 'lIe SE~
..... YOII a 11\1",,,.,. "",mlle, 01 .10 ,.II~IoIl!l_. or Chrl~'~~
,~ pr.etl'.",.., WFllI ,et.,,," IAS .,p_l_ III Oa '811N
III -",",.. f...'l\ ,~" IlIwrn.. IIll( YOIl 0VI9 ..If o""",loYIMIIl
".e" ,,'M' ...nl""",
.
No
..... Y"II...'n, "n, 0' 11\. OptlO"i' "'"l'1etb to fit.... YOllr ...,
....""",VO(~.. f'~. 9f:-3/'
No;r
Old YIIII ,.~.,v. cllun:FI ."'pr~.. fnee"'....",,"........ ....r'"
W-2 ,,'"101,2" G' _,d
No
T_ .... u_......, SIr"'""""" sc__
I V..
.......m.nol.. ., you. Wig.. "'~ 11"'1 'IuD)..., '" .eel.::'::--ru
wr .,11'''''' .."......'" I... ".. Y_ ~I ..,....... 'tfMO
.,.,'....,plll)'!llent 1"l!lT' tll... S71i.:!001
"0
No Olel Y." _.r"" lip" ...bj_ct 11Io.cl" .K\lfll, '" M'ellr:~."I,",
....1 )'Gu"..,..... ..porl I" YllYr 8ll'oph.)'.r7
, y",
, -'--+
__..1
........
-. "'1'....11.., L.... lIc:_... SF. ""' r...."
=:J
Sec1lon A--Short Sel,,,,duI8 SE. ~lItlon: R..d abovo 10 sn it yo can Use ShQn SehoduJ. SE.
1 Net '.rl\'l profit or (1"",,) ',am Sehvdult F. 11M 36. IlJ'ld farlT1 part"ershi s, Schedule K-1 ("or",
1065). ling 15" ... 0 . , 0 . , . . . < . , . . , . . . , . . , . . . , . . , . . . . .. ....., 1
2 N"I profll or (lOll) Irom Se~"dl.llll C, Iln' 31: Schedul. C-1!:2. 1:"83: S i'I.dul. 1(.1 (Par", 1055),
line ISa (Ot"" l"-tn 'a/f'l'llng): 'ind Schedul. K-l (FOI'm 106S-!H belli: ,MlnlslIlI."d mllmb..,s
0' ,.lIgiol.lll o'ef.n;. $" ~";e SE-l 'OT :UI\OUnll to "'PO,1 0" l~iJ llNo. l'e ".ge 9E.2 'or OIPlllr
inco"",, 10 repon . , , , . . . . . . . , . 2
3 Combir1. li".s 1 a"d 2 0 . . , 0 .
4 ""I ..'nI1l8& fre... ......."',.t.y"'."'l """lliply liM 3 by 'i!,JS% 1.123 ~ I' len Ihln 1400.
do "01 fir., \/'Ii, lI~hedllle: 1r:1t.1 do "01 awe leIf..lTlP1oyrnant!lll:. , . .
.s S.'f-e,",loym.II' U.II. If II'. *moll"r 0" P", .. Is:
· "6,2000' I'5S, mulliply nne" by 15,]% {.153). E"lll' Ih. ,,"<lh ft.,. "',,,,.....
F.rm 1040. lin. 52.
, Mor. Iha" 176.200. muh~ly Ii". . by !.n'.I.02!~ no..... .d4 ",44 .80 to trIt
,,,sullo em.,. m. fOU' 'lire linG en F.,," 10411, 111M '2.
.
15,031
3
1 5 (.,Q.!!
lW.~.!
...
4
}
00. ,., S ~
1, 062 !~';i!~~~~
SC)...dul. SE (Fo,," '044 21100
8 ~uetio" 'e, ."o-h_1f 0' ..If-.",ploy"..", tall. Multiply /I/'It 5 B~
50'/. (.!l). Emil u,lJ I'asull /'Ier.:)M an F.f1f1 10oftl. "".21. . , , . . e
For Plp.,.o'k R.....etlon Act Notlc-. ... Fo,," 1040 I",t,uetlllttl, l!:1!A
to
MAY-
04-01 FRI 10:07 CONWORTH, INC FAX NO. 9529290568 P. 11
..10~'''''GOt-l LARGO"" PET ERSO~' 76:a:6e24-'l$S l"_le
MA'''-Q4-0 1 1ClJ!S1 AM
SCHEDULE EAC Earned In come Credit ClMS Nol. 15~'.0llT4
,'~, ....
(Form 1040A Or 1040) Qualifying C nllQ 'nformation 2000
Ctlmll',18 and Ilbe III lOe,," '0010A e, '0-10
~,.r1~.'Ij:I' '''.T,....\Itf emIY 1f YIlU I'll & t1 QUllUMI19 I;'nilc:r. AI'.e...""....t 43
'"'.rNC D.i,I..,..... ~"'Y'~ (III) S'llU!n~. No.
".~.II"o_ 0>'1 ~Iul'l'l ] r.... _",-=wi" ..-
MICHAEL O'CONNOR 474.6'~-9895
Befaro you bAgl" ; See l"olnlulICllOns for Form 1040A.llnn 38. arrd JIb. Qr Fo,,,, 1040. fines 60. Ind 6Qb,
10 rNlk, Illr. t/'I., (1) ~~~'n 11M lh. !I( 1m:! (2) YOU hive I ~U'Ift'fina ehild.
. If Yc:lU lake ch. Ele ,yO" though )'011 ,.. I'Illf .Iiglb e. )'llll ......y nal b, _llowed Ie 1.lo:a
,II.. ("oc/it for 1lF' III 10 y'''''', S.. p.g. 2' fw dell ll.
r~K~~~~i . It will 1.10:" lIS 10"11" U7 pro~1III y"ur ,"turn ilnQ ISI uo yell' ,efund' if' fCI'" do nel fill in all
linas IhalllPply fo' uc:h qUlIIlilying child.
. B. :su,. 1M child'!f ''If'''' D!'1 Un. 1 lI"d social llotel.l Ily nllmb., (SSN) on lin", 2 agree with tn. ~h~eflC
'''c~l ,"curiry card. Otn.twl!., JIIII" lime.... pre ". )'Ollr '.'um. W. I'T\!IY recluco or dl$olllo..., YOI.II
I;'IC. 11,11, na..,.,. 0' SSN en 'ho child', '!:Iei,IMeu . Iy ellld b nQI correCT, I;'afllhe Soei;jl SlPcu,lty
Aclml..lsuatl.,,, at '.IOD-772. 1213.
QuaHfyrng Child Information c rtild 1 Child 2
1 Child'S name FI'"....''''' LOlna"" ~1I" ~a'1'9 ~"t "",".
~_._. -
If)fCIu hive ,"or& than h"o q\l.IiPyltlg cf\ndro,.., 101.1
onty halll to lI=t two Il:I 9"1 the /TlIIllimvm ~rtdil. IBENJAMIN O'CONNOR
...n,., ......,
2 Child's SSN
n,. ehild ",U\l1 hllVI :In SSN .,. defirwd on page "'3
or tI'I. F01'" 1 e4eA 01 '040 inllln.lc,i4l'l~ IH,II"lII tn.
child WIS bor" ."cI "'lot'" ;., 2000, If YOII' child WII
ber" and d,ed in 2000 lilr>d did nol nil"" an SSN.
.nl., .01.11- en ,Plis lin!' 3nQ illlieh I copy 01 the 475.19-2 50
chijd's birth ='rtlflc:II"
-., ..._~-
3 Child'$ year of blrlh V.., 1983 Year
If bor" a/t.r 1981 skip lines ..~ If be'" .lIa, 1ge I. r;kill Ii,,"!: ,II;;
."d 4b: gI) III Ii... S. !lrKl -lib. Il9 Iv lin.. ,.
" " the child was born be10re 1982..- 0 Yes. 0 No. DYes. o No.
. Was the child undor ag. 24 .t Ih. .."d Ga te On_ S. C"""n_ Ga to "n,S. Contfnl,t8
of 2000 end a $IUcla",7
b W.. 'h.. etlild p.r"",,,.,,lly 110M letally 0 Y.S. 0 No. D YO!:. o No.
dl:tiblea ~rln; any K!lln of ZOOO? CDnt'n\f. Tn. child is not . Co",i"... Tt,. child is not I
qualifying child. q..,,,,Ij'l"..q c"ilet.
..
S Child's ,.lltlon_hlp la you
(for ""'mp'~1 SOrl. d:rl.lghlor, 9"ilndchild,
ml9r c;hllol, etc.) _SON
8 Numbe, of months c:hlld lived WIU1 -
you In the Unlt4td St.tes during 2000
o Ir I"" child I/v.d with YOII fe, ,"ore than Mlf of
2000 IllIlloss Ihan 7 ITlCInths, 8"I.r '7",
o If ,h, chIld "'lIS born or di.d I" 2000 AM yeur 12 months months
"ami ...... N Child',. "'..m. for Ih~ .nl;,. 11",. he CQ nollruer mort
or !:no wo.UUVt durincr2DOO. 'tr'll~r "2.. tun 12 months. Co n')l ."'er rroor. thll" 12 ,.""",lll',
-.-."....-.-
~\~ill~f;~!; 00 you want p.rt , frhll ;Ie .de.d to yoU' Ilke.hgme pollY In
20017 To SH ~ Yl 1,/ l21J.lify, ~, For", w-s frllM "'''~I' .m"lcy". or
, ",I F.?:~.,~, by eillling 11"I9 IRS I 1 -800- TA>C.rORM (1.80Q-829-3e16).
.:. "::....~~;~~,.j ,',"j"
'"' Pap.rwork "'odl./cUon Act N.t1~.. 1M FII'''' 104C1A I![A $chealJ/e IIC (For", f040A or 10.0) 2OCO
Of t040 1""n1CIJO"'.
--.- ---. --
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.
.
MAY-04-01 FRI 10:07
MA','-Q4"'l31 1..,;52
CONWORTH, INC
FAX NO. 9529290568
Po 12
t:lM ~TOI~N;Ot<.l
t...ARGO/-'
pe:TCRao.~
7636824415:5
f". 1 1
.
'or", 4562
Oapree'atlon al d Amortization
Oncluding Jnforrnatlo , on Listed Property}
OMS No, IS1$-017Z
D_I'1IMII"u I"" Tr"..ury
IlIrtl'lII.l ,u..~"" S~,.....,. (n)
H'm<i(if .......... "" "1"""
,. 5.. '.PlIlfllt. fn..l"'CClona,
2000
^'I:oehr?JOl'"
S.'Mtne" No. 67
Id.nli1yJn9 '''1'''''.;--
474-66.9895
~ An'th Ihi. 'Of'" te YOU, rlllJ,.,.
I"~ .....0' .elMI)' 111 """1ell 11111 I...", .." t.."
MICHAEL O'CONNOR I SCHEDULE C - 1
!If..r.r:'li:~''I Election To =-xpens9 --C-.naTn Tang'_l. Property fSect/on 1791
Not,: "YClU "Ive ai'll' "illlea ~'op,.rtY; t;11"""o~ Plln V tl"I",. "u =ump'ee.,l'llt /,
1 Maximu," del/ill' limitation. ":II/'! .nll,p~e zOl'le bu:in..s, lIee 1'"9. I 0' In. irlSU\JetiO~9 . .
2 Tobl ~Otl ,,' s.,O:IIo" "'9 prQP'ny praC:ed il'l SDt"tlc.. See pa~ 20' In inCll'uC'lio"sr "
a Threshofd eo" 01 SlO~liol'\ 17a prop,"ny b.'ot. 'eduction In ll,.,.,it~lIio" . . .. . . .
.. Pl'ductlon i" IImltalion. SUbuad Ii"" 3 'ro"., Ii..., 2 lll.ro or 1.$11. '''1 r '0- . , _
5 O."lIa, fi".,i'II'iol'l 'or till )'tar. Sllb1f~Cl IItl4 4 Irorn IInl 1. If ZOlO or~" Iflt.r -0.. If mallltd
1Ilin~ ,ep,'ral./y, sel p..go, 20' th. in:mvctio"s, . 0 .. ""
- (a) Dnc.JIlIIOII 0' ,.."~~ *,'1; rt (t>lIlIfM!il: un 0"'11
· 1989 1 TON ~CHEV TRTJCK 1. oero
-"'TOOLS 1.282
1 L/Shll1l'rop.tty. En'.r .mololnl ~m lI'IlI 27. . . , . . .,. _. _. .. I 7
I TOLlI 11'c:led cosl 01 s~llon 171 prop'/Ty. Add lmounts 1" c:olurm (c: linu i ~nd ., . , . 8
, T'''l.l!iv.. dedUOII,,". Inter lh. t;m.aller of line Ii '" Une- II . . . . ,
10 Carryoll'" of dlsa/lowld d.du~li..... I....... 199.. s... P"Se ~ uf In.. InstfU lions. , . . , . . . , . , . , '0 ~.
" Bu,in,,!Os incorM ll,,"l'I~lfo,... Ene" tho ~~'r 1:11 t.usJ"I'5S lnco\"l"ll (noe en lhll" uro) or line 5 (...I"'"vctla~) 11
12 5./:tion 17'i UP.rIS. decluClion. Add nfll}$ i ind 10. Out do nOI ,,,r.r '"'PO thlln Iin. I' , . . 12
~FTYo"'" 0' disallowed decluclill" to 2001. Adell...... 9 and 10. lau nr.. 10:. ,. 113 1 -
Not.! 00 l'Iot l,/SO P'!'llt or ~:'" III below lor list4d prop"rty (.a\nOll'lObRft. C;"l Ii" \II....' ",hfc:loa, sr"'IIII., 1l,Ip.phol1es,
et!lrtam to"',",untrs, or p'olll"nr Ulld fo. ....."rl.irlrl'Wl"t r9CT.II(io", o. "mil"'''' rIl). I",I~U, \/::0 P.-IT V for IIsl,a p'operty.
~J.!tit;:~1I MACAS-Oepre.;iation "or Assets Placed In ServIce Only OurlFlg Your 2000 Tax Y&ar10o not ""clude
IIsteel P"'''''r!Y.)
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-2,i~i-
'200,000
....--.'-
5
20,000
_I~~f~ti~~
(.) Itlft'led '0:.1
1.000
1.282
:!.282
....;(,282.=
20,000_
2,282
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.
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S,ctlon ^ .~ Cell'rll Au" Account (Imlon
II you ar" Imking tile election IInde, loel;O" ,8e(iX04) rn group Irry ",.. pfilCIlG In So/vice durin9 mo tax ye'tr inle on.
", IMr. gllneral :1st" tteCOuntS, check this bOll:. See pa'g! 3 al lne InSl/ etjon! .'.'.'...:_,.... ',.' .
;eelfl". g'.~ aen,,,,'I),,,ICI.tJon Sntl'm (( &5) (su ~lI11e 3 0' th., InwuC:lfon!)
lit) ...."'''.n<l ! {C)eruf.fDr...p...".,1 II II'
~~... pl<<!Cl In (buwllll"'.,'II~o;,,,,,..,"t.... ~~"'Y (')COI'lvmllon (I) A.>!elh9G (Ill) O"llr"l~li,,~ d"!!lmrt...,
S~lVfc. Iln/)"'." mSII'llCIIDn.) J"'"
. ,.:---D-
(iii) CI.UlIk.,I.." of P'ClCl."r
.
25 Yr!O. SA
27.5 YII. MM Sit
27.5 Yr.J:. MM S/~
39 Y,s. MM SIL
I . MM S~
,.dlCln ~ -- ../temal/VtO..lIrulltlOlTSnt.m(I\S)IS..~I~.Stll In. in,mUCI;QFl$.1
": ;~~::::. ;~~~~I~!~i~~' 12 "S '. :~
l: 40 '"ilr 40 vrs. MM Sfl
. ;UfJ Other J:reJ'reclatl~n (Do not inclu~lIlrsl" "'lI~.ttr,) J~" /liCIt 5 0' Ine InSl1UC:lill"~. J
17 CDS ..1'Id ...os ..au~tlons fo, .n,,1S plaCed In service I" IIX yeA" b.llinnl I b"or. 2000 ",
11 Pro"./1Y IlIbjllet 10 "cllol'l UII(IX1) .11I~li"". . . .. . . . . . '. . . .
" "CAS end oth., cl"ro,.eilltlon .. , .. ., ..,. . .
fPatfW,j1 Summary (Se. pille 6 of thl inlrrlJcli"",.)
211 li,,/\d ~rop....ny. (;/'11... a",.,u", Ir.m H". 211 o. ". . .
1O1 Total. ,!Iaa aedUttltlns on fin. 1~. Ii"" 1; ll.... 1611'1 eolll,,"" (,), ana Ilnsr:r17 !l'Irov;n ZO. EnlOr her.
a"d "" m. ;:I~prcl~,iallt lil'lcs of YOll' rel\l"" P"I'b"I.rsr"ips anet $ cCl,por.!io, _ ,.. Inslrue-lions , ,
22 For iln~1 .:IlOwn lIlIo.... and p/lllc'd I" JI,.,ie" durmQ Ih. el,me", Y"". .,,( r T
_ me llol'lion 0' (I'l. baaj~:lft'lbloll.bl. to secllon 263A >:'<:'", . . . . ., ,"A
'0' '.p@r"'cnt R.duetlon .let NOlie.. "" tll_ ..p......t.I".truct,lJfI.. &:1':'"
15. 3..y"" ",o"'.'!t
" S-yea, Il'QP"rtY
G 7-YliII ~'/lM/1Y
_~_JO-Y';Jr p.operty
. 15...,."., prop.rTY
f 2D-)'..r ~'aMItV
II 25-lIea'"ro~l1)'
h R.sld9nlial renlel
P'o~'"",
j Non,esiden"!1 "31
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CONWORTH, INC
FAX NO.
9529290568
P. 13
MAY-04-01 FRI 10:08
Mn"'-~'" 01 110 :OZ
fiN ,J'OI-fNSO~
LFlR~UN PI!: ERSO~~
P.12
7&::>61324465
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MJNNI!~OTA Do IrtrnG t of Revenu. .
Individual r"come Tax 2000
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MICHAEL 0 t CONNOR
If a joi,,1 NI""I'>\. 91l0U'''', IirSll'IlI"", iI"d i"lllll' Lut name
Soeilll Seourll)' "umber
474-66"-9895
Socilll Sseurity r'll.lmbt,
Yaur fl!ale 0' 01'11'1 (""""dd/l')yY)
Sll"".... filallf I'>lrllll"....idd/n'rY)
Pres""t hDIM Address (SII".I, .'A~"';'nt numb.r, r<ll.llll Stat. E1'9ctlons 1;1'""lIlgl'I FU'lCf
219 W FRON'l' S'I' ")'OI.lWa~I"'ICI,D1D~I"c'l1Cllu,..'",..U1. nOlI
Cil'J or tcwn Slit. lip cd. "'"..... Pf!'f eJ"'p.I," ..."........ "'aU'.'mr'rwde"'.
MON'I'ICEI,LO MN 553 2 I'TUr"clI..llll"_....f"rl"."rl)'.',...'...cf,"I'.; "-00
Cheek your 2000 f.der.r filing Stiltus (check on oriebOx):
o S/nglll 0 M.trilld fiijng joInt 0 Man filing Sllp:lra,.
I! filing teptllr./llol)/, ."I.r your "'POUM'S See.., Saeurlly n\lmetr
1 r:.li.,., tnabl9 11'1_,"_ ('rem line' 3S1 Of YOUt 'edt'ral Fl:lrm 19 O. 1ITl9 25
l)f Form 1040A. lin." tI' r:e.m 1040EZ, ~ JIrI. j( of 1".fiI.llJ: "GIrd) .,... _ _ . . . . . . . . . .. 1 !:;i
2. Stale Jneorn. tlPl ..witlon, 'f,....u hmlzed dedllclions on', a,.1 Form 1040, fill oul
lh~ ....orkllh..f oM ~'"i.1l 0' rl'l. M~' I"Slryclillrl.'. c.l.rmin,lhlt amounllo'lII in he Ie , . . . . _ . . .. 2 ili::
Coft~
00
~ He~d of hcuseholrf
."d n~mlI
o Ou.Myi"" wit/ow{'!r)
1,924
4 Add Un., 1. 2 and 3. If lh. ,.,ull Is . MgallV' nllr'nb.r, ptlJt p
~,924
3 Ol....r "ddltlcf'l', j"i;h,ding non-Mlnn.!cts ~"d inl".", (u,l ."t,yo;t;Clr1S", pt-g. &) . , .
. . , .. II I I
3 U~;
nth.,., .rounClI", "lImb"
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5 TOlal sublr.el~n. f.o", $.ctiut A, lil'lo ~S 0" fH'S. 2 0' 1",'Ii fGr, (I" InStructjgnl, pllge 9)
, , . 41 II ,. r ..
'.~ II
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8 Subt'.~t line 5 frem lin. 4. Ttlllt it' )"OU' Mir\lw..,ta ta"e~l. in~G . . . . . . . , . . . . . . . .. G
7 Tall Irom table on pBgU 2~-27, or r~rn $c,,",dule 104-1NOI, II... ta:
(ch~" bo.and attach): M-1MT 0 M.ILS D M-1 R 0 "'.I"i!I,Jrn.a~;
8 MiJrrillljl' r:radlt ('or jllinll"lllu,,, wh." bClh :;pous..I'l..... la/fill inca..... or t.."",bl~ relirBI'I18'lt
,n"o..".} fro"" S."II..." B. nn. 40 or line 41 on 1''';8 Z of form (5 "InSl/llcllons. p.g. "l
__~"" 97.4
10-4
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to Toud .,....iIrI ~9;\il'llll..,rom S..,Ii1im C, lint 47 on ptllj!'.z '" fa m. Check box (and altaeh
1Il;hedule) If cl.lmln;: M-1LTI 0 M.1C9 0 f::t,r;;.. 0 M-1C" 0 M-1MTC 0
t t $ublfilcllil'l. 10 fpcm lil'l.!iI. I' 6". 10 is me,. !till" 1lrI.. 9. RII in' . . . . . . I . . . . . . .
12 NDn~m. Wildfif. Funlll ol:,,"lril'\Ilicn. Thb wiD ..duct yaur ,.fll or incnr,se ~mo""l ow.d
13 ACICI 8MS 11 "I'd '2. . . , , . . . . . . . . _ . . . . . . . . . . . . . . . . .
14 Mil'lft.sota wlthhGlclln, (from your 2000 W-hr'ld '099 IOtII'lIl . . 14 i:n
1 $ MiF'l'1os,", .srimi!l"~ 11I1 Ind Form M -13 paytroonll m!ld. 'or 2 00. 1 $ :,ii
1& Child ."., de~end.nl c.,. cradil (allll..h SchaOlJle M-ICOl . 16 J[!i
17 Minl"lll~tll wo",i"9 fiif'lll)l cr'~it (:lI~~h Sch,d""le M.1WFC). . 17 ::h,
18 Mln"e,gla K-12 education crod~ (lJItaeh SchadUI. M.lI~CI . " !!!ii
19 Add 'in,,~ \4 (h,cu;", 19. . _ . . . . . . . . . . . . . . . .
20 "line '8 Is more tha" IIn. 13, .ubtrilct Ii". '3 frQ", line t!I
("'" InSlrtlC:l;ons. "'QII 14). T"i.11 YOUR RIiF\JND . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 Foo. diracl d.p..it of the M ,.h.mcZ l/T'QUnl en Dno 20. fill in .0
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FAX NO. 8528280568
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State EJection. Cernpalgn Fund
fou rMY dosignato 15 01 tr.r, mon.y Ie ao to help cafMlJdatlt fot stoto olri '" PIlY
eo..,...iljltl up.nul. To "o!llg",,', '5, find me party 01 YOU' cholee f,o," tl, lia to t/'1(l ,ight
ol"ld fin in lho c:orro,poncli'l'lg Codo numbor in the spacv prgylded 01'1 Ct~. , .f your Fgrm
M.1. If YVII chol:lU th, gOI'l"1I1 cam!,alg" furtG, the S5 wiJ be distrlbuleocl o",on, caPlllld.lII~lI
or .0 panJo,. 'f YOU' I" /Il/n; ~ joint rol~rr'i, your INY" IfIIlY ,,1~1Il dul,,_lo pony.
474...~t;-9g95
MInnesota For~ Mi~ ptlge 21
Pollti~1 ,arty nu~ \r
C.mocratic F.rm.r.~...I:Il'r. . . . . . 11
Indo~.~A~. 12
COnstilutlon. . 13
A"t/ubllcan . . 111
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Gen.rlll C3fTlpaign Fund
SeCTION A - Total subtractIon.. (Th' tl/tlll or nnll 26-J4 ,.Ill"", wIll bo ,",.ttcr on
linE'S of ~"r", M-l M,d ""'II/ bo Jubtt..alld from YO\l, inf:ol'l1O. 1",lrI'~ ns are vn p.ges 18 iIIn.; 19.)
28 Still, inc:ome 'all refund frem Ii", 1001 Form '040. . . . . .. ..... _ . . . . . . . . ,
::!7 InlerElSt "r mutual fund d;vldltnd.. ftl:lm U.S, ber\CIl D51~d irt Iho M.l ;(lRruCljIfPlI, page 18. . . .
28 Edllc;,ni,,1't iIllpon::;o.. you pall:l for your qUo/l'i'lying children in grad 10 I( through 12. Print rnOll
"~/'PI. and 9r:.de or ud'l eJ.lld,
-'._~-'-
II"lCll1:lli"9 I p."Y will "Or l"e...llS~ )'QI,.Ir tAli lOr If,crollle you, ~I\lnd.
:: J
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.27
21
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29 1/ YOl.l dicl not ir-mil1ll dedutti"ns 0/1 YOllr f,d,ral ",tLl,n IInd yell' h;lrilaDI_ conlfiblltlons In
2000 ""'''fe more tJ..,," &s00. fill irt '''e ',",",llnt from ."ofll$/'It9t on F 19" 11 of InstrliClions
30 eo"tfit. paid by I"'. Railroad ~'!Iiremlnr Bo~rd (f,om Iin.s 7. lib, lla,,1f 20b
or 101!"ral Form 10..0 or li"o~ '1. H~b. t3 and 14b 01 "lfrm 1040A) ...., , .
31 AmerlCll" IMie"s: T~I 3mounl o.,,,,cI IIln ~" /.,diln rHllrvat/on hn. liviPl'
on th. ,neMllon tnat w.." l"!:ludod in line 1 01 yolOr pr.,IIm M-I . , I , . . . . I . . . .
32 1'0r\iQn 01 SlJII-Il~loyed ....~Ith II"lSloIriU'lCII 'llp-"ses fQr .,.,hlch yo," dId not gflt ... feder1llta..
tI",.1i1 or ~sed la elalm II... 10(;"".,0(1 r."g~lIIrm car, m:llfTllnt. c ..d~ (allach SC"aQloIl, M- 11,,1) .
~ S...btrllC.ilHl fo, p.r:iomll ag. 65 0' 1Il1cf.,. 0' p"man'''Il)' .al'ld lcI\;ol~ dil.bloli
(IInlle" :5ch~uI8 M-IFlJ. . . . . . . . . . . . , . , . , . . . . . , . . , . . . . . . . . ,
34 Addhlo",llllbt'Aclions (YOII mIoIlIl ,,\tach SChHUIll M~IM). . _ . . , . . . . . . . . , , . ,
35 Total,"bt'..ctlonc. AGe! lines 26 threugh 34. Fill ill tho 1Ot:.1 hOle ono:l 0" ff.,. 5 IIlI I"or", M-1
SECTION B - Marriage c;redit (COmp~llI JirIoI 3&~-i1 .0 dot~r~ In.
the lImaunllO fiU in lilT'! Ii". . 0.1 FOII'l'l M-I. 1"~""ctio"1 lire on p..ge zo.)
3. Yo"r Jolrlt ta".blo ir1eo"... fro".. Ii". 1I1)f Fer", M.'" (If this..moum loss II'lSI'r Sal. feO,
~II do not qu.lity to, this crediL Skip lints :ill.At and fill in la,., j " line '"r "~"m M-l . . , . . , . . , , JG
31 Your Nr,.,.., '''0:0''''', ~Qblo po".ion. and e:zllabl@ Socia.
SKurit)' ;l'Ic"",o (d_tlt,mifw fro", imurllctlon.li, ....g. 20) . , . . .
38 'fou, 'Ctlllu!te's ","od in~mo, c"i'hlq llllnslcn, Ind Ilnelle
Sac..' S.cu'''y Il'Ico"" (detormino from Instructions, "IP 20) . . JI
39 FIb I" tt'le 1fT\Q\,tnl flem li"A J1 or IN 38. .klch"" I. I.... (If this lmollnt is IellllNln S 14.250.
19V GO "oe q"'.f'f)' lor tl'lls crldlt. Ski" IiI"lOll J9-4" and IHI ill .Iro 0 line' of JIlo,," M- ,)"
40 Using 1"0 tII~"" 1tI1l" 1~lIlrllCtiOI'lI on ~.!i' 201M tfIo _mollnt go Ii " 39,
flnoi your C,.di! 'mrJunt b.llld on tile jolnllalllbfo incorllll flQrl1 Hnt 6 llDen.
PIlIl-y..r ,,,""ontel ~Iso fin in th~~", on Iin. a 01 Form M-' . . . . . . . . . . . . . . . . . . , . . 40
41 hrt-yeil' '..11:1...... ."fI MMO./deMI: Fill in t.... p.'ejlnC~9' from II". 24 of
S:.".dulo M-IN" ".,0_ 010. M"fllpl" rl'lls p....ntl
by lint 40 .bove. Fill ill thn ~Iylt ho" lIn~ on /11'1" of Form M.' . . . . I .
SECTION C - Credit. against tax (TPIetotal of "nls 42-"~ b, w will:lo ent'mld
ert fi". 10 of Form M~l iJnd ~i11 bo IU~'aCI~1l from y..ur ~ll". Inil:lrllc:tiorTS ,. on ~igo 21.)
42 Ctof/Il for 1o"9-ter/T1 car. i"slIlolnco premiums I'ii1id (cnlck
the M-ll..TI ba, on r,nl '0 a"4 .It.8ch SchOlldll/e M-1LTll . . . . , . . , . , , . , . . . . .
43 CrMit ror Shll,.hoklo~ or II flNl"f:laI lrIslilllIWtt .1lI.1rtg to b. l..,d II an
S eorpo'.lion (chock It,. M ,1<$ DOlI 0" 11".10 1M Inlltl'! Schtldlllo -leS)
.c.. Empfw.r 'riM It ....5S c,.dlt Cc:nRk th. im~lo)'tlr TrIlM/t Pau be. 0" tin. 10 Ind .reach
Schedul. ETP [~CJt.-,,",~riol(lrd, Scnedulo M-KI>I [partnwrsJ or Sche ulll M.KS [Shlr./told"s]) .
.cs Cr.dit fe, l.'\xoo p.id 10 anl1th.r ,,~tO (c~.eJt tM
M.'CP. bo. 11M nne '0 I"d alf.tch SCl'relfule M-'~) _ , .
4' Ak.r".ti.... rni"'...,um r,.". <""<11t (eMe" "'I! M-1MlC bolt
Of'llllir 10 and 1I1111en Scn"dulo M-IMTC) . , , . . .
41 T011'1' crN'" as.l"", tall, Add nnll' 42 ll'lrcUQ/1 liS.
I"ill il'l tl'lo tntall'l.,,, .nd on Ii". 10 of Fo,... M_' _ , . , . . . . . . .
29
30
. 31
, 32
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34
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c,
MAY-04-01 FRI 10:09
CONWORTH, INC
FAX NO, 9529290568
P. 15
MAY-04-01 10:$4 AM
JOHNSON ~ARSOH PET~RSON
7636824465
,.. _ 1"
. MINNESOTA
Department of Revenue
Minnesota WorkIng Family C".dit 2000
$ct'tedLtre M..1WFC
"'''.'1'"",,", !.'!U<'''''~ ~I
Your last tl.IImt
s;..~;i;"~',"~
O'CONNOR
Numbl'r 0( "....lffylnll chl/,Cren):
ChijQ's "am.
o NOM
[!J 0,.
o T_ or mol"
474 -. G 6 - 3 8 9 ~___
BENJAMIN
Q'CONNOR
o It 01 bir1h
( 9231983
So;;.;.l ".euriry ""mb"r
I]. '/519295Q..
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You ",\1st he ,nglllil. fllr the 'eder.' 1E.",.lIlneOIl'lI C,_Jt (lie, II .1.lm the Minn..ota workIng family
'''lOl't. 8"tor8 yo" ffll out In;S se"4dull, YIlt,! Il'lUst folio", \h9 S~'pIIC dlttrmi". l YOI.l can Ilk~ '''I '"g"'lIl ll;Jrnld '"eom"
crvdil ""Cl complll. tnl IPpropriiltl Ere Worksl'lI". both of whl~h ar fourll' in the In't'~liQns tor filing your Ildtr:ll rllu""
II you fiI.d 'odoral Form 1Q-iO, fill In )/Q\lr Iataleartlld Income 'ro~ fin' 1 of YOljl'
E1C WQrlI'h... A ar lin. 6 of EIC Welks;,.., G. II yOll fIIN rQrm HIlIOA or
"arm lo40il. II/r In It,. amaun, from 1ir1. 1 of you, F.le Work,.,... . . . , . . . . . . . . . . . .. . _ . , . , 1
2 Uti"" the 8I!"'IOunl on Iii'll 1 ~l'\d the "U~.r 01 qualifying child"", nod th. cr.~illlrrnu",
11III'"9 ,"" WFC Tatll. 0/'1 pailS 1l11nc:t '7 at Ihl M-I inlllruerion ookl" .na fill i" _mount "Ell''='.
3 II yol.f liI.a '-d'm,1 "O"TI '040, fill in Yf)ur modifi.d .djlJst.,; grCln neo..... IrQIl'\ /1"" 3
of ''''J/' E1C Wor,h..l A or II~ (11)( elC Works;'.., s- It you 'il"" Form 'OA04 Ix
Form 1040E~. fill in 11111 31'!'lOUn1 '1'0;>'" liI'l. 3 of your EIC Workshe. . . . . . . . .
· " If yau do l'lG' haVI a quanfylng ehild. ~ th. amount on Iii'll 3' .770 or leu?
· If you have only on. ~ualifying child. I~ tl111 Irnolltlt 0I'I11rI1I 3 $15.080 ar leu?
- ",/01,1 hlVI !WO Ilf mol'O qultlifying Child...". 1$ tl1. amount on 1'11:1 S 17,8'0 or less?
~ y".., Co 10 Ii.... !Ii b.fo....,
o No. u,,;,., ~ ~lTIOwl'll on line J. find I". credit .maunt l.l"n~ mil WFC Tllo19
on pRgQ 16 ~nCl 17 of .". M.l'"SftIlClion bookli!, and IiII in here. . . . . _ _ _ . . . , . . . . . . . . . . 4
1I Wonclno filmily er.clit 1I11'lOunl
· 'f YOIlI:"Ic:lrltd "Yes" ." llno 4, fUI in 1'" lmoll,,1 from /lne 2.
I "row l:;n,":k.lf -N':!" on lin. 4, fill In Ih. _rnoU"'1 I....... Ii"" :z or r. .. <4, 'I"T"I~h.v.r is lI'"al/er . . . . . . . . . .
.._13.1 969
~ oil 011I "
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706
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14,316
-"-.-'.-
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P\lII.y..r r."lII_Itloa-' A1~/1 fill in Ihi, r"VII on lino 17 of YOUt FDrm 1,4-1.
'.n-)'e.r r8.ld.'UI ."d "erl"..ld."I.
. M\llliply 11n. S by I'" p<9N:.nlalil. Oil fine 24 of y"I!' $ehodur.
M-1NA. Also till j,,,"is ruull onlin.17ofyov,Formllll-1 . . .
. . , to a . .. .. ~ . ~ . . . . . '" <I . , . ,
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American Indian. "orkin, and IlYIng Oft .." 1""'alIl t_.tYllllo"
'7 II yo" ;1r. .a" Arne,JCIl" Indi31" ~ _rkld lInd rr.,od 0" .n lnc:livn ~ 1II'V"tiorl. "e th"nstrLlc-
tions 10 d-tl'mlne 11'1. lI/'rlOl,lnlla fill in h.re jino on Un. 17 of FOlm -1 . . . . . . . . . . . . . . . . . . . . . 7
Tau mUlt attar:h this se".d",Je to your Form M-1.
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HRA Agenda - 6/6/01
7.
Consideration of an u date of the ro
approve necessarv action to proceed.
A. Reference and back!!:round:
Since the joint meeting betwecn the Co un il and the HRA, Chair Frie and Koropchak
have met or had conversation with cach pr )perty owner on Block 52 except Kathy Froslie
but including Pat Sawatzke.
Additionally, Frie and Koropchak met twi e with proposed owner Pat O'Donnell and
builder Mike Cyr. On Monday, June 4, M rk Ruft~ Mayor Bclsaas, Frie, O'Donnell, Cyr,
and Steve Johnson will meet to determine itc option onc or two and gather information
for preparation of a proforma. With the r duction in classification rates, is thcre eHicient
tax increment remaining within the distric after commitments along front Street and the
Amoco site to proceed with Block 52?
An update ofthc June 4 meeting will be pesented and a request for any necessary action
will follow.
.
.
.
8.
Consideration of authorizin
HRA Agenda - 6/6/01
HRA bills.
Recommendation is to authorize payment.
.
.
Montice /0 HRA
505 Walnut AI enue, Suite 1
Monticello, MN 55362
May 10, 2001
Invoice # 18344
MC100M01 GENERAL
0~~
Hours Amount
1.50 187.50
Professional Services
4/4/01 MTR Meeting with Hans H.
Total Due This Month:
Status of Account:
Current
$187.50
30 Days
$0.00
.~Day.!;;
$0.00
1.50 $187.50
90 Days
$0.00
120+ Days
$0.00
Total
$187.50
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PLEASE KEEP WHITE COpy FOR YOUR FILE ANI REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES IIJC
3060 Centre Pain e Drive
Raseville, MN 551 3-1105
651.697.85( 0
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Keal Estate Taxes
.
Ollie Koropchak
From: Rocklitz, Cathy B. crocklitz@Kennedy-Graven.co
Sent: Wednesday May 30, 01 9: 16 AM
To: Olive Koropchak (E-mail)
Cc: Greensweig, Daniel J.
Subject: Real Estate Taxes
Ollie,
S-,,:?\-o\
Page 1 of 1
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The HRA acquired 225 Front Street on March 26, 2001 and as credited at closing for the Seller's pro-rated
share of the real estate taxes. The H RA was responsible fo making the May 15th 1 st 1/2 payment and that
payment did not get made. If payment is made by' trlmnrrow the amount due is ~1 2?9 10 which includes a
penalty of $24.10. If it is paid in June the amount due will be $1,253.20. The second 1/2 payment of $1,205.00
is due Oct 15th. PID No is 155-010-064010.
The HRA acquired 8 Locust Street on April 30, 2001 and wa credited at closing for the Seller's pro-rated share
of the real estate taxes. The HRA was responsible for maki g the May 15th 1 st 1/2 payment in the amount of
$381.00. Vernes Bostic's lender paid the first half taxes on ti e. The HRA needs to issue a check to Vernes A.
....Bostic in the amount of $381.00 By Oct 15th the HRA need to pay $381.00 to Wright County for the second
1/2 payment PID No. 155-010-054091.
.
Catherine Rocklitz
Kennedy & Graven, Chartered
470 Pillsbury Center
200 Second A venue South
Minneapolis, MN 55402
612-337-9250
612-337-9310 (fax)
crock I i tz@kennedy-graven.com
The HRA will not get tax statements from the County for this ear. If you would like me to pay the current year's
taxes at closing, please let me know and I will collect the tax s due from the HRA at closing and make the
payment(s).
. lt~~ ~"S. SI 0 \
.
5/30/200 [
~--
..
Relocation
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
") \ ?; . \...\ L..
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, MN 55326-8831
APRIL SERVICES - MONTICELLO PROJECT
.
Bostic
O'Connor
May 3, 2001
~3.~\~q
INVOICE
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
Write to Bostic regar
Talk twice with HRA egarding questions, closing, and title issues.
Talk a number of time with Bostic a number of times regarding
questions, Purchasegreement, title questions, closing, and
meeting.
Talk with HRA's atto ey regarding title issues.
Talk: with closer regar ing closing.
Deliver Purchase Agre ment.
Meet with Bostic to si n Purchase Agreement.
Talk with attorney reg ding agreement.
Pick up and make cop of abstract.
Deliver information to attorney's office.
Talk with closer regar ing questions.
Write to O'Connor re arding offer issues.
Talk with HRA and wi h O'Connor a number oftimes regarding
questions.
Talk three times with 'Connor's attorney regarding issues.
Meet with O'Connor r garding move and issues.
TOTAL HOURS EXP NDED
AT $70.00 PER HO
ACQUISITION AND ELOCATION
16.75
$1.172.50
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9.
HRA Agenda - 6/6/01
Consideration of Executive Director's R ort.
A. Reference and back2:round:
St. Henry's - In checking with John Komaek, it appears thcrc is nothing new to report on
the proposal to redevelop this site.
Scattered I lousing Grant - In talking with herri Harris, the next round of MHF ^
applications are due July 13,2001. It is th intent to re-submit the Monticello
application for the proposed affordable ho sing project along 6th and Minnesota. The
July HRA agenda will include a revicw of he TIF assistance for approval as the amount
of tax incrcment will likely bc reduced wit the reduction in classification rates. The City
Council did approve the purchase of the K uffmann property (raw land) at $45,000 or
$4.13 per square foot. This parcel within t e targeted project area.
Small Machine Shop - As reported in May, I'm working to find a small one acre lot for
construction of a 10,000 sq ft building. La e Tool not interested in selling extra lot,
Winkelman construction lot will build to s it, and checking with ptetler relative to PUD
or subdivision to include the potential relo ation of Springborg.
Twin City Die Castings Company - You re eived an invitation to join the Commissioner
of Trade and Economic Development on a our of the facility. The State invested a
$500,000 grant and sold industrial revenue onds for this project. A copy of a letter to
the IDC from the General Contractor of the project is attached. The letter was not copied
to the owners of the company.
Wage Levels - This was an article from the St. Cloud paper relative to wage levels.
Submitted by Dan Frie.
Industrial Land Purchase - As you probabl read in the paper, the Council elected to table
any action to purchase the Chadwick prope ty at this time. Certainly do agree, the offer
by Chadwick today does not make econom'cal sense. However, very disappointing that
no action was considered by the Council to purchase the property prior to the City's
investment in the ChcIsea Road improvements in the amount of $400,000. As you
recall, the Council adopted a resolution in J me 1999 to actively pursue acquisition of
Chadwick land. The resolution drafted by t 1e HRA, EDA, and IDC encouraged the
Council to purchase the land at a low price prior to inflation. The HRA and City each
committed $150,000 for a total of $300,00 toward industrial land development and the
I-IRA's plan was to commit the remaining t. x increment ($400,000 NPV) generated from
District No. 1-5 towards the industrial land evelopment. The combination of these
dollars would nearly have covered the gap f the initial swap offer. Both, the City
.
HRA Agenda - 6/6/0 I
Comprehensive Plan and the MOAA Plan lave thc Chadwick parcel identified as
industrial use.
Production Stamping - I did mcct with Lc Wurm and presented him with a uses and
sources statement. He wanted me to chec out the State and Initiative funding sources.
Looking at a 40,000 sq ft building on 4 aces. Havc talkcd with Pfeffer.
.
.
2
.
,0
, .
Planners. Designs s . Builders
March 6, 2001
Monticello Industrial Development Committee
Mr. Tom Ollig, Chairman
TDS Telecom
316 Pine Street
Monticello, MN 55362
Dear Mr. Ollig:
.
Olson General Contractors has developed numerou large commercial and industrial projects
throughout the metropolitan area. We are presently elebrating our 92nd year in the construction
industry and it is highly unusual for us to write letter commending the work of public officials.
However, it has come to our attention that rather se ious misunderstandings resulted from
unfounded and incorrect remarks made regarding t e services provided by city staff durin~flne'
development and construction of the Twin City Die astings ComPfi~r1Y'pltljectn-'
Contrary to these statements and the ill-adv.ised opi ions express~d:twe have found your city
staff to have been extremely helpful, most resource ul and committed to the..sucGess of both the
project and Twin City Die Castings Company. \" . . .
This project is unique, in that the building's design i to house a specialized process for the die
casting and machining of magnesium. Because m gnesium is categorized as a hazardous
material, Building and Fire Code issues required ex ensive research, expert knowledge and
prudent application. In this respect, we have been ost fortunate in our association with Mr.
Fred Patch, your local Building Official. His knowle ge, experience and common sense
approach helped us immensely in the resolution of umerous Code related issues. Mr. Patch is
indeed a credit to his office and an asset to your co munity.
My purpose in writing this letter is twofold. 1. To se the record straight regarding our
relationship with the city staff. 2. I would also like to encourage the IDC to recognize both the
excellent service and the extraordinary effort provi ed by city staff as key to the success of this
project.
cc: Mr. Roger Belsaas, Mayor
Mr. Rick Walfsteller, City Adm.
Monticello City Council
Mr. Fred Patch
.
OLSON GENERAL CO TRACTORS, INC.
5010 Hillsboro Avenue, Mi neapolis. MN 55428
Phone: 612/535-1481 · Fax: 612/535-1484
9
vho was stopped
ntly June 10,
police said they
icked his license
Matthews' case is gaining
attention outside St. Cloud,
with local and state black
leaders keeping a close eye
ing motor Wednesday while working at his
hers are busy this week,
ws
least 21 years
lithin reach of
. People 12 to
can operate
:! than 25 hp
'craft opera-
or with some-
; or older
I o.on~
! y r than
ca oper-
nore than 75
1 an adult on
younger than
perate per-
craft, even
It on board.
r than 13
someone ilt
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,
opener. We probably have
seven people who came in
.......'1".. 'T\..I"\f'1;1........,. ..............:1 nr"'T'ltt:a,1 ~t
ar
,/
,(
u . ., O' '. pment pr?je'~ts, said board
DijSmeSSes bettmg lembet>and City Council
ta,'{~IlliY at. _.,J".esident.1ohn Ellenbeck~r,
( , h -- Tax assistance granted ill
least $12,20 per hour he past for the Grandstay
otel downtown, Target de-
artment store or upcoming
astgate II office complex
ould not be subject to this
age test, because redevel~
pment of blighted areas is
he main goal there and not
employment, he said.
But city assistance for the
New Flyer USA and Finger-
hut compa-
nies would
have . been
subject to~his
neW reqmre-
ment, Ellen-
becker said.
"Ifthis 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.
Tax incentives are becom-
ing less effective a.<J econom-
ic development tools, but the
polit')' still should be applied
flexibly, said Jack Happe of
St. Cloud Opportunities, a
nonprofit economic devel-
opment organization.
City 0 . ':ils deny that St.
Cloud ice profile drivers
byra .
ey do admit that offi-
RA
new
stan
By Lawrence Schwnacher
Times staff writer
Businesses looking to
build in St. Cloud who want
tax breaks\ must pay new
employees at least $12.25
per hour on average, St.
Cloud development officials
decided Wednesday.
Callingit "about time," St.
Cloud Housing and Rede-
velopment Authority Board
members created a thresh,-
old minimum average wage
for new job creation as apol-
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
poli<.'Y on federal fair market
rent estimates for a fat11ily of
four renting a three bed-
room apartment in Steams
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
prqject, though not redevel-
ets
ag
Mike
Podawiltz
HRA board
member
.
I
I
!
~