HRA Agenda 02-07-2001
.
AGEN A
MONTICELLO HOUSING AND RDEVELOPMENT AUTHORITY
Wednesday, February 7, 2001 - 7:00 p.m.
505 Walnut Street -Bridge Room
MEMBERS: Chair Darrin Lahr, Vice Chair Dan. rie, Brad Barger, Steve Andrews, and Bob
Murray.
COUNCIL LIAISON: Brian Stumpf.
OFFICERS: Treasurer Rick Wolfsteller, Execu. ve Director Ollie Koropchak, and Recorder
Lori Kraemer.
GUESTS: Brad Johnson, Lotus Realty Servi es
1.
2.
3.
4.
. 5.
6.
Call to Order.
Consideration to approve the HRA minues of January 3, 2001.
Consideration of adding or removing ag da items from the consent agenda.
Consent Agenda.
Consideration to address items added or removed from the consent agenda.
Consideration to hear an update relative to project concept for redevelopment of the
Amoco site and authorization to extend:the effective date ofthe Preliminary Development
Agreement.
7. Consideration of update and action reI ive to TIF District 1-22 North Anchor.
i
8. Continued _ Consideration to hear pro reSS relative to research ofpurposelobjective and
funding for a scattered housing progr and a motion to approve preliminary concept for
use of TIP assistance.
9.
10.
11.
12.
. 13.
14.
I
Consideration of a request from Sprin. sted, Inc. to make a presentation to the HRA.
Consideration to review for input the 001 Economic Development Work Plan.
Consideration to authorize payment 0 the monthly HRA bills.
Consideration of Executive Director'. Report.
Committee Reports: Marketing - Br BargerlDarrin Lahr and MCP - Steve Andrews.
Other Business.
.
.
.
MINUI ES
MONTICELLO HOUSING AND R "DEVELOPMENT AUTHORITY
Wednesday, January 3, 2001 - 7:00 p.m.
505 Walnut Stree - Bridge Room
Members Present:
Chair Darrin Lahr. Vice C air Dan Frie. Brad Barger, Steve Andrews,
Bob Murray and Council Laison Brian Stumpf.
Officers:
Treasurer Rick Wolfsteller Executive Director Ollie Koropchak, and
Recorder Lori Kraemer.
GUESTS:
Brad Johnson. Lotus Realt Services
Barry Fluth. BBF Properti s
Mark Ruff. Ehlers & Asso iates, Inc.
1. Call to Order.
Darrin Lahr called the meeting to order at 7 PM.
2. Consideration to a rove the HRA minut s of December 6.2000.
A MOTION WAS MADE BY BRAD B RGER AND SECONDED BY BOB
MURRA. Y TO APPROVE THE MINUT ,S OF THE DECEMBER 6.2000 BRA
MEETING. Motion carried unanimously.
....
.).
Consent Agenda.
A. Consideration to a rove the Cer ificatc of Com letion and to ado t resolution
decertifvino TIF District No. I-I River Mills.
A MOTION WAS MADE BY STEVE NDREWS AND SECONDED BY BRAD
BARGER TO APPROVE THE CONSE. T AGENDA. Motion carried 3 to 1 with Bob
Murray abstaining.
Brian Stumpf Council Liaison. had to I ave at the beginning of the meeting on an
emergency response call.
4.
Consideration of addino or rcmovin!.!. cot sent ,-H!enda items. None
5.
Consideration of items added or remove from the consent aQ.enda for discussion. None
6.
Consideration to hear u dated :J.nd additional information relative to
redevelopment of the Amoco site.
Ollie Koropchak mhised that Brad John"on had contacted her on 12/27/00 and requested
to be on the January HR.\ agenda to rep)l"t an update on the progress for redevelopment.
Koropch:J.k also reminded the members hat the preliminary agreement termination date is
2/7 /01.
.
.
.
HRA Minutes - 01/03/01
Brad Johnson provided some additional i formation for the members to revievv which
included two scenarios, one being a retail! lixed use proposal at an 11 % return on cost
which Mr. Johnson stated seems to work est. He provided a layout showing extensive
parking and a site that a restaurant was int rested in. He also showed a plan which
increased housing to 21 units with increas d parking, noting he stayed away from 3
stories of housing and went with longer u its/t1ats which are less expensive to bui ld. On
the Amoco site an 8.000 sq. ft. office buil ing with a brick face and possible flat roof was
proposed. Johnson states acquisition is cl se and he has sent out a letter to the property
owners advising them of their proposal a d has met with all but one owner and his
proposed time frame is sometime yet this ear.
Johnson also talked about the housing proposal stating possibly a flat on the first floor (1
story rental). a townhouse project with 2 ,tories. all market rate rentals. If a restaurant is
built it would be 3.500 sq ft. Johnson staed that the question now is who should
purchase the properties. the developer or he HRA. Mark Ruff Ehlers and Associates,
asked if Mr. Johnson was asking the H to purchase and he stated it would depend on
cash flow. Johnson also stated that the Al lOCO site could get started as early as May.
Another decision that needs to be discuss d is the housing acquisition. Darrin Lahr asked
Johnson is this project could be done in tl ree phases versus two and he stated it could but
it is not preferred. The next step is for tlr developers to meet with staff.
7.
Consideration of u date and action relati e to TIf District 1 ~ 12 North Anchor.
7a). Consideration to review TIF cash ow roO ections bv Mark Ruff. Ehlers &
Associates.
Koropchak reported that this is an inform. tional item and follo\v-up from the November
HRA meeting. She noted that Rick Wolf teller, City Administrator, and she had met
with Mark Ruff on 12/19/00. Mark Ruff. Ehlers & Associates. a<.hised the HRA
regarding proposed changes in the legisla life regarding school distTicts which if approved
would mean that the district would no 101 ger be funded by property taxes. This in turn
cuts tax increment revenue in hal f but the chances of this happening are remote. although
it shows the risks and he emphasized pay as-you-go. Ruff prO\ided information
regarding Block 54 and all costs relating 0 reclt;velopment. advising three possible
options. as well as his recommendation.
Ruff suggested the II RA get City Counci approval and decide \vhether to approach them
now or later on GO tax increment. The l' elings \vere that they \\ould go to the City for a
loan. but not to go to the Council at this t me.
7b) Consideration to authorize enterit !! into a Lease Aureement hct\\cen the Carlsons
and HRi\.
Koropchak advised the IIRi\ that the Carlson"s aecepted the IIRA's counter-otTer of
$275,000 as a package deal and signed tl e requested purchase agreement. A Lease
___ I
HRA Minutes - 01/03/01
.
Agreement was drafted by Kennedy & Gaven for rental lease at $1 annually, tenant
responsible for utilities and property taxe , and possession date August 1,2002. The
leased property will not be a tax exempt arcel.
A MOTION WAS MADE BY STEVE A DREWS AND SECONDED BY DAN FRIE
TO ENTER INTO A LEASE AGREEM NT BETWEEN THE CARLSON'S AND HRA
FOR THE PROPERTY LOCATED AT 725 FRONT STREET WITH TERMS AND
CONDITIONS AS DRAFTED.
There was further discussion regarding th agreement stating property taxes to be paid by
the Carlson's and it was determined that t is was in the lease agreement. Motion carried
unanimously.
7c) Consideration to review counter-offer from Mike O'Connor for a re Iv and to
extend the null and void date oft e urchase anreement.
Koropchak advised that O'Connor respo ded to the HRA's offer. making a counter offer
of $175,000 as a package deal to the HR 's offer of $92.200. The HRA is asked to
either consider this offer and to extend th null and void date with the Purchase
Agreement or direct Koropchak to move 'orward with condemnation.
.
After discussion. the members decided 0 a counter-offer package deal to offer O'Connor
and directed Koropchak to advise Mr. He vey to proceed upon execution of the Carlson
purchase agreement. Mr. Helvey to advi e the seller "this is one of the highest percentage
offer ever offered by the HRA".
A MOTION WAS tvlADE BY BRAD B RGER AND SECONDED BY DAN FRIE TO
MAKE A COUNTER-OFFER IN THE MOUNT OF $130,352 AS A PACKAGE
DEAL TO MIKE O'CONNOR. POSSE. SION DATE NO LATER THAN 4/15/2001,
AND EXTEND THE NULL AND VOl . DATE TO TWO WEEKS FROM DATE OF
COUNTER-OFFER PRESENTED: AN ADOPTED A RESOLUTION DIRECTION
STAFF TO PREPARE MATERIALS T AUTHORIZE ACQUISITION OF
PROPERTY BY Et\IINENT DOIVIAIN. Motion carried unanimously.
7d) Consideration to review counter- ffer from Sandy Bostic for are Jly and to extend
the null and H)id date of the ure! ase aereement.
.
Koropchak advised that Bostic responde<.: to the 1.IRA's offer 01'$78.000 \"ith a counter-
offer of $148,000 as a package deal. 1\ls) noted was the penalty payment that \vould
need to be added to the counter-t)l'fer as ostic would be penalized on her home
improvcment loan if she sold nO\\. The I, IRA is asked to either consider this olTer and to
extend the null and void date \\ith the Pu'chase Agreerl1ent or direct Koropchak to move
fonvard with comkmnation. Kl1ropchak also advised the I IRA that once a purchase price
is agreed upon. the IIR;\ needs tt) authorize an environmental test on the property for the
underground fuel tank.
,_
HRA Minutes - 01/03/01
.
After discussion. the members decided on counter-offer package deal to offer Bostic
and directed Koropchak to advise Mr. Hel 'ey to proceed upon execution of the Bostic
purchase agreement. Mr. Helvey to advis the seller "this is one of the highest percentage
offer ever offered by the HRA'.
A MOTION WAS MADE BY BOB MU RAY AND SECONDED BY STEVE
ANDREWS TO MAKE A COUNTER~O 'FER IN THE AMOUNT OF $109,400. PLUS
THE PREPAID PENALTY. NOT TO EX 'EED $5.000. AS A PACKAGE DEAL TO
BOSTIC. POSSESSION DATE NO LA T~R THAN 4/15/01 AND TO EXTEND THE
NULL AND VOID DATE TO TWO WE KS FROM DATE COUNTER-OFFER
PRESENTED. Motion carried unanimot sly.
7e) Consideration to authorize an a aisal of the raw land onlv for the Carlson
propertv.
.
Koropchak stated that in conversation wit Attorney Bubul relative to the acquisition of
the Carlson property with tax increment onies for future use as green space or park
land, this is the plan. The HRA will finan.'e the purchase of the land and building with tax
increment: the property lies within the di tricL is blighted and was identified within the
plan for redevelopment. The HRA will d molish or remove the house in late August
2002 after 'vvhieh the HRA will sell the ra-land to the City because greater than 50lYo of
the parcel lies within the 100-year nood lain and the City restricts issuance of building
permits within the nood plain. The City reviously had budgeted $35,000 for North
Anchor acquisition. The lIRA ITlUst sell he parcel for fair market value. therefore. it was
suggested to authorize an appraisal ofth land only.
The 1995 appraisal had the land at $65,0 0 and the building at $98,000.
The 1997 appraisal had the land at $75,0 0 and the building at $90,000.
F or taxes payable 2000, the estimated m rket value of the land is $54.000 and the
building $95.100. It is the opinion of A tomey Bubul that an appraisal of the raw land
without the house will be less than the a praisals with the house because of the
restrictions. The difference between the appraised raw land and the $35.000 would be
financed by non-restrictive or HRA Gen ral Funds.
Koropchak achised that a supplement to the 1997 appraisal or an update ti.w raw land only
is about $200. The Carlson' s were unha py with Mr. Nagorski and perhaps the \-IRA
may wish to ha\c another appraiser com lete the appraisal.
.
A ~IOTION WAS l\IADE BY DARRI I.AHR AND SECONDED BY STEVE
ANDRE\VS TO A1JTI-IORIZE APPRA Sl::R ROD DRAGSTEN TO COMPLETE A
SUPPLHvILNT OR AN UPDATE FO RAW LAND ONL Y FOR TilE PROPERTY
LOCATLD'\. T 225 FRONT STREET. ,'UBJECT TO EXECUTION OF THE
PURCHASE A:\D LEASE :\GREEM NT WITII THE CARLSON'S. Motion carried
unanimoLlsh.
-l-
liRA Minutes - 0\/03/01
.
70
Informationalu date relative to ublic im rovements associated alon!.! Front
Street and redevelo ment alon!! a otected scenic area.
Koropchak advised that the three parcels al1l1g the south side of Front Street will require
a sub-division or re-platting into 10 lots of 3 ft width if the Hans Hagen concept is
accepted. Each parcel will require installa ion of a water/sanitary sewer stub therefore
this will add development costs to the proj ct. Because of the high water table along
Front Street. this installation will require d ~watering which further increases the cost of
the installation. The Publ ic Works Direct rs has noted in the future (1-5 years), this the
oldest water and sewer line within the city. will need replacing. It appears the policy for
replacement of infrastructure will not be tl rough assessment. Koropchak asked the
members if perhaps it would make more s nse to replace the line at the same time as
installing the new stubs.
In talking with the Parks Director. it is up 0 the city to manage a wild and scenic area
such as the Mississippi River. Only if the shore line is modified (elevation changed) is a
permit required. Some problems did OCCll when the city attempted to clear the brush
along the river across from the Battle Rap ds development. It is my assumption that the
dead or downed trees from the 1997 stan would be removed. otherwise the Carlson
property \vould basically be seeded or so ded. Maintenance and repair of the Carlson
property is a future budget item for the P rks Department.
.
Darrin Lahr felt the sooner the City looke into this the more beneticial. No action was
required.
7g) Consideration to authorize enteril !.! into a Preliminarv Deve\o ment Agreement
\vith I-Ians llal!en Homes.
The HRA is asked to consider authorizin 1 entering into a Preliminary Development
Agreement \vith I-Ians Hagen l-Iomes. II' ns has been updated periodically on the I-IRA's
progress to acquire the parcels and contil ued to be very interested in redevelopment of
the area. The Parks. CounciL and Planni 19 Commission members have all seen the
concept plans submitted by Hans Hagen md all were excited and liked the concept. two
people suggested perhaps the HRA shoud offer the proposed redevelopment site to other
developers. This is an liRA decision. tl e Minnesota Statute does not require the I-IRA to
go out f()r request for proposals. l--Iowe 'er. the I-IRA by Lmv must hold a public hearing
upon the sale 0 I' property,
.
Although the I-lRi\ docs not have the pr perties tied-up and at \\hat price. to authorize
cntcrin!.!. into th(" :-\!.!.r("ement with Hans II~H2.cn Ilumes \\ould allow our tinancial
- ~ ~
consultant and IIR;\ staIr to begin \\ork ng out details, The Preliminary Developmcnt
Agr("emcnt is our stal1lbrd agrecment \nieh includes the $5.000 deposit. If we get
executed Purchase ,\gr('~'l11ents prior to he Fd1l'uary nKeting. \\c eould begin \\orking
\\lith llans. Koropchak asked th(" mel11 ers irthey felt the timing \\as right and if they
prc1'ern:d tp submit an l)l'fer to Ilans Ha 'en or see other de\ell)pers 'concepts.
:->
HRA M inutes ~ 01/03/0 I
.
The HRA members directed Koropchak to hold off any action until the regular HRA
meeting in February but to move forward nd start conversations with Hans Hagen.
8.
Dan Frie briefly updated the HRA stating that Shari had received the application for the
grant and provided Dan a description of t e program, as well as general infcmnation that
is important to the City. Frie stated that t e City could apply fi)r up to $500,000. There
will be a seminar/w'orkshop in Little Falls on January 10,2001 and Shari advised that she
would like a City staff person and HRA n ember to attend this workshop regarding the
grant application. Also provided in the information from Shari were examples of grant
applications. Frie will supply Koropchak with copies for the HRA members to review
and stated that after the seminar this item would need to go to the City Council.
9. Consideration to authorize avment of th monthlv HRA bills.
.
10.
.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BOB
MURRA Y TO AUTHORIZE PA YMEN or THE MONTHL Y HRA BILLS. Motion
carried unanimously.
Consideration of Executive Director's R ort.
.
Koropchak provided her report u dating the I.IRA on a letter sent to Ed
Kautlmann per the direction of the HRA Chair at the December BRA meeting -
no response at this time;
Bondhus Letter mailed relative tt tax increment deficiencies and notice of
payment due:
Semi-annual tax increment paym'nts - in the process of issuing voucher for the
finance department to issue chec s for the February 1.200 I tax increment
payments due for TIF Districts ti.1anced by the pay-as-you-go method:
Tv,in City Die Castings - In addi ion to contacting Doug Harmon. a resolution
was drafted extending the constr ICtion completion date to April 1. 2001 per the
motion passed by the lIRA in Dcember. The resolution also stated that the HRA
and Devt'loper rt'cognized that aJ 1ending tht' construction completion date to
April I. 200 I. may alter the TIF '_'ash Flow. Because the City was a party to that
Contract. the Council adopted th resolution on December 11.2000. The
resolution \\<1S forw::.mkd to TC C for execution. it has not bt'en returned at this
timt':
Red Wing Foods. Inc. - They COI tinue \vorking with Tom Feaski on building
design and ha\e approached one loud lendcr about tinancing. Lender reviewing
prnject and linanciab:
300.000 sq ft headquarter/manufacturing building - Via voict' mail from Chicago.
the search consultant stated the ompany has elected to remain in the S1. Clouel
area:
.
.
.
6
.
.
.
HRA Minutes - OI/03/0j
.
Slo\v on industrial lead this month
and Koropchak provided a copy of the letter to the Dept of Revenue for review.
.
11. Committee Reports:
Marketing Brad provided the update stat ng thoughts on a billboard or message board
with businesses supporting it in turn for a vertising. Also more marketing brochures will
be mailed out monthly - 100 versus 25. Brochures have been updated and they will look
again in another ycar to see if more updat s should be made.
Communitv Center Annual Report - Bob rovided an update stating February and March
were the strongest months; purchased 2 n \v machines for fitness area; tabled an item on
the bike park stating there havc been a nu 1ber of requests to put one in. There arc a
number of promotions coming up such as promoting a coffee bar targeting K-mart and
Cub to have them meet at the MCC it wa asked if this would be in competition with the
other shops in town and Bob stated the M .C would not be serving food but rather trying
to get more people in. Kitty Baltos, Com 1Unity Center Director had provided hand outs
regarding the expenses and revenues for t e HRA' s review.
MCP - Steve Andre\vs gave a brief updat noting there are still funds available but no
people for volunteering, and their feeling that by cutting down on expenses such as
ofJice space lease and paid staff they could save some money. He did note that the MCP
is still up and running and they are meetit g monthly at the MCC The annual meeting is
next month.
12.
Other Business. None
13.
Adjournment.
A MOTION WAS MADE BY BOB MU RAY AND SECONDED BY STEVE
ANDREWS TO ADJOURN THE MEE lNG AT 9:20 PM. Motion earried
unanimously.
~....-,~--------.,.........---~'.-
!-IRA Chair
Recorder
7
.
.
.
15.
Adjournment.
.
.
.
BRA Agenda ~ 2/07/01
6.
Consideration to hear u date and to con ider extendin the effective date of the
Prelimina Develo ment A reement be een Masters Fifth Avenue Inc. and the
BRA.
A. Reference and Backe;round:
At the HRA meeting of August 2, 2000, th BRA and Barry Fluth entered into a 120-day
exclusive right agreement which was effecti e through December 2, 2000. At that
meeting another developer presented a reh plan for an owner/occupied project on the
Amoco site. The lIRA elected to enter int the preliminary agreement with Fluth based
on the concept presented which included a arger area for redevelopment and was
desirable to Council. The concept: Phase 1- 5,700 sq ft first floor office with 7 to 8 rental
units on second floor proposed for Amoco ite. Phase II - 4 to 8 townhouse units with
four accessory units on the two adjoining s utherly lots.
On December 6, 1999, the lIRA extended he effective date of the Preliminary
Development Agreement to February 6, 20 1. Brad Johnson will update the HRA on
their process. Based on the update, the A will need to consider whether to extend the
effective date or to seek other interested d velopers.
Questions for Brad: Does he have purcha e options on any of the properties? Has he
talked to affected property owners? What role can the HRA play to expedite the process
or to fill the gap?
I was contacted by another local develope who has been requested to prepare proposals
for redevelopment of a couple oflots alon Walnut Street and abutting Brad's concepts.
Although interested in the idea of a comm nity parking lot, he prefers this project to be a
stand alone. This developer is also interes ed in TIP assistance. More later.
At this point, the lIRA financial consultan s have not been asked to run TIP cashflow
numbers. Pending on the TIF cashflow n mbers, the level of TIP assistance will be
determined and the financial method dete ined (pay-as-you-go or up front). Keep in
mind the four and five year rules. A targ date for demolition of the Amoco site, no later
than June 30,2001. The effective date 0 the preliminary agreement means concepts,
plans, and level ofT1F assistance are in pI ce for execution of the Contract for Private
Redevelopment.
1
BRA Agenda - 2/07/01
.
B.
Alternative Action:
1. A motion to extend the effective dat to within the
Preliminary Development Agreeme between Masters Fifth Avenue, Inc. and the
HRA.
2. A motion to deny extending the effi tive date and seek other interested
developers.
3. A motion to table any action.
c. Recommendation:
The recommendation is Alternative No. 1. Perhaps, setting some timelines for Phase I
might be good a idea. Barry and Brad hav proved the know how and ability to complete
a redevelopment project.
D. SupportinS! Data:
Most recent concept from Brad.
.
.
jU~~ 14 '00
09: 02AM CITY OF
MONTICELLO
~(<>-.l- IlL O..,J\<.tt~
C-" '" ,J 10<.; ^ {vt<.~
oIL C-001t!; n"f.-o
?'" f C)" i)>~ ((
-{t>
6 t -t.........t..se ,,"0\ S
J J 1\ ~o ~ ,,~"\) Yo / c. f ~
e. t fcrd <;, :r ft>. 7 r..L J f 0
t'\ (; / I ~ t H-L l.,.0O'-^- td 1/1'../
f\lt,..t ,pL t fL. A ~<.w ...".. /(.5
f>. jO 0 d oJ\net j, ",..l
to
P.2/3
.......
.
",,-... ,U o...;V\ln of "S .r. i <; L. r I "'.IV- f L \Jc..-v.\!.C~ '\
. B U' ~ \cl; ... ~ wa! k.s W 'l t- ~ 'UoAI\c..( .
o--f T'^.t /.... (}.. vJ f; I (v\ (.,. "^ to- ... t '0
I O(,...lI.J(~ 11\ 0+
o V'l 'tvt ,"wo 0 ~ & l,
l^oM t. S D" v2> (). \ ^ v..~ A
....
.
-
. . .~). .~. \..'
loD
.
.
.
BRA Agenda 2/07/01
7.
Consideration of u date and action relafve to TIF District No. 1-22 - North Anchor.
7a). Consideration ofu date relative to exec tion of the Purchase and Lease A reement
between the BRA and the Carlsons.
A. Reference and Backe:round:
At the January HRA meeting, the commissi ners reviewed the prepared Purchase
Agreement outlining the HRA's counter-o er of $275,000 and acceptance letter from the
Carlson's attorney. In January, the HRA so approved the Lease Agreement. The
agreements were forwarded to the Carlson s by their Attorney and a meeting was
scheduled for January 23,2001.
It is my understanding that Mr. Carlson cal ed Ken Helvey prior to the scheduled meeting
of the 23rd of January stating he wasn't goi g to sign the agreement because he was upset
about the relocation benefits. Remember, r. Helvey initially contacted the Carlsons
relative to their relocation rights and bene s and asked to meet; however, the Carlson's
elected not to meet. Mr. Helvey called the Carlson's attorney on January 26 for an
update. As of January 30, he has not he from the attorney.
February 1,2001, voice-mail from Ken He vey. He spoke with Carlson's Attorney,
Carlson's misunderstood some informatio about relocation. All cleared up, and we
should be receiving the executed Purchase and Lease Agreement.
Appraisal Based on the HRA's motion to old off with the appraisal of the raw land of
the Carlson property by Rod Dragsted unt I execution of the Purchase Agreement by the
Carlsons, the appraisal has not been order d.
.
.
.
BRA Agenda - 2/07/01
7b) Update on Bostic and O'Connor.
O'Connor _ Mr. Helvey was informed ofth HRA's January 2001 motion: A counter-
offer in the amount of $130,352 package de 1 to Mike O'Connor, possession date not
later than April 15, 2001 and to extend the ull and void date to two weeks from date
counter-offer presented. Counter-offer pre: ented after execution of Purchase Agreement
by the Carl sons. HRA noted acquisition 0 er based on one of the highest offer by
percentage. The HRA also adopted the att ched resolution.
Mr. O'Connor has called Mr. Helvey to as what's going on? Mr. Helvey has not
proceeded per the HRA' s direction.
Bostic _ Mr. Helvey was informed of the 's January 2001 motion: A counter-offer in
the amount of $1 09,400 package deal plus enalty to the Bostic, possession date not later
than April 15, 2001, and to extend the null nd void date to two weeks from date counter-
offer presented. Counter-offer presented er execution of Purchase Agreement by the
Carlsons. The HRA also adopted the attaa ed resolution. Wolfsteller has estimated the
pre-payment penalty at about $2,834.
1
.
1
.
t
.~
HOUSING AN)) RlDEVELO MENT AUTHORITY
IN AND FOR THE CiTY F MONTICELLO
RESOLUTIONN . 01-02
RESOLUTION DIRECTING STA
TO AUTI!ORlZE ACQUISITION OF P
TO pBEPARE MATElUALS
PERTY BY EMlNENT DOMAIN
WHEREAS, the Housing and Redevdopme, t AUIhonty in and for the CiIY of Monticello
("'Authori",") is a pub4c bp<!y corpor"'" and public.. rganiZcd an<! operating pursuanlLO MiunesOla
StatuIeS, Sections 469JJ01ro 469.047 (me .-Act"); .
. WHEREAS. the {\uthori'" bas identified e need to acqwre ree sImple rille to cenain
real property loecHed. ,I.
wiLhin the City of MCmllCeUo (the "Propeny") in luf(hetance of the Authori l y' S ob]ecli yes under
IheAct;and
WHEREAS, the AUthoritY hi:LS been una Ie II.) obtain a negmiated agreement with the
owner of the Property.
NOW, THEREFORE. BE IT RESOL V 0 by me Board of Commissioners of the
Housing and ReJeveloprnent AUthority in and tor the City of Monucello:
I. The Board of Commissioners In s the following llndings of fact:
a. The Aumont)' is authoriz.o w undertake development and redevelopment
a.l,;~ivitics pllISUi:lD.l. LO the A t.
b. The Authority has ldentifle the acquisition of the Propeny as necessary and
desirable and in accorcWnc with the AUthoritY'S goals and obje~tives l:l.S set
torth in me ACt and in its p jeet plans prepared in accordancc;: therewith..
c. The Authority ha..'\ been able to reach a negotiated agrcem~m for the
purchaSe of the Propeny.
d. The AUIhonty is allmori ed by the A.l:l to acquire propeny through \.he
ex.ercise oi ~ power of e inem domain,
e-
I\. is net.:t:ssary, conl/cnie t. anI! reasonable anI! in the best mterest of the
Authority and in fU11her cc of the health. safety, and welfare of me duZ,eDS
of the CitY of Monuce 0, Minnesota. for the AU1.homy to consider the
a.cquisuion of the Propert by eminent Jomain.
I
1
OJO-I!h5S9vl
MN HlO-!:iO
.
.
.
2. Authority staff and consultants ii e authorized and direCIed [0 prepare; all
documents and materials and to take all other appr priale actions necessary and desirable for the
initiiition of cmment domain proceedings against th Propeny and 10 present such documents and
materiiils to 'the Authori1Y'.So Board of Commissiune for lIS consideration.
Approved by the Board of Commissioners 0 the Housing and Redevelopment AU
and for the City of Monticello this "3rcQay oi ,2001.
Chiiir
ATTEST:
G~ \<rJtu~ Q~
f'ecutive Director
)
f
1)}1.1. H11559" J
MN1!1Q.vQ
2
.
.
I
-1
HOUSING AND REDEVEL PMENT AUTHORITY
IN AND FOR THE Cl OF MONTICELLO
1
RESOLUTION DIRECTING STA TO lUPABE MATERIALS
TO AurnoJUZE ACQUISITION OF ROPERTY BY EMINENT DOMAIN
WHEREAS, me Housing and Redevelop em Authority in and for the Ciry of Monticello
(" AUthoritY") is a public bpdy corporAle and pub' ,organiZed and operating pursuant ~o Minnesota
StatUtes. Sections 469.00110 469.047 (the hAct"); i1Ild
WHEREAS. the ~umori.1Y has idcntifie, the need to acquire fee Simple title to I.:enain
real prOpeny locate,,). q,t
within the City of Monticello (the "Propcny") " furtherance at the Authorily'S objectives under
the Act; and
WHEREAS, the AUthority hi:t.S been unable to obtain a negotiated iigreemcnt with the
owner of the Property.
NOW. TIiEREFORE, BE IT RESO ED by the Board of Commissioners of the
Housing and Redevelopment AuthoritY in and f r the City of MonLlcello:
1, The Board of Commissioners m cs the following tindings of fact:
a. The Aumenty is authori ed 1.0 undertake development and redevelopment
al:~ivitics pUISuant La the ct.
b, The Authority has ldentiJ: ed the acquisition of the Propeny as necessMY and
desirclb1e and in aceor . ,ee with the Aijthoriry's goals aIld objel.:uves ij,S set
fonh in the Act and in itS project plans prepared in accordance;: therewith..
\
c, The Authority ha.i\ bee unable to reach a negollatel1 agrcernt:nt for the
purchaSe of the propeny.
d. The AUThoriry is allmo ':ted by the Al.:l to acquire properry through \he
exercise uf the power ofeminem domain.
e.
J1. is nel.:C:SSary, cOnVC 'ent. and reasonable ane.! in The besllOterest of 1h~
Alltholity and in furthe c of the health, safety. and welfare of the duzens
of the CitY of Montie 0, Minnesota. for the Aumont}' t.O consider the
acquiSitiOn of the Prope y by eminent domain.
t>JG-l!llSSgv1
MN1W-90
1
. 2. Alllhorlty SIllff and consu\WllS . e aulhori1.ed and duected to prepare all
documents and marerWs and 10 takt: all oiller appr priate actions necessilIY and desirable for me
initiluion of ellllDent domain proceedings against Propeny and to present such docUlllenlS and
materi~s lO the Authori1Y's Board of Commission IS for us considerAtion.
Approved by the Board of commisSioners f the Housill& and Redevelopment Allmonr
and for me City of MonticellO this...:JJ:d- 4ay at 2001.
J
ATTEST:
,~~. ~/\~6\I~ Q ilL
rxecuuve Director \..
\
.
~
.
2
OW.l!J 1 559\' 1
MNI,)().!)Q
.
.
.
7c). Hans Haeen Update.
7d).
Attached e-mail to and from Hans Hagen.
Attached estimates for improvements alon
HRA Agenda - 2/07/01
A. Reference and backe:round:
As we appear to have some interested deve opers for Block 52 and perhaps the same
developer may not develop the entire desig ated area, it is very important that a concept
be developed that maximizes the goals of t e HRA and the Revitalization Plan while
meeting the demands of the market. The c ncept would include housing, office,
commercial, and/or restaurant options. Th preliminary design concept drawings would
consider necessary parking, landscaping, st eet development, and its relationship to the
other areas of the downtown/riverfront.
Although one developer approached me for lot sizes to do some preliminary drawings, I
think it's in the HRA's best interest to have our City Planner Consultant prepare the
drawings. This to avoid misleading any on developer and keeps the window open for the
HRA as to their choice of developers and c ncepts. The cost of the concepts would come
from TIP District No. 1-22. This will help t keep us on track for the June 30, 2002 date.
B. Alternative Action:
1 . A motion to authorize City Planner teve Grittman to prepare design concept
drawings for Block 52, Lots 7 throu h 15 with flexibility.
2. A motion to authorize to prepare design concept drawings for Block
52, Lots 7 through 15 with flexibilit
3. A motion to deny authorization to p epare design concept drawings for a portion
of Block 52.
4. A motion to table any action.
C. Recommendation.
Recommendation is Alternative NO.1.
1
.
BRA Agenda - 2/07/01
D.
Supportine Data.
E-mail and cost estimates.
.
.
2
Ollie Koropchak
From:
Sent:
To:
.Ubject:
Ollie, Thanks for the update. I will call you on Feb 26th.
Hans
-----Original Message-----
From: Ollie Koropchak [mailto:okoropch@uslink.net]
Sent: Tuesday, January 23,2001 938 AM
To: 'hans@hanshagenhomes.com'
Subject: Monticello Redevelopment Front Street Update
Hans Hagen [hans@hanshagenho escom]
Tuesday, January 23, 2001 10:05 M
'okoropch@uslink.net'
RE: Monticello Redevelopment Front Street Update
Hans - Got your voice mail relative to your 30-day get-away fro the
office
An update on the proposed redevelopment project we talked a out a few
months earlier. It's taking longer to acquire the parcels than th HRA
or
myself first thought. We still anticipate acquisition and demoliU n of
the parcels for construction by June 30, 2001. As soon as we have
executed
Purchase Agreements on the three parcels, City Staff and our inancial
consultant, Ehlers & Association, would like to meet with you t begin
defining the project. With your return date of February 16 and myself
out
of the office February 19 through 23 hopefully we can meet th last week
in
February or first week in March. The City of Monticello looks rward
to
.orking with Hans Hagen Homes on this redevelopment proje t.
.11 assume and say "enjoy the sun" Respectfully, Ollie Koro chak,
City
of Monticello - 763-271-3208 phone.
.
" JAN-16-2001 11: 33
, A
"WSB
WSB & ASSOCIATES INC
&.wQCiIJUI,1nc. January 16,2001
.
Ms. Ollie Koropchak
City of Monticello
505 Walnut St, Suite 1
Monticello, MN 55362.8831
Re: Front Street Reconstruction Cost Estimate
WSB Project No. 1160-46
. Dear Ms. Koropchak:
763541170~ ~.~~/~~
As requested, we have analyzed the costs associ ted with the reconstruction of Front Street
between Walnut Street and Locust Street. The p oposed improvements include the removal
and replacement to the existing sanitary sewer. w termain. storm sewer and street, along with
the extension of sanitarY sewer and water servic s to the proposed eleven lots. We have not
completed the proposed changes to the City's ass ssment policy, so we have not proposed any
assessments at this time. It is likely that this small project may be slightly more expensive than
if it were larger in scope.
. .a I.' '''I'
n', ~,I'_ I . .
. ~I.',',' .
The estimated cost associated with these improv ents is summarized below:
~:,
A. Surface Improvements
B. Sanitary Sewer Improvemen
C. Water Improvements
D. Storm Sewer Improvements
.~.
.,:.
:: .~,
::,:,:,1
$42,500
$37,000
$21,000
54,000
$104,500
S 1 0,450
$114,950
$32,186
$147,136
Subtotal
0% Contingency
Subtotal
28% Indirect
Total
Should you have any questions, please do not esitate to contact me at (763) 287-7191.
Sincerely,
d" II'
:l,C~,::,,:_,'~,:I,. ~.'~~"t, ! ;"t .
~",,:,?]l .' ,: ~::;l~',' '
:. ':'IT':', ., : ~ .:' '1 "
Kt' 415Q~~,i..
;;: . MernOrJatliKlflway
~:~.~ 'ilt '~CI~~ . ,
"', .,;~ Suits: 300 i; ,
", "'1 'J;~:,'~ ,',
.. .. :~'.. .",
Andrew J. BrattIer, P:
Project Engineer
c: Bret Weiss. WSB & Associates, Inc.
mIl
,', "
." "
",
F:\WP\V\N\II60."lIlOllliOI Dk.wpd
Minnupolis ' St. Cloud. Equal Opportunity Employ@r
. / ~,'
~,,', '
TOTAL P.02
.
.
.
BRA Agenda - 2/07/01
8.
Continued - Consideration to hear
and fundin for a scattered housin
concept for use of TIF assistance.
A. Reference and Back2round:
As you recall, staff and the HRA targeted si es within the older part of Monticello for the
proposed scattered housing program for the purpose of replacing the current housing
stock with higher valued homes. Previousl , the area of 6th and Minnesota was identified
as a substandard area; however, the area do s not qualify for a redevelopment district
because 70% of the parcels did not contain t least 15% improvements per parcel.
As we began to work with Sheri Harris at t e Central Minnesota Housing Partnership,
Inc. (CMHP) for possible funding options t rough the Minnesota Housing Finance
Agency (MHFA) and with the funding appl" ation submission deadline of February 9,
2001, the area of 6th and Minnesota Street as targeted because of a preliminary concept
and an interested builder. As it turns out t at particular builder is not interested;
however, he would sell his vacant parcel.
Here is the program:
Sheri Harris writes the grant application ( ommunity Revitalization Fund).
CMHP will be the developer (Sheri will se e as the agent doing the negotiations,
purchase, etc.)
Program Goals: To maintain andlor increas the supply of affordable, owner occupied,
single family housing in neighborhoods and communities throughout Minnesota.
Programs Income Limits: Equal to or less t an 80% of state wide median income. $46,320
for family offour. Example: Two-family age earner - $11.13 per hour. According to
our wage survey of industrial business last une, 535 FT workers out of 1,804 FT workers
earn wages of$10.99 or less. One-family age earner - $22.26 per hour.
Funding Limit: $500,000.
Eligible Uses: Acquisition, demolition, new construction, replacement housing.
Timeline: Projects must be completed withi 20 months of execution of program
documents.
Application must have community particip tion: Council ok'd waiving building permits
and W AC/SAC fees.
1,000 to 1,100 sq:ft living space. Double arages. Purposed 9-10 homes.
Selling price not to exceed $131,000
Construction costs not to exceed $85,000.
Proposed builder: Tom Holthaus.
In order to fill the gap because of the high . ost to acquire and demolition the existing
properties, the HRA is requested to consid r creating a Housing District.
1
BRA Agenda - 2/07/01
.
Remember a Housing District provides affi rdable housing. This goal for small
communities is to attempt to meet job gro h needs. For owner-occupied developments,
at least 95% ofthe houses being assisted w th tax increment must be occupied by income
qualified families. 100% of median income for family oftwo or less and 115% for family
of three or more. Twin City Metro median income is $68,600 and statewide median
income in $57,900.
TIF Use: Assist with acquisition and demol tion costs.
Finance Method: Pay-as-you-go.
Private Redevelopment Contract with A
Standard Housing District - Local Contrib tion Match by City (permit and fee
forgiveness. )
TIF Cashflow, design, and proforma forthc ming.
B. Alternative Action:
1. A motion to approve the prelimin concept for use of TIF assistance for a
Housing District for the purpose of gap funding for the scattered housing program.
2.
A motion to deny approval of the p eliminary concept for use ofTIF assistance for
a Housing District.
.
3. A motion to table any action.
C. Recommendation:
With the goal to establish a scattered housi g program, the high cost to acquire property
to redevelop, the ability to obtain grant dol ars for affordable housing, and the HRA's
inability to establish a Redevelopment Dist . ct for this target area; the recommendation is
Alternative No.1. If the cashflow, design and proforma are not acceptable, this may not
be the recommendation.
D. Supportine Data:
Map oftargeted area.
.
2
. ~o
.,0'
~::-.,
d\...\C "
''IlOR~I''> ~~
.0
~
I ,
, I
N~:{Oraf' :-....
, 4 :J~ 3 " .~
A ' 2 ''t'
~_pr ,
, . ' , ". __. ., -.. ~ 00
, , >~I-I --.
-........
:'
, .~,
'~f.
~
.....
~,
.'
.""
/"<-'
I fie~'"
j~ '.,:' ",
i / '
If:
~n
" ..I V
. "0 /' ~'...,...... l!r,
.';' ,,-,.-
/ -."'.
; I
.'
( I
i
I
I
'S...
/ j
~-:~--'l~-
- "
I, .
. I'
! '
i '
I ' I
:" I
'.
\11.. I
I
...
-. '
"A
"
I
,
/
I
4 . , . fI
,/ ;'
I
I j
,/ / /
,'/ '.......B~
/
"
I
,.
4
/
.....~~;
.-' .'~
,f' .,.- ......
,
./
,/ , /
.~ ,l /
.'. '~~'" ,/ /
.' ~ I
/ -.............:
, I /"
/ ,/ /
I I
i
.. t .
:~
SA
I
..
/
,,!
..!
,
....
'/
<.
......,
't
.
.
.
BRA Agenda - 2/07 lot
9.
Consideration of a re nest from S rin st d Inc. to make a resentation to the
HRA.
A. Reference and Back~round:
A couple of weeks ago, I met with Paul Ste. men and a co-worker of Springsted, Inc. As
you recall some years ago, the company se ed as the City's financial consultants and
thereafter, the City joined with the HRA in se of Ehler's & Associates. About a year
ago, I requested consultant fees from three rms orebeing Springsted. The HR.A elected
to stay with Ehler's because of the value of nowing the city and HRA's history, hearing
no expressed dissatisfaction, and comparati e fees.
Springsted, Inc. has gone through some ch nges and have a new focus, they request an
opportunity to market themselves to the H
Is it the HRA's desire to invite Springsted, nc. to a meeting for a presentation?
1
.
.
.
10.
BRA Agenda - 2/7/01
Consideration to review for in
Work Plan.
o Is of the 2001 Economic Develo ment
A. Reference and Backeround:
Attached is a copy of the first draft of goals of the 2001 Economic Development Work
Plan. We will review the draft copy for yo r input. The EDA provided input on January
30. The Marketing Committee reviewed it n February 2.
.
.
.
HOUSING AND REDEVEL PMENT AUTHORITY
IN AND FOR THE CI OF MONTICELLO
2001 ECONOMIC DE LOPMENT GOALS
I.
DowntownlRiverfront Redevelopment:
TIME FRAME:
No later than June 0, 2001.
FRONT STREET HOUSING
Executed Purchase Agreements with Carlso s, Bostics, and O'Connor.
Executed Redevelopment Contract with De eloper Hans Hagen.
Demolition or removal of O'Connor, Schlie Bostics, and Reed garage.
Platting and utility stubs installed.
Perhaps, City replacement of water/sewer li e and Front Street.
Demolition of Carlson Home - August 2, 20 2
AMOCO RET AIL- PHASE I
Executed Purchase Agreement between dev loper and sellers.
Demolition of Amoco.
Executed Redevelopment Contract with Bar Fluth.
Purchase Option on homes
Four-year rule report to County Assessor
PHASE II
TIME FRAME:
No later than June 3 2002
Purchase and demolition of Homes for Carria e Home Housing
NORTH ANCHOR - RIVER STREET
TIME FRAME:
HRA July 2001 meeti g
New Cash Flow Projects by Ehlers.
Concepts for area.
Developers interest.
Developer negotiate and purchase options.
TIME FRAME:
No later than June 30 2002
HRA reimburse developer for acquisition, de olition, and other expenses.
Executed Redevelopment Contract with devel per.
Worse case scenario, 25% of tax increment sp nd outside district.
.
.
.
Five -year report to County Assessor
II.
Housing.
SCATTERED HOUSING PROGRAM
TIME FRAME:
MHFA application due February 9, 2001
Detennine local contribution.
TIME FRAME: 20 months fr m award of grant money
Develop builder requirements.
Develop building design and site developm nt criteria.
III. Industrial.
TIME FRAME:
No later than Dece ber 2001.
City owned industrial land.
Explore the idea to request thePlanning Co mission address the Gold Nugget parcel as
industrial zoning.
One new manufacturing industry.
One existing business expansion.
Visit _ existing businesses.
Marketing:
TIME FRAME:
No later than Dece ber 2001
Complete Electronic Commerce Communi y Readiness.
Mayor's Outing (Rafting on the River)
Maintain City's web site
Expo '01
TIME FRAME: No later than Dece ber 2002
Research and implement advertising camp . gn
Research potential of Message Center and rade Shows
Redo Marketing Brochure
IV. General.
TIME FRAME:
No later than Dece ber 2001
Research the potential to merge the HRA
Evaluate the merit ofDMRF program
Develop Tax Abatement Criteria
.
Review potential to construct a for-lease fa ility with bays.
Research the potential for the IDC to beco e an advisory committee.
.
.
.
.
.
11.
Recommendation is to authorize payment.
1
BRA Agenda - 2/07/01
bills.
Monticel 0 HRA
505 Walnut Av nue, Suite 1
Monticello, N 55362
.
MC100-01
January 1 ,2001
GENERAL
,:t\;-
- ~ "::l.-
Invoice # 17984
~
12/19/00 MTR Meeting with Rick and Ollie
12/28/00 MTR Prepare report on 1-22 projections
Hours Amount
Total Due This Month:
175
3.50
218.75
43750
-'--.- ---"-_.,-
5.25 $656.25
Status of Account:
-G!dr~Qt___ _ -.lQ.'p~y.L____~O...Q<!l'~___
$656.25 $0.00 $0.00
90 Da\Js 120+ Da\JS Total
-$O~-------$toO'-'---$60625
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REO; IT PINK COpy WITf1 PA YMENT TO:
o I H!k,~~,~
3060 Centre Pointe Dr; e
Roseviile, MN 55113-1105
651.691.8500
-- ..-... ,,_. ."..,...--. ~--"'--~"._'-""_.~'.'--"'_.~'-"~_~n',"~..~__,.,"____.......
.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut S1., Suite 1
Monticello, MN 55326-8831
DECEMBER SERVICES - MONTICELLO PRO CT
anuary 3, 2000
INVOICE
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
o~' '? F)-- f\ ~
\r ~~ -
-\ ')..~ ~ p
Bostic
Write letter to Bostic. equesting counter oiler.
Talk with Bostic rega ding counter ofter.
Write letter to Carlso 's attorney with counter offer.
Write letter requestin counter offer.
Talk with City regard' g acceptance of offer.
Talk with IffiA and t ice with HRA attorney regarding Purchase
Agreements.
Carlson
O'Connor
Talk with O'Connor
Attend BRA meeting,
Fax information to and talk with HRA regarding same.
Talk with BRA regar ing settlements and offers.
General
TOTAL HOURS E ENDED
AT $70.00 PER HO
9.25
$647.50
.
ACQUISITION AN
o ~~~O~~lrr\I
JAN 5 2u01 ~
RELOCATION
.
.
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Gra en, Chartered
200 South Si th Street
Suite 70
Minneapolis, N 55402
January 1 ,2001
Statement o. 36259
'--I- ... \ -- '?- \;: O'i'"i c;:t,
Through December 31, 2000 \ :c '" '....
MN190-00041 Redevelopment - General
MN190-00046 Soils TIF
,\'3:: ~ \- \ <&
~
MN 190-00050 Vector Tool Land Sale
i~~ \-~~
MN190-00080 Midwest Graphics Amendment
MN 190-00090 Acquisition of 225 Front St./Carlson "\1:<::'- \, 'd. ""')--
Expenses
I declare, under penalty of law, that this
account, claim or demand is just and cor ct
and that no part of it has been paid.
S;gna',re flhp
.
Total Current Billing:
645.80
37.25
0.00
89.40
893.60
51.67
1,717.72
.
.
Kennedy & Gravl n, Chartered
200 South Si th Street
Suite 70
Minneapolis, N 55402
(612) 337 9300
41-1225 94
January 1 ,2001
Invoice # 6259
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
--r <y \~ ') ~ :W:J-
~ ~-t- C;
MN 190-00041
Redevelopment. General
Through December 31,2000
For All Legal Services As Follows:
12/6/2000 CHT Prepare outline of issues; attend HRA Board meeting;
phone call with 0 Koropc ,ak re meeting; intraoffice
conference with S Bubul use of tax increment
Hours
4.00
12/7/2000
SJB Intraoffice conference wit C Thomson re various land
acquisition questions
0.20
.
=
otal Services :
$
otal Services and Disbursements: $
Amount
616.00
29.80
645.80
645.80
.
.
.
Page: 2
Kennedy & Gra en, Chartered
200 South Si th Street
Suite 70
Minneapolis, N 55402
City of Monticello
c:, \- ~ \jV\ ," d
\'S;:- V " .>-Y"
December 31, 2000
MN190-00046 Soils TIF
Through December 31,2000
For All Legal Services As Follows:
12/20/2000 SJB Phone call with 0 Koropch k; prepare certificate of
completion
T tal Services :
Hours
0.25
$
Amount
37.25
37.25
To al Services and Disbursements: $ 37.25
.
.
.
Page: 3
Kennedy & Gra en, Chartered
200 South Sil th Street
Suite 70
Minneapolis, N 55402
City of Monticello
December 31, 2000
MN190-00050 Vector Tool Land Sale
For All Disbursements As Follows:
Photocopies
Postage
Minnesota Secretary of St te
To al Disbursements:
12/4/2000
To al Services and Disbursements: $
$
0.80
1.10
15.00
16.90
16.90
.
.
Page: 4
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis, N 55402
City of Monticello
December 31, 2000
MN190-00080 Midwest Graphics Amendment
'J-./1;7
~~
\-
Through December 31, 2000
For All Legal Services As Follows:
12/6/2000 SJB Review assignment of co tract; telephone conference with
o Koropchak re same, jo covenants
~ tal Services:
.
Hours
0.60
$
Amount
89.40
89.40
otal Services and Disbursements: $ 89.40
Page: . 5
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0 ........... /"
Minneapolis, N 55402 '" /"
C:- ~ \~"d
-\Y
.
City of Monticello
December 31, 2000
MN190-00090 Acquisition of 225 Front St./Carlson
Through December 31,2000
For All Legal Services As Follows:
12/13/2000 CHT Phone call with 0 Koropch k re Carlson purchase
agreement
12/15/2000 SJB Phone call with 0 Koropch k re Carlson acquisition;
research TIF/park use que tion
12/18/2000 SJB Research TIF for land acquisition, sale to City for park;
phone call with 0 Koropch k re same
12/19/2000 SJB Phone call with 0 Koropch k re value of land; financing
options
. 12/20/2000 CHT Phone call with 0 Koropch k; phone call with K Helvey re
Carlson agreement; intrao ce conference with D
Greensweig
12/21/2000 DJG Draft Carlson purchase agr ement
12/22/2000 DJG Draft lease agreement and evise purchase agreement
To al Services:
For All Disbursements As Follows:
Postage
Fax
Photocopies
.
To al Disbursements:
Hours
0.20
Amount
30.80
1.00 149.00
0.30 44.70
0.50 74.50
0040 61.60
2.90 377.00
1.20 156.00
$ 893.60
$
2.97
22.00
9.80
34.77
.
.
Page 6
Kennedy & Gra en, Chartered
200 South S th Street
Suite 70
Minneapolis, N 55402
City of Monticello
December 31, 2000
To I Services and Disbursements: $
928.37
.
12.
.
.
BRA Agenda - 2/7/01
Executive Director's Report.
a) GMEF No. 010 (Vector Tool) - The m difications to the Loan Agreement and other
documents were drafted and executed by a propriate individuals at the closings on
November 29, 2000. Attached is the new mortization schedule at the approved interest
rate and a letter of payment due for costs a sociated with the modification. Appropriate
filings at the Secretary of State and Wright County have been recorded and originals
returned.
b) GMEF No. 017 (Twin City Die Casting) - Invoice for costs associated with VCC filing
on equipment. VCC not filed the City $50 ,000 as all equipment not arrived and paid.
c) EOA Annual Meeting is scheduled for ri124, 2001 - I've attached a copy of minutes
from a budget workshop ofthe city counci on November 16, 2000. On page 3 notes
some discussion relative to the EDA funds. After the year-end report, the EOA may give
some consideration to begin payback for L quor Funds. This a thought for consideration
not necessary. Secondly, relative to the D - I will research a few parcels which
received OMRFs for a comparison of in ere sed market value over the years to see if the
EO A investment is paying off
d) Integrated Recycling Technologies, Inc. - The Prospect Team visited this Rogers
company. They are a auto catalyst refiner .th 3 FT and 2 PT employees. The owner,
Steve Budd, purchased Kermit Benson's h me. He's looking to perhaps build a 10,000
sq ft metal building on a 2-acre parcel alo ' Fallon Avenue. He would add an additional
3-4 FT workers within 2 years. Wages be een $35,000 to $50,000 annually w/o
benefits. Looking for funding.
e) Barger/Harwood - Looking to construe another 15,000 sq ft metal building behind
Vector Tool. This resulted after C. H. Ho t Company called my office for the need for
another 5,000 sq ft and B&B Metal Stamp.ng need for additional space. Space may also
accommodate a St. Cloud and Big Lake c mpany.
f) Red Wing Foods - Met with Charlie Pfe er, company, staff, and builder relative to
construction ofa 50,000 sq ft precast buH ing on 6 acres ofland to the west of Twin City
Die Castings. Red Wing Foods would tak 20,000 sq ft and the remaining for lease. Red
Wing Foods is a packager and distributor f gourmet foods with contacts to Byerly's,
Lund's, Target, etc. Price ofland now $4 ,560 per acre. Plan to request TIF assistance.
g) Old St. Henry's site - Preliminary new, oncept for redevelopment of this site. Stay
tuned.
h) HRA housekeeping - Will notify St. Be s in March of need for evidence relative to
low/moderate income and rent levels for t e qualified housing district. Next month I'll
present the estimated market values for p yable 2001 on the Prairie West redevelopment
area. Plan to write an article in the city n 'wsletter on the success ofthat and the River
Mill project as public/private partnerships' Mississippi Shores reported their annual
income and rental level report. Pay-as-yo -go payments were mailed for February 1,
2001. I attended the EWer's TIF Semina on February 1.
i) Legislator Alert - Relative to pre-1990 IF districts. I've written in opposition of the
BRA Agenda - 217/01
.
proposed file to League of Minnesota and 0 r representatives.
j) Copy of letters to RDI, Aroplax, and new articles.
.
.
:<<.
~_an 24 2881.18:40:85 Via Fax
--N l,
-....-""
LMC
.
.
I
.
-)
6 229544B4 AdNinistrator
Page B81 Of BB1
J..4.!dgUU of i~li'''I~~tJIu. (~'Jitl5
('il;f,."lI ,.,,-u,nlJli"'!f L.:ct'c:II.."i4.~
145lJnl erlllly Avcnuc Weill, Sl.l'..ul, i\1l\ 5510.3.2044
I )llUnc: (6.51) 281-1200 . (800) 91.5.1122
1-"..:\: (651) 281-1299. '1"1)1) (651) 281-1290
ACTION
Legislation introduced to significantly r it activities in pre-1990 TIF districts
H.F. 187, the companion bill to S.F. 73 (Rest, Be nger, and Pappas), was introduced last week
by Representatives Ron Abrams (R-Minnetonka), Dan McElroy (R-Burnsville), Bill Kuisle (R-
Rochester), Dennis Ozment (R-Rosemount), and nn Lenczewski (DFL-Bloomington).
This legislation applies to tax increment financing districts for which the request for certification
was made prior to May 1, 1990. Anyamendment to the underlying TIF plans for these districts
would be required to be made by April 30, 2001 a d essentially all spending would have to be
completed within one year, by April 30, 2002, at hich point the district would have to be
decertified.
The League of Minnesota Cities and other city rep esentatives are concerned about the potential
impacts and unintended consequences this legislalon could have on projects that are currently
underway. In order to gauge the magnitude of the potential problems, the league conducted
some preliminary research that indicates that there are approximately 753 TIF districts in 253
cities that would be affected by this legislation. 0 er 75 percent of these districts are either
housing or redevelopment districts.
It appears clear that this legislation has substantial upport in the House. Its fate in the Senate is
a little more uncertain at this point.
If you have projects underway in your pre-1990 TIF districts it is absolutely critical that
you communicate the follOWing to your legislat rs:
. that you have pre-1990 TIF districts that wi I be impacted by S.F.73/H.F. 187;
. that you have projects currently underway t at will be hamstrung by this legislation (be
sure to describe the specific goals you are tr ing to achieve with your projects); and
. what you will have to do with respect to thos projects if the leJ:islation becomes law.
In order to coordinate our efforts, it would be helpf I if you would forward a copy of any
communication with your legislators on this issue t Andrea Stearns at (651) 281-1258 (phone),
(651) 215-4116 (fax), or stearns@lmnc.org.
January 24, 2001
AN EQUAL OPPORTUNIIT /AFFIRM TIVE ACTION EMPLOYER
\)
January 8, 700 I
MONTICELLO
.
.
Rick D. Murray
Residential Development, Inc.
15 Choctaw Circle
C:hanhassen, MN 55317
Dear Rick:
Attached is a copy ofthc Certificate ofCornpletion asslCiated with the Contract for Private
Redevelopment betwcen RD] and the Monticello lIRA. At the January 3, 2001 liRA meeting, the
Comrnissioners approved the Certificate ofCompletiOl based on a report by the Execlltive Director.
According to lhe market values from the Coullty for p, yable 200 I, all but five lots in Phasc I and II
indicatcd construction and the total market value ofth land and building was $18.590,500. excceding
the at least value of $16,275,000 within the COlltract. fhercforc. the liRA approved the certificate of
completion alld also approved a resolution for decertil catioll of the district allO\ving for early distribution
of the tax increment to the taxing jurisdictions.
The last rernaining tax increment of $20AOO due RDl
annual tax incrcment paymcnts of February I. 2001.
privatc/public partnership to rcstore a mined arca and
Monticello. Thank you and much continued success.
1as been authorized tiJr payment with the senl i-
{ick, it was our pleasure to \vork with RDI in a
'reate affordable housing for the City of
Should you have any questions, please callrne at 763- 71-3208.
Sincerely.
IIOUSINCj AND REDEVELOPMENT ALrnlORlf
IN AND FOR THE CITY OF MONTICELLO. MIN t::SOTA
Q~~ \<d1 o~'
Ollie Koropchak
Executive Director
Attachment
c:
Roger Iklsaas. Mayor
Rick Wolfslcllcr. Administrator
TIF File
-So
Monticello City Hall, 505 Walnut Street, Suite I, Monlicell(, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Montice! 0, MN 55362 . (763) 295-3170' Fax: (763) 271-3272
.J
,I , M' ,
~ , .
L._.~~._._._~..-.-...._I
~
January 8, 2 01
MONTICELLO
Jerald J. and Mary E. Schoen
Aroplax Corporation
200 Chelsea Road
Monticello, MN 55362
Dear Jerry and Mary:
Through a letter dated April 6, 2000, Aroplax Co oration was advised of the action taken by the
HRA Commissioners at their meeting of April 5, 2 00. The Commissioners had made a motion
authorizing the following payment schedule for th Tax Increment Guarantee Deficiency relative
to the Contract for Private Redevelopment betwe n the HRA and Jerald J. and Mary E. Schoen
for TIP District No. 1-12:
.
On April 6, 2000, the cumulative Tax Increment Guarantee Deficiency through calender year
1999 was $12,426.80 and the Commissioners a eed to a payment schedule without interest as
outlined above. The amount of tax increment c llected by the City Administrator of the City of
Monticello from the Auditor of the County of right for Taxes Payable 2000 was $16,128.82.
Therefore, the Tax Increment Guarantee Defici ncy for calendar year 2000 is $5,37I.18 (Tax
Increment Guarantee $21,500 less Tax Increme t cnllected $16,128.82.) This amount
($5,371.18) is due May 5, 2002. TIF District o. 1-12 will decertify on June 10, 2001, and the
Authority shall not collect Tax Increment for T esPayable 2001 and thereafter.
Due May 5, 2000 - $6,213 40 paid May 16,2000
Due May 5,2001 - $6,213.40
Due May 5,2002 _ Tax In rement Guarantee Deficiency for Taxes
Payable 2000
Via a telephone conversation with Steve Schoe on April 5, 2000, Schoen agreed this was an
~.
.
Monticello City HaH, 250 E. Broadway, PO Box 1147, M nticello, MN 55362-9245 . (612) 295-2711 · Fax: (612) 295.4404
Office of Public Works, 909 Golf Course Rd., Mo ticello, MN 55362' (612) 295-3170' Fax: (612) 271-3272
.
Jerald J. and Mary E. Schoen
January 8, 2001
Page 2
acceptable solution to an unpredictable and unfortun e situation. Should you have any questions,
please do not hesitate to call me at 763-271-3208.
Respectfully,
HOUSING AND REDEVELOPMENT AUTHOR! Y
IN AND FOR THE CITY OF MONTICELLO
D ~ "'~ t:^ e ,Sl
Ollie Koropchak
Executive Director
c:
Roger Belsaas, Mayor
Rick Wolfsteller, City Administrator
File
.
.
DIg I '~laIII
plans set fi. Ian
.~ Apartments, home In p
By Andrew Tellijohn
Staff reporter
Oppidan Investment ;~~
and the city of Delano hop
k round on an
soon brea g '1 nd
800000-square-foot reta.1 ~
'. . t continUing
residential proJec,. of the
the westward expansIOn
Tw' Cities metro area.
;;'born's, a regional gr?-
hain that has stores In
cery c N rth Dakota and
Minnesota, 0 h Delano
I will anc or .
owa,. which will be 10cat-
CroSSll1~S, . 12 the city's
ed on HIghway on
DELANO to page 37
C ges counter
jiving enrollment
1 Schools are trying to :und
I nd support students ro:;;
er Income backgroun
0-:' the only ellpanding col-
'ge.age group. page I J
WWw.biZjourna/s.com/twinCltles/
DELANO
from page I
"It is going to bring us sOme commercial
rowth we have needed to aCCompany the
sidential growth that has been going on,"
aid Phil Kern, Delano city administrator.
he city's population has grown byapprox_
i ately 1,000 people to about 3,500 resi-
d nts over the last decade, and between 50
a d 80 residential units have been added
nually dUring that time, Kern said.
Delano will spend about $1.3 million in
in rastructure improvements, including
ex anding sewer and water capabilities to
the east side.
ut don't expect this city to continue
dev loping indefinitely, he added. Officials
are onsidering what, where and how much
mO/1. Delano can expand without losing its
smal-town feel. ,
at is a good idea, said Dick Orones, a
prinipal with Edina-based Cambridge
Com ercial Realty. There's plenty of Space
avail Ie in De/ano"but many people who
move. to Delano to get away from the lWin
Cities Would be turned off by a large amOunt
of co mercial development.
. y'll drive downtown [Minneapolis]
for the fancy stuff," he said.
Oro es added that a~ long as Oppidan
keeps . e plans simple and COntinues finding
solid te ants, it will do all right. He cited
Coborn '. as a solid example of a grocery
store tha has located a niche in "second-tier"
markets 0 that it doesn't have to compete
with ch 'ns like Cub FOOds or Rainbow
FOOds. .
Jeff Betchwars, Rc
to right) set ?ut t
Bank as a umque
By John Hoogest
Staff reporter .
In an era wlll'l
banks open annuall
more to distingUIsh
So when Jelf I
together to . opel:
Bloomington III III
the bank unique.
First, they com t
star and now color c
bank as chairl11a~. \.
bank, allll now hiS 1].
tomers. .
Next, thcy eqUip!
lechnology to aUral'
ices, not just the hlf:
.
east side. Other companies that have com-
mitted to the site inclUde McDonald's, the
State Bank of Delano and Little Dukes, a
convenience store chain also Owned by St.
Cloud-based Coborn's Inc.
Coborn's could not be reached for COm-
ment.
The only hang-up at this Point is getting
.a wetland permit from the Minnesota
Department of Natural Resources. Officials
Were not SUre when that Would happen.
"We're one more step to becoming a con-
tinuous metropolitan area from St. ClOUd to
Minneapolis," said Keith Ulstad, a principal
with Minnetonka-based Oppidan.
Half of the 80-acre lot will be sold to
BrightKEYS Building and Development
Inc., a Stillwater-based residential develop_
er. The COmpany has a site plan currently
under city consideration that Would inclUde
110 apartment units, 12 eight-unit town
homes -otherwise known as villas, and 34
single-level town homes, said Dale Runkle,
director of land development and acquisition
for BrightKEYS.
"It's basically more of the traditional
town homes that have been bUilt in the lWin
Cities," he said.
Such units are gaining in POpularity as
land gets scarce throughout the metro area
and as imperfections are found on sOme
parcels that prevent development, he said.
lWo similar projects in St. Michael have
been sUccessful for the developer, he said.
The total paCkage has city officials
excited.
.
Cil
Ex;
o
.,
-
~.
I
-
)~Builders
d to announce
In of the following
:>vation projects:
"oject; Brooklyn park
iology; Hopkins
c.; Chanhassen
nics; Bloomington
k these clients for selecting
')contractors and vendors
Juted to our success.
.
IN
.- 952-927-5400
., S
SCn'iees
REAL ESTATE
www.bizjournals.com/twincities/
erTarget believed to be anchor tenant
Shop ing center
pia ed for Rogers
By Sam Black
Staff reporter
The city of Rogers will join the
SuperTarget derby with proposed new
retail center..
SuperTarget, a combina ion grocery and
general merchandise sto e operated by
Minneapolis-based Tar et Corp., is
believed to be part of t e $30 million,
300,000-square-foot retail enter proposed
by Ryan Coso U.S. nc., also of
Minneapolis. If true, th t would make
seven SuperTargets either announced or
proposed in Minnesota.
Real estate sources famiJ'ar with the proj-
ect say a SuperTarget is th anchor tenant.
However, Tom Palmquist, v'ce president of
retail development at Ry n, declined to
name any tenants when he iscussed plans
for the site at Tuesday night' meeting of the
Rogers Planning Commissio .
The site plan shows a 74,OOO-square-
foot anchor tenant that Pal uist described
as a combination of a gene I merchandise
retailer and upscale grocery tore.
The plan also include an 86,000-
square-foot "soft line dep rtment store"
and four smaller retail spa es, Palmquist
said. There will also be thre lots available
for restaurants. Constructi n of Rogers
Retail Centre is tentatively scheduled to
~
w 0 rI l I') W, I':l ~
A SuperTarget is believed to
be part of a $30 million,
lOO.OOO.square-foot retail
(enter proposed by Ryan Coso
begin in June, with stores expected to open
in July 2002.
A spokeswoman for Target Corp. would
not confirm that Rogers is being considered
for a new store.
Ryan has options to buy about 30 acres at
the northwest comer of Highway 101 and
Interstate 94. Rogers, with about 5,000 resi-
dents, is on the 1-94 corridor, about 10 miles
west of the intersection of interstates 94, 694
and 494.
The city is in the midst of a I miIlion-
square-foot expansion of its industrial and
distribution warehouse space. City leaders
say the retail development is the kind of
diversity the city needs to round out the tax
base.
Rogers is the seventh SuperTarget
planned in Minnesota. Target Corp. has
announced SuperTargets in Shoreview,
Rochester, Minnetonka and Chaska. There
have been' proposed SuperTargets in Inver
Grove Heights and Lakeville.
There are 32 existing Target and Target
Greatland stores in the Twin Cities. The
first SuperTarget to open in the 1\vin Cities
will be in Shoreview this March.
Minneapolis-based Target Corp., which
reported $34 billion in 1999 sales, has 977
stores in 46 states, about 30 of which are
SuperTargets. .
Sam Black can be reached at (6/2) 288-
2/03 or sb/ack@bizjourna/s.com.