EDA Resolution 2020-02CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-02
RESOLUTION APPROVING PURCHASE AND DEVELOPMENT
CONTRACT BETWEEN THE CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY AND UMC REAL ESTATE, LLC, AND
APPROVING THE BUSINESS SUBSIDY AGREEMENT AND
CONVEYANCE OF LAND PROVISIONS CONTAINED THEREIN
BE IT RESOLVED by the Board of Commissioners ("Board") of the City of Monticello
Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority currently administers the Central Monticello Redevelopment Project
No. 1 (the "Project") within the City of Monticello (the "City"); and has heretofore approved the
creation of Tax Increment Financing District No. 1-41 (the "TIF District") within the Project, all
pursuant to Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1794, as
amended.
1.02. To facilitate development of certain property in the TIF District, the Authority
proposes to enter into a Purchase and Development Contract (the "Contract") between the Authority
and UMC Real Estate, LLC (the "Developer"), under which among other things the Authority will
convey to the Developer certain property described as Lot 2, Block 1, Monticello Commerce Center
Sixth Addition, Wright County, Minnesota (the "Development Property") at a cost below market
value.
1.03. The land write-down under the Contract constitutes a "business subsidy" exceeding
$150,000 within the meaning of Minnesota Statutes, Section 116J.993 to 116J.995 (the "Business
Subsidy Act").
1.04. The "business subsidy agreement" as required under the Business Subsidy Act is
included as one section of the Contract, and the Authority has on this date conducted a duly noticed
public hearing regarding both the sale of the Development Property to the Developer and the
business subsidy agreement, at which all interested persons were given an opportunity to be heard.
1.05. On August 6, 2019, the Planning Commission of the City reviewed the proposed
conveyance and found that it complies with the City's comprehensive plan.
1.06. The Authority finds and determines that conveyance by the Authority of the
Development Property to the Developer is for a public purpose and is in the public interest because
it will further the objectives of the Project, will facilitate the expansion of a successful business and
the creation of new jobs in the City, and will increase the tax base.
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Section 2. Contract containing Business Subsidy and Land Sale Approved; Further
Proceedings.
2.01. The Board approves the Contract as presented to the Board, including the business
subsidy agreement and provisions for the conveyance of the Development Property therein, subject
to approval by the City Council of the business subsidy and subject to modifications that do not alter
the substance of the transaction and that are approved by the President and Executive Director,
provided that execution of the documents by those officials shall be conclusive evidence of their
approval.
2.02. Authority staff and officials are authorized to take all actions necessary to perform
the Authority's obligations under the Contract as a whole, including without limitation execution of
any deed or other documents necessary to convey the Development Property to the Developer.
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 26th day of February, 2020.
President
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