HRA Agenda 03-01-2006
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 1,2006 - 6:00 p.m.
Bridge Room - Community Ceuter
Commissioners:
Chair Darrin Lahr, Vice Chair Dan Frie, Steve Andrews, Brad Barger, and Bill
Fair.
Council Liaison:
Wayne Mayer.
Statf: Rick Wolfsteller, Ollie Koropchak, and Angela Shumann.
I. Call to Order.
2. Consideration to approve the February I, 2006 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
5. Consideration to authorize entering into a Preliminary Development Agreement with Karlsburger
Foods, Inc. and to authorize preparation of plat.
6.
Consideration to approve a resolution requesting the City Council call for a public hearing for
establishment of proposed TIF District No. 1-37, an Economic District. Applicant:
HRA/Karlsburger Foods, Inc.
7. Consideration to approve a resolution calling for a public hearing on the proposed awarding of
business subsidy to Karlsburger Foods, Inc.
8. Consideration to hear follow-up on revisions to the Transformation Home Loan Program.
9. Consideration to authorize payment of HRA bills.
10. Consideration ofHRA Executive Report.
II.
Committee Reports:
Marketing
Fiber Optic
12. Next HRA meeting - Annual meeting, Wednesday, April 5, 2006.
13. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 1, 2006 - 6:00 p.m.
Bridge Room - Community Center
Commissioners Present:
Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger, and Bill Fair.
Commissioners Absent:
Steve Andrews.
Counci I Liaison Present:
Wayne Mayer.
Staff Present: Rick Wolfsteller and Ollie Koropchak.
1 . Call to Order.
Chair Lahr called the HRA meeting to order at 6:05 p.m. declaring a quorum.
2. Consideration to approve the December 6. 2005 HRA minutes.
Lahr clarified his statement on page 4, paragraph 3 to mean that a developer rarely pays on an
hourly fee basis for establishment of a TlF District. Koropchak noted a correction on page 7: the
motion to read - in the amount 01$625 toward expensesjor the fiber optic consultant.
BILL FAIR MADE A MOTION TO APPROVE THE DECEMBER 6, 2005 HRA MINUTES
WITH THE CORRECTION SO NOTED ABOVE. BRAD BARGER SECONDED THE
MOTION AND WITH NO FURTHER CORRECTIONS OR ADDITIONS, THE MINUTES
WERE APPROVED AS CORRECTED. MOTION CARRIED.
3.
Consideration of adding or removing items from the agenda.
Koropchak requested the addition of one item under SA: Request from Master's Fifth Avenue for
grant payment associated with the removal ofthe Koppy garage.
4. Consent Agenda:
A. Consideration to adopt an amended and restated resolution authorizing Intertund Loan for
advance of certain costs in connection with TlF District No. 1-36.
B. Consideration to approve a Certificate of Completion for Rockv Mtn Group LLC.
BRAD BARGER MADE A MOTION TO APPROVE THE CONSENT AGENDA:
A. TO ADOPT AN AMENDED AND REST A TED RESOLUTION AUTHORIZING
INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION
WITH TIF DISTRICT NO. 1-36.
B. TO APPROVE A CERTIFICATE OF COMPLETION FOR ROCKY MTN GROUP
LLC.
BILL FAIR SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, T!-IE
MOTION CARRIED.
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HRA Minutes - 02/01-06
With the up-front assistance of land sale, Koropchak noted the need to identify or collect a letter
of credit or bond upon issuance of the certificate of occupancy for non-completed work such as
landscape. This needs to be addressed with the building department.
5.
Consideration to adopt a resolution approving the modification to the TlF Plan for TIF District No.
1-6. Redevelopment District (Raindance.)
Koropchak noted the purpose of the modification was two-fold: First, to address the recent
change in Minnesota Statutes as it relates to excess tax increment and secondly, to affirm the
intent of the HRA which is to finance additional public costs within the Central Monticello
Rcdevelopment Project No.1 boundaries. The modification will not enlarge the boundary of the
TIF District but will increase the district's budget from $465,150 to $1 ,943,500. This modification
does not obligate the HRA to incur debt, it reserves the right of the HRA to incur bonded
indebtedness. HRA action to incur additional debt would need to occur prior to the district's
maturity date of July 2013. As of December 2004 TlF Reports, the district fund balance was
$172,183 and the outstanding bond debt was $70,000. District 1-6 was certified in 1985 and
assisted with soil correction, site improvements, land acquisition, and public improvement costs
associated with the development of the property for construction of the Maus Foods building.
The Planning Commission is scheduled to approve their resolution on February 7 and the Council
to hold a public hearing and approve their resolution on February 13. The county and school
district did receive a copy of the TIF Plan on January 1 I, 2006.
DAN FRIE MADE A MOTION TO ADOPT A RESOLUTION APPROVING THE
MODIFICATION OF THE TIF PLAN FOR TIF DISTRICT NO. I -6. A REDEVELOPMENT
DISTRICT. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER
DISCUSSION, THE MOTION CARRIED.
6.
Consideration to review for discussion the HRA- TIF Management Report as prepared bv Ehlers
& Associates.
The TIF Management Report as prepared by Ehlers & Associates gives a summary of each
active TIF district including projected revenues and expenditures. projected amount of
uncommitted revenues available through life of district, and recommendations. Koropchak noted
page 3 was perhaps the most interesting to the commissioners. It is a summary table of currently
projected uncommitted revenues for each district categorized by type of district. The pre-1990
redevelopment districts allow the HRA the most flexibility as they are not subject to the recent
limitations placed on newer districts therefore the dollar amounts are larger. The analysis is
dollars available in today's dollars with limitations applied. Recommendations were outlined as
follows: Reconcile the City financial statements to the TIF reports, reconcile modification dates
as reported on the TIF reporting forms (this has been completed) and approve formal
modifications for TlF District Nos. I -2 and I -20 prior to July 30 and 1-26 and 1 -30 prior to
decertification. Technical modifications are recommended for 1-5,1-31,1-19,1-23 and perhaps
1-29. Koropchak added the excess tax increment calculations do not show up on these pages.
No action is necessary by the HRA as this is a management report with recommendations and
gives the commissioners a summary of the uncommitted fund balances for use as a tool in
establishing goals for future redevelopment and economic development projects within the Project
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HRA Minutes - 02/01-06
area. It is expected the excess tax increment projections will be available next month.
7.
Consideration to assess the Transformation Home Loan Program and review for discussion the
Proposed 2006 HRA Work Plan.
TRANSFORMATION HOME LOAN PROGRAM
Koropchak informed the commissioners that the Transformation Home Loan Program had been
in existence for one year. Based on the direction for an annual review ofthe program, the
commissioners received a list of names of individuals who had inquired over the year. The HRA
approved one loan which as of today has not been disbursed with no other takers. A total of 17
inquiries were received. Koropchak felt individuals did not take advantage of the program
because the total improvement costs of $50,000 or greater was too high. Although it does not
take long to incur $50,000 of costs, perhaps this exceeds most individual's budget. About 200
single-family, owner-occupied property owners with 2004 market values of$150,000 or less were
mailed a copy of the brochure last February. Also, a breakfast for lenders and real estate agents
was held to market the program with about a dozen people in attendance. The commissioners
discussed the option to open the program up to rental property or for someone to purchase, fix-up
and sell. The commissioners agreed the program was worthy of modifying the criteria and to
extend another year.
DAN FRIE MADE A MOTION TO LOWER THE TOTAL COST OF THE REMODEL
FROM $50,000 TO $30,000, INCREASE THE LOAN AMOUNT FROM 20% TO 25% OF
THE REMODELING PROJECT, REDUCE THE YEARS TO REMAIN IN THE HOME
FROM SEVEN YEARS TO FIVE YEARS, AND INCREASE THE MARKET VALUE TO
$175,000 OR LESS FROM $150,000 OR LESS. AFTER MAKING THE APPROPRIATE
CHANGES TO THE BROCHURE, MAIL THE BROCHURE TO SINGLE F AMIL Y,
OWNER-OCCUPIED HOMES WITH A MARKET VALUE OF $175,000 OR LESS. BRAD
BARGER SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION CARRIED.
PROPOSED 2006 HRA WORK PLAN
The proposed 2006 HRA Work Plan was prepared by the Chair and Executive Director and
supports the HRA goals approved in 2005. The work plan, to be used as a tool for direction in
2006, was viewed by the commissioners as understood and applicable. The commissioners asked
about the status of the request for proposal (RFP) for the Comprehensive Plan Update and if the
RFP includes an update of the Downtown and Riverfront Revitalization Plan. Chair Lahr stated
there is a need for the RFP to address the decaying, old downtown. Council member Mayer
agreed with Lahr and stated the downtown area should be a part of the Comp Plan update.
Some members saw the need to define the meaning of "core downtown" as the core appears to
be moving. Because ofthe perception of available parking in the downtown area, Bill Fair
recommended two items be placed on the HRA agenda within the year: Research the amount of
adequate parking necessary to support commercial and housing, and identify feasible parking-
structure options and convenient parking areas in the downtown area. The summary table ofthe
recently projected uncommitted revenues can be a tool to accomplishing the HRA work plan and
goals. No formal action was taken by the commissioners.
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HRA Minutes - 02/01-06
Consideration to authorize Davment ofHRA bills.
DAN FRIE MAD A MOTION TO AUTHORIZE PAYMENT OF THE ATTACHED HRA
BILLS. BILL FAIR SECONDED THE MOTION AND WITH NO FURTHER
DISCUSSION, THE MOTION CARRIED.
Due to the additional costs associated to clear the title for closing of the property between the
City and Rocky Mtn Group, Koropchak asked the commissioners for direction. Upon the City
purchasing the 35-acres from Chadwick, the City purchased title insurance. For whatever
reason, the insurance company nor the city's attorney did not clear the nineteen exceptions listed
prior to closing with Chadwick. Hence, the HRA attorney firm of Kennedy & Graven resolved
the title issues and the HRA was billed and paid the approximate $3,107. However, Koropchak
did not feel this was the responsibility of the developer and is suggesting the city reimburse the
HRA. The commissioners agreed and directed the City Administrator to talk to Campbell-
Knutson about compensation reimbursement to the city. The administrative cost over-runs for
Rocky Mtn Group total $7,580.76. This amount is billed along with the issuance ofthe certificate
of completion. Dan Frie suggested in the future, the HRA ask the purchaser to accept as an
addendum the title insurance policy provided by the city.
Consideration to aDDrove a request from Master's Fifth Avenue for grant Davment associated
with the removal of the KODDV garage.
Per the Contract, the HRA agreed to pay a $20,000 grant to the developer for costs associated
with parking improvement costs on the Koppy site located within TlF District No. 1-22. The
grant to be paid from tax increment from District 1-22. The developer must provide evidence
satisfactory to the authority: proof of payment for acquisition and removal of garage, completion
of the parking improvements, and submission of lien waiver from any contractors employed by the
developer. The commissioners received a copy ofthe evidence provided by the developer and a
letter from the developer requesting payment of the actual costs incurred ($22,070.25.) The
building department provided photos of the completed improvements. Koropchak reported in the
HRA minutes to approve the $20,000 grant, the developer noted the costs for removal or
relocation ofthe electrical poles and transformer were not included in the grant request.
Koropchak also noted within the Parking Lot Improvement and Maintenance Agreement between
parties associated with Landmark Square I, Koppy agreed if the garage was removed in the
future it could not be replaced. The commissioners agreed a contract was a contract and also
noted they looked forward to future redevelopment projects with Fluth. BILL FAIR MADE A
MOTION TO APPROVE AND AUTHORIZE PAYMENT OF THE $20,000 GRANT TO
MASTER'S FIFTH A VENUE FOR PARKING IMPROVEMENT COSTS ASSOCIATED
WITH THE REMOVAL OF THE KOPPY GARAGE. BRAD BARGER SECONDED THE
MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED 3- J. DAN
FRIE ABSTAINED AS HE WAS NOT PRESENT AT THE MEETING APPROVING THE
$20,000 GRANT. Wayne Elam, Nelson Builders, informed the commissioners the Landmark
Square II project was over-budget causing the architect to re-design the project. Koropchak
reported Fluth expects the project to move forward this spring.
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HRA Minutes - 02/01-06
9.
Consideration of HRA Executive Report.
The report was accepted as written. Lahr gave a brief update on the causes of the recent
electrical outages or surges in the industrial park. He will be attending the IDC meeting on the 7'h
of February.
10.
Committee Reports:
The Marketing Committee is scheduled to meet on February 6.
Questions on the Fiber Optics RFP are being taken with the deadline for
submission ofthe RFP in mid March.
11. Other Business: Next HRA meeting - Wednesday, March 1, 2006.
12. Adiournment.
DAN FRIE MADE A MOTION TO ADJOURN THE HRA MEETING. BRAD BARGER
SECONDED THE MOTION AND WITH NO FURTHER BUSINESS, THE MEETING
ADJOURNED AT 8:15 P.M.
HRA Chair
Ollie Koropchak, Recorder
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HRA Agenda - 03/01106
5.
Consideration to authorize enterinl! into a Preliminary Development Al!reement with
Karlsburl!er Foods. Inc. and to authorize oreparation of olat.
A. Reference and backl!round:
This agenda item assumes that Karlsburger Foods, Inc. has executed the Preliminary
Development Agreement and deposited the $10,000. A proposal from the city was prepared
and sent to Karlsburger on September 21, 2005, based upon the completion of the customer
worksheet, job and wage-level forms, and a visit to the existing facility in Dayton, MN. John
Simola, Paul Kleinwachter, and myself visited the company in August. City staff and its
consultants have worked with the company and their general contractor and architect to
accommodate both their request for 2 acres and L-shaped building design and to ensure
accessible and marketable remaining lots for the city. It appears we have reached an
agreement for a 2.5 acres parcel in the westerly part of Otter Creek Crossing to the south of
Chelsea Road.
For your information, at the February 27th Council meeting, the council members are being
asked to abandon the proposed realignment of Chelsea Road along Otter Creek allowing the
company to utilize 40 feet of the 80 feet proposed right-of-way. Within the City's proposed
Transportation Plan, School Blvd is now planned to go through the YMCA property for a more
direct route to the proposed Heritage project. This eliminates the need for the proposed
realigned Chelsea Road. School Blvd, at a point in the Monticello Business Center and south,
will be re-named Dalton Avenue and intersect with School Blvd to the south.
In working out the site, WSB notes we can realign the pond maximizing the remaining sites and
the grade levels to the west can be reduced allowing lot accessibility via the Haul Road. Upon
receiving process-water samples, John Simola determined the company presents little or no
impact to the waste water treatment plant.
Karlsburger plans to construct a 20,000 sq ft building and employ 20 people, 16 out of the
Monticello facility, at a combined average wage-level of$21.37 per hour without benefits. The
proposed cost of the land to Karlsburger is $1.00 per sq ft for 2 acres and $2.65 per sq ft for
.5 acre.
Given the time to prepare and record the final plat and assuming no title issues, a March 1"
authorization would allow construction to commence at the earliest, May 1, 2006.
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HRA Agenda - 03101/06
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B. Alternative Action:
1. A motion to approve the Preliminary Development Agreement between the HRA and
Karlsburger Foods, Inc. with deposit of $] 0,000 and authorize preparation of a plat.
2. A motion to deny approval of the Preliminary Development Agreement between the
HRA and Karlsburger Foods, Inc.
3. A motion to table any action.
C. Recommendation:
Assuming Karlsburger Foods has executed and delivered the deposit, the recommendation is
alternative no. ].
D. Supportifil! Data:
Copy of prel~ agreement, proposed site, job/wage-level form, and worksheet.
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12450 Fernbrook lane
Dayton, MN 55327
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DEVELOPMENT SERVICES
Phone: (763) 271-3208
Fax: (763) 295-4404
EmaiJ: ollie.koroochak(wci.rnollticeUo.mn.us
Economic Development Director
MONTlCELW
CITY OF MONTICELLO, MINNESOTA
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JOB AND WAGE LEVEL - EXISTING JOBS
II
Please indicate number of current permanent employees at each level and indicate the corresponding benefit level.
Number of Jobs
Hourlv Wage
Leve]
Hourlv Value
of Voluntary
Benefits IS)
Full-time
Part-time
(Excl. benefits)
Less than $7.00
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$7.00 to $7.99
$8.00 to $9.99
$10.00to$ll.99
$12.00 to $13.99
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$14.00to$15.99
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$]6.00 to $]7.99
$18.00 to $]9.99
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$20.00 to $21.99
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$22.00 and higher
JOBSWAGEEXISTINGFORM
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Monticello City Hall, 505 Walnut Street. Suite 1, Monticello, MN 55362.8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295.3170' Fax: (763) 271.3272
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KARLSBURGER FOODS. INC.
12450 Fernbrook lane
Dayton, MN 55327
DEVELOPMENT SERVICES
Phone: (763) 271-3208
Fax: (763) 295-4404
Email ; ollie.koTopchak:~@ci.monticello.mn.lls
Economic Development Director
MONTICELLO
CITY OF MONTICELLO, MINNESOTA
II
JOB AND WAGE LEVEL GOALS - NEW JOBS
Please indicate number of additional employees at each level and indicate the corresponding benefit level. Number of
new permanent jobs anticipated to be created over the first two years of relocation or expansion.
Job Creation
Hourlv Wage
Level
Hourlv Value
of Vol un tar v
Benefits IS)
Full-time
Part-time
(Excl. benetits)
Less than $7.00
.
$7.00 to $7.99
$8.00 to $9.99
$10.00 to $11.99
$12.00 to $]3.99
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$] 4.00 to $ J 5.99
la;;t qoo
$16.0010$]7.99
$18.00 to $] 9.99
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$20.00 to $21.99
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$22.00 and higher
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Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831' (763) 295-27] 1. Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd" Monticello, MN 55362' (763) 295-3170' Fax: (763) 271-3272
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Economic Development Services
Phone:
Fax:
E-mail:
ICARlSBURGER FOODS Wr.
12450 Fernbrooi< L~n~ ''''.
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(763) 271-3208
(763) 295-4404
0]] ie. koropchak@ci.monticello.us
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DEVELOPMENT SERVICES
MONTICEllO
Return to City of MonticelJo, Office of Economic Development
505 Walnut Street, Suite I, Monticello, MN 55362
MONTICELLO CUSTOMER REQUIREMENT WORKSHEET
Name of Company: KfI,rb ~"}V ~l<>d..
Address:
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Phone: 7&3 tl21 :;'f'J I
Fax 7(, -3 3 C3 17</5-
Email ;rJ;ii-@~U;.;3v:-,;rJl ,Ce.,.,.
Contact person:
(VI.\lte- MA I-I.u- / Pllvl CSC-.t:p,n
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Title:
Nature ofthc business: M A""\i ~,,-,---J.-\h't-
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Number of existing jobs and wage levels to be retained: Complete attached.
Number of workers per shift: It..
Number of new jobs and wage levels to be created: Complete attached.
Expansion:
Relocation: ---'2{ If relocation, from where: D"'1..J.o,v mill
Proposed size of new facility:
dO. 000
.
Office sq. Ii.: -?, '000 Manufacturing sq, f1.: ",[;Ol) Warehousing sq. ft.:
ii, 000
Proposed exterior material:
Cunt..WI-
Acreage requested:
.::J AcrFS
Zoning: II
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jght Industrial/ usiness Campus
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Monticello City Hall, 505 Walnnt Street, Suite I, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd.. Monticello, MN 55362 . (763) 295-3170' Fax: (763) 271-3272
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Customer Requirement Worksheet - Page 2
Timetable for occupancy:_1
Ye-<....A-
Wet industry:
?
Potential Environmental Impact:
7
Anticipated consumption of water?
KARlSBURGER Foe."S, me.
12450 Fernbrook l. '3
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Dry industry:
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Special needs within Facility:
Overhead Doors y.
Clean Area
Utilities
Other
Outdoor/open storage requirements?
NIp,.
YES
Are you looking at other communities?
Garage Doors )Ie
Paint Area
Public Improvements
(t\~\'-vlLk, B;e, UtI4../ uiUjk
How can we assist you? ~u\Q r,.",j F.N_Nt""'-'- oph"",
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How did you select Monticello as a possible site location? tfl~ 11oCc.:bdTl
What are you looking for from the community?
Age of company? 50 Y<"'ifHistory of Company? (;(j,.JjJ.. I".J iu{, - s-I-<tl r:nffh ~ OWlJe)
/VlJW i?y w/vJ ColVlftMV-J
How do you market your product? ~ Di-.,b.iln.,t;;
What is your market area?-.11hlLJE<;f-
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Expected company growth in five years?
Expected company growth in ten years?
Name & address of architect and general contractor?
Can we visit your existing site?
y€~
Set Date:
Level of Confidentiality Required? Y/t..A..
fvlisc/(:USlOl1ler n:quircmcnt.2004
Will
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COMMERCIAL TESTING LABORATOR'l~INC. . / ... . .dl1~
514 Main Street, P.O. Box 526 ,,:/r;(?
Co~ax, Wisconsin 54730 . '117
715-962-3121 _ 800-962.5227 ..,4./ V
..715-962.4030 ifF
W8 SITE: www.ctlcolfax.com
ANAI.YTICAI. REPORT
Paul st..vens
Karlsburger FOQd~. Inc.
1245111 Fernhrook Lane
Dayton MN 553P.7
S..mpl<'
Number
SaMph ID
Test
--------- --------------- ------------------------- ----------- --------- --------- --------
10/20/05
10/21105
Report NUlIlhl!r:
Report Date:
Pate Received:
Results
Method
05-W2S143 Karl~burger
Foods
10/19/05
BOD (5 Day), 1111/1. 1,600
Tot.Suspended SolidS,_g/L 886
SM5210B
SM2540D
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WI DNR LahoratDry CertificatiDn Number: 617013980
,,) /!0 39\1d
saoo~ ~39~ngSl~\I~
ApP1"lJved by: \\
Sl>LIE2:EE9L
0511121\245
10/25/05
10/20/05
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Page: 1
Date
LOD/LOG Analyzed
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BRA Agenda - 03/01106
6.
Consideration to aDDrove a resolution reDuestin!! the city council call for a Dublic
hearin!! for establishment ofTIF District No. 1-37. an Economic District.
A. Reference and back!!round:
The HRA is asked to approve a resolution requesting the city council to call for a public
hearing date of April 24, 2006, for establishment of the TIP Plan for TIP District No. 1-37
and modification of the Redevelopment Plan for Central Monticello Redevelopment
Project No. 1. This will allow time for Ehlers to prepare and distribute the TIP Plan to
the county and hospital districts satisfYing the 30-day notice for comments. The Council
will actually call for the public hearing via a resolution on March 13, 2006. This will be
an Economic District with a life duration of eight years after receipt of first increment.
A description of the proposed project was provided in the previous agenda item.
B. Alternative Action:
1.
A motion to approve a resolution requesting the City Council of the City of
Monticello call for a public hearing on a modification to the Redevelopment Plan
for Central Monticello Redevelopment Project No.1 and the establishment of a
TIP Plan for TIP District No. 1-37 (an Economic District) therein and the
adoption of a TIP Plan therefor.
2. A motion to deny approval of a resolution requesting the City Council ofthe City
of Monticello call for a public hearing .............................................
3. A motion to table any action.
C. Recommendation:
Assuming the execution of the Preliminary Agreement and receipt of deposit, the
proposed project will assist with land costs associated with the construction of a food
production facility. Recommendation is alternative no. 1.
D. SUDDortin!! Data:
Schedule of events and resolution for adoption.
1
SCHEDULE OF EVENTS
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-37
(an economic development district)
.
March 1,2006
March 3, 2006
March 13,2006
March 23, 2006
.
March 24, 2006
April 4, 2006
April 5, 2006
April 10, 2006
April 13, 2006
April 24, 2006
,2006
,2006
AND THE AWARDING OF A BUSINESS SUBSIDY
HRA requests that the City Council call for a public hearing on the proposed Modification to the
Redevelopment Plan for Central Monticello Redevelopment Project No. I and the proposed
establishment of Tax Increment Financing District No. 1-37.
HRA calls for public hearing on Business Subsidy Agreement.
Project information (property identification numbers and legal descriptions, detailed project
description, maps, but/for statement, list of sources and uses of funds, and estimated fiscal impacts of
the project public improvements and on fire and police protection) for drafting necessary
documentation sent to Ehlers & Associates. Ehlers & Associates confirms with the City whether
building permits have been issued on the property to be included in TIF District No. ] -37.
City Council calls for public hearing on the proposed Modification to the Redevelopment Plan for
Central Monticello Redevelopment Project No. I and the proposed establishment of Tax Increment
Financing District No. 1-37.
Date of publication ofHRA hearing notice for granting a business subsidy (at least 10 days but not
more than 30 days prior to hearing). [Monticello Times publication deadline, March 20, 2006 ~
Ehlers & Associates will e-mail notice to newspaper by March 17, 2006.]
Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days
prior to public hearing). [Ehlers & Associates will fax & mail on March 22, 2006.]
Planning Commission reviews Plans.
HRA considers the Plans, adopts a resolution approving the Plans.
HRA holds public hearing at 6:00 P.M. on Business Subsidy Agreement with Karlsburger Foods, Inc.
and approves Development Agreement with Karlsburger Foods, Inc.
Ehlers & Associates conducts internal review of Plans.
Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to
hearing). [Monticello Times publication deaaline, April 10, 2006 - Ehlers & Associates to submit
notice and map to newspaper via email by April 7, 2006.]
City Council holds public hearing at 7:00 P.M. on a Modification to the Redevelopment Plan for
Central Monticello Redevelopment Project No. I and the establishment of Tax Increment Financing
District No. ].37 and passes resolution approving the Plans and awards a business subsidy. [Ehlers
& Associates to email Council packet iriformation to the City by April 17, 2006.}
City authorizes Ehlers to request certification of the TIF District.
Ehlers & Associates files Plans with the MN Department of Revenue and the Office of the State
Auditor, and requests certification of the TIF DistrIct with Wright County.
** The C!Junty Boar~, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board
could claIm that tax Increment should be used for county roads.
An action under subdivision I, paragraph (a), contesting the validity ofa detennination by an authority under section 469_175, subdivision 3, must be
.ommenced within the later of:
. I) 180 days after the municipality's approval under section 469.175, subdivision 3; or
(2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177. subdivisionl.
.
EHLERS
& ASSOCIATES INC
.
.
.
DISTRIBUTION LIST
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-37
(an economic development district)
CITY:
DEVELOPMENT
COUNSEL:
DEVELOPMENT
ADVISOR:
Ollie Koropchak
City of Monticello
505 Walnut Street, Suite 1
Monticello, MN 55362-8831
763-271-3208 Direct
763-295-2711 Main Phone
763-295-4404 Fax
ollie.koropchakial,ci.monticello.mn.us
www.ci.monticello.mn.us
Steve Bubul
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-1458
612-337-9228 Phone
612-337-9310 Fax
sbubul@kennedv-graven.com
Martha Ingram
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-1458
mingramial,kennedv-graven.com
Todd Hagen
thagen@ehlers-inc.com
651-697-8508 Phone
Nikki Shannon
nshannonial,eh lers- inc .com
651-697-8518 Phone
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651-697-8555 Fax
. I ~.~t~,~,~,!:!
.
.
.
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF MONTICELLO CALL
FOR A PUBLIC HEARING ON A MODIFICATION TO THE REDEVELOPMENT PLAN FOR
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND THE
ESTABLISHMENT OF A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-37 (AN ECONOMIC DEVELOPMENT DISTRICT) THEREIN
AND THE ADOPTION OF A TAX INCRMENT FINANACING PLAN THEREFOR.
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Monticello Housing and
Redevelopment Authority (the "HRA") as follows:
WHEREAS, the City Council (the "Council") of the City of Monticello, Minnesota (the "City") established
Central Monticello Redevelopment Project No. ] pursuant to Minnesota Statutes, Minnesota Statutes, Sections
469.174 through 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of
certain designated areas within the City; and
WHEREAS, the HRA is proposing a Modification to the Redevelopment Plan for Central Monticello
Redevelopment Project No. I and the establishment of a Tax Increment Financing Plan for Tax Increment
Financing District No. 1-37 therein and the adoption of a Tax Increment Financing Plan therefor, all pursuant to,
and in accordance with, Minnesota Statutes, Sections 469.174 through 469.1799 and Sections 469.001 to 469.047,
inclusive, as amended;
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
I. The HRA hereby requests that the Council call for a public hearing on April 24, 2006, to consider the proposed
adoption of a Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. I
(the "Redevelopment Plan Modification") and the proposed adoption of the Tax Increment Financing Plan (the
"TIF Plan") for Tax Increment Financing District No. 1-37, an economic development district, (the
Redevelopment Plan and the TIP Plan are referred to collectively herein as the "Plans") and cause notice of
said public hearing to be given as required by law.
2. The HRA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the
City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in
accordance with the Comprehensive Plan of the City, prior to the date of the public hearing.
3. The Executive Director of the HRA is hereby directed to submit a copy of the Plans to the Council for its
approval.
4. The HRA directs the Executive Director to transmit the Plans to the county and the school district(s) in which
Tax Increment Financing District No. 1-37 is located not later than March 24, 2006.
5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related
documents and to undertake other actions necessary to bring the Plan before the Council.
Approved by the Board on March 1,2006.
ATTEST:
Chair
.
.
.
HRA Agenda - 03/01/06
7.
Consideration to aDD rove a resolution callin!! for a DubHc hearin!! on the DroDosed
awardin!! of business subsidv to Karlsbur!!er Foods. Inc.
A. Reference and back!!round:
In order to meet the statutory requirement, the HRA must hold a public hearing when a subsidy
is given to a business. The creation ofTIF District No. 1-37 will assist in land and development
costs to Karlsburger Foods, Inc. through the wTite-down ofland cost from $2.65 per square
foot to $1. 00 per square foot.
Within the resolution, the BRA is calling for a public hearing date of April 5. 2006.
B. Alternative Action:
I. A motion to approve a resolution calling for a public hearing on the proposed awarding
of business subsidy to Karlsburger Foods, Inc.
2. A motion to deny approval of a resolution calling for a public on the proposed awarding
of business subsidy to Karlsburger Foods, Inc.
3. A motion to table any action.
c.
Recommendation:
Recommendation is alternative no. I.
D. SUDDortin!! Data:
Copy of resolution for adoption.
.
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION CALLING FOR A PUBLIC HEARING ON THE PROPOSED
AWARDING OF BUSINESS SUBSIDY TO KARLSBURGER FOODS, INC.
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Monticello Housing and
Redevelopment Authority (the "BRA") as follows:
WHEREAS, Minnesota Statutes, Sections I 16J.993 to 116J.995 (the "Business Subsidy Act" or
"Act") was adopted in 1999 and governs the granting of business subsidies by units of government; and
WHEREAS, the HRA is a grantor within the meaning ofthe Act; and
WHEREAS, a grantor is required to adopt a policy and a set of criteria for awarding business
subsidies only after a public hearing and prior to awarding any individual subsidy; and
WHEREAS, a grantor must also hold a public hearing before awarding any individual business
subsidy if the subsidy will exceed $100,000.
. NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The HRA shall meet on April 5, 2006 at approximately 6:00 P.M., to a hold public hearing to
consider awarding a business subsidy to Karlsburger Foods, Inc.; and
2. Staff and consultants are authorized and directed to take all steps necessary to prepare the business
subsidy agreement and related documents.
3. Staff and consultants are authorized and directed to cause notice of the hearing to be published at
least once in the official newspaper of the City not later than 10 days prior to April 5, 2006, and to
place a copy of the proposed business subsidy agreement on file and to make such copy available for
inspection by the public.
Approved by the Board on March 1,2006.
Chair
ATTEST:
.
..
..
..
HRA Agenda - 03/01106
8.
Consideration to hear follow-uo on revisions to the Transformation Home Loan
Prol!ram.
This is an update on the progress to revise the Transformation Home Loan Program criteria as
amended by the commissioners in February. Attached is the marketing piece which includes
the amendments: Reduction oftotal remodel cost from $50,000 to $30,000, increasing the
portion of the loan percentage from 20% to 25%, loan forgiveness reduced from 7 years to 5
years, and assessed market value increased from $150,000 to $175,000. A couple of other
additions added were identifying the ice arena on the map, with another 116 units proposed for
2006 (inside folder, right-hand side), 2006 to front page. Design for Print is in the process of
printing the brochure for mailing. We have identified 244 single-family, owner-occupied homes
within the core area. These will be in the mail the week of February 27, 2006.
Another suggestion is to mail about 10 brochures to each local lender and real estate agency
with an attached cover letter of explanation. I assume you agree.
I
.
--
..
9.
Consideration to authorize payment ofHRA bills.
Recommendation is authorize payment of bills.
1
HRA Agenda - 03/01/06
,~
-
Project: General
Date Worked k Description of Services
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- -----,-------,---- ---.~~------
I Amount Due This Invoice
(Detach at perforation and return lower portion to Ehlers & Associates, Inc.)
Monticello Housing And Redevelopment Authority
! Amount Due This Invoice
I
I.
Please remit payment to: Ehlers & Associates, Inc.
Attn: Accounts Receivable
3060 Centre Pointe Drive
Roseville, MN 55113
Hours
Amount
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42.25 $6,353.75
$6,353.75
Invoice #:
Invoice Date:
332254
February 10, 2006
I
$6,353.75 i
Due Upon Receipt
-
Ehlers & Associates, Inc.
Leaders in Public Finance
3060 Centre Pointe Drive
Roseville, MN 55113
(651) 697-8500
Financial Advisory Services Invoice
~
<; e. {...-..-d ~O- ~
Monticello Housing And Redevelopment Authority
505 Walnut Street, Suite 1
Monticello, MN 55362-8822
Invoice #:
Invoice Date:
332254
February 10,2006
Project: General
Date Worked ..fuL Descriotion of Services Hours Amount
01-03-2006 NM Updated TIF Plan .50 62.50 -
- 01-10-2006 ED Prepared: TIF Financial Plan 2.75 412.50
01-10-2006 SJE locate prior TiF Pians, review 1-6 modification 2.00 350.00
01-11-2006 NM Finalized Fiscal implications letter, Updated and sent 1.00 155.00 -
out TIF Plan
-- ..... 01-12-2006 ED Prepared: TIF Financial Plan 4.50 675.00
~ 01-16-2006 ED Prepared: TIF Financial Plan 7.25 1,087.50
- 01-17-2006 ED Prepared: TIF Financial Plan 2.75 412.50
- 01-18-2006 ED Prepared: TIF Financial Plan 6.00 900.00
- 01-19-2006 ED Prepared: TIF Financial Plan 3.75 562.50
01-19-2006 NM Prepared and sent out HRA Adopting Resolution for TIF 1-6 1.00 155.00 _
Mod.
- 01-20-2006 ED Prepared: TIF Financial Plan 2.25 337.50
- 01-23-2006 ED Prepared: TIF Financial Plan 4.00 600.00
01-23-2006 NM Began drafting the City Council Adopting Resolution .75 93.75 -
-01-25-2006 ED Prepared: TIF Financial Pian 3.25 487.50
01-27-2006 NM Updated City Council Resolution for TIF 1-6 Modification .50 62.50 -
Ie
.
--
III
HRA Agenda - 03/01/06
10.
Consideration of HRA Executive ReDort.
a) Rocky Mtn Group, Inc. - Attached is a copy of the letter mailed to Mr. Dahlheimer. It is my
understanding, the business relocated to the new facility along Chelsea Road over the weekend
of February 18 and 19th. At this point, I have not heard or received payment of the
administrative costs shortfall.
b) Master's Fifth Avenue, Inc. - Attached is a copy of the $20,000 check to Master's Fifth
A venue for reimbursement of costs associated with the removal and redevelopment of the
Koppy garage.
c) Landmark Square I - A point of information. In the area of Landmark Square I leased by
Coldwell Bankers, the ceiling fell-in causing the business to relocate. I believe it was due to a
leaky pipe. Also, the exterior siding on the carriage house is in need of repair. There is a
section in the Redevelopment Contract which addresses maintaining TIF assisted property.
d) Fiber Optics - Attached is a copy of an article which appeared by the Star Tribune on
February 20. John from UMC serves on the city's fiber optic committee and Milda serves as
consultant. According to Cathy, sixteen RFPs were received and the review committee is
currently setting up their time schedule for review and selection. A recommendation is planned
to be forward to Council either late March or early April.
e) A VR - Negotiation and litigation continues. A closed Council meeting is scheduled for
February 27.
1) March 31 - Rick Wolfsteller, Cathy Shuman, Liz Diaz and Mark Ruff of Ehlers, and myself
are scheduled to meet March 31 to follow-up on the recommendations by Ehlers within the TIF
Management Review and Analysis.
g) The HRA annual meeting is April 5 which means election of officers, 2005 TIF Report, and
it was my recommendation to Ehlers that we start the process for modifying the TIF Plans of
TIF Nos. 1-2 and 1-20 in order to complete the modification by late June, early July.
h) Mixed-Use Development - Jeff O'Neill and I will attend a morning seminar on mixed-use
development on March I at the invitation of Steve Mosberg. I'll pay my way to keep out of
trouble.
i) Comprehensive Plan update - The RFPs for hiring a consultant to update the Comprehensive
Plan is out and Jeff O'Neill held a question/answer meeting with interested firms on February
21. The RFPs are due March 9 with the selection date targeted for late March/early April.
j) Marketing Committee - The committee met on February 7 - recommendations were to
continue the classified ad in the Star Tribune through spring, design and install a large sign at
entrance point of Chelsea Road and 90th Street marketing the business center (working with
Randy), design a three-fold brochure for mailing, and design one-half page ad for Directory of
the Wright County Economic Development Partnership. The city is entitled to two pages of
information at no cost. The directory dead-line is March 1 so Lynn and I are working on the
ad first, along with the HRA brochure. The Star ad continues to run.
1
HRA Agenda - 03/01/06
.
k) Vacation - I'll be out of the office starting March 13 and back March 29.
1) Leads - It appears the larger user represented by United Properties continues to look at
Monticello and other communities. They have asked for assessments for a 20-acre parcel. This
a national freight company.
_ 125,000-150,000 sq ft for German company - 2/17 Agent met with company and gave
information, expects to hear in two weeks.
_ 400,000 sq ft office/warehouse - 2/17 Keep leaving messages with agent, no return calls.
_ 150,000-200,000 sq ft distribution. Company decided to continue leasing at current location.
_ 10,000 sq ft steel building to park large equipment outside. Doesn't fit covenants. Wright
County Partnership.
_ 10,000 sq ft user from Albertville. Mailed proposal February 10, out of town until February
17. Looking at 2006 project. I need to schedule follow-up meeting.
m) Transformation Home Loan Program - Jackie Petersen just stepped by about their
approved grant/loan and indicated the improvement costs exceeded the estimated cost of
$75,000. I believe the motion did not include an amount but was subject to final costs and
evidence. Maximum loan amount is $20,000. They expect to close with the lender in a month.
Will bring information required by March 1 so may confirm the grant amount with the
commissioners. Final inspection by the building has been completed. CONFIRMATION
MAY BE REQUIRED.
n) Chamber request - Susie asked if the city would be interested in splitting the cost for some
updated demographic information. Estimated cost $1,000. See attached. Or this is for the
Marketing Committee or the Council? ACTION MAY BE REQUIRED.
0) Hospital Strategic Planning session - Rick and I attended a four and one-half hour planning
session for the Monticello-Big Lake Hospital on February 22. It was well attended with about
60 elected officers, health care professionals, and community leaders. We looked at retail
patterns of Monticello shoppers today and in 2020, as retail shoppers and primary care patient
trends are compatible. Combining this with health care changes of the future;
recommendations were made in the area of hospital care, nursing home care, and physicians
care. It was led by Dr. Jim Rice.
p) Note of thanks from Mark Rufffor participation in panel discussion at the Ehlers Conference
the early part of February.
q) As part of the BRE program, the IDC toured Bondhus Corporation on February 17. A
photo-booklet will be assembled and mailed to them.
.
2
~
.
.
J
\e()..~
February 17,2006
MONTICELLO
Mr. Gregory Dahlheimer
Rocky Mtn Group, LLC
P. O. Box 336
Monticello, MN 55362
Re: Certificate of Completion and Administrative Costs Shortfall.
Dear Mr. Dahlheimer:
This letter addresses two sections of the Purchase and Redevelopment Contract dated September 2,2005, between
the Housing and Redevelopment Authority (HRA) in and for the City ofMontice[[o and Rocky rvIto Group, LLC.
Per the Contract, ARTICLE IV, the Redeveloper mllst substantially complete construction of the minimum
improvements by May 31, 2006, and the construction of the minimum improvements shall be deemed to be
substantially completed when the Redeveloper has received a certificate of occupancy issued by the City of
Monticello for the minimum improvements. The Building Department issued a certificate of occupancy on January
23,2006. Although the Certificate of Completion is issued in accordance with the Contract, please note that the
landscaping, irrigation system and some site work have not been completed per the approved Plans and the Otter
Creek Declaration of Covenants. This is recognized as an unavoidable delay - seasonal construction period. The
original Certificate of Completion is being recorded at the Office of the Recorder of Wright County by Kennedy &
Graven.
Secondly, per the Contract, Section 3.9, the Redeveloper is obligated to pay such administrative costs shortfall
within 15 days after receipt of a written notice from the Authority containing evidence of unpaid costs. Attached are
copies of invoices from Ehlers & Associates and Kennedy & Graven and a summary of the administrative costs.
Please note the application of the $1 0,000 deposit and the subtraction of legal fees associated with title issues.
Therefore as of February] 5, 2006, the administrative cost shortfall is $7,580.76. Please remit this amount to the
Monticello Housing and Redevelopment Authority, 505 Walnut Street, Suite I, Monticel!o, MN 55362.
The l-IRA is proud to have the business of Dahlheimer's Distribution remain and grow in the City of Monticello.
Congratulations on your new facility. Should you have any questions, please do not hesitate to call me at 763-271-
3208.
With regards,
HOUSfNG AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
U~~~tf\~-D~
011 ie Koropchak
Executive Director
Attachments
c:
TIF DistrictNo. 1-36 File
Mayor Clint Herbst
/
Monticello City Hall, 505 Walnut Street, Suite I, Monticelln, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticellu, MN 55362. (763) 295-3170. Fax: (763) 271-3272
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Page 1 of 1
Ollie Koropchak
Ie n:)
From: monticello chamber [monticellochamber@tds.net]
Sent: Wednesday, February 15, 20062:17 PM
To: Ollie Koropchak
Subject: RE: Susie Chamber
Ollie - ESRI is a private demographic company. We can get many studies out of the website - such as race,
housing, ages, etc. This is updated from the Census bureau. Last time Chamber purchased all by themselves.
You can go to www.esribis.com online to see what it is about, and find out everything that you need to know
about this service.
-----Original Message---d
From: Ollie Koropchak [mailto:Ollie,Koropchak@cLmonticello.mn.us]
Sent: Wednesday, February 15, 2006 2:05 PM
To: monticello chamber
Subject: RE: Susie Chamber
Must be getting old, can't remember that. What does ESRI stand for? Is this information updated
annually rather than census data? Do you remember if City or HRA split cost? Need little more info then
will proceed. Ollie
From: monticello chamber [mailto:monticellochamber@tds.net]
Sent: Wednesday, February 15, 2006 1:34 PM
To: Ollie Koropchak
Subject: Susie Chamber
Remember when the Chamber bought the demographic website rights for one year Was a couple of
years ago. It costs around $1000. Would the city be willing to split costs on a package. It is very
comprehensive from ESRI. Thanks Susie
2/15/2006
.
.
.
ESRI Business Information Solutions - Welcome
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"Bridging the Gap in Development Philosophies"
Transportation Improvements & Highway Development Plans
for Wright County
.
.
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t'f,: '---
Topics: Transportation improvemen!$/&
Highway development plans for Wright~ounty
:i;./} ~,
;c',};'i J:fl
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Speakers: Terry Humbert & Craig Robinso'1.;'MNDOT Di$~. 3
and Wayne Fingalson, Cour:ttJ Engineer .'
/f/;J
Date: March 8, 2006
Time: 11 :30 - 1 :30
Location: SUver Springs Golf Course, Monticello
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PleaseiR5VP by March 6, 2
;:0'<,
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Contact:
Jeanene Strum atjstrum@whe.org or 763-477-3000 ext. 3470
.
Mail Payment to: Wright County EDP
PO BOX 525
Rockford, MN 55373
or fax (763) 477 -3054
Please RSVP by April 7, 200
"Bridging the Gap in Development Philosophies"
Industrial Park Development - What to expect for Wright County
.
Sponsored by ~
Date: April 12, 2006
Time: 11 :30 - 1 :30 pm
Location: Russell's of Course, St. Michael
Topic: Industrial Park Development in Minnesota
& the 2006 Northwest Corridor Market Overview
Speakers: Whitney Peyton, CB Richard Ellis
Daniel Swartz, CB Richard Ellis
Matt Oelschlager, CB Richard Ellis
.
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Mail Payment to: Wright County EDP
PO BOX 525
Rockford, MN 55373
or fax (763) 477 -3054