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EDA Agenda 08-21-2001 . . . AGENDA MONTICELLO F.CONOMIC DEVI(LOPMF.NT AlJTHORITY Tuesday, August 21,2001 - 4:00 p.m. City Hall - 505 Walnut Street - Academy Room MEMBERS: Chair Rill Oemeules, Vice Chair Barb Schwientek, Assist Treasurcr Ken Maus, Clint Ilerbst, Roger Carlson, Ron Hoglund, and Darrin Lahr. ST AFF: Treasurcr Rick Wolfsteller, Exccutive Director Ollie Koropchak, Rccorder Lori Kraemer. GUESTS: Steve Grittman, Northwest Associated Consultants DA T Chair Pam Campbell I. Call to order. 2. Consideration to approve the July 19,2001 EDA n1inutes. 3. Considcration or adding or rcmoving agenda items. 4. Consideration to hear of the interest of Block 35 propcrty owncrs for revitalization of rear-parking entry area as prcsented by Consultant Grittman and authorization to move forward. 5. Consideration of Exccutive Director's Report. 6. Othcr Business. 7. Adjournment. . . . MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Thursday, .July 19,2001 - 4:00 p.m. City Hall - 505 Walnut Street Members Present: Chair Bill Demeules, Vice Chair Barb Schwientek, Assist Treasurer Ken Maus, Clint Herbst, Ron Hoglund and Darrin Lahr. Members Absent: Roger Carlson Staff Present: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Lori Kraemer. Guests: Steve Grittman, Northwest Associated Consultants Pat Jensen, EDMA Company Bruce Hamond Pam Campbell, DA T Chair 1. Call to order. Chair Demeules called the meeting to order at 4 pm. 2. Consideration to approve the June 19.2001 EDA minutes. Ron Hoglund stated that there was an error in item 5 of the minutes, the address listed should state 207 Pine Street. A MOTION WAS MADE BY RON HOGLUND AND SECONDED BY CLINT HERBST TO APPROVE THE MINUTES OF THE JUNE 19, 2001 EDA MEETING WITH THE CORRECTION AS NOTED. Motion carried unanimously. 3. Consideration of adding or removing agenda items. None 4. Consideration to hear results of meeting between Block 35 property owners as presented bv Consultant Grittman and consideration to authorize DMRF funding. Ollie Koropchak. Executive Director. advised that at the June EDA meeting. Consultant Grittman presented two design concepts for the rear of the buildings on Block 35. the objective being to create uniform parking and common trash areas. The EDA suggested a third option: a rear plaza concept. The EDA to evaluate the potential to participate with the funding subject to cost estimates and willingness of property owners. Grittman was directed to meet with property owners. prepare cost estimates. and report back to the EDA Minutes ~ 07/19101 . EDA and DA T was invited for input. Steve Grittman reported on his meeting with two of the business owners, Al Loch and Marn Flicker. and presented their concept to the EDA. Steve provided drawings for review as well as estimates provided by WSB showing two possible alternatives. Grittman stated the difference was adding in concrete sidewalk and curb/gutters or paint existing pavement and use curb stops. Grittman stated the difference in cost would be about $25,000. Grittman added that Loch and Flicker expressed a concern regarding drainage and a general doubt that if this was a feasible project. Grittman discussed their concept of having remote dumpster locations in the existing parking lot and leave the linear parking showing the layout they provided which would be essentially the same as the option Grittman had presented. He noted the problem with having the dumpsters located in the City parking lot would be that they are somewhat remote, and Flicker had stated they have semi trailers backing into that area as well which may make access dit11cult. Grittman stated he felt comfortable that the business owners liked the design. Koropchak asked if the other business owners had stated an interest and Grittman stated that according to both Flicker and Loch, they felt the others were interested and it was more of a scheduling conflict that kept them from attending their meeting. . Barb Schwientek stated a concern with Dominos and if they would be willing to use the dumpsters as well. Grittman also added that the City wanted the businesses to be part of an agreement, didn't think the common dumpsters would work but separate containers within the enclosure would work. Pam CampbelL DA T, asked if they mentioned dumpsters in the City parking lot as she stated she thought the City's parking lot was not rated to handle that size vehicle which Grittman concurred. Regarding snowplowing concerns, it was stated that the EDA would be helping the businesses improve their sites with the idea that the businesses would still maintain them. Schwientek asked if an agreement could be drafted based on what was presented and get together with the owners to get a consensus of agreement. Bruce Hammond stated that the same type of concept was being done between Locust/Walnut, the businesses got together and reviewed some concepts and the owners signed off on a letter of intent. the idea being there is preliminary approval of the owners on that block for moving ahead on the concept. then coming back to owners with ideas and costs. Grittman asked about the feelings of the EDA toward the concept presented by the businesses and his concept of combined. head in parking. They stated they liked it. but . 2 . . . EDA Minutes - 07/19/01 would like to move the dumpsters avvay from the parking. Regarding the concrete and curb, the businesses felt that the grade is slight and would not be possible to create a raised sidewalk as this may create a drainage problem. They suggested to possibly cut out the existing bituminous and put the concrete there, maintaining the grade. The EDA suggested to possibly incorporate a barrier such as a small fence and pots to differentiate the parking. Campbell asked about drainage coming off the roofs as well and what that may due to the design. Grittman stated the business owners were concerned about having landscaping too close to the building due to the run off from the roofs. but he stated the concept most likely accommodates that issue. A MOTION WAS MADE BY BARB SCHWIENTEK AND SECONDED BY RON HOGLUND TO AUTHORIZE STEVE GRITTMAN TO PREPARE A LETTER OF INTENT FROM THE EDA TO THE PROPERTY OWNERS THAT WOULD PRESENT THEM WITH THE CONCEPT PROPOSED BY GRITTMAN, LOCH AND FLICKER TO GET A COMMITMENT FROM THEM TO WORK WITH THE EDA FOR FUTURE IMPROVEMENTS WITH THE REALIZATION THAT 75% TO 100% OF THE COST WOULD MOST LIKEL Y BE PICKED UP BY THE EDA. GRITTMAN WAS ALSO ASKED TO MEET INDIVIDUALL Y WITH THE OWNERS WHO COULD NOT ATTEND A JOINT MEETING. Motion carried unanimously. 5. Consideration ofa request to amend terms of the Loan Agreement for DMRF Loan No. III between the EDA and VisCom, Inc. Koropchak advised that Bruce Hamond, VisCom. Inc., is requesting the EDA amend the terms of DMRF Loan No. 111 and also noted that on November 8, 2000, the DMRF non- performance date was extended from May 29, 2001 to August 29,2001. Koropchak attached the amortization schedule based on the loan agreement and a copy of the loan payment of June 22, 2001, and a note attached to the payment requesting the amount of the check be applied as interest only for June and July. The Finance Department suggested not accepting the payment until the terms of the agreement were reviewed by EDA. Mr. I-Iamond addressed the EDA and stated he would like to get away from writing a check every month for $115.78. .and would like the option to either pay one check for th~ year for interest (balloon in 3 years), at end of 3 years paying the balloon, or pay one check for interest in 6 months and the next check at the end of the year would be principle for the year. Has no problem paying the interest up-front. Hoglund questioned re-\vriting the amortization schedule. stating there would be additional interest. but Hammond did not think it was significant enough. The EDA ,., .J . . . EDA Minutes ~ 07/19/01 stated the loan agreement would have to be amended. Hamond asked if the loan agreement specified the payment of principle and interest but it was noted that the agreement stated only the way the loan is to be paid. Ken Maus stated his concern with additional attorney' s fees for drafting papers. Hamond stated he did not want to go through an amendment to the agreement, he would rather pay in advance for principle and interest. City Administrator Wolfsteller stated that would not be a problem as the loan agreement doesn't state that it can't be done. No action was necessary, Mr Hamond will make one payment for principle and interest annually. Koropchak also advised that Hamond is requesting an extension to September/October for the exterior of his project. The contractor will finish this project with another project in that area if that one is approved by the City. Koropchak asked if 6 months would be sufficient and Hammond stated that it was. A MOTION WAS MADE BY KEN MADS AND SECONDED BY RON HOGLUND TO EXTEND THE NON-PERFORMANCE DATE OF AUGUST 29, 2001 TO MAY 29,2002 FOR DMRF NO. III (MATCHING GRANT) BETWEEN THE EDA AND VISCOM, INC. Motion carried unanimously. 6. Consideration to review for discussion the preliminarv GMEF loan application for EDMA Companv. Pat Jensen, Applicant. Koropchak introduced Pat Jensen, the President and 51 % owner of EDMA Company. The company is six years old and leases space in Eden Prairie. The company is a small machine shop which does engineering, design, machining, and assembly. This business will occupy 5,000 sq ft of the proposed 10,000 sq ft metal building with rock front. The remaining 5,000 sq ft will house a new business specializing in maintenance of and leased indoor-storage of recreational trailers. The company requires no outside storage. The proposed builder is Unlimited Trades of Rogers, MN. Request is for a $30,000 real estate loan. The Prospect Team of Kevin Doty, Ron Hoglund, Brad Barger, and Koropchak visited the existing plant in June. The company has a Purchase Agreement with Carl and Eric Bondhus for a lA-acre parcel to the north of Lake Tool. The project will create 3 new jobs for the City of Monticello within two years. Koropchak worked with Mr. Jensen's lender as well who is working with SBA. The EDA advised Koropchak to add in the late payment policy for the attorney when he completes the loan agreement. No action was necessary. 4 . . . EDA Minutes - 07/19/01 L Consideration to approve or denv GMEF Loan No. 019 for EDMA Company. After review and discussion of the preliminary application from EDMA Company, the EDA was asked to consider approval or denial of the request for a $30,000 GMEF loan. The lender, Western Bank, has provided a copy of the Bank's commitment letter which is subject to SBA approval and other information. The City Council will consider ratification of the EDA' s action for compliance of the EDA-GMEF Business Subsidy Criteria on July 23, 200 I. If approved, the GMEF will be disbursed at the closing date yet to be determined. After the EDA reviewed the application it was found that the applicant meets all necessary criteria. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BARB SCHWIENTEK TO APPROVE GMEF LOAN NO. 019 FOR LLC DBA EDMA COMP ANY, IN THE AMOUNT OF $30,000, WITH THE TERMS OF 20 YEARS, 4.75% INTEREST, BALLOON IN 5 YEARS AND A LOAN FEE OF $200. COLLA TERAL, GUARANTEES AND OTHER CONDITION REQUIREMENTS TO BE DETERMINED AND PREPARED BY THE GMEF ATTORNEY. THE GMEF LOAN APPROVAL IS SUBJECT TO SBA APPROVAL AND COUNCIL RATIFICATION OF EDA ACTION. Motion carried unanimously. 8. Consideration of Executive Director's Reoort. Koropchak provided the report. Schwientek asked about the status of the Chamber building facade improvements and Koropchak stated that Drayna was very busy at this time had not begun the work. They were authorized to go ahead with the paint on the McCarty building as well. a. b. SchliefHouse - Closed on Contract for Deed on June 19,2001. TIF Dist. No. 1-12 (Aroplax) - Payment received on TfF loan with City. 225 Front Street - copy of appraisal for land only. Integrated Recycling Technologies ~ closed on the project at the 2151 Century Bank in Rogers on June 29, 2001. Red Wing Foods - Koropchak stated her understanding that the company has elected not to purchase the H- Window or Fay Mar building. EDMA Corporation - small machine shop in Eden Prairie has purchased agreement with Carl/Eric Bondhus for construction of a ] 0,000 sq. ft. building. 3 ne\>v johs to Monticello. Prospect team visited company. Production Stamping - is still holding ofT to see how economy is. International Cup - Lead from Ron Hoglund, referred to Fay Mar building for c. d. e. 1'. <1 O. h. 5 . . . 9. 10. EOA Minutes - 07/19/01 I. lease or sale. Company decided Monticello was too far out. Industrial Molded Rubber - Plymouth light rubber coating mfg. Lead from Xcel Energy. Decision on hold. Quick TIF 2000 is here so will begin working on that. Tax increment for first half of 200 I available but have questions of the county. Notification of Fay Mar MACA penalty - upon receiving TI, it may be beneficial to payoff debt and decertify district. Previous St. Henry's site - it appears the concept present by John Komarek is not materializing as Tom St. Hilaire is presenting a new concept to the Planning Commission. Marketing Committee meeting July 26 at 7:30 a.m. LEAD - 60,000 sq ft building - Olson General Contractors. Company is located in a community that may not re-zone property for this company to expand; if not they will have to look elsewhere. HRA - looking at increasing wages. Checking on other cities at this time. J. k. 1. m. n. o. p. Other Business. None Ad i ournment. A MOTION WAS MADE BY RON HOGLUND AND SECONDED BY CLINT HERBST TO ADJOURN THE MEETING AT 5:30 PM. Motion carried. Recorder 6 . . . EDA Agenda - 8/21/01 4. Consideration to hear of the interest of Block 35 propertv owners for revitalization of rear-parking entry areas as presented by Consultant Grittman and authorization to move forward. A. Reference and Backeround: At the July EDA meeting, the commissioners were presented with two options for revitalization of the rear-parking area of the northerly half of Block 35 including common trash containers. Mr. Grittman had Inet with AI Loch and Marn Flicker who voiced concerns about drainage problems from roof run-oft~ the trash containers in public parking lot appeared too br away for practical use, and did not care for the plaza concept and suggested painting the parking areas. As some commissioners did not favor painting the parking area, it was suggested Grittman research an alternative. Two cost estimates were presented: First, with no concrete sidewalk or curb - approximately $50,000. Secondly, with concrete sidewalk and curb - approximately $75,000. The EDA recomlnended Mr. Orittman meet with the property owners or tenants and the public works department for additional input and to obtain a commitment from property owners of interest to participate (to draft an agreement for participation and long-term maintenance.) Based on the owner's consensus, the EDA agreed to provide a letter of intent to work with the property owners [(11' revitalization of the rear-parking entry area of Block 35 including common trash containers. Additionally, the EDA offered financial assistance in the amoLlnt of 75% to 100% of the cost to develop. Mr. Grittman will report to the EDA of his second meeting with the property owners/tenants of 11l0ck 35. l1ased of those results, the FDA should be prepared to authorize moving fiJrward and to define the next steps such as design and site plans. Attached is the current balance of the DMRF. B. Alternative Action: I. A motion to authorize development of design and site plans for the revitalization of the northerly half of 810ck 52 including rear-parking entry area and common trash containers. 2. A motion to authorize other ................... 3. A motion to table any action. 4. Record - unable to obtain a consenSllS of interest to participate from property owners and/or tenants. F:DA Agenda - 8/21/01 . c. Recom mcndation: I f property owners are committed to enhancing the rear area of their property with the financial assistance of the EDA, the recommendation is alternative no. 1 or 2. D. Supportinl! Data: Current balance of the DMRF. . . 2 . . . MONTICELLO ECONOMIC DEVELOPMI<~NT AUTHORITY DOWNTOWN MONTICELLO REVITALIZA TION FUND August 17,2001 Fund Balance, December 31, 1997 $199,000.00 Revenues ^ppropriations TOTAL REVENU ES o $199,000.00 Expenditures DMRF 10L Kathy Froslie, 2-6-98 S-31-98 DMRF 102, Steve Johnson DMRF 103, Kathy Froslie, 2-6-98 DMRF 104, Rich Cline, 10-11-98 11-24-9S DMRF 105. ^' Loch, 11-6-98 DMRF 106. Dan Olson. 7-27-98 DMRF 107, Steve Johnson DMRF lOS, Bruce Ilammond 6-11-99 DMRF 109, Dorothy Topel 7-12-99 DMRF 110, Ileaton DMRF Ill, IIamond 8-29-0 I committed Loan 4-10-01 (5.5%,5-04) Claybaugh 3-00 4-00 Legal (Loan document) DMRF 112 Thickpenny S-O 1 DMRF 113 Chalnber of COInmerce committed Permit and McCarty wall committed TOTAL EXPENDITlJRES $ 2,500.00 $ 2,500.00 $ 500.00 $ 2,394.13 $ 180.12 $ 2,610.00 $6,814.13 $ 5,411.80 $ 2,011.74 $ 9,500.00 $10,644.00 $ 810.50 $ 1,240.00 $ 200.00 $ 7,085.75 $ 2,365.57 $ 1,500.00 $ 58,267.74 Fund Balance, ^ugust I 7, 200 I $140,732.26 . 5. e) t) g) . h) i) j) k) . EDA Agenda - 8/21/01 Consideration of Executive Director's Report. a) VisiCom, Inc. - Copy of letter and invoice to Mr. Hamond based of the EDA motion of July 19,2001. No payment has been received. b) Integrated Recycling Technologies, Inc. - GMEr No. 018 in the amount of $72,500 closed (disbursed) on June 29, 2001. Building construction underway along Fallon A venue. r nvoice for amortization schedule from Ehlers. c) EDMA Company - Approved GMEF No. 019 in the amount of $30,000 anticipated to close on August 30 or 31,200 I. Building and site plans at city for review. Copy of paid application fee. d) GMEF No. 007 - Standard Iron. Rusty Oemeules has requested a letter of satisbction for payment in full 1'()r this loan. Will write today. The EDA shared a first position on the Horizontal Center with the County and the Initiative Fund. The EDA loan was ballooned in seven years and the County and Initiative Fund pay-otT is 10 years. The County and Initiative Fund could amend the UCC filing. WI HA Company - Plans have been submitted to the city for a 16,000 sq n addition to their existing 10,000 sq ft building. H- Window - Two leads for this building. Fay-Mar Building - Production Stamping took a second look. No room to expand. I believe ray-Mar leases 2,500 sq ft in Big Lake. Production Stamping taking a wait and see approach. Red Wing Foods - May construct a 27,000 sq ft building. Undecided. O'Connor house - Court hearing rescheduled from August 3 to September 19. Block 36 - Working on TIF Agreement with Pluth tew Amoco site and O'Donnell for attorney building. Joint parking agreement among property owners for northerly block, construction by Mike Cyr. City sold lot to Fluth. I) DMRF No. 112 - Mr. Thickpenny submitted invoices and evidence of payment on August 16. I will review and authorize reimbursement to Thickpenny upon written review by DA T for completion of design as approved. August 6, 2001 MONTICELW VisiCom, Inc. Bruce and Cynthia Hamond P. O. Box 488 Monticello, MN 55362 Dear Bruce and Cindy: At the Monticello Economic Development Authority (EDA) meeting of July 19,2001; the commissioners approved an annual payment of principal and interest for DMRF Loan No. 111 between the EDA and VisCom, Inc. This resulted hom your request to make one payment annually. . Attached is an invoice in the amount of $1 ,389.36 for the principal and interest due for the period June 1, 2001 through May 31, 2002. Please submit the payment due to the Monticello EDA, 505 Walnut Street, Suite 1, Monticello, MN 55362. Also attached is your check No. 3418 dated June 22, 2001 in the amount 01'$100 for interest only. Your next annual principal and interest payment will be due June 1, 2002. Should you have any questions, please call me at 763-271-3208. Sincerely, ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA (:)~ \~~v,-.9~ Ollie Koropchak Executive Director c: DMRF No. 111 File Kevin Doty, First Minnesota Bank ~ . S 0-'1 Monticello City BalI, 505 Walnut 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 CITY OF MONTICELLO 505 W~lnut Street · Suite 1 Monticello, MN 55362 [ DATE I NUMBER J INVOICE 8/13/01 9086758 PAYMENT DUE 9/13/01 (1 % interest per month will be charged after due date.) Make checks payable to City of Monticello. J ( CUSTOMER ACCOUNT 5858 Phone: (763) 295-2711 F~x: (763) 295-4404 CUSTOMER. ADDRESS VISI COM INC PO BOX 488 ATTN: BRUCE & CYNTHIA HAMOND MONTICELLO MN 55362 Ct'. . :rl~.J'. . 'Ii), J TO ENSURE PROPER CREDIT, PLEASE RETURN PINK COpy WITH PAYMENT DHRF LOAN III ANNUAL PRINCIPAL 6/1/01 - 5/31/02 250.10101.18601 820.95 XAGRE-EDA DHRF LOAN 111 ANNUAL INTEREST 6/1/01 - 5/31/02 250.10101.36601 568.41 XAGRE-EDA . TOTAL 1,389.36 . ~~) . Monticello HRA 505 Walnut Avenue, Suite 1 Monticello, MN 55362 August 10, 2001 MC100-01 Invoice # 18637 GENERAL Professional Services 7/11/01 MTR MTR MTR ~OA -7/15/01 MTR 7/23/01 MTR 7/25/01 MTR 7/26/01 MTR MTR \ ~ \ 9G ~o . u."* ")'~ . ~\ .~\~q Meeting and HRA meeting ..... .", ~ . ~ v 17 Run numbers for scattered sit~ housin!L- --.a u ~ S g "2.. "'?\ q 0 Run numbers for Walnut housing '::l'"'3. ~ ~ ~ . '"\ Amortization - Recycling tech loan ';). ':i 0 . ""~ 'S e \. '?J' ~ l:\ Meeting with Hans Hagen ? \ ~. '-l \.. ~ go "3. . ~ I q'fJt Work on payg and loans update "'<Q"" (s _. -.A. '1. \ '!1. "-\ <. ""I> b I . 10 { q- <r Rerun Amoco '1' J:~ \. ? ~ Finish runs/PA YG updates ..... \-\ (1... ~ ~ aJ- ~\~. 4ta~o\. 'b\C\9 Total Due This Month: Status of Account: . Current $1,187.50 30 Days $0.00 60 Days $0.00 90 Days $0.00 Hours Amount 3.00 375.00 0.50 62.50 0.50 62.50 1.00 125.00 1.00 125.00 1.25 156.25 0.50 62.50 1.75 218.75 9.50 $1,187.50 120+ Days $0.00 Total $1,187.50 PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO: . . EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 s ~') . . . G,W\e~ Nt) O\~ s.\)'\\\~ ~~~ Lo~ o rl LO ...;;f -- ') \''\ ~ \ ;;:: ~ ~~ UJ ~ ~ o z ~ ~ ill (j) n Z ~ CJ.l '" >--, '" lf1 Z~<J\ CJ.l1; iJ..l ~".,> .....J~2 .....J "';' Cl o u;<fJ U r.;\s:i;s ~~~f.R o ~jj ~~i:~ U t-;-r.<; , ~~~~ L... 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