EDA Agenda 02-10-2005
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AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Thursday, February 10,2005 - 4:00 p.m.
City Hall - Academy Room
MEMBERS: Chair Bill Demeules, Vice Chair Barb Schwientek, Wayne Mayer, Tom Perrault, Ron
Hoglund, and Darrin Lahr.
STAff:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Angela
Schumann.
GUESTS:
Bill and/or Barb Tapper, Genereux Fine Wood Products
1 . Call to Order.
2. Consideration to approve the Octobcr 26, 2004 EDA minutes.
3. Consideration of adding or removing agenda items.
4. Public Hearing - Consideration to review for discussion thc preliminary GMEF application from
Tapper's Holdings LLC.
5.
Consideration to approve or deny GMEf No. 024, a business subsidy, for Tapper's Holdings
LLC.
6. Executive Director's Report.
7. Other Business.
8. Adjournment.
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, October 26,2004 - 4:00 p.m.
City Hall - Academy Room
MEMBERS PRESENT:
Chair Bill Demeulcs, Vice Chair Barb Schwientek, Roger Carlson,
Robbie Smith, Clint Herbst, and Darrin Lahr.
MEMBERS ABSENT:
Ron Hoglund.
STAFF PRESENT: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
GUESTS:
Bruce and Cindy Hamond, VisiCom, Inc.
1. Call to Order.
Chair Demeules called the EDA meeting to order at 4:00 p.m. declaring a quorum.
2.
Consideration to approve the July 27,2004 EDA minutes.
Roger Carlson made a motion to approve the July 27, 2UU4 EDA minutes. Seconded by
DWTin Lahr and vvith no corrections and additions, the minutes were approved as
vl'ritten. RoMie Smith abstained (ahsent July 27'''.)
3.
Consideration of adding or removing agenda items.
None.
4. Consideration of a request from VisiCom, Inc. relative to balloon payment date f()r DMRF No.
ill
Koropchak provided the background information of the DMRf Loan No. 111 to VisiCom,
Inc. stati ng the loan was approved by the EDA on April 10, 200 I, in the amount of $1 0,644,
5.5% interest rate, amortized over 10 years; provided, however, the entire remaining and
unpaid balance of principal and interest shall be due and payable in full on May 1,2004. In
April 2004, the EDA approved extending the balloon payment date from May I, 2004, to
November 1,2004. The current principal balance of the said loan is $6,073.01.
Bruce I lamond explained that due to the soft economy and since the previous tenant left, they
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EDA Minutes - 10/26/04
have been unsuccessful at iinding a replacement tenant or additional tcnants for the planned
expansion to the adjoining westerly lot. Therefore, without tenants, they are unable to secure
financing for the expansion. Additionally, Hamond noted the three downtown projects which
have not materialized: Walgrcens, Block 35, and Landmark Square II and the vacancies within
the Steve Johnson properties. The I Iamonds plan to start a new business called Fitness
Matters which will occupy the existing vacant building located at 212 West Broadway. Due to
the above reasons, they requested the EDA consider a one-year extension to the balloon
payment date on the EDA loan The request was suppol1ed by a letter from the lender, First
Minnesota Bank.
Clint Herbst made a motion to approve extending the halloon payment datepom
Novemher I, 2004, to Novemher 1, 2U05, associated ,"vith the Loan Agreenlent hetween
the Monticello EDA and VisiCom, Inc. dated April] 0, 2001, and requesr;ng a principal
and interest payment which would result in a remaining principal halance ol$5,OOO,
payment due November I, 2004. Robbie Smith seconded the motion and with no fitrther
discussion, the motion passed unanimously. ReasonsfiJr motion: DMRF Loan are less
dollars, no spec(fic guidelines addressing balloon date extensions, sufficient EDAfimd\',
soft economy and lack oldowntown economic activity, and letter of support from lender.
5.
Consideration to approve authorization to execute a Satisfactory of Mortgage for GMEF Loan
No. 006 (Custom Canopy).
Koropchak inf()[med the EDA commissioners of a request from Pat Dwyer, Bank of Elk River,
for a Satisfactory of Mortgage relative to GMEF Loan No. 006, a real cstate loan, to Stephen
P. Birkeland, Jr. and Joan M. Hirkeland, for the construction of Custom Canopy. The balloon
payment had been paid in-full on August 18, 1998. The Birkeland's are looking to refinance.
RORer ('arlson made a motion authorizing execution (?lthe ,)'atislaction of Mortgage for
GMk'F' fJJan No. 006 hettl'een the Monticello EDA and Stephen P. Birkeland, Jr. and
Joan M. Birkeland. :)'econded by Barb Schwientek and with no fitrther discussion, the
motion passed unanin1OusZv.
6. Consideration to review terms and expiration dates of EDA Commissioners.
Koropchak noted this was an information item only and no action was required. Given the
decision of Council Membcrs Carlson and Smith to not run for re-e1cction, the EDA and
Koropchak thanked them for thcir ycars of service. Pcnding the out-come of the clections will
the EDA position held by Commissioner Herbst be affected. Commissioner Schwientek
agreed to be considered by the Council for another 6-ycar term on the EDA.
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EDA Minutes - 10/26/04
7.
Executive Director's Rcport.
Thc EDA accepted the report as written. Bill Oemeules informed the EDA that closing on the
Standard Iron building and lot to Walboard, Inc. was anticipated for Novcmber 18,2004.
Standard Iron will have a 4-year lease on a portion of the building.
8. Other Business.
None.
9. Adiournment.
Robbie Smith made a motion to adjourn the EDA meeting Seconded by Barb Schtvientek
and with nofitrther business, the EDA meeting adjourned at 4:45 p.m.
Ollie Koropchak, Recorder
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EDA Agenda - 02/10/05
4.
Public Hearinl: - Consideration to review for discussion the preliminary GMEF
application from Tapper's Holdines LLC.
A. Reference and Backeround:
GMEF Loan Application: See Attachment A.
Request is for a $200,000 real property rehabilitation (expansion or improvements) loan.
Project Summary:
Tapper's Holdings LLC is a Minnesota limited liability company. The company oilicers,
William R. and Barhara R. Tapper, purchased the 60,000 sq It manufacturing/oilice facility at
1324 Edmonson Avenue N E (previously known as 1-1- Window) last fall. Tapper relocated
Westlund Distributing from 212 Chelsea Road into this facility occupying 42,000 sq ft of
warehouse space and 3,000 sq ft of office space. Genereux Fine Wood Products and
Westlund Distributing relocated to Monticello from St. Michael in 1990 wherein Tapper
constructed the facility at 212 Chelsea Road. Bill and Barb expanded the Chelsea facility in
1995 and later invested in additional machinery & equipment utilizing the EDA loan program
three times. Two of the loans have been paid-off and the third loan is of good-standing with the
balloon payment due in May 2008.
Tapper plans to construct an additional 25,000 sq ft. of warehouse space to the existing 60,000
sq ft facility which will be leased to the proposed tenant, Strategic Equipment and Supply
Corporation. Additionally, Strategic will lease 10,000 sq ft of the existing warehouse space
and 5,000 sq ft of the existing office space. It is my understanding the negotiated lease rate is
$5.00 per square foot.
PUBLIC HEARING
Strategic Equipment and Supply Corporation, a national company, was formed in 2000. The
northern region headquarter and control center will be located in Monticello. 'fhe company
acquired the St. Cloud Restaurant Supply and Palm Brothers Restaurant Supply, Minneapolis,
which will retain the sales operation. Dave Miller is the northern region president. The
company plans to employ 50-55 people but will commit to 40 for purpose of the Business
Subsidy Agreement. See Attachment B Projected job and wage level goals.
The public hearing notice appeared in the Monticello Times on January 27,2005, satisfying the
requirements of Minnesota Statutes, Sections 116J.993 to 116.1994.
EDA Agenda - 02/10/05
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The EDA should review the preliminary application for compliance with the EDA-GMEF
Business Subsidy Criteria. Then open and close the public hearing.
ESTIMATED PROJECT COST:
Expansion/Improvement Construction costs
TOTAL
$1,300.000
$1,300,000
GREATER MONTICELLO ENTERPRISE FUND GUIDELINES
PUBLIC PURPOSE CRITERIA: Must comply with four or more ofthe criteria listed below,
criteria #1 being mandatory.
1.
Job Goal: 40 full-time jobs to the City of Monticello within two years of the
benefit date.
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Wage Goal: At least 90% of the new jobs must pay a wage of the higher of$9.00
per hour, or at least 160% of the federal minimum wage, exclusive of
benefits, Cor individuals over the age 01'20 during the term of the
assistance. See Attachment B.
Annual reports arc required until termination date. Failure to meet job and wage goals require
partial or full payment of the assistance plus interest.
2. Increases the community tax base: Annually $18,300
Annual Estimated Market Value $750,000
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Factors:
To assist an existing industrial business to expand their facil ity. Other
factors f(n consideration but not I imited to: Nature of business
(headquarter/control center), present availability of product or service
(none), potential adverse environmental effect (none), and compatibility
to the comprehensive plan and zoning policy (yes, acceptable in 1-2
zone.)
4. Used as a secondary source to supplement conventional financing.
The GM EF is a secondary source of financing for the real estate expansion.
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I(DA Agenda - 02/10/05
5.
Used as gap financing:Used to encourage growth and job creation within Monticello.
6. Used to assist other funds: Primary conventional lender.
Pay-as-you-go TIF assistance used to reduce lease
rate.
GREATER MONTICELLO ENTERPRISE FUND POLICIES
I. BUSINESS ELIGIBILITY
Industrial husiness:
Yes.
Located within city limits:
Yes, Zoned 1-2.
Credit worthy existing husiness:
To be determined per lender, Stearns Bank.
$10,000 loan per each job created. $10,000 X 40 ":~ $400,000.
Or $5,000 per every $20,000 increase in property market valuation, $187,500, whichever is
higher.
Criteria: $400,000
II.
FINANCiNG METHOD:
Companion Direct Loan:
All such loans may be subordinated to the primary lender if
requested by the primary lendcr. The GMEF is leveraged and
the lower interest rate of the GMEF lowers the effective intcrcst
ratc on the entire project.
Criteria: The GMEF takes a second position behind the lender.
III. USES OF PROCEEDS:
Real property rehahilitation (expansion or improvements)
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IV.
EDA Agenda - 02/10/05
TERMS AND CONDITIONS:
Loan Size: Maximum not to exceed 50% of the remaining revolving loan fund balance.
Estimated cash balance as of December 31,2004, estimated $825,000.
Requested: $200,000. Criteria: $400,000. Remaining balance thereafter,
$625,000.
Leveraging: Minimum 60% private/public Ilon-GMEF
Maximum 30% public (GMEF)
Minimum 10(10 equity of EDA loan
Proposed
Lender
GMEF
Equity
TOTAL
$1,080,000 (83 %)
$ 200,000 (15.4%)
$ 20,000 (1.5%)(10% EDA)
$1,300,000 (99.9%))
Loan Term: Real estate property maximum of 5-year maturity amortized up to 30 years.
Balloon payment at 5 years.
Recommended: Amortization consistent with lender. Balloon payment in year 5.
Interest Rate: Fixed rate not less than 2% below Minneapolis prime rate. Prime rate per
National Bank of Minneapolis on date of ED A loan approval. Prime rate
February 10,2005._.
Reeommended
fixed interest rate.
I,oan Fee:
Minimum fee of $200 hut not to exceed 1.5%1 of the total loan projcct. Paid hy
applicant to the EDA within five working days after City Council approval of
GMEF loan. Non-refundable. Loan fee may he incorporated into project
costs. EDA retains the right to reduce or waive loan fee or portion of loall fee.
Options:
Minimum fee of $200 or not to exceed 1. 5 (XI of GMF~F loan ($3,000),
due and payahle not later than March 7,2005.
Recommended:
, due and payable not later than
March 7, 2005.
Prepayment Policy:
No penalty for prepayment.
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EDA Agenda - OUIO/05
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Deferral of Payments: 1. Approval of the EDA membership by majority vote.
2. Extend the balloon if unable to re1inance, verification letter limn two
lending institutions subject to Board approval.
I ,ate Payment Policy: failure to pay principal or interest when due may result in the loan being
immediately called.
Interest limitation on guaranteed loan~ot applicable.
Assumability of loan: None.
Business equity requirements:Subject to type of loan; Board of Directors will determine ease
by case, analysis under normal lending guidelines.
Collateral:
Personal and/or corporate guarantees (requires unlimited personal guarantees)
as per the GMEF attorney.
Non-performance:
An approved GMEF loan shall be null and void if funds are not drawn
upon or disbursed within 180 days from date of EDA approval.
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February 10, 2005 EDA approval - loan becomes null and void August 10, 2005.
Non-performanee extension: Not applicable.
Legal Fees: Responsibility of the GMEF applicant.
Please remember to open and elose the public hearing.
B. Rccommendation:
Recommendation is to review this information prior to the EDA meeting for discussion and
potential questions. In talking with Tapper regarding the 10% equity requirement, perhaps the
FDA needs to discuss this if the equity is not in the form of cash. Consideration to approve or
deny GMEf Loan No. 024 is the next agenda item.
C. Supoortinl! Data:
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Preliminary GMEf application, job and wage-level goals, Stearns Bank Letter of Credit
Analysis and Commitment. Articles of Corporation and executed Lease Agreement
forthcoming.
5
,yright and Sherburne
[sian and training of
:)118, oversight of con-
Some evenings and
ement experience in
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..~,~. ~""""'''''V'''' v, "'" r,a",,",\) vU" 11I1I:;:;lon Will oe SUDjeCT TO me approval or
denial of the City Council and will be considered on Monday, February 28th, 2004
at 7 p.m.. at the Monticello City Hall.
~Fred Patch, Chief Zoning Official
(Jan. 20, 27, 2005)
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of Monticello
Planning Commission on February 1st, 2005 at 6;00 p.m., in the Monticello City Hall
to consider the following matter:
PUBLIC HEARING; Consideration of a request for an amendment to the
Monticello Zoning Ordinance regarding the replacement of billboard signage.
LOCATION: City of Monticello
APPLICANT: City of MOriticello
yvritten and oral testimony will be accepted on above subjects, and all persons
de.slrlng to be heard on referenced subjects will be heard at this meeting.
Note: Decisions of the Planning Commission will be subject to the approval or
denial of the City Council and will be considered on Monday, February 28th, 2004 at
7 p.m., at the Monticello City Hall.
-Fred Patch, Chief Zoning Official
(Jan. 20, 27, 2005)
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NOTICE OF PUBLIC HEARING
CITY OF MONTICEllO, MINNESOTA
NOTICE IS HEREBY GIVEN that the Economic Development Authority in and for
the City of Monticello, Minnesota, will hold a public hearing on Thursday, February
10, 2005, 4:00 p.m. in the Academy Room, 505 Walnut Street, Monticello,
Minnesota, regarding a proposed business subsidy to be granted by the Economic
Development Authority in and for the City of Monticello, Minnesota, to Tapper's
Holdings LLC and/or Strategic Equipment and Supply Corporation (the "Recipients")
under Minnesota Statutes, Sections 116J.993 to 116J.994.The proposed subsidy
involves a low interest loan to assist with the construction costs of the expansion of
an existing manUfactUring facility by the Recipients in the City.
Information about the proposed business subsidy and a summary of the business
subsidy agreement are available for inspection at City Hall during regular business
hours.
All interested persons may appear and be heard orally and in writing.
-Dllie Koropchak, Economic Development Authority Executive Director
(January 27,2005)
CITY OF MONTICEllO
WRIGHT COUNTY, MINNESOTA
ORDINANCE NO. 421
AN ORDINANCE REZONING PROPERTY FROM PS TO R-1
THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA HEREBY
ORDAINS AS FOLLOWS;
The Official Zoning Map of the City of Monticello is hereby amended to rezone
from PS (Public/Semi-PUblic) to R-1 (Single Family Residential) the property legally
described as;
That portion of the Southeast Quarter of Section 3, Township 121 North, Range
25 West, Wright County, Minnesota lying south of the South right of way of County
State Aid No. 75 and north of the Northerly right of way of Burlington Northern Santa
Fe Railway (formerly Burlington Northern Railroad) more particularly described as
follows:
Beginning at the most easterly corner of Lot 11, Block 1, Prairie West 1 st
Addition, according to the recorded plat thereof, said Wright County; thence South
25 degrees 53 minutes 00 seconds West along the Southeasterly line of said Lot 11
for a distance of 361.88 feet to said Northerly right of way of Burlington Northern
Santa Fe Railway (formerly Burlington Northern Railroad) thence South 53 degrees
00 minutes 46 seconds East along said Northerly right of way for a distance of
536.72 feet; thence North 25 degrees 29 minutes 07 seconds East for a distance of
485.19 feet to said South right of way of County State Aid No. 75; thence North 64
degrees 07 minutes 00 seconds West; along said South right of way of County State
Aid No. 75 for a distance of 526.48 feet to the point of beginning.
Adopted by the Monticello City Council this 24th day of January, 2005.
-Rick Wolfsteller, City Administrator
(Jan. 27, 2005)
Greater West Metro
HUMANE SOCle$r'~'
formerly Humane Society of Wright County
4375 Hwy. 55 SE, Buffalo, MN 55313
(3 miles west of Rockford)
763-39o-00GS (3647)
www.WestMetroHumane.com
Reese
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DEVELOPMENT SERVICES
Phone: (763)271-320X
Fax: (763) 295-4404
Email: ollic.koropchaldiiki.lllonticcllo_rnn.us
Economic Development Director
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
MONTICELW
GREATER MONTICELLO ENTERPRISE FUND - PRELIMINARY APPLICATION FORM
APPLl~rd j?, ~ f ~
Ut-LI frm F /1- [5.-Lf4??// I. - ... -PC7L-
FIRM OR TRADE NAME:
BUSINESS ADDRESS: r._ JtJ l I j___
/~?,2 '/ ~mlJh YJ ~~i-'1 ny. M..jJ (
/lJ1 ZIP CODE: ,~J-~'l-?
(HOME) b-fj;)- f/7-5-?-7P;?
JJ!c lJ TI c. tIZ-~cJ
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CITY/STATE:
TELEPHONE:(BUS)
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DATE ESTABLISHED:
-X- SOLE PROPRIETOR
EMPLOYER ID#
CORPORA TION
P ARTNERSHlP
MANAGEMENT
NAME
TITLE
OWNERSHIP 'X,
PROJECT LOCATION:
NEW LOCATION EXISTING BUSINESS
TOTAL PRO.JECT COST ESTIMATE: $ / . /J1
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Monticello City Hall, 50S Walnut Street, Suite I, Monticello, MN 55362-XS31 . (763) 295-271 j . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170' Fax: (763) 27] -3272
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GMEF Preliminary Application Form
Page 2
PROPOSED USES:
LAND
EXISTING HUILDING
CONSTRUCTION
MACHINERY CAPITAL
WORKING CAPITAL
OTHER
TOTAL USES:
$
43-~1 d>'\
$ / I 5 III '-'-I (710
PROPOSEDBEGINNINGDATE:~h ) _ _.~
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REQUESTED:
AMOUNT OF LOAN $ ':Loa, c~ 1)
MATURITY & TERMS ~/ ~ 1".." _
REQUESTED __~~ _ ~~
APPLICANT'S EQUITY ')...0, 0 ut()
LOAN PURPOSE
ESTIMATED COMPLETION DA TE~~;;; ~
TITLE TO
PROJECT ASSETS TO BE HELD BY:
PARTICIP1\T-iNG LENDER:~
!:> T J17t1? IJ S (5 tl:2::) K
~ xl (Name)
. J:7/:;-- "m ) fJ ,r-
(Contact Person) F .
PRESENT # OF FT EMPLOYEES
OPERATING ENTITY
ALTER EGO
<r, Ld N /.7 !>>EL
(Address)
~ '?2~'- 7:2 /2-
(Telephone #) ,
(See Attached)
PROJECTED # OF FT EMPLOYEES (within 2 years)
PROJECTED A VERAGE WAGE PER HOUR:
ADDITIONAL PROJECT INFORMATION:
/----::7
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APPLICANT SIGNATURE:
/./;~.""..""".
DA 1'E SIGNED:
(; M E F Pre I i rni ll<JrY<Jpp I, j(lrlll
--~._.~~..
STEARNS
Bank N.A.-ST.CLOllD
We Get the Job Done!
4191 2nd St. S. . St. Cloud, MN 56301 . www.stearns-bank.com
320-253-6607 or 1-800-320-7262 . Fax: 320-253-3051 . Member FDIC,
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thin:uary 18, 260s'
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Mr. Ollie Koropc:hak
City of Monticello'
505 \\/alnut St.
J\1ontic.:,eHo,MN 55362
l:':E: Tapper's Holdings, LLC
Dear Mr Koropch::tk:
.
This letter i(; to ini()n:r: you that Stearns Bank conslder':, the prop..)s~;d TIY Financing ,m:!
City L(!,n: an inkgral part of the financing, for the proposed I::xpansinfj of '.hitbuilding
iywned by Tapper's Holdings., LtC. located at 21) Chelsea Rd. ~;'rc'()Jns Banli.doeSllot
consider thepn:ject viable without the prJPoscd 1IF.';'man::iEg :,;.n;J Clty Loan.
Pka~c fCe'i flee to contact me at 320..2\)2-.61 :';2 with ,illy quc<;tiom;,
Sincerely,
J' ,
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Steve Domine
Senior Vice President
SMD/mal
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Stearns Bank Locations: Albany. MN . Edina. MN . Evansville, MN . Holdingford MN . St, Cloud. MN . Upsalo. MN . Scottsdale, AZ
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DEVELOPMENT SERVICES
Economic Dcvelopmem Director
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(763) 27/....3208
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MONI1CELLo
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CITY OF MONTICELLO, MINN.ESOTA
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JOB AND WAGE LEVEL - EXISTING JOBS
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Please indicate number of current employees at each level and indicate the corresponding benefit j~Ye1.. ' ':~
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Monticello City Bali. 505 Wll.lnut Sr.reer, Suite 1. Momicdlo, MN 55362~B831 . (763) 295-1711 . F~: (763) 29:5-4404-
Offic; of Public Works, 909 Golf COUrse Rd., Monticeilo, NlN 55362' (763) 295-'1170. ..._. ,.,,,.,, __. u__
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EDA Agenda - 02/10/05
5.
Consideration to approve or deny GMEF No. 024. a business subsidv. for Tapper's
Holdines LLC.
A. Reference and Background:
The EDA is asked to consider approval or denial of the request for a $200,000 GMEF loan,
'T'he lender, Stearns Bank, has been requested to provide a commitment letter and a letter
stating Tapper's Holdings LLC is an existing credit worthy business.
First, the EDA needs to determine if this GMEF loan application from Tapper's will encourage
economic development. Secondly, the EDA must determine if the preliminary real property
rehabilitation loan application complies with the EDA Business Subsidy Criteria - GMEr
Guidelines, Lastly, the EDA must determine the amount, terms, and fee of the loan for
approval.
The City Council will consider ratification of the EDA's action for compliance of the EDA-
GMEF Business Subsidy Criteria on February 28, 2005, If approved, the GMEF will be
disbursed at the closing date yet to be determined.
B.
Alternative Action:
1. A motion to approve GMEF Loan No. 024 for Tapper's Holdings LLC in the amount
of $ with term and conditions as recommended at the meeting.
Collateral, guarantees, and other condition requirements to be determined and prepared
by the GMEF attorney. The GMEF loan approval subject to Lender commitment,
crcdit worthincss Icttcr and Council ratification of EDA action,
2. A motion to deny GMEF Loan No. 024 for Tapper's Holdings LLC
3. A motion to table any action.
C. Recommendation:
Recommendation is for Alternative No, 1 at $200,000 with tcrms and conditions as
recommended at the meeting. Approval subject to Council ratification of the EDA action, The
suggested amount of $200,000 is recommended by the Economic Development Director and
supported by the City Administrator to encourage a local manufacturer to invest in Monticello
creating additional good paying jobs and added tax base, FDA funds available, and satisfies
EDA Agenda - 02/10/05
.
EDA guidelines. This rccommendation is suhject to bank commitment and credit worthiness.
D. Supportint! Data:
Lender documentation if available.
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EDA Agenda - 02/10/05
6.
Economic Development Director's Rcport.
A. Business Retention and Expansion -
-Bill and Barb Tapper - 25,000 sq ft warehouse addition to existing 60,000 sq n industrial
building. Proposed tenant, Strategic Equipment and Supply Corporation, will commit to 40
new jobs for Monticello at an average hourly wage 01'$17.90 w/o benefits and average median
wage of $19.00 w/o benefits. This will be their regional and control center. In reality, they plan
to have 50-55 people at this facility.
~Dahlheimer still interested in relocating to Otter Creek Business Campus.
-Local business has decided to add on in 2005 rather than relocate to Otter Creek.
~Other two local companies reported last month looking to expand in 2005 and at long range
plans.
- 12,000 sq n addition, Tire Service Equipment Mfg (unaware of EDA program)
B. Industrial leads:
-28,000 sq n manufacturing facility - rubber products and rubber coated i~lCility. Mail
worksheet and trying to set up visit. (Lead from general contractor)
- 5,000 sq ft office/warehouse, 1 ~2 acres, 7 full-time (owner call)
- 40,000 to 60,000 sq ft manufacturing, 4-6 acres. (Metro realtor broker) Mailed worksheet.
- 8,000 to 12,000 sq ft condo for lease or sale, 3 buildings, Dundas Road, Oakwood Industrial
Park, spring construction (Builder and Architect)
- 10,000 sq n manufacturing. 2-4 acres, 8 people, metal fabricator, returned worksheet. (Brad
Barger)
~ 30,000 to 50,000 sq ft manufacturer, 10 existing, 10 new, 3-5 acres (realtor, commercial
specialist)
- 20,000 sq ft with room to expand, 7+ acres, manufacturing (owner)
~ 30,000 sq it light assembly, distrihution. 3-3.5 acres 12 full time, (owner)
- 15,000-20,000 sq ft, 3-5 acres, heavy construction equipment, 90 at peak, 12 in oiTice
( owner)
- 40,000 sq ft manufacturing facility, looking for existing building, real estate hroker
C. Transformation Home Loan Program - Breakfast held January 26, about lOin attendance.
Info mailed to 375 home owners with 2004 assessed market value ofless than $150,000.
D. Received $45 from Standard Iron for reimbursement of legal fees associated with Release
of Contract.
E. Marketing Committee - Meeting scheduled for February 10, 7:30 a.m.
F. No new information from Chuck Van Heel on acquisition of theater on West Broadway and
potential redevelopment of area.
G. Plan to meet with A VR relative to optional relocation sites, Lingar out~of-town til Feh 10.
I-I. Covenants being prepared by City Attorney for February 14 Council agenda and recording
thereafter.
EDA Agenda - 02/10/05
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I. Attended Ehlers Seminar, February 3 and 4.
1. EDA-LiqllorFllnds ~ At the Council meeting in January, the Council adopted an agreement
with Swan River Montessori School and the builder authorizing transfer of the land. As part of
the agreement and $300,000+ advanced payment by the City, discussion by the Mayor
suggested the use the EDA-Liquor Funds. However, no action was taken by the Council.
Initially, the amount of Liquor Funds transferred to the EDA was $383,000. The EDA
previously transferred $147,000 back to the City which leaves a balance 01'$236,000. As you
recall, these dollars are the only non-restrictive funds of the UDA and available for downtown
funding programs. No action required by the EDA at this time.
K. Commissioner Schwientek informed me of her conversation with Schneider (downtown
business owner) of perhaps his renewed interest in the Block 35 improvement project.
L. In a meeting between Mayor Herbst and business owners Loch and Johnson, I Jcrbst and I
will meet on the 9th to discuss possible redevelopment options.
M. Fluth still planning to move forward with Phase 11 of I,andmark Square. Potential tenant
scheduled to be in town within the next lew weeks. Has one committed lease tenant.
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