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EDA Agenda 06-18-2002AGF..NDA MON'TICELL,O r(ryONOMIC DEVELOPMEN"I' A~iTHURITY Tuesday, ,Tune 18, 2002 - 4:00 p.m. City Hall -Academy I2uum MEMBERS: Chair Bill Deme~.iles, Vicc Chair Barb Scllwientek, Assist 'I'reas~.~rer Ken Maus, ('.lint 1 Icrbst, Roger C"arlson, Ron Hoglund, and Darrin Lahr. STAFF: "hreasurer Kiel: WoII•steller, h:xecutive Director Ollie Koropchak, Recorder Lori Kraemer. GLICSTS: Brooks .lohnson, Double Bull Archery, Inc. Bill ~l'apper, Ge~aereux l'~lnl', Wood Products, Inc. Al Loch, Loel~ Jewelers Call to Order. ?. Consideration to approve the April 23, 2002 EDA minutes. i. Considcratioii of adding or rcnu~vi~ig agenda items. 4. Considerrliion to hear an update li~om property owners of Block ~5. i. Consideration to review Iot discussion the preliminary GNII;I~ loan application for Do~ible Bull Archery Inc. 6. Consideration to approve or deny GMEF No. 020 for Douhle Bull Archery, Inc. 7. Consideration to review for discussion the preliminary CiMEF loan application Lot Tappet`s, Inc. 8. Consideration to approve or deny GMEF No. 021 for Tappet's, hoc. 9. Exec~itive Director's Report. 10. Other Business. 11. Adjournment. • ANNUAL MEETING MINUTES MGN"I'ICF,LLO EC"GNOMIC llEVELONMENT AUTH0121TY Tuesday, April 23, 2002 -=1:00 p.m. City Hall -Academy Ruom Members Present: Chair Bill Demeules. Vice Chair Barb Schwientek„ Roger Carlson, Ron Hoglund at~d Darrin Lahr. Absent: Assist "I~reasurer Ken Maus and Clint Herbst Staff: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Lori Kraemer Call to Order. Chair Bill Demeules called the. meeting to order at 4 pm. 2. Consideration to a rove the November 13 2001 EDA minutes. A MOTION WAS MADE BY BARB SCHWIEN"['EK TO APPROVE THE MINUTES OF 'I'1-IE NOVEMBER 13, 2001 EDA MEETING. RON F~OGLUND SECONDED `I'E•lE MOTION. Motion carried unanimously. 3. Consideration of adding, or removing a<renda items. None 4. Consideration to review for amendment the Business Subsidy Criteria oftl~e FDA Ullie Koropchak, Executive Director. provided the report noting that this was a housekeeping item. Accorciing to the Business Subsidy Criteria: "At a minimum, the EDA shall review the Fund Guidelines un an annual basis. No changes to the GMEF ~~uidelines shall be instituted without prior approval oFthc City Council." Criteria was attached for review. A MO"hION WAS MADE BY BARB SCHWIENTEK C~(:) ACCEPT"1'1-{E CURRENT• BUSINESS S[1F3SIDY CRITERIA OF "l~I IE T:DA. ROGF,R CARLSON SECONDED THE MUTTON. Motion carried unanimously. S. Consideration to elect 2002 EDA officers. Koropchak advised that in order to comply with EDA Ordinance Amendment No. 172. Section ?- i-2: The Authority shall annually elect a presidznt, vice president, treasurer, assistant treasurer, and secretary. • EDA Minutes - O~I/23/02 Koropchak also provided the 2002 EDA memberships and 6-year terms: Clint I-lerbst- Council 1?-2002 Ken Maus 12-2002 Darrin Lahr 12-2003 Barb Schwientek ] 2-200 Bill Demeules 12-200 Roger Carlson, Council 12-2006 Ron Hoglund 12-2007 A MOTION WAS MADE BY RUN HOG[,UND TO NOMINATE AND ELECT THE FOLLOWING: CHAIR, BILL DEMEULES; VICE CHAIR, BARB SCHWCENTEK; TREASURER. RICK WOLFS"C~EL,LER; ASSISTAN'1~ TREASURER, KE;N MAUS; AND SECRE'hARY. OLLIE KORUPCHAK AS 2002 EDA OFFICERS. BARB SCHWIENTEK SECONDED'CIIE MOTION. Motion carried unanimously. 6. Consideration to review and acce t the Year-End EDA Financial Statements. Activit Re ort, and 200? Pro used Bud set. Koropchak provided the statement of~revenues, expenditures, and changes in Iitnd balance for the year ended December 31, 2001. In order to company with EDA Ordinance Amendment No. 172, Section 2-3-6: The Authority shall prepare an annual budget projecting anticipated expenses and sources of revenue. And B: "I'he Authority shall prepare an annual report describing its activities and providing an accurate statement of its financial condition. Said report shall be submitted to the City Council in May of each year. Provided were the year-end statements- proposed budges- and activity report. Wolfsteller advised that possibly the EDA should show the Liciuor re-payment as a liability in the . balance sheet. Schwientek stated to Footnote this. Demeules stated it really is not a liability. A MUTTON WAS MADE BY RON IIUGLLIND 'I'U AC'CEPT TFIE YEAR-END FINANCIAL S I~ATEMI~~NT~ ANU RF,PORT FOR SUBMISSION TU THE CI"["Y CUUNCII, UN Iv1AY' 13. 2002, ANU -[~U ADD A FOOTNOTE REGARDING THE LIQUOR FL1ND BALANCE. DARRIN LAI-IR SICONC)ED THE MOTION. Motion carried unanitTwusly. 7. Consideration to review year-enci balances of the CiMEF. I)MRF, [.1DAG- anti ERG Funds. Koropchak repot-tcd that all GMI~ F loan payback payments were current as accounted for 7 EDA Minutes - 0~4/23/p2 in the 2001 year-end statements, and provided the status on each loan and also additional liulds available for future by the EI)A. Koropchak stated the total dollars available to the EDA for GMEF and DMRF programs less the cotllmtttllents is $779.109.x8 as of~Apl•ll 23, 2002. Koropchak also provided a hr(;ak(lown of the expenditures for the downtown revitalization fund. Koropchak was advised to prepare and send a letter to Hammond regarding his loan. Walfsteller complimented Koropchak for her work on these reports. 8A. Consideration to discuss fora royal the continued ftlndin 7 of the DMRF and to review the UMRF C-uidelines for ossible amendments. Koropchak advised that on an annual basis, the EDA compares the over-all dollars available to assist industry and downtown businesses with the Goals ar objectives of the programs. She also advised the DMRF balance is about $]40,500 after deducting committed dollars. "I~he DMRF program began ill 1997 and in five years the EDA disbursed money for 9 improvement prgjects. Members were reminded that EDA money, with the exception of Liduor (~und balances, are restricted to industries and jab creations. Schwientek had asked if there was anything happening in tllc downtown area at this time antl Koropchak advised that Block 35 is waitln~, until after the Broadway reconstruction to begin any of their w-ork. The status of snow removal behind the huiltlin~~s on Block 35 was hard to compare since there was not a lot afsnow this winter, although it w41s stated that the Travel building, was tlaodctl out due to snow storage oll the empty lot next to them. Scher ientek also stated she would not like to provide any more dollars Col• Block 52 with the buildings being in the shape they are in. The I:DA will probably nOt start the propOse(1 project behind Block 35 until sometime in 200>. A >V10"LION WAS MAUL BY C3ARB SCHWIEN"I"EK "TO UISCON`CINUE "I"CIE UOVl~'N"DOWN R1~VITAL(7A1"IUN PROGRAM AND RESERVE DOLLARS FOR BLOCK;? PROJECT. POI'EN"1`IAI.LY IN 2003. RON IIOGLIJND SEC:'OND)/D THE IV10"LION. Motion cat•l'ied unaninuJUSly. Thct•e was further discussion by Scln~ientck wha stated that she is not opposed to repayment O1 the Iltlll()C f LlI1CI bLlt the I-C)A does 11ot kllaw It there wlll be all II1dLlSl1'lal project so she rcquest(:d to wait on this Lentil at least November 2002. Wolfsteller stated that it would not happen anyway until the end of the year, and stated that even if the EDA has a change. they would just decd to notify him. Schwientek then asked to add this to the ne~(t a~~encia item and to table the item at this time. EDA Min(Ites - 04/23/02 gB. Consideration to discuss fora royal authorizin~i the re lacement of the Li uor Funds. A MO"1"ION WAS MADE BY BARB SCHWIENTEK "hO "1"ABLE ACTION ON REPAYMI-:N"l (~F i~HI-: LIQUOR I•"UNUS. I~OC;ER CARLS()N SECONDED "I'HE MOTION. Motion carried unani-nously. 9. Executive,Director~s Resort. ^ Koropchak provided a letter from Dan Hunter regarding his requested for the amount due and the remaining principal balance for GMEF Loan No. 013 as of February 1, 2002. ^ Also advised of the MCCF letter she received in February. "I'he EDA had questions on this type of Funding and Koropchak stated she is not familiar with this program and would need to End mare information. ^ Money back from Integrated Recycling from the loan closing as well as a check front Standard Iron ^ Riverwalk Project by I-Tans Hagen -City Council approved entering into contract, engineering issue needs to be resolved. ^ Landmark Square -Cleaning up the site. Anticipated closing will be next week. Fluth requested align-ott'from Minnesota Pollution Control. Building plans are 111. ^ Marketing, Group -Golf outing on x/16/02 at Silver Spl•in~~s, ^ Industrial Banquet hosted by Chamber. 6/1 1/02 at Monte Club -Norm Col~:nlan is ~~ucst speaker. ^ HRA is looking at a scattered housing project on b`'' Street and Minnesota Street - workinti, with CMHP who has one house left to acquire. Received go ahead to start -I~IF District. SLU717y Fresh donating money to fill gap. 1 1 units -affordable huusin~~. ^ I_IMC -The IDC/HRA has visited -they requested an RFI' which Koropchak sent out. She provided a list of existing jabs and new jobs to be created/wa~~e levels. Als0 1111a tra177 PI'UC1LICtlan ~ta117p111~ C a. as the Sa111e. H04`ILI17d Stated the building, tllev would like to build is very nice and this is a ~zreat company. One mason they would like to move is because they clo not think they can get sewer/water extended to their current building in Corcoran for another 2 years. Koropchak advised that she spoke with the builder and there are same concerns rcgardin~~ sites, first choice is Pfe1'ter. ?"'' is city's Remn7ele site, 3'`' is Pfeffer's site ot-fSchoul Bled and Co Rd 1 17. Thee anticipate a decision next ~~eek. 1{Ill~~hal'll felt tlle~' wa(lld [hake a L'a1771111tlllellt a11C1 17eecl t0 Start by Illld SLI171117eI' - Koropchak offered $200.000 of-EDA money, to UMC and $1 X0.000 to PrOdlICt1(ln ~CalllplllL~. ^ E'uhlic I-Irarin~T for comp plan is scheduled far x/7/02. ^ 1-lu~Tlund asked it-we are ~~etting any closer to the C'iri ownin~~ industrial land and Woltstellot• stated no. It was noted that Bier Lake is offeril7~T land for $l . EUA Minutes - 04/23/02 1 ~. Other BLISIn~ss. There was no other business. 11. AdJoui-nllient. A MOTION WAS MADE BY DARRIN I_,AHR TO ADJOIJRN THE MEE'hING AT 5 PM. RON HOGLUND SECONDED THE MOTION. Motion carried unanimously. Recorder • • FDA Agenda - G/18/02 4- Consideration to hear an a date from ro ert owners of Block 35. A. Reference and back round• At Loch, Loch .lewclers, c~:tllcd and requested to be on tl~e E,.nn agenda io update the commissioners as to how contracting l~~r the snow plowing wcttt dLU~ing the winter 2001/2()02 season ~tnd to talk about the property owners continued interest Ior parking and trash improvements on Block ~_5. I've attached ~:~ copy of the 2001 EUA activity report and * the items relating to this topic to refresh your memory. No action required. L~ • 2001 ECUNUMIC DEVELOPMENT ALJTHORITV' ACTIVITI' REPORT MEETING DA"1'E SLJL3.iEC~I~S ,ianuary 30, 2001 No action taken on the second DMRF application for 11 ~ West Broadway. No action taken to call GMEF No. 014 for late payment. March 15, 2001 Reviewed preliminary GMEF application from Integrated Recyclin~~ Technologies. Inc. Approved GMEF No. 018 for IRTI, a real estate loan, in the amount of $72,500. Loan at 6.5%, amortized over 30 years. balloon payment in ~ years. Loan fee $200. Collateral. ~~uarantees, and other condition rcciuiremcnts to be determined and prepared by EDA Attorney. Denied approval for second DMRF application for 11 ~ West Broadway. Completed work after the fact. not to set precedents. Applicant informed of appeal process. April 24. 2001 Public 1-Iearin~z and approved a~nendin~~ the Business Annual Meeting Subsidy Criteria for the Monticello EDA to include a Late Fee Policy. EDA Officers elected for 2001: President Bill Demeules Vice President Barb Schwientek Treasurer Rick Wolfsteller Assistant Treasurer Ken Maus Secretary Ollie Koropchak Accepted EDA 2000 Year-End Financial Statements and Activity Report. All existing GMEF loan paybacks are current. Approved extending the use of the approxiTrtate $150.000 balance of the DMRF pro;~ram for one year- refocusing attention on certain projects and authorizing staff to contact City Planner Steve Grittman to provide cost estimates for 2001 EDA Acti~•ity~ Report trash rcceptaclts and parking- and to hrin~T hack to the EDA for tiu-ther discussion. Authorized repayment of the Liqu~n• Funds in an amount of 10% ($77,000) of the GMEF cash balance. not to drop below- a cash balance of $-1U0-000. To he reviewed on an annual basis. Repayment per the EDA Business Subsidy Criteria. r Directed staff to contact le4~a1 consultant to begin proceedings to call the loan of T. ,i. Martin, unless T .J. Martin sets up an automatic payment process for the EDA Loan. May ??, 2001 .Approved DMRF No. 1 12 for 207 Pint Street (Thickpenny) in the amount of $5.3(( for facade improvements. Approved DMRF No. 113 for 205 Pint Street (City/Chamber) in the amo~.u~t of $2.365.6 for facade improvetn~nts and up to $500 for fee reimbursement. Authorized Chamber Director to a roach McCat•ty f pp or permission to paint portion of adjacent wall with DMRF funds up to a maximum amount of $1-000. Authorized Planner Consultant Grittman to proceed with site concepts, not facade improvements. for a portion ot` Block ;~ at a cost not to txct~d $1,800. To work with Public Works and downto~~~n business owners. Approved amending the EDA Bylaws stating the regular meetings of the EDA shall be held on the ~1`'' Tuesday of January, April, July and October. The annual meeting shall he in conjunction with the regular April meeting=. June 19.2001 Approved an additional $1,47 to DMRF No. 1 12 for removal of asbestos. Total amount of DMRF matchin~~ dollars is $6,841 plus up to $500 fee reimhtu'sement. y July 19, 2001 Authorized Planner Grittman to prepare a letter of intent from the EDA to the propert}~ owners of Block 3~ that 2001 EDA Activity Report would present them with the concept proposed by Grittman, Loch. and Flicker to <~et a commitment from them to work with the EUA far future improvements ~~ith the realization that 77% to ] 00% of the cost would most likel}' be picked up by the EDA. Grittman to meet individually ~~•ith those unable to attend a joint meeting. Approved extending the non-performance date of Au~~ust 29, 2001 to May 29, 2002 for DMRF No. 11 1 betty-een the EDA and VisCom, Inc. Reviewed preliminary GMEF application form EDMA Company. Approved GMEF Loan No. 019 for GW.i, I~I.C dba EDMA Company in the amount of $30-OOU, with terms of 20 years. 4.7J% interest rate, balloon in S years and loan fee of~$200. Collateral, guarantees, and other condition requirements to be determined and prepared by the EDA Attorney. Loan approval subject to SBA approval and Council ratification. Au~~ust 21- 2001 Report by Planner Grittman on interest of Block ;S property owners for revitalization of rear-parkin~~ entry areas. Tabled any action on Block ~i for further information from the Cite En<~ineer and Public Works Dit•ector. October 17- 2001 By consensus of the EDA and business owners present. the decision was to take no action on the parkin~~/trash improvements for Block _>> until 2002 when Broadway reconstruction project is completed. Business owners will meet to discuss contracting, for private party to plow and remove snow from the private property and alley, billing the City for a portion of the costs. EDA a~~reed not to amend the EDA Guidelines extending the DMRF boundaries but to encoura~,e anyone to present a plan to DAT and the EDA. November 13. 2001 Approved the Subordination A~~reement between Firstar Bank N.A- and the Monticello EUA. ^I-his associated with 2001 EDA Acti~'ih' Report the a royal to ext PP ~.nd the GMIMF balloon date and interest rate adjustment to ?% below prime for GMEF No. O10 (Blue Chip) on November S. ?000. • EUA Agenda - 6/1$/02 5. Consideration to review for discussion the relimina GMC;F a lication for Double t3ull Archer Brooks ,Johnson, Applicant. A. Reference and Background: GMF;1~' Loan Applicatic)n: See Attachment A. Request is for a `x_50,000 real property acquisition loan. Project Sun1111a1-y: B1"OOkS ,1o11I1S011 ti I1 CI Keltll I3ea171 each OWIl _50~~~ of Double l3ull Archery. The company is seven yea--s old anal currently lease space in F,lk Kiver and Monticello (,Tay Morrell). [)oublc I3u11 Archery designs and hakes ground blinds for the hunting industry, The company has a. Letter of Intent and/or Purchase Agreement to purchase Ior the Lake Tool, Inc. building located at 1347 Dundas Circle, Monticello. (1 Lave requested a copy). bake "fool, Inc. (Eric and CaI.1 Bondhus would lease hack less than 5,000 sq ft Ior a 1T11n1111L1I11 of 18 Illontlls.) Double 131111 plans to consolidate their two production lines into one facility at Dundas Circle. 1'he Icllder is ,lames Vathing, Signal. I3an1<, St. Louis Park, Minnesota. A request has been rn~-de for a letter of conlmitnlent front the Icllder as well as a letter stating Double Bull Archcr•y is a Cr•edlt WOI'tlly bt1s111eSS. Fol"t 11L'Ollllllg. ,IOh11 ClOmskl, Planner ~l'cchnician, has talked with Double. L3ull Archery --clative to sufficient. parking. and outdoor storage ordinances. ,iohrl gives the OK. The project. will create an additional S new full-time jobs inullediately (Ilk Rivcl•). The Monticello facility enlployecs 9 1`ull-time and one part-lime. See Attachment 13. Lake'I~ools, Illc., GMEF Loan No, 014 was a machinery and e(luiplllent ball in the ~:ullount of $87,500. Renlclllber the EDA authori?ed a direct payment. 1i-on1 their lender. CLII-rent balance. as o1 .lone 1, 2002, is $51,660.(5. USL;S AND SOIJRCES F.stilnated 11scs of Funds Acquisition Costs IOTA I 525 000 $_525,000 EllA Agenda - G/I S/02 • Estil,lated Uses of Fllnds Lender $380,000 GMEi~ $ 50,000 Ecl(lity (20%) 95 000 TOTAL $525,000 I'lcase review the application for compliance with the l~:l)A-GHEE Business Subsidy Critcl-ia. P[J13LIC PIJItI'OSl? CRITERIA: Must comply with lour or nlorc of the criteria listed below, criteria #l bcillg mandatory. C,REA~I ER MONTICELLO EN"l~h:RPRISI=. FiJND C;t1Illl~;LINL?S Job Goal: hive new full-til„c jobs to the City ol~ Monticello within two years of the benefit. date. Wage (.foal: At least 4.S of the new jobs must pay a wage of the higher of $9.00 per hour or at least 160"/<, of the federal minilluu„ wage, exclusive ol~bencfits, for individuals over the age of 20 during tl,e term of the assistance. See Attachment 13. AllnUal repOrtS al"e 1"egllll"CCI llntll tCl"nllniltlOn dale, 1'a11L1]'C t0 Illel'.t lob a11CI Wage goals regl.lire partial of full p~.lyn,cnt of the assistance plus interest. L I1,Creclseti the CoI11I,1lllllty tax Lased 1~:MV of land and building Ior p<lyable 2003 is $319,200. $283,500 for payable 2001. Property taxes are delinquent for first-half 2001 and 2002. Allows Ior payment of the delinquent taxes which is important to TIF District No. ] -21. 3 Factol-s: `fo assist all exlStlllg 111a11LIlaCtLlrlllg bL1sllless t0 CXpand their operations. Other lectors fin' consideration bllt no limited to: Nature of business (nlamlfactul•ing), no availability of service and product currently, potential adverse environmental efTect (none). and compatibility to the comprehensive plan alld 7.O111I1g pO11Cy (Yes, acceptable in I-2 zone.) 2 EDA Agenda - G/1 S/02 4. Used as a second~ll"y 50111"c(; t0 SLIppIC111eI1t COrIVC°11t1011~11 f111~1I1cL.ll~. "1'hc (-rMEF is ~t sccolldary source to tltc Signal Hai11<, the Icllder. 5, I Jsed as gap financing: L1sed to el7cotlraged acquisition of an indl.rstrial Ior sale br.lildillg while retaining both local business operations. 6. Used to assist other funds: In addition to the GMh~:I~, Other' funds Obtained are lender and equity. CTRh:ATER MON`hICELLO ENTERPRISE I~~t1ND PC)I,ICIES I. BUSINESS ELIGIBILITY hldusir"ial business: Yes. Located within city lilllits: Yes, Zoned I-2. Credit worthy e~(isting business: ror' determination by .iarncs Vathir7g, Signal Bank. (Bank C'ornmitnlcnt) $10.000 loan per each _job created. $10,000 X 5 = $_50,000. Or $>,000 per every $20,000 increase in property nlarl.et valuation, whichever i5 higher-. Stahle. ('riteria: $~O,OOfI II. F~'INANCIN(_T Mh:'THOD: C"ompanion Direct I.,Oall: All 511e11 IOans 171ay bC Slll)Ol"dlilatf:d t0 the pI'11I1a1`y ICnd(;1" lI requested by the primary lender. 'The <iMl/I' is leveraged and the lower interest rate of the GMI~.h' lowers the. elTectivc interest rate OI7 the entire project. Criteria: The GMEF takes a second position on the real property acquisition loan. III. IJSI:'S OF PRO(.-'h'EDS: Real. property acquisitiol7. • EDA AL;enda - 6/18/02 IV. T>/RMS nNl) (.'ONDI'l~lONS: L()c111 Sipe: Maximl.ull not to exceed 50% of the I°emaillill~ revolving lo~.ln fund balance. Cash balance as o1'December 3l, 2001, $790,782.40. Request: $70.000. Criteria: $50,000. Remaining balance thereafter, $740,782.40. l:cveraging: Mininlu-n 60% private/public non-CiML;I; Maximum ;0`% L?ublic (GMEr) Minimwn 10% equity of l~:Un loan Proposed l,cnder $ ~80,000(72.~i8%) (.iM1=,F $ 50,000 (9.52"/<,) l;quity $ 95,000 (18.09°~ "l'OTnL $_525,000 (99.99%) Loan Term: Real property acquisition loan maximum of 5-year maturity amortized up to 30 years. Balloon payment at 5 years. Criteria: As stated above. Interest Rate: Fixed rate not less than 2% below Minneapolis prime rate. 1'rinie rate pel' National Dank of Minneapolis on date of ED/1 loan approval. Prime raie .lone 18, 2002. Criteria: Minimum rate is fixed rate. l,oaii ree: Minimum lee of $200 but not to exceed l .i% of the total loan project. Paid by applicant to the L;Dn within live working days after City (.'ouncll approval of (.iMEP loan. Non-refundable. Loan fee may be incorporated into project costs. I:U~1 retains the right to reduce or waive loan fee or portion of loan iee. Criteria: Minimum fee of $200 or up to $750, due and payable not later than July 1, 2002. Prepayment Policy: No penalty for prepayment. Deferral 01` Payments: 1. Approval of the 1~UA membership by majority vote. 2. L:xtend the balloon if unable to refinance, verification letter from two lending institutions subject to Board approval. 4 EnA Agenda - 6/18/02 L~:ite Payment Policy: failure to pay principal or interest where due may result in the loan being immediately called. Interest limitation on guarar~tccd loans: Not applicable. Asstul~ability of~loan: None. Business equity r~equircrnents: Subject to type oI`loan; Board of I)ireciors will determine case by case, an~rlysis wider normal lendrng guidclirles. Collateral: I crsonal and/or corporate guarantees (requires unlimited personal guarantees) as per the CMI:~.}~' attorney. Non-perlormance: nn approved GMFf loan shall he null and void if funds are not drawn upon or disbursed within 180 days from date of ED~1 approv~.il. ,tune 18, 2002 EDA approval -loan hecumes null and void t)ecember 18, 2002. Non-perlormance extension: Not applicahle. Leg~:rl Ices: Responsihility ofthc (iMEF applrcant. B. Recommendation: Recommendation is to review this inform~rtion prior to the F.Dn meeting for discussion and potential questions. Consideration to ~rpprove or- Jerzy <.iMEF loan No. 0?0 is the next agenda item. C. Su ortin Data: Preliminary (iMEF application and job and wage-level goals. • GREATER MONTICELLO ENTERPRISE 250 EAST BROADWAY MONTICELLO, MINNESOTA • PRELIMINARY APPLICATION FOR LOAN APPLICANT: 3R°,KS .I''=r~~'~~ FIRM OR TRADE NAME: ~,'~ -~ $~`~~- ~` ~"' ~'``~'~ BUSINESS ADDRESS: `~°~ i h'~~ ~ ~ •~ '~ ~ ~ ~` 3 CITY/STATE: iM "`t" ~ ` r'` ZIP CODE: S ? ~ ~ TELEPHONE: (BUS.) ~- ~-~ ~ G`' `~' (HOME) DATE ESTABLISHED: ~~') `~~ 1 1 ~ ~ EMPLOYER I.D.# 0 ~ ~ ~ ~' ~' 3 ~ Z SOLE PROPRIETOR CORPORATION PARTNERSHIP MANAGEMENT • • NA TITLE OWNERSHIP PROJECT LOCATION r ~~~. ~ .( ~~NEW LOCATION TOTAL PROJECT COST ESTIMATE: $ PROPOSED USES: LAND $ EXISTING BUILDING 'I- tl ~ a CONSTRUCTION MACHINERY CAPITAL WORKING CAPITAL OTHER TOTAL USES: $ ~~5 won PROPOSED BEGINNING DATE:_ ESTIMATED COMPLETION DATE: O EXISTING BUSINESS ~~ RE VEST: AMOUNT OF LOAN $ ~ MATURITY & TE REQUESTED APPLICANT'S EQUITY LOAN PURPOSE IS~~L TITLE TO PROJECT ASSETS TO BE HELD BY: OPERATING ENTITY ~ ALTER EGO FARTICIPATING LE ER: st `^ ~ 1 Ifi ~ ~~ ~~ ~ 7 ?iw+ c~s Z.~ ~ ~ (Name) (Address), ~ ~,7~ ~~(( ,~-~" ~ 5 (Contact Person) (T_el~e .phone #) RESENT # OF F.T. EMPLOYEES: ~ PROJECTED # OF F.T. EMPLOYEES(within 2 years) F PROJECTED AVERAGE WAGE PER HOUR: ~ ~ ~ ~ E rk ADDITIONAL PROJECT INFO TI N: ~~ 5' I~ ~ ~ c' ~ '~'" ~ T r".~, ~~~~) APPLICANT SIGNATU DATE SIGNED: ~ ~ A / a L asa to 7632954404 at 06/14/2002 2:02 PM 001/001 GOALS OF BUSINESS RECEIVING ASSISTANCE - ~ EXISTING JUGS Please indicate number oFcurrent employees at each level and indicate the corresp ottdin~ benefit level. These j obs you expect to retain with relocation. Job Creation ~lourl Wa e Hourly Value Level of Voluntary Benefits S Full-time Part-time (Excl. benefits) Less than $7.00 $7.00 to $7.99 ~ $8.00 to $9.99 ~ ~ $10.00 to $11.99 3 ~_ $ l z.oo to $13.99 ~~ $1 x.00 to $15.99 ,~- • -~ ~ $16.00 to $17.99 2,. ~ $18.00 to $19.99 ~~ $20.00 to $21.99 ~~' $22.00 and higher 1 1 • C7 • GOALS OF BUSINESS RECEIVING ASSISTANCE NEW ,]OBS Please indicate number of additional employees at each level and indicate the corresponding benefit level. Number of new jobs created over the first two years of relocation. Job Creation Hourly Wade Hourly Value Level of Voluntary Benefits Full-time Part-time 3 ~_ y (Excl. benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.00 to $11.99 $12.00 to $13.99 $1 X1.00 to $15.99 $1.6.00 to $17.99 $18.OU to $19.99 $20.00 to $21.99 $22.00 and higher AUTHORIZATION RELEASING INFORMATION TO: Name of Financial Institution Street ~- L.~~ y ('~ M~ 5 ~ 3~ L City State Zip I hereby authorize any person to furnish to the Monticello Economic Development Authority, 250 East Broadway, PO Box 1147, Monticello, Minnesota 55362, any and all financial records, reports, statements, or other documentation r information in their possession regarding: ~W~t-- -~~-11 ~~~ ~~ Developer's name(s) Developer's address Upon presentation of this authorization or an exact copy thereof, you are directed to permit the personal review, copying, ar photostating of such records, information, and evidence and provide same to the Monticello Economic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire term of the loan. Dated : 4 ~° 20 ~ z.. ~~ Aut orized gnature One copy for each principal of a partnership or corporation as well as the entity itself. Monticello City Hall, SOS 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 MONTICELLO AUTHORIZATION RELEASING INFORMATION T0: ~L1 '"~~~ Name of Financial Institution Street ~ L~.,;~ P({ ~ X5.3 ~ z City State Zip I hereby authorize any person to furnish to the Monticello Economic Development Authority, 250 East Broadway, PO Sox 1147, Monticello, Minnesota 55362, any and all financial records, reports, statements, or other documentation or information in their possession regarding: ~..LL~ /~u~l kc Developer's name(s) r G z- Developer's address Upon presentation o£ this authorization or an exact copy thereof, you are directed to permit the personal review, copying, or photostating of such records, information, and evidence and provide same to the Monticello )acanomic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire term of the loan. Dated: ~ ~`' ~~' ~ Authoriz Signature One copy for each principal of a partnership or corporation as well as the entity itself. 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 553b2 • (763) 295-3170 • Fax: (763) 271-3272 MONTICELLO ~.__~_.-~ ~ clk~.'~u~ (~ T`~ ~ , It'~ar i--~'~ ~' It-'l.~ I~ ~ ! ~ `~T~ r J (~ ~ ~ oz-1s W:199s *..k 1~L~~z~'z~~r.1:~LV sc~rn~ ** os :29:36 4 ~ 1, ~ (Act~t.i~l/360 ) Pale 1 P<~yrr~zt # ~ Data ~ T.nL~ezes I F>ri.nc.i a1. ~ Balance ____________,_~__~_____.~ZSn.3_4..~~o ..~.-~So~Lg~la.___~..~______.__--- 6U 103/01%00 ~ Ei.500~ I $87500.00 I $8'1500.00 ~ ~`~ _..... ,~_.~~. 0 ._.~..'"~4.~~ ~ ._...~,.. 1.226.36 86;?73.64 ~'' dt~ 2 05 O1 00 467.32, 1248.80 85024.84 G~ ~ ~ / ~~/3 _ 3 UG U1 00 475.90 r~ 1240.1.2 83784 . G2 ?~ ~; ~ ~ 4 07/0]_ DO 453.83 ~/ 126Z . 29 82522.33 ~~ ~ . 5 08 0:). 00 461.90 ~' 1254.2:1 81268.11 ~{~,~ ~g' _~~,_~_ ~ ----____ 6 09 O1 00• 454 .88 / 12,51.2. 80006.8'7 1 _ /~_ 10 01. 00 433.37 ~ 1282.75 7$724.1? ---___ rr Il ~- U ,T 8 11 01. 00 440.64 / 1275.48 '179:48.64 . ! o I -#' 3 ~ ~ 9 12 O1 OU 4]_9.51/ 1296.61/ ..=~5}~2--:-B3f^ ~'. ~ XF1AK 20DD 4097.11. 1134'7.97 `76152.03 ~!z ~'/~ ~. 3 y ,~- x ~o of/o~/oi . 425.24 / lzs~ : ~s X4852 ,Lr~` , ~~` ~~ Q2 Ol/o1 4~t9.02 ~ 129~7.1a~ ~~.~65 D~ --._ ~rj~~o ( ~ ~~`~. ~ ]-2 03/01/01 311..c-1~. 1344.21.... _ ~~220 84 L{/~3oj ~. 3 ~ .3 ~`] 13 04/01./01 404.24 / .. :] 311..88... /0908 9~; 05/f~~L/.01.... 384 . p9 / _1332 .~03 E:9576 ..`•).~..._ .#' ~ l~ 1. 3 ~ `~'.~ ?~ ~~! p/ 15 06/01./01 389.44,1 1326.6868250.25 ~~ _ ~..G 07/01/01 369: G9 v .. , 1346.43 6690 ~ . 82. n O1 37 .48 / 1341., _.. _., «~/~ ~/ ~l~ 1. U 17 U8~01./ .. 64 6_,56 .18 .._ 1/01..... .366.97 4213 G3 ~ 1 ~ ~S (c> 9 D arc- ~/~`v 1 H l~ n._~.. ~11.~_... 9 .....10/01/01.. 3n7.82ri 1368.30 62844 73 _._ ~_ ,_ / ~~- 'O a ~ a C<' 20 11 O1/D1 .- 351.76 ~ 1.364.36 61~z80 37 ~ck+ _ulf~ 1 ~ .> ~ l _._..{}~~ -z 3/ar SSb,~- 21- 1~/O1'/07~ 33.3.02/' 1383.1U~ 60091.27 YEAR 2001. 4538.5$ 16054.76 60097.27 i/:~3/v~,.., ~('~~,:k~"' 22 01/01/02 _ 336,...38 / 1379.'74. 58"11.7.53 Cj~~ ~/I/a ~ ~~~% 23 02./01/02 3?_8.66 1187 ,46~ ~~;.33o.D7 A~,f1- 3~i ~o ,a-- .~sS~''~ 24 03/01/02 289.84 1426.._28 ... 55903 .'/9 ~~~( ~/,~.~~ ~ ~ 25 04/1/0?. 312.91 1403.21 59:500.58 ~,,~- ~ ~ ~'~:,~} r{~.~/~ z_ (~~~ (7 ~l,6 OS/01_/07_ 295.21. 14?.0.91. 53079.67 ~(3~~~ '~C,~~,. s ~~ (,-, .~ 27 66/01/02 297.10 , 41.:) . 02 x.1.560 : 6~5 28 07/01./02 279.83 1436.29 50224.36' 29 t78%;11/02 281.1'1. 1435.00 48789.36 30 09/01/02 2"/3 . U8 1.443.04 4'/346.32 31 1.0/01_/02 256.46 1459. G6 45886.66 32 _1.1./01/02 256.84 14:19.28 44427.38 33 :L?./0 ~ /02 240.65 147x1.47 42951.91 YF71R 2002 3148.03 1.7145.36 4295:!..91 34 01_/01./03 ~ 240.41 1-X75.71 41476.20 35 02/01/03 232..15 1483.97 19992.23 36 03/01/03 ...._,.... 202.18 151:1 : 94 381.78 _'29 37 04/U1/C3 21.5.37.. 1500.15 36077.54 38 05/01/03 200.30 1515.82 ~ 35461.72 39 06/01./03 198.49 :L517.63 339~k4.09 1'x0 07/01/03 1F33 - 86 1...53'2.26 3;x411_ . 83 41 08/01/03 181.42 1534.70 30877.13 42 09/01/03 ],'72.83 1543.29 29333.84 43 10/01_%03 158.89 1SS'7.23 ?.7776.61 44 1.1/01./03 155.47 1.560.65 2621.5 , 96 45 12/01/03 1.42.00 1574.1?. 24641.84 YEAR 2D03 2283.37 _18310. D7 24641.84 46 01/01./04 137.93 1.578.19 23063.65 47 02/01/04 1x9.09 1,8'7.03 21.476.62 48 03/01./04 11.2.45 1.603.6°7 19872.95 49 U~1/01./04 '-1..L.23 1FiU11.8~) ( :1.826E3.06 Monticello City Hall, SOS Walnut Street, Suite 1, Monticello, MN SS362-8$3 L • (763) 295-2711 • Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Mouticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272 I~.DA Agenda - 6/18/02 6. Consideration to a rove or den GMEF No. 020 for Double Bull Arche A. Reference and Back =round: Attcr review and discussion otthe preliminary application from Double 13u11 Archery, the EDA is asked to consider approval or denial o1~tlle request fora $50,000 GMLF loan. "l'he lender, 51i;I1i11 Iiallk, has been requested to provide a copy ol~thc Bank's commitment letter and a letter stating Double Bull Archery is an existing credit worthy business. First, the EDE1 needs to determine itthis GM. EF loan application from Uoubl4 Bull Archery will encotuagc economic development. Secondly, the F,L)f1 must determine if the proposed real estate acquisition application complies with the EDA Business Subsidy Criteria - GMF1; Guidelines. Lastly, the EDA must detcrrninc the amount, terms, and tee of the loan For approval. The City Council will consider ratification of the 1/DA's action for compliance o1`thc I:DA-GMI~:F Business Subsidy Criteria on June 24, 2002. If approved, the CiMEF will be disbursed at the closinb date yet to be determined. B. Alternative Action: l . A motion to approve <_~MEI~ Loan No. 020 for- Double 13u11 Archery, ii1 the amoc.ult of $50.000 with terra and conditions as recommc~lded at the meeting. Collateral, guarantees, and other condition requirements to be determined and prepared by the GMt?F attorney. 7'hc GMTF loan approval subject to Lender commitment and credit worthiness letters and Council ratification of EDA action. ?. A motion io deny GMLF Loan Nn. 020 for Double Bull Archery. 111ot1o11 t0 table any action. C-. NeCOIIIIIICnd~ltlon: Recommendation is for Alternative No, 1 wit11 terms and conditions as recomrnendcd at the meeting. Approval subject to lender commitment and credit worthiness letter and Council ratification of the EDA action. D. Su ortin Data: None. • r uA Al;enda - coil sio2 • 7. Consideration to review for discussion the relimina CMEF a licadon for Ta er's Inc. William Tapper, Applicant. A. Reference and Back =round: GMEF I,oal] Applicatiol]: See Attachment A. Request. is for a .p55,()()() I]1aC171I]CI"yIeC1LI1pI]1C11t loal]. I~glliplnent purchases arc to tale advantage of computer design software which interface with C'NC. egU117117en1. Pro}eet ~LLI7]I77aty: William Tapper and Barh Tapper each own _50`%o of 'l ~.ipper's ll]c. Tappet's Inc. is a privately owned corporation established in 19$4. Gcnereux I~ine Wood Products, lnc. 111a11L1faClL1I'CS Cllsto[I] Wo()(~e17 Cabll]els ~Or C017]merclal and resl(1e11t1a1 Llse. WCSl1lI11d I)istributil7g is a wholesaler of hrlydware for the cabinetry-maker industry. Both of these (:0111pcU71e5 arc a (Iivisiol] of Tappet's Inc. and arc located at 2l2 Chelsea .l-load, Monticello. F~ The lender is Steve i)omine, Stearns Bank. St. C:lolld. A request has been t7]ade lol- ~:i letter of commitmel7t l~roln the lender as well as a letter statil]g ~I,apper's lnc. is a credit wortl]y business. With tl]c purchase of the equipment an additional fi new full-time jobs will be created withil7 two years. Cul-rently, they clnploy _58 full-time people. Sce Attachment B. Tappet's Inc. received approval fol- two GMIi:F Loans. One is 1990, an $88,000 real estate loan, the. first (iMhh' loan approved by the 1/1)A. ~1nd in 199Ci, a $100,000 real estate loan for their building expansion. Both loans 17ave heel] paid off. I,oa]] closing, date expected in September, ?002. [IST:S AND SOUTLCES Estin7atcd l_)scs of Funds l~;xistit7~ I3uildin~ $ 12,920 M&H; $1 ~ i,400 Other $ 13,(~SO TO"I'AL PROJECT $210,000 I~,stin7atcd Uses ol'hut7ds Lender $124,000 GIVIEF $ _5.5,000 h;quity (20%) ~ 1,000 'T'OTAL $210,000 f:UA Agenda - 6/18/02 Please review the application for compliance with the l-;UA-GMEI'' [3usines5 Subsidy C'ritcria. CifZH.ATER MON"l'ICh:L,LO ENL~f:~:RPRISE hUNI) CiiJIDL;L,INES 1'[_JBLIC PI.JRPOSI:' CRITERIA: Must comply with lour or more of the criteria listed below, criteria # I being n7a~idatory. I . JOb Ci0G1I: ~Ix new ILLII-t1177C 1065 to t11C City of IVlonticello Within two years of the benefit date. Wade (_ioal: At lea5i 4.S of the t7ew jobs must pay a wake o1 the higher of $9.00 per hour, or at Ieast 160`% of the federal minimum wage, exclusive of benefits, for individu~:~15 over the ale of 20 during the terns of the assistance. Sec Attachment B. Annual reports are required until termination date. I{'ailure to mcct.job and wa~,c ~o~t15 require p~.trtial or full payment of the assistance plus interest. ?. Irtcrcases the con7t77w7ity tax based: EMV of land atul buildirt~ for payable 2003 is $ l ,4.57,000. $1,297, X00 for payable 2001. Property taxes are current. ~. 1~~actors: To assist an existing; n7anufact~.u'ing business to expand their operations. Other Iactors for consideration but no limited to: • • EDA Agenda - 6/I S/02 Nature of business (manuiacturing), no availability of service and pl"oducl currently, potential adverse environmental effect (none), and compatibility to the comprehensive plan and polling policy (yes, acceptable in I-2 gone.) 4. Used as a SCCOI1CfaI"y Solll"Ce t0 Sllpplefllent COnVelltlonal I111i111Clllg. The C'rMh;h' is a sccondarv source to the Stearns Bank, the lender. _5. Llsed cls gap linancing: Used to encouraged growth and job creation within Monticello. G. tJsed to assist other funds: In addition to the GMEF, other funds obtained al'e lender and equity. GREATER MONTICELLO ENTERPRISE FtIND l'OLICIk~.S I. Bt1SINESS ELIGI131Lk'I Y Indusil'ial business: Yes. l~ocatcd within city limits: Yes, lrn7cd I-?. Credit ~vol"thy existing h(ISlness: h()I" deterllllnatl()17 by Steve L)()111117e, ~tt:cll'17s 13a17k. (I3allk C01171111t111CI7t~ $10,000 loan per each _job cleated. $ ] 0,000 X fi = $fi0,000. Or $_5,000 per every $?0,000 increase in property market valuation, whichever is higher. Stable. Criteria: SS_5,000 (3(1%~ of cost of equipment.) II. h'1NANCING ME~I~HOU: Companion Direct Loan: All SL1C17 IoaI7S Illay be SLlbo1"dlnateCl LO the pl'1177dI'V lelldel' lI requested by the primary lender. 'I he (iMFF is leveraged and the lower interest 1-atc of the GMI-',I"' lowers the effective interest rate on the clltirc project. Criteria: The GMEF takes a second positiun un the machinery and equipment loan. • III. t1SES ()1~' PROCEEDS: Machinery and cquiplnent. IV. TERMS ANI) CONDITIONS: 1?UA A~cnda - G/l8/02 Loan Sipe: Nlaximutn not. to exceed SO°/~ ofthc remaining revolving loan i~urul balance. Cash balance as of ,lone 18, 2002, $740,782.40. Itequcst: >5,000. Criteria: yi~5,000. Remaining b~.ilallce thereafter, $685,782.40. I,ever~:lging: Minilllulll (i0% private/public non-GM1/l' Maxirnulll ~0% public ((iMl-i;l~') Minimum 10% eduity of EDA loan Proposed bender GMEF I~.quity ~1'O'fAL $124,000(59.04%) 55,000 (26.19%) i 1,000 (14.76%1 $210,000 (99.99%) Loan "I,crm: Personal property term not to exceed life of ct)uipr)lent (generally S-7 years). Criteria: As stated shove. Interest Rate: Fixed rate not less than 2% below Minneapolis prime rate. Prime rate per National Bank of Minneapolis on date of l/'UA loan approval. Prime r~.lte June 18. 2002. Criteria: Minimum rate is fixed rate. Loan I'ee: MIIll17111111 fee Ol $2OO but llot t0 eXCCLCI I ,5`% of the total loan project. Paid by applicant to the EDA within five working days alter City Council approval oI~CMEF loan. Non-refundable. Lo<:ln 1`ee may be incorporated into project costs. EDA retains the right to reduce or waive lo~.ul fee or portion of loan 1'ee. ("riteria: Minimum fee of $200 or up to $$25, clue and payable not later than July t, 2002. Prepayment Policy: No penalty for prepayment. • EDA A~cnda - 6/1 S/02 Deferral ol•Payments: 1. Approval ol'the EI)A membership by majority vote. ?. Extclld the balloon iI`unable to refinance. verification letter Ii-orn two lending institutions subject to Board approval. late Payment Policy: 1~'ailure io pay principal oI• intel-est wheel due play result in the loan being immediately c~.llled. Intel-est limitation oll guaranteed loans: Not applicable. Assl.ullability o1~ loan: None. Business equity rcq(.tiremerlts: Subject to type of loan; Board of })hectors will dCter1111nC Case by CasC, aIlillySlS Lll1der llorlllal lenditlg guidclitles. Collater~ll: Personal and/or corporate gual'antees (rec]uires unlimited personal guarantees) as per the GMF:1•' attorney. NoI1-pel'fol"n1a11Ce: All approved CiMI~,}~ Ioiln sl]aII be llllll al1d Vold if fllllds cll'e Ilot dr~.twn upon or disbursed within 180 clays ti•om date of EDA approval. June l8, 2002 Ii;DA approval -loan bc~uines null and void Decemhcw 18, 20112. Noll-pCI"f01•I11aI1GL' extel1s10I1: NOt al?plicahle. Legal lees: Responsibility of the GMl~:h' applicant. 13. Rccornmendation: Rccolllnlendation is to I•eview this inlol-nlation pl-ior to the EDA rneeting for disct.tssion and potential questions. Consideration to approve or deny GMI~:I~' loan No. O21 is the nexi agenda item. C. Suhnortin~ata: Preliminary CiMI•;1~' application and job and wage-level goals. • ~ GREATER MONTICELLO ENTERPRISE 2S0 EAST BROADWAY MONTICELLO, MINNESOTA PRELIMINARY APPLICATION FOR LOAN APPLICANT: /~~~~,~~.,.~ J~~F~r -- ~-- - - -_ - FIRM OR TRADE NAME: j~• Gr:r Nc.. BUSINESS ADDRESS: ~I.Z 1-~/.r~c~. Rc: _-_ ~ _ _ CITY/STATE: /yI ~.v~r c//, ~ ZIP CODE: .~.s3~z TELEPHONE: (BUS.) 7GJ~- z9s-- ~2Z (HOME) DATE ESTABLISHED: / EMPLOYER I.D.# Y/- /'/~~35~ SOLE PROPRIETOR CORPORATION PARTNERSHIP MANAGEMENT NAME TITLE OWNERSHIP ~ /. ~..~ 7`.~ -r Pres, cQe~ ,Sv 7 v PROJECT LOCATION: Z~~ ~ ~ ~~- ~~ NEW LOCATION TOTAL PROJECT COST ESTIMATE: $ ~!©, ~®~ PROPOSED USES: TOTAL USES: $ a 1 u, pow _.~ LAND $ EXISTING BUILDING 12, 92 D _ CONSTRUCTION MACHINERY CAPITAL /$~i fyDD WORKING CAPITAL OTHER /~, ~~~ EXISTING BUSINESS REQUEST: AMOUNT OF LOAN $ •S~Ud D MATURITY & TERMS REQUESTED Syr. __ APPLICANT' S EQUITY ~ ~o LOAN PURPOSE ~ ...F~+ ~ PROPOSED BEGINNING DATE: ~r,;oi~+~f ~~~'/ ~~fv - dLl, j,(u~- --~.~•s-~~~~.~~ /`Y°°`~ ESTIMATED COMPLETION DA 1~: ~4T`d Lr~r' ~ or~Z ~ TTTLE TO PROJECT ASSETS TO BE HELD BY: x OPERATING ENTITY ALTER EGO PARTICIPATING LENDER: e,~r..r^n/,f' ,~rx.N~ y/9/ fzc.°^'~ ~ /r P~- Bsa~~~.3l~ ( (Name) (Address) ~- C °+~~' ~ /mN ~r"6 3o J. (Contact Person) (Telephone #) PRESENT # OF F.T. EMPLOYEES: ~~ PROJECTED # OF F.T. EMPLOYEES(within Z years) PROJECTED AVERAGE WAGE PER HOUR: ADDITIONAL PROJECT INFORMATION: APPLICANT SIGNATU ~~ DATE SIGNED: C.r' /? /r ~,~f"u./0.~-~ t/•~, _~ JC Div ~~ r^ ~a.c ~.. w,~~ G /'J C. g,ya rJ r~r„Ti~~ (;U:~LS ()F 131, 51~i1~:tiS ItEC:E1V1~(; .atiS15T.alVCE Nf:W .1()135 I'luusc indicaw numhcr oC additional c:mpluy4cti at each le~~cl and indicate the correspundin~~ hcnulit Ic~cl. Numhcr ot~nc~ti john crcatcc! c~~•cr the lir5t t~~~~ years ofrelocation. .luh t'roation {-fourl~ Wa~~c Hourl~~ Value Level of Voluntary Benefits (S) Dull-time fart-time (Excl. benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 ~_ _ $ 10.00 to $1 1.99 ~~ ~ _ $1-t.Ol)to$1~.99 ~ ~ / $1 G.00 to S 17.99 - $18.00 to $1 ~>.~)~) ~_ $'0.00 to S~ I.99 '~3 $~?.00 an~i hi~~her ~S/ L~ AUTHORIZATION RELEASING INFORMATION T0: J ca.YNs' ~c.~,v Name of Financ dl 1nsLlLUtlon Street ti/ ~ ~d~ City State zip • I hereby authorize any person to furnish to the Monticello Economic Development Authority, 250 East Broadway, FO Box 1147, Monticello, Minnesota 55362, any and all financial records, reports, statements, or other documenta~t'on or information in their possession regarding: /G.,o~~~r ~L , D oper's name(s) Developer's address Upon presentation of this authorization ar an exact copy thereof, you are directed to permit the personal review, copying, or phatostating of such records, information, and evidence and provide same to the Monticello Economic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire term of the loan. Dated: 'Au horized Signature One copy for each principal of a -. partnership or corporation as well as the entity itself, ~tanticello City Hall, Zi0 E. Broadway, PO Box 117, Monticello, ~1~ X536_'-92~i • 1613) 295-371 I • Fax: (61?) "_9~-x-1113 Qtticz of Public Wurks, 909 Golf Course Rd., :Monticello. ~i~i ij3(~2 .161_') _'95-3170 • Fax: (613) 271-,37' MONI'~CELLO AUTHORIZATION RELEASING INFORMATION TO : Gc~rN-~' ~GCN K Name of Financial Institution ~' r NAP S • ~' a. 7~3 ~ 4 Street City State ZiP I hereby authorize any person to furnish to the Manta.cella >~car,wui~ Development Authority, 250 East Broadway, PO Sox 1147, Monticello, M' ota 55362 any and all financial records, reports, innes , statements, or other ~c possession regarding: /~ Deg umenta~on or information in their ~e~f ~u , aper's name(s) z ~ ~ ~ ./rte ~- R ~ G ~ ~.~./~ ~ r~ ..5.s~3~ z Developer's address same o Upon presentation of this authorization or an exact copy thereof, you are directed to permit the personal review, copying, or photostating of such records, information, and evidence and provide t the Monticello Economic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire ter of he loan. / ~ 4" ' ~ , ~ Dated: ~,~ Autho ed Signature • One copy for each principal of a partnership or corporation as well as the entity itself. Monticello City Hall, 250 F. Broadway, PO Box 1147, Monticello, MN 55362-9245 • (612) 295-2711 • Fax: (612) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (612) 295-3170 • Fax: (612) 271-3272 MONTICELLO AUTHORIZATION RELEASING INFORMATION TO : ~a.rNr ~4.n~ ~C Name of Financial Institution ~~~~r~ ~ ~~~~~~~~~~~ ~ r/ G~~P S ~ ~ d- x 7.~3 ~ Street f ~ ~ ~ az City State Zip I hereby authorize any person to furnish to the Monticello Economic Development Authority, 250 East Broadway, PO Box 1.147, Monticello, Minnesota 55362, any and all financial records, reports, statements, or other documentat'on or information in their possession regarding: %~. ~~Y ~ ~ . Developer's name(s) z ~~. C~1rG ~.- R - ~ -~ u.~~ ; r~ ss 3~z Developer's address Upon presentation of this authorization or an exact copy thereof, you are directed to permit the personal review, copying, or photostating of such records, information, and evidence and provide same to the Monticello Economic Development Authority. I, the undersigned, acknowledge the said above information may become public. This authorization shall be valid the entire term o the loan. Dated : ~ '~ ~- Autho ed Signature One copy for each principal of a partnership or corporation as well as the entity itself. Monticello City Hall, 2S0 E. Broadway, PQ Box I I-17, Monticello, SIN ~~36~-9rdi • 161_')'9-'_7l l • Fax: 1bL) ~9~--1-10-i Oftice of Public Works, 9l)9 Golf Course Rd., Monticello, SIN 536' • 161'1'_95-3170 • Fax: 161'_)'_71-3'?73 MONTICELLO EDA Agenda - 6/18/02 $. Consideration to a rove or den GM1+~F No. 021 for Ta cr's Inc. A. Reference and Lack round: After review and discussion of the prclinaillal•y application from Tipper's Inc, the 1/DA is asked to consider approval or denial of the request Ior a $55,000 GMI~.I~' loan. ~I~lac lender, Stearns I3anl:, has been requested to provide a copy ol~the Bank's aallunitnler)t letter and a letter staling ~l~apper's lnc. is an existing credit worthy business. 1~'irst, the LUA needs to deterlrline if t}als CiM1-/1~' loan application 1i"olla 'l apper's lne. Will encourage economic development. Secondly, the F.r)~1 must determine if the proposed 111i1C1a111C1-y atld eglllpnlellt aCgLIlSltl(~Il ~.lpplication complies with the EDA I3usitless Srlbsidy Criteria - GM11-~ Guidelines. Lastly, the I:DA must deterlnirle the arnoullt, terms, alld fcc of the loan for approval. "I'hc City Council will consider ratification of the EDA's action for compliallcc of the N:l)n-GMI:F Business Subsidy Criteria on June 24, 2002. If approved, the (_;MEF will he disbursed at the closing date yet to he dcternlilacd. r ~ 13. Alternative Action: A motion to appl-ove GMl/'1~ Loan No. 021 for Tipper's Inc. iIl the amount of X55,000 Wlth tel'lll a11d Colldltl()nS as recommended at the meeting. C"ollater<tl. guarantees, and othcc condition requirements to be determined and pl-cpared by the GMI:I~' attorney. 'rhe CTMEF loan approval subject to 1_,cruier commitment arld cl-edit Worthiness letters and Cor.ulcil ratification of h:C)~1 action. 2. ~1 motion to deny GML?I; Loan No. 021 for Tipper's Inc. _i. A motion to table any action. ('. Necommcndation: 1Zcconllllendation is for Alternative No. 1 with tcl-r11s and conditions as recommended at the meeting. Approval subject to lender commitment and credit worthiness letter and Council ratification of tllc h,UA action. U. Su ortina Data: None. EUA Agenda - G/18/02 9. Executive Director's Rc ort. Seem to ri.u~ ot.it of tune. IZep~rt at meeting. • C] MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY MONTICELLO GREATER MONTICELLO ENTERPRISE FUND (GMEF) Balance Sheet December 31, 2001 ASSETS Cash in Bank $790,782.40 Notes Receivable - Tapper, Inc. $ -0- Notes Receivable - Muller Theatre $ -0- Notes Receivable - SMM, Inc. $ -0- Notes Receivable - Aroplax Corp. $ -0- Notes Receivable - Custom Canopy, Inc. $ -0- Notes Receivable - Standard Iron $ -0- Notes Receivable - Vector Tool $ 39,369.58 Notes Receivable ~ Tapper, Inc. $ -0- Notes Receivable - SELUEMED $ 20,467.90 Notes Receivable - T J Martin $ 60,097.27 Notes Receivable - Mainline Distribution $ 92,569.07 Notes Receivable - Aroplax Corp II $ 94,643.96 Notes Receivable - TCDC $ 82,243.72 otes Receivable ~ IRTI $ 72,192.02 otes Receivable - GWJ,LLC $ 29,777.68 Notes Receivable - VisiCom $ 9,741..42 Appropriations Receivables - 2001 $ -0- TOTAL ASSETS FUND E UITY l 291 885.02 Fund Balance Reserved for Participation Loans (Economic Development) TOTAL LIABILITIES AND FUND EQUITY * 2001 transfer to Liquor Fund $77,000 Original Liquor Fund transfer to EDA $383,000. 1 291 885.02 $1,291,885.02 April 26. 2002 Bruce and Cynthia I lamond P.U. Box 488 Monticello, MN 15362 Re' approved DMRF Grant No. I I I Dear Bruce and Cindy: On behalf•of the Economic Development authority in and tier the City of Monticello. Minnesota. this letter is written to remind you that DMltl~ Grant No. I I I shall become null and void if funds are not drawn or disbursed by May ?9, 2002 (the non-perti~rnrutce date). as you recall, the 59,000 matching ~~rant and up to $100 tee reimbursement for the exterior work un the building located ? I Z/? 16 West [3roadwa~ was initially apprOVed by the EDn on August ?9, 2000. 'I•he non-pcrtitrmance date was extended nvicc by the EUA. DMRF Loan Nn. I I I in the amount of $ I O,G44 for the interior work closed and was disbursed on April 10. 2001. In a letter dated I~ehruarv 13, 2001, it stated you planned on completing the exterior work in the summer and submittin~~ for the matchin<~ grant funds by au~~ust ?001. 4 If the exterior work has been completed, please contact Pam Campbell, Chair of the Uesi~~n advisory ream (DA"I'). 763-875-2107, for an assessntcnt of the completed exterior improvements. Accordin~~ to the DMRF C;uidelines, the EDA shall no[ disburse approved DMRF without a written acknowled~~mcnt frorn UA'1-that construction of the intprovrments are complete and comply with applicable desi~~n ~~uidelines and all codes and ordinances. See attached Dn•r Review nu~~nst 2-I. 2000. Secondly, the EDn shall not disburse approved DMRF (~~rants and reimhurserttent) without certified documentation of actual payment of costs of the improvements and completion of the improvements. With the non-perfitrmancc date of May 29, 2002, fast approachin~~ and with the decision of the EDn on April 23. 2002, to discontinue the DMRF program: it is important to finish up these details for disbursement by Mav 29, ~00~ - Should you have any qucstictns. please call me at 7(13-271-3208. Sinccrcly. ECC)NOMIC DEVELUPN1EN'I• a[1T1IORI"I'Y IN nND FOR I•I IE CI I Y OF MON-I.1C1:LL0. MINNESO`I"A `~ olre I:oropcha~: L~x~cntive Director attachment ~: EDn 1=ile Monticello City Hull, 50S Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4104 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (76.3) 271-3272 MONTICELI.O Design Advisory Team Review • Date August 24,2000 Team Members Present Ron Hoglund, Susie Wojchouski, Mike Cyr, Amanda Gaetz, Pam Campbell Team Members Absent Gail Cole Ex-OfTcio Members Present Ollie Koropchak, Applicant Present Bruce Hamond Property Uwner Bruce and Cindy Hamond Building Address 2l4 West Broadway Sketch of Proposed Facade Improvements: See attached Improvements in conformance with the Design Guidelines: All improvements listed in the report by Bob Claybaugh are in conformance with the Design Guidelines. Improvements in non-conformance with the Design Guidelines: On the applicant's materials list vinyl siding is suggested as a possible material for the exterior of the building. The Design Advisory Team cannot approve the use of this material as it is completely out of character for the age of this building and runs contrary to the Design Guidelines. However masonite is also listed as a possible exterior material. This is a wood product, that looks, feels and acts like wood and would be far superior aesthetically than vinyl. In the applicant's list of prices, vinyl and masonite are the same, Please note: The DAT August 2, 2000 minutes under number 4, the word masonry is used incorrectly. It should read masonite. Desigu Advisory Team Recommendation: To approve the application with the provision that masonite, not vinyl siding be used. Comments: This building on Monticella's main street is one of the oldest and certainly worthy of this rehabilitation. In many small towns these clapboazd buildings burned within a few years of being built. In many cases they were replaced with brick structures which are less likely to burn. Monticello has 3 of these clapboard buildings on the Z00 block of West Broadway, two of which are • owned by the Hamonds. The owners are to be commended for their efforts in the revitalization of historic downtown Monticello. _ u Replace existing storefront with new wood-framed storefront with center entry, Add an entry and display window on the west facade. Add new stripped fabric awning over new storefront (not shown). Awning should start at top of transom windows and extend to the edges of the storefront opening. Remove second floor window shutters. Move air-conditioning unit and heater vent to the west building facade. Remove existing siding and replace with new painted wood siding, Reconstruct wood cornice. Commercial/Residential Building 212 West Broadway, Monticello, Minnesota CH-02 Apr. 10, 2000 CCLAYBAUGH PRESERVATION ARCHITECTURE INC Proposed Renovation Remove front door and access stair to the second floor. COMMERCIAL PARTNERS TITLE, LLC 4 8 3 3 ,~ ESCROW ACCOUNT WELLS FARGO BANK MINNESOTA, N.A. 330 SECOND AVENUE SOUTH MINNF=APOLIS, MN 56479 SUITE 820 17-1-910 5/20/2002 MINNEAPOLIS, MN 55401 ;; PAY TO THE - ORDEROF Monticellq EDA ~ ** 39,127.72 Thirt -Nine 'T'housand Qne Hundred Twenty-Seven and 72/100**************************~ B DOLLARS Monticellq EDA - MEMO II'048331~n' x:0910000 i9~:3'92^340 X5311' COMMERCIAL PARTNERS TITLE, LLC MontSiCellaC~UAT 5/20/2002 /~+$ 3 ~ ]. 17808 39,127.72 WFMASTER • 39,127.72 ~l ~-C~ b ~' lam- 0 @-'Y'~~