EDA Agenda 01-30-2008 (Special Meeting)AGENDA -SPECIAL MEETING
CITY OI' MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, January 30, 2008 - 4:45 p.m.
Academy Room -SOS Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Dan Fri.e, Treasurer Bill Tapper, Bill
Fair, Bob Viering, and Council members Clint Herbst and Wayne Mayer.
Staff EDA Executive Director Ollie Koropchak, Secretary Angela Schumanzz, and Assistant Treasurer
Tom Kelly.
1. Call to Order.
2. Roll Call.
3. Reading and approval of the January 16, 2008 City of Monticello EDA Minutes. (Not available)
4. Approval of the EDA bills and communication.
5. Report of the Executive Director.
6. New Business:
A. Consideration to adopt a resolution awarding the Sale of Public Project Revenue
Refunding Bands, Series 200$A (City of Monticello, Minnesota Lease Obligation)
• 7. Adjournment.
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EDA Agenda - 01/30/08
4. A royal of the EDA bills and comnriunication.
A. Reference and back round:
Attached is one EDA invoice for fees associated with the public meeting recording of the EDA
meeting of January 1 b, 2008, by Jon Mellberg in the amount of $70.00. This expenditure has
been coded to the EDA General Fund -General Public Information since the commissioners
agreed through a motion at the December 18, 2007 meeting to televise the EDA meetings.
Secondly, Kitty Baltas, Community Center Director, requested the EDA commissioners
authorize the payment of all future recordings in advance. With the regular meeting of the EDA
scheduled far the second Wednesday of the month, Jon Mellberg, who is hired via contract
service is not available to record. Therefore, a community center employee with training is
scheduled to record the EDA meetings beginning February through May. This employee is
expected to be on maturity leave mid-May and at which time, other recording options will be
reviewed. Although the community center employee is providing a service to the EDA, the
expenditure is a community center payroll expense resulting in the need to coincide an
authorized EDA expenditure with the city payroll cycle. The fee for contract person is $70 per
meeting recording and the community center employee expenditure is consistent with the wage
level of the employee at $12.00 per hour.
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B. Alternative Actions:
1. A motion to approve the invoice of $70 for EDA services associated with recording of
the EDA January 16, 2008 meeting and to pre-approve payment of future services
provided by a community center employee associated with recording of the EDA
meetings subject to review by the EDA Executive Director.
2. A motion to approve the invoice of $70 for the EDA service associated with retarding
of the EDA January 16, 2008 meeting and to deny pre-approval of future retarding
service expenditures.
3. A motion to deny approval of the invoice for $70 and deny pre-approval. of future
recoiling service expenditures
4. A motion to table any action.
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EDA Agenda - 01/30/08
C. Recommendation:
Staff recorr-rnends Alternative No. 1 as the EDA agreed via a motion to televise the EDA
meetings for the purpose of public information and to accommodate the need to coincide with
the city payroll cycle.
D. Supporting Data.
Copy of January 16, 200$ recording invoice.
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CHECK REQUEST
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FROM: Kitty Baltos, Carnmunity Center Director
CHECK AMOUNT: ~ ~S_ oil
REQUEST DATE: ~ ~~ ~ o
CI~ECK TO: p~3~0
ADDRESS:
JON MELLBERG
412 West Sixth Street
MQnticellq, MN 55362
REASON FOR REQUEST: Public Meeting recording on
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EDA Agenda - 01/30/08
5. Re ort of the Executive Director.
a) Semi-annual TIF payments have been determined for issuance of checks to developers.
These payments were approved by the previous commissioners in accordance to the terms and
conditions of each Contract. The amount of the semi-annual (Feb 1 and August 1 on each
year) payment is determined based on the amount of tax increment per district paid to the EDA
by the County and via the terms and conditions of each Contract. A copy of the checks will
be included in the February 13 EDA agenda for informational purposes.
b) Business Subsidy Reports to the State are due April 1, 2008.
c) I attended the Economic Development Association of Minnesota (EDAM) Conference
January 17/18. The sessions I attended were as follows: 1) Best Economic Development
Marketing Campaign (City of Faribault). 2) Sustainable Development: LEED and GreenStar
Programs. 3) Alternative Energy; Elk River -Energy City. 4) Alterative Energy: Legislative
Update. 5) Developing your Successful Business Retention and Expansion (BR&E) Approach
6) Best Economic Development Initiative. Keynote lunch speakers: Dan McElroy,
Commissioner of DEED. Elwyn Tinklenberg, Tinklenberg Group, talked about transportation
and transit programing and funding. Conference provides fresh ideas to consider in economic
development planning and allows for networking.
d) Next regular meeting of the EDA is Wednesday, February 13, 2008. The EDA will start to
review policies and guidelines for possible amendment and general information.
. e) Met with Marshall Smith, new Hospital Administrator, on January 23. Scheduled to meet
with Kraig Gunwall, Business Banker, Wells Fargo, on January 25 and scheduled to meet with
Wayne Elarrz, Allied Properties/Terra General Contractors, on February 1.
~ Fallaw-up letter to Brian Walker -Administrative Costs Shortfall.
g) HRA Mission Statement -Informational purposes only.
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5 ~~
MONTICELLO
Mr. Brian Walker
WRE Properties, LLC
6551 Jansen Avenue NE, Suite 208
Albertville, MN 55301
January 25, 2008
Re: Certificate of Completion and Administrative Costs Shortfall.
Dear Mr. Walker:
This letter addresses three sections of the Purchase and Redevelopment Contract dated April 11 ,
2007, between the Housing and Redevelopment Authority (HRA) in and for the City of Monticello and
WRE Properties, LLC.
Per the Contract, ARTICLE N, the Redeveloper must substantially complete construction of the
minimum improvements by December 31, 2007, and the construction of the minimum improvements
shall be deemed to be substantially completed when the Redeveloper has received a certificate of
occupancy issued by the City of Monticello for the minimum improvements. The Building Department
issued a certificate of occupancy an December 20, 2007. Although the Certificate of Completion is
issued in accordance with the Contract, please note that the landscaping and some site work have not
been completed per the approved PIans and the Otter Creek Declaration of Covenants. This is
recognized as an unavoidable delay -seasonal construction period. The original Certificate of
Completion is being recorded at the Office of the Recorder of Wright County by the staff of the
Authority.
Secondly, per the Contract, Section 3.9, the Redeveloper is obligated to pay such administrative casts
shortfall within 15 days after receipt of a written notice from the Authority containing evidence of unpaid
costs. Attached is a summary of administrative costs (Ehlers & Associates and Kennedy & Cxraven)
and aprint-out from the City Finance Department. Please note the application of the $10,000 deposit
and the subtraction of administrative costs. Therefore, as of January 1.6, 2008, the outstanding balance
of the administrative costs is $5,875.45. Please remit this amount to the City ofMonticella Economic
Development Authority (EDA), 505 Walnut Street, Suite 1, Monticello, MN 55362.
Brian, should you wish to discuss the outstanding balance with the commissioners of the EDA, the next
regular scheduled meeting is Wednesday, February 13, 2008, 6:00 p.m. at the Monticello Community
Center and please don't hesitate to call me at 763-271-3208.
•
Monticello City Hall, 505 Walnut Street, Suite I ,Monticello, MN 55362-$83l • (763) 295-271 (• Fax (763) 295-4404
Office of Public Works, 909 Golti Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax. (763) 27 L-3272
Mr. Walker
January 2S, 2Q0$
The Authority is proud to have Walker In-Store relocate and grow in the City of Monticello.
Congratulations on your new facility and we look forward to hosting a community open house.
With regards,
CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
`~~ ~
Ollie Koropchak
Executive Director
Attachments
c: TIF District No. 1-3$ File
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2
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Mr. Walker
January 25, 200$
SUMMARY OF ADMINISTRATNE COSTS
Deposit -
February 2, 2007
Expenditures -
Legal Fees, Kennedy & Graven
March 21, 2007
June 06, 2007
June 20, 2007
July 16, 2007
August Z9, 2007
December 07, 2007
December 07, 2007
Subtotal Legal Fees
$ 2,353.50
$ 2,2b5.75
$ 757.25
$ 254.25
$ 2,110.10
$ 115.00
$ 19.60
$ 7,875.45
Financial Consultant, Ehlers & Associates
May 10, 2007 $$,000.00
Subtotal l financial Consultant $ 8,000.00
Total Expenditures $15,875.45
Administrative Cast Shortfall (Outstanding Balance)
January 16, 2008
•
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$10,000.00
$ 5,875.45
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Mission Statement
To increase the tax base, to create jobs at a sustainable wage-level, and to maintain a
spectrum of housing annix within the City of Monticello, Minnesota.
Purpose
To coordinate, facilitate, and implement proposals and commitments to undertake development and
redevelopment consistent with the objectives set forth in the Central Monticello Redevelopment Project
No. 1 Plan and the Comprehensive Plan of the City of Monticello.
Goals
To provide a service to developers that is user-friendly and professional.
~J
2. To maximize the opportunity far development and redevelopment by private enterprise.
To provide increased employment opportunities through permanent businesses located in the
area.
4. To acquire and remove buildings that are structurally substandard and/or buildings that are
economically or functionally obsolete and infeasible of being rehabilitated.
5. To strive to accomplish the optimum quality of development for the project through site planning
and landscape architecture, the treatment of open space, building design, the use of materials,
scale, appropriateness, and functional utility.
6. To accomplish convenient and adequate parking to serve the needs of the area.
7. To establish and to promote development incentives to facilitate new industrial construction on
vacant land.
Ta develop high density housing in immediate proximity to public and commercial facilities.
9. To provide adequate streets, utilities, and other public improvements and facilities to enhance
the area for both existing and new development.
10. To establish and to promote renovation/redevelopment incentives to foster a vibrant core city.
•
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EDA Agenda - 01./30/08
b. New Business•
A. Can ideraton to adopt a resolution awarding the Sale of Public Project
Rev_enue_Refu_ nding Bonds, Series 2008A (City of Monticello, Minnesota
Lease Obligation).
A. Reference and background:
THE EDA RESOLUTION IS NOT AVAILABLE FOR DISTRIBUTION
WITH PACKET. SEE SUPPORTING DATA.
The EDA is asked to adapt a resolution awarding the Sale of Public Project Revenue
Refunding Bonds, Series 2008A (City of Monticello, Minnesota Lease Obligation).
This resolution contains the terms of the sale of the bonds and more specifics.
At the EDA meeting of January 16, 2008, Todd Hagen, Ehlers & Associates,
presented the results of the bond sale. The low bidder of the $6,180,000 Public
Project Revenue Refunding Bonds, Series 2008A was Banc of America Public Capital
Corp, Troy, Michigan, at a true interest rate of 3.2003%. With the interest rate of the
old bonds at 6.23%, Mr. Hagen projected a total savings of $287,760.
The EDA commissioners adopted a resolution authorizing acceptance of proposal for
the Sale of Public Project Revenue Refunding Bonds, Series 2008A (City of
Monticello, Minnesota Lease Obligation). The January 16 resolution of acceptance
was necessitated because the commitment letter received from the low bidder, Banc of
America, requested a private placement of the EDA refunding bonds. The commitment
letter eliminates the elements typically required of a public sale oflease-revenue bonds,
such as a trust indenture, trustee, or paying agent. Therefore, the City Council is asked
to adopt a resolution on January 28, 2008 which. supercedes in its entirety the city
resolution adopted January 14, 2008.
The Financing Documents identified within the EDA resolution for approval and
authorization to execute include the:
a) Amended and Restated Ground Lease between City and EDA (Community
Center).
b) Amended and Restated Lease-Purchase Agreement between the City and
EDA (Community Center).
c) Escrow Agreement (Series 2008A) between the EDA and US Bank
National Association, the Escrow Agent.
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EDA Agenda - 01/30/08
The revised documents have been reviewed by the EDA Assistant Treasurer and
Executive Director and the City Administrator and Attorney. The Financing
Documents are available at the Office of the EDA for review and will be available at the
EDA meeting of January 30, 2008. Mr. Hagen, Ehlers & Associates, does not plan to
attend the special meeting of the EDA and states the action taken by the EDA an
January 16 secured the true interest rate of 3.2003%.
B. Alternative Action:
1. A motion to adopt a resolution awarding the Sale of Public Project Revenue
Refunding Bonds, Series 2008A (City of Monticello, Minnesota Lease
Obligation).
2. A motion to deny a resolution awarding the Sale of Public Project Revenue
Refunding Bonds, Series 2008A (City of Monticello, Minnesota Lease
Obligation).
3. A motion to table any action.
C. Recommendation:
Staff recommends Alternative Na. 1 as the resolution is consistent with the EDA action
of January 16 authorizing acceptance of proposal for the sale of public project revenue
refunding bands, Series 2008A (City of Monticello, Minnesota Lease Obligation).
D. Supporting Data:
Copy of email from legal firm.
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Page 1 of 1
Ollie Koropchak
From: Pratt, Andrew J. [APratt@Kennedy-Graven.com]
Sent: Friday, January 25, 2008 10:06 AM
To: Ollie Koropchak
Subject: Monticello EDA Resolution
Ollie, unfortunately we have run into same obstacles in the drafting of the EDA resolution for the Jan. 30 meeting,
due to the drastic change in the structure of the bonds, and to be careful in drafting the new EDA bond resolution
means that we will probably not be able to get it to you in time far your packet distribution at noon. However, we
are still shooting for today to have all of the kinks worked out. We will try our best and hopefully this schedule can
still be acceptable. Thanks.
Andy
Andrew Pratt
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
Direct Phone: 612.337.9212
General Phone: 612.337.9300
Fax: 612-337-9310
Email: apratt@kennedy-graven.com
1 /25/2008